LuLaRich Documentary on Amazon

[justme]

Anyone else watching this? I feel like it'd be YM fodder. 

It's on the rise and fall of the mlm scam LuLaRoe. 

Only like 5 minutes in - they've got the family there interviewing and such so I'm intrigued how this will go. Did they cooperate at this point or did they not realize the documentary was going to be not so kind to them.



First interesting thing:
Most of their kids 16 are adopted and two of the kids are married to each other. Not blood related and they specify not in the house at the same time, but weird as hell. 

[movingforward]

I have not watched it, but now I am intrigued. Will add it to my list.

[azucena]

Curious what caused the fall but not enough to watch it as too many of my friends hawking that crap made me loathe the company. Seemingly smart women who jump on a succession of mlms. Mostly dropped those friendships now which is nice.

[justme]

I'm actually on the third one and it's really interesting. Several early people explaining how they got into it.

As to the fall - it basically became a cult that grew too big too fast and no one in the family actually had business experience to handle it. Plus, ya know it was more pyramid scheme than mlm.

[MJ2.0]

Also I heard the quality was bad/inconsistent and customer service/the sellers were intentionally unhelpful with that.

[Works4me]

I watched it and really enjoyed it. It appears they grew too big too fast and then the founders failed to act honestly when issues repeatedly arose. Instead, they created a labyrinth of LLC's to shelter assets and blamed their sakes consultants. Also, they hired unqualified and inexperienced family everywhere. One of the women who was a former sales consultant declined to share the amount of her monthly bonus checks - gotta wonder how much that totaled.

[Deleted]

That's one I'd like to watch but I'm too cheap to subscribe to anything beyond Netflix. I don't have Amazon Prime because to me it's a trap to buy EVERYTHING from them and blanket the world with more delivery vans and empty boxes.

Anyway- I read awhile ago that LuLaRoe sales people were unhappy because they basically sent you a giant box of stuff to sell- no choice as to sizes and styles. I don't know how anyone can sell under those conditions.

If you want to see how well mult-level marketing works, go on e-Bay and look up Mary Kay sample kits, Silpada jewelry, Premier jewelry, etc. Great discounts available and I'm sure there are sad stories behind them.

[movingforward]

Is it completely out of touch that I have never heard of LuLaRoe? I plan to watch because now I am interested but honestly have never heard of this company...

[justme]

Sept 15, 2021 3:47:56 GMT -5 Works4me said:

I watched it and really enjoyed it. It appears they grew too big too fast and then the founders failed to act honestly when issues repeatedly arose. Instead, they created a labyrinth of LLC's to shelter assets and blamed their sakes consultants. Also, they hired unqualified and inexperienced family everywhere. One of the women who was a former sales consultant declined to share the amount of her monthly bonus checks - gotta wonder how much that totaled.

A lot considering she was one of the first few handful of retailers. That other couple shared their highest check ($42k one month) and I'm sure hers was higher than that. I dunno if she was the top one they mentioned but she was up there.

My ymam self is going here - once you started making 5 figures a month in the recruitment check why didn't you just order the min inventory to keep getting the check and then SAVE a lot of it. 

[justme]

Sept 15, 2021 10:39:22 GMT -5 movingforward said:

Is it completely out of touch that I have never heard of LuLaRoe? I plan to watch because now I am interested but honestly have never heard of this company...

Maybe? It was huge in the 2010s, but mostly within the millennial set. I didn't really hear of it until they were approach that 'bubble is about to burst' moment. But I also didn't have many SAHMs in my friend circle at that time - they were in my periphery and they were who lularoe was targeting. Especially those in churches which was also removed from me too. 

[crazycat]

I really want to watch it . I read an article about it . The whole family seems pretty shady . 

[justme]

Shady and entitled. Some of what they said in the interview was wild - and it was after they had settled a suit with the state of Washington. 

[Deleted]

Sept 15, 2021 12:05:59 GMT -5 justme said:

My ymam self is going here - once you started making 5 figures a month in the recruitment check why didn't you just order the min inventory to keep getting the check and then SAVE a lot of it. 

That's what I never got. This was true of May Kay, too- women were buying up merchandise and storing it just so they could meet "targets". I suppose that was because at various levels you got extra perks, including the famous pink Cadillac, and you wanted to keep them. There's probably also pressure to keep the people you recruited engaged so the residuals don't dry up. More on Mary Kay at pinktruth.com.

[dannylion]

Sept 15, 2021 13:22:30 GMT -5 @athena53 said:

Sept 15, 2021 12:05:59 GMT -5 justme said:

My ymam self is going here - once you started making 5 figures a month in the recruitment check why didn't you just order the min inventory to keep getting the check and then SAVE a lot of it. 

