• We recently watched the documentary called LulaRich which is a popular and well known MLM on comfortable clothing or magical like leggings that fit every and all shape. Yes, who doesn’t like a piece of clothing that fits all…right?!! And better yet..this was a product that if you “put your whole heart and soul into it” would determine the success of your business and your financial freedom. And mind you this MLM was targeting women who were typically stay at home moms that were daily struggling with their financial choices in order to make ends meet. • We’re going to discuss what we leared from the documentary, research regarding the hidden challenges or reprecussions and of course our thoughts. • So let’s dive in shall we? • You are the boss of what you choose to do… I actually love that saying and I fully support. • LulaRoe – an MLM, one of many that unfortunattly has made headlines for negative reasons which we will dive into but let’s first focus on who the are and how this got started for our listeners that may not be as familiar with the product/MLM. • Started in 2013 • Name originated from their first three grandaughers. • How it originated… • One of eleven children the founder of LulaRoe – Deanne Startup. • Met husband and business partner Mark Stidham on a plane. • She already had 7 children from a previous marriage. Single mom, broke but determined to live a lavish life. • Her idea started from home. She started making maxi skirts for her daughter and it grew into a business. She then sold items to her first retailer so they could start a side gig selling her maxi skirt product to their friends for a profit. Her retailers grew and LulaRoe was born. • Initial investment for retailers…$5000 • Selling breast milk? Borrowing money from fam members? Credit card charges? • Tijuana Skinny’s… Deanne took several of the TOP retailers to Mexico to get the gastric bypass surgery to lose weight so they could portray a certain look for LulaRoe. • Demographic limit…No protected territories • Some people took that box and turned it into a million dollars and some people took that box and put it in the closet because it scared them…???? • Bogus product..leggings soiled with mildew, moisture and foul smell. Left in the parking lot exposed to elements then shipped out to retailers. • 127,000 sq feet – at that time he was putting stuff outside in cages. It was exposed to the elements. Holes in product, tearing of leggings, shorter hems. They asked their retailers to take a hit to move the product regardless of the issue. • Pushing product than they could deliver at the same rate or level of quality. • Did anyone actually make real money? Not 10k but realy sustainable money to keep a family moving in the right direction towards financial freedom? • Responses from owners of LulaRoe to Retailers who were struggling to sell: o You’re stale o Youre in the wrong business • Is this a pyramid scheme? o Policy? o How you make money? o Compensation structure? o How much was spent monthly to buy product? o Buy back policy? • Compleltely went away – facebook groups went off the charts with women looking for representation • Defective products – Facebook group • Class Action Law suits: • Current payback to retailers at the time of deposition (year date ) 100 Million dollars • Make good refund policy nullified: • Daniel Kang – friendship – ghost squad. Fancy Swedish car squad • 100 people have filed for bankruptcy • They divorced • Compay targeted women who wanted to meet the needs of their family life by staying home to raise the kids and take care of the home. • 4.75 million settled with suit with the the state • LulaRoe is still currently doing business but many have left in droves.