Is LuLaRoe Going Out Of Business or Reinvent - LuLaRoe 2.0
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Is LuLaRoe Going Out Of Business or Reinvent – LuLaRoe 2.0

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Most of us, especially women, are crazy about shopping except a few others who would instead prefer to stay away from its addiction. These people are generally referred to as “Shopaholics”.

While I say all this, there is already one who is reading this. Are you one crazy shopaholic? Well, in that case, you probably order one piece of clothing from LoLaRoe, or maybe you are their seller? Anyway, this article will be quite useful for you to read.

Today, we are going to know better about LuLaRoe 2.0 – an renuwed apparel brand. Let us know whether these brands that showcase itself to the public as if they are World class designers are world class or a class apart? (Pun intended).

Naturally, as human beings since most of us are always busy either with household chores or with office work tend to buy things online because we hardly get time to go outside to a physical shop and buy.

But how often do we know that the hard earned money that we are shelling for these so-called brands is worth it or not. Especially if you want to invest in it as a business opportunity.

So this idea is then taken advantage of by these companies online, and create a psyche in human beings that even if you don’t intend to buy the product, you eventually end up buying it.

Are You Searching For Legitimate Way To Make Money?

Let’s First Start By Knowing
How And By Whom LuLaRoe
Began Its Journey?

LuLaRoe 2.0

LuLaRoe was founded in 2013 by DeAnne Brady (President & Founder) and Mark Stidham (CEO & Founder).

DeAnne names the brand behind her three granddaughters – Lucy, Lola & Monroe. According to them, their mission is to help other people and encourage them through this business for further growth in life. They proudly call themselves a community of social selling entrepreneurs.

They are an MLM company promoting the idea of relationship marketing.

But What Is MLM?

MLM is Multi-level marketing, a type of direct selling. Some people also refer to it as Network Marketing or Relationship Marketing.

Its work on referral marketing strategies where the revenue of the company is derived from a workforce that directly sells their products or services not through offices/boutiques or physical stores necessarily, but through a home or word of mouth at their convenience and hence they are a non-salaried workforce.

Their income, in turn, comes from a pyramid system of commissions according to the sales they make.

I won’t lie to you; I don`t like MLMs. I saw too many women that ruin their lives because of this. When you start with MLM, it`s like a cult. Those women only talk about this “amazing” opportunity and try to sell you products or story that you will “live the life of your dreams.”

Most of women will stay in MLM just for couple months and discover that they are losing money but not make anything.

How Can You Become A Part Of LuLaRoe’s Family?

If you still want to become a part of new LuLaRoe 2.0 family, its not hard. There are no such signup fees. You do have to fill up an application form and even after filling that you will have to wait to get approval from them as a ‘Fashion consultant’.

Most importantly because there are no signup fees as a person selling this brand’s product, you first need to buy inventory and that will cost much at one go itself, and the investment is around $5.000-$11.000

To top it this is just the starting price and to worsen; you can’t even choose the designs.

So imagine selling things that you would only not like to keep.
You need to start by ordering a minimum of 33 pieces a month; this number will go up every time your rank as fashion consultant increases.

So, in this manner, you will need more and more people to make them buy more and more stock.

How can you go about doing this?

  • First, know your audience or prospective buyers.
  • Target them with selling strategies.
  • Sell them through different mediums like social media marketing or word of mouth.
  • Convincing them to buy the product.

What’s New In LulaRoe 2.0?

LuLaRoe 2.0 Summer Collection

Coming to what LuLaRoe’s 2.0 product range offers? Practically, the same stuff as a LuLaRoe 1.0.

For Women & Kids:

  • Leggings
  • Dresses
  • Maxi skirts
  • Jackets
  • Bottoms
  • Layers
  • Tops

For Men:

  • Tops/T-shirts

Are All These Above Product Lines Worth It??

Well, some have good reviews to give for the brand while most of them have negative reviews filled with various complaints.

While I wrote this article, I find out the group in Reddit, and I was shocked with images I found there:


What About The Money?

You can make money with LuLaRoe on two ways:

  • Either with recruiting people & forming your own small business to sell these products, in turn, getting more bonuses with each sale Or,
  • Selling their products directly & earning commissions.

