Is This Direct Sales Company Swindling Its Reps?

But oh my gawd, the leggings!!

Lu La Roe is a direct sales sensation that has spread over the troves of plus sized beauties and millennial moms.   The limited and random distribution of product variety has proven Disney’s common place practice of “artificial scarcity” to span its success rates to companies of all types.

As the sensation grows I’m finding many of those I’m acquainted with falling in turn to sell this favorite fashion sensation after they can’t seem to kick their personal apparel addiction.  And why not when they see the women flocking to inventory reveals and battling to the bloody death over their favorite Irma (the LLR name given to a long baggy tee) on a Facebook Live Event.  Then there is the rush of the pop up sale, women swapping and exchanging ideas for these comfortable yet so cute dresses.   Racks of clothing line the halls and living rooms of what was once just a simple abode, and you are able to find yourself in a tangible existential sensation of divine softness.

The Draw

My first party I was taken aback though, once I found the pricing chart.  A simple shirt that I once sold in my own shop for twenty dollars could range anywhere from 35 to 40 whoppers here.   I look at these housewives lined in front of the hostess with a giant pile of clothing, recalling how just yesterday they were complaining about bills, or not being able to make ends meet.  But now viewing their loot, as a shop girl tends to do, I can calculate within moments the $160 dollars they are about to drop on clothes that are not a necessity.  Their smiles though, they do not hesitate to fork over the plastic with ease.  All while the hostess doesn’t find themselves having to speak more than two words, “thank you.”

So why wouldn’t you be the least bit curious as to how you could start to make your mark, supplement your income, and discover unfathomable riches?  I mean just google and read the success stories of the women who earn 5 figures a month while still managing to attend their children’s soccer games, school plays, and PTA meetings.  When you read how  reps are making $34,000 a month, it makes it a little easier to fork over the five to eight thousand dollar start up fees.

An Accidental Discovery

But then you are out of that cash for the two months the company says it will take before it can even send you your long since purchased inventory, but don’t be surprised if it still arrives a week or two beyond that.  From complaints all over the blogosphere and just from two different personal interviews I conducted when researching this company for an innocent update to my Direct Sales Help post from two years ago, reaching home office is a feat in itself.   Calls are not returned in a timely manner, if they are returned at all.   Complaints of customers go unanswered, leaving for some very awkward situations between client and consultant.  It’s not wonder that the Better Business Bureau has rated them a big fat F after they had received 164 complaints, 82 having gone unanswered.

The Income Breakdown

And then what about these thousands of dollars per month?  It seems that perhaps in a time teeming in consultants the competitions has forced some LLR consultants to offer more competitive prices.   According to Bottlesoup, even if the consultants ask the average going rate for their clothes, to actually see even just a 1% return in investment they will have to order at least 2 more rounds of inventory, meaning a quite, most likely $15,000 investment.

That’s if you sell every last garment, which you are not able to choose.   The selection your receiving is completely random when it comes to pattern and size.   So if you receive 5 XXS and only 1 more commonly worn Medium Sized Carly you may find yourself absolutely trapped, awaiting the miracle microscopic frame to come along, and just pray its in their color.

So then you think, why hasn’t someone said something or complained?  Why is it when I visit every LLR page I can find they are filled with positivity, drive and success?  Well because that’s policy.   Those who may be finding themselves struggling or floundering to connect the dots are hushed, because they are killing the vibe of success.   What instead should be seen as a bat signal of distress, and answered with words of assistance and training, is instead met with a toxic blend of rejection and silence.

Making Amends

Perhaps back at the beginning, back before when you had more freedom to select your initial inventory, and received a series of free products, then, perhaps you would have had more of a chance of jumping ahead right away, with far less of an investment to step in the door.   Since this new investment plan it seems many consultants are finding themselves stepping out before they have even sold through their first shipment, finding it too costly and choosing to cut their losses before they are in too deep.

Though there are still the success stories, those who, although not making 6 figures a year, are making enough to cover the smaller expenses in their household.   So is this a company you would feel comfortable sinking $5,000 into?

Things to Consider

  • Before Choosing your Direct Sales Company of Choice, do all your research.  Find the ugliest complaints you can.  The truth is somewhere in the middle. 😉
  • Be cautious of Direct Sells that force you to maintain your own inventory.  Not saying maintaining inventory is bad, but when it is mandatory it can become a bit too much of an investment on your pocketbook and space in your home.
  • Ask someone (and not only the person trying to promote you).  Join some Facebook groups, truly ask around.  Ask some veteran consultants, find out why they left.