That's what I never got. This was true of May Kay, too- women were buying up merchandise and storing it just so they could meet "targets". I suppose that was because at various levels you got extra perks, including the famous pink Cadillac, and you wanted to keep them. There's probably also pressure to keep the people you recruited engaged so the residuals don't dry up. More on Mary Kay at pinktruth.com.

I wonder if there is a requirement to order a specific (larger) amount of product once one reaches the higher levels.  As for why the folks getting the big checks weren't saving a lot of it, it might be because the idea that the gravy train might stop just never occurred to them.  Also, it is likely that many of the people who get involved in mlm schemes didn't do it because they were good with money.  If they were, the people at the top of the pyramids probably wouldn't be so successful with recruiting.  They prey on people who don't feel they have many options for making money and who don't understand how pyramid schemes work.  

[TheOtherMe]

My next door neighbor tried selling Mary Kay back in the 1980's.  She had a room devoted to inventory.  

Her biggest problem is she was a hippie and trying to sell make up went against everything she stood for.  Needless to say she failed miserably and lost a lot of money she and her husband didn't have right then.  They were trying to stave off bankruptcy.

She didn't know it at the time, but her husband was forging her signature on the bank account in her name only to buy cocaine.  Once she found this out, they divorced and her father set her up for life through a trust that pays her monthly.  Daddy paid off the house and paid for a huge remodeling job.  

Husband did file bankruptcy as the debts were on credit cards in his name only.  

[NomoreDramaQ1015]

Sept 15, 2021 14:21:49 GMT -5 dannylion said:

Sept 15, 2021 13:22:30 GMT -5 @athena53 said:

That's what I never got. This was true of May Kay, too- women were buying up merchandise and storing it just so they could meet "targets". I suppose that was because at various levels you got extra perks, including the famous pink Cadillac, and you wanted to keep them. There's probably also pressure to keep the people you recruited engaged so the residuals don't dry up. More on Mary Kay at pinktruth.com.

I wonder if there is a requirement to order a specific (larger) amount of product once one reaches the higher levels.  As for why the folks getting the big checks weren't saving a lot of it, it might be because the idea that the gravy train might stop just never occurred to them.  Also, it is likely that many of the people who get involved in mlm schemes didn't do it because they were good with money.  If they were, the people at the top of the pyramids probably wouldn't be so successful with recruiting.  They prey on people who don't feel they have many options for making money and who don't understand how pyramid schemes work.  

I know at the lower level there was.  My BFF got sucked into it when we attended what we thought was a "free makeover' we won at a Bridal expo.  She was required to buy X amount of inventory every month.  Oh she only had to pay 75% of the cost so it was "so affordable"!   You were also bullied into wearing the product as free advertisement.   She never made back what she put into it.   I imagine it's even more pressure the higher up you go because you need to keep the people you sucked in going since a lot of what you are making is dependent on them because what you make is being sucked up by those above you.

Boy was that lady pissed when I pointed out she looked like Tammy Fae Baker and her associate wasn't wearing any make-up at all so that doesn't exactly convince me it's worth selling. 

[movingforward]

Sept 15, 2021 12:10:13 GMT -5 justme said:

Sept 15, 2021 10:39:22 GMT -5 movingforward said:

Is it completely out of touch that I have never heard of LuLaRoe? I plan to watch because now I am interested but honestly have never heard of this company...

Maybe? It was huge in the 2010s, but mostly within the millennial set. I didn't really hear of it until they were approach that 'bubble is about to burst' moment. But I also didn't have many SAHMs in my friend circle at that time - they were in my periphery and they were who lularoe was targeting. Especially those in churches which was also removed from me too. 

Well, maybe that is why...I don't really have any friends that are SAHMs and I don't go to church.

[Deleted]

Sept 15, 2021 14:46:59 GMT -5 movingforward said:

Well, maybe that is why...I don't really have any friends that are SAHMs and I don't go to church.

I was at a Toastmasters Speech Contest and spoke with a few people there that I'd seen at other Toastmasters events. Later one woman (in her 30s, employed, NOT a SAHM) e-mailed and said that another woman who was also there (early 50s, employed, single) was looking for women to volunteer to test makeup and you'd get a free makeover and I looked like the kind of "put-together lady" who would enjoy it. I immediately smelled MLM. I responded (truthfully) that I hadn't worn makeup in decades and had no plans to start so I wouldn't be very good for testing the products. The other MLM people I've run across have been employed but wanted to make extra income (maybe fantasizing about quitting the "real" job) and one who's in her 60s, retired and was hawking Juice Plus on Facebook. She's stopped but tried to recruit me earlier. She was looking for a few people for my team". I told her was retired. She said the residuals were great income. I told her I didn't need more income.

