One of the most fervently criticized multi-level marketing companies out there, LuLaRoe once positioned itself as a brand that could help women from all walks of life achieve greater levels of freedom and a better work-life balance.
Founded in 2012, LuLaRoe started facing a public backlash in the mid-2010s after an increasing number of consultants spoke up about company misconduct. So, how much do LuLaRoe consultants make?
So, how much do LuLaRoe consultants make on average?
LuLaRoe was ordered to pay approximately $4.75 million in Feb. 2021, after the King County Superior Court ruled that the company violated the Washington Antipyramid Promotional Scheme Act and the Consumer Protection Act. Despite the sky-high costs, the company is still in operation. So, how much do LuLaRoe consultants make?
While there are numerous articles dealing with the topic, it appears that LuLaRoe has yet to release a year-by-year breakdown of how much its workforce made and what percentage of consultants managed to become sponsors.
According to Talented Ladies Club, consultants who were selling 40 items per week for two months were looking at an estimated $2,880. Those who sold 70 items per week were supposed to be on course to make $5,040.
Joining LuLaRoe comes at a hefty price.
A few years ago, joining the company would have set the average person back with $5,500. According to outlets like Insider, $5,500 used to be the minimum fee. The fees likely changed over the years, however. Currently, LuLaRoe requires consultants to fill out an online registration form and pay $499 for 65 pieces to start trading.
To keep the business afloat, some consultants were encouraged to sell their breast milk. And, let's not forget that LuLaRoe's DeAnne Stidham came under controversy for reportedly encouraging consultants to get gastric surgery in Mexico, per Insider.
"I was urged to stop paying my bills to invest in more inventory. I was urged to get rid of television," one person told Quartz in 2017. "I was urged to pawn my vehicle. I just had to get on anxiety meds over all of it because I've started having panic attacks."
Consultants receive bonuses by recruiting new company members. Consultants should be able to work their way up in the hierarchy if they are able to sell a quota of items and recruit a certain number of people.
The higher the rank the consultant is able to achieve, the more money they get. It's widely believed that only a small percentage of people were able to make the whole thing work — with those in the highest ranks likely exploiting the people struggling to turn a profit.
The company reportedly discourages sellers from leaving the company. Per Yahoo!, many felt that they would lose their social circle by going out of business. According to the outlet, sellers bumped into further difficulties when they tried to get rid of items by introducing discounts.
LuLaRich is available on Amazon Prime now.