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00:06Hello, hello, hello everybody! Oh my goodness, I'm so, so, so excited about today and thrilled
00:11that it is live. We are not pre-recorded, we are live. Look at this amazing print. This is a
00:17Carly.
00:17Deanne is probably one of the most excitable, enthusiastic people I've ever met. It's palpable.
00:22I mean, you can feel it through your computer screen. Back when I started LuLaRoe, Mark and Deanne
00:31would go live on these calls. Don't put up with people who detract from our culture. If we're
00:36going to maintain the culture strong, the sooner that truth comes out, the sooner they can either
00:42make a decision to align or to leave. I would tune in every Tuesday when they would go live online,
00:48and I was so locked into whatever Deanne and Mark were saying. Every day you get to choose
00:52to wake up and think about what you're going to do and how you're going to strive to fulfill
00:57your own dreams. That kind of stuff made you fall in line.
01:04They wanted them to like, drink the Kool-Aid is what they say. You were at that point so
01:09immersed and those checks were coming in. If she told me to go jump off a cliff, I probably would
01:15have.
01:16There was a lot of like idol worship and celebrity.
01:21If you were somebody that was in a photo shoot of LuLaRoe, you were LuLaFamous. If you spoke on webinars,
01:27you were LuLaFamous. If you were somebody that had a decent social media following, you were LuLaFamous.
01:32I think they are celebrities in the LuLaRoe world. That's because Mark and Deanne make you feel
01:38special when you're with them, the way a celebrity makes you feel.
01:42As time kind of went by, it just felt that the vibe was something else was going on.
01:51I remember sitting at the convention and Mark starts spouting off like passages from the Book of Mormon.
02:02And I'm looking around going, I don't think everybody here is Mormon. Like, I don't understand why we're
02:06talking about this. Like, what does this have anything to do with selling pants?
02:11The most disturbing thing, it was when he compared himself to being misunderstood just like Joseph Smith
02:20was in the beginning. That's who he thinks he is. That's where his mindset's at.
02:27This is a meritocracy. How do you think we became the masters of the globe? We had each other's backs.
02:34And because of that, humanity became what it is.
02:40I started realizing that there was a lot of control. Controlling what we wear, how we looked, what we weighed.
02:47All the consultants dressed alike. Most of them were blonde. Most of them were white. And all obsessed with the
02:55prints.
02:56It was creepy. I sort of like came to this realization. I was like, oh my god, I'm in a
03:04cult.
03:25My name is Becca Peter. And I have spent the past four years talking about LuLaRoe.
03:35I grew up in Seattle. I have two kids. I have an online shop where I sell washi tape.
03:41And for fun, I like to research what's going on with LuLaRoe.
03:492016 is when LuLaRoe really blew up. I ran a Facebook group and a lot of people in my group
03:56were buying LuLaRoe. It seemed like how they were charging sales tax was strange.
04:02But these women were like telling everyone else that we're doing it right and everyone else is doing
04:09it wrong. And there was just absolutely no convincing them that maybe they could be wrong.
04:16It definitely bothered me that someone was wrong on the internet.
04:19My husband always makes fun of me because I'm like that person. I try not to be, but...
04:26LuLaRoe really marketed themselves as being an opportunity for women.
04:32There's an appeal for a lot of stay-at-home moms. You want to be home and be with your
04:39kids,
04:39but you want something more. You want to be an adult human being who's contributing to your
04:44household and to society. Helping families, that was their big thing. They're just family orientated.
04:51So it's like, oh wow, yes, I work for this good company. We're blessing lives because that was the
04:56thing, blessing lives. LuLaRoe really takes advantage of these feelings that a lot of women have
05:05by giving them the community that they want and making them feel like they are being a successful business owner.
05:14There was a lot of times in LuLaRoe where they touted that they were women empowerment.