[justme]

Sept 15, 2021 15:11:59 GMT -5 @athena53 said:

Sept 15, 2021 14:46:59 GMT -5 movingforward said:

Well, maybe that is why...I don't really have any friends that are SAHMs and I don't go to church.

I was at a Toastmasters Speech Contest and spoke with a few people there that I'd seen at other Toastmasters events. Later one woman (in her 30s, employed, NOT a SAHM) e-mailed and said that another woman who was also there (early 50s, employed, single) was looking for women to volunteer to test makeup and you'd get a free makeover and I looked like the kind of "put-together lady" who would enjoy it. I immediately smelled MLM. I responded (truthfully) that I hadn't worn makeup in decades and had no plans to start so I wouldn't be very good for testing the products. The other MLM people I've run across have been employed but wanted to make extra income (maybe fantasizing about quitting the "real" job) and one who's in her 60s, retired and was hawking Juice Plus on Facebook. She's stopped but tried to recruit me earlier. She was looking for a few people for my team". I told her was retired. She said the residuals were great income. I told her I didn't need more income.

That brought me to flashbacks to when I was fresh out of college and starting my career. There was a meetup for women in business and their page said all the right stuff about mentorship and such. I went to it and wished I could have figured out a way to leave early. Over half of the women there were in the mlm business and most of the rest were etsy type things. I think there was only one other person there with a career that was quickly getting sucked into the 'be your own boss' schtick.

Lularoe wasn't ALL SAHMs but how they targeted the ones that weren't was the whole you can leave your job and become a SAHM. Full time pay for part time work. 

The rest I didn't know until I watched the series - but there was a hard lean into of moms should be SAHMs to be good Christian wives. Some also mentioned that once you got to a certain level they started pushing the women to "retire your husband" and leave the business to him. Crazy stuff. 

[movingforward]

Halfway though the first episode and now that I'm watching I do vaguely remember, it just wasn't really on my radar.

The clothes are not even remotely my style so that's probably why I didn't pay it much attention. Honestly, I find them downright fugly (hopefully, I don't offend anyone by saying that). Some of the leggings are "fun." I might would wear certain ones.

One of my college roommates got wrapped up in the Amway crap in the 90's

ETA: This bonus program is interesting. Now on episode 2

[engineerdoe]

Sept 15, 2021 12:05:59 GMT -5 justme said:

Sept 15, 2021 3:47:56 GMT -5 Works4me said:

I watched it and really enjoyed it. It appears they grew too big too fast and then the founders failed to act honestly when issues repeatedly arose. Instead, they created a labyrinth of LLC's to shelter assets and blamed their sakes consultants. Also, they hired unqualified and inexperienced family everywhere. One of the women who was a former sales consultant declined to share the amount of her monthly bonus checks - gotta wonder how much that totaled.

A lot considering she was one of the first few handful of retailers. That other couple shared their highest check ($42k one month) and I'm sure hers was higher than that. I dunno if she was the top one they mentioned but she was up there.

My ymam self is going here - once you started making 5 figures a month in the recruitment check why didn't you just order the min inventory to keep getting the check and then SAVE a lot of it. 

As I understand the money you got depended on the amount of merchandise purchased from the main company and as all pyramid schemes the ones at the top got a percentage from everyone one beneath them and bonuses if their "sales" figures were met that month or quarter.  So the higher ups would encourage the lower level people to "invest the money back into their businesses" which of course meant the higherups got larger and larger bonuses.  Then LuLaRoe changed the math on the bonuses because of the lawsuit from Washington State and now your bonus was based on the actual sales of the lower level people to their customers.  Couple that with hideous designs (also stolen designs) and the crazy growth of the company that ended up not being able to store the clothes correctly in a warehouse (they were sitting in carts outside in the sun and rain for months) so they were also getting clothes that were moldy and falling apart, those sales started to dry up.  LuLaRoe used to let their "sellers" return damaged clothes or anything that they could not sell for a full refund but that became untenable so they changed that policy overnight and came up with some crazy math again to arrive at the new refund amount.  All the while, new people are still signing up and guess what items they get in their onloading packages? Yup all the hideous design and damaged clothes everyone sent back.
There used to be a really crazy Facebook group that bashed LuLaRoe and they were all former sellers and included one of the very higher ups/early signer on.  And I haven't even touched on the whole "Let's get everyone to go to Mexico to get the lap band surgery" freakshow that also was happening. I haven't seen the documentary yet but if it covers what that FaceBook group did, it should be pretty entertaining.

