“Success as a retailer results only from successful sales efforts, which require hard work, dedication, diligence, leadership and perseverance,” says a LuLaRoe spokesperson. “Success will depend upon how effectively these qualities are exercised. As with any business, results will vary. In addition to the factors above, retailer success is influenced by the individual capacity, business experience, expertise, and motivation of the retailer.”
Some variation on this structure is common at most MLMs. Financial analysis on Pink Truth, a website that analyzes Mary Kay and other MLMs’ business practices, estimates that as a LuLaRoe seller advanced up the ranks, had 10 people below her, and garnered 3% of her recruits’ inventory-buy value, she could make a bonus of $1,500 a month—but only if her downline spent about a combined $35,000 on merchandise. That’s why struggling sellers used to be told to buy more inventory: Not only did their higher-ups get a cut of each bulk buy, but if their downline didn’t hit the minimum purchase mark, no one got a bonus. “The entire year that I did LuLaRoe, I was pushed to continue buying and buying more and more and more, no matter how the sales declined, and that buying more and more was the only solution to get more sales,” Sophie says.
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