05:18I wanted to give women an opportunity to help ease the stress of financial stress,
05:24to be able to give something to their families, give back to their husband,
05:29and that if the two of them could come together, husbands and wives or significant other...
05:34It's similar to an empowering message of feminism, but at the end of the day, it's not empowering. It's the
05:40opposite.
05:48What inspired the empowerment of women for you?
05:54Can I jump in there and then you can talk? Yeah, yeah. Because, yeah.
05:58Yeah, I know I have something that... No, I watched my wife shatter glass ceilings. I mean,
06:07there was no... She was able to make the money she was willing to go out and make.
06:11I was thinking, I did? I shattered a ceiling? I was trying to think of when I did that.
06:16No, she... I love you.
06:17She literally went out on the road and sold 20,000 maxi skirts and made hundreds of thousands of dollars
06:24profit in a very short period of time. And so the empowering women came from me being married to a
06:30powerful wife. I think LuLaRoe hid behind the guise of uplifting and empowering women. We were
06:43supposed to be empowered at first, and then the husband was supposed to take over.
06:49And the roles were supposed to be changed.
06:56The woman's place is in the house. You need to always let your husband be the man. You should
07:02never do anything to make him look bad. It was very toxic.
07:11Deanne barely recognized that Tiffany existed.
07:14It was frustrating because it's usually Paul's wife, Tiffany. It was my business.
07:19Paul got to do the fun part in front of the camera. No offense. But, you know,
07:23I felt like I was doing, you know, 90% of it.
07:28LuLaRoe is not trying to undermine patriarchal family structures. In fact, they're reinforcing them.
07:36They're using cheap language of feminism, girl boss, empowerment, to latch on to this pop feminist
07:45message that doesn't actually tangibly change anything.
07:56You always have to make sure that men have some, not just some level of power,
08:01but have more power. Women can be strong, but there's a time to let him be your hero.
08:08My mom was very strong and she raised a lot of strong children.
08:13I speak a lot about her because I think she was misunderstood.
08:18In the 60s and 70s, it was a hard time. People didn't know what the roles were.
08:24You know, you've got women who went from leaver to beaver and she always had an apron on.
08:30Hurry up boys, you're going to be made for school.
08:33And then it just changed and I wish I could remember what happened in the 70s. I don't know.
08:42My mother fought for equal rights for women to have women's rights.
08:51Maureen, startup Deanne's mom, wrote this book called The Secret Power of Femininity,
08:57The Art of Attracting, Winning, and Keeping the Right Man for You.
09:03Stand before a mirror in the privacy of your room and say to yourself,
09:08I'm just a helpless woman at the mercy of you big, strong men. Stamp your feet daintily,
09:14saucily, and shake your curls as much as to say, I am furious. But what can a little girl like
09:20me
09:21do with a big, strong man like you?
09:26Deanne used her mother's book as an example and taught trains out of it. The way she taught it
09:34was almost like how to use your special parts to get your husband to do what he wanted to.
09:40I think she actually said that once. I was like, oh gosh.
09:42Deanne said something to the effect of, all you have to do as a woman is just get on your
09:47knees for
09:48five minutes a day and please your husband, and then your husband will let you buy whatever you want.
09:53And I thought, well, that's very unprofessional advice.
10:01It's all about appreciation, accepting, and admiring. And then he'll do the same to you.
10:07It really is the golden rule.
10:13My experience was that my husband was involved in my business and it brought us very close.
10:21But it doesn't really matter which way you slice it. When you start bringing in more money,
10:26and when you start diverting the time or changing the things that you invest your time in,
10:31the dynamic of your family changes. When things were challenging in my marriage,
10:37the suggestion was to read The Proper Care and Feeding of Husbands. The book is geared towards
10:44like being submissive, not really having contrary feelings.
10:50I guess it just wasn't really in my wheelhouse to do that. So it didn't really work for me.
