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Episode 4: Dear LuLaRoe Distributors

You're seeing it all over Buzzfeed, Daily Mail, and other online news sources. LuLaRoe is not allowing distributors to return their inventory when they decide to go out of business. 

And just. like. that. My blood goes a little bit above the normal 98.6 degrees and it's ya know...boiling. I get it- they changed their return policy because they have terrible business ethics, but let's talk about the major thing here: the distributors.

As a small business owner and woman, I love nothing more than to see other women start businesses. I love seeing them get through a hard time, crush goals, exceed sales expectations or blog views, and rock it through the good and bad times. After all, that is what being an entrepreneur is all about. You have an idea, you put it into place, you work insane hours that no one else can imagine, and you make it happen. You don't have a system in place such a LuLaRoe, Avon, Rodan + Fields, and the likes to charge you X amount of dollars for a product to sell. 

Now do not get me wrong. Being a distributor for MLM's can be a great thing for families and the people who are distributors. It can pay for a dance class, decrease student loan debt, what have you. There is my disclaimer. Now let's continue. 

Here is where I believe you can't go and cry wolf. Yes, terrible they changed their policy. First, this can tell you that too many distributors are going out of business and they can no longer afford to take the hit. With that said, you can't call yourself a small business or an entrepreneur when you take someone else's product to sell for money- THEN when things don't go as planned (shocking) whether business or personal, you want to simply RETURN the products and wipe your hands clean of it all. NO.

You don't get to have your cake and eat it too. In NO OTHER BUSINESS can you decide to close up shop and get to return the leftover inventory for a wash. As much as there is reward and success in business, there are also risks and consequences to your actions (or lack thereof).

In no way, shape, or form am I sticking up for LuLaRoe or any MLM, but they are not 100% at fault. The fact that at one point they had a 100% return policy in the first place is amazing and unlike anything I have heard of in the least.  MLM's give you their terms of agreement, some janky forms to sign, a fee to get a kit or box of merchandise, and off you go. Soar for the stars, babe. 

I'm aware that I am biased as a small business owner creating my own idea and product. What I read is heavily entrepreneurial and what can help me to succeed. I read an article based on information from Jon M. Taylor, MBA, Ph.D, who is the top research expert on MLM companies. Take it for what it is worth.

  • In the first year of operation, a minimum of 50% of representatives drop-out.
  • After five years of operation, a minimum of 90% of representatives have left the company.
  • By year 10, only those at or near the top have not dropped out – making it safe to say at least 95% of representatives have dropped out. 
  • 44% of small businesses survive at least four years and 31% at least seven years, and 39% of businesses are profitable over the life of the small business.
  • Only 64% of small businesses fail in 10 years.  

Leave a comment and let me know what you think. Send hate mail or an Edible Arrangement depending on how this article made you feel. To each their own. The message I'm trying to get across is to be smart in your business practices. Don't throw the word "entrepreneur" around when there are people like me working around the clock to make their dreams come true as the CEO, CFO, CCO, COO, Bookkeeper, Inventory Analyst, Writer, Blogger, Laborer, etc.of their own small business. Who eat, breathe, and sleep their ideas and products while throwing the power of positivity in the universe to win. 

I may be spicy, but it's coming from a good place. 

XO-Nikki


1 comment

  • I have a woman who sold Lularoe. I thought she was doing well. Next thing I know she is selling her stuff 50% off GOOB sale (going out of business). Now I know why she’s doing what she doing.

    Melissa

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