Income disclosure reading guide
LuLaRoe income disclosure: what to read before joining
If you read only this:
- Start with the company disclosure, but do not stop there.
- Check who is counted, who is excluded, and whether expenses are subtracted.
- Ask what comparable new participants kept after ordinary costs.
What to do next:
- Check who is included and excluded.
- Ask whether the numbers subtract expenses.
- Compare the disclosure with the compensation plan and refund rules.
What the company discloses
| Data year | 2024 |
|---|---|
| Median gross profit | About $1,046 |
| Average gross profit | About $11,915 |
| Reported as | Gross profit, before inventory and other costs |
- LuLaRoe reports gross profit nationwide; the 2024 statement reports a median of about $1,046 and an average of about $11,915.
- It reports that about 90 percent of retailers did not participate in the leadership compensation plan.
- It states the figures are gross profit, not net income, and are not a promise or guarantee.
What is not clear from the disclosure alone
- Net income after expenses, which the statement does not provide.
- What share of retailers earned zero or negative gross profit.
- How retailers who became inactive during the year are counted.
Common costs to check:
- Product, samples, shipping, and taxes.
- Starter kits, renewal fees, websites, apps, or back-office tools.
- Training, events, tickets, travel, meals, lodging, and childcare.
- Advertising, giveaways, displays, packaging, or payment fees.
- Licensing, exam prep, background checks, or required continuing education.
- Unsold inventory and unpaid time.
Gross income is not the same as money kept after these costs.
Why this matters
A median far below the average means a few retailers earn much more than most.
Gross profit before expenses such as inventory can be very different from money kept.
Not a verdict: This page is not a judgment about LuLaRoe or the person who contacted you. It is a guide to
written facts, costs, income disclosures, public records, and questions to ask before making a money decision.
Questions to ask before joining
- Does this disclosure show net income after expenses or gross profit?
- What share of retailers earned nothing or lost money?
- How much inventory must I buy, and what is the buyback policy?
Source notes
- Read the income disclosure together with inventory costs and the buyback policy.
- Compare the median, not the average, with the cost of participating.
Related pages
- LuLaRoe company page
- Someone pitched me LuLaRoe. What should I ask?
- Income disclosure library
- What MLMs pay, according to company disclosures
- Median vs. average in MLM income disclosures
- Who is counted in MLM income disclosures?
- Expenses not included in MLM income disclosures
- Gross Income Is Not Profit
- What should an MLM income disclosure show?
- Before You Pay
Sources
-
Company disclosure
Nationwide 2024 Income Disclosure Statement
-
Regulator guidance
Business Guidance Concerning Multi-Level Marketing
Correction request
To request a correction, email corrections@boringanddevastating.com with this page URL, the specific text at issue, and supporting public sources.