10:58When mama became the moneymaker, it was like, wait a minute, wait, wait, wait, hold on,
11:03hold on just a minute. I gave you $5,000 of my dollars. And suddenly your hobby is like taking
11:09over our family or whatever. You gotta let us in there. It's your money or whatever, but it's our
11:15money. We're married, okay? And you gotta let us help.
11:24They preach this message about retiring your husband. The ultimate goal was that your husband
11:31did not have to work outside the home, that he could stay home and help you with your LuLaRoe business.
11:37I loved how involved he was. It is so obvious to me that it makes him feel so invested.
11:44I do my best to keep him involved and give him a connection to it so it's not all mine.
11:51Looking up above the question and answer a bit, it says 1 to 2 p.m. men's chat. Do you
11:56know what
11:56that refers to? Yeah. What is that? Men's chat. Men got together to talk about how they can
12:04better support their wives. What do you do? Oh, I wash the dishes and I take out the trash and
12:11I get the kids to bed while my wife is going live. Oh, okay, maybe I should do that too.
12:20When I became mentor, which is the highest rank in LuLaRoe, we were asked to fly out to California
12:27to have what was called a mentor's interview. We sat down, they talked a little about my team,
12:32and then they turned to my husband and they said, well, how's your marriage going?
12:38Your marriage would definitely be better if your husband quit his job. My husband looked at me,
12:45I looked at him, and he was kind of whispering, I'm quitting my job.
12:50We sat there for almost an hour while I cried as they were basically telling us everything that was
12:56wrong in our relationship. And I knew that they were just wanting him to quit his job so we would
13:04have all our eggs in one basket. We would be indebted to them forever. We wouldn't be able to walk
13:13away.
13:16My husband was very much opposed to it. I talked to Deanne and she said, when the money starts rolling
13:23in, he'll be on board. I said, it's already rolling in. I'm ranking up, my team is growing,
13:31I'm having insane launches. I don't know what else I could do to convince him anymore. She looked me
13:37dead in the eye and she said, well, maybe you should find a new husband. Here we go. I got
13:41a size.
13:43LuLaRoe's push to get women to retire their husbands is really one of the most sinister
13:52and devious parts of LuLaRoe. They will tell you that it was in order to bring families closer together
14:01and in my opinion, it was in order to make families completely dependent on them.
14:07You're kind of trapped at that point. When somebody says, why do people join? Well,
14:13they didn't join. They were lured in. But this is luring a family into a losing proposition.
14:19People that make a lot of money in multi-level marketing are almost always the people who got in
14:25early. You can't make money unless you recruit people. Over 80% have nobody below them. They have to lose.
14:44When you're inside a lie, a lie that has told you that you're in the right place at the right
14:52time
14:53and that the people around you have the right answer and everybody else out there has is wrong.
14:59You belong into this community of winners, enlightened people. This is what a cult does.
15:06These people at the top are portrayed as near godlike figures. They are enlightened beings and
15:14the epitome of good people just trying to help you.
15:22That's the culture of a cult. Remember, when you work it, you work it and you put your whole
15:30soul, whole heart and soul into it and you really, really put it to work for you, okay?
15:36You know, we'd have motivational calls that we would tune into to give us advice or
15:48yeah, motivation of what to do better.
15:52Don't think, well maybe, what if, and I don't. Remember, it's what you say to yourself every single
15:57day gets to determine the success of your business. If you're giving yourself self-doubt and you're not
16:02seeing things, you're telling yourself all the things that you can't. I don't know why.
16:06Why isn't it happening? I wish it could. I don't even know. It just got to the point where I
16:10was like,
16:12I, this is, I can't even.
16:18Welcome to Leadership ATL. How are we doing this morning?
16:25The topics that we discussed at the events did not talk about the things that the people needed
16:31in order to be successful retailers. I gave those ladies my best and in turn,
16:36I saw the rewards. I didn't see them right away. Training, our, our component leans towards the
16:44motivational side. Order fresh inventory every week. In my opinion, the minute you get done doing the
16:51pop-up, you gotta place another order. How do you build successful business? Keep buying,
16:57keep reinvesting, and hustle hard, and get people to sign up under you.
