Company-specific checklist
Someone pitched me LuLaRoe. What should I ask?
If someone invited you to become a LuLaRoe retailer, you can slow the decision down and ask for written information first.
If you only have five minutes:
- Do not pay during the pitch.
- Ask for written documents before another meeting or purchase.
- Compare any earnings claim with costs, refund rules, and cancellation deadlines.
If you are being pressured right now: You can pause the conversation without debating the opportunity. Ask for written documents, take time away from the pitch, and decide later.
- Do not pay during the first conversation.
- Ask for the documents listed below.
- Use a script if you need more time.
Documents to request before paying
Ask for these in writing:
- The current income disclosure or earnings statement.
- The compensation plan or business plan.
- A full first-year and recurring expense list.
- The refund, cancellation, subscription, and inventory return rules.
You can ask to read these away from the pitch before paying, ordering product, joining a subscription, attending a paid event, or contacting friends.
- The current income disclosure statement.
- A list of required inventory purchases and startup costs.
- The written buyback, refund, and return policy with deadlines.
- The compensation plan, including any leadership bonuses.
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.
Questions to ask in writing
- Does the disclosure show net income after expenses, or gross profit?
- What share of retailers earned nothing or lost money last year?
- How much inventory am I expected to buy before I have customers?
- Does meaningful income depend on recruiting and leadership bonuses?
What this does not prove
Being invited to join LuLaRoe does not prove anything about an individual retailer. It is a reason to compare the median gross profit with inventory costs and other expenses before paying.
Read next
Sources
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Company disclosure
Nationwide 2024 Income Disclosure Statement
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Regulatory public record
LuLaRoe to pay $4.75 million to resolve AG Ferguson’s lawsuit over pyramid scheme
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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.