As of May 2022, LuLaRoe has managed to get its rating up to a C by the BBB. MLM companies say they provide women with an opportunity to become entrepreneurs and make money on their own schedule. Thats why, Katie said, her upline the sellers at higher levels on the team she was a part of were constantly encouraging her to buy more clothing, even hosting giveaways for their team, for things like iPads, to encourage bigger orders. (The campaign, led by conservative activist Phyllis Schlafly, was eventually successful the ERA still has never been ratified by Congress.). The community theyve created is like this tidal wave, says Savvi seller Schwaller Patterson. How many songs did the Beatles write for other artists? You earn even more for having brand partners join your team, as well as for the volume of their sales and yours. When the company announces the launch of a new style, design, or color, LuLa fanatics comb through the groups to find the lucky consultant who can sell it to them. Its unclear what LuLaRoes financial situation is now or how many active consultants they still have. I was so angry all of the time.. LinkedIn has officially entered its cringe era, and its working. Critics have a less charitable interpretation, pointing to findings like a 2011 report by the Consumer Awareness Institute that alleges 99% of direct sellers lose money. Center: Mark and Deanne in a promotional video for the LuLaRoe 2018 cruise. She rapidly moved up the ranks, and eventually had a team of 15 people under her, known in the company as downlines. She started putting inventory in her dining room, eventually converting it into a full-on boutique. Get the Spanx Look at Me Now Seamless Leggings for $68. During the first of two 2017 LuLaRoe cruises in February, DeAnne posted a video of a huge pool filled with bikini-clad consultants. The company says it implemented the program to incentivize consultants who were quitting to send back all their inventory rather than sell it at wholesale, which hurt the overall business. You'd have to check under the "Terms and Conditions" to find that you're actually joining an MLM. This places most products in the $35$65 range, with many falling closer to $35. In October and November of 2017, six more class-action lawsuits were filed, this time alleging LuLaRoe was running a pyramid scheme and cheating consultants out of thousands of dollars., As one former consultant claimed in a May 2017 lawsuit, Heinichen v. Lularoe: [LuLaRoe] sells you [a] minimum $5000 worth of clothing and tell you think like a retailer. When you submit these as damages they are declined. After attending a few parties hosted by friends, Annie signed up to host a few herself. 2019. In this way, shopping for LuLaRoe is like a treasure hunt. He was selling overstock items from big name brands at a discount. A multilevel marketing plan is a legal business model for selling goods and services. Once a saver, always a saver: Warren Buffett says generational wealth isnt what it used to be in his annual letter Salesforce is paying Matthew McConaughey reported $10 million a year for creative help despite laying off 8,000 CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. At her peak, Katie says, she was selling so many items she once got a bonus check of $8,000. Where Is 'Murdaugh Murders' Buster Murdaugh Now? LuLaRoe distributors are required to purchase an initial inventory of clothing and marketing materials that cost between $4,925 and $9,000 (as of 2017[update]) and are recommended to keep around $20,000 worth of inventory on hand. LuLa Roe not lululemon. To earn additional income and really increase your earnings, you can also build a team under you. Mark called customers pigs! Another former consultant, Karyn Hay of California, is a new mom who works full-time in mental health services. Katies popular mentor kept being trailed by other consultants who seemed to just want to be near her. Kenny, Amelia, Nicole, and Jordan are their biological children. [11] By April 2017, LuLaRoe had more than 80,000 distributors. More than 80,000 women believed they could do it too, and in just four short years, this army of women turned LuLaRoe from an informal side hustle by twin Mormon grandmothers into a company worth an estimated $2 billion. It was founded in 2013 by DeAnne Stidham, a California woman described by the company as a struggling mother who had the idea for the company after sewing a skirt for her daughter. Honey & Lace was later rebranded as Piphany. Another $4.5 million lawsuit was filed in California in November 2019 on behalf of a group of consultants, who are . In 2019, DeAnne said in a video that she hadnt been close to her sister for a long time. Diannes daughter-in-law Whitney told Buzzfeed News that LuLaRoe completely fractured the family, implying the twins business dealings had something to do with their falling out. . The statement neglects to estimate any costs to sellers. The state of Washington is also suing the company for operating a pyramid scheme. Basic-Ingenuity 3 yr. ago [deleted] 3 yr. ago I just googled them. In