1 00:00:02,000 --> 00:00:07,000 Downloaded from YTS.MX 2 00:00:08,000 --> 00:00:13,000 Official YIFY movies site: YTS.MX 3 00:00:10,724 --> 00:00:11,689 Each and every one of you 4 00:00:11,724 --> 00:00:12,965 are a part of the American dream 5 00:00:13,000 --> 00:00:15,862 because you are entrepreneurs and you own your own business. 6 00:00:15,896 --> 00:00:18,448 And I will tell you, some days are not so good. 7 00:00:18,482 --> 00:00:19,655 But guess what? 8 00:00:19,689 --> 00:00:22,862 So many days are so amazing. 9 00:00:29,275 --> 00:00:31,206 You're important to us. 10 00:00:31,241 --> 00:00:35,206 It is the sisterhood, it is the camaraderie, it is, 11 00:00:35,862 --> 00:00:38,206 it is LuLaRoe. 12 00:00:38,241 --> 00:00:41,689 The law of attraction rules the universe. 13 00:00:41,724 --> 00:00:43,862 I'm so blessed to be a part of LuLaRoe. 14 00:00:43,896 --> 00:00:45,586 You are planting seeds. 15 00:00:45,620 --> 00:00:47,379 In the last 30 days, 16 00:00:47,413 --> 00:00:52,137 I sold over $13,000 worth of LuLaRoe clothing. 17 00:00:52,172 --> 00:00:54,000 That is insane. 18 00:00:54,034 --> 00:00:56,310 We love you, we value you 19 00:00:56,344 --> 00:00:58,862 in everything that you do. 20 00:00:58,896 --> 00:01:01,103 Together, we're home! 21 00:01:01,137 --> 00:01:03,931 It's given me my purpose back. 22 00:01:03,965 --> 00:01:06,965 I knew that not only was this special, 23 00:01:07,000 --> 00:01:08,413 but this was something 24 00:01:08,448 --> 00:01:09,896 that was gonna change people's lives. 25 00:01:11,517 --> 00:01:13,724 You do solemnly state under penalty of perjury 26 00:01:13,758 --> 00:01:15,586 that the evidence you shall give in this matter 27 00:01:15,620 --> 00:01:16,862 will be the truth, the whole truth 28 00:01:16,896 --> 00:01:18,172 and nothing but the truth. 29 00:01:18,206 --> 00:01:20,068 Yes. 30 00:01:20,103 --> 00:01:22,103 Can you please state your full name? 31 00:01:22,137 --> 00:01:24,586 DeAnne Stidham Brady. 32 00:01:25,758 --> 00:01:27,758 Women are filing a class-action lawsuit 33 00:01:27,793 --> 00:01:30,758 accusing LuLaRoe of being a pyramid scheme. 34 00:01:30,793 --> 00:01:33,000 Can you please state your full legal name? 35 00:01:33,620 --> 00:01:35,931 Mark Allen Stidham. 36 00:01:35,965 --> 00:01:38,620 The lawsuit seeks a billion dollars for a plaintiff 37 00:01:38,655 --> 00:01:41,620 unknowingly recruited into LuLaRoe's pyramid scheme. 38 00:01:41,655 --> 00:01:44,586 I hate that I joined LuLaRoe, I am embarrassed 39 00:01:44,620 --> 00:01:45,896 that I sold LuLaRoe. 40 00:01:45,931 --> 00:01:47,103 They got my money. 41 00:01:48,137 --> 00:01:49,448 LuLaRoe won. 42 00:01:49,482 --> 00:01:51,448 I actually, 43 00:01:51,482 --> 00:01:54,896 literally despise them, and it makes me angry. 44 00:01:54,931 --> 00:01:57,586 According to Washington Attorney General, Bob Ferguson, 45 00:01:57,620 --> 00:01:59,586 "LuLaRoe tricked consumers into buying 46 00:01:59,620 --> 00:02:00,827 into its pyramid scheme." 47 00:02:00,862 --> 00:02:04,137 I wasn't alone in... in receiving merchandise 48 00:02:04,172 --> 00:02:06,275 that I just was not able to sell 49 00:02:06,310 --> 00:02:08,862 to anyone because it was crap. 50 00:02:08,896 --> 00:02:11,793 I am stuck with thousands of dollars 51 00:02:11,827 --> 00:02:12,827 of inventory. 52 00:02:13,413 --> 00:02:15,206 Even at my peak month, 53 00:02:15,241 --> 00:02:18,448 I don't think I ever made any money. 54 00:02:18,482 --> 00:02:20,448 I was in a lot of debt that... 55 00:02:22,034 --> 00:02:23,620 I was unable to pay back. 56 00:02:24,413 --> 00:02:27,379 Disrupting that status quo, 57 00:02:27,413 --> 00:02:29,793 we... we created enemies. 58 00:02:29,827 --> 00:02:33,206 We were attacked viciously on social media. 59 00:02:33,241 --> 00:02:35,344 Why doesn't LuLaRoe sell directly to consumers? 60 00:02:37,068 --> 00:02:38,344 I don't know. 61 00:02:38,379 --> 00:02:40,206 How many retailers does LuLaRoe currently have? 62 00:02:40,655 --> 00:02:41,965 I do not know. 63 00:02:42,000 --> 00:02:44,517 Do you know a ballpark? - Nope. 64 00:02:44,551 --> 00:02:46,206 How are you currently compensated? 65 00:02:48,034 --> 00:02:49,379 I don't know. 66 00:02:49,413 --> 00:02:51,827 When did you start asking others to sell 67 00:02:51,862 --> 00:02:53,344 LuLaRoe clothing for you? 68 00:02:55,793 --> 00:02:56,862 I never asked anyone. 69 00:03:07,724 --> 00:03:08,931 Be happy. 70 00:03:08,965 --> 00:03:10,793 Give yourself kudos of the good things 71 00:03:10,827 --> 00:03:12,724 that you are doing and say to yourself, 72 00:03:12,758 --> 00:03:13,827 "You know what? 73 00:03:13,862 --> 00:03:15,413 I'm able to buy better groceries. 74 00:03:15,448 --> 00:03:17,379 I am able to make the car payment." 75 00:03:17,413 --> 00:03:19,758 Those are the reasons why you got started at LuLaRoe. 76 00:03:21,310 --> 00:03:23,413 If the pitch was real 77 00:03:23,448 --> 00:03:25,758 and I said to you, "With no experience, 78 00:03:25,793 --> 00:03:26,931 little money down, 79 00:03:26,965 --> 00:03:28,413 you can run your own business, 80 00:03:28,448 --> 00:03:29,689 set your own hours, 81 00:03:29,724 --> 00:03:32,034 spend more time with your friends and family 82 00:03:32,068 --> 00:03:34,482 and possibly be a millionaire," 83 00:03:34,517 --> 00:03:35,862 and that is possible, 84 00:03:35,896 --> 00:03:38,034 wouldn't you do it? 85 00:03:38,068 --> 00:03:39,896 I'm super excited because I just got 86 00:03:39,931 --> 00:03:41,931 my initial inventory today. 87 00:03:43,241 --> 00:03:45,758 It's a welcome card here from DeAnne and Mark. 88 00:03:45,793 --> 00:03:46,793 This is the planner. 89 00:03:49,241 --> 00:03:50,482 This is so cute. 90 00:03:50,517 --> 00:03:53,034 These are really pretty. 91 00:03:53,068 --> 00:03:54,862 Hello, birds. 92 00:03:54,896 --> 00:03:56,379 Purple birds. 93 00:03:56,413 --> 00:03:59,000 - We have some busy bees. - Do you like wearing underpants? 94 00:03:59,034 --> 00:04:00,379 'Cause this is what it'll feel like. 95 00:04:00,413 --> 00:04:03,517 Also, little extra tuck, tuck for people like me, 96 00:04:03,551 --> 00:04:04,931 like moms, who need it. 97 00:04:04,965 --> 00:04:07,758 - Stickers. Stickers - Stickers. Oh, my gosh. 98 00:04:10,517 --> 00:04:14,137 LuLaRoe is a multi-level marketing company. 99 00:04:14,172 --> 00:04:16,310 They sell shirts, dresses, 100 00:04:16,344 --> 00:04:17,482 all kinds of clothes, 101 00:04:17,517 --> 00:04:20,103 but they're most known for their leggings. 102 00:04:22,034 --> 00:04:25,034 The leggings cost around $25. 103 00:04:25,068 --> 00:04:27,310 They have like a slightly higher price point. 104 00:04:27,344 --> 00:04:30,137 And I think they were considered a little more high quality 105 00:04:30,172 --> 00:04:32,827 and a little more designer than, you know, 106 00:04:32,862 --> 00:04:35,344 just a random pair of leggings. 107 00:04:35,379 --> 00:04:38,137 People really loved their really colorful ones 108 00:04:38,172 --> 00:04:40,482 or they loved the weird patterns. 109 00:04:40,517 --> 00:04:42,068 They loved how soft they were. 110 00:04:42,103 --> 00:04:43,413 And I remember the first time 111 00:04:43,448 --> 00:04:44,758 I heard about LuLaRoe, 112 00:04:44,793 --> 00:04:46,689 that's what people were talking about, 113 00:04:46,724 --> 00:04:48,896 was these leggings are so comfortable 114 00:04:48,931 --> 00:04:50,413 and they're so soft. 115 00:04:52,586 --> 00:04:54,172 Buttery soft leggings. 116 00:04:54,206 --> 00:04:55,448 LuLaRoe leggings, 117 00:04:55,482 --> 00:04:56,827 if you haven't tried them, 118 00:04:56,862 --> 00:04:59,310 are one of the most softest, 119 00:04:59,344 --> 00:05:02,482 buttery things you'll ever put on your legs. 120 00:05:02,517 --> 00:05:06,965 - That buttery soft hand feel that you all absolutely love. - Buttery soft. 121 00:05:07,000 --> 00:05:09,758 Like, what does buttery even mean? 122 00:05:09,793 --> 00:05:12,310 And I thought that was really ridiculous, too, 123 00:05:12,344 --> 00:05:13,413 until I felt them. 124 00:05:17,413 --> 00:05:18,862 Now, let's go to a little town 125 00:05:18,896 --> 00:05:21,931 in New Jersey where things are really popping. 126 00:05:21,965 --> 00:05:25,000 Yes, there's a party going on at Mrs. Betty Martin's house. 127 00:05:25,034 --> 00:05:26,517 It's a Tupperware party, 128 00:05:26,551 --> 00:05:28,137 and it's really fun. 129 00:05:28,172 --> 00:05:30,310 The girls get together and meet their old friends 130 00:05:30,344 --> 00:05:31,896 and make some new ones. 131 00:05:31,931 --> 00:05:33,758 Then there's a demonstration 132 00:05:33,793 --> 00:05:35,172 by one of the Tupperware dealers 133 00:05:35,206 --> 00:05:36,379 who lives in your community. 134 00:05:36,413 --> 00:05:39,758 ♪ It's time to take time out for beauty ♪ 135 00:05:40,551 --> 00:05:41,827 Avon calling 136 00:05:41,862 --> 00:05:43,586 Growing up, I remember my mom 137 00:05:43,620 --> 00:05:45,241 going to a lot of Tupperware parties. 138 00:05:45,275 --> 00:05:47,172 My great grandma sold Avon. 139 00:05:47,206 --> 00:05:48,379 My aunt sold Mary Kay. 140 00:05:49,931 --> 00:05:51,379 Dishes in my grandma's house 141 00:05:51,413 --> 00:05:53,137 were from like door-to-door salesmen. 142 00:05:54,068 --> 00:05:55,620 And you would see a lot of products 143 00:05:55,655 --> 00:05:56,827 in people's houses. 144 00:05:56,862 --> 00:05:59,172 I thought it was just a fun... 145 00:06:00,103 --> 00:06:01,379 ...get together? 146 00:06:01,413 --> 00:06:03,379 As a kid, I did not understand 147 00:06:03,413 --> 00:06:05,413 about the recruitment. 148 00:06:05,448 --> 00:06:07,655 Like, I really thought these women were just, like, 149 00:06:07,689 --> 00:06:08,965 running a business out of their house. 150 00:06:11,862 --> 00:06:15,896 The American dream is that we all have 151 00:06:15,931 --> 00:06:19,137 the chance to be rich, 152 00:06:19,172 --> 00:06:21,620 and make it, you know, we all have the chance. 153 00:06:21,655 --> 00:06:22,896 We all grow up thinking, 154 00:06:22,931 --> 00:06:25,620 "I'm gonna get famous or I'm gonna get rich." 155 00:06:25,655 --> 00:06:28,620 And we aren't discouraged from thinking that. 156 00:06:28,655 --> 00:06:30,758 Maybe you'd like to look at this more closely. 157 00:06:31,275 --> 00:06:32,586 I'll pass it around. 158 00:06:32,620 --> 00:06:33,793 Yeah. 159 00:06:33,827 --> 00:06:35,310 If you work hard enough, 160 00:06:35,344 --> 00:06:37,827 you will achieve success. 161 00:06:39,137 --> 00:06:40,896 And these companies, 162 00:06:40,931 --> 00:06:42,379 they're just exploiting 163 00:06:42,413 --> 00:06:44,448 that hopefulness that we've all been raised with. 164 00:06:46,931 --> 00:06:48,724 LuLaRoe was founded in 2013 165 00:06:48,758 --> 00:06:51,896 and grew extremely fast. 166 00:06:51,931 --> 00:06:54,137 So, in 2015, 167 00:06:54,172 --> 00:06:56,793 they only had around 1,000 consultants. 168 00:06:56,827 --> 00:06:58,896 By April 2017, 169 00:06:58,931 --> 00:07:01,517 they had over 80,000 consultants 170 00:07:01,551 --> 00:07:03,724 and were making a billion dollars in revenue. 171 00:07:05,034 --> 00:07:09,034 So, that's 0 to 80,000 in five years. 172 00:07:09,068 --> 00:07:10,310 You know, having come from business, 173 00:07:10,344 --> 00:07:11,793 I understand most companies would kill 174 00:07:11,827 --> 00:07:14,275 to have that kind of growth year over year. 175 00:07:14,310 --> 00:07:17,724 And so, uh, business processes have been a challenge. 176 00:07:17,758 --> 00:07:20,034 You know, when it was just a small family business, 177 00:07:20,068 --> 00:07:22,034 we all just, kind of, rolled up our sleeves 178 00:07:22,068 --> 00:07:23,482 and did what needed to be done. 179 00:07:24,862 --> 00:07:26,655 I first got interested 180 00:07:26,689 --> 00:07:29,310 in reporting on multi-level marketing 181 00:07:29,344 --> 00:07:31,103 because I had noticed 182 00:07:31,137 --> 00:07:33,931 that a lot of people that I knew from growing up 183 00:07:33,965 --> 00:07:36,827 on social media had been joining MLMs. 184 00:07:37,413 --> 00:07:38,689 Hey, girl, hey! 185 00:07:38,724 --> 00:07:40,448 Hey, hey, hey, ladies! 186 00:07:40,482 --> 00:07:43,689 Hey, girl, hey, happy Friday! 187 00:07:43,724 --> 00:07:46,379 The simplest way to explain an MLM 188 00:07:46,413 --> 00:07:48,689 or a multi-level marketing company 189 00:07:48,724 --> 00:07:51,793 is that they recruit individual retailers 190 00:07:51,827 --> 00:07:53,758 to sell a product. 191 00:07:53,793 --> 00:07:55,931 And then those retailers 192 00:07:55,965 --> 00:07:58,620 recruit other retailers. 193 00:07:58,655 --> 00:08:00,379 The products can be anything. 194 00:08:00,413 --> 00:08:02,689 It can be essential oils, 195 00:08:02,724 --> 00:08:04,448 it can be herbal supplements, 196 00:08:04,482 --> 00:08:05,931 it can be make-up 197 00:08:06,551 --> 00:08:07,689 or it can be leggings. 198 00:08:11,068 --> 00:08:12,482 LuLaRoe is the kind of MLM, 199 00:08:12,517 --> 00:08:13,620 they have a product, 200 00:08:14,310 --> 00:08:15,724 banana leggings, 201 00:08:15,758 --> 00:08:19,241 and they're superior to other banana leggings. 202 00:08:19,275 --> 00:08:22,448 They're so superior that you must sell them 203 00:08:22,482 --> 00:08:24,172 door-to-door or to your friends and family 204 00:08:24,206 --> 00:08:25,241 or on a Facebook Live. 205 00:08:25,275 --> 00:08:28,000 And that's how exclusive this opportunity is. 206 00:08:28,413 --> 00:08:29,931 And the way 207 00:08:29,965 --> 00:08:32,275 the companies describe how that works 208 00:08:32,310 --> 00:08:34,241 is you buy in, 209 00:08:34,275 --> 00:08:36,068 you get a bunch of banana leggings, 210 00:08:36,103 --> 00:08:37,724 you sell a bunch of banana leggings. 211 00:08:37,758 --> 00:08:39,103 All of your friends at that party 212 00:08:39,137 --> 00:08:40,758 that were buying the banana leggings are like, 213 00:08:40,793 --> 00:08:43,034 "Wow, this is an amazing business opportunity." 214 00:08:43,068 --> 00:08:44,413 And you're like, "I know. 215 00:08:44,448 --> 00:08:46,275 Would you like to sign up underneath me?" 216 00:08:46,310 --> 00:08:47,793 So, you sign people up underneath you, 217 00:08:47,827 --> 00:08:50,000 and there's one rung of people below you. 218 00:08:50,034 --> 00:08:51,034 That's your downline. 219 00:08:52,862 --> 00:08:54,000 Now, you're an upline. 220 00:08:55,448 --> 00:08:57,689 And you get a slice of every future purchase 221 00:08:57,724 --> 00:08:58,862 that they make. 222 00:08:58,896 --> 00:09:00,724 So, it behooves an upline 223 00:09:00,758 --> 00:09:03,758 to encourage their downline to stock up. 224 00:09:07,517 --> 00:09:10,000 The sales pitch from the MLM company 225 00:09:10,034 --> 00:09:13,172 is that, that is supposed to continue on, 226 00:09:13,206 --> 00:09:14,344 kind of like a chain letter, 227 00:09:14,379 --> 00:09:16,344 where you've got your people under you. 228 00:09:16,379 --> 00:09:18,000 Say you have ten, you know, 229 00:09:18,034 --> 00:09:21,000 half of them are amazing recruiters, they each get ten. 230 00:09:21,034 --> 00:09:23,310 Oh, my gosh, now you have, like, 60 people 231 00:09:23,344 --> 00:09:25,241 that you're getting a slice of. 232 00:09:27,034 --> 00:09:28,551 Then those people are also supposed to be 233 00:09:28,586 --> 00:09:29,724 just as ambitious. 234 00:09:33,965 --> 00:09:35,344 It's been a while since we've shopped, 235 00:09:35,379 --> 00:09:37,793 so I want to show you guys what is new. 236 00:09:37,827 --> 00:09:39,241 Do you have the daisies in the medium? 237 00:09:39,275 --> 00:09:40,413 I don't. 238 00:09:40,448 --> 00:09:42,068 Here's another extra small. 239 00:09:42,103 --> 00:09:44,068 It has cute little, uh, typewriters 240 00:09:44,103 --> 00:09:45,413 with little sweet notes on it. 241 00:09:45,448 --> 00:09:47,517 I think that the Internet 242 00:09:47,551 --> 00:09:50,344 helped people who pitch MLMs as an opportunity, 243 00:09:50,379 --> 00:09:51,862 as a business opportunity. 244 00:09:51,896 --> 00:09:55,413 I think it helped them over an early hurdle, 245 00:09:55,448 --> 00:09:58,724 which is, who am I gonna recruit. 246 00:09:58,758 --> 00:10:00,413 Social media has been 247 00:10:00,448 --> 00:10:03,172 like gasoline on the fire of MLMs. 248 00:10:03,206 --> 00:10:05,758 I am so beyond excited, 249 00:10:05,793 --> 00:10:07,413 I'm about to spontaneously combust. 250 00:10:07,448 --> 00:10:08,620 I don't know what you get, 251 00:10:08,655 --> 00:10:10,000 I don't know what I'm gonna give away, 252 00:10:10,034 --> 00:10:11,310 but it's gonna be something good. 253 00:10:11,344 --> 00:10:14,344 Instead of just having a party at your house, 254 00:10:14,379 --> 00:10:16,413 where you can invite people who could physically get there, 255 00:10:16,448 --> 00:10:18,448 you can have an online party 256 00:10:18,482 --> 00:10:20,931 where you can invite everyone you know, 257 00:10:20,965 --> 00:10:22,586 plus invite them to invite everyone they know. 258 00:10:22,620 --> 00:10:24,241 And, you know, you can get these Facebook groups 259 00:10:24,275 --> 00:10:26,137 that have like 30,000 people in them. 260 00:10:26,172 --> 00:10:28,000 So if you're thinking about doing it, 261 00:10:28,034 --> 00:10:29,172 I would encourage you to do it 262 00:10:29,206 --> 00:10:30,793 'cause it's been such a blessing. 263 00:10:30,827 --> 00:10:33,793 So it just makes it even easier 264 00:10:33,827 --> 00:10:35,344 to recruit people. 265 00:10:35,379 --> 00:10:38,137 If you are interested in all of the opportunity, 266 00:10:38,172 --> 00:10:40,310 please feel free to reach out with me. 267 00:10:40,344 --> 00:10:41,862 "Let me ask you a question. 268 00:10:41,896 --> 00:10:45,551 Have you ever thought about potentially working on a side hustle? 269 00:10:45,586 --> 00:10:46,931 You're such a badass. 270 00:10:46,965 --> 00:10:49,000 I think you would be amazing at this opportunity 271 00:10:49,034 --> 00:10:50,827 I recently got involved with. 272 00:10:50,862 --> 00:10:52,172 I know this sounds crazy, 273 00:10:52,206 --> 00:10:54,137 but I've made a little bit of side cash. 274 00:10:54,172 --> 00:10:56,137 Let me tell you more about it. Lol. 275 00:10:56,172 --> 00:10:58,482 Here's my number, call me soon or text me, 'kay?" 276 00:11:00,172 --> 00:11:02,517 Oh, my gosh, guys, I got rained on so bad. 277 00:11:02,551 --> 00:11:05,241 I was delivering LuLaRoe, like all day. 278 00:11:05,275 --> 00:11:07,000 I think LuLaRoe is kind of an example 279 00:11:07,034 --> 00:11:10,655 of like the American work ethos on steroids. 280 00:11:10,689 --> 00:11:13,689 Sometimes, you feel like, "I only have this much 281 00:11:13,724 --> 00:11:15,482 and I'm strung out. 282 00:11:15,517 --> 00:11:17,655 I cannot do it anymore." 283 00:11:17,689 --> 00:11:19,172 Get out there, get busy, 284 00:11:19,206 --> 00:11:22,034 enjoy, have fun and serve your customers. 285 00:11:22,068 --> 00:11:23,137 Serve your community. 286 00:11:26,344 --> 00:11:27,517 DeAnne and Mark Stidham 287 00:11:27,551 --> 00:11:29,034 are the founders of LuLaRoe. 288 00:11:30,724 --> 00:11:32,862 So DeAnne is Mormon 289 00:11:32,896 --> 00:11:35,034 and she was raised in a Mormon family 290 00:11:35,068 --> 00:11:37,517 that's basically Mormon royalty. 291 00:11:40,000 --> 00:11:42,758 DeAnne's descended from the brother 292 00:11:42,793 --> 00:11:45,137 of the man who founded the Mormon church. 