With claims of being able to make thousands of dollars a month, LuLaRoe is the latest network marketing based at-home business craze. Consultants make money by selling LuLaRoe clothing through in-home parties and online and/or social media marketing. LuLaRoe also has a multi-level-marketing (MLM) component to it, as consultants can increase their income from their LuLaRoe operations by getting others to join the business as well. Are the claims of making great money true? What does it take to be a successful LuLaRoe consultant?
Startup and Operations
Before we can explore what it takes to be a successful LuLaRoe consultant, first we need to understand the general operational components of the business.
- Startup Costs: New consultants are required to buy a start up kit. There are different levels of kits which include approximately 300-400 piece of clothing. Consultants do not have any control over what articles of clothing they actually get, and the kits cost between $4000 and $6000. Kits also include other items needed to run the business such as thank you cards, promotional material, and hangers. Many consultants will spend additional funds on other useful items such as racks on which to hang the clothes.
- Product Pricing : LuLaRoe has a suggested price range for each article of clothing. Consultants can price each piece within the range based upon competition in the area, or the economic level of the target clients. In general, prices of LuLaRoe clothing average $20-$60.
- Profit : The profit margin will vary on where an item is priced in the suggested range given, but generally speaking profits are 35-60% of sales.
- Additional Investment : Clients want to see refreshed inventory, and consultants want to have plenty of inventory on hand. This means that consultants need to be constantly buying new items as they sell current ones.
- Minimum Sales Quota: Consultants need to sell a minimum number of 33 items per month to remain active members.
- High Startup Cost : The vast majority of the people who start an at-home business are not looking to make it their primary source of income. It’s something they do to supplement their income with the advantage of being able to put in the effort in between the cracks of every day life. Having to drop $4K-6K is a lot for an initial investment, money that many simply do not have laying around.
- Constant Investment: To keep your inventory fresh, consultants need to be buying new items as they sell the old ones. This will lengthen the time it takes to recoup the upfront investment and realize a true profit from the business.
- Beware of Income Numbers : Companies like to promote those that have done extremely well, and LuLaRoe is no different. However it’s important to understand that the people making money hand over fist are the exception, likely have a large team below them generating a significant portion of their income from the MLM aspect of the business. Most people will only be consultants, having all of their income generated from the direct sales of the product.
- Some Items Won’t Sell : Whether it’s from your startup kit, or items purchased later as part of your inventory refresh, there will be some items that just won’t sell. The only way you’ll ever get rid of these items is if you decide to resign, at which time LuLaRoe will buy back your inventory at 90% of it’s cost.
Making A Decision
If you’re contemplating becoming a LuLaRoe consultant, it’s important to do the following before making a decision:
- Talk To Others :The best way to find out what it’s really like to be a LuLaRoe consultant is to ask those have lived it. Talk to people who have had good, bad, and in-between experiences. Next, search the internet for people who may have written about their experience.
- Buy Products :The most effective salespeople sell products they believe in. Find a consultant and buy some products. Wear them and form your own opinion about the clothes. If you don’t absolutely love the product, you may want to think again about becoming a consultant.
- Do NOT Go Into Debt :Have cash on hand to buy your start-up kit. If you go into debt, you’ll be paying interest on the funds borrowed. This will prolong the amount of time it takes to turn a real profit, or it may increase your monetary loss if it doesn’t work out.
For the most part, LuLaRoe is very much like other network based, at-home businesses. Consultants sell products by self-promotion through in-home parties and self-marketing. The one major difference is the high startup cost. Network based at-home businesses aren’t for everyone, but it is possible to be successful and make money through them. Before getting involved, potential consultants need to know exactly what they’re getting into.
How about you, Clever Friends? Are you a LuLaRoe consultant, or do you know anyone who is?
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