[Elle:] The members of the Anti-MLM Coalition joined together to expose the truth and lies in the multi-level marketing (MLM) industry. As well as a number of anti-MLM allies, we also recognise the work of those who have been tirelessly spreading the word on their chosen MLMs of interest, often long before our group was formed.
We created this website with the aim of being a useful resource page for all things anti-MLM. We’re united in a common mission, with a variety of specialities and knowledge.
If you’re not familiar with this scheme, you may have heard it referred to as “the legging MLM” – the product for which it is best known for. I’ll give you a brief overview (with credit to the LuLaRoe Wiki entry).
Founded in 2012 by DeAnne Brady Stidham and her husband, Mark Stidham, LuLaRoe is a United States-based designer and seller of women’s clothing that uses the MLM model to distribute its products.Based in Corona, California, LuLaRoe recruits independent distributors (referred to by the firm as “fashion consultants”) to sell products directly, often through Facebook Live video streams.
(Here’s a snippet of trivia for you – Brady Stidham named the company after her three oldest grandchildren; Lucy, Lola, and Monroe).
LuLaRoe clothing is only sold by the company through its distributors aka “fashion consultants”. These distributors purchase inventory from LuLaRoe at wholesale, which they then resell to consumers.LuLaRoe distributors are required to purchase an initial inventory of clothing and marketing materials which cost between $4,925 and $9,000 (as of 2017, according to this CBS News article) and are recommended to keep around $20,000 worth of inventory on hand.
Distributors can be compensated from two potential revenue streams: from direct selling to customers, and from a commission based on sales made by their recruited downlines. According to this Business Insider article, in the company’s income disclosure statement, the average annual commission earned from down line distributors in 2015 was $85.
LuLaRoe distributors sell the products through a party plan, pop-up boutiques, or online using private ‘VIP groups’ that they have set up on Facebook. During a pre-scheduled online event, LuLaRoe distributors use a live streaming video to present their current inventory to their viewers, with the distributor appearing on-screen to exhibit and describe each item.
However, when it comes to LuLaRoe, its only right that we direct you to someone who’s been in the eye of the LuLaStorm.
So, meet your new leggings oracle, @LulaRoeFail.
Connect with @LuLaRoeFail
This person was a distributor for over a year and says, “I’ve seen many things through this MLM journey that have made me lose hope for all MLMs“. Their business was by no means a ‘failure’ – “I sold over $8-10k for many months whilst working a full time job. I WAS successful – LuLaRoe is the failure, not me.”
Through the dedicated website LuLaRoeFail.com, you will find a whole wealth of information about this MLM, including (to name a few): real experiences, racism, death threats, and a distributor who “mocked people with disabilities”.
Here are your @LuLaRoeFail social media links:
If you have a LuLaRoe experience you would like to share, please contact firstname.lastname@example.org.
Connect with MommyGyver
Although not technically anti-MLM, MommyGyver investigates and exposes companies that target women. Needless to say, MommyGyver and LuLaRoe’s paths have crossed.
Check out her information and resources on how LuLaRoe has treated her.
Connect with @MommyGyver on Twitter.
Other Useful Anti-LuLaRoe ResourcesAvoid LuLaRoe: Six Reasons to LuLaNO by Bridget Jack Jeffries at Pink Truth.