17:03Any other ways that Luluro puts on trainings?
17:06They have a leadership training for people that would like to improve their businesses.
17:17Improve businesses by building their downline. Coming together, getting inspiration,
17:23learning how to's from each other. What kind of how to's? I don't know. We actually needed technical
17:30help. We needed real business training instead of, you know, this feel good book that they wanted
17:35you to read that week that they hired someone to come talk to you about. Did you ever play a
17:40role
17:40at Luluro events where the goal was just to hype people up? Yeah. Did you do that a lot? Yeah.
17:47You don't need to work out more. You don't need to read more books. You have every piece of the
17:53puzzle
17:53already there. You just don't... Multi-level marketing is the village where everything is possible.
17:59The flip side of that is if everything is possible, nothing is true.
18:06You have to convince people that this is going to make it all easier for you.
18:12That's really the message. And LuLaRoe caught that. LuLaRoe definitely wanted you to amp up
18:20the sob story. It was a rags to riches kind of story. And I had that story.
18:27We had debt from every which way. But I scrounged up that money to make it happen because I saw
18:33the potential in LuLaRoe. My husband... Having a full-time job, juggling three children,
18:37and being in debt. I told everyone if I can do it, anyone can do it. So you're asking them
18:44to share
18:44those sort of stories on the... I don't know what they were going to share. I have no idea. I'm
18:49just
18:49telling you about their lives. And what they choose to share was their doing. You were asking them to
18:57share success stories. Maybe they had a good day and they got their dishes done and threw in a laundry
19:04and made a job chart. Mark and Deanne know my story.
19:15We literally were struggling. I was on low-income assistance. There were four people and a dog
19:21living in an 825-square-foot house. And now we have a 2,100-plus-square-foot house with an
19:26in-ground
19:26pool in the backyard, two-car garage, and a beautiful neighborhood. And I was able to do that because of
19:34LuLaRoe. I really want to be in LuLaRoe for the rest of my life. As long as LuLaRoe is around,
19:40I want to be a part of it.
19:41We're celebrating people who grabbed the bull by the horns and did things.
19:46Hooray for you! Yes! We give out trophies.
19:51Consultants were always sold a message that you could achieve these things that these other
19:57consultants have achieved. Look at these mentors. Look at your upline. This could be you.
20:05We were encouraged to always have our hair done, always have our makeup done,
20:10do whatever it took to put off an image that we were successful business women.
20:17That's when it shifted more from not only just purchasing material goods,
20:23changing the way you looked. There became a push for you to be a certain size.
20:37Mark and Deanne did take us out to dinner one night. We were looking at the menus and Deanne turns
20:47to
20:48Jordan, her son, and she says, what do you want to split? And she goes, Courtney, the reason we split
20:55dinners is because our stomachs are really small. We've had the gastric sleeve. You have got to go down
21:02there. I was like, well, I'm just going to order Brussels sprouts now.
21:13Hi, Deanne. Hello, Dr. Mitchell. Well, Deanne had surgery 23 months ago. And how many pounds did you lose,
21:24Deanne? I've lost 72 pounds. 72 pounds. And tell me, uh, how was your experience, uh, with obesity,
21:33not for me, and also Dr. Michelle, after your surgery? Oh, I was really nervous in the very
21:38beginning because you don't know what to expect and you're kind of fearful, but excited at the same
21:43time. We noticed that there were changes in Deanne and how she looked. It was kind of a,
21:48you need to do be doing these things too. We have lovingly and excitedly referred to you to,
21:56I think we brought, brought down, I think 18. I counted the other day, 18 that have come from
22:01the United States. I remember being on the cruise and one of my friends was like walking around in
22:05this cute little bathing suit. And I was like, oh my God, girl, you look amazing. And she's like,
22:10well, I got the weight loss surgery. If you're interested, let me know. Like I can hook you up.