293 00:11:46,620 --> 00:11:48,551 Because of that relationship 294 00:11:48,586 --> 00:11:50,172 to the founding of the church, 295 00:11:50,206 --> 00:11:53,482 there would have been a sense of exceptionalism 296 00:11:53,517 --> 00:11:55,000 within the family. 297 00:11:55,034 --> 00:11:57,241 There is a huge amount of overlap 298 00:11:57,275 --> 00:12:00,310 between Mormons and the MLM community. 299 00:12:00,344 --> 00:12:02,862 Mormons are born and bred missionaries, 300 00:12:02,896 --> 00:12:05,068 and that skillset 301 00:12:05,103 --> 00:12:07,034 becomes really useful 302 00:12:07,068 --> 00:12:09,758 when you're trying to get people to join 303 00:12:09,793 --> 00:12:12,206 this once-in-a-lifetime opportunity. 304 00:12:17,172 --> 00:12:20,241 I grew up in the same, uh, Mormon circles 305 00:12:20,275 --> 00:12:21,965 as DeAnne. 306 00:12:22,000 --> 00:12:23,413 Like, I remember her presence, 307 00:12:23,448 --> 00:12:26,068 I remember how her perfume and makeup 308 00:12:26,103 --> 00:12:27,551 and hairspray smelled. 309 00:12:28,241 --> 00:12:30,896 She was incredibly outgoing. 310 00:12:30,931 --> 00:12:32,379 There are some people that just always seem 311 00:12:32,413 --> 00:12:33,931 like they're selling something. 312 00:12:33,965 --> 00:12:35,862 And they're always trying 313 00:12:35,896 --> 00:12:38,586 to convert you to something, right? 314 00:12:38,620 --> 00:12:40,413 And as a child, 315 00:12:40,448 --> 00:12:42,620 I sensed that about her. 316 00:12:42,655 --> 00:12:46,275 And I will tell you, even if you're selling ten items a day, 317 00:12:46,310 --> 00:12:47,551 you're making a difference. 318 00:12:47,586 --> 00:12:49,931 You decided that you could 319 00:12:49,965 --> 00:12:53,137 the minute you said, "I'm gonna do LuLaRoe." 320 00:12:53,172 --> 00:12:55,241 I think the cult of personality around DeAnne 321 00:12:55,275 --> 00:12:56,758 probably helped a lot in the beginning. 322 00:12:57,310 --> 00:12:59,206 She is very flashy, 323 00:12:59,241 --> 00:13:01,275 lots of jewelry, lots of makeup. 324 00:13:01,310 --> 00:13:03,448 She cannot stay off of her phone 325 00:13:03,482 --> 00:13:05,000 and posting pictures of herself 326 00:13:05,034 --> 00:13:06,379 and doing live videos 327 00:13:06,413 --> 00:13:07,827 and being on Instagram Live, 328 00:13:07,862 --> 00:13:09,655 and it's mesmerizing. 329 00:13:09,689 --> 00:13:12,344 Hey, everybody. I am so excited. 330 00:13:12,379 --> 00:13:14,620 It is enthusiastic Thursday. 331 00:13:14,655 --> 00:13:17,103 I am in love with this hat. 332 00:13:19,586 --> 00:13:22,655 The origin story of DeAnne's business, 333 00:13:22,689 --> 00:13:25,827 it's attractive to a lot of new recruits. 334 00:13:25,862 --> 00:13:28,448 I had one kid on a hip and I was pregnant, 335 00:13:28,482 --> 00:13:30,482 and a couple of kids in the stroller. 336 00:13:31,172 --> 00:13:33,034 DeAnne has this very 337 00:13:33,068 --> 00:13:35,517 humble and inspiring origin story 338 00:13:35,551 --> 00:13:37,862 that she is sure to repeat all the time. 339 00:13:37,896 --> 00:13:40,482 How she started as this single mother 340 00:13:40,517 --> 00:13:44,034 who was selling maxi skirts out of the trunk of her car. 341 00:13:44,068 --> 00:13:45,586 And I said, "I'm coming. 342 00:13:45,620 --> 00:13:47,034 Invite all your friends 343 00:13:47,068 --> 00:13:49,275 and we're gonna have a maxi skirt party," 344 00:13:49,310 --> 00:13:51,103 and they go, "Okay, count me in, DeAnne." 345 00:13:51,137 --> 00:13:52,965 And no matter how many I did, 346 00:13:53,000 --> 00:13:54,965 uh, I just kept booking more and more. 347 00:13:55,000 --> 00:13:57,344 And we started a conversation about, 348 00:13:57,379 --> 00:14:00,206 "Don't you think there's probably other women 349 00:14:00,241 --> 00:14:03,517 that would want the same opportunity you've had 350 00:14:03,551 --> 00:14:06,379 to earn extra money while still having the freedom 351 00:14:06,413 --> 00:14:08,724 around their schedule, to be a stay-at-home mom 352 00:14:08,758 --> 00:14:10,620 or take care of their kids?" 353 00:14:10,655 --> 00:14:12,379 The house parties were making a lot of money 354 00:14:12,413 --> 00:14:14,517 and the skirts were very popular. 355 00:14:14,551 --> 00:14:17,241 And soon other women, like Brittany Hunter, 356 00:14:17,275 --> 00:14:19,172 who was the first retailer for LuLaRoe, 357 00:14:19,620 --> 00:14:21,724 um, wanted in. 358 00:14:21,758 --> 00:14:23,827 They wanted to know how they could sell the skirts. 359 00:14:23,862 --> 00:14:26,275 I'm the first retailer of LuLaRoe, 360 00:14:26,310 --> 00:14:28,068 but technically it wasn't called LuLaRoe 361 00:14:28,103 --> 00:14:30,034 in the beginning, so it's been nine years. 362 00:14:30,586 --> 00:14:32,379 And it was, um, 363 00:14:32,413 --> 00:14:34,068 August of 2012, I'm pretty sure, 364 00:14:34,103 --> 00:14:36,413 when I had my very first maxi skirt party with DeAnne 365 00:14:37,137 --> 00:14:38,931 and loved it. 366 00:14:38,965 --> 00:14:41,379 Absolutely fell in love with people coming to my house 367 00:14:41,413 --> 00:14:43,896 and the camaraderie and the excitement. 368 00:14:43,931 --> 00:14:45,758 I called her the next day, I'm like, "I wanna do this. 369 00:14:45,793 --> 00:14:47,517 I need more skirts. How do I get more skirts?" 370 00:14:48,655 --> 00:14:51,000 It was her and I just selling maxi skirts, 371 00:14:51,034 --> 00:14:52,551 and she was still doing her parties 372 00:14:52,586 --> 00:14:54,689 and I would do some around southern Utah. 373 00:14:54,724 --> 00:14:56,896 And, yeah, that's kind of where it began. 374 00:14:58,655 --> 00:14:59,931 So, it works very well 375 00:14:59,965 --> 00:15:03,068 that as a part of DeAnne's origin story, 376 00:15:03,103 --> 00:15:05,517 this business to recruit other people 377 00:15:05,551 --> 00:15:08,413 or get other women involved wasn't even her idea. 378 00:15:08,448 --> 00:15:10,586 It just fell upon her. 379 00:15:10,620 --> 00:15:13,482 It's this American dream saga. 380 00:15:13,517 --> 00:15:16,137 She was just like you. She wasn't special. 381 00:15:16,172 --> 00:15:19,965 She wasn't rich. She wasn't #blessed. 382 00:15:20,000 --> 00:15:21,827 She just worked really hard. 383 00:15:21,862 --> 00:15:24,689 She was your, you know, your average suburban wife and mother, 384 00:15:24,724 --> 00:15:26,965 and look at everything she accomplished. 385 00:15:35,103 --> 00:15:38,965 But the story of Mark and DeAnne and LuLaRoe, 386 00:15:39,000 --> 00:15:40,310 it's not really about them. 387 00:15:40,344 --> 00:15:42,551 It's really about the thousands 388 00:15:42,586 --> 00:15:45,068 upon thousands of women 389 00:15:45,103 --> 00:15:48,827 who fell prey to the promises of feeling worthy 390 00:15:48,862 --> 00:15:50,965 and being a part of something bigger 391 00:15:51,000 --> 00:15:53,620 and having impact and the sisterhood 392 00:15:54,551 --> 00:15:57,000 and are now telling their story. 393 00:16:09,896 --> 00:16:12,931 Before I started LuLaRoe in 2016, 394 00:16:13,551 --> 00:16:14,827 I just felt kind of lost, 395 00:16:14,862 --> 00:16:16,448 and I feel like when I found LuLaRoe, 396 00:16:16,482 --> 00:16:19,586 I'm like, "This is clicking, like, finally, 397 00:16:19,620 --> 00:16:21,931 this is something that I can do." 398 00:16:30,206 --> 00:16:32,551 I actually went down to a convention 399 00:16:32,586 --> 00:16:34,413 in Corona, California, 400 00:16:34,448 --> 00:16:37,413 and there were so many retailers from across the country coming. 401 00:16:37,448 --> 00:16:39,172 I was like, "Wow, this is awesome. 402 00:16:39,206 --> 00:16:41,586 I'm part of this big movement." 403 00:16:41,620 --> 00:16:43,793 DeAnne spoke at that convention, 404 00:16:43,827 --> 00:16:46,310 and I was eating up every word she was saying. 405 00:16:46,344 --> 00:16:49,137 I think I even got teary-eyed, like, listening to her story. 406 00:16:49,172 --> 00:16:50,724 You know, when she was explaining 407 00:16:50,758 --> 00:16:52,482 her struggles before starting, 408 00:16:53,172 --> 00:16:54,965 I kind of related to that. 409 00:16:55,000 --> 00:16:56,793 And, like, that's how I got emotional too, 410 00:16:56,827 --> 00:16:59,482 because I felt like I wasn't where I was supposed to be, 411 00:17:00,448 --> 00:17:02,379 until I found LuLaRoe. 412 00:17:02,413 --> 00:17:04,172 And I just... that really spoke to me. 413 00:17:06,413 --> 00:17:07,965 This is LuLaRoe. 414 00:17:08,000 --> 00:17:09,862 I have so much stuff. Sorry. 415 00:17:11,275 --> 00:17:12,724 Oh, here we go. 416 00:17:12,758 --> 00:17:15,034 This one has the LuLaRoe logo in it. 417 00:17:15,068 --> 00:17:17,000 Oh, and I have matching leggings to this, 418 00:17:17,034 --> 00:17:19,137 so you literally have a... it's called a Lula outfit. 419 00:17:21,344 --> 00:17:24,034 I knew it cost a lot to join, 420 00:17:24,068 --> 00:17:29,034 so I went to my mom and I asked her, 421 00:17:29,068 --> 00:17:32,379 "Is there any way that I could borrow $10,000?" 422 00:17:32,413 --> 00:17:34,517 She was very skeptical at first, 423 00:17:34,551 --> 00:17:36,000 but when I was explaining it to her, 424 00:17:36,034 --> 00:17:37,827 I like, kind of broke down in tears 425 00:17:37,862 --> 00:17:40,310 because I just felt so passionate about it. 426 00:17:40,344 --> 00:17:41,896 And she agreed 427 00:17:41,931 --> 00:17:45,448 and she agreed to take money from her 401to help me. 428 00:17:45,482 --> 00:17:47,000 Hi, guys, Jill here. 429 00:17:47,034 --> 00:17:49,758 Um, I'm kind of testingsomething a little bit different today. 430 00:17:49,793 --> 00:17:52,413 I'm going to be doing $5 off each Julia 431 00:17:52,448 --> 00:17:54,034 and free shipping. 432 00:17:54,068 --> 00:17:57,482 I had been hyping it up on Facebook, social media, 433 00:17:57,517 --> 00:18:01,034 and so I had friends from high school and college come and shop, 434 00:18:01,068 --> 00:18:03,068 and that helped push that first month 435 00:18:03,103 --> 00:18:04,793 to $10,000 in sales. 436 00:18:04,827 --> 00:18:06,137 So, up next, you guys, I have 437 00:18:06,172 --> 00:18:09,068 an extra-large green Carly. 438 00:18:09,103 --> 00:18:12,413 This is legging soft material. It's a green heather. 439 00:18:12,448 --> 00:18:15,724 I felt like LuLaRoe's message was "Everybody is beautiful." 440 00:18:15,758 --> 00:18:18,655 Our size ranges would go up to a size 18-20, 441 00:18:18,689 --> 00:18:21,310 so I feel like it was really size-inclusive. 442 00:18:21,344 --> 00:18:23,965 And I felt like that drew a lot of women in. 443 00:18:24,000 --> 00:18:26,137 Carlies do run two to three sizes big. 444 00:18:26,172 --> 00:18:29,310 So, this looks really cute with it knotted up, you know? 445 00:18:29,344 --> 00:18:31,241 It was really cool. It was so exciting. 446 00:18:31,275 --> 00:18:33,379 My customers loved the outfits I put together. 447 00:18:33,413 --> 00:18:36,103 My second month, I went to $15,000, 448 00:18:36,137 --> 00:18:37,896 and I was just blown away 449 00:18:37,931 --> 00:18:41,034 about, like, how much money I could get by doing this. 450 00:18:41,068 --> 00:18:42,655 So, these are medium 451 00:18:42,689 --> 00:18:45,586 and it is dipped with striped, stripes. 452 00:18:45,620 --> 00:18:46,620 Super, super cute. 453 00:18:47,275 --> 00:18:48,551 It was a whirlwind, 454 00:18:48,586 --> 00:18:51,137 and our first month, we sold $21,000. 455 00:18:51,896 --> 00:18:54,275 And then it just grew so fast. 456 00:18:54,310 --> 00:18:55,379 Take my challenge. 457 00:18:55,413 --> 00:18:58,137 Get out there and find five people a day. 458 00:18:58,172 --> 00:19:00,068 Go out and talk to them. 459 00:19:00,103 --> 00:19:03,655 I listen to DeAnne every day, you know, on Instagram, 460 00:19:03,689 --> 00:19:06,344 and it really gave me a huge boost in confidence. 461 00:19:06,379 --> 00:19:09,517 And your goal is to develop a relationship 462 00:19:09,551 --> 00:19:11,965 with those people that you come in contact with, okay? 463 00:19:12,000 --> 00:19:14,172 That was another aspect of what was recruiting. 464 00:19:14,206 --> 00:19:16,206 I had girls who signed up under me. 465 00:19:16,241 --> 00:19:17,965 I was able to build a team of ten 466 00:19:18,000 --> 00:19:19,379 to become the rank of trainer. 467 00:19:19,413 --> 00:19:20,551 When you became a trainer, 468 00:19:20,586 --> 00:19:23,137 that's when you got the gold watch. 469 00:19:23,172 --> 00:19:25,310 I couldn't wait to get that gold watch. 470 00:19:25,344 --> 00:19:27,103 It was a goal I strived for, 471 00:19:27,137 --> 00:19:29,034 like, "I have to earn that watch." 472 00:19:29,068 --> 00:19:32,000 Like, "I will do anything to earn this watch." 473 00:19:32,034 --> 00:19:34,724 I hit trainer. I mean, that's where the money was at. 474 00:19:34,758 --> 00:19:36,620 And then you didn't have to stress on your sales. 475 00:19:36,655 --> 00:19:38,724 And then we have this beauty. 476 00:19:38,758 --> 00:19:41,000 So you start out just as a retailer, 477 00:19:41,034 --> 00:19:43,137 which means that you're just selling for yourself 478 00:19:43,172 --> 00:19:44,655 and you're getting your own sales. 479 00:19:44,689 --> 00:19:46,034 Then you can move on to sponsor, 480 00:19:46,068 --> 00:19:48,275 which means you have people under you. 481 00:19:48,310 --> 00:19:51,275 And then after that, it goes trainer, 482 00:19:51,310 --> 00:19:53,793 coach, mentor, ambassador. 483 00:19:53,827 --> 00:19:55,862 And so basically, all that really means is 484 00:19:55,896 --> 00:19:57,689 you just have more and more people under you. 485 00:19:57,724 --> 00:19:59,689 Since the early MLMs, 486 00:19:59,724 --> 00:20:02,172 one of the exercises you do at the beginning 487 00:20:02,206 --> 00:20:04,448 is writing down 10 or 50... 488 00:20:04,482 --> 00:20:06,344 I think LuLaRoe does 50 names, 489 00:20:06,379 --> 00:20:08,310 um, that you're supposed to write down of people 490 00:20:08,344 --> 00:20:10,103 you could possibly recruit. 491 00:20:10,137 --> 00:20:12,482 In church communities, Mormonism 492 00:20:12,517 --> 00:20:14,862 especially, those networks, 493 00:20:14,896 --> 00:20:17,379 it doesn't take any time at all 494 00:20:17,413 --> 00:20:18,793 to think of those 50 names. 495 00:20:19,862 --> 00:20:22,620 And so DeAnne was able to tap 496 00:20:22,655 --> 00:20:26,689 into this preexisting Mormon network 497 00:20:26,724 --> 00:20:29,689 so that she could not sell leggings 498 00:20:29,724 --> 00:20:33,862 but sell um... like, hope. 499 00:20:37,137 --> 00:20:38,689 LuLaRoe's marketing strategy 500 00:20:38,724 --> 00:20:41,068 was very family-oriented, 501 00:20:41,103 --> 00:20:43,448 like so we could help mothers support their children. 502 00:20:43,482 --> 00:20:45,862 We have people starting right now, 503 00:20:45,896 --> 00:20:47,862 who are doing incredible things for their family. 504 00:20:47,896 --> 00:20:50,482 She wanted to be a stay-at-home mom, 505 00:20:50,517 --> 00:20:52,034 but has the freedom to come and go 506 00:20:52,068 --> 00:20:53,206 and do what she wanted to do. 507 00:20:54,344 --> 00:20:58,034 How many women would like an opportunity 508 00:20:58,068 --> 00:21:01,379 to earn income while staying at home? 509 00:21:01,413 --> 00:21:05,241 I had title after title, mom, sister, daughter, girlfriend, 510 00:21:05,275 --> 00:21:06,689 but I hadn't figured out 511 00:21:06,724 --> 00:21:10,000 what my individual purpose was. 512 00:21:10,034 --> 00:21:12,758 The idea of, um, 513 00:21:12,793 --> 00:21:14,413 you know, making money from home 514 00:21:14,448 --> 00:21:17,551 with two small children was ideal. 515 00:21:17,586 --> 00:21:19,068 I was used to making money. 516 00:21:19,103 --> 00:21:20,517 I was used to contributing 517 00:21:20,551 --> 00:21:22,724 to the household bills and everything, 518 00:21:22,758 --> 00:21:25,689 um, and I wanted that answer to staying at home 519 00:21:25,724 --> 00:21:28,379 and still being able to raise my daughter. 520 00:21:28,413 --> 00:21:32,413 So, um, you know, I heard the term "Moms Losing Money". 521 00:21:32,448 --> 00:21:36,724 That's what MLM stands for, is Moms Losing Money. 522 00:21:36,758 --> 00:21:40,172 Um, and so it's not something that appealed to me 523 00:21:40,206 --> 00:21:43,689 because it... it didn't make sense to me. 524 00:21:43,724 --> 00:21:45,448 It didn't make sense or cents. 525 00:21:45,482 --> 00:21:47,275 We started this business on the premise 526 00:21:47,310 --> 00:21:49,758 that you could make full-time income on a part-time... 527 00:21:49,793 --> 00:21:50,931 part-time work. 528 00:21:50,965 --> 00:21:53,724 Yes, full-time pay for part-time work. 529 00:21:54,206 --> 00:21:55,931 It's... that's... 530 00:21:55,965 --> 00:21:58,931 If that doesn't define an MLM, I don't know what does, 531 00:21:58,965 --> 00:22:03,310 because as a "real" entrepreneur, 532 00:22:03,344 --> 00:22:05,827 full-time pay, full-time work, 533 00:22:05,862 --> 00:22:09,793 24/7, 365, losing sleep, losing money. 534 00:22:09,827 --> 00:22:12,000 That is the entrepreneur life. 535 00:22:15,000 --> 00:22:17,620 I always say that besides being an entrepreneur, 536 00:22:17,655 --> 00:22:20,482 being a mother is one of the loneliest things you can do. 537 00:22:20,517 --> 00:22:22,620 It costs more to keep your kids in daycare 538 00:22:22,655 --> 00:22:23,827 than it is for you to work 539 00:22:23,862 --> 00:22:25,620 and then, you know, pay for that. 540 00:22:25,655 --> 00:22:27,758 So, it makes sense for a lot of women 541 00:22:27,793 --> 00:22:29,275 to stay home and take care of their kids 542 00:22:29,310 --> 00:22:31,137 and they... but they want to feel productive, right? 543 00:22:31,172 --> 00:22:32,689 They miss their nine-to-five life. 544 00:22:32,724 --> 00:22:34,689 They miss... you know, once you become a mom, 545 00:22:34,724 --> 00:22:36,275 it's a different group of friends. 546 00:22:36,310 --> 00:22:39,862 So, you miss that community, a sense of community. 547 00:22:39,896 --> 00:22:44,000 And so when you see other moms being boss babes, 548 00:22:44,034 --> 00:22:46,000 that's something that you want. 549 00:22:53,379 --> 00:22:54,896 Whatever I do in life, 550 00:22:54,931 --> 00:22:57,068 I want to be the very best I can be. 551 00:22:57,103 --> 00:22:58,689 So, if I'm a LuLaRoe retailer, 552 00:22:58,724 --> 00:23:00,379 I wanna be the best one I can be. 553 00:23:01,275 --> 00:23:03,586 If I have kids, I'm gonna have 11. 554 00:23:04,275 --> 00:23:05,689 Girls, bring him down. 555 00:23:05,724 --> 00:23:08,724 I'm bringing him down, see, he's pulling me. 556 00:23:12,068 --> 00:23:15,068 Whoa. Slow down, baby. 557 00:23:15,103 --> 00:23:16,379 It's pure craziness. 558 00:23:17,551 --> 00:23:19,000 So, we're Christians, 559 00:23:19,034 --> 00:23:20,310 we're members of the Church of Christ. 560 00:23:21,172 --> 00:23:22,586 We had four kids, 561 00:23:22,620 --> 00:23:24,172 but then we went on a mission trip 562 00:23:24,896 --> 00:23:26,379 and we stayed in an orphanage. 563 00:23:27,344 --> 00:23:28,517 I'm a stay-at-home mom 564 00:23:28,551 --> 00:23:30,137 and Kenny had a really good job, 565 00:23:30,172 --> 00:23:31,413 so why not adopt? 566 00:23:33,103 --> 00:23:34,689 That's how 11 happens. 567 00:23:34,724 --> 00:23:36,000 So... 568 00:23:37,241 --> 00:23:38,689 I would say that our generation 569 00:23:38,724 --> 00:23:40,413 is just a bunch of strong 570 00:23:40,448 --> 00:23:42,034 stay-at-home moms 571 00:23:42,068 --> 00:23:44,551 and a lot of us joined LuLaRoe 572 00:23:44,586 --> 00:23:46,310 and that's what grew LuLaRoe. 