Are LuLaRoe Startup Costs Worth It?

Looking for a relatively inexpensive way to start a clothing business from scratch? Then consider becoming a LuLaRoe consultant.

If you’ve never heard of this company before, they’re a startup that started in 2003 and has quickly grown into one of the biggest network marketing companies out there. In fact, there are so many fans of this clothing line it may make sense to get in on this opportunity. Even better if you’re a fan of Instagram and Facebook, as consultants mainly sell through these social media platforms.

Stick around to read about how to get started, including LuLaRoe startup costs and average income.

How LuLaRoe Works

When you join this network marketing company, you are essentially a distributor and earn commissions. To join, you will need to have a sponsor or a referrer who is someone that helps train you to get sales. So the more experienced, approachable and helpful your sponsor is, the more you’ll probably gain traction in your business.

Once you connect with a sponsor, you then need to go through a training program and order products from a bunch of different categories, between 275-350 pieces. You can start selling anytime you receive them. Keep in mind that you’ll also need to sell a certain amount of pieces to remain active as a LuLaRoe consultant.

LuLaRoe Startup Costs

The average startup costs will set you back about $5,000. This includes inventory, training materials, and any extra costs like setting up a website or business cards to advertise your business.

Your startup kit includes print marketing materials, hangers, training booklets, catalogs, stock photos and fabric swatches.

Your inventory will include 70 pairs of leggings, 75 skirts, 58 dresses and 153 tops. You  also get 25 items of your choice if you purchase at least 300 items of clothing. All of this includes free shipping.

When Can I See a Profit?

This really depends on how many LuLaRoe parties you can host and the profit per item. But if you assume an average of 20 items sold at $25 profit per item, you’re looking at about 20 parties before you make a return on your investment.

However, the real growth comes from recruiting consultants to be on your team. When you start out, you’re considered a “fashion consultant” until you bring on people onto your team, at which point you’re considered a sponsor. You earn approximate 5% commission from your recruit’s efforts, so the more consultants you have, the more you’ll make without the need to host parties yourself.

This means you have the potential (if you work hard to recruit people) to make your LuLaRoe startup costs back and then some on hosting less than 20 parties.

Is It Worth it?

Do realize that just because you have training and support from your sponsor and the company itself, doesn’t mean you don’t have to work hard to make a profit. Keep in mind you do have minimums you have to sell and if you want your consultants to sell too, you’ll have to take the time to train them as well as encourage them.

But if you’re willing to work hard and learn from your mistakes, then selling LuLaRoe products may be just the thing for you.

Need more help starting this or another business? Check out these articles.

11 Must Read Books for Business Owners
How to Generate an Effective Business Plan
How to Raise Capital for Small Businesses Without Getting a Loan