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Inside LuLaRoe and the Rise of Alex & Matty Laigle: Success, Scandals & Lessons

An analysis of the business structure, success stories, and inherent risks associated with the company’s independent fashion retail network.

LuLaRoe is a clothing company founded by DeAnne Stidham, known for its brightly patterned leggings, dresses, skirts, and other comfortable apparel. It has built its business not via traditional stores or its own website, but via a network of independent resellers called “consultants” or “independent fashion retailers.” Many of these resellers are millennial moms.


The Multi-Level Marketing (MLM) Model

The company utilizes a standard multi-level marketing (MLM) model. Key elements of this structure include:

  • Wholesale and Resale: Consultants buy inventory wholesale, then resell directly to consumers, frequently through home parties or online channels, especially social media.
  • Team Building and Downlines: Consultants are incentivized to build teams by recruiting new consultants. This qualifies them for leadership bonuses and ranks (sponsor, trainer, coach, mentor). Earnings are therefore a mix of direct sales profit and residual/bonus income from the downline’s sales.
  • Initial Investment: There is typically a significant entry cost, as consultants must purchase a substantial amount of inventory to get started. Initial investment requirements have been reported to be around US$5,000.
  • Sales Quotas: Consultants must sell a minimum number of items (and/or meet team sales thresholds) to qualify for leadership bonuses and other payments.
  • Buyback Policy: LuLaRoe historically offered a policy allowing unsold inventory to be returned under certain conditions, intended to reduce risk. However, this policy has become a source of controversy and legal action due to subsequent changes.

This structure—buying inventory, selling to customers, and recruiting/leading others for bonuses—attracts many due to the promise of flexible, work-from-home income, particularly for mothers seeking supplemental earnings.

Rewards, Income, and How Consultants Are Paid

Markup & Profit Margins

Consultants purchase inventory at wholesale prices and apply a markup when reselling, resulting in profit margins often ranging from 45% to 60% of the final sale price.

Sales Volume

Top performers report exceptionally high sales figures. For example, Alexandra Laigle reported selling 800–1,000 pieces per month, equating to roughly US$80,000 worth of clothing sold monthly out of her home.

Average/Median vs. Top Earners

A wide income gap exists between top earners and the average consultant:

  • The average monthly sales per consultant were reported to be around US$3,387 in one dataset.
  • Over 80% of consultants had less than US$5,000 in sales in a given month, with many selling far less.
  • Only a small percentage qualify for substantial leadership bonuses. For instance, in 2015, approximately 17% qualified as sponsors, with an average annual bonus of about US$4,751 that year. Coach and higher ranks see significantly larger incomes.

Alex & Matty Laigle: The Brand’s Best Sellers!

Alexandra “Alex” Laigle and her husband Matthew (“Matty”) are frequently cited as a major LuLaRoe success story, illustrating the potential high end of the MLM earnings spectrum.

Success Highlights

  • Background: Alex previously held a traditional job with the U.S. Department of Defense, and Matthew was a financial analyst before they entered LuLaRoe around September 2015.
  • Income Milestones: Alex’s high sales volume (800-1000 pieces/month) and leadership success led to substantial earnings, including a reported US$21,000 bonus check in a single month from her team’s sales.
  • Financial Impact: Their success allowed Matthew to quit his job and work on the business full-time. Alex reported paying off student loans, setting up college savings, and feeling a sense of emotional fulfillment from helping other women.

Marketing Techniques

The Laigles employed aggressive and effective tactics early on:

  • Hosting numerous in-home parties (initially up to six per week).
  • Extensive use of social media, including Facebook groups, VIP albums, and frequent live video sales (“Laigle TV”) to build community.
  • Leveraging the scarcity of limited-edition prints to drive urgency, a practice known as “unicorn hunting.”