573 00:23:46,344 --> 00:23:48,827 It was who signed up, saw the business opportunity 574 00:23:50,206 --> 00:23:51,310 and ran with it. 575 00:23:52,172 --> 00:23:53,344 It's like a cool mom club. 576 00:23:56,931 --> 00:23:58,620 When I started, we didn't go live, 577 00:23:58,655 --> 00:24:01,034 we just did in home pop-ups. 578 00:24:01,068 --> 00:24:03,827 It was just girls shopping. Just like a big party. 579 00:24:04,413 --> 00:24:05,827 A lot of fun. 580 00:24:05,862 --> 00:24:07,689 This is nice. Is this the back or the front? 581 00:24:07,724 --> 00:24:08,793 It's reversible. 582 00:24:09,482 --> 00:24:10,551 I like options. 583 00:24:12,068 --> 00:24:14,241 Wendi, Wendi. 584 00:24:14,275 --> 00:24:15,965 I have some of the best friends 585 00:24:16,000 --> 00:24:17,620 from that because 586 00:24:17,655 --> 00:24:20,275 I feel like, even though LuLaRoe pushed community, 587 00:24:20,310 --> 00:24:22,586 we had then to create true community 588 00:24:22,620 --> 00:24:24,206 to make it work. 589 00:24:24,241 --> 00:24:25,931 I know, Tracy, the Shirleys are on point 590 00:24:25,965 --> 00:24:27,448 and I have a new box coming tomorrow. 591 00:24:27,482 --> 00:24:29,517 It's going to be good. 592 00:24:29,551 --> 00:24:31,034 Your desire to succeed. 593 00:24:31,068 --> 00:24:34,551 Your commitment to your, to your goals 594 00:24:34,586 --> 00:24:37,724 and your commitment to not letting yourself down 595 00:24:37,758 --> 00:24:39,620 will make all of the difference. 596 00:24:39,655 --> 00:24:41,206 Remember, your business 597 00:24:41,241 --> 00:24:42,896 is not going to grow without you. 598 00:24:42,931 --> 00:24:44,931 Now, we also want you 599 00:24:44,965 --> 00:24:47,137 to strive for getting on the cruise. 600 00:24:48,827 --> 00:24:51,068 It was a goal to cruise qualify. 601 00:24:51,103 --> 00:24:52,724 There was three different tiers, 602 00:24:52,758 --> 00:24:53,862 and so of course, I wanted 603 00:24:53,896 --> 00:24:55,068 the highest ranking tier. 604 00:24:55,103 --> 00:24:57,827 That meant you got a better room in the cruise. 605 00:24:57,862 --> 00:24:59,827 The cruise was actually something you qualified for 606 00:24:59,862 --> 00:25:03,551 if you sold $12,000 for six months in a row. 607 00:25:03,586 --> 00:25:07,137 You are that person that gets 608 00:25:07,172 --> 00:25:11,103 and deserves anything that you choose for it to be. 609 00:25:11,137 --> 00:25:13,724 Go, go, go. Prizes, cruises. 610 00:25:13,758 --> 00:25:16,896 I just really, really enjoy working for that. 611 00:25:17,862 --> 00:25:19,068 For something. 612 00:25:19,103 --> 00:25:21,206 Because then it doesn't seem like a job, then it was fun. 613 00:25:23,103 --> 00:25:25,517 LuLaRoe cruise ship, all LuLaRoe people. 614 00:25:25,551 --> 00:25:27,000 And if you've been to any LuLaRoe event, 615 00:25:27,034 --> 00:25:28,827 you know at LuLaRoe everything's a party 616 00:25:28,862 --> 00:25:30,310 - and super fun. - Yes, it's not the same. 617 00:25:31,310 --> 00:25:32,896 You never wanna miss a cruise. 618 00:25:34,034 --> 00:25:36,620 And we can't wait to see you on the next cruise. 619 00:25:36,655 --> 00:25:38,172 We are so excited. 620 00:25:59,827 --> 00:26:02,724 I'm always trying to find things on the Internet 621 00:26:02,758 --> 00:26:04,517 that will resonate with people. 622 00:26:04,551 --> 00:26:06,551 So I cover influencers, 623 00:26:06,586 --> 00:26:08,275 things going viral on the Internet. 624 00:26:09,482 --> 00:26:11,965 So, LuLaRoe in their heyday, 625 00:26:12,000 --> 00:26:14,103 they had these cruises 626 00:26:14,137 --> 00:26:17,827 that were like candy for social media, 627 00:26:17,862 --> 00:26:19,965 like, if you follow all of the top sellers 628 00:26:20,000 --> 00:26:21,275 of LuLaRoe on Instagram 629 00:26:21,310 --> 00:26:23,172 and they're all on this cruise at the same time, 630 00:26:23,206 --> 00:26:26,103 and they're posting #BecauseOfLuLaRoe, 631 00:26:26,137 --> 00:26:28,137 "I'm having a pina colada on the beach, 632 00:26:28,172 --> 00:26:29,206 and I'm in the Caribbean 633 00:26:29,241 --> 00:26:30,655 and I'm doing this and I'm doing that." 634 00:26:30,689 --> 00:26:33,379 And it's like, "Duh, of course I want to do this." 635 00:26:36,344 --> 00:26:39,620 And it's all part of just like feeding into this notion 636 00:26:39,655 --> 00:26:41,655 that if you work hard enough, 637 00:26:41,689 --> 00:26:43,620 you will get all of these amazing things, 638 00:26:43,655 --> 00:26:44,862 like, you will get this free trip, 639 00:26:44,896 --> 00:26:46,275 you'll get to meet Mark and DeAnne, 640 00:26:46,310 --> 00:26:47,482 who are like superstars. 641 00:26:49,344 --> 00:26:52,551 And there's this one clip of LuLaRoe's cruise 642 00:26:53,551 --> 00:26:54,965 and there's this scene where, like, 643 00:26:55,000 --> 00:26:57,310 they're all out on the deck 644 00:26:57,344 --> 00:26:59,655 and they're all dancing and partying, 645 00:27:00,931 --> 00:27:03,931 and DeAnne and Mark jump into the pool 646 00:27:03,965 --> 00:27:06,068 that's in the middle of this deck on this ship. 647 00:27:15,275 --> 00:27:17,172 They're in the pool in their clothes, 648 00:27:17,206 --> 00:27:20,206 and it's just this like... The Great Gatsby-esque shot. 649 00:27:21,931 --> 00:27:24,034 They're just in the center of this universe. 650 00:27:27,241 --> 00:27:28,793 MLM conferences 651 00:27:28,827 --> 00:27:33,551 are like a cross between an evangelical tent revival. 652 00:27:33,586 --> 00:27:36,758 You shall not die, but you shall live. 653 00:27:36,793 --> 00:27:39,206 A Tony Robbins conference, 654 00:27:39,241 --> 00:27:43,379 a nightclub discotheque extravaganza 655 00:27:43,413 --> 00:27:45,172 and a Katy Perry concert. 656 00:27:45,206 --> 00:27:48,931 In fact, Katy Perry did perform at a LuLaRoe event. 657 00:27:48,965 --> 00:27:52,068 So they're really just there to inspire, 658 00:27:52,103 --> 00:27:55,206 to create that sense of transcendence, 659 00:27:55,241 --> 00:27:57,620 to burn all of the messages 660 00:27:57,655 --> 00:27:59,655 that have been delivered virtually 661 00:27:59,689 --> 00:28:03,517 into the recruits' brains. 662 00:28:03,551 --> 00:28:07,000 When you participate in a group language ritual 663 00:28:07,034 --> 00:28:09,000 with other people doing the same thing, 664 00:28:09,034 --> 00:28:13,137 it has a physiological de-stressing effect on you. 665 00:28:13,172 --> 00:28:15,448 Your cortisol levels go down, 666 00:28:15,482 --> 00:28:18,448 your serotonin and dopamine spike. 667 00:28:18,482 --> 00:28:20,482 This is why so many people 668 00:28:20,517 --> 00:28:25,034 have profound conversion events when they go to church 669 00:28:25,068 --> 00:28:28,517 and listen to religious music or speak in tongues. 670 00:28:28,551 --> 00:28:30,241 These are bonding events. 671 00:28:32,034 --> 00:28:35,103 It's about that person up at the top, 672 00:28:35,758 --> 00:28:37,827 speaking to their flock, 673 00:28:37,862 --> 00:28:40,344 and in order for that person at the top 674 00:28:40,379 --> 00:28:43,620 to be rich and to give blessings down below, 675 00:28:43,655 --> 00:28:46,137 the people from the bottom must give, they must tithe. 676 00:28:48,000 --> 00:28:49,655 So you need recruitment. 677 00:28:49,689 --> 00:28:51,689 It's not really about the product. 678 00:28:51,724 --> 00:28:53,068 They're selling a dream, right? 679 00:28:53,103 --> 00:28:54,655 They're just, they're not selling the reality, 680 00:28:54,689 --> 00:28:55,931 they're selling the dream. 681 00:29:05,310 --> 00:29:06,413 Ready. 682 00:29:09,413 --> 00:29:13,965 I do think LuLaRoe was trying to sell 683 00:29:14,000 --> 00:29:15,344 the American dream. 684 00:29:16,689 --> 00:29:17,965 That was horrible. 685 00:29:18,000 --> 00:29:19,517 I remember their mission statement. 686 00:29:19,551 --> 00:29:20,586 It was... 687 00:29:22,206 --> 00:29:24,896 ...bless... blessing, uh, 688 00:29:24,931 --> 00:29:27,655 blessing lives and strengthening families. 689 00:29:31,379 --> 00:29:35,172 It was... nothing but positivity and joy 690 00:29:35,206 --> 00:29:39,724 and... and this could be you, this could be you. 691 00:29:39,758 --> 00:29:42,241 It really just seemed like a wonderland. 692 00:29:49,068 --> 00:29:50,068 Argh! 693 00:29:50,655 --> 00:29:52,000 Let's go! 694 00:29:58,931 --> 00:30:01,896 So the first time I ever encountered LuLaRoe, 695 00:30:02,862 --> 00:30:04,827 I was on a family cruise 696 00:30:04,862 --> 00:30:07,241 and we were just out on the beach 697 00:30:07,275 --> 00:30:10,689 and enjoying, enjoying our time. 698 00:30:10,724 --> 00:30:15,965 And there was this guy playing Michael Jackson. 699 00:30:16,000 --> 00:30:19,586 And so I just go and I start dancing. 700 00:30:21,448 --> 00:30:24,034 This guy came and approached me 701 00:30:24,068 --> 00:30:26,965 and said, "Hey, if I give you $100, 702 00:30:27,000 --> 00:30:30,000 will you wear some female leggings 703 00:30:30,034 --> 00:30:31,896 and come and do the same thing you just did 704 00:30:31,931 --> 00:30:34,310 tomorrow morning at this business meeting?" 705 00:30:34,344 --> 00:30:36,310 And I was just like, $100? 706 00:30:36,344 --> 00:30:37,896 Making money on vaca... 707 00:30:37,931 --> 00:30:39,655 Yeah, yeah. 708 00:30:39,689 --> 00:30:41,379 You best believe I'm... I'm there. 709 00:30:44,172 --> 00:30:45,517 So I showed up 710 00:30:45,551 --> 00:30:48,413 and I just sat in the back as a surprise. 711 00:30:48,448 --> 00:30:50,827 Elijah! Elijah! Elijah! 712 00:30:52,758 --> 00:30:54,724 He, you know, hyped up the crowd and everything. 713 00:30:54,758 --> 00:30:58,068 Give it up for Elijah! 714 00:30:58,103 --> 00:31:01,068 And then I come in there and I do my thing, 715 00:31:01,103 --> 00:31:04,034 you know, I just, I just put it down, you know? 716 00:31:16,517 --> 00:31:18,793 Full, like, pop and lock dance, 717 00:31:18,827 --> 00:31:21,413 the ladies went crazy. It was so fun. 718 00:31:21,448 --> 00:31:23,862 Oh, I loved it. 719 00:31:38,172 --> 00:31:40,137 The whole atmosphere was just 720 00:31:41,310 --> 00:31:43,448 full of joy and excitement, like 721 00:31:43,482 --> 00:31:46,137 overwhelming joy and excitement. 722 00:31:46,172 --> 00:31:49,068 Oh, not to mention, it was a wholesome party. 723 00:31:49,103 --> 00:31:50,689 There was no alcohol. 724 00:31:50,724 --> 00:31:52,241 So, I'm just like, 725 00:31:52,275 --> 00:31:54,448 "This is my place." 726 00:31:54,482 --> 00:31:58,620 Like, you see how I am, I'm a naturally just crazy and 727 00:31:58,655 --> 00:32:00,448 full of energy, I don't need 728 00:32:00,482 --> 00:32:02,172 anything to help me party. 729 00:32:04,793 --> 00:32:06,206 Oh, my gosh. 730 00:32:06,241 --> 00:32:09,896 Wow. Good morning. Oh, we're just getting started. 731 00:32:09,931 --> 00:32:13,310 You have no idea how many amazing things we have planned for you today 732 00:32:13,344 --> 00:32:15,172 and tomorrow. Oh, my gosh. 733 00:32:15,206 --> 00:32:17,034 And that's where I met DeAnne and Mark. 734 00:32:23,310 --> 00:32:26,689 So they flew me out to one of the conventions. 735 00:32:27,965 --> 00:32:32,000 LuLaRoe! LuLaRoe! LuLaRoe! 736 00:32:32,620 --> 00:32:35,379 And DeAnne 737 00:32:36,724 --> 00:32:40,137 called me on stage to tell my "why", 738 00:32:41,482 --> 00:32:43,862 uh, and my mom was in the crowd. 739 00:32:46,034 --> 00:32:47,482 So, the "why"... 740 00:32:48,758 --> 00:32:51,448 How can I describe "the why", it was... 741 00:32:52,827 --> 00:32:54,379 Everyone has a "why", 742 00:32:55,068 --> 00:32:57,551 like a sob story to... 743 00:32:58,517 --> 00:33:00,103 ...make you relate. 744 00:33:02,241 --> 00:33:05,206 I, uh, told this crowd 745 00:33:05,241 --> 00:33:07,689 my "why", I definitely got emotional. 746 00:33:07,724 --> 00:33:10,517 'Cause all these people only knew me as this hype man, this... 747 00:33:11,413 --> 00:33:13,965 crazy, rambunctious kid that just 748 00:33:14,965 --> 00:33:17,103 thrives on positive energy. 749 00:33:20,137 --> 00:33:21,862 I got emotional because my mom was out there 750 00:33:21,896 --> 00:33:24,068 and I was just like, "Yeah, I'm grateful for her. 751 00:33:24,103 --> 00:33:28,034 I want to become successful enough to... for her 752 00:33:28,068 --> 00:33:29,413 so that she doesn't have to work 753 00:33:29,448 --> 00:33:30,758 ever again in her life." 754 00:33:31,206 --> 00:33:33,344 And... 755 00:33:33,379 --> 00:33:35,241 that's when DeAnne onboarded her. 756 00:33:36,379 --> 00:33:38,965 She pulled my mom on stage 757 00:33:39,000 --> 00:33:42,931 and then she onboarded my mom to become a consultant. 758 00:33:43,896 --> 00:33:45,206 And I was shocked. 759 00:33:45,241 --> 00:33:47,689 I didn't know, I was like, "Me, a consultant?" 760 00:33:47,724 --> 00:33:49,275 I don't even know what LuLaRoe is. 761 00:33:49,310 --> 00:33:51,448 I didn't know anything, you know, 762 00:33:51,482 --> 00:33:52,862 so I just went with it. 763 00:33:52,896 --> 00:33:55,103 So, when they were coming up happy, 764 00:33:55,137 --> 00:33:57,068 I said, "Okay," you know, so... 765 00:33:57,862 --> 00:34:01,620 What am I wearing? The Amelia. 766 00:34:01,655 --> 00:34:02,931 - Hey. - How could you forget? 767 00:34:02,965 --> 00:34:05,413 How could I forget? I'm learning inventory. 768 00:34:05,448 --> 00:34:08,517 This is my newfound business. 769 00:34:08,551 --> 00:34:10,965 So my mom became a consultant 770 00:34:11,000 --> 00:34:13,620 and my sister 771 00:34:13,655 --> 00:34:16,517 became a consultant under my mom. 772 00:34:16,551 --> 00:34:18,793 She saw me making money and she was like, "Okay, 773 00:34:18,827 --> 00:34:19,965 I want to do it. 774 00:34:20,000 --> 00:34:21,275 I think I'm gonna do it, Mom. 775 00:34:21,310 --> 00:34:23,137 I think I'm gonna sign on and everything." 776 00:34:23,172 --> 00:34:25,655 I said, "Okay, well, make sure you sign under me because 777 00:34:25,689 --> 00:34:28,310 I'll gain a percentage of your sales. 778 00:34:28,344 --> 00:34:31,310 I'll make money off the percentage of your sales." 779 00:34:31,344 --> 00:34:34,068 And so, she said okay and sure enough, she did. 780 00:34:34,103 --> 00:34:35,241 Black and white cardigan. 781 00:34:35,275 --> 00:34:36,931 You can match with a lot of things, 782 00:34:36,965 --> 00:34:39,344 like a mustard colored Carly. 783 00:34:39,379 --> 00:34:41,275 What? You have to be fly. 784 00:34:41,310 --> 00:34:42,793 You have to have that mindset. 785 00:34:42,827 --> 00:34:44,137 You know, let's do this 786 00:34:44,172 --> 00:34:45,827 and fight and work real hard at it. 787 00:34:47,000 --> 00:34:48,103 Yeah. We are so blessed. 788 00:34:48,137 --> 00:34:50,172 You just don't know, this company is the one. 789 00:34:50,206 --> 00:34:51,241 For me, 790 00:34:51,965 --> 00:34:54,482 that was when I felt, "Wow, 791 00:34:55,034 --> 00:34:58,103 they really are blessing 792 00:34:58,137 --> 00:35:00,000 and strengthening families." 793 00:35:31,517 --> 00:35:33,793 I am a widowed single mom 794 00:35:35,344 --> 00:35:38,275 and I am a former LuLaRoe consultant, 795 00:35:38,310 --> 00:35:40,034 and now I own Decades Rock 'N' Pop. 796 00:35:42,068 --> 00:35:44,724 Before that, it was 797 00:35:44,758 --> 00:35:47,103 a LuLaRoe branded Airstream. 798 00:35:49,793 --> 00:35:53,965 This is my new boutique for LuLaRoe. 799 00:35:54,000 --> 00:35:57,448 Everything on social media was perfect with LuLaRoe. 800 00:35:57,482 --> 00:35:58,965 She is about to push. 801 00:35:59,000 --> 00:36:01,275 She is adorable. 802 00:36:01,310 --> 00:36:03,620 A person would post a picture of their new car. 803 00:36:03,655 --> 00:36:05,448 ♪BecauseOfLuLaRoe. 804 00:36:05,482 --> 00:36:08,482 Their vacation, #BecauseOfLuLaRoe. 805 00:36:08,517 --> 00:36:12,448 Homes, events, parties, galas, 806 00:36:12,482 --> 00:36:14,137 Always #BecauseOfLuLaRoe. 807 00:36:15,000 --> 00:36:16,517 Of course me with the Airstream, 808 00:36:17,482 --> 00:36:18,965 because of LuLaRoe. 809 00:36:19,000 --> 00:36:21,206 My entire lifestyle, really, 810 00:36:21,241 --> 00:36:24,000 it all became everything LuLaRoe. 811 00:36:27,310 --> 00:36:30,689 There was definitely a culture of toxic positivity 812 00:36:30,724 --> 00:36:32,689 because of what you were allowed to share 813 00:36:32,724 --> 00:36:34,827 and what you weren't allowed to share. 814 00:36:34,862 --> 00:36:37,137 So you were allowed to share everything positive, 815 00:36:37,172 --> 00:36:40,172 but if anything negative showed up on your pages, 816 00:36:40,206 --> 00:36:43,517 under your comments, under your sold comments, 817 00:36:43,551 --> 00:36:46,482 you were supposed to delete it. 818 00:36:46,517 --> 00:36:48,448 It never happened, it was never on there. 819 00:36:50,586 --> 00:36:52,482 So when I get those messages from my team that I go, 820 00:36:53,034 --> 00:36:54,482 "Oh, my gosh. 821 00:36:54,517 --> 00:36:56,413 Why has LuLaRoe done this to me?" 822 00:36:56,448 --> 00:36:57,517 Be an editor. 823 00:36:57,551 --> 00:36:59,137 Use that delete button. 824 00:36:59,172 --> 00:37:00,896 It's really powerful. 825 00:37:00,931 --> 00:37:01,965 I could not 826 00:37:02,965 --> 00:37:05,034 count the number of times I was reprimanded 827 00:37:05,068 --> 00:37:06,689 for being "negative" 828 00:37:06,724 --> 00:37:09,275 because I was trying to address 829 00:37:09,310 --> 00:37:11,724 legitimate business concerns. 830 00:37:11,758 --> 00:37:13,206 You know, if you complained, 831 00:37:13,241 --> 00:37:15,344 then you should, you should just be grateful. 832 00:37:15,379 --> 00:37:18,413 If your business has taken any kind of a dip, 833 00:37:18,448 --> 00:37:21,724 it's because you took a slow thought process 834 00:37:21,758 --> 00:37:23,862 and got rubbernecking. 835 00:37:23,896 --> 00:37:25,793 Got yourself thinking about the negativity. 836 00:37:25,827 --> 00:37:28,413 When I say, you had to be sunshine and rainbows, 837 00:37:28,448 --> 00:37:31,103 you did, no real talk. 838 00:37:31,137 --> 00:37:33,620 Everything was boss girl, boss babe. 839 00:37:33,655 --> 00:37:35,068 Stay at home and work in your pajamas. 840 00:37:35,103 --> 00:37:36,827 Just... just like everything, 841 00:37:36,862 --> 00:37:38,413 everything, everything was fake. 842 00:37:40,620 --> 00:37:43,724 It was very, very common to see the higher ranks 843 00:37:43,758 --> 00:37:45,724 sitting on a top of maybe 844 00:37:46,517 --> 00:37:49,206 100 boxes of LuLaRoe 845 00:37:49,241 --> 00:37:50,517 stacked up in front of their house. 846 00:37:51,551 --> 00:37:54,413 So the way LuLaRoe's structure worked 847 00:37:54,448 --> 00:37:57,551 was that it was a surprise box. 848 00:37:57,586 --> 00:37:58,931 You didn't know what you were getting. 849 00:37:58,965 --> 00:38:01,758 You could choose your styles, but you never knew the print. 850 00:38:01,793 --> 00:38:03,896 Today, I actually have four boxes here. 851 00:38:03,931 --> 00:38:05,862 Look how nice. 852 00:38:05,896 --> 00:38:07,448 You would say, "Hey, Tuesday night," 853 00:38:07,482 --> 00:38:09,827 I'm going to open this box live, Facebook Live," 854 00:38:09,862 --> 00:38:11,241 and you'd be excited. 855 00:38:11,275 --> 00:38:13,137 These are gorgeous, these might, 856 00:38:13,172 --> 00:38:16,586 might, might be my favorite. 