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Where Are the LuLaRoe Founders Now?

Where Are the LuLaRoe Founders Now?
Written by publishing team

In the opening part of LuLaRichAnd DeAnne and Mark Stidham—a cheerful, cheerful Mormon couple of fourteen children, and founders of multi-level clothing marketing company LuLaRoe—adjusted tassels to the rug underneath to make sure the shot was just right. Their appearance matters, as they strive to tell their side of the story, recover from a mass exodus from their company, and redeem themselves after a $4.75 million lawsuit. settlement with Washington State. Their exact interview footage is in stark contrast to footage from their nomination, which is also sprinkled throughout the documentary.

LuLaRich, On Amazon Prime on September 10, a new documentary from Jenner Furst and Julia Willoughby Nason, creators scam men. The gorgeous four-part series features interviews with DeAnne and Mark, as well as employees and independent retailers at LuLaRoe, a clothing wholesaler known for his bold prints (which is an understatement).

DeAnne and Mark created LuLaRoe, named after their first three granddaughters, in 2013. What started as a maxi skirt operation in their home has grown into a multi-level marketing company selling colorful clothing with more than 80,000 independent retailers. The documentary explains that LuLaRoe’s goals are primarily to stay at home, attracting them by advertising the ability to run a business and generate income while caring for their children at home.

DeAnne and Mark Stidham in LuLaRich interview.

Amazon Prime

LuLaRoe operates as a wholesaler, selling stock to individual “retailers” who then sell it to others. These retailers earn by selling themselves, but also by recruiting others to become retailers as well. Their recruits become their team, for whose sales they receive a percentage of bonus checks. While LuLaRoe’s reward structure changed in 2017, it is this structure for earning rewards by hiring that suggests a pyramid scheme, where the majority of profits are generated from new signups rather than sales. According to the Washington State Attorney General, Bob Ferguson, “this is [structure] It allowed two LuLaRoe retailers — each of which had hundreds of recruits to its “reviewers” ​​— to collectively generate more than $5 million in profits between 2016 and 2019, while at the same time, more than a third of the retailers reported losses.”

And at LuLaRoe’s heyday in 2016, buying in the dream and becoming a retailer had a cost. At one time, it cost upwards of $5,000 to start an arm of the company, which was the company encourage Retailers have to assemble by any means necessary – whether through multiple credit cards, borrowing, or even selling their own breast milk. The waiting list to join the company as a retailer includes hundreds of names, as women have moved from California to Utah with LuLaRoe’s stated mission of “creating freedom through fashion.” The company has held mega events and conferences (bringing in talent including Katy Perry and Kelly Clarkson; taking high-income earners on cruises) to empower retailers as they rise through the ranks of MLM. In 2016, LuLaRoe announced sales of up to $2 billion.

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LuLaRoe Conference.

Amazon Prime

But the interviews in LuLaRich It reveals that the company’s girlboss empowerment culture scantly veils a toxic and sexist scam. The documentary features footage of religious messages about the proper job of a woman at home being preached at LuLaRoe events, features testimony from independent retailers who were supplied by founders with defective and damaged goods and lit gas for it, and even reveals the pressure of some high-ranking officials. Learners felt they were going for their weight loss surgery in Tijuana, Mexico, in order to better represent LuLaRoe’s success story. LuLaRich It contains many harrowing accounts of LuLaRoe that ruined the lives, marriages, and finances of many women.

more than 50 Lawsuits It has been Foot against LuLaRoe since 2016, and in January 2019, the state of Washington filed a civil lawsuit against LuLaRoe for allegedly acting as an illegal pyramid scheme. LuLaRoe Settlement With the state in February 2021 for $4.75 million.

Today, the company is still operating, although several “popular” independent retailers of Lula have closed their stores, according to the documentary series. the current purchase To become a retailer is $499, and according to income ad statment On the LuLaRoe website, in 2020, more than 50% of LuLaRoe retailers made less than $5,000 in sales alone.

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One of the pairs is a major retailer at LuLaRoe, who was later suspended from the company after expressing concerns.

Amazon Prime

Diane Stidham Instagram The account has more than 80 thousand followers, but is currently private. However, the company’s account continues to promote their clothing and the freedom and opportunity they provide retailers. “Before LuLaRoe, Irene and her husband used to work stressful jobs,” one of them Caption is reading. “She shares with us how having her own business has relieved stress as they work from home, spend more time with their kids, and attend all their activities.”

And below, a disclaimer: “*** For information regarding the total earnings of retailers who processed a transaction at any time in 2020, please refer to LuLaRoe’s 2020 Income Disclosure Statement at:***“.

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