Ep 4. Toe Up

In LuLaRich season 1 episode 4, titled "Toe Up," viewers are taken on a deeper dive into the world of multi-level marketing and the LuLaRoe clothing brand. The episode focuses on the struggles of retailers who invested their time and money into selling LuLaRoe's now-infamous "buttery soft" leggings and other clothing items, only to find themselves drowning in debt and struggling to make any profit.

One of the main subjects featured in this episode is retailer Tiffani. She opens up about the emotional toll that LuLaRoe has taken on her and her family, as she tries to balance being a stay-at-home mom with running her business. Tiffani admits that she's "drowning" in debt and has resorted to selling her own personal belongings just to make ends meet. Despite feeling like she's reached her breaking point, Tiffani remains hopeful that things will eventually turn around for her and her LuLaRoe business.

Another retailer, DeAnne, apologizes to her team for the company's recent struggles, claiming that they're "fighting for [their] lives." She acknowledges that the company made some poor decisions that ultimately led to the current financial troubles, but remains optimistic about the future of LuLaRoe and its ability to bounce back.

The episode also touches on the role of social media in the success of MLMs like LuLaRoe. Viewers see how retailers were encouraged to share their personal stories and struggles with their followers on Facebook and Instagram in order to build trust and loyalty with their customers. Many retailers credit social media for their initial success, but soon found that the pressure to constantly post and engage with followers became overwhelming and time-consuming.

As the episode unfolds, viewers get a glimpse into the deceptive tactics that LuLaRoe allegedly used to lure in new retailers. One former retailer, Dale, explains how the company would promise new recruits the opportunity to make thousands of dollars in just a few months, without disclosing the risks and challenges that come with running a MLM business. Dale admits that he fell for these promises, but ultimately lost thousands of dollars and still has boxes of unsold merchandise sitting in his garage.

Towards the end of the episode, tensions rise as LuLaRoe announces major changes to its compensation plan, leaving many retailers feeling confused and frustrated. The changes include lowering the commission rate and requiring retailers to purchase more inventory upfront, which many see as a ploy to push more product onto struggling retailers.

Overall, "Toe Up" offers a raw and honest look into the complex world of multi-level marketing and the impact it can have on individuals and their families. The episode sheds light on the darker side of companies like LuLaRoe, while also highlighting the resilience and determination of those who refuse to give up on their dreams of financial freedom.