857 00:38:16,620 --> 00:38:18,655 And people would start claiming the second 858 00:38:18,689 --> 00:38:20,310 you opened it up and they wanted it. 859 00:38:20,344 --> 00:38:22,482 That's how big the LuLaRoe craze was. 860 00:38:22,517 --> 00:38:26,310 Favorite ever, you guys, favorite ever. 861 00:38:26,344 --> 00:38:28,448 But it also started draining money right 862 00:38:28,482 --> 00:38:30,965 from the beginning. 863 00:38:31,000 --> 00:38:33,655 It was kind of like playing a scratch off lottery ticket 864 00:38:33,689 --> 00:38:34,758 every time you placed an order. 865 00:38:37,517 --> 00:38:39,344 It was very, very addicting. 866 00:38:39,379 --> 00:38:41,413 And then, once you start getting good boxes, 867 00:38:41,448 --> 00:38:43,137 you're like, "Oh, I'm gonna order another one, 868 00:38:44,482 --> 00:38:46,000 because I sold half my box." 869 00:38:46,827 --> 00:38:48,827 Well, you sold half your box, 870 00:38:48,862 --> 00:38:50,448 you're really not making anything. 871 00:39:01,655 --> 00:39:03,068 Oh, my leg. 872 00:39:04,206 --> 00:39:06,206 - Got it? - Yeah, yeah, yeah, yeah. 873 00:39:06,241 --> 00:39:08,172 Mama, what's this one? 874 00:39:08,206 --> 00:39:11,551 - Okay, so that is the perfect tee. - Yes. 875 00:39:11,586 --> 00:39:13,965 That's actually what I have on, but I tied it. Yes. 876 00:39:14,000 --> 00:39:16,000 Ma, do you have any unicorn leggings? 877 00:39:16,034 --> 00:39:18,000 - These... I had... - Unicorn. 878 00:39:18,724 --> 00:39:19,896 What do you think about that, Zip? 879 00:39:20,724 --> 00:39:22,206 Oh, I... - These kiwis. 880 00:39:22,241 --> 00:39:23,586 Hang on, let's see where. 881 00:39:26,379 --> 00:39:28,413 So, what a unicorn is, 882 00:39:28,448 --> 00:39:32,551 it would be like a very unique print, 883 00:39:32,586 --> 00:39:36,172 a hot commodity that everyone had to have, 884 00:39:36,206 --> 00:39:38,241 almost like you can flaunt with it 885 00:39:38,827 --> 00:39:40,068 and be like, "Yeah, 886 00:39:41,103 --> 00:39:42,620 I got something that you don't have." 887 00:39:42,655 --> 00:39:43,724 This one is a... 888 00:39:43,758 --> 00:39:45,172 Ooh. Those are kind of cool. 889 00:39:45,206 --> 00:39:47,379 That's an owl with the headphones on. 890 00:39:47,413 --> 00:39:50,517 - These are huge unicorns. - LuLaRoe. 891 00:39:50,551 --> 00:39:52,827 Because it's the shades with 892 00:39:52,862 --> 00:39:55,241 LuLaRoe emblem on these things. 893 00:39:55,275 --> 00:39:56,344 Come on now. 894 00:39:56,379 --> 00:39:58,620 I know one for a fact was 895 00:39:58,655 --> 00:40:00,724 all black leggings like, 896 00:40:00,758 --> 00:40:03,827 if you got all black leggings, then, 897 00:40:04,413 --> 00:40:06,241 oh, you got it like, it 898 00:40:06,724 --> 00:40:08,206 sold instantly. 899 00:40:08,241 --> 00:40:10,310 - Oh, those are fly. - I know these are fire, 900 00:40:10,344 --> 00:40:13,344 but I don't know if they would be unicorns. 901 00:40:13,379 --> 00:40:15,379 - No, maybe not. - They're unicorn to me. Mmm-hmm 902 00:40:17,000 --> 00:40:18,413 I mean, people would tell they had like 903 00:40:18,448 --> 00:40:19,827 hundreds of pairs of LuLaRoe, 904 00:40:19,862 --> 00:40:22,172 like more leggings than you could ever wear. 905 00:40:22,206 --> 00:40:24,896 It was like a collecting kind of craze. 906 00:40:24,931 --> 00:40:26,655 They created their own, 907 00:40:26,689 --> 00:40:29,413 um, hysteria around these leggings. 908 00:40:29,448 --> 00:40:32,724 You know, as a business person, I'm like, I was like, smart. 909 00:40:32,758 --> 00:40:34,724 - Do you wanna follow us? - Yeah. 910 00:40:34,758 --> 00:40:36,655 Do you wanna follow us through the warehouse a little bit? 911 00:40:36,689 --> 00:40:40,655 You have to see the amazing pieces that are here. 912 00:40:41,275 --> 00:40:43,034 Look at these. 913 00:40:43,068 --> 00:40:44,379 DeAnne just scored two 914 00:40:44,413 --> 00:40:46,137 Tie Dye Carlys. 915 00:40:46,172 --> 00:40:47,206 Yeah. Because you know what? 916 00:40:47,241 --> 00:40:49,034 I am the owner, and I never get Tie Dyes 917 00:40:49,068 --> 00:40:51,344 'cause you guys all buy them up so fast. 918 00:40:51,379 --> 00:40:53,103 It has been the best day of my life. 919 00:40:53,137 --> 00:40:55,379 Well, look at them. Look at everybody's busy, busy, busy, 920 00:40:55,413 --> 00:40:57,620 pulling your orders. So get out there and order, order, order, order 921 00:40:57,655 --> 00:40:59,586 more fresh stuff, yo. 922 00:41:08,724 --> 00:41:09,827 Before LuLaRoe, 923 00:41:09,862 --> 00:41:12,413 by all accounts, Mark and DeAnne were 924 00:41:12,448 --> 00:41:14,931 a semi-normal family. 925 00:41:14,965 --> 00:41:18,000 They had a pretty modest house for California. 926 00:41:22,310 --> 00:41:24,275 After LuLaRoe, 927 00:41:24,310 --> 00:41:26,655 they have balled out for sure. 928 00:41:27,655 --> 00:41:30,206 They bought this extremely 929 00:41:30,241 --> 00:41:32,448 lavish Wyoming ranch 930 00:41:32,482 --> 00:41:35,931 that they host their family on a lot, 931 00:41:35,965 --> 00:41:38,482 and it's very glamorous looking. 932 00:41:39,827 --> 00:41:43,137 Mark has also used his wealth 933 00:41:43,172 --> 00:41:46,034 to buy a lot of luxury cars. 934 00:41:46,068 --> 00:41:48,551 One of them broke the land speed record. 935 00:41:51,275 --> 00:41:54,034 The Stidhams flaunted that they were becoming wealthy 936 00:41:54,068 --> 00:41:55,862 because that is kind of 937 00:41:55,896 --> 00:41:58,793 part of the company model, right? 938 00:41:58,827 --> 00:42:01,758 Like, you want to show how successful 939 00:42:01,793 --> 00:42:04,000 you're being because 940 00:42:04,034 --> 00:42:06,827 that will inspire other people to try it as well. 941 00:42:06,862 --> 00:42:08,793 We are in... Gucci, shopping. 942 00:42:08,827 --> 00:42:11,206 Look at these girls and look how cute. 943 00:42:11,241 --> 00:42:12,448 This is what we do. 944 00:42:12,482 --> 00:42:15,137 DeAnne was what these women thought 945 00:42:15,172 --> 00:42:17,862 they could become if they just had enough money. 946 00:42:22,689 --> 00:42:25,655 The millionaire mindset or a thought of 947 00:42:26,068 --> 00:42:28,344 how can I become 948 00:42:29,517 --> 00:42:31,793 and strive with the opportunities 949 00:42:31,827 --> 00:42:33,620 that are right in front of me. 950 00:42:33,655 --> 00:42:35,724 Family is very important to the Stidhams, 951 00:42:35,758 --> 00:42:38,551 so DeAnne hired basically all of her children 952 00:42:38,586 --> 00:42:40,448 in one capacity or another. 953 00:42:40,482 --> 00:42:43,620 We want to introduce you to our family, 954 00:42:43,655 --> 00:42:45,344 which also happens to be 955 00:42:45,379 --> 00:42:47,965 a core part of the home office team. 956 00:42:50,379 --> 00:42:51,793 Mark and I thought about 957 00:42:51,827 --> 00:42:53,172 the people that we wanted most 958 00:42:53,206 --> 00:42:54,655 to be involved were our kids. 959 00:42:54,689 --> 00:42:56,000 We knew they could help us. 960 00:42:56,034 --> 00:42:58,206 I remember my parents just saying, 961 00:42:58,241 --> 00:42:59,586 "We want to present the opportunity 962 00:42:59,620 --> 00:43:01,689 to our kids first." 963 00:43:01,724 --> 00:43:03,758 They wanted us to be a part of something that 964 00:43:04,310 --> 00:43:05,379 they were seeing success 965 00:43:05,413 --> 00:43:07,206 and they didn't want it for themselves. 966 00:43:07,241 --> 00:43:10,862 LuLaRoe really became a very incestuous 967 00:43:10,896 --> 00:43:14,000 when it came to how they promoted people 968 00:43:14,034 --> 00:43:16,275 and who was running the company. 969 00:43:16,310 --> 00:43:17,965 And I mean, the Stidhams 970 00:43:18,000 --> 00:43:20,241 decided that they were going to employ as, 971 00:43:20,275 --> 00:43:23,034 I guess, as many family members as they could. 972 00:43:23,068 --> 00:43:24,758 And in my opinion, 973 00:43:24,793 --> 00:43:28,068 it was also a way of them controlling everything. 974 00:43:28,103 --> 00:43:31,862 Because their family would be totally loyal to them 975 00:43:31,896 --> 00:43:35,241 and would do what was necessary, 976 00:43:35,275 --> 00:43:37,034 in order to keep the business going, 977 00:43:37,068 --> 00:43:40,344 according to the dictates of its founders. 978 00:43:40,379 --> 00:43:42,551 So as the business was very small in the beginning, 979 00:43:42,586 --> 00:43:45,103 my wife said, "I'd like to have our kids involved." 980 00:43:45,137 --> 00:43:46,620 They all had different skill sets 981 00:43:46,655 --> 00:43:49,241 and they were the first executive team. 982 00:43:49,275 --> 00:43:52,896 I think the values of MLMs align 983 00:43:52,931 --> 00:43:55,275 perfectly with 984 00:43:55,310 --> 00:43:57,379 the way we think about money in America 985 00:43:57,413 --> 00:43:59,655 or the way we preach about money in America. 986 00:43:59,689 --> 00:44:01,448 Big things are happening. 987 00:44:01,482 --> 00:44:02,758 They will continue to happen 988 00:44:02,793 --> 00:44:04,827 by those that are part of this company. 989 00:44:07,344 --> 00:44:09,172 MLMs probably wouldn't exist without 990 00:44:09,206 --> 00:44:11,931 the prosperity gospel, and what it 991 00:44:12,689 --> 00:44:14,965 espouses is that Mormonism 992 00:44:15,000 --> 00:44:17,103 in particular, being blessed 993 00:44:17,137 --> 00:44:19,620 with money is like literally being blessed by God, 994 00:44:19,655 --> 00:44:21,724 like God favors you 995 00:44:21,758 --> 00:44:23,862 if you are wealthy. 996 00:44:23,896 --> 00:44:26,931 You want to know, if you're good to your fellow man, 997 00:44:26,965 --> 00:44:29,310 then... then look around and see... 998 00:44:30,862 --> 00:44:32,517 check your bank account. 999 00:44:32,551 --> 00:44:34,344 If you have spent your entire life 1000 00:44:35,310 --> 00:44:37,275 hearing the prosperity gospel 1001 00:44:37,310 --> 00:44:39,172 and hearing that you can pull yourself 1002 00:44:39,206 --> 00:44:40,413 up by your bootstraps, 1003 00:44:40,448 --> 00:44:42,517 then when someone comes along and says, 1004 00:44:42,551 --> 00:44:44,068 "Here, actually, you can do it, 1005 00:44:44,103 --> 00:44:46,482 and you don't have to go have any student debt." 1006 00:44:46,517 --> 00:44:48,689 You know, and you can be the boss. 1007 00:44:48,724 --> 00:44:50,965 Then we're all kind of primed for it 1008 00:44:51,000 --> 00:44:53,275 from birth here in the United States. 1009 00:44:53,310 --> 00:44:54,793 Where there's a will, there's a way. 1010 00:44:54,827 --> 00:44:56,655 And when you are ready and you are determined, 1011 00:44:56,689 --> 00:44:58,000 you're gonna do whatever it takes. 1012 00:44:58,034 --> 00:45:01,517 Remember that I will persist until I succeed. 1013 00:45:01,551 --> 00:45:03,896 I wasn't even a year in and I was attending almost 1014 00:45:03,931 --> 00:45:06,586 every training that I could either fly or drive to. 1015 00:45:06,620 --> 00:45:09,965 By getting here, you prove to yourself 1016 00:45:10,000 --> 00:45:12,068 that this was where you needed to be 1017 00:45:12,103 --> 00:45:14,655 at the most important time of your business. 1018 00:45:18,413 --> 00:45:19,896 They convinced me 1019 00:45:19,931 --> 00:45:21,137 to... to buy more, 1020 00:45:21,931 --> 00:45:23,310 buy more, sell more. 1021 00:45:23,344 --> 00:45:25,379 The bigger your business is, the more you're gonna sell 1022 00:45:25,413 --> 00:45:26,758 because more people will come to you 1023 00:45:26,793 --> 00:45:28,793 because you have more stuff in your pictures, 1024 00:45:28,827 --> 00:45:32,344 and, you know, they encourage that. 1025 00:45:32,379 --> 00:45:34,000 What they, LuLaRoe, would tell you to do, 1026 00:45:34,034 --> 00:45:35,241 and especially the leaders, 1027 00:45:35,275 --> 00:45:37,620 is to put the money back in 1028 00:45:37,655 --> 00:45:39,068 to buy more inventory 1029 00:45:39,103 --> 00:45:41,068 and to grow your inventory. 1030 00:45:41,103 --> 00:45:42,620 So that's exactly what I did. 1031 00:45:42,655 --> 00:45:45,034 As much as I could, 1032 00:45:45,068 --> 00:45:48,862 um, use to buy more clothing and add more styles, 1033 00:45:48,896 --> 00:45:50,172 and sizes and colors, 1034 00:45:50,206 --> 00:45:52,310 I would, I would put it all back in. 1035 00:45:52,344 --> 00:45:55,000 I had somebody underneath of me who, um... 1036 00:45:56,862 --> 00:45:58,724 sold $12,000 in one month. 1037 00:45:59,758 --> 00:46:01,379 And then she said to me, 1038 00:46:01,413 --> 00:46:02,965 "But I spent $12,000." 1039 00:46:03,793 --> 00:46:05,275 And I said to her, 1040 00:46:05,310 --> 00:46:07,379 "Well, you had to spend money to make money." 1041 00:46:07,413 --> 00:46:10,103 "Order more inventory and you'll do better." 1042 00:46:10,137 --> 00:46:11,655 It was just kind of always a blanket. 1043 00:46:12,655 --> 00:46:14,137 What can I do to make my business better? 1044 00:46:14,172 --> 00:46:16,655 Like, if you stood in line to talk to DeAnne 1045 00:46:18,000 --> 00:46:19,758 and she would... like, her first question, 1046 00:46:19,793 --> 00:46:21,413 probably back to you probably would have been, 1047 00:46:21,448 --> 00:46:23,379 "Well, how much inventory have you ordered this month?" 1048 00:46:25,310 --> 00:46:27,413 Remember, you ought to be placing orders 1049 00:46:27,448 --> 00:46:29,896 every single day, do not wait 1050 00:46:29,931 --> 00:46:32,275 for things to be restocked. 1051 00:46:32,310 --> 00:46:34,896 You order what is available to you every day. 1052 00:46:34,931 --> 00:46:36,827 Every dollar that we made, 1053 00:46:36,862 --> 00:46:40,413 they would tell us to reinvest it back into more clothes. 1054 00:46:40,448 --> 00:46:42,586 Order consistently to replenish 1055 00:46:42,620 --> 00:46:43,793 the sales that you're having. 1056 00:46:43,827 --> 00:46:45,931 Always felt more pressure to buy more merchandise. 1057 00:46:45,965 --> 00:46:47,793 They always told us, 1058 00:46:47,827 --> 00:46:49,758 "The more you have, the more you sell." 1059 00:46:49,793 --> 00:46:51,965 The more you buy, the more you sell. 1060 00:46:52,000 --> 00:46:53,517 Like, it's not ethical. 1061 00:46:53,551 --> 00:46:54,758 Look at your inventory, 1062 00:46:54,793 --> 00:46:56,068 analyze what you're selling, 1063 00:46:56,103 --> 00:46:59,517 analyze what season is coming, what you intend to sell 1064 00:46:59,551 --> 00:47:01,448 and order consistently 1065 00:47:01,482 --> 00:47:03,275 to sell consistently 1066 00:47:03,310 --> 00:47:04,517 so that your business 1067 00:47:04,551 --> 00:47:06,172 will consistently grow. 1068 00:47:06,206 --> 00:47:09,517 They're making money off every single box you order. 1069 00:47:09,551 --> 00:47:11,689 That's why they're telling you to order more boxes. 1070 00:47:12,551 --> 00:47:13,655 And you know what? 1071 00:47:13,689 --> 00:47:16,103 Maybe that was part of their plan for sending you, 1072 00:47:16,137 --> 00:47:20,137 you know, a box full of half of it is unsellable crap 1073 00:47:20,172 --> 00:47:23,034 because they know they're gonna just tell you, 1074 00:47:23,068 --> 00:47:25,965 "Oh, you couldn't sell half of it, order more." 1075 00:47:26,000 --> 00:47:27,896 So size medium Julia. 1076 00:47:27,931 --> 00:47:29,862 You can layer it, you can put a Lindsay over it, 1077 00:47:29,896 --> 00:47:31,034 you can put a Shirley over it, 1078 00:47:31,068 --> 00:47:32,448 you can put a Joy over it. 1079 00:47:32,482 --> 00:47:35,551 I was just consumed and obsessed with selling, 1080 00:47:35,586 --> 00:47:38,517 that was for sure. I just got the endorphins as soon as I had a sale. 1081 00:47:38,551 --> 00:47:41,827 Heart pink and a gold and it's kind of like an Aztec look to it. 1082 00:47:41,862 --> 00:47:44,379 So you have these pretty triangles. 1083 00:47:44,413 --> 00:47:46,965 Here's my sales for the day. I got to beat it tomorrow, 1084 00:47:47,000 --> 00:47:50,448 and I was just competing, I guess, with myself and just, 1085 00:47:50,482 --> 00:47:53,793 "Hey, you know, I sold 1,000 today. Let's do 1,500 tomorrow." 1086 00:47:53,827 --> 00:47:57,586 You have black, would be super cute wearing it with black leggings 1087 00:47:57,620 --> 00:47:59,137 and wearing this as a tunic. 1088 00:47:59,172 --> 00:48:01,862 I wanted to hit those top rankings, you know, 1089 00:48:01,896 --> 00:48:03,344 to show that I was a success. 1090 00:48:04,241 --> 00:48:05,275 Super pretty. 1091 00:48:05,310 --> 00:48:07,034 Someone can just rock this dress. 1092 00:48:07,068 --> 00:48:08,448 They train you to think this way. 1093 00:48:09,413 --> 00:48:10,413 They're so good at it. 1094 00:48:11,034 --> 00:48:12,793 Every single week. 1095 00:48:12,827 --> 00:48:15,103 You know, with the webinar and all of the trainings, 1096 00:48:15,137 --> 00:48:18,068 and they're encouraging, you know, go to the trainings. 1097 00:48:18,103 --> 00:48:19,517 This is where it's at. 1098 00:48:19,551 --> 00:48:22,068 This is where the excitement is created, 1099 00:48:22,103 --> 00:48:23,517 all of us coming together 1100 00:48:23,551 --> 00:48:26,862 and creating bigger, better businesses together. 1101 00:48:26,896 --> 00:48:28,551 It just went from like, 1102 00:48:28,586 --> 00:48:29,931 nice and calm 1103 00:48:29,965 --> 00:48:32,413 to very much high-paced job 1104 00:48:32,448 --> 00:48:34,344 that I had to keep up in. 1105 00:48:34,379 --> 00:48:36,206 'Cause if you don't keep up, you fail. 1106 00:48:36,241 --> 00:48:39,103 263, large royal blue. 1107 00:48:39,137 --> 00:48:42,413 1483, small black lace. Polka dots. 1108 00:48:42,448 --> 00:48:44,275 Like 16-hour days. 1109 00:48:44,310 --> 00:48:46,931 I would wake up and I had all these orders 1110 00:48:46,965 --> 00:48:48,793 that I saw immediately, as soon as I got up, 1111 00:48:48,827 --> 00:48:51,068 before I went to the bathroom, I would go pull orders. 1112 00:48:51,103 --> 00:48:54,034 We were like 24/7, all the time. 1113 00:48:54,068 --> 00:48:55,689 What's the next thing we can do? 1114 00:48:55,724 --> 00:48:58,000 I never felt like I could take a break. 1115 00:48:58,034 --> 00:48:59,000 I just had to keep going. 1116 00:49:03,862 --> 00:49:06,793 Day one, working for LuLaRoe was... 1117 00:49:06,827 --> 00:49:08,965 I would say, hit the ground running. 1118 00:49:09,000 --> 00:49:10,620 As a professional designer, 1119 00:49:10,655 --> 00:49:13,517 I understand that I'm not designing for myself, 1120 00:49:13,551 --> 00:49:15,068 I'm designing for the company, 1121 00:49:15,103 --> 00:49:16,758 and what they wanted was... 1122 00:49:17,448 --> 00:49:20,689 loud, busy, eye-catching. 1123 00:49:20,724 --> 00:49:23,620 Our main direction was just make it pop. 1124 00:49:29,965 --> 00:49:32,551 When you're working in production, there's always this balance 1125 00:49:32,586 --> 00:49:35,482 of quality and quantity, 1126 00:49:35,517 --> 00:49:36,931 and with LuLaRoe, it was like... 1127 00:49:39,137 --> 00:49:41,068 So we were given the task 1128 00:49:41,103 --> 00:49:43,655 by, Patrick, the head of design and production, 1129 00:49:43,689 --> 00:49:45,310 to design 1130 00:49:45,344 --> 00:49:46,724 a thousand prints, 1131 00:49:46,758 --> 00:49:48,586 in one day between 1132 00:49:49,310 --> 00:49:51,827 me and three other designers. 