22:15They just wanted to be cute. They didn't want to be big. Bottom line is they didn't want to be
22:19big.
22:19They didn't want to be around big girls. So if you were offered and you were in good with Deanne,
22:25you got the offer. I've been accused of telling people they had to go down there. No,
22:31they come to me sobbing and crying, hating themselves. How come you're so skinny? I merely do what my
22:38girlfriend did. I went to Tijuana. If you want to know about it, I'll tell you.
22:44She goes, my sister Lene will drive you down to Tijuana. Dr. Michelle will perform the surgery
22:52and then fly back home. It's so easy.
22:56A week later, I was added into a text group called the Tijuana Skinnies.
23:08Lene would text me almost weekly asking when I was going to go down to Tijuana. I felt so much
23:16pressure
23:18that I really did start looking into it. Someone suggested to me, they said,
23:24why don't you try that balloon in the United States? So I decided that was a safer route to go.
23:30Right before Christmas, I went and had that done. The day after Christmas, I walked down the stairs
23:39and fell to the ground. I told my husband, you have got to take me back to the hospital.
23:46Something is very, very wrong.
23:49I remember thinking, I'm not going to wake up. I just about died.
23:56I texted Lene and let her know that the balloon was gone. I got a basically, I told you so
24:03from both
24:04Deanne and Lene. The gastric sleeve is the way to go. When can we get you on the next trip
24:10down to Tijuana?
24:15Finally, I said, no, I'm not going to go. From then on, Deanne acted like a different person to me.
24:28My self-esteem took the biggest hit. And that was really my turning point on what have I done to
24:37myself?
24:37What have I done to my family? These people are using me for money.
24:44And they'll walk over anyone in order to make that money happen.
25:03I had PowerPoint presentations. I put together that had pictures of my family.
25:10I remember putting them up there and being like, this is so fake. I was being pulled away more than
25:16ever. Get your, your life assistant, your nanny to do the other things that aren't bringing in money for
25:22you. You work on the things that bring you money and you get out and you think of all the
25:28ways that
25:28you need to make money. I remember my husband saying, I cannot believe you're paying someone
25:32to cook dinner for us. And I said, well, who's going to have time to do it?
25:39It's okay for your kids to have cereal dinner for dinner. I mean, not every night, but
25:45they're going to live. I've got to work. It was always all about work. And then I realized that
25:53people under me were spending more money than they were bringing in.
26:01The few people who do make a lot of money are relentless. They are working day and night.
26:09But in multi-level marketing, people at the bottom can't possibly duplicate the number at the top.
26:14It doesn't add up. It cannot be done. You're still selling a bogus income opportunity.
26:24The company keeps adding competitive retailers around you. People that you had sold as customers
26:30have now gone on to become your competitor. There is a demographic limit to how many people
26:36are going to buy LuLaRoe leggings. All of a sudden, my town had two, three, four, five, six,
26:43seven consultants within a small radius. And I would talk to my sponsor. The idea that I was told was,
26:51find a way to get more money to pay for more inventory. Open a credit card if you have to,
26:58because that's the only way you're going to have a profitable shop.
27:01We had lots of people joining the company. There were a lot of people whose expectations were not met
27:08financially. And the reason that was always given is, well, it works if you work it. And I guess
27:16you weren't working hard enough. This business isn't for everyone. It is hard work. It is a business
27:21that you own. And the business responds to the amount of time, effort and energy and discipline
27:28that you put into it. People will come to me with an excuse for why they can't succeed. And I
27:33will tell
27:33them, I'm sorry, that's an excuse. Heaven forbid, I show up and go, no, I just screwed up because I'm
27:39a screw up. No, no, no, it can't possibly be that. It has to be something else. Because some people
27:46took
27:46that box of clothing and turned it into a million dollars. And some people took that box of clothing
27:50and put it in the closet because it scared them. The question is, what did you want out of it?