“So many women are self conscious about their figures after having babies … They try on these clothes … their faces light up … You can see they instantly feel confident about themselves. … It sounds so corny, but it’s true – Alex Laigle”

Criticisms, Risks, and Realities

Despite the impressive success stories, the MLM model carries significant risks and has faced substantial criticism:

  • Low Profitability for the Majority: Most consultants earn relatively low incomes, with over 80% having low sales volumes, highlighting the difference between median and top earnings.
  • Hidden Costs: Initial inventory purchases are substantial, and other costs—hosting parties, shipping, promotions, travel—can significantly diminish actual profits.
  • Quality Complaints: The company has faced numerous complaints regarding product quality, with customers reporting fabric defects and poor durability (e.g., leggings “rip like wet toilet paper”).
  • Policy Changes and Legal Issues: Changes to the inventory buyback policy (from 100% to less, with added restrictions) led to lawsuits from consultants who felt the initial promises were misleading.
  • Market Saturation: Rapid growth in the number of consultants created market saturation, making it increasingly difficult for new or smaller consultants to compete and maintain sales volume.

What Does This Mean for Top Sellers Like Alex & Matty Laigle?

Given the upheavals at LuLaRoe, how might their position and public narrative have shifted since the earlier peak years?

Transition & New Ventures

  • The Laigles appear to have evolved beyond solely LuLaRoe. Alexandra’s Instagram handle is now “Laigle Land”; she describes herself as “CEO of Freckled Poppy, Mom of 4.” Instagram

  • Freckled Poppy is (or was) a boutique or retail brand connected to them, and the Laigles also participate in live-selling platforms (e.g. CommentSold). Instagram+1

  • In public posts, Alex and Matty now present themselves as business influencers/speakers, sharing their journey and leveraging their experience. Facebook+1

Shifting partly from direct MLM income to broader entrepreneurial influence is common among top MLM earners once saturation or legal headwinds grow.

Reputation, Criticism, and Public Perception

  • On forums such as Reddit, there are user comments critical of the Laigles or their affiliated brands (Freckled Poppy). Some commenters describe them as overly focused on image, luxury goods, and being somewhat detached from the on-ground product/warehouse operations. Reddit

  • Some claims allege erratic operations, turnover in warehouse or staff, and heavy reliance on social media branding rather than consistent product or logistical excellence. Reddit

  • In 2018, a site (Lularoefail.com) published that the Laigles were top buyers of LuLaRoe inventory and had received HOA (Home Owner’s Association) complaints for running a large business from a residential home. lularoefail.com

These anecdotal critiques don’t necessarily invalidate their prior success, but they suggest that their operations and public image have faced scrutiny.

Earnings Uncertainty vs. Public Claims

  • While earlier reporting (pre-2017) credited Alex with selling ~800–1,000 pieces/month and receiving bonus checks of ~$21,000, there is less transparent, verifiable data of how much she (or they) currently earn from LuLaRoe or affiliate sales now. The public narrative tends to rely on self-reported claims or influencer branding rather than audited statements.

  • The legal stress on LuLaRoe’s finances (especially the $164 million verdict) raises the question: can the company continue to support large leadership bonus payouts, maintain inventory, and fulfill consultant support without strain?

If bonus pools or sales incentives shrink, top sellers may see reduced upside or have to shift toward newer business models, consultation, coaching, or new product lines.


Overall Assessment: Then vs Now, and What to Watch

Strengths & Past Success

  • LuLaRoe’s model in its boom years tapped into strong consumer engagement (scarcity, novelty, social selling) and empowered many part-time sellers (especially mothers) looking for flexible income.

  • Some top performers like Alex & Matty demonstrate the upper bound potential: scaling sales volume, recruiting, team-building, and leveraging online/social platforms to amplify reach.

  • Their stories served as powerful recruitment magnets, promoting the dream of financial transformation through entrepreneurship.

Major Risks Materialized

  • Legal liabilities: The $164 million judgment, state AG settlements, and class action pressures are looming burdens that could force structural changes, cutbacks, or even bankruptcy reorganization.