1133 00:49:51,862 --> 00:49:54,586 It would be open and existing print, 1134 00:49:55,379 --> 00:49:57,655 change of color, save it. 1135 00:49:57,689 --> 00:50:00,137 Put stripes over it, save it. 1136 00:50:00,172 --> 00:50:02,827 Put the stripes in the background, save it. 1137 00:50:02,862 --> 00:50:04,000 Open another pattern, 1138 00:50:05,034 --> 00:50:06,620 put it over the existing pattern 1139 00:50:06,655 --> 00:50:10,000 to make this unholy mash up of two patterns. 1140 00:50:10,758 --> 00:50:11,965 You know, does it look good? 1141 00:50:12,482 --> 00:50:14,827 No. Save it. 1142 00:50:14,862 --> 00:50:17,758 It was a stressful environment. 1143 00:50:17,793 --> 00:50:20,482 By the end of the day, Patrick would have a thousand patterns 1144 00:50:20,517 --> 00:50:25,068 to choose from, and how many actually made it to production, 1145 00:50:25,586 --> 00:50:26,689 I have no idea. 1146 00:50:28,586 --> 00:50:30,000 The evidence. 1147 00:50:32,931 --> 00:50:34,620 Oh, boy. 1148 00:50:34,655 --> 00:50:36,137 They stopped producing 1149 00:50:36,172 --> 00:50:39,034 the inventory that I joined for. 1150 00:50:39,068 --> 00:50:42,275 I don't want print overlay over print overlay. 1151 00:50:42,310 --> 00:50:43,827 The yuck colors, 1152 00:50:43,862 --> 00:50:48,137 the oranges, the weird shades of mustard, stripes, 1153 00:50:48,172 --> 00:50:50,344 ugly flowers. 1154 00:50:50,379 --> 00:50:52,896 A jaguar, a bear. 1155 00:50:52,931 --> 00:50:55,931 None of them appearing from the crotch. 1156 00:50:55,965 --> 00:50:57,000 So, that's good. 1157 00:50:59,310 --> 00:51:00,793 Uh, lot of shapes. 1158 00:51:00,827 --> 00:51:03,482 A pattern layered on top of a pattern. 1159 00:51:05,689 --> 00:51:07,551 God! There's just so many of them. 1160 00:51:07,586 --> 00:51:08,896 Here she is. 1161 00:51:08,931 --> 00:51:11,137 We're like, "Okay." 1162 00:51:12,724 --> 00:51:14,862 There were some questionable prints. 1163 00:51:14,896 --> 00:51:17,827 You know, they put the... the designer, Patrick. 1164 00:51:17,862 --> 00:51:20,344 They put DeAnne, Mark on a pair of leggings, 1165 00:51:20,379 --> 00:51:22,655 like we had actual clothes with their faces on it. 1166 00:51:23,517 --> 00:51:25,689 Uh, it was just strange. 1167 00:51:28,413 --> 00:51:31,068 This one, I designed the ghost. 1168 00:51:31,862 --> 00:51:34,206 Owl eyes, peacock feathers, 1169 00:51:34,724 --> 00:51:36,379 tribal, ethnic. 1170 00:51:36,413 --> 00:51:37,482 I don't know. 1171 00:51:37,517 --> 00:51:39,137 We get the boxes. We open it up. 1172 00:51:39,862 --> 00:51:40,862 And it was like, 1173 00:51:42,689 --> 00:51:44,310 "What the hell is this?" 1174 00:51:50,620 --> 00:51:52,862 All of the color vomit 1175 00:51:52,896 --> 00:51:54,827 you could put on fabric 1176 00:51:54,862 --> 00:51:57,241 encapsulated in these brown boxes. 1177 00:51:57,758 --> 00:51:59,724 We were horrified. 1178 00:51:59,758 --> 00:52:02,206 No one in the fucking world 1179 00:52:02,241 --> 00:52:03,896 wants to wear leggings 1180 00:52:03,931 --> 00:52:05,586 that feature a bee 1181 00:52:05,620 --> 00:52:07,793 crawling up your cooch. 1182 00:52:09,275 --> 00:52:12,517 Oh, my God! That bee is gonna sting your big pink pearl. 1183 00:52:18,793 --> 00:52:19,896 No. 1184 00:52:25,137 --> 00:52:27,379 Blake is my 22-year-old son. 1185 00:52:28,758 --> 00:52:30,724 And he signed up 1186 00:52:30,758 --> 00:52:33,482 to sell LuLaRoe under me and... 1187 00:52:35,241 --> 00:52:36,896 I wish I could have talked him out of it. 1188 00:52:36,931 --> 00:52:37,931 His onboarding package 1189 00:52:37,965 --> 00:52:40,793 was horrendous. 1190 00:52:41,655 --> 00:52:43,275 The worst I'd ever seen. 1191 00:52:43,310 --> 00:52:45,586 Okay, any other... anything else we can show? 1192 00:52:45,620 --> 00:52:47,448 We have just so much, 1193 00:52:47,482 --> 00:52:50,620 - so much. - Here's your number... number 17. 1194 00:52:50,655 --> 00:52:52,620 And so this is number 30 right here. 1195 00:52:52,655 --> 00:52:54,620 It's pretty green one. 1196 00:52:54,655 --> 00:52:56,862 I just remember trying to pattern mix 1197 00:52:56,896 --> 00:52:58,793 and put this with like a striped shirt 1198 00:52:58,827 --> 00:53:02,620 and just thinking, "This is the ugliest thing I've ever seen, 1199 00:53:02,655 --> 00:53:03,931 but I've gotta sell it." 1200 00:53:03,965 --> 00:53:05,000 I think it's, 1201 00:53:05,689 --> 00:53:07,206 I think it's gorgeous. 1202 00:53:07,241 --> 00:53:09,172 And this one, which is going to be the gray sleeves 1203 00:53:09,206 --> 00:53:11,551 with a really pretty dark blue background 1204 00:53:11,586 --> 00:53:13,206 with pinks, purples, corals. 1205 00:53:13,241 --> 00:53:16,034 When I saw that box, I actually called home office 1206 00:53:16,068 --> 00:53:17,620 and said, 1207 00:53:17,655 --> 00:53:20,448 "Do you understand what you just sent my recruit"? 1208 00:53:20,482 --> 00:53:22,448 I wasn't trying to make it my son. I'm like, 1209 00:53:22,482 --> 00:53:24,517 "Do you understand his onboarding package? 1210 00:53:24,551 --> 00:53:27,827 Like, I've been in here for three years. I couldn't sell that." 1211 00:53:27,862 --> 00:53:31,275 Gray with... tigers. 1212 00:53:31,310 --> 00:53:32,724 Like, with black tigers on them. 1213 00:53:32,758 --> 00:53:34,827 Number 1404. This is an extra small. 1214 00:53:34,862 --> 00:53:36,344 I always remember her saying, 1215 00:53:36,379 --> 00:53:38,344 "This isn't good stuff. We've gotta get it returned." 1216 00:53:38,379 --> 00:53:40,517 I have this one which is so gorgeous black background, 1217 00:53:40,551 --> 00:53:42,206 there's really gorgeous flowers 1218 00:53:42,241 --> 00:53:43,724 on there, golden flowers. 1219 00:53:43,758 --> 00:53:45,448 And I just remember thinking, "I've got to do it. 1220 00:53:45,482 --> 00:53:47,310 I've gotta push it. I can do this." 1221 00:53:47,344 --> 00:53:49,172 And then, I remember my first live, 1222 00:53:49,655 --> 00:53:50,758 I sold a pair, 1223 00:53:50,793 --> 00:53:52,758 and I've sold my very first shirt, 1224 00:53:52,793 --> 00:53:54,310 and I remember just looking to her 1225 00:53:54,344 --> 00:53:56,793 and being like, "Yes, I did it, I can do this." 1226 00:53:56,827 --> 00:53:59,379 And then I'm pretty sure I sold one other piece that live. 1227 00:53:59,413 --> 00:54:00,689 And then from there, I would do lives 1228 00:54:00,724 --> 00:54:02,275 and not sell anything. 1229 00:54:02,310 --> 00:54:04,034 And then from there, about six or eight months later, 1230 00:54:04,068 --> 00:54:06,241 I just kind of tapered off and they went into a box 1231 00:54:06,275 --> 00:54:07,275 and I never sold them again. 1232 00:54:08,448 --> 00:54:10,965 You can't go overnight, 1233 00:54:11,896 --> 00:54:13,241 you know, making 1234 00:54:13,275 --> 00:54:16,758 clothing for a few thousand people, 1235 00:54:17,310 --> 00:54:18,931 to making boxes 1236 00:54:18,965 --> 00:54:21,103 full of clothing for 80,000 people. 1237 00:54:22,034 --> 00:54:23,758 You have to cut corners somewhere. 1238 00:54:32,862 --> 00:54:34,586 It was madness over here. 1239 00:54:34,620 --> 00:54:37,620 They ship, receive everything here. 1240 00:54:37,655 --> 00:54:39,724 That's where they would park right there, all the Mercedes, 1241 00:54:39,758 --> 00:54:40,965 all their flashy cars. 1242 00:54:41,896 --> 00:54:43,413 I was working at LuLaRoe 1243 00:54:43,448 --> 00:54:46,000 from March of 2016 1244 00:54:46,034 --> 00:54:48,862 to January of 2017. 1245 00:54:48,896 --> 00:54:51,517 For what amount we were gonna do on a day, I was like 1246 00:54:51,551 --> 00:54:54,241 15 million, 12 million in a day. 1247 00:54:54,275 --> 00:54:56,172 Okay, walking, walking, walking. 1248 00:54:56,206 --> 00:54:57,793 This is what it looks like. 1249 00:54:57,827 --> 00:54:59,586 Leggings, leggings and leggings. 1250 00:54:59,620 --> 00:55:00,965 More leggings. 1251 00:55:01,000 --> 00:55:02,448 It's like, get busy. 1252 00:55:02,482 --> 00:55:04,310 Everybody, start selling. 1253 00:55:04,344 --> 00:55:06,482 We can go see where they have their moldy clothes at. 1254 00:55:10,827 --> 00:55:12,793 The warehouse was full. 1255 00:55:12,827 --> 00:55:14,586 It was packed to the brim. 1256 00:55:14,620 --> 00:55:18,517 And somebody decided to put... start putting clothes outside. 1257 00:55:18,551 --> 00:55:20,724 One night, like it started to drizzle, 1258 00:55:20,758 --> 00:55:22,793 and the next day, sunny. 1259 00:55:22,827 --> 00:55:24,620 And then as time went on, 1260 00:55:24,655 --> 00:55:28,000 nobody really noticed like the molding yet. 1261 00:55:28,034 --> 00:55:31,793 And yeah, starting to get into the... to get shipped out. 1262 00:55:34,965 --> 00:55:36,103 Thousands. 1263 00:55:38,206 --> 00:55:39,517 Yeah, it's a lot of clothes. 1264 00:55:42,724 --> 00:55:47,413 I'm sorry. Y'all just taking on the tour of the LuLaRoe, uh... 1265 00:55:52,137 --> 00:55:53,689 All right, we're taking off, man. 1266 00:55:57,344 --> 00:55:58,620 Why is he so angry? 1267 00:56:03,724 --> 00:56:05,758 When people describe 1268 00:56:05,793 --> 00:56:08,862 MLMs to you, they'll draw you a pyramid, 1269 00:56:08,896 --> 00:56:11,206 and at the bottom of the pyramid, 1270 00:56:11,241 --> 00:56:13,068 like the visible base, 1271 00:56:13,103 --> 00:56:15,586 um, you see just more retailers, right? 1272 00:56:15,620 --> 00:56:17,379 Like that's a line of retailers. 1273 00:56:17,413 --> 00:56:20,000 But I think there's an invisible face 1274 00:56:20,034 --> 00:56:22,758 that gets left out of all of those graphics, 1275 00:56:22,793 --> 00:56:24,827 and that's made up of all the people 1276 00:56:24,862 --> 00:56:26,482 who are making the products 1277 00:56:26,517 --> 00:56:28,137 that all the retailers are selling. 1278 00:56:43,034 --> 00:56:44,655 The people at the very bottom of the LuLaRoe 1279 00:56:44,689 --> 00:56:47,586 pyramid are not white Christian stay-at-home moms. 1280 00:56:47,620 --> 00:56:49,827 Um, they're the people making the leggings. 1281 00:57:21,172 --> 00:57:22,965 And let me show you what I got, 1282 00:57:23,000 --> 00:57:24,344 because it's a piece of crap. 1283 00:57:24,379 --> 00:57:26,068 She's fighting mad. 1284 00:57:26,103 --> 00:57:28,862 She is just one of thousands of women complaining 1285 00:57:28,896 --> 00:57:30,965 about the super soft leggings they purchased, 1286 00:57:31,000 --> 00:57:33,379 only to discover they have holes. 1287 00:57:33,413 --> 00:57:34,862 They're ripping, um, they're 1288 00:57:34,896 --> 00:57:36,103 wearing them for a few hours, 1289 00:57:36,137 --> 00:57:37,965 they're wearing them for a few minutes and finding holes 1290 00:57:38,000 --> 00:57:39,827 and large, substantial tears. 1291 00:57:39,862 --> 00:57:42,172 Christina Hinks used to sell the leggings. 1292 00:57:42,206 --> 00:57:45,551 She showed me a pair that an angry customer returned to her. 1293 00:57:48,448 --> 00:57:50,482 I remember like my third, 1294 00:57:50,517 --> 00:57:52,000 third or fourth order, 1295 00:57:52,034 --> 00:57:54,482 getting the ever-coveted black. 1296 00:57:54,517 --> 00:57:56,413 Solid black leggings. 1297 00:57:56,448 --> 00:57:58,517 And I was like, "Well, shit, 1298 00:57:58,551 --> 00:58:00,137 I'm gonna keep one of these for me," you know. 1299 00:58:00,172 --> 00:58:01,689 The day that I wore them, 1300 00:58:01,724 --> 00:58:02,931 I fell asleep on my couch. 1301 00:58:04,034 --> 00:58:06,586 I was woken up a few hours later by the baby crying, 1302 00:58:06,620 --> 00:58:08,931 and I got up and my husband's cackling. 1303 00:58:09,482 --> 00:58:10,482 Cackling. 1304 00:58:11,068 --> 00:58:12,275 "What's funny?" 1305 00:58:12,310 --> 00:58:15,068 He's like, "Christina, your ass looks like Swiss cheese." 1306 00:58:15,103 --> 00:58:16,620 Went into the bathroom, took my pants off, 1307 00:58:16,655 --> 00:58:18,620 and you could put your whole hand 1308 00:58:18,655 --> 00:58:21,724 through the holes in my left butt cheek. 1309 00:58:21,758 --> 00:58:23,448 And I said, "Okay, it must be a fluke." 1310 00:58:23,482 --> 00:58:24,724 So, I pulled the second pair out 1311 00:58:25,517 --> 00:58:27,551 and I put them on. Same thing. 1312 00:58:28,310 --> 00:58:29,413 I was pissed. 1313 00:58:29,448 --> 00:58:30,551 That's when I started digging. 1314 00:58:30,586 --> 00:58:32,586 That's when I started reaching out to people. 1315 00:58:33,310 --> 00:58:35,551 MommyGyver was a blog 1316 00:58:35,586 --> 00:58:39,103 that I created to sort of empower women 1317 00:58:39,137 --> 00:58:40,310 to do their own things, 1318 00:58:42,379 --> 00:58:43,724 like MacGyver, 1319 00:58:43,758 --> 00:58:45,793 who could turn anything into anything. 1320 00:58:53,172 --> 00:58:54,275 So I had started 1321 00:58:54,310 --> 00:58:56,344 writing MommyGyver around, um, 1322 00:58:56,379 --> 00:58:57,586 May and June 1323 00:58:57,620 --> 00:58:59,965 of the... of 2016-ish. 1324 00:59:00,000 --> 00:59:04,034 And I really started writing about LuLaRoe. 1325 00:59:04,068 --> 00:59:06,655 I think the first post I made was in December. 1326 00:59:06,689 --> 00:59:07,862 When I first started writing, 1327 00:59:07,896 --> 00:59:09,379 nobody wanted to cover it. 1328 00:59:09,413 --> 00:59:11,103 It wasn't a big enough dumpster fire 1329 00:59:11,137 --> 00:59:12,586 for them to see the fire 1330 00:59:12,620 --> 00:59:14,206 from way high up. 1331 00:59:14,241 --> 00:59:16,000 And I felt obligated. 1332 00:59:16,034 --> 00:59:18,689 I felt like I had to say something 1333 00:59:18,724 --> 00:59:20,000 because if I didn't, who would? 1334 00:59:22,103 --> 00:59:24,862 All of these, these women were sending me messages. 1335 00:59:24,896 --> 00:59:26,310 This particular consultant 1336 00:59:26,344 --> 00:59:28,034 was baited to onboard with the understanding 1337 00:59:28,068 --> 00:59:30,965 that it would only take her 20 hours a week to make full-time pay. 1338 00:59:31,000 --> 00:59:32,448 She states that, um, 1339 00:59:32,482 --> 00:59:34,344 she learned very quickly it's not a part-time job, 1340 00:59:34,379 --> 00:59:36,517 and even exceeded full-time hours, 1341 00:59:36,551 --> 00:59:38,275 as was my experience. 1342 00:59:38,310 --> 00:59:39,793 As I started digging through 1343 00:59:39,827 --> 00:59:41,965 and as I started going higher up and higher up 1344 00:59:42,000 --> 00:59:44,034 and into their close circles, 1345 00:59:44,068 --> 00:59:46,689 I was finding leaders telling people 1346 00:59:46,724 --> 00:59:49,310 how to get other women to buy in. 1347 00:59:49,344 --> 00:59:54,000 Know most people don't have $5,000, $10,000 at their disposal, 1348 00:59:54,034 --> 00:59:55,344 but that's okay. 1349 00:59:55,379 --> 00:59:58,586 They can take that credit card with $5,000 or $10,000 maximum 1350 00:59:58,620 --> 00:59:59,862 and they can max it out. 1351 00:59:59,896 --> 01:00:02,689 My sponsor initially had suggested to me maybe 1352 01:00:02,724 --> 01:00:07,172 that I try, um, crowd funding. 1353 01:00:07,206 --> 01:00:11,965 In the end, to come up with a last little bit, um, 1354 01:00:12,000 --> 01:00:14,103 we ended up not paying some bills. 1355 01:00:14,137 --> 01:00:16,034 At one point, there was a document given to me 1356 01:00:16,068 --> 01:00:19,517 where it was created by a top consultant, 1357 01:00:19,551 --> 01:00:22,103 and it was how to come up with the money. 1358 01:00:22,137 --> 01:00:24,379 Um, ask you friends and family for a loan. 1359 01:00:24,413 --> 01:00:26,689 Borrow from your children's college fund. 1360 01:00:26,724 --> 01:00:28,448 You can get a loan. You can get... 1361 01:00:28,482 --> 01:00:32,620 Um, use credit cards, you can use, um, money from family. 1362 01:00:32,655 --> 01:00:35,172 You can sell stuff that you already own. 1363 01:00:35,206 --> 01:00:38,724 Um, so there's lots of ways that you can raise that money. 1364 01:00:38,758 --> 01:00:42,379 I started hearing that women were... were, following me 1365 01:00:42,413 --> 01:00:45,862 and they were waiting for the next article to come out. 1366 01:00:45,896 --> 01:00:48,862 As I started getting more popular in my blog, 1367 01:00:48,896 --> 01:00:49,965 I was getting death threats. 1368 01:00:50,000 --> 01:00:51,310 People were showing up on my doorstep. 1369 01:00:51,344 --> 01:00:52,758 I was getting hate mail. 1370 01:00:52,793 --> 01:00:54,793 I was not expecting 1371 01:00:54,827 --> 01:00:58,344 MommyGyver to become as famous/infamous as it was. 1372 01:01:01,137 --> 01:01:03,551 So are you guys blocking the trolls? 1373 01:01:03,586 --> 01:01:04,862 That would be awesome. 1374 01:01:05,413 --> 01:01:06,689 Um, so make sure 1375 01:01:06,724 --> 01:01:09,103 that you do because it would make me so happy. 1376 01:01:13,965 --> 01:01:17,241 There were retailers on every corner, you know. 1377 01:01:17,275 --> 01:01:20,034 I mean, it was really highly doubtful that we would all succeed. 1378 01:01:22,241 --> 01:01:24,827 My next door neighbor was a retailer 1379 01:01:24,862 --> 01:01:25,896 in our apartment. 1380 01:01:25,931 --> 01:01:28,068 I was here. She was here. 1381 01:01:28,103 --> 01:01:31,172 And it was crazy, we all both had our LuLaRoe rooms. 1382 01:01:32,206 --> 01:01:33,793 Everywhere you turn, 1383 01:01:33,827 --> 01:01:36,275 there was somebody, I mean, you go to the mall, 1384 01:01:36,310 --> 01:01:38,448 you run into somebody selling LuLaRoe, 1385 01:01:38,482 --> 01:01:39,896 wearing it or something like that. 1386 01:01:43,586 --> 01:01:46,068 I made about 60 grand 1387 01:01:46,103 --> 01:01:48,241 in that first, within that first year. 1388 01:01:48,275 --> 01:01:49,724 And I just took that money 1389 01:01:49,758 --> 01:01:51,206 and just threw it back in there. 1390 01:01:51,241 --> 01:01:53,103 This dress right here cost me. 1391 01:01:53,137 --> 01:01:55,724 I paid $30 for this, $30. 1392 01:01:55,758 --> 01:01:57,862 I'm lucky to get probably $10 for it now. 1393 01:01:58,724 --> 01:02:00,379 And at certain point, 1394 01:02:00,413 --> 01:02:03,793 I was spending more than I was bringing in. 1395 01:02:03,827 --> 01:02:06,689 I have boxes in that corner right there, 1396 01:02:06,724 --> 01:02:09,965 and I have these pink bags full of LuLaRoe. 1397 01:02:10,000 --> 01:02:12,758 This is all left. This is all what I have left. 1398 01:02:14,137 --> 01:02:16,379 I really had enough inventory. 1399 01:02:16,413 --> 01:02:17,620 I really did, 1400 01:02:17,655 --> 01:02:19,965 but I bought more things. 1401 01:02:20,000 --> 01:02:21,896 That's what gets you more in trouble. 1402 01:02:21,931 --> 01:02:23,931 I was telling somebody recently. 1403 01:02:23,965 --> 01:02:25,827 If you wanna... what I paid, 1404 01:02:26,620 --> 01:02:28,758 we're talking at least 20 grand. 1405 01:02:28,793 --> 01:02:30,862 Wow! -$20,000 right here. 1406 01:02:30,896 --> 01:02:33,482 Wow. - 20,000, 25,000 right here. 1407 01:02:36,172 --> 01:02:38,413 Sales just started to drop like almost 1408 01:02:38,448 --> 01:02:39,620 half each month. 1409 01:02:39,655 --> 01:02:42,965 So, let's say June, I did 16,000. 1410 01:02:43,000 --> 01:02:44,448 The next month would have been, 1411 01:02:44,482 --> 01:02:45,896 you know, 12,000, 1412 01:02:45,931 --> 01:02:49,413 then 10,000, then 8,000, then 4,000. 1413 01:02:49,448 --> 01:02:50,965 And by January 2018 1414 01:02:51,000 --> 01:02:53,793 I only sold a thousand dollars. 1415 01:02:53,827 --> 01:02:56,068 And I just felt I needed to have new inventory. 1416 01:02:56,103 --> 01:02:58,103 What I had was not selling. 