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LuLaRoe Part One-If Not Pyramid, Why Pyramid Shaped?
Manage episode 459787385 series 3470887
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This week we are talking about LuLaRoe and it is a fun one!
LuLaRoe is a clothing company known for their “Buttery Soft Leggings” and bold patterns. With Promises of full time pay for part time work, The Lularoe life appealed to many people in America struggling to make ends meet. Especially women and often stay at home moms who may have just left their job to begin their family.
Established in 2013 it reached its height in 2016-2017 with nearly $2 billion in sales and 80000 independent “Fashion Consultants” selling lularoe clothing. Consultants would spend tens of thousands of dollars buying leggings and dresses in bulk and do their best to make their “investment back”.
Luckily for these struggling retailers there was a second way to make money at Lularoe: Recruitment. The more people you recruited the more money you would get. As the company got bigger and bigger it began to look less and less like a Legging company and more and more like a Pyramid. Less like a way for struggling families to make some extra cash and more like a predatory machine funneling money up to the very top of the food chain.
Enjoy!
Sources for this week:
“Lula Rich” -Amazon Prime Documentary (2021)
“The Rise and Fall of Lularoe”-Documentary on Max (2021)
“The Rise and fall of Lularoe” -6 part Podcast series hosted by Stephanie Mcneal
https://www.stephaniemcneal.com/lularoe-documentary-Buzz Feed Reporter Stephanie Mcneal. Compalition of 11 articles written from 2017 to 2020:
Millennial Women Made LuLaRoe Billions. Then They Paid The Price. February 2020.
LuLaRoe Is Paying More Than $4 Million To Settle A Lawsuit That Claimed It Was Running A Pyramid Scheme February 2021
LuLaRoe Is Firing All 167 Employees At Its Warehouse After Years Of Legal Drama October 2019
An Ex-LuLaRoe Employee Says In Lawsuit He Was Tormented By His Coworkers With Racist Jokes And Slurs February 2018
Women Say They're Stuck With $20,000 Of Worthless Clothing In A LuLaRoe "Pyramid Scheme" October 2017
Women Are Furious Because They Say Their LuLaRoe Leggings Rip Like "Wet Toilet Paper" April 2017
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