28:07Back in 2016, I got a big box of inventory. And I noticed that one of the things that I
28:13pulled out
28:14of the box was heavier than normal. And it looked like there was condensation in the bag. And I was
28:18like, that's weird. I literally wrung them out. And like, a massive ton of water came out of them.
28:27And I thought, what the? So I reached out to LuLaRoe. They say, it must be UPS.
28:36I say, but only one pair of leggings and the whole box is wet.
28:40And they're like, how strange. That's so weird. Well, why don't you go ahead and set those aside.
28:45And when you have enough refunds, yes, you can process the refunds. A couple shipments later,
28:50I open up the box and there's this horrid smell. And I'm just like, what is this? It was like,
28:57whoosh. It was so bad. I remember filing a ticket. And in the drop down menu,
29:05there was stinky leggings was one of the reasons that you would be making a return.
29:10They said, well, you can put them in the freezer.
29:13The freezer is a really good trick to making the stink go away.
29:18And I was told, move on. What is happening?
29:26So when did you realize that LuLaRoe was sending out a whole knee?
29:32Oh, when I saw them sitting outside.
29:35Oh yeah, I would walk by them every day. I'm like, why is all this stuff in here?
29:41We moved into 127,000 square feet. And we've now, we're busting at the seams there. We got product in
29:47the parking lot and looking to move into a bigger building. So it's, it's.
29:51I realized that they started putting everything in these cages, you know, storing it outside.
29:59I did get clothing that smelled absolutely horrible. Like it had been infiltrated by rats or something.
30:10We as mentors brought up our concerns to home office.
30:16They acted like we were out to get them and that there's no problem.
30:23The product started to change, whether it was zippers, seams, that really started to kind of
30:33deteriorate. I started to notice things, people complaining, stuff that just wasn't right.
30:39You would be dealing with pinholes in the product, leggings that tore after an hour, hems being way off base.
30:49You could open up a shirt and there would be like a slightly lighter square where it had been
30:54folded and exposed to the sun. And they said, just knock it off half price and sell it to someone
30:59else
30:59as a night shirt. I said, I'm taking the hit on this.
31:04They were onboarding something crazy, like 500 people a day. I actually said, I will personally
31:12take a cut in my bonus check right now. If you slow down this onboarding so that current retailers
31:20can get their stock. I was told no.
31:25The material was changing. The buttery soft leggings that I fell in love with
31:31were getting thinner. Now we get emails and message, Stella, again, those leggings have
31:37holes in it. My name is getting tarnished as a salesperson for selling damaged goods.
31:42I'm having serious issues right now. I started getting boxes where the clothing inside the boxes
31:48were two years old. You know, you've claimed that we sold out of all of this. And if we did,
31:54like you claim, why is it in my box a year and a half later?
31:57Someone had said that they got the same print in the same week. That's bound to happen. We're not
32:04shipping old product. No.
32:06We couldn't keep up with the demand. I mean, our daily quota was around 100 prints. Patrick was just
32:14doing whatever it took, regardless of what that was putting on, you know, their employees.
32:19I was just trying to show the other designers tips to cheat the system. Like, okay, you made this art,
32:28take two things out of it, recolor a different way, completely new art piece.
32:33It became known to us that LuLaRoe made what I would call a shit product. In fact, the uglier,
32:42the better, the better. It doesn't matter. They don't see it and they're going to buy it anyway.
32:50I actually know who made this print. It's funny. Little did I know this is going to end up looking
32:55like a penis. This is a hamburger print. Don't think he meant to direct you straight to the vagina
33:11or what the vagina would look like if it was a hamburger. Yeah, see, more just vaginas. More
33:17vaginas. All of these, all in the crotch area. They're all in the crotch area.
33:22Y'all just look like artistic vaginas. What is that? I don't even know what that is.