the documentary, Mark Stidham declared that joining LuLaRoe "is a business that you own. Merchandise arrived moldy! DeAnne and Mark Stidham's family tree is complex. We're interested to see what happens because the ball is no longer in our court, Furst said, adding that he wasnt aware of any criminal investigations into LuLaRoe. I assume what this means is: Savvi is the Stidham's new-ish MLM to supplant LuLaRoe since LuLaRoe is in the toilet. She said she paid $10,000 to join the company in April 2016 with the hopes of hustling enough on nights and weekends to pay off around $120,000 in student loans from nursing school. It's a business model that has been around for decades and includes multibillion-dollar firms such as Amway, Herbalife (HLF) and Avon (AVP). I wanted to know if anyone else has seen the flood of "Leaving LulaRoe" videos. To her, the implication was clear: If you couldnt make your business work, you just werent trying hard enough. According to the newspaper, four of DeAnnes siblings also adopted children from Romania. Stidham was selected by the New England Patriots with the 133rd overall pick in the fourth round of the 2019 NFL Draft. Theres a lot of guilt.. People pay for clubs. Kenneths wife, Jill, serves as a spokesperson at official events. People Are Writing Them Off, But Can the Green Bay Packers Win the Super Bowl? LuLaRoe accused Piphany and several former LuLaRoe representatives of poaching LuLaRoe sales and filed suit. Its just a constant cycle.. I reached out to multiple members of Diannes family, and Dianne herself: Most didnt respond, or said they did not want to comment. Piphany is the New LulaRoe. It is clear when talking to women like Katie and when reading Facebook posts in the group that they blame themselves for what happened. what is lost are the stories of the families who say their savings were depleted after they bought into LuLaRoes dream. Personal purchases are also highly encouraged: Savvi sellers have been prompted to spend from $249 to $999 on packages of Savvi clothing at sign-up. (LuLaRoe disputes these claims.). Even their "Social Links" section is blank. The lawsuit filed on behalf of 190 consultants in late 2019, Belinda Hibbard v. LulaRoe LLC, detailed what they allege was the ideal LuLaRoe consultant: Defendants targeted women, stay at home mothers, spouses of active military members, and other groups who had working capacity and some access to credit or savings, but also, generally, a lack of formal business or finance training., In March 2015, there were 1,000 LuLaRoe consultants. Brand partners can earn commissions on retail sales, team volume, and other bonuses. MyDyer, the companys leading supplier, sued LuLaRoe in 2018 over $49 million in unpaid invoices. Many. For me, thats what I am selling.. Joining LuLaRoe wasnt cheap. [17][18][19], In December 2018, in the midst of mounting debt, layoffs, and an exodus of top sellers, LuLaRoe was sued by its chief clothing supplier, Providence Industries, for nearly $49 million. When she tried to report the damages to the company, she said she was given the runaround by customer service. Beyond Yoga. That being said, it was exhausting talking with DeAnne and trying to keep up with the million miles a minute she would talk to you at. MLM participants can earn money by both selling products and by attracting new members to join their sales teams. Some went bankrupt. Cant compare to Lululemon. [35] In September, LuLaRoe abruptly ended the changes to its return policy, which it had described as a "waiver". The company also does launches of collaboration with brands like Disney, creating limited-edition, highly coveted leggings and dresses. Women's Health may earn commission from the links on this page, but we only feature products we believe in. My friends are all zyia reps and they sound the same as the Lularoe chicks from he video. Last month, it announced it would make it easier for customers to get refunds for defective merchandise. Get the Girlfriend Collective High Rise Pocket Legging for $88. Headquartered in Salt Lake City, Utah, Piphany is an independently owned and operated companyit is not affiliated with any other direct selling enterprise. The documentary shows that this was the beginning of the end for the company. Pretty sneaky since most websites provide a "Terms of Service" or similar link which describes how you agree to use the WEBSITE, but in this case it's about the membership terms. Her father, Elbert Startup, was a great-grandson of Hyrum Smith, the older brother of the churchs founder and prophet Joseph Smith on his maternal side, making the Startups Mormon royalty. In the months after LuLaRoe was incorporated in January 2013, Dot Dot Smile was founded by Stidham's daughter Nicole Thompson; Stidham's twin sister Dianne Ingram launched Honey & Lace; and her niece Buffy Bandley started Agnes & Dora. (Savvi marks the company's second rebrandit was previously known as Piphany.) You know, juice that cures cancer and stuff. The company requires an annual fee of $49, plus a monthly service fee of$9.95 per month