Why LuLaRoe is NOT a Pyramid Scheme.
Updated: Feb 16
This may be a spicy topic for my very first ever blog post, but it's a topic that's near and dear to my heart, and it's an opinion that doesn't often get a voice. So here I am to give it one.
In case you don't know me, hi. My name is Mauren Sparrow and I have been a LuLaRoe retailer for more than three years now.
I first discovered #LuLaRoe as a customer in the fall of 2016, I think it was August.
I purchased a pair of leggings after hearing about the craze, and soon began to understand the hype. I was swiftly and hopelessly addicted to LuLaRoe. Still am to this day.
It was just a couple months later that, over Thanksgiving, I decided I would give selling LuLaRoe a try. Why not? I already loved the clothes and gushed about them to my friends and family, so why not get paid for it? I found an incredible and passionate sponsor that I felt I had a real connection with, and officially joined the LuLaRoe queue to become a retailer.
In January of 2017, I got the call and placed my initial onboarding order! Yay! A week later, four HUGE boxes of inventory showed up in front of my tiny apartment. They were plastered in random peoples' names, and I instantly knew I had an incredible adventure ahead of me.
It's been over three years since those boxes showed up on my doorstep, and LuLaRoe has undergone an overwhelming amount of changes in the short time I've been with this revolutionary company.
We fired our head designer, who was attempting (and is still attempting) to ruin LuLaRoe from within--despite the unbelievable amount of assistance this generous company provided for him.
We cut ties from the supplier who was helping him, and had to quickly construct an entire new supply chain from scratch to serve thousands of retailers in a matter of months.
And our compensation plan has changed a handful of times, in order to better serve the Independent Fashion Retailers who are the backbone of this social retail business. Now, more than ever, LuLaRoe rewards leaders who are willing to train, teach, inspire, and inform their teams as a part of their daily tasks.
pyr·a·mid scheme -- pyramid scheme
noun a form of investment (illegal in the US and elsewhere) in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones.
Because LuLaRoe monetarily rewards leaders for building teams and leading them, LuLaRoe is often misconstrued as a pyramid scheme. However, by definition, LuLaRoe is NOT a pyramid scheme.
In a pyramid scheme, leaders are compensated based solely on recruiting new team members. The only way to make income in a pyramid scheme is to sign up other people.
At LuLaRoe, leaders are compensated based on teams that actually sell product, and do not undercut the field. If leaders arbitrarily sign up people who are unwilling to do the work to run successful businesses--or consistently discount product so they are not profitable--they are not compensated merely for having a certain number of people on their team.
Which means that a lot of LuLaRoe retailers choose not to build a team, and lead successful and profitable businesses anyway by simply purchasing the LuLaRoe product for wholesale and selling it for retail. I am absolutely one of those retailers.
Like I mentioned earlier, I began selling LuLaRoe in January of 2017. At the time, I was working full-time sales at the Apple Store in Little Rock, Arkansas. Despite working a full-time retail job and selling LuLaRoe part-time, I sold enough to qualify for LuLaRoe's Cruise Incentive which is earned by selling $12,000 worth of LuLaRoe clothing for 6 out of 12 months of the calendar year. That additional income was generated by sales alone, and not by having a team or a downline.
In March of 2019, I quit my full-time job to pursue selling LuLaRoe full-time. All of my income presently comes from selling LuLaRoe. I sell enough LuLaRoe product per month in order to cover my living expenses, bills, and lifestyle.
I currently have two incredible ladies directly below me, and one amazing woman underneath them. I do receive a small bonus check every month that reflects their success as business owners, and the small part I play in helping them attain it.
My hope is that by running a profitable business, consistently sharing information, and being available to my team at any time, I can help people of any walk of life run and lead a successful LuLaRoe business, too.
One thing I can say with absolute certainty, is that the dream is free and the hustle is sold separately. LuLaRoe is an INCREDIBLE and LIFE-CHANGING opportunity, but only for those willing to work for it.
I will never sign up someone to sell LuLaRoe and let them think running a business is easy. But I will absolutely tell them it is worth it, and that I will be there for them whenever they need it.
LuLaRoe has changed my life for the better, and I am excited for what the future holds. #BecauseofLuLaRoe, I get to change lives every single day--for which I am eternally grateful.
If you've ever thought about selling LuLaRoe, I'm always welcoming new, inspiring, awesome, boss babes to my team. Email me anytime with questions at TheLuLaSparrow@gmail.com
Wishing you nothing but the best,
And until next time,
Mauren Sparrow Style is a body-positive, plus-size LuLaRoe boutique based in Little Rock, Arkansas. If you are local to Little Rock, Conway, Maumelle, Russellville, Fayetteville, Springdale, Bentonville, Rogers, Arkadelphia, Jonesboro, and more you are always welcome to schedule a time for in-person shopping. Email me anytime at firstname.lastname@example.org.