New LulaRoe Policy Will Cost Some Consultants Thousands of Dollars
Chances are, you know someone who sells LulaRoe. The clothing company came onto the scene 2014, the newest in a long line of MLM companies that promise success and financial independence to people (mostly women) who sign up as consultants. For a while, it seemed like everyone was on the LulaRoe train. The company thrived on social media. Sellers were encouraged to have “parties” on Facebook, inviting everyone on their friend list for a chance to buy a random pair of printed leggings. But merchandise quality and sales techniques complaints have mounted in the last year, and many consultants are leaving the company. Now, an abrupt change to their original return policy has many exiting consultants seeing red.
In April, the return policy for exiting sellers said they could receive 100% of their money back for unused merchandise. On Wednesday, the company changed the policy without warning. Sellers will receive 90% of what they paid. Additionally, they are responsible for all return shipping costs.
According to LulaRoe, this isn’t a new policy. They say the policy is reverting back to what it was before April. Still, for consultants who had begun the process of “GOOB” (going out of business), this change means they stand to lose thousands of dollars.
One of the most appealing aspects of LulaRoe was their 100% buy-back guarantee. Consultants typically spend between $5-8k to buy into the company; they are required to buy ALL of their merchandise up front.
In some cases, the new policy means exiting consultants will lose, big time. Amanda Roberts, from Maine, started selling LulaRoe to make some extra money for her family. She did well initially, meeting sales goals of $6000 a month. Ultimately, she found that the clothing company wasn’t a good fit for her and her family. The policy changes means Amanda will be out around $2000. In addition to the change in buy-back and return costs, seasonal and special edition items are not refundable. So if a consultant has a box full of hideous Christmas leggings, they’re out of luck.