LuLaRoe Consultant Cost

If you’re thinking about getting into the LuLaRoe business, then you will have to become a consultant in order to start selling its products, which, you may or may not know, will require a startup fee in order to do so and start making money with the company.

Once you become a consultant, you are then able to purchase at wholesale prices and sell to the public, raking in commissions that are said to be as high as 60 percent or more.

“LuLaRoe Logo Horizontal_Outlined” (Public Domain) by bridget o’schnaz

How much does it cost to become a LuLaRoe consultant and to start up?

The costs to purchase a LuLaRoe startup kit, from our research via multiple third-party websites, tends to be in the $5,000 to $8,500+ range, and then, aside from your inventory, you will need an additional budget of about $500 or so for startup costs such as your business cards, website and clothes hangers, to name a few (we talk about this below).  The total costs of the inventory will greatly depend on which package you choose, and as for the starter supplies, this will greatly depend on what you’re going to purchase for your business as each consultant will purchase various supplies.

For example, we were able to gather packages and included our findings inside of the table below:

How did we get these costs?  We contacted a local consultant who was able to share some of the kits she was quoted when she first started the company.  Remember, this will not include the costs of inventory startup costs.

On member on Reddit.com claimed they bought a starter kit, which included 381 items, for about $5,000 to $6,000.

The company, in an interview with Business Insider, noted the minimum initial investment is $5,500 in order to become a consultant and for most, a profit can be seen with less than $5,000 in monthly sales, but this has been disputed by outside parties, including consultants.

First Quarter Finance stated the costs of the onboarding packages, which can include about 280 to 500 pieces, can cost anywhere from $5,000 to $9,000, however.

Additional supplies to consider

Aside from the inventory costs mentioned prior, consultants are also encouraged to purchase additional supplies, including:

• Business cards
• Clothing racks to help store inventory inside of your home
• Hangers
• Packaging supplies
• HD camera if you decide to take advantage of Facebook Live

What’s included in the starter kit?

Starter kits greatly vary since these kits can be randomized (as noted above) and may not match up to the numbers noted as the representatives, according to Business Insider, often do not get to select the products they sell.  This is done so to make sure that every consultant has a different type of inventory, creating a competitive market, and according to some, consultants are able to pick out styles and sizes but not the patterns or colors.  Regardless, these starter kits will contain anywhere from 250 to 350 pieces, each ranging in styles and sizes with varying profit margins.

Depending on the items purchased, wholesale prices for the consultant can range from $8 to $31, whereas the retail prices, again, depending on the resale price, can range anywhere from $18 to $65.  The fee mentioned above will include the shipping costs from LuLaRoe.

How to become a LuLaRoe consultant

If you are interested in becoming a consultant, you will first have to find an existing consultant in order to receive an application, learn about the program and sign up.  This is often done via a pop-up shop to help you familiarize yourself with the product and what’s required of one if you decide to sign up.  Once you’re able to submit an application, then you are added to the company’s waitlist, which, depending on the time of the year, could take up to two months before you’re approved.  While most consultants wait to be approved, many start to assemble the materials they need such as display racks, business cards, shipping materials and a website, for example.  As mentioned, these startup costs, aside from the inventory, can greatly vary as each consultant will have his or her own marketing strategy.

When you’re approved as a consultant, you are then able to choose your starter kit, and while most vary, we already discussed what’s included in most kits.  Regardless, the contents of the kits often include leggings, tops, dresses and skirts, all of which come in a variety of sizes and patterns.  Each kit, on average, will include anywhere from 40 to 75 pieces of each clothing piece.  While consultants are able to choose their own inventory, the company does set a minimum advertising price, which means you will not be able to sell less than what the company restricts.

Compensation

The average consultant usually holds a LuLaRoe party, where one piece sold equals about $15, on average, in commission, with the average party host netting $300 in profits.  Consultants will need to hold at least 20 parties to make back their original investment or less depending on how much you sell, and similar to other MLM companies, there are several compensation levels, which simply means consultants can earn from other consultants promoted within the company, where you can receive bonus money on top of each sale consultants beneath you make.

As you recruit more than 10 people, then you can upgrade to a trainer, where you can receive a 3% bonus from each member on your team, except the consultants that you personally sponsor.  The next level after the trainer is a coach, which is a level that requires a minimum of three trainers on the team as well as three coaches and three additional people in a leadership role.  The last two, which make up less than one percent of the company, is the “coach” and “mentor” levels.

Like most MLM schemes, the money is made in how many recruits you have in your downline as this can lead to higher bonuses.  You can download the official compensation plan to see how the program works in detail and refer to the table below for basic information as to how it works.

Tips to know

According to Business Insider, more than 80 percent of LuLaRoe consultants generated less than $5,000 sales in the last month, including 10,834 reporting nothing at all.  The average representative, as per a CBS MoneyWatch study, sold about $3,387 in inventory.

You may be able to return your unwanted inventory if you decide to resign, but you may be assessed a 15% restocking fee if you’re able to do so.

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