Is LuLaRoe a Pyramid Scheme? A Look Inside LulaRoe
Has somebody just share with you this money making opportunity called LulaRoe? Or did you hear about LulaRoe from somewhere else you are wondering if it a pyramid scheme or not?
You have come to the right place because you’ll find all the necessary information for you to make a decision and learn the best way to make money.
Being your own boss when trying to make a living can be the best thing ever to happen in one’s life. You can reschedule your activities to be able to spend quality time with family and friends.
In our LuLaRoe review, I will also show you how direct marketing plays a vital role in multilevel marketing (MLM).
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What is LuLaRoe?
LuLaRoe found at www.lularoe.com is a United State-based multilevel marketing company that sells women’s clothes.
LulaRoe was founded by Deane Brady and her husband Mark Stidham in 2012 and is currently headquartered in 1751 California Ave, Corona, California 9881.
They are similar to others multilevel marketing companies like Vantel Pearls, Pure Haven Essential, doTerra, Zilis, and others.
How Does LuLaRoe Work?
Making a Claim under the Limited Warranty
You will have to reach out to the independent retailer where you bought the product and provide them with the proof of purchase (original receipt or your bank statement indicating the transaction).
After the retailer ascertains that the product merits the conditions under warranty, a replacement will be shipped to the address provided by you. I find the process open and very transparent.
In the event the retailer does not have the exact product, a similar item or a courtesy card equal to the amount spent on the original item will be offered.
However, it is important to note that a match in color, graphics, or art with the original product is subject to the new product’s availability in the store.
Time Taken to Process a Warranty Claim
It will take you 10-15 days to get an exchange after an individual fashion retailer has received your claim.
For online claims, expect to receive a gift card from LuLaRoe within 30 working days which I find a short duration compared to the time taken to secure the same from other businesses out there.
However, LuLaRoe is not responsible for loss, damage, and delay on items being shipped back for replacement or refund.
The Good and Bad of LulaRoe
The Good:
- LuLaRoe’s Limited Guarantee covers faults related to materials and poor craft for up to six months from the date of purchase for original products which have not been altered or modified.
- The Limited Warranty is valid for products that were bought after 24th April 2017.
- The Limited Warranty applies to the product(s) purchased in the US by the first purchaser from fashion retailers authorized by LuLaRoe.
- LuLaRoe’s warranty is different from the firm’s Happiness Policy which is only applicable during 90 days after purchase.
- There is a difference between the Limited Warranty and LuLaRoe’s “Make Good Program,” effective on faulty products bought in the period, January 1, 2016, to April 24, 2017.
The Bad:
- LuLaRoe’s limited warranty exempts promotional and non-apparel items.
- The limited warranty exempts damage resulting from improper care, normal wear and tear, accident, abuse, and negligence.
- The limited warranty only lasts for six months.
- LuLaRoe’s warranty exempts goods purchased before 24th April 2017.
LuLaRoe’s Business Opportunity
Like most MlLM companies, you get a commission for sharing the opportunity. In other words, the more people you personally recruit, the more money you will make. This is how you take advantage of their compensation plan.
Here is a Quick Video on LuLaRoe’s Compensation Plan.
Who is it for?
Joining LuLaRoe Fashion as a retailer can help you be in control of how you spend your time and plan for the future.
Here, you can be in pursuit of what you like since you have all the time, means and flexibility to be in the company of the people who mean a lot to you, which is something I find so valuable.
You can use the opportunity to overcome setbacks or generate income to help you settle your bills and save for the future. You will be able to regain your confidence and be in charge of your success which can be so satisfying.
You will also inspire other people to follow their dreams. You and I know how good it feels to be the author of your own life, which is what becoming LuLaRoe retailer is all about.
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What About LulaRoe Support Service?
LuLaRoe is committed to keeping their customers happy and confident about the value they place on them which is why they will do everything possible to meet their expectations of products bought.
I like the fact that you can receive full refunds and exchanges on products bought 90 days and below if they fail to satisfy your needs by just providing proof of purchase to the store where they were bought.
You can trust me when I tell you that such transparency is a dearly guarded secret to other businesses out there.
What I like most about the processing of limited warranty claims is that they can be affected by other fashion retailers operating independently from the one where the product was purchased.
However, this option is second, and priority should be the store from where you bought the product. At times, retailers close shop or are not able to handle replacements.
All you have to do in such a situation is to get in touch with LuLaRoe’s Customer Services T.E.A.M. at, www.lularoe.com/limitedwarranty and you will be directed to a retailer near your location.
You can also file a claim online on the firm’s website by visiting www.lularoe.com/limitedwarranty and completing the form to have your request processed. Additionally, you can call 1 (888) 231-1412 to obtain further assistance.
What is the Start-up Cost?
The cost to purchase the LulaRoe Startup Kit is around $5000-6000. Your initial inventory will cost you about $4900 and you will need a budget of about $500 for miscellaneous startup cost like hangers, extra closet space, a business card, a website, etc.
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Under LuLaRoe’s Limited Warranty, the independent fashion retailer is charged with the responsibility to process the warranty request and ship the product back to the firm free of charge.
You can concur with me that not many businesses are willing to spend on after sale services like LuLaRoe. Independent fashion retailers use standard shipping methods when returning the product to be replaced.
Customers who request the independent fashion retailer to use a faster delivery mode have to foot the additional shipping charges.
I like the fact that customers are accorded a basic mode free of charge, and it is incumbent on a customer to choose if they are willing to incur additional costs when returning faulty products. LuLaRoe also provides free shipping labels on online claims for product returns.
Verdict: Is LulaRoe A Pyramid Scheme?
Contrary to many people’s beliefs, LuLaRoe pyramid scheme or LuLaRoe scam rumors are based on misinformation and failure to conceptualize the working of a noble and very simplified idea.
LuLaRoe a direct marketing business that provides retailers with an opportunity to work flexibly and earn a living.
It is not a pyramid scheme. The company uses multilevel marketing to market its products which why I find this an opportune way to make money either as a side hustle or a full-time business.