33:33It just kind of was always production. I mean, it was just somebody else's fault. Or it was just,
33:43this is a positive. This is great. There's a star on that print, actually. This is awesome. Like,
33:51you are winning. As the issues started to get more and more prevalent, my posts were removed. When I
34:00commented about being on hold for hours, those conversations were removed. That's not part of
34:07our culture. We don't talk negative about LuLaRoe. They didn't care that I was struggling. They were
34:15coming up with solutions of ways for me to continue to buy. What's your other option? You own these pieces.
34:23When they're in your hands, they're yours. You've paid for them. You own them. And you just needed to
34:28sell. You do start to just blame yourself.
34:36You know, I have threatened to lobby Congress to pass a bill that in every single maternity ward of every
34:44hospital, you have to put a sign over the door that says, welcome to life. Your experience may vary.
34:53We have equal opportunity. We do not promise equal outcome. What people did with it, how they saw it,
35:02how they participated in it, is up to them. I am here to tell you and I will stand behind
35:07it because
35:07I own my data. I know the facts around this. We have the highest quality control in the industry.
35:15We did not have a huge problem with wet leggings. We didn't have a huge problem with damaged leggings
35:22and products. We had a huge social media problem. And we had a lot of noise over very little actual
35:30issue. We were big and we grew very fast. But we got our arms around it and we kept all
35:37the pieces
35:37there. And it was a fun and exciting time. I was being fed these lies. You're gaslighting me,
35:48telling me that it's not happening. And I'm physically seeing it with my own eyes. And you're telling me
35:55I'm crazy. Gaslighting is essentially an attempt, not just a lie, but to tell someone else that their
36:06experience of the world is objectively, rationally false. A lot of women who have sold for LuLaRoe
36:15essentially say that when something would go wrong, what they heard is either what you're saying
36:20isn't actually happening, or to the extent that there is a problem, the problem is you.
36:31I am so beyond excited to be in this room with all of you phenomenal leaders.
36:36I'm here today to talk to you about escaping the victim mindset.
36:40We have this thing called the drama triangle. Anyone in this room familiar with it?
36:46There's three roles in the drama triangle, persecutor, rescuer, and victim.
36:53There are many others experiencing very similar circumstances
36:57who are managing to achieve success and happiness despite those circumstances.
37:04Other people are experiencing your same problem and they're not whining about it. What's wrong with you?
37:11If you complain or you criticize, then you are just taking on this mentality of the victim loser.
37:26It's so profoundly undermining and I think it really pokes at a lot of women's insecurities.
37:35When victims are telling their story repeatedly, they're seeking validation.
37:39They're looking for someone to say, yes, you have a right to feel that way.
37:42And usually it comes with a lot of exaggeration.
37:47Do not let negativity fester. One person having a bad day
37:51can sour the enthusiasm of the other hundreds of people in your group. Don't let that happen.
37:57Use that delete button. It's really powerful.
38:02It felt devastating when I would get scolded basically like a child. Your attitude sucks.
38:09You're not working hard enough. I've heard some whining lately also about,
38:14well, my inventory's stale. No, you're stale. I'm just so upset because my business can't succeed
38:19because I don't have the leggings to take care of all my customers. Well, guess what?
38:23Then you're obviously in the wrong business and I'm here to-
38:26I started to see that bullshit in like full display. I felt so betrayed by this company.
38:35People want to be part of something and they felt with LuLaRoe like they were getting to be part of
38:42this big special thing. But eventually for most of the consultants, they came out losing. The things that
38:52they thought were real, when you discover that those things aren't real and that these people aren't your friends,
38:58they were just using you, that's really hard.
39:03People discover, well, the money isn't really there. That's reality beginning to dawn.
39:12It was the opposite of why I signed up. It was not like part-time work for a full-time
39:18salary or, you know, all of like these slogans that were kind of
39:25told.
39:26If you guys are wanting any outfits, let me know. I've been putting together outfits for people.