1417 01:02:58,137 --> 01:03:01,034 I can only create so many outfits with what I had. 1418 01:03:01,068 --> 01:03:04,068 So I actually took out loans 1419 01:03:04,103 --> 01:03:05,758 to buy more inventory. 1420 01:03:06,724 --> 01:03:07,965 My house was 1421 01:03:08,000 --> 01:03:11,034 more LuLaRoe than it was honestly house. 1422 01:03:11,068 --> 01:03:13,137 Inventory all over the front room 1423 01:03:13,172 --> 01:03:15,344 and the sitting room and the dining room. 1424 01:03:16,068 --> 01:03:17,758 Everywhere. 1425 01:03:17,793 --> 01:03:20,000 There's stuff that goes on in our brains 1426 01:03:20,034 --> 01:03:22,310 that is totally natural. 1427 01:03:22,344 --> 01:03:25,068 They are defense mechanisms. They keep us alive. 1428 01:03:25,103 --> 01:03:26,965 We all have this, um, 1429 01:03:27,000 --> 01:03:30,000 cognitive bias called loss aversion, 1430 01:03:30,034 --> 01:03:32,379 which basically means 1431 01:03:32,413 --> 01:03:34,379 that we feel losses 1432 01:03:34,413 --> 01:03:36,379 a lot more deeply and more strongly 1433 01:03:36,413 --> 01:03:37,862 than we feel gains. 1434 01:03:37,896 --> 01:03:39,379 There's a lot of tricks we play on ourselves 1435 01:03:39,413 --> 01:03:41,827 to like, not feel like a loser. 1436 01:03:41,862 --> 01:03:44,896 There's another thing called honoring sunk costs, 1437 01:03:44,931 --> 01:03:47,586 and that is throwing good money after bad. 1438 01:03:47,620 --> 01:03:49,482 So, the more money you put into your MLM, 1439 01:03:49,517 --> 01:03:51,620 the more you're losing, the more you're thinking, 1440 01:03:51,655 --> 01:03:53,034 "It's an investment." 1441 01:03:53,068 --> 01:03:55,344 "I know I'm already $10,000 in debt 1442 01:03:55,379 --> 01:03:56,517 and my husband doesn't know, 1443 01:03:56,551 --> 01:03:58,241 and our garage is full of leggings, 1444 01:03:58,275 --> 01:04:01,551 and I can't quit now. 1445 01:04:01,586 --> 01:04:04,103 You know, I can't just walk away with that kind of debt. 1446 01:04:04,137 --> 01:04:05,310 I have to keep trying." 1447 01:04:05,344 --> 01:04:08,034 With LuLaRoe, there's no safety net. 1448 01:04:08,068 --> 01:04:10,137 There's nothing to save you when your, 1449 01:04:10,172 --> 01:04:11,758 when your business goes wrong, 1450 01:04:11,793 --> 01:04:13,620 because you aren't a business. 1451 01:04:13,655 --> 01:04:14,793 You're... 1452 01:04:16,000 --> 01:04:17,896 you're a retailer 1453 01:04:18,655 --> 01:04:19,758 for another company. 1454 01:04:19,793 --> 01:04:21,862 And if they fail, they'll get protected. 1455 01:04:21,896 --> 01:04:23,000 But you are ass out. 1456 01:04:23,896 --> 01:04:25,793 Oh, my gosh, there's so many large. 1457 01:04:25,827 --> 01:04:29,620 1446, white with the black. 1458 01:04:29,655 --> 01:04:32,137 I was in a jam. I couldn't pay any of my bills. 1459 01:04:32,172 --> 01:04:33,448 We were behind on the house payment, 1460 01:04:34,137 --> 01:04:35,413 plus we had 11 kids. 1461 01:04:35,448 --> 01:04:38,482 So, it... it was just had become desperation. 1462 01:04:38,517 --> 01:04:40,724 I pretty much hit rock bottom and said I can't. 1463 01:04:41,758 --> 01:04:42,931 I went live with my closet 1464 01:04:43,517 --> 01:04:44,896 because I had so much, 1465 01:04:45,310 --> 01:04:46,758 so much, 1466 01:04:46,793 --> 01:04:48,793 and I still hadn't told my customers yet. 1467 01:04:49,655 --> 01:04:51,827 And I just held up this dress 1468 01:04:51,862 --> 01:04:54,206 and I was like, "All right, this is a sweater Carly, 1469 01:04:54,241 --> 01:04:56,551 it's super rare, it's a unicorn." 1470 01:04:56,586 --> 01:04:58,448 Um, and then I just start crying. 1471 01:04:59,862 --> 01:05:02,310 Once the tears started, I couldn't get them to stop. 1472 01:05:04,068 --> 01:05:07,448 And I just told them, you know, "This is it." 1473 01:05:07,482 --> 01:05:09,206 I already knew I was gonna have to file 1474 01:05:09,241 --> 01:05:11,206 for bankruptcy. There is no way. 1475 01:05:11,241 --> 01:05:14,034 I knew I owed so much in taxes. 1476 01:05:15,379 --> 01:05:17,206 This is where I go to make my monthly 1477 01:05:17,827 --> 01:05:18,827 bankruptcy payment, 1478 01:05:19,310 --> 01:05:21,137 715 basically. 1479 01:05:22,241 --> 01:05:24,034 I'm in a five-year bankruptcy, 1480 01:05:24,068 --> 01:05:26,482 so overall I'll be paying 1481 01:05:26,517 --> 01:05:28,206 a little over $40,000 1482 01:05:28,241 --> 01:05:29,862 with all the fees and everything. 1483 01:05:29,896 --> 01:05:31,344 The lawyer fees and all. 1484 01:05:33,517 --> 01:05:35,620 I'll be honest with you, I thought about suicide 1485 01:05:35,655 --> 01:05:36,827 when all this was happening, 1486 01:05:36,862 --> 01:05:39,448 and just... just to get out of that 1487 01:05:39,482 --> 01:05:41,310 after hitting rock bottom, so. 1488 01:05:45,137 --> 01:05:46,103 I, um, 1489 01:05:47,172 --> 01:05:49,103 have crazy anxiety now 1490 01:05:49,137 --> 01:05:50,448 that I didn't have before. 1491 01:05:50,482 --> 01:05:52,000 I felt like a failure. 1492 01:05:52,034 --> 01:05:54,000 I put myself in debt, 1493 01:05:54,034 --> 01:05:56,827 and I had no way to pay it off. 1494 01:05:56,862 --> 01:05:59,103 Still tens of thousands in debt 1495 01:05:59,137 --> 01:06:01,689 to this day that I still haven't managed to pay off. 1496 01:06:11,620 --> 01:06:13,896 So you know the story of Red Riding Hood, 1497 01:06:13,931 --> 01:06:15,310 how she went through the forest 1498 01:06:15,344 --> 01:06:16,379 to visit her grandmother 1499 01:06:16,413 --> 01:06:19,586 and the wolf had eaten her grandmother. 1500 01:06:21,034 --> 01:06:23,000 And the whole time she's like, "Wow. 1501 01:06:24,413 --> 01:06:26,137 Grandma, you're acting kind of weird. 1502 01:06:26,172 --> 01:06:27,655 Grandma, your nose is a little different. 1503 01:06:28,724 --> 01:06:30,172 Holy crap, grandma, you're eating me. 1504 01:06:30,206 --> 01:06:31,724 You're not really grandma, you're a wolf." 1505 01:06:32,517 --> 01:06:33,862 That's what LuLaRoe was. 1506 01:06:33,896 --> 01:06:35,551 It was innocuous, 1507 01:06:36,000 --> 01:06:37,827 genuine, real, 1508 01:06:37,862 --> 01:06:41,137 love, emotion, comfort. 1509 01:06:41,172 --> 01:06:43,551 "Just kidding. We're gonna eat you alive." 1510 01:06:44,586 --> 01:06:46,827 What happens to people in MLMs, 1511 01:06:46,862 --> 01:06:49,379 and I've done interventions to get people out 1512 01:06:49,413 --> 01:06:51,034 of multi-level marketing schemes 1513 01:06:51,586 --> 01:06:53,310 is they get hurt, 1514 01:06:53,344 --> 01:06:55,068 and they could be bankrupted, 1515 01:06:55,103 --> 01:06:57,655 their marriage could end, they become estranged 1516 01:06:57,689 --> 01:06:59,827 from family and old friends. 1517 01:06:59,862 --> 01:07:02,103 People can be devastated. 1518 01:07:02,137 --> 01:07:05,034 I mean, how do you get people to buy into something 1519 01:07:05,068 --> 01:07:07,413 that is not in their own best interest? 1520 01:07:07,448 --> 01:07:10,068 And the answer is you manipulate them 1521 01:07:10,103 --> 01:07:12,965 in a kind of cult-like manner. 1522 01:07:13,000 --> 01:07:15,241 When I decided it was no longer for me, 1523 01:07:16,241 --> 01:07:18,413 everyone that was above me 1524 01:07:18,448 --> 01:07:19,620 stopped talking to me. 1525 01:07:19,655 --> 01:07:22,586 I didn't want my upline to be mad that I was leaving 1526 01:07:22,620 --> 01:07:24,896 because I know it would affect their bonus checks. 1527 01:07:24,931 --> 01:07:27,275 It was hard for me to let go. 1528 01:07:27,310 --> 01:07:30,206 Um, it was hard for me to admit failure. 1529 01:07:32,068 --> 01:07:34,862 I've talked to ex-MLM sources 1530 01:07:34,896 --> 01:07:37,241 who described the process of leaving 1531 01:07:37,275 --> 01:07:39,965 as psychological warfare, 1532 01:07:40,000 --> 01:07:43,103 who found that the moment that they expressed 1533 01:07:43,137 --> 01:07:44,413 that they didn't wanna be involved 1534 01:07:44,448 --> 01:07:45,862 with this group anymore, 1535 01:07:45,896 --> 01:07:47,896 they were dropped like trash. 1536 01:07:47,931 --> 01:07:49,482 That's the thing that lets you know 1537 01:07:49,517 --> 01:07:51,586 this is a destructive, cultish group, 1538 01:07:51,620 --> 01:07:53,620 when leaving comes 1539 01:07:53,655 --> 01:07:56,620 with these major consequences. 1540 01:07:58,275 --> 01:08:00,827 I was never making any money. 1541 01:08:00,862 --> 01:08:04,482 I stuck it out as long as I could, and fall of 18, 1542 01:08:04,517 --> 01:08:06,379 that was it. 1543 01:08:06,413 --> 01:08:09,000 I just kind of dropped off the LuLaRoe world. 1544 01:08:10,413 --> 01:08:11,793 Said, "I don't want to do this anymore." 1545 01:08:12,965 --> 01:08:14,448 And it's lonely 1546 01:08:14,482 --> 01:08:15,896 when that happens to you, 1547 01:08:15,931 --> 01:08:17,655 because you don't have anything else in your life 1548 01:08:17,689 --> 01:08:19,103 except for LuLaRoe, and now you have 1549 01:08:19,137 --> 01:08:21,310 to rebuild it all over again. 1550 01:08:21,344 --> 01:08:24,103 LuLaRoe convinced us that we were in something, 1551 01:08:24,137 --> 01:08:27,689 you know, super popular and we were super important, 1552 01:08:27,724 --> 01:08:28,965 and you just kind of 1553 01:08:29,517 --> 01:08:31,965 fell into acting like it 1554 01:08:32,724 --> 01:08:33,724 and believing it. 1555 01:08:35,896 --> 01:08:40,000 And that's why I look back on it feeling so cultish. 1556 01:08:40,034 --> 01:08:42,310 You are not selling clothes. 1557 01:08:42,344 --> 01:08:45,793 You are giving people freedom, you are giving people life, 1558 01:08:45,827 --> 01:08:46,931 you are giving people hope, 1559 01:08:46,965 --> 01:08:48,965 you are giving people confidence. 1560 01:08:49,000 --> 01:08:50,620 Is LuLaRoe a cult? 1561 01:08:50,655 --> 01:08:52,379 I would have to say, 1562 01:08:54,413 --> 01:08:57,310 I just can't think of anything else 1563 01:08:57,344 --> 01:09:01,275 that makes people quite that dedicated. 1564 01:09:01,310 --> 01:09:02,827 Think about all the great things. 1565 01:09:02,862 --> 01:09:04,517 Think about the positive things, 1566 01:09:04,551 --> 01:09:05,931 not the negative things. 1567 01:09:05,965 --> 01:09:07,931 I would be up until four o'clock in the morning, 1568 01:09:07,965 --> 01:09:09,034 almost every night. 1569 01:09:09,068 --> 01:09:11,586 My kids saw way less of me after I started. 1570 01:09:11,620 --> 01:09:13,413 I don't think I ever slept. 1571 01:09:13,448 --> 01:09:15,103 There's no work-life balance. 1572 01:09:15,137 --> 01:09:17,379 You know, you're putting all of your finances into it. 1573 01:09:17,413 --> 01:09:19,724 You've alienated your friends and family. 1574 01:09:19,758 --> 01:09:21,586 I just can't think of anything else 1575 01:09:22,241 --> 01:09:24,379 to call it. 1576 01:09:24,413 --> 01:09:27,620 When I left, I was a mess. I was a hot mess. 1577 01:09:27,655 --> 01:09:29,862 I was in hook, line and sinker. 1578 01:09:29,896 --> 01:09:32,241 I believed all of it, and I don't think 1579 01:09:32,275 --> 01:09:33,896 that they went into it 1580 01:09:33,931 --> 01:09:36,103 to create it to be a cult. 1581 01:09:36,137 --> 01:09:38,206 But from my experience, it was. 1582 01:09:39,793 --> 01:09:41,413 Especially when I went to leave. 1583 01:09:42,724 --> 01:09:44,172 That was a struggle. 1584 01:09:44,206 --> 01:09:45,827 You quickly learned who your friends were 1585 01:09:45,862 --> 01:09:46,931 and who they weren't. 1586 01:09:48,793 --> 01:09:50,206 They had no need for me anymore. 1587 01:09:51,931 --> 01:09:53,379 Looking back on it now, I'm... 1588 01:09:54,620 --> 01:09:56,758 I'm shocked that I 1589 01:09:56,793 --> 01:09:58,758 drank that much Kool-Aid. 1590 01:09:58,793 --> 01:10:01,275 You're basically, like, marked as a suppressive person 1591 01:10:01,310 --> 01:10:03,517 and you're hurting their business by leaving 1592 01:10:03,551 --> 01:10:05,275 and by telling your truth. 1593 01:10:05,310 --> 01:10:07,379 So I just shut up and I left 1594 01:10:07,413 --> 01:10:09,620 and I refused to talk about it until now. 1595 01:10:09,655 --> 01:10:12,034 I literally didn't know what to do with myself, 1596 01:10:12,068 --> 01:10:13,896 because it was my identity. 1597 01:10:13,931 --> 01:10:16,241 The mentality in there is always positive, 1598 01:10:16,275 --> 01:10:17,827 nothing negative, 1599 01:10:17,862 --> 01:10:21,551 and you're in a LuLaRoe family. 1600 01:10:21,586 --> 01:10:22,620 So you have your LuLa mom, 1601 01:10:22,655 --> 01:10:25,068 your LuLa grandma, your LuLa babies. 1602 01:10:25,103 --> 01:10:27,344 Everything is Lula In LuLaRoe. 1603 01:10:30,448 --> 01:10:31,896 MLMs are scammy, 1604 01:10:31,931 --> 01:10:34,551 but they are not just your average scam. 1605 01:10:35,758 --> 01:10:38,172 They have so much in common 1606 01:10:38,206 --> 01:10:39,793 psychologically with the groups 1607 01:10:39,827 --> 01:10:42,344 that we would traditionally think of as cults. 1608 01:10:42,379 --> 01:10:45,551 You know, they encourage you to recruit others. 1609 01:10:45,586 --> 01:10:48,448 They shut down questioning and dissent. 1610 01:10:48,482 --> 01:10:50,103 They gaslight you into thinking 1611 01:10:50,137 --> 01:10:52,931 that if you don't succeed in this organization, 1612 01:10:52,965 --> 01:10:54,344 it is your fault. 1613 01:10:54,379 --> 01:10:56,172 If you don't make your quota for the month, 1614 01:10:56,206 --> 01:10:59,103 well, girl, it's because you didn't think positive enough. 1615 01:10:59,137 --> 01:11:01,482 You didn't envision the Cadillac. 1616 01:11:01,517 --> 01:11:02,517 Therefore, 1617 01:11:03,517 --> 01:11:04,689 there is something wrong with you. 1618 01:11:05,793 --> 01:11:07,724 You need to stick it out another month 1619 01:11:07,758 --> 01:11:09,241 to really prove yourself 1620 01:11:09,275 --> 01:11:11,413 as the boss babe we thought you were. 1621 01:11:11,448 --> 01:11:13,931 I just felt like a failure and I didn't wanna 1622 01:11:14,793 --> 01:11:17,000 go to my mom and after she gave me 1623 01:11:17,034 --> 01:11:19,655 that money from her retirement fund, 1624 01:11:19,689 --> 01:11:21,241 like I didn't want to go to her 1625 01:11:21,275 --> 01:11:22,586 and be like, "Mom, I failed." 1626 01:11:23,517 --> 01:11:27,068 So, I just, I was in denial a long time, 1627 01:11:27,103 --> 01:11:29,241 and I just 1628 01:11:29,275 --> 01:11:31,862 really just had to face the truth. 1629 01:11:31,896 --> 01:11:34,000 It's really hard to see yourself as a victim. 1630 01:11:34,931 --> 01:11:36,620 To say you were victimized 1631 01:11:36,655 --> 01:11:38,586 is to admit a weakness, 1632 01:11:38,620 --> 01:11:41,103 and a weakness feels painful. 1633 01:11:41,137 --> 01:11:43,896 Plus, if you admit that you were victimized, 1634 01:11:43,931 --> 01:11:45,758 then you also have to, in an MLM, 1635 01:11:45,793 --> 01:11:47,344 admit that you victimized others, 1636 01:11:47,931 --> 01:11:49,517 which is even harder. 1637 01:11:49,551 --> 01:11:51,310 I just felt extremely guilty 1638 01:11:51,344 --> 01:11:52,344 for the people that I, 1639 01:11:53,655 --> 01:11:54,655 you know, had join. 1640 01:11:56,517 --> 01:12:00,758 So, I just, I always think about that, I always wonder like, how do they 1641 01:12:00,793 --> 01:12:03,034 think of me, like I had such highs 1642 01:12:03,068 --> 01:12:04,413 and then I had such lows. 1643 01:12:04,448 --> 01:12:08,137 And I think about that now, like, what do they think of me now 1644 01:12:08,172 --> 01:12:10,517 or did they think I was being deceitful at the time. 1645 01:12:11,862 --> 01:12:14,206 So, while a LuLaRoe recruit 1646 01:12:14,241 --> 01:12:16,034 might be a suburban mom 1647 01:12:16,068 --> 01:12:18,310 with highlights wearing bulldog leggings 1648 01:12:18,344 --> 01:12:21,206 rather than a new religious member 1649 01:12:21,241 --> 01:12:24,379 in a white robe with a shaved head on a commune, 1650 01:12:24,413 --> 01:12:27,655 the methods of manipulation that they're under are quite similar. 1651 01:12:31,172 --> 01:12:33,689 We were supposed to dress a certain way all the time. 1652 01:12:38,103 --> 01:12:40,206 If it was too big, we would tie a knot in it, 1653 01:12:41,172 --> 01:12:42,586 mix our patterns, 1654 01:12:43,896 --> 01:12:46,068 then we all wore it, 1655 01:12:46,103 --> 01:12:47,586 and we all wore the same thing, 1656 01:12:49,275 --> 01:12:50,310 acted the same way. 1657 01:12:51,689 --> 01:12:54,310 So like being on stage and looking out 1658 01:12:54,344 --> 01:12:55,517 into the audience. 1659 01:12:55,551 --> 01:12:58,034 Um, everybody was twins. 1660 01:12:58,068 --> 01:13:00,517 I'm not going to lie, like everybody had that Joy on. 1661 01:13:00,551 --> 01:13:02,275 How am I remembering all these names? 1662 01:13:02,310 --> 01:13:05,379 It's like the cardigan, the long. 1663 01:13:05,413 --> 01:13:07,448 And then everyone was rocking leggings. 1664 01:13:08,517 --> 01:13:12,034 Oh, my gosh. Wow! What a morning. 1665 01:13:12,068 --> 01:13:13,413 I can't imagine what that must 1666 01:13:13,448 --> 01:13:16,000 have been like for DeAnne, 1667 01:13:16,034 --> 01:13:19,275 to look out and see everybody that you've convinced 1668 01:13:19,310 --> 01:13:20,620 to be a certain way. 1669 01:13:20,655 --> 01:13:22,655 What that would feel like? 1670 01:13:22,689 --> 01:13:24,551 I've always just kind of always wondered 1671 01:13:24,586 --> 01:13:26,034 what did she really think. 1672 01:13:27,172 --> 01:13:29,827 They need that culture of conformity 1673 01:13:29,862 --> 01:13:32,482 where you're only hearing the MLM rhetoric, 1674 01:13:32,517 --> 01:13:34,137 where you're only hearing 1675 01:13:34,172 --> 01:13:36,586 that toxic positivity from your upline, 1676 01:13:36,620 --> 01:13:38,758 where you're only hearing the mantras 1677 01:13:38,793 --> 01:13:41,448 and the faux inspiration from the people at the top, 1678 01:13:41,482 --> 01:13:43,000 it creates the sense that 1679 01:13:43,034 --> 01:13:45,413 you're a part of something bigger than yourself. 1680 01:13:45,448 --> 01:13:48,758 And I want to tell you there is a sense of belonging. 1681 01:13:48,793 --> 01:13:52,758 I think there is a specific group of people that they're targeting 1682 01:13:52,793 --> 01:13:55,448 and it's middle-aged white women in Middle America. 1683 01:13:56,448 --> 01:13:58,413 But they probably do have sprinklings of, 1684 01:13:58,448 --> 01:14:00,310 you know, a Latina, a black woman, 1685 01:14:00,344 --> 01:14:01,655 uh, you know, an Asian 1686 01:14:01,689 --> 01:14:04,344 just to, you know, bring some diversity, some seasoning. 1687 01:14:04,379 --> 01:14:06,862 But, um, they use a lot of black vernacular 1688 01:14:06,896 --> 01:14:10,448 in order to, um, to look relatable. 1689 01:14:11,034 --> 01:14:12,517 Hey, girls. Hey! 1690 01:14:12,551 --> 01:14:15,517 Hey, girl, hey. Hello, hello, everyone, welcome. 1691 01:14:15,551 --> 01:14:17,379 - Hey! - Which is fine. 1692 01:14:17,413 --> 01:14:19,448 That's fine if you wanna use black vernacular. 1693 01:14:19,482 --> 01:14:21,310 I'm not the vernacular police, 1694 01:14:21,344 --> 01:14:24,000 but it's not reflected in their downline. 1695 01:14:24,034 --> 01:14:25,551 It's not reflected on their stages 1696 01:14:25,586 --> 01:14:27,206 when they hold these major events. 