 

Until next time Fanboy and Girls—>

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References:

2 Consultant Interviews

The Story of A Girl Who Quit

Bottlesoup Math

Better Business Bureau

 

 

 

 

14 thoughts on “Is This Direct Sales Company Swindling Its Reps?

  1. sugardolliesboutiquellc says:

    Interesting Post. I am a LuLaRoe Consultant. I love it. I am sorry to hear that the 2 consultants that you spoke to about this weren’t successful and had bad experiences. I love the culture of LuLaRoe. We empower women to love how they look and to feel comfortable in on trend and flattering clothing. I love to receive messages from our customers that tell us how wonderful and confident they now feel and how they receive compliments on the clothes. I have received lots of training from my upline and T.E.A.M. I am sorry to hear that some others feel like they didn’t receive adequate training. It truly is about building relationships with others and learning form each other. LuLaRoe grew so rapidly that honestly they couldn’t keep up a while back. They have now hired plenty of new workers. Just over a year ago LLR had 1500 consultants. Their popularity grew rapidly to now having 65,000 consultants. It is the fastest growing company in the USA. So, I think is it truly unfair that this post gives it a bad reputation because a few consultants that either didn’t understand the culture of LuLaRoe or didn’t seek the training from their uplines and or give training to their downlines. It truly is a wonderful company making a huge difference in the lives of thousands, possibly hundreds of thousands (if including customers) of people.

    Liked by 1 person

    • shopgirlanonymous says:

      First off, I want to thank you so much for your feedback, I appreciate it greatly! I do want you to understand that my research was not based on two individual consultants offering a negative opinion, but instead was INSPIRED by two consultants explaining them to me. From that interview I conducted research, lots of research. Such a negative score from the BBB is not just two individuals and is no light matter. As I explain at the end of my post, I do feel a big part LLR’s recent consultant struggle is that they are becoming lost in the rapid growth that the company was obviously not prepared to take in. Though saying they are the ‘fastest growing company in the USA,’ is quite a bold statement, I’d be interested to see your sources on that. As I look at Fortunes top 100 fastest growing companies of 2016, Top 15 of 24/7 Wall Street, and Top 10 of Inc.com and I can find LLR no where on any of those lists.

      I’m so glad you have had such a positive experience, and as discussed with my amazing LLR ambassador Chris several times, the issue with LLR is not to me the company outlay itself but instead how it is presented to women before diving in with a sizable investment. Statements of extreme claims of positivity with no real risk analyzation involved. From your perspective I can see how you may feel my review unfair, and I promise I approach LLR with as much neutrality as possible. But I want to educate women who may not be familiar with investments, inventories, or sales to consider the risks before diving in with thousands of dollars and blind faith. I want them to invest knowledgable of the possibilities, and fully empowered to conquer whatever route they choose to take.

      Liked by 1 person

  2. Chris says:

    Great read! My sister started LLR a few months ago and has confirmed several of the items you listed.

    I think that you hit on some topics that HomeOffice doesn’t want to be spoken about. Ha Ha!

    I would love to see what other concerns you are hearing about LLR and the entire system. I am trying to start a blog to address some of these issues and to help the LLR consultants from a financial/accounting perspective.

    Liked by 1 person

    • shopgirlanonymous says:

      Yes I visited your blog. Very kind service you are offering. Most of my friends have already left to move on to other direct sales companies. I hope LLR understands their standings with many consultants and are looking to address them and solve them in time.

      Like

      • Chris says:

        Thanks for visiting! 🙂 I just started this week and have never done anything like this before.

        I think that LLR expanded so quickly that these problems weren’t addressed because they simply couldn’t be. I hope that they are able to address them soon.

        Liked by 1 person

  3. soulsensecoaching says:

    These things never quite live up to the sales pitch you are given when they rope you in. There are always a few people who do succeed, but most people aren’t that lucky and end up losing their initial investment.

    Liked by 1 person

    • shopgirlanonymous says:

      It really comes down to your network and people in most cases, but from the research I’ve done on this company, even if you are a fantastic networker the system is at present still stacked against their investors.

      Like

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