  • Reputational damage: Complaints about product quality, changing refund policies, and overly aggressive recruitment have eroded trust.

  • Model sustainability: As market saturation grows, the ability for new consultants to find fresh, non-redundant customers shrinks. Relying on recruitment becomes riskier legally (as pyramid claims intensify).

  • Financial pressure: If supply chains, inventory funding, or bonus cash reserves are strained, they might tighten margins or reduce returns to sellers.

Implications for Entrepreneurs / Aspiring Consultants

  • The “dream story” of MLM success is becoming harder to sustain in the face of legal scrutiny and structural limits.

  • Top sellers will likely need to diversify: beyond just product resale, into consulting, training, branding, alternative product lines, or e-commerce.

  • Transparency, compliance, and risk mitigation will be increasingly important. Consultants should demand clear income disclosures, audit-proofable records, and backup exit strategies.


Conclusion and Key Questions

LuLaRoe serves as a vivid case study demonstrating both the potential high rewards of a successful MLM venture (as seen with the Laigles) and the severe financial risks and challenges for the majority of participants. Success is heavily tied to high volume, effective marketing, and team leadership, which are not guaranteed for newcomers.

Questions to Consider Before Joining an MLM

  • Upfront Costs & Risk: What are the mandatory initial inventory purchases, and what is the policy regarding returns of unsold product?
  • Market Saturation: How saturated is the market in your local area or network? Can you realistically attract new customers outside your immediate social circle?
  • Net Profit Reality: What are the *real* profits after accounting for all expenses, including shipping, promotions, travel, and personal overhead?
  • Product Stability: How stable is the company’s product quality and customer satisfaction? Could negative reputation issues hurt your personal ability to sell?

Know in Detail @

Party Plan / Social Selling in MLM : The Hybrid Engine of Modern Commerce


🧠 FAQ Section

1. What is LuLaRoe?

LuLaRoe is a multi-level marketing (MLM) clothing company known for its colorful leggings, dresses, and other apparel sold by independent consultants. Founded in 2013 by DeAnne Stidham, the company allows sellers to earn money through direct sales and by building downline teams.

2. How does LuLaRoe’s MLM model work?

Consultants purchase LuLaRoe clothing at wholesale prices and resell them at retail for profit. They can also recruit others, earning bonuses based on team sales. Earnings depend on personal sales, recruitment, and maintaining inventory levels.

3. How do LuLaRoe consultants get rewarded?

Consultants earn through:

  • Retail profit margins (typically 45–60%)

  • Leadership bonuses from team sales

  • Incentive trips and rewards for meeting sales goals

Top performers can reach ranks like Sponsor, Trainer, Coach, and Mentor, unlocking higher bonuses.

4. Who are Alex and Matty Laigle?

Alexandra and Matthew (“Matty”) Laigle are a married couple and among LuLaRoe’s most successful consultants. Their story was featured in Business Insider for achieving remarkable sales — selling 800–1,000 clothing pieces a month and earning a $21,000 monthly bonus at their peak.

5. How much did Alex and Matty Laigle earn from LuLaRoe?

According to Business Insider, Alex Laigle reported monthly sales around $80,000 and bonus checks exceeding $20,000. Their success allowed them to leave corporate jobs and build their own retail brand, Freckled Poppy.

6. What happened to LuLaRoe after 2017?

LuLaRoe faced lawsuits and regulatory scrutiny over refund policies and pyramid scheme allegations. The company settled with Washington State in 2021 for $4.75 million and later lost a $164 million fraud case against a supplier in 2024.

7. What are Alex and Matty Laigle doing now?

The Laigles have shifted to independent entrepreneurship, running Freckled Poppy, an online boutique and live-selling brand, while leveraging their MLM experience to build community-driven retail success.

8. Is LuLaRoe still active?

Yes, LuLaRoe continues to operate, though at a reduced scale. The company has updated its income disclosure statements and refund policies following lawsuits and settlements.