39:31I couldn't keep up. This is what I would say to myself, like, well, people work for the airlines.
39:36People work in taxis, Ubers, 7-Eleven. I mean, I would go on and on in my head about
39:42so many different people that work so many different jobs that require so many different hours. Or people
39:46in the military. I mean, I would go so far in my head and be like, okay, well, let's just
39:49pretend that I'm in
39:50the military. And this is my duty because this is what I have signed up for. So I can't complain.
40:00To live in that limbo of it kind of being up to you, but if you don't do it, then
40:05you're kind of in
40:06trouble. And if you do do it, you're praised. And if you don't do it, well, I mean, you actually,
40:12there will be consequences. It didn't feel like a choice.
40:17People on our team had massive problems. There was a ton of pressure on us. We had a really big
40:24team. Our son was in the business. My two sisters were in the business. Paul's sister was in the
40:30business. A lot of our friends were in this business. To see them opening box after box after
40:37box. And to be just heartbroken and scared. And there was just continually no information.
40:45I kept expressing these concerns. That's what got me suspended.
40:52They made us fly out to California, ask for our business back humbly. You know, that's kind of where
40:58that started to go south for us. In 2017, I quit corporate. And then I remember I was in Germany
41:11and I got an email from legal and it was like a cease and desist. And like, they told me
41:16I can't talk
41:17to my aunt anymore. That I couldn't be a part of LuLaRoe anymore. Who is Sam? Sam is Sam Schultz,
41:25and he's my nephew. And what's his role with the company? None. What was Sam Schultz role? I can't recall.
41:38It was a huge deal when he was terminated. Of course, rumors were flying. I don't know. Personally,
41:45there's a lot of rumors. From the rumor mill around LuLaRoe, Sam was terminated
41:55because he was having relationships with many of the retailers. There are rumors that you were fired
42:04for inappropriate behavior with consultants. Yeah, it's not true. Everything was just crazy. I was like,
42:13what the fuck? I didn't want to do it anymore. I got sick and tired of setting up these crazy
42:26huge
42:26parties and selling two items. I made $15 today. I don't know what's going on. I'm paying $28 for a
42:33piece of fabric that already has holes in it that is cut terribly. That's bullshit. I'm sorry. Do you
42:39know how many consultants have been incapable of giving their children Christmas or birthday presents
42:45because they invested thousands of dollars in a company that doesn't give a crap about them?
42:50Part of how LuLaRoe kind of starts to come apart at the seams is that women connect
42:56beyond their own communities and borders. More than 16,000 women have joined a Facebook group called
43:02LuLaRoe Defective to share their complaints. Up until that point, there wasn't a place
43:09anywhere online where you could say anything negative about this company. The defective
43:13group started and it just very quickly went viral. Often it starts off relatively innocuous,
43:21you know, talking about, for example, manufacturing problems. Is anybody else getting leggings that
43:27tear apart like tissue paper? And then you see, oh, the lady in Chicago is and the lady in Louisiana
43:32is
43:32and the lady in Nashville is. I've got so many holes of juice from here. I don't even know where
43:38I'm going.
43:38They're like literally guiding you into debt. I'm just trying my best to sell these ugly
43:44fucking leggings or ugly fucking shirts. Something changed and it's not a good change.
43:51I remember joining Defective. I'm ready to leave. I have stories to tell. I'm done with this company.
43:58I need this group. I need to know that I'm not crazy. I'm losing money at this point. I'm losing
44:05friends. My business is being destroyed. I started digging around. I was like, these people get it.
44:12We all as consultants had individual pieces to a much bigger puzzle. And if we could share,
44:19we could find all of the answers. Instead of crying or telling myself that I'm a bad person,
44:27I said, no, you're not taking advantage of me anymore. So what do I do?
44:35What do people do these days when they're looking for help? I posted it on my Facebook.
44:42I posted it on my Facebook. Does anybody know a class action attorney?
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