Is LuLulemon a Scam Pyramid Scheme? Exposed!

Are you looking for a Lululemon MLM review? Is Lululemon a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.

There is a good chance that you heard about Lululemon MLM through someone – a friend or family member.

Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through Lululemon MLM.

I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like Lululemon MLM.

To help you make a more informed decision, I have thoroughly researched the Lululemon MLM so I can tell you more about it.

As a disclaimer, I’m not affiliated with Lululemon MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.

At the end of this review, I’ll also tell you the best alternative to Lululemon MLM that has enabled me to make a full-time passive income online.

What is Lululemon MLM?

Lululemon Athletica is a global retailer of high-end clothing for both men and women. Lululemon began by producing yoga pants, leggings, sports bras, and other women’s clothing. The company is headquartered in British Columbia. Since then, they’ve expanded to offer a diverse range of men’s clothing, ranging from yoga to running to streetwear.

They sell a wide range of yoga clothing, including the well-known Align leggings, sports bras, and tank tops. Lululemon leggings are well-known for being expensive and popular.

Lululemon promotes community involvement, social impact, environmental stewardship, and personal empowerment. Their mission is to “transform the world from mediocrity to greatness.”

Lululemon Athletica, on the other hand, is a traditional clothing company that sells both online and in-store. They are not a pyramid scheme or a multi-level marketing organization.

However, some people have compared Lululemon fans to members of a cult. Outsiders may regard both LuLaRoe and Lululemon as “cults,” which may be one of the reasons why they are often confused.

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Who Founded LuLulemon?

Lululemon was founded in 1998 by Chip Wilson. Its high-quality clothes, signature performance fabrics, and high-end in-store shopping experiences have rocked the retail world since then.

For decades, their sleek style and creative branding have made them popular, but many people have wondered, “Why on earth would anyone pay $100 for a pair of leggings?” Most of their customers agree that their high prices are justified by their products’ high quality and attention to detail.

What Products Does Lululemon Offer?

People can wear the company’s pants, tops, shorts, and jackets while exercising or doing yoga. The business sells more than just clothing. Bags, socks, and yoga mats are also available.

Despite the fact that the majority of the company’s products are designed for busy women who want to live a healthy lifestyle, the company has reached out to men and young people in order to expand its customer base. 

In fact, at the end of 2015, the company opened its first men’s store in New York. However, it closed its only two men’s stores in 2019. They visited New York and Toronto. Despite the fact that the men’s business is expanding, Lululemon wants to position itself as a brand for both men and women.

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What is MLM?

Before we get into Lululemon MLM, I’d like to explain what MLM is and how it differs from traditional business models.

Multilevel marketing companies are also known as direct sales companies or network marketing companies.

An MLM company does not pay you a salary.

You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.

There are several levels to this (hence multi-level).

Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).

You can earn $1100 by recruiting 10 people.

Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.

People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.

The ultimate goal of someone who works for a company like Lululemon MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.

How Does Lululemon MLM Work?

Lululemon sells its products through a network of stores that it owns and operates, as well as direct sales to customers online. The company had 521 stores worldwide as of January 31, 2021, with 315 of them in the United States. Following that, Canada, China, Australia, and the United Kingdom had the greatest number of stores.

Lululemon believes that its retail locations enable the company to connect with customers and gather feedback on its products. They also help to strengthen the company’s brand, which is important to them. Customers can purchase products from or from websites specific to their country or region. They can also use mobile apps, including those on store devices.

To improve the company’s brand image, it sells its products wholesale to health clubs, fitness centers, and yoga studios, as well as through e-commerce and digital sales. Other methods of selling include warehouses, showrooms, and temporary locations.

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Is Lululemon A Pyramid Scheme?

A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.

A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.

Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.

The directors of the organization receive a portion of these payments (those at the top of the pyramid).

The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.

Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.

Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.

The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.

Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.

People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.

Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.

Is Lululemon, then, a pyramid scheme?

No. Lululemon does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.

They don’t have to make money solely through recruitment.

Watch the short video below to learn more:

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10 Reasons Why I Don’t Recommend Lululemon MLM

1. The Good Reviews are Written by Lululemon MLM’s Affiliates

You probably have found some other reviews of Lululemon MLM and all of them are saying good words.

But all of them are actually paid to write, meaning they will receive a commission if you join Lululemon MLM via their links. Therefore, their words are often biased and not trustworthy.

Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.

By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!

Therefore, I recommend reading the reviews of those written by the non-affiliates of Lululemon MLM.

2. Very Few People Can Make Money With Lululemon

Success is difficult to achieve with an MLM company like Lululemon.

You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.

The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.

They will not be paid if they do not meet the quota.

As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.

3. Losses From Lululemon MLM Are Reframed As Investments

Lululemon MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom. 

But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.

4. Lululemon MLM is a Cult

Why do people continue to work for Lululemon if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.

Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.

MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.

Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.

Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.

MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.

5. You May Need to Purchase Lululemon Products Yourself

If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.

I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like Lululemon. That’s why in the long term, you are going to lose a lot of money, not to mention making money.

6. Lululemon Products are Overpriced

As with other MLMs, Lululemon offers overpriced products. There are many other brands that offer similar products but at lower prices.

Therefore, you may find it difficult to sell Lululemon products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.

7. Lululemon’s MLM Business Model Has a Bad Reputation

Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.

MLM like Lululemon is fundamentally flawed. The distribution of commissions is skewed toward the top.

The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.

As a result, many people do not consider Lululemon to be a legitimate business opportunity.

8. Exaggerated Claims Of Income

Lululemon, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting Lululemon.

Lululemon’s low retention rate can also be discouraging, as less than 41% of its distributors are active.

According to Lululemon’s payouts to distributors, over 99 percent of Lululemon distributors never make a profit.

9. Lululemon Is Like A Pyramid Scheme In Disguise

If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.

Every system that requires you to recruit people in order to make money eventually looks like this.

Lululemon is not a pyramid scheme in the traditional sense because you can earn money by selling their products.

However, in order to make a living, you will need to hire others in reality.

10. Recruiting is Required to Succeed

I don’t recommend MLMs to people for this reason. MLMs like Lululemon put a lot of effort into recruiting. Eight out of ten ways to earn money with Lululemon require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.

My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this Lululemon review.

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Is Lululemon MLM a Scam?

I cannot say Lululemon MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary. 

Can you make money selling Lululemon products? We already know that a majority of Lululemon reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from Lululemon is by recruiting aggressively.

Also, Lululemon blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider Lululemon MLM a scam.

My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.

I will tell more about my #1 recommended platform at the end of this review.

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Final Verdict: Lululemon MLM Review

Here comes the conclusion of my Lululemon MLM review. Overall, I don’t recommend joining Lululemon MLM to make money.

You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your Lululemon commission.

The worst part is that you practically have to ask your family and friends to join your Lululemon business opportunity. It’s not fun.

Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.

The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.

People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave. 

Why not consider starting your own online business if you want to earn money and have a flexible schedule? 

Thus, you can choose what you want to promote rather than having someone tell you what you must promote.

Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.

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The Best Alternative of Lululemon MLM To Make Passive Income Online

If you’re beginning your online business journey, you deserve a programme much better than Lululemon MLM.

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A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while applying what is taught inside Wealthy Affiliate.

Lululemon MLM Review

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Where to Join Wealthy Affiliate?

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