1697 01:14:27,241 --> 01:14:29,137 I have a problem with it because 1698 01:14:29,172 --> 01:14:31,620 they're using the Black vernacular to profit, 1699 01:14:31,655 --> 01:14:34,103 but we're not profiting off of it because 1700 01:14:35,034 --> 01:14:36,862 we're only there for seasoning 1701 01:14:36,896 --> 01:14:38,689 so that they can tell, 1702 01:14:38,724 --> 01:14:40,482 the world, "Yes, we're diverse." 1703 01:14:43,379 --> 01:14:44,379 Okay. 1704 01:14:45,517 --> 01:14:47,793 - Is that it? Yes. 1705 01:14:47,827 --> 01:14:51,172 That really struck me when I would sell my product, 1706 01:14:51,206 --> 01:14:52,965 um, Black people would never... 1707 01:14:53,000 --> 01:14:56,206 I would... that would shut, they would shut the door in my face, yeah. 1708 01:14:56,241 --> 01:14:58,344 I promise you, I promise you. 1709 01:14:58,379 --> 01:15:02,275 And I have neighbors, people, church, family, friends. 1710 01:15:02,310 --> 01:15:06,896 My daughter said the clothing wasn't their style. 1711 01:15:06,931 --> 01:15:08,896 I guess they didn't like the clothing. 1712 01:15:08,931 --> 01:15:10,000 I would say 1713 01:15:10,034 --> 01:15:13,620 95% of these women were white. 1714 01:15:13,655 --> 01:15:18,068 I have only seen a few people of color ever 1715 01:15:18,103 --> 01:15:20,517 who were a part of LuLaRoe, 1716 01:15:20,551 --> 01:15:25,068 and all the main figures who are very popular 1717 01:15:25,103 --> 01:15:28,724 and high up in LuLaRoe were always very homogeneous. 1718 01:15:30,413 --> 01:15:33,241 Mark and DeAnne were projecting a certain image, 1719 01:15:33,275 --> 01:15:35,793 an image of a white couple. 1720 01:15:36,448 --> 01:15:37,896 When you have a group 1721 01:15:37,931 --> 01:15:40,586 than has that kind of leadership 1722 01:15:40,620 --> 01:15:44,103 that represents a... a kind of prototype, 1723 01:15:44,137 --> 01:15:47,758 they encourage you to want to be just like the leaders. 1724 01:15:47,793 --> 01:15:50,000 What's up, y'all? We're here. 1725 01:15:50,034 --> 01:15:52,793 This is 2016, New York convention. 1726 01:15:52,827 --> 01:15:56,034 It's getting live, it's getting lit. There's a bunch of ladies 1727 01:15:56,068 --> 01:15:59,689 in leggings and dresses and leggings and dresses. 1728 01:15:59,724 --> 01:16:02,310 Did I mention that they're in leggings? 1729 01:16:05,379 --> 01:16:07,689 Being Black at LuLaRoe 1730 01:16:09,413 --> 01:16:10,620 was great. 1731 01:16:10,655 --> 01:16:12,793 I was the unicorn Of LuLaRoe, 1732 01:16:12,827 --> 01:16:14,310 you best believe. 1733 01:16:14,344 --> 01:16:16,931 I rode that train, 1734 01:16:16,965 --> 01:16:19,620 I mean, I tooted my horn and everything because 1735 01:16:19,655 --> 01:16:21,931 I mean, yeah, they... 1736 01:16:21,965 --> 01:16:24,482 It wasn't diverse at all. 1737 01:16:24,517 --> 01:16:26,551 I mean, in a serious, 1738 01:16:26,586 --> 01:16:28,068 on a serious side, like... 1739 01:16:30,275 --> 01:16:31,862 I don't know if I could say like... 1740 01:16:36,793 --> 01:16:39,310 I may have could have gotten taken advantage of... 1741 01:16:40,379 --> 01:16:41,896 ...a few times, 1742 01:16:41,931 --> 01:16:46,275 like I definitely endured some... 1743 01:16:46,310 --> 01:16:48,793 some racism I'm not, I'm not going to lie. 1744 01:16:48,827 --> 01:16:52,172 But again, for me... 1745 01:16:54,344 --> 01:16:55,620 I'll put up with it. 1746 01:16:55,655 --> 01:16:58,310 I'm where I wanted to be... 1747 01:16:58,344 --> 01:17:00,413 I'm living my dream, you know, 1748 01:17:00,448 --> 01:17:04,586 and I've dealt with it in my life. 1749 01:17:04,620 --> 01:17:07,413 You know, this is, it's nothing new. 1750 01:17:07,448 --> 01:17:09,482 It's going to be everywhere you go. 1751 01:17:09,517 --> 01:17:12,034 Like, there's always somebody that hates you. 1752 01:17:22,137 --> 01:17:25,655 I was so grateful for the opportunity just to be there. 1753 01:17:25,689 --> 01:17:27,551 They incorporated me in their family. 1754 01:17:27,586 --> 01:17:30,724 They let me come to the cookouts. 1755 01:17:30,758 --> 01:17:32,034 I was in. 1756 01:17:33,758 --> 01:17:34,793 And I'm just like, 1757 01:17:36,000 --> 01:17:41,068 "I'm this nobody from Concord, like, I mean..." 1758 01:17:41,103 --> 01:17:47,931 I was thinking, "Yeah, I want to do this for the rest of my life." 1759 01:17:49,620 --> 01:17:52,068 ♪ Know yourself Find your groove ♪ 1760 01:17:52,103 --> 01:17:53,413 ♪ Nothing is impossible ♪ 1761 01:17:53,448 --> 01:17:56,551 ♪ You are unstoppable ♪ 1762 01:17:56,586 --> 01:17:59,965 ♪ Happy days they come and go ♪ 1763 01:18:00,000 --> 01:18:04,724 Sing it. ♪ Always gonna have that LuLaRoe♪ 1764 01:18:04,758 --> 01:18:07,034 There was always a lot of hype, 1765 01:18:07,068 --> 01:18:08,793 fun activities, 1766 01:18:08,827 --> 01:18:10,137 ran by Sam Schultz. 1767 01:18:12,241 --> 01:18:15,965 Sam Schultz is DeAnne's direct nephew. 1768 01:18:16,000 --> 01:18:18,344 Sam was right at the top of LuLaRoe 1769 01:18:19,551 --> 01:18:22,034 and was really the LuLaRoe hype man. 1770 01:18:22,068 --> 01:18:25,103 It was actually Sam Schultz who came and approached me 1771 01:18:25,137 --> 01:18:26,965 at that beach. 1772 01:18:27,000 --> 01:18:29,655 He was the reason why I was there. 1773 01:18:30,344 --> 01:18:32,655 Elijah! Elijah! Elijah! 1774 01:18:36,137 --> 01:18:40,655 I related to Sam, like he was kind of my idol. 1775 01:18:40,689 --> 01:18:43,103 He was my big brother. 1776 01:18:43,620 --> 01:18:45,000 Ha-ha! 1777 01:18:45,034 --> 01:18:48,931 - Yo, what up, y'all? - Look, it's a Monday. 1778 01:18:48,965 --> 01:18:51,172 - Back to work. - Hey! 1779 01:18:51,206 --> 01:18:52,793 I would do anything for Sam. 1780 01:18:53,482 --> 01:18:56,000 I felt in debt to him. 1781 01:18:56,034 --> 01:18:59,172 The first time I met Sam Shultz was at a LuLaRoe training, 1782 01:18:59,206 --> 01:19:01,724 and they will ask you what your "why" is. 1783 01:19:01,758 --> 01:19:04,068 Can you guys see me okay? 1784 01:19:04,103 --> 01:19:07,034 Let's see, I felt like this is like an interrogation light. 1785 01:19:07,068 --> 01:19:10,517 He's very, very good at getting close to you 1786 01:19:10,551 --> 01:19:11,793 and listening to your story. 1787 01:19:12,724 --> 01:19:13,862 What's up, everyone? 1788 01:19:13,896 --> 01:19:15,413 It feels nice to have somebody 1789 01:19:16,103 --> 01:19:18,034 kind of ask you those. 1790 01:19:18,068 --> 01:19:19,551 Why do you... Why do you do what you do? 1791 01:19:20,275 --> 01:19:21,275 I told my why. 1792 01:19:22,827 --> 01:19:26,586 My husband had passed in December of 2012. 1793 01:19:31,896 --> 01:19:34,620 There were times shortly after Scott passed 1794 01:19:34,655 --> 01:19:38,965 that I really probably didn't deserve to have my son. 1795 01:19:39,000 --> 01:19:42,068 Which might not be the best thing for any mom to ever say. 1796 01:19:44,068 --> 01:19:47,620 Just self-medicated, slept a lot. 1797 01:19:49,724 --> 01:19:50,724 It was bad. 1798 01:19:53,620 --> 01:19:56,034 And I told him that story, 1799 01:19:56,068 --> 01:19:59,862 and I think right then and there, right then, 1800 01:20:01,413 --> 01:20:02,517 I was the target. 1801 01:20:05,000 --> 01:20:09,413 Because he knew the guilt that I carried from the years 1802 01:20:09,448 --> 01:20:11,206 immediately after my husband passed. 1803 01:20:11,241 --> 01:20:14,620 He chose close people and groomed them for a while, 1804 01:20:15,586 --> 01:20:16,793 so he would get away with it. 1805 01:20:17,655 --> 01:20:19,172 So we wouldn't turn on him. 1806 01:20:20,551 --> 01:20:22,551 I called him my best friend 1807 01:20:22,586 --> 01:20:24,517 'cause I did think he was my best friend. 1808 01:20:24,551 --> 01:20:25,620 And so did my son. 1809 01:20:26,896 --> 01:20:29,137 He loved him. 1810 01:20:29,172 --> 01:20:32,586 When you are brought up in a household that literally worships 1811 01:20:32,620 --> 01:20:34,896 the church of MLM, 1812 01:20:34,931 --> 01:20:38,896 all you know is how to worship the church of MLM. 1813 01:20:45,724 --> 01:20:48,206 Sam kind of encouraged us to, 1814 01:20:48,241 --> 01:20:49,793 "All right, come on, let's do our own thing. 1815 01:20:49,827 --> 01:20:52,275 It's... we're going to start our own thing." 1816 01:20:52,310 --> 01:20:54,689 I trusted him, you know. 1817 01:20:55,931 --> 01:20:58,000 And I quit, I quit LuLaRoe. 1818 01:20:58,586 --> 01:20:59,793 I did. 1819 01:21:03,965 --> 01:21:05,137 I was naive. 1820 01:21:09,000 --> 01:21:11,068 I learned that Sam 1821 01:21:11,103 --> 01:21:15,482 was in and out of various schemes, 1822 01:21:15,517 --> 01:21:18,689 plots, get rich quick ideas, whatever you want to call them. 1823 01:21:18,724 --> 01:21:21,206 The Utah County musician, who makes a living 1824 01:21:21,241 --> 01:21:24,827 organizing concerts and once owned the popular Sammy's Cafe, 1825 01:21:24,862 --> 01:21:27,034 is now facing 26 felonies tonight. 1826 01:21:27,068 --> 01:21:29,482 In all charging documents say Schultz recruited 1827 01:21:29,517 --> 01:21:31,344 at least 13 investors, 1828 01:21:31,379 --> 01:21:35,103 who collectively gave Schultz $323,000. 1829 01:21:36,655 --> 01:21:39,655 There was a medicinal marijuana farm. 1830 01:21:39,689 --> 01:21:41,275 You know, he wanted more money from me 1831 01:21:41,310 --> 01:21:43,586 for these fake investment opportunities. 1832 01:21:43,931 --> 01:21:44,931 In total, 1833 01:21:46,034 --> 01:21:51,344 Sam managed to get from me almost $100,000, 1834 01:21:53,000 --> 01:21:58,655 and the majority of that money was money left by my late husband, 1835 01:21:58,689 --> 01:22:00,137 allocated to Peirson. 1836 01:22:06,413 --> 01:22:08,482 People will say to me with the current business, 1837 01:22:09,517 --> 01:22:11,827 "Oh, my gosh, you worked so hard. 1838 01:22:11,862 --> 01:22:14,482 You worked, I can't believe you do all this by yourself." 1839 01:22:15,413 --> 01:22:16,931 They don't know the real reason 1840 01:22:16,965 --> 01:22:20,068 why I do all of it by myself is because in my head, 1841 01:22:21,448 --> 01:22:24,000 every time the Airstream door opens, 1842 01:22:24,034 --> 01:22:27,137 I'm constantly trying to make up for what I lost. 1843 01:22:47,275 --> 01:22:49,517 Me, like so many others 1844 01:22:50,965 --> 01:22:54,379 of his victims, were plucked right out of that company. 1845 01:22:54,413 --> 01:22:55,758 But you know what? The company won't 1846 01:22:57,000 --> 01:22:58,655 take any responsibility for it. 1847 01:23:04,517 --> 01:23:06,896 2017 was the big year 1848 01:23:06,931 --> 01:23:09,103 where they got a ton of lawsuits filed against them 1849 01:23:09,137 --> 01:23:11,724 and the backlash against them really started. 1850 01:23:18,965 --> 01:23:20,931 I think there was really power in numbers, 1851 01:23:20,965 --> 01:23:24,000 and once people all started getting together and talking about this stuff, 1852 01:23:24,034 --> 01:23:26,379 you know, I think more lawsuits were filed. 1853 01:23:26,413 --> 01:23:29,206 I think people started reaching out to the media. 1854 01:23:29,241 --> 01:23:30,965 And I think ultimately, 1855 01:23:31,000 --> 01:23:35,068 it started giving the case attention. 1856 01:23:35,103 --> 01:23:36,896 Three Sacramento women are suing 1857 01:23:36,931 --> 01:23:41,241 a popular clothing company called LuLaRoe for $1 billion. 1858 01:23:41,275 --> 01:23:42,655 The attorney claims the company 1859 01:23:42,689 --> 01:23:44,379 has cheated thousands of women. 1860 01:23:59,206 --> 01:24:02,103 I'm a fourth generation steamfitter of Local UA342. 1861 01:24:04,482 --> 01:24:06,965 I'm known in the LuLaRoe Defective 1862 01:24:07,000 --> 01:24:09,896 Defectors' Support Group as Heather Blithely. 1863 01:24:09,931 --> 01:24:12,137 My legal name, however, is Heather Blevins. 1864 01:24:12,172 --> 01:24:16,310 I try to keep my online social media presence 1865 01:24:16,344 --> 01:24:19,620 and my real life self kind of separate. 1866 01:24:21,551 --> 01:24:23,137 I don't know why I wanted to help so bad. 1867 01:24:23,172 --> 01:24:24,655 I really don't. 1868 01:24:24,689 --> 01:24:26,793 It just wasn't fair, and no one was listening. 1869 01:24:26,827 --> 01:24:28,310 And everyone was telling us we were wrong 1870 01:24:28,344 --> 01:24:30,517 for trying to help and we were wrong for caring 1871 01:24:30,551 --> 01:24:35,689 and we just knew... that it was real. 1872 01:24:42,068 --> 01:24:44,689 I think that the Facebook group is one of the reasons 1873 01:24:44,724 --> 01:24:48,137 why I have always known this is a story that's worth reporting 1874 01:24:48,172 --> 01:24:50,482 because people were 1875 01:24:50,517 --> 01:24:53,275 so incredibly passionate about it. 1876 01:24:53,310 --> 01:24:55,137 I wasn't really sure 1877 01:24:56,586 --> 01:24:59,689 how to go about telling you guys. 1878 01:24:59,724 --> 01:25:01,931 And just really want to see 1879 01:25:01,965 --> 01:25:04,793 justice in some form or another. 1880 01:25:04,827 --> 01:25:07,034 When I first joined LuLaRoe Defective, 1881 01:25:07,068 --> 01:25:08,241 it was pretty small 1882 01:25:08,275 --> 01:25:10,206 and I volunteered. 1883 01:25:10,241 --> 01:25:14,103 As consultants started mass leaving LuLaRoe, 1884 01:25:14,137 --> 01:25:17,931 there wasn't any place for us to say, 1885 01:25:17,965 --> 01:25:20,000 "Here's what really happened behind the scenes." 1886 01:25:21,103 --> 01:25:22,758 So, it's like a domino effect, right? 1887 01:25:22,793 --> 01:25:26,344 You get one person who just is not happy 1888 01:25:26,379 --> 01:25:29,689 and they decide to say something and then it's like, boom. 1889 01:25:29,724 --> 01:25:31,827 The... the door gets kicked down. 1890 01:25:31,862 --> 01:25:33,517 It's like, me too, me too. 1891 01:25:33,551 --> 01:25:34,862 This happened to me too. 1892 01:25:36,275 --> 01:25:39,172 The membership grew pretty steadily, 1893 01:25:39,206 --> 01:25:42,241 um, from a few hundred to a couple of thousand, 1894 01:25:42,275 --> 01:25:44,000 and at the height of the group, 1895 01:25:44,034 --> 01:25:46,000 there were 75,000 members. 1896 01:25:48,137 --> 01:25:51,275 Heather is one of my good friends now, 1897 01:25:51,310 --> 01:25:53,896 and she's a damn good detective as well. 1898 01:25:53,931 --> 01:25:56,896 I can say that. 1899 01:25:56,931 --> 01:25:59,586 It was brought to our attention by some of the members 1900 01:25:59,620 --> 01:26:04,275 how a lot of their onboarding packages had ads that advertised 1901 01:26:04,310 --> 01:26:05,931 full-time pay for part-time work. 1902 01:26:05,965 --> 01:26:09,655 $60,000 to $75,000 a year, 1903 01:26:09,689 --> 01:26:12,000 working 20 hours a week. 1904 01:26:14,482 --> 01:26:16,655 There was a trend of burning your onboarding package. 1905 01:26:16,689 --> 01:26:18,862 When people would cancel, they were just so excited to get out 1906 01:26:18,896 --> 01:26:20,482 that they would burn their onboarding package, 1907 01:26:20,517 --> 01:26:23,068 and I realized that evidence is being lost. 1908 01:26:23,103 --> 01:26:25,931 And so I went and got a post office box 1909 01:26:25,965 --> 01:26:28,517 and asked the group for their onboarding packages. 1910 01:26:31,931 --> 01:26:33,275 We encouraged everyone, 1911 01:26:33,310 --> 01:26:35,827 "File a complaint with your state's attorney general," 1912 01:26:35,862 --> 01:26:37,551 and all we could do is hope that 1913 01:26:37,586 --> 01:26:39,517 someone was going to pay attention and someone was going to take interest. 1914 01:26:40,517 --> 01:26:44,000 Finally, I got a message 1915 01:26:44,034 --> 01:26:47,586 from the investigators of the Washington State Attorney General's Office, 1916 01:26:47,620 --> 01:26:50,413 and she was asking if I had any information about 1917 01:26:50,448 --> 01:26:53,172 which consultants in Washington were impacted. 1918 01:26:53,206 --> 01:26:55,517 One thing I sent to them was the brochure 1919 01:26:55,551 --> 01:26:56,862 that came in the onboarding package 1920 01:26:56,896 --> 01:26:59,275 that said you could make full-time work for part-time pay. 1921 01:26:59,310 --> 01:27:02,862 Oh, and the video of Jordan and Lindsay Wheeler, who's a top consultant. 1922 01:27:02,896 --> 01:27:06,068 We need to get away from being a pyramid scheme, okay? 1923 01:27:06,103 --> 01:27:08,862 What it is is if you sign up Sally, 1924 01:27:09,862 --> 01:27:13,206 you have, you have no reason to help Sally 1925 01:27:13,241 --> 01:27:15,586 sell the product in her room. 1926 01:27:15,620 --> 01:27:19,344 Right? You can just keep promoting her to buy, to buy, to buy, to buy. 1927 01:27:19,379 --> 01:27:22,620 - You could even... And they were explaining 1928 01:27:22,655 --> 01:27:23,724 a pretty big policy change. 1929 01:27:23,758 --> 01:27:25,034 I'm not panicked at all, right? 1930 01:27:25,068 --> 01:27:26,655 If you're doing the right things, 1931 01:27:26,689 --> 01:27:27,896 there's no issue. 1932 01:27:27,931 --> 01:27:29,689 When the LuLaRoe first started, 1933 01:27:29,724 --> 01:27:31,551 if you had people under you, 1934 01:27:31,586 --> 01:27:35,206 you weren't making a percentage of the clothing they sold. 1935 01:27:35,241 --> 01:27:38,310 You're making a percentage of the clothing they bought. 1936 01:27:38,344 --> 01:27:40,413 So for example, I'm in LuLaRoe. 1937 01:27:40,448 --> 01:27:42,586 I have a girl under me, let's say. 1938 01:27:42,620 --> 01:27:45,965 If she buys ten shirts and she can only sell two, 1939 01:27:46,000 --> 01:27:47,241 it doesn't really matter to me. 1940 01:27:47,275 --> 01:27:50,206 I'm making commission off all ten shirts. 1941 01:27:50,241 --> 01:27:52,620 And then eventually LuLaRoe changed 1942 01:27:52,655 --> 01:27:55,931 their structure for bonuses, 1943 01:27:55,965 --> 01:28:03,068 where instead I was gonna make only money of the shirts she sold. 1944 01:28:03,103 --> 01:28:07,379 So instead of making money for ten shirts, I was looking at making money for two. 1945 01:28:07,413 --> 01:28:10,310 All of the sudden, people's, um, 1946 01:28:10,344 --> 01:28:12,413 income was dropping precipitously. 1947 01:28:12,448 --> 01:28:13,931 I mean, we've been talking about it forever. 1948 01:28:13,965 --> 01:28:15,379 If you've come to a leadership. 1949 01:28:15,413 --> 01:28:17,206 Yeah, this is not new. 1950 01:28:17,241 --> 01:28:18,310 Yeah, this is not new. 1951 01:28:18,344 --> 01:28:20,379 This is something that we've been talking about. 1952 01:28:20,413 --> 01:28:23,137 Lindsay, what do you say to people when 1953 01:28:23,172 --> 01:28:25,586 they say we are a pyramid scheme? 1954 01:28:26,172 --> 01:28:27,551 Quick answer. 1955 01:28:27,586 --> 01:28:28,724 We're not a pyramid scheme. 1956 01:28:28,758 --> 01:28:30,137 My husband thought we were at first. 1957 01:28:30,172 --> 01:28:32,413 He told me I was gonna share a cell with Bernie Madoff 1958 01:28:32,448 --> 01:28:34,275 'cause he was convinced that there was no way 1959 01:28:34,310 --> 01:28:36,896 that I could make this kind of money doing something legally. 1960 01:28:36,931 --> 01:28:39,137 That's my favorite piece of evidence that I've ever seen. 1961 01:28:40,310 --> 01:28:42,137 And again, that was sent to me by a consultant. 1962 01:28:42,172 --> 01:28:45,206 You've probably seen their brightly colored tops and leggings 1963 01:28:45,241 --> 01:28:47,103 on your social media feed. 1964 01:28:47,137 --> 01:28:50,655 But tonight, the company LuLaRoe facing another lawsuit. 1965 01:28:50,689 --> 01:28:53,724 The Washington State Attorney General says LuLaRoe 1966 01:28:53,758 --> 01:28:56,379 made claims of high profits and tricked people 1967 01:28:56,413 --> 01:28:58,068 into joining a pyramid scheme. 