How About The LuLaRoe Compensation Plan?

So if you become a consultant at LuLaRoe, you would roughly get a commission of around 35% – 50% of the gross sales.

And if you recruit more people into this business, you get a bonus of 5% for the first row, and 3% for the people recruted by your firs row. But there are also many complaints that these consultants don’t get the payment on time.

According to the LuLaRoe company’s income disclosure statement that I found online (it`s from 2015), the average annual commission earned from downline distributors was $85!

Please, watch the video below, done by Vice, and you will be shocked how much money some of the LuLaRoe Consultants lost.

LuLaRoe Consultant Complaints


Since the company instantly became a hit for some shopaholics, they did not pay much attention to after-hours service of the product once sold.

So they have unsatisfactory complaint system organization where it may take hours or days for your complaint even to get answered once, though they claim they give you a refund if any of their products are faulty or damaged.

First big problems with LuLaroe started in 2017; when their clothing supplier Providence Industries claim that is owed about $33 million in unpaid bills, and that LuLaRoe’s business model is illogical.

A lot of consultants left the company because bonus policy that initially paid them based on the number of orders they placed, and not on how much inventory they sold.

So, you can find a lot of LuLaRoe sellers that started LuLaRoe clearance sale on Facebook pages like “Going Out for Business – SALE.”

Then, in January this year they get a new lawsuit; Washington Attorney General accuses LuLaRoe of running an illegal ‘pyramid scheme.’

“LuLaRoe tricked consumers into buying into its pyramid scheme with deceptive claims of high profits and refunds for unsold merchandise”

Washington Attorney General Bob Ferguson

Despite all lawsuits, DeAnne Brady in January this year said that the company is starting over, and her husband and LuLaRoe’s CEO, Mark Stidham called a company LuLaRoe 2.0.

Let’s Get Directly At The Pros And Cons
Of This Brand


  • Opportunity to try out something challenging.
  • Warranty of 6 months for any faulty or defective product.
  • Happiness policy, if you are not satisfied with their products, they provide you with a full refund, credit, or exchange within the first 30 days of purchasing the product. (well, I not quite sure about it..)


  • You don’t make as much money as they claim. Actually, you will probably be in 87% that didn`t earn anything
  • It is a lengthy business process, so if you want to make quick money, this is not for you.
  • Many of its product material is inferior quality, resulting in many complaints.
  • You cannot choose your designs, means you will also have to sell what customers may not like at all.
  • Commissions are never given on time;
  • Better Business Bureau rated LuLaRoe with D+ grade, and ALARM people to be careful of this company.

The question is whether it is even worth our time to engage in such business which is not only challenging, but you can lose your savings, and get into debt.

Hey-Mom- Turn Your Ideas Into reality

Is LuLaRoe Another Example Of A
Scam Company?

LulaRoe openly claims it is an MLM company, and you need to invest in it much to eventually gain profits of selling even half of the stock which again you need to keep buying continually.

We still need to wait for the court decision on ongoing lawsuit against LuLaRoe as a Pyramid scheme. You can read the lawsuit filed here.

All in all, avoid giving it a shot to such activity where every sale is unpredictable of the profits it may or may not bring. As calculations shows, you have more chance to win on the lottery than to earns money with MLM company!

So, if you are ambitious women, seeking for a side job or legitimate way to provide more for your family, but you still want to stay home and enjoy your time with kids, you can do the same thing as I do.

After I lose a lot of money and time on different MLMs, I tried to work online. I was pretty bad at it until I find one training program, that shows me step by step how to make money online.

If you are looking for a side job or doing your online business, without any mentor, coach or boss above you, I highly recommend you to read my story here and try this FREE training program to decide if is working online something that you will love.

Are you LuLaRoe ” Fashion Consultant”? What do you think about LuLaRoe 2.0? Is LuLaRoe Going Out Of Business? I would love to hear from you. Please post your comments below.

Hello, ladies! I hope you liked this post. I started my online business journey in 2003, worked for others or sign in at wrong programs. A three years ago I started with affiliate marketing, and now I am running my own online business, working from home. So, I can help you to start your own business.

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