LuLaRoe rocketed to a $2 billion valuation on the currency of its exuberantly patterned loungewear. Women say they sold them a lie
Watch out! Photo: Courtesy of Amazon Prime Video If, hypothetically, I were looking for solid ground on which to build my pyramid scheme, leggings would not be top of list. They would sit somewhere between protein powder and skin care in the “market saturated” section. Pretty much every major retailer sells leggings.
Few of the people interviewed reported making meaningful money as LuLaRoe retailers; many said they worked around the clock to break even at best, or voluntarily took a loss to get out of the business. One said she declared bankruptcy. With MLMs, it’s often the case that only the people at the very top profit. But scores of civil litigants, and even Washington State prosecutors who sued, and subsequently settled with, LuLaRoe in 2019, say pyramid scheme would be a more accurate descriptor.
DeAnne Startup Brady Stidham Photo: Courtesy of Amazon Prime Video DeAnne, our She-EO, looks like bridesmaid font incarnate, hair dyed the color of butter and sprayed into stiff mermaid waves. She favors bold costume jewelry and telegraphs a threatening enthusiasm; acquaintances describe her as charismatic, excitable, and above all, chaotic. As a Startup, DeAnne is, per BuzzFeed, “Mormon royalty.
Per the documentary, the reality of the LuLaRoe lifestyle was not so shiny. The company filled orders with limited-run prints at random, sometimes lending Facebook Live unboxings — the bulk of sellers apparently worked via Facebook Live — the flavor of a cattle auction, so frenzied was popular pursuit of certain designs. But as a retailer, whether you scored a coveted floral or a labial-looking hamburger print was utterly unpredictable.
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