I hate pushy direct sales people, don’t you? The ones on Instagram are the worst, because they follow you and direct message you. Or if they don’t direct message you they spam post non-stop on their feeds about it. To say that I’ve been intrigued by direct sales for a long time is an understatement. Literally – an understatement. I’ve tried a few, been buying products from MANY direct sales reps for a long time. But I’ve paused on actually entering into it and taking it seriously. I’ve definitely started a few different things, but nothing really stuck. Because when you enter into that type of arrangement (I won’t call it owning your own business, because it’s not the same thing – DS reps, don’t kill me, I’ll do a blog on why that’s a good thing later), you have to really give it your all in order to be really successful. Otherwise it’s a hobby. And we only make time for hobbies sometimes, which is why most direct sales reps fail.
Anyway. Tangent. When I finally landed on LulaRoe I waited 2 months until I was pretty sure I wanted to sell it. Then I submitted my paperwork. In the meantime – things exploded. More and more of my friends were learning about it and it was not unlike the real estate situation in Southwest Florida in 2007. There is no doubt that there is a boom for LulaRoe.
I’ve heard from a few friends that they’ve considered selling it, but all of them have balked at the $5,000 price tag. Let’s take a moment and address that (and I’m sorry, I swear we’ll get back to the point in a second). What is the entry amount for most direct sales products? Say maybe between $59 and the $5,000, but with most of them running a few hundred dollars, right? You invest a few hundred dollars because you can get the inventory at wholesale pricing and get an incredible deal on stuff you were gonna buy anyway.
You know what that is? That’s logic. That’s making a purchasing decision based on value. That’s all well and good, but a few hundred bucks – what is that, really? I’ve blown more than that at a bachelorette party with way less desirable results. So the angle that these people have on approach is, “You’re buying so much, you might as well get a discount.”
You know what’s NOT a good reason to start a business? Getting a discount. That’s a terrible reason to start a business. But LulaRoe has a $5,000 entry. That means that unless you’re really going to take it seriously, odds are most people will pass on that. And that’s perfectly fine, but those that enter are entering with a lot of skin in the game, which means they’re going to give it a really solid shot before they give up – unlike most direct salespeople who are only in it for what equates to a few nice dinners out.
So – back to the meat of this. If you’re been thinking of LulaRoe but haven’t pulled the trigger, here’s why you NEED to submit your paperwork LIKE NOW. RIGHT NOW.
- The queue is 10-12 weeks long.
Right now that number is closer to 12, but it’s starting to decreased based on some changes they’ve made to the on boarding process and available packages. Still, it’s not like, “Hey! We’ll ship out your package and off you go.” There’s a huge queue of people waiting for this, which means once you sign up, it’s that much longer that you’ll wait to onboard.
- You don’t pay until you get your on boarding call.
I think one of the biggest misconceptions with LulaRoe is that you have to sign up, submit your paperwork and pay right then. This is where the queue part comes in handy, because it gives you those 10-12 weeks to look into how you’ll shuffle around savings accounts, for a 0% interest credit card, sell a bunch of stuff you don’t need or borrow from a family member. It also allows you to get things going on how you’ll organize your inventory and photograph it (if you plan to sell online, which most will).
- You can recruit your friends first.
If you really wanna kill it in direct sales, you should probably consider sponsoring people and becoming a trainer. Trainers get bonuses from the company based on how much their reps buy from LulaRoe and bonus points if they achieve Trainer status (which is 10 people under them). As the market starts to saturate during this bubble, any friend that are considering signing up will likely do it under the first rep that they encounter, which is that much more reason to get in early so that if someone wants to sign up with a local rep, you’re close to (or already) established.
- The bubble’s gonna burst.
This one is a little more realist, but it wouldn’t be an Amber blog if we didn’t bring it up. This epic bubble that’s going on – that can’t be the reason you sign up. BUT if you do sign up now, you get to take advantage of that while it happens. Now, the reason that LulaRoe isn’t really going anywhere for awhile from a style and trend perspective is because they’re a very very young company. They have an incredible designer and really flattering styles. They’re always releasing new prints and all prints are limited. There is no competition because reps get completely different inventory and there are only a limited number of a certain print created before there are no more. That means that there is a MASSIVE secondhand market for this stuff. This is important, because your customers are going to LOAD UP (seriously, this stuff is absurdly addictive in the best way possible – well, maybe not for your budget, but still). When new prints come out that they love, they’re going to “destash” their clothes in a swap group and run over to your pop up to fund the next season’s prints. Innovation is keeping this company relevant for a long time – even after this bubble bursts. But if you jump on now, you get to take advantage of the crazy while it’s REALLY mainstream. After that it’s going to get a little harder to recruit and sell, but you signed up for this in the long haul – so you’ll kill it.
- You get first dibs on the good stuff.
Okay, I know this is kind of a shallow point, but it’s TRUE. We spend hours right now looking for our “unicorns” and getting an order in and having dibs on it every time is kind of amazing. Supposedly you become more selective as you flesh out your wardrobe, but who doesn’t want dibs? AND get this – once you become trainer, you can pull your own inventory a few times a year. That’s incredible for your existing customers because you know their style and if they like certain prints, you get dibs.
Direct sales is like any other business – it’s hard work. I would venture to say that LulaRoe is the most expensive of them that requires the MOST work on behalf of the rep. But it pays big. The craze is here and (particularly for those of us in the Florida area right now), it’s so far from saturated. I’ve always wanted to own a boutique and style people – and this is my opportunity to do that without the overhead of rent and liability insurance and electric… You’re going into people’s homes and changing their lives.
Just do it. Submit your paperwork. You’re not married to it and you can tell them you changed your mind when they call.
Nothing ventured, nothing gained. #justsaying