LulaRich on Amazon Prime Video tells the story about the scam on multi-level marketing. This documentary series made by the same guys who explored Fyre Fraud now sheds light on a common scam called MLM. This time it’s on the LuLaRoe legging company that swindled about one hundred thousand employees out of their money. Firstly, we will cover the documentary and its plot. Secondly, we will cover the story. And lastly, we will tell you everything we know about the dangers of multi-level marketing.
LuLaRich is a four-part docuseries that will drop very soon on the Amazon Prime Video streaming service. It covers the sad but true story of the employees at the LulaRoe textile company. Moreover, this documentary was produced by the very same gals who also made the documentary that explored the Fyre Festival fiasco (Julia Willoughby and Jenner Furst). The LuLaRoe Company employed a deceiving tactic to market its sales called multi-level marketing, in which they sold leggings to a client while also signing up new retailers beneath them, promising them greater returns in a giant Ponzi scheme.
LuLaRich Premiere Date and Plot
LuLaRich will release on September 10, 2021, on Amazon Prime Video. The four-part documentary was directed by Jenner Furst and Julia Willoughby Nelson. Firstly, it explores, in the same fashion as Fyre Fraud, the illegal pyramid scheme behind the LuLaRoe textile leggings sale in a series of interviews. In a period of three years (2016-2019), the apparel company’s rapid development, which started as a multi-level marketing scheme in which individuals (mainly women) sold leggings to one another while simultaneously signing up new merchants to be underneath them in the pyramid, has played out primarily on Facebook, as so many bad things do. Former retailers and LulaRoe employees serve as talking heads in the documentary series, attempting to pull themselves out of their wrecked life.
Surprisingly, DeAnne and Mark Stidham, co-founders of LuLaRoe, also sat down for an interview with the filmmakers and tried to happy-talk their way out of what they’d done. Their discussion contrasts sharply with an incriminating video of them (and others in the business) being testified by the state of Washington in a lawsuit against the leggings company.
LuLaRoe’s Rise and Fall
LuLaRoe is an MLM marketing business that commercializes stretchy, oftentimes tacky printed clothes and currently goes through litigation in the United States of America. Moreover, the company commercializes and advertises on Facebook, and their target is mostly women in their thirties. With slogans of empowerment, gratitude, purpose, sisterhood. More than just leggings or stretchy gowns, LuLaRoe offers an image of femininity, freedom, companionship, and a better life in religious-sounding language.
LuLaRoe, like other multi-level marketing businesses (MLMs), generates income by selling stock to people, who then sell it to others. Individual sellers make money via sales and by recruiting additional vendors “below” them in a “downline,” a portion of whose sales they also get. LuLaRoe, like many MLMs, promotes limitless potential. But there is a downside to this: if the potential to make money via their business is limitless, then whatever obstacles you encounter must be your own fault. And that’s the problem: MLMs are a trap.
What is an MLM?
A multi-level marketing scheme sells you products or services via another person. That means someone else sells you directly a good or a service, which you must acquire via a “distributor,” “retailer,” or “participant”. But with all things MLM, there’s a catch. Usually, a scam. Here’s the deal: MLM’s sell you stuff on retail, promising you good returns on your initial investment. And ask you to join them. Then, once you “join them,” they ask you to recruit more and more people. Suddenly, the business isn’t selling the product or service. It rather becomes recruiting new people into the organization.
You may even be required to purchase goods before you are qualified to be paid or get certain incentives. You may also have to pay recurring costs for other things, like training sessions or costly marketing materials. Furthermore, the business may claim that you may receive extravagant incentives like awards, bonuses, exotic trips, and luxury vehicles. However, it often turns out that you must achieve specific product purchases, recruiting, training or other objectives to qualify for the incentives, and only a small number of distributors ever do.
Most distributors eventually discover that no matter how hard they try, they cannot sell enough goods or attract enough individuals to earn a profit. They are also unable to keep up with necessary fees or the inventory purchases required to qualify for incentives, and they are unable to earn enough money to pay their costs. Most individuals eventually run out of money, have to stop, and lose all they invested.