LuLaRoe Accused of Being a Pyramid Scheme

One of the best ways to increase your income in life is to run your own business. There are many females who want to become successful business owners. However, few of them have the capital to start a business in an area they are passionate about. One of the most common ways to own a business is to work with a company like LuLaRoe. This is a company that sells products to consultants who sign up with the company. At first, it looked like LuLaRoe was one of the best companies in the nation to work with.

However, there are reports of major issues within the company. Some former consultants are actually suing the company and accusing it of being a pyramid scheme.

Declining Quality

LuLaRoe is known for the leggings that the company sells. Although the company sells other types of clothing, the leggings are unique and comfortable. This is the primary reason that the company grew so quickly. One of the biggest issues that consultants have with LuLaRoe is that the patterns have declined in quality over the years. Not only are the styles unattractive, but the leggings are tearing and becoming thinner.

For consultants who purchased thousands of dollars in inventory, this is a terrible situation to be in. As demand for LuLaRoe products continues to decrease, consultants are now stuck with inventory that will not sell.

To make matters worse, many consultants are having major sales on their products. This is diluting the market and hurting consultants who are trying to sell their products at the recommended retail price.

Cost of Business

Another complaint against LuLaRoe is the total cost of doing business with the company. For most companies like LuLaRoe, the total cost to get started is less than $1,000. However, LuLaRoe made the cost to start over $5,000 for new consultants. In addition, the company encouraged people to take out a loan to pay for the initial costs. This is a major issue that is causing financial harm to families across the country.

Some people have gone deeply into debt to purchase new inventory. LuLaRoe says that it is up to consultants to run a business the right way. In addition, LuLaRoe recently said that consultants are to blame if they are not selling enough inventory. With the latest lawsuit against LuLaRoe, it will be interesting to see if anything changes with this company.

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