1968 01:28:58,103 --> 01:29:01,103 So, what makes LuLaRoe a pyramid scheme, 1969 01:29:01,137 --> 01:29:02,827 according to the Attorney General's office? 1970 01:29:02,862 --> 01:29:07,103 Well, the monthly bonuses, which were reportedly seven to 12 times higher 1971 01:29:07,137 --> 01:29:08,965 than the actual merchandise sales. 1972 01:29:12,586 --> 01:29:15,793 Do you ever encourage retailers to share how much they made, 1973 01:29:15,827 --> 01:29:17,827 um, in a particular bonus check? 1974 01:29:17,862 --> 01:29:19,379 No. 121. 1975 01:29:19,413 --> 01:29:21,206 So, exhibit 121. 1976 01:29:21,241 --> 01:29:22,896 So I'm gonna start playing at... 1977 01:29:22,931 --> 01:29:26,034 at the beginning and play for a little bit. 1978 01:29:26,068 --> 01:29:28,793 I am from Maryland. 1979 01:29:28,827 --> 01:29:32,206 My... my last check was $250,000, 1980 01:29:32,241 --> 01:29:36,034 and I do about 12,000 to 13,000 in sales every month. 1981 01:29:37,586 --> 01:29:40,034 I'm in Salt Lake City... Riverton, Utah, 1982 01:29:40,068 --> 01:29:43,655 and our last check was 307,000. 1983 01:29:46,206 --> 01:29:49,344 I... I can't even say it. It, like, blows my mind. 1984 01:29:49,379 --> 01:29:51,689 So, uh, correct me if I'm wrong, 1985 01:29:51,724 --> 01:29:54,000 but everyone in that video is making more 1986 01:29:54,034 --> 01:29:56,000 in bonus checks than they are in sales, correct? 1987 01:29:56,862 --> 01:29:58,517 At that time, yes. 1988 01:29:58,551 --> 01:30:00,793 Why were they making more on bonus checks than sales? 1989 01:30:00,827 --> 01:30:02,034 I don't know. Maybe they... 1990 01:30:03,310 --> 01:30:04,896 maybe they helped a lot of people 1991 01:30:06,551 --> 01:30:08,344 to help them make money. 1992 01:30:42,517 --> 01:30:45,551 When we heard about the outcome of the Washington State case, 1993 01:30:45,586 --> 01:30:47,517 we were all definitely elated. 1994 01:31:02,103 --> 01:31:03,241 We were super excited 1995 01:31:03,275 --> 01:31:04,517 that the consultants got money back. 1996 01:31:04,551 --> 01:31:06,586 It really, I think, gave us hope 1997 01:31:06,620 --> 01:31:09,206 that, um, what we were doing was counting for something. 1998 01:31:09,241 --> 01:31:10,620 We weren't just screaming into the void. 1999 01:31:10,655 --> 01:31:12,551 People were listening. It was actually 2000 01:31:13,620 --> 01:31:16,724 creating change, um, and some positive outcomes, 2001 01:31:16,758 --> 01:31:18,379 and we really hope that it'll continue 2002 01:31:18,413 --> 01:31:19,379 through the rest of the states. 2003 01:31:52,137 --> 01:31:54,241 The FTC needs to strengthen its regulations 2004 01:31:54,275 --> 01:31:56,517 against, uh, multi-level marketing companies. 2005 01:31:56,551 --> 01:31:58,241 Pyramid schemes are already illegal, 2006 01:31:58,275 --> 01:32:03,413 um, the FTC, um, website has all that information. 2007 01:32:03,448 --> 01:32:05,517 Uh, I think the FTC really needs to step up 2008 01:32:05,551 --> 01:32:07,965 and expand that to all MLMs. 2009 01:32:10,379 --> 01:32:14,172 In the beginning of doing a research around MLMs, 2010 01:32:14,206 --> 01:32:16,931 I didn't understand that 99% of people 2011 01:32:16,965 --> 01:32:19,000 made nothing or lost money. 2012 01:32:19,034 --> 01:32:21,344 And that's a lot, that's like kind of a low figure. 2013 01:32:21,379 --> 01:32:23,827 They think maybe it's 99.9. 2014 01:32:23,862 --> 01:32:26,482 One, two, three. Whoo! 2015 01:32:27,896 --> 01:32:31,172 In a successful multi-level marketing scheme, 2016 01:32:31,206 --> 01:32:36,413 you need a lot of failure because you're making money off of the recruits 2017 01:32:36,448 --> 01:32:41,344 and you're making money off of their, um, desperation, 2018 01:32:41,379 --> 01:32:46,862 which often manifests as more investment in the company. 2019 01:32:46,896 --> 01:32:51,896 LuLaRoe isn't built for you to have your own freedom 2020 01:32:51,931 --> 01:32:53,448 and to have your own empowerment. 2021 01:32:53,482 --> 01:32:56,931 It is meant to build the people at the top. 2022 01:32:56,965 --> 01:32:59,655 It's meant to make the people at the top richer. 2023 01:32:59,689 --> 01:33:01,689 Capitalism is the root of all evil. 2024 01:33:09,000 --> 01:33:10,172 It does surprise me 2025 01:33:10,206 --> 01:33:12,068 that LuLaRoe is still in existence 2026 01:33:12,103 --> 01:33:16,310 because I didn't really think 2027 01:33:16,344 --> 01:33:18,137 that they would be able to fight off 2028 01:33:18,172 --> 01:33:19,724 all of the litigation against them 2029 01:33:19,758 --> 01:33:21,862 without having to file for bankruptcy. 2030 01:33:21,896 --> 01:33:24,068 I think that LuLaRoe still exists 2031 01:33:24,103 --> 01:33:26,241 because Mark and DeAnne Stidham 2032 01:33:26,275 --> 01:33:29,931 want to continue making money from this business, 2033 01:33:29,965 --> 01:33:34,068 and what their business is all about is selling dreams 2034 01:33:34,862 --> 01:33:37,655 as opposed to selling a product. 2035 01:33:37,689 --> 01:33:41,172 And... and there are people that still want to believe 2036 01:33:41,206 --> 01:33:45,655 in the American dream and the dream of LuLaRoe. 2037 01:33:54,793 --> 01:33:56,344 We just got here to Cancun. 2038 01:33:57,448 --> 01:34:00,965 This is so worth the hard work. 2039 01:34:02,793 --> 01:34:05,275 I can't wait to get together with you 2040 01:34:05,310 --> 01:34:07,655 when you get here to Cancun. 2041 01:34:07,689 --> 01:34:10,620 And those of you that are not here, get busy, 2042 01:34:10,655 --> 01:34:12,620 and know that we love giving. 2043 01:34:15,931 --> 01:34:17,586 I can't believe it, I can't believe 2044 01:34:17,620 --> 01:34:19,827 like this is still going on. 2045 01:34:19,862 --> 01:34:21,862 It's like none of this had ever happened, 2046 01:34:21,896 --> 01:34:23,620 and the cognitive dissonance there 2047 01:34:23,655 --> 01:34:26,551 is just like, it's crazy. 2048 01:34:26,586 --> 01:34:28,965 This is the one where I had my son with me. 2049 01:34:29,000 --> 01:34:31,241 It's like... I took Brooks. it was so awesome. 2050 01:34:31,275 --> 01:34:33,793 - What, he's like a baby? - Yeah, I was nursing. 2051 01:34:33,827 --> 01:34:35,482 And I was able to bring him. 2052 01:34:35,517 --> 01:34:38,103 - Yeah. - Do you know what I wonder? I would love to know, 2053 01:34:38,137 --> 01:34:39,655 and there's no way to actually prove this, 2054 01:34:39,689 --> 01:34:41,965 but I would love to know, like how many babies were born 2055 01:34:42,000 --> 01:34:44,241 - because of LuLaRoe. - How many times have you seen 2056 01:34:44,275 --> 01:34:46,448 fund-raisers for like IVF treatments? 2057 01:34:46,482 --> 01:34:48,896 And all of us are like, oh... 2058 01:34:51,344 --> 01:34:54,034 I ended up in Cancun this weekend 2059 01:34:54,068 --> 01:34:57,241 because LuLaRoe is doing a incentive trip, 2060 01:34:57,275 --> 01:34:59,034 is what we call it a Dream Trip 2061 01:34:59,068 --> 01:35:02,034 and, um, leaders, high sellers are here, 2062 01:35:02,068 --> 01:35:03,448 they would come together once a year, 2063 01:35:03,482 --> 01:35:05,724 just coming together to be with my people. 2064 01:35:05,758 --> 01:35:08,655 But Brianna, you started six years ago. 2065 01:35:08,689 --> 01:35:09,931 - Yeah, almost. - Yeah. 2066 01:35:09,965 --> 01:35:11,482 So, I worked full-time at the hospital. 2067 01:35:11,517 --> 01:35:14,862 I was in nursing school, and I was doing LuLaRoe, like all at once. 2068 01:35:14,896 --> 01:35:17,482 And so online just worked really well for me. 2069 01:35:17,517 --> 01:35:19,137 And then when I graduated nursing school, 2070 01:35:19,172 --> 01:35:21,931 I was like full-time LuLaRoe, full-time at the hospital. 2071 01:35:21,965 --> 01:35:24,724 And then eventually LuLaRoe took over 2072 01:35:24,758 --> 01:35:27,448 and I quit at the hospital and haven't looked back. 2073 01:35:27,482 --> 01:35:28,896 Did you buy before you sold? 2074 01:35:28,931 --> 01:35:32,275 I did. I bought, I bought a lot before I sold. 2075 01:35:32,310 --> 01:35:35,034 Like a lot, a lot, a lot. I loved it. 2076 01:35:35,068 --> 01:35:36,206 I mean, it was just... 2077 01:35:37,482 --> 01:35:39,137 It made me feel good, 2078 01:35:39,172 --> 01:35:40,758 and then the community that I've built 2079 01:35:40,793 --> 01:35:44,103 since then has been amazing. 2080 01:35:45,172 --> 01:35:48,103 Everybody's looking for this bad story, 2081 01:35:48,137 --> 01:35:50,620 but it's not the bad story that's really there. 2082 01:35:50,655 --> 01:35:53,344 It's the empowerment that we are bringing. 2083 01:35:53,379 --> 01:35:56,310 It's the joy that we're creating in people's lives 2084 01:35:56,344 --> 01:35:59,965 and this opportunity that people have had to grow. 2085 01:36:00,000 --> 01:36:02,206 And the people that are here 2086 01:36:02,241 --> 01:36:04,275 are because of choices that they've made in their business. 2087 01:36:04,310 --> 01:36:05,931 And some people have left. 2088 01:36:05,965 --> 01:36:08,758 And they can find reasons as to why. 2089 01:36:08,793 --> 01:36:11,000 And there could be reasons that they want to use 2090 01:36:11,034 --> 01:36:12,517 that maybe are against LuLaRoe. 2091 01:36:12,551 --> 01:36:15,862 It could be reasons on media and things that they followed. 2092 01:36:15,896 --> 01:36:19,758 But no matter what, it all boils down to a personal choice 2093 01:36:19,793 --> 01:36:21,517 and how you choose to run your business. 2094 01:36:21,551 --> 01:36:23,931 I am here because of the choices that I've made. 2095 01:36:23,965 --> 01:36:26,793 Your... your customers become your friends, like it's not just... 2096 01:36:26,827 --> 01:36:28,827 - Oh, she's like my bestie now, it's wild. - It's not, 2097 01:36:28,862 --> 01:36:30,206 it's not like going into Target. 2098 01:36:30,241 --> 01:36:32,379 Like, my customers would be like, "Hey, will this fit me?" 2099 01:36:32,413 --> 01:36:33,586 Because I know their size. 2100 01:36:33,620 --> 01:36:35,620 - She really does. - You build that friendship. 2101 01:36:35,655 --> 01:36:37,551 People would come up, "Is that LuLa?" 2102 01:36:37,586 --> 01:36:39,034 And I'm like, "Yeah, it is." 2103 01:36:39,068 --> 01:36:40,689 - Well, and then you bond with that person. - Yeah. 2104 01:36:40,724 --> 01:36:42,241 'Cause they know what LuLa is, 2105 01:36:42,275 --> 01:36:44,206 - it's like this amazing bond. - Absolutely. 2106 01:36:44,241 --> 01:36:46,275 It gave me the confidence and then I started getting 2107 01:36:46,310 --> 01:36:48,241 into working out and then I started... 2108 01:36:48,275 --> 01:36:50,862 I actually managed to lose like 60 pounds 2109 01:36:50,896 --> 01:36:52,862 That's awesome. 2110 01:36:52,896 --> 01:36:54,551 We are around and thriving. 2111 01:36:54,586 --> 01:36:57,034 And it's... again it's a people's perception and choice. 2112 01:36:57,068 --> 01:36:59,620 If they chose to stop following LuLaRoe, 2113 01:36:59,655 --> 01:37:02,896 then in their life, we don't exist anymore, 2114 01:37:02,931 --> 01:37:03,965 but we are still here. 2115 01:37:09,172 --> 01:37:14,689 I really, really hate when MLM participants are portrayed as suckers. 2116 01:37:14,724 --> 01:37:16,620 There's nothing unusual about someone 2117 01:37:16,655 --> 01:37:19,517 who would like to run their own business 2118 01:37:19,551 --> 01:37:22,310 and have more time with their families. 2119 01:37:22,344 --> 01:37:25,620 That is what the American dream is, 2120 01:37:25,655 --> 01:37:28,413 and we've all been pitched that since birth. 2121 01:37:28,448 --> 01:37:31,413 People tend to think that folks wind up in groups 2122 01:37:31,448 --> 01:37:34,448 like LuLaRoe because of "brainwashing." 2123 01:37:34,482 --> 01:37:37,068 They were brainwashed. They were mind-controlled. 2124 01:37:37,103 --> 01:37:38,586 That would never happen to me. 2125 01:37:38,620 --> 01:37:41,793 We all are susceptible to these methods of manipulation. 2126 01:37:41,827 --> 01:37:45,448 LuLaRoe used the tools of psychological 2127 01:37:45,482 --> 01:37:48,862 and emotional manipulation to make money. 2128 01:37:48,896 --> 01:37:50,931 As long as there are people in this country 2129 01:37:50,965 --> 01:37:53,482 who are locked out of the dignified labor market 2130 01:37:53,517 --> 01:37:57,517 and made a promise that the American dream is still available to them, 2131 01:37:57,551 --> 01:37:59,413 the MLM industry will thrive. 2132 01:37:59,448 --> 01:38:03,862 I did join a couple of other MLMs after leaving LuLaRoe 2133 01:38:03,896 --> 01:38:05,310 just because I was still trying to bring 2134 01:38:05,344 --> 01:38:07,482 a little bit of income into my family life, 2135 01:38:08,344 --> 01:38:10,896 and none of those panned out either. 2136 01:38:10,931 --> 01:38:15,310 After LuLaRoe, I really finally got the idea 2137 01:38:15,344 --> 01:38:19,724 that this was not in any way going to help me, 2138 01:38:19,758 --> 01:38:21,517 and that these types of companies 2139 01:38:21,551 --> 01:38:23,310 were just predatory. 2140 01:38:27,344 --> 01:38:29,379 Yeah, that's starting to look like a good... 2141 01:38:29,413 --> 01:38:30,689 It's ready to go, cookie dough. 2142 01:38:31,206 --> 01:38:33,241 - See. - Ooh. 2143 01:38:33,275 --> 01:38:35,793 You are my mother. You hear the rhyme you just did. 2144 01:38:35,827 --> 01:38:37,965 It's ready to go, cookie dough. 2145 01:38:38,000 --> 01:38:39,310 - Aw! - Mmm-hmm. 2146 01:38:39,344 --> 01:38:40,793 We could start us a jingle. 2147 01:38:40,827 --> 01:38:43,896 Well, the American dream is for me 2148 01:38:43,931 --> 01:38:48,862 was, I promise you, just to be financially stable 2149 01:38:48,896 --> 01:38:50,551 and own my own business. 2150 01:38:50,586 --> 01:38:52,586 And LuLaRoe could have worked, 2151 01:38:52,620 --> 01:38:54,241 could have been that for me. 2152 01:38:54,275 --> 01:38:57,482 However, I... maybe I'll... I'll take all blame, though. 2153 01:38:57,517 --> 01:39:00,931 I just didn't have that fight to... to, um... 2154 01:39:03,793 --> 01:39:04,862 to make it happen. 2155 01:39:04,896 --> 01:39:06,827 There you go. Voila! 2156 01:39:06,862 --> 01:39:09,206 But I... I would like to give it one more shot, 2157 01:39:09,241 --> 01:39:11,551 and it can be lucrative. 2158 01:39:11,586 --> 01:39:15,551 If LuLaRoe came to me tomorrow and asked me, 2159 01:39:15,586 --> 01:39:19,655 "Hey, you wanna perform on a cruise like you did?" 2160 01:39:19,689 --> 01:39:24,689 Heck yes, please. Like, let's go, win. 2161 01:39:24,724 --> 01:39:26,482 Like, yeah, no, I... 2162 01:39:27,758 --> 01:39:29,310 in a heartbeat. 2163 01:39:30,620 --> 01:39:32,724 - You never stop. - No. 2164 01:39:32,758 --> 01:39:34,448 - Never stops, never. - I can't. 2165 01:39:34,482 --> 01:39:36,241 Never, never stops. It's okay. 2166 01:39:36,275 --> 01:39:37,310 - I can't. 2167 01:39:37,344 --> 01:39:39,241 - Oh. - Check who that is. 2168 01:39:39,275 --> 01:39:41,586 That is just in time. 2169 01:39:41,620 --> 01:39:44,551 I get asked all the time, after my experience with LuLaRoe, 2170 01:39:44,586 --> 01:39:47,586 "Why in the world would you do another direct sales company?" 2171 01:39:48,448 --> 01:39:50,241 And the answer is, 2172 01:39:50,275 --> 01:39:52,586 I honestly feel it's apples and oranges. 2173 01:39:53,344 --> 01:39:54,793 Here's my nail collection. 2174 01:39:56,689 --> 01:39:58,586 I have like the entire collection almost. 2175 01:39:58,620 --> 01:40:00,068 I'm missing two. 2176 01:40:00,103 --> 01:40:04,413 If you look at the Better Bureau Business, the BBB rating, 2177 01:40:04,448 --> 01:40:06,896 I think LuLaRoe had an F. 2178 01:40:06,931 --> 01:40:10,034 And my new companies Plunder, Red Aspen, they have an A. 2179 01:40:10,068 --> 01:40:11,931 I think that says something. 2180 01:40:11,965 --> 01:40:14,724 So this is my old LuLaRoe group. 2181 01:40:14,758 --> 01:40:16,241 I struggle with this MLM 2182 01:40:16,275 --> 01:40:18,655 because I do like MLMs. 2183 01:40:18,689 --> 01:40:20,862 I love a lot of different MLMs, 2184 01:40:20,896 --> 01:40:23,137 and I like to support other women 2185 01:40:23,172 --> 01:40:24,965 and their businesses, of course. 2186 01:40:25,000 --> 01:40:28,137 So, I would like to say that I'm not for them, 2187 01:40:28,172 --> 01:40:30,310 but my nails come from them. 2188 01:40:30,344 --> 01:40:31,896 My candles come from them. 2189 01:40:31,931 --> 01:40:34,275 You know what I mean? Like, I feel like there's a purpose for it. 2190 01:40:34,793 --> 01:40:35,896 Um... 2191 01:40:38,310 --> 01:40:41,620 And I feel like they've been around for decades and decades. 2192 01:40:43,275 --> 01:40:45,448 My advice to anybody going 2193 01:40:45,482 --> 01:40:48,655 into an MLM or even considering it. 2194 01:40:48,689 --> 01:40:50,413 I don't care if it's nail strips, 2195 01:40:50,448 --> 01:40:53,896 protein shakes, vitamins, what else is out there, 2196 01:40:53,931 --> 01:40:57,206 make-up, um, hair products. 2197 01:40:57,793 --> 01:41:00,137 I don't care what it is. 2198 01:41:00,172 --> 01:41:04,310 Say no. Run as far as you can, as fast as you can. 2199 01:41:06,965 --> 01:41:08,620 I don't think the takeaway 2200 01:41:08,655 --> 01:41:11,034 from the LulaRoe's story is that it's wrong to have hope. 2201 01:41:11,827 --> 01:41:13,827 It's good to have hope. 2202 01:41:13,862 --> 01:41:17,551 The American dream preys on hope. 2203 01:41:17,586 --> 01:41:21,000 And so until we make the American dream 2204 01:41:21,655 --> 01:41:23,620 less all-consuming, 2205 01:41:23,655 --> 01:41:27,206 that hope will lead people to harm. 2206 01:41:27,241 --> 01:41:29,827 So, it's the American dream that has to change, 2207 01:41:29,862 --> 01:41:32,482 not our capacity to hope that has to change. 2208 01:41:35,310 --> 01:41:36,379 I'm not surprised at all 2209 01:41:36,413 --> 01:41:38,448 that LuLaRoe still exists. 2210 01:41:38,482 --> 01:41:41,620 This is just what the people who start MLMs do. 2211 01:41:41,655 --> 01:41:44,689 And if it wasn't LuLaRoe that was sticking around, 2212 01:41:44,724 --> 01:41:47,241 Mark and DeAnne would go start another MLM. 2213 01:41:47,275 --> 01:41:49,724 We're aware of the negativity, but guess what? 2214 01:41:49,758 --> 01:41:53,655 It is a minute amount compared to all 2215 01:41:53,689 --> 01:41:56,482 of the amazing positive things that are happening. 2216 01:41:56,517 --> 01:41:58,931 Forget about using the truth as your defense. 2217 01:41:58,965 --> 01:42:01,034 Use kindness as your defense. 2218 01:42:01,068 --> 01:42:02,931 That is the culture of LuLaRoe. 2219 01:42:02,965 --> 01:42:05,000 This is just the way we do business here 2220 01:42:05,551 --> 01:42:08,206 to make people think 2221 01:42:08,241 --> 01:42:11,068 that they're pursuing their own success 2222 01:42:11,103 --> 01:42:14,758 while they're actually making someone else rich. 2223 01:42:17,068 --> 01:42:20,586 It's just greed, pure American greed. 2224 01:42:20,620 --> 01:42:23,206 Each and every one of you are a part of the American dream 2225 01:42:23,241 --> 01:42:26,931 because you are entrepreneurs and you own your own business, 2226 01:42:26,965 --> 01:42:30,034 and I will tell you, some days are not so good. 2227 01:42:30,068 --> 01:42:31,620 Guess what? 2228 01:42:31,655 --> 01:42:34,862 So many days are so amazing. 2229 01:42:38,413 --> 01:42:39,724 LuLaRoe.