[raeoflyte]

Why is the email guy featured so strongly at the end? He had a legitimate job with the company (not that I think the company was moral or ethical), but what is his part? Is he just trying to clear his conscience for taking a crappy job?

Also a bit terrifying for me is how familiar a lot of their language is, that I'm sure is faith based. I've been to several non mlm sales meetings that sound similar.

[justme]

Sept 15, 2021 19:05:41 GMT -5 engineerdoe said:

Sept 15, 2021 12:05:59 GMT -5 justme said:

A lot considering she was one of the first few handful of retailers. That other couple shared their highest check ($42k one month) and I'm sure hers was higher than that. I dunno if she was the top one they mentioned but she was up there.

My ymam self is going here - once you started making 5 figures a month in the recruitment check why didn't you just order the min inventory to keep getting the check and then SAVE a lot of it. 

As I understand the money you got depended on the amount of merchandise purchased from the main company and as all pyramid schemes the ones at the top got a percentage from everyone one beneath them and bonuses if their "sales" figures were met that month or quarter.  So the higher ups would encourage the lower level people to "invest the money back into their businesses" which of course meant the higherups got larger and larger bonuses.  Then LuLaRoe changed the math on the bonuses because of the lawsuit from Washington State and now your bonus was based on the actual sales of the lower level people to their customers.  Couple that with hideous designs (also stolen designs) and the crazy growth of the company that ended up not being able to store the clothes correctly in a warehouse (they were sitting in carts outside in the sun and rain for months) so they were also getting clothes that were moldy and falling apart, those sales started to dry up.  LuLaRoe used to let their "sellers" return damaged clothes or anything that they could not sell for a full refund but that became untenable so they changed that policy overnight and came up with some crazy math again to arrive at the new refund amount.  All the while, new people are still signing up and guess what items they get in their onloading packages? Yup all the hideous design and damaged clothes everyone sent back.
There used to be a really crazy Facebook group that bashed LuLaRoe and they were all former sellers and included one of the very higher ups/early signer on.  And I haven't even touched on the whole "Let's get everyone to go to Mexico to get the lap band surgery" freakshow that also was happening. I haven't seen the documentary yet but if it covers what that FaceBook group did, it should be pretty entertaining.

I don't know if it's the one you're talking about - but one of the ladies in the documentary created a Facebook group when she left. A lot of what you touched on was in the documentary and explored.

There even was one of the former designers in it. It really explains some of the craziness with designs with what she says.

[thyme4change]

Sept 15, 2021 12:05:59 GMT -5 justme said:

Sept 15, 2021 3:47:56 GMT -5 Works4me said:

I watched it and really enjoyed it. It appears they grew too big too fast and then the founders failed to act honestly when issues repeatedly arose. Instead, they created a labyrinth of LLC's to shelter assets and blamed their sakes consultants. Also, they hired unqualified and inexperienced family everywhere. One of the women who was a former sales consultant declined to share the amount of her monthly bonus checks - gotta wonder how much that totaled.

A lot considering she was one of the first few handful of retailers. That other couple shared their highest check ($42k one month) and I'm sure hers was higher than that. I dunno if she was the top one they mentioned but she was up there.

My ymam self is going here - once you started making 5 figures a month in the recruitment check why didn't you just order the min inventory to keep getting the check and then SAVE a lot of it. 

I think if you are reasonable enough to figure out risk mitigation strategies you probably would never fall for their cult lies and ridiculous promises to begin with. And you probably wouldn't have a lot of success in the organization without a full out, no holds, 100% belief that this was legit. You would have to be a Meryl Streep level actor to muster the enthusiasm to recruit a downline if you weren't full Kool-Aid into it.

[jeffreymo]

I had some family members in the early 2000’s that were involved in mlm. They were more zombie-like and obsessed than some of the women on this program. Every part of their daily life was an opportunity to add someone to their “team”. This was before social media so as some of you may have experienced they stalked people out at grocery stores and shopping malls. The most embarrassing event (for me) - my aunt finagled her way into getting an ex-flame’s phone number. This was a 3-4 month relationship and basically as soon as it ended my aunt went through back channels (my mom) to get the girls contact info. After I found out I had to apologize and give her a warning call.

Another family member is a Rodan and Fields rep and used to be really aggressive in the beginning but that’s died down now. I think with most of the mlm, they start out with their hair on fire and then it gradually dissipates and they tell family and friends - oh I was only in it to get my products subsidized.

[justme]

Sept 16, 2021 9:03:01 GMT -5 thyme4change said:

Sept 15, 2021 12:05:59 GMT -5 justme said:

A lot considering she was one of the first few handful of retailers. That other couple shared their highest check ($42k one month) and I'm sure hers was higher than that. I dunno if she was the top one they mentioned but she was up there.

My ymam self is going here - once you started making 5 figures a month in the recruitment check why didn't you just order the min inventory to keep getting the check and then SAVE a lot of it. 

I think if you are reasonable enough to figure out risk mitigation strategies you probably would never fall for their cult lies and ridiculous promises to begin with. And you probably wouldn't have a lot of success in the organization without a full out, no holds, 100% belief that this was legit. You would have to be a Meryl Streep level actor to muster the enthusiasm to recruit a downline if you weren't full Kool-Aid into it.

There were some in the docu that said they were given people they've never met to sign up in their downline. It's a lot easier if you never have to sell the people and are just handed them. According to what some said there was a 6-8 week waiting list to join...very little having to convince with that "urgency".

But the cult aspect played deep. One mentioned (not sure if it was the doc or an article) about how they kept posting super positive stuff because they were told to even though they were having a horrible time.

[justme]

Sept 17, 2021 8:50:15 GMT -5 jeffreymo said:

I had some family members in the early 2000’s that were involved in mlm. They were more zombie-like and obsessed than some of the women on this program. Every part of their daily life was an opportunity to add someone to their “team”. This was before social media so as some of you may have experienced they stalked people out at grocery stores and shopping malls. The most embarrassing event (for me) - my aunt finagled her way into getting an ex-flame’s phone number. This was a 3-4 month relationship and basically as soon as it ended my aunt went through back channels (my mom) to get the girls contact info. After I found out I had to apologize and give her a warning call.

Another family member is a Rodan and Fields rep and used to be really aggressive in the beginning but that’s died down now. I think with most of the mlm, they start out with their hair on fire and then it gradually dissipates and they tell family and friends - oh I was only in it to get my products subsidized.

I remember going to an R&F store front with my girl scout troop for some reason. As an adult I'm guessing they figured they'd get some business out of it... not sure they did. I know they got nothing from my mom who was the leader of the troop.

[TheOtherMe]

I fired a cleaning lady for setting me up with Amway.  She told me she took credit cards and that I needed to buy a kit of supplies from her.  Stupid me went to the link she sent me and put in the CC info.  It did not appear that I had signed up for Amway, but that is what I had done.

As soon as I realized it, I fired her and told her that was a sneaky way to get someone downline.  I disputed the charge and got my money back.  I tossed out all of the product that arrived. 

[nidena]

If you want some more first person accounts from people who've joined LulaRoe and others, check out www.pinktruth.com

I joined mary kay back in 2010.  I escaped after a year.  Somewhere on the MSN Money board archives is my journey but, let me just say: mki was the most predatory...until llr came along.

Mki has star levels that encourage you to buy thousands of $ of product every quarter.  That pink cadillac that the director's get (or the other car that some lower levels get) are NOT prizes or awards.  Directors have to do $10,000 in production (every month or quarter, I forget) in order to keep it.  They have to have $5000 themselves and their team must have $5000.  

Production means "bought the shiznit"; it doesn't actually require selling any of it.

Then llr came along with its "starter kits" that were $40000-$6000 worth of product that the rep didn't pick.  Didn't pick sizes, didn't pick colors, didn't pick styles.  A multi-thousand $ mystery bag of crap.

And those mlms prey on military wives like it's nobody's business.  Exploiting their desire to provide income to their families in their "move every few years" environments.

At one point, when I was an admin on a FB group for base women, we had to designate one day as the day they could advertise all their wares.  There was less than 2000 in this group (hell, there was only 35,000 in the surrounding town) and there was 9 Scentsy reps, 4-5 mary kay reps, 2-3 origami owls, some llr reps, and enough of others that there was, easily 30 reps for various mlms.

[NomoreDramaQ1015]

They like to prey on college students too.  There was ALWAYS a Mary Kay and usually a Pampered Chef booth at every career fair hosted by the colleges.  

The worst sales pitch I ever got was at a bridal expo.  The Pampered Chef lady caught me and told me how if I joined up I could host my own bridal shower!  And instead of a registry I could bring my products and have my guests buy those.  Then I get gifts AND I make a profit isn't that fantastic?
I told her no way.  My mother would kill me, my MIL would pick at the leftovers and my grandmother would haunt me in hell for being so tacky.


Also got accosted by an Mary Kay rep.  I threw my BFF under the bus because she used to be a sales rep.  I told her she was the MOH it was her job to protect the bride from MLM schemes.