When your business is built on buying product in large quantities with unknown SKUs. And most of the product you buy is unsellable. It’s laughable to compare to a normal company which buys what they sell, and the specific patterns, sizes etc.
Thousands of Women Say LuLaRoe’s Legging Empire Is a Scam
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Re: Thousands of Women Say LuLaRoe’s Legging Empire Is a Scam
#12Is it just me, or are women more prone to falling for MLM pyramid schemes?
Yes, but it's likely because MLMs are more often marketed to them. The general pitch for these types of companies, as mentioned in the article, is "work from home selling to your friends online so you can spend more time with your family".
This is like saying children are more likely to waste their money on toys, or young men are more likely to fall for military recruitment propaganda. It's "true", but it's got some weird correlation/causation misunderstanding.
Re: Thousands of Women Say LuLaRoe’s Legging Empire Is a Scam
#13Is it just me, or are women more prone to falling for MLM pyramid schemes?
It’s more that they are targeted at people who are stable who want to bring some money in on the side without have a normal job. It’s even more rampant in transient families (military) when the employeed person gets orders to move somewhere else. If they had a traditional job, they would have to quit and find a new one.
Re: Thousands of Women Say LuLaRoe’s Legging Empire Is a Scam
#14"In March 2016 she paid $9,000 to become a LuLaRoe consultant." Uh, your first clue is that you don't usually PAY companies for the privilege of becoming an employee.
I'm not defending multilevel marketing pyramid schemes but if you are signing up for one, you are not an employee. You do pay to run certain types of companies (franchises). But if the franchise isn't supporting you then you are being scammed.
I'm not convinced franchises aren't far off from pyramid schemes and MLM as well.
https://en.wikipedia.org/wiki/Franchise_fraud
Math on a McDonald's franchise is here-
https://www.mymoneyblog.com/mcdonalds-franchise-cost-vs-prof...
"But if you spend 40 hours a week and only keep tabs on one location, it might really feel like you bought a job."
It's looking like 5-6% net return is what you get which is worse than an index fund and you are working your ass off keeping the business running.
Re: Thousands of Women Say LuLaRoe’s Legging Empire Is a Scam
#15Is it just me, or are women more prone to falling for MLM pyramid schemes?
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Re: Thousands of Women Say LuLaRoe’s Legging Empire Is a Scam
#16Not specifically about LuLaRoe, but The Dream[1] is an excellent podcast series about MLM’s, why people get sucked into them and why they’re not illegal (even though they probably should be).
Re: Thousands of Women Say LuLaRoe’s Legging Empire Is a Scam
#17Is it just me, or are women more prone to falling for MLM pyramid schemes?
Maybe women are more prone to publicly-facing pyramid schemes (like this or Herbalife) while men are more prone to economical pyramid schemes like Bitcoin? I really couldn't say.
Re: Thousands of Women Say LuLaRoe’s Legging Empire Is a Scam
#18Earlier quoted context omitted.
I'm not defending multilevel marketing pyramid schemes but if you are signing up for one, you are not an employee. You do pay to run certain types of companies (franchises). But if the franchise isn't supporting you then you are being scammed.
I'm not convinced franchises aren't far off from pyramid schemes and MLM as well. https://en.wikipedia.org/wiki/Franchise_fraud Math on a McDonald's franchise is here- https://www.mymoneyblog.com/mcdonalds-franchise-cost-vs-prof... "But if you spend 40 hours a week and only keep tabs on one location, it might really feel like you bought a job." It's looking like 5-6% net return is what you get which is worse than an…
They're similar, but I think the main difference is franchises aren't multi-leveled — they traditionally only have a single level between franchisor and franchisee.
Re: Thousands of Women Say LuLaRoe’s Legging Empire Is a Scam
#19Google Autocomplete is very instructive here. Lularoe is a .... Lularoe is a cult Lularoe is a pyramid scheme Lularoe is a ripoff. That’s enough information for me.
I know you're mostly joking, but you'll get the same for any conspiracy:
Fluoride is ...
Fluoride is bad
Fluoride is toxic
Fluoride is poison
Re: Thousands of Women Say LuLaRoe’s Legging Empire Is a Scam
#20Not specifically about LuLaRoe, but The Dream[1] is an excellent podcast series about MLM’s, why people get sucked into them and why they’re not illegal (even though they probably should be). 1. https://www.stitcher.com/podcast/stitcher/the-dream
Another great resource to learn about MLMs is Reddit's r/antiMLM. Judging from its activity, it looks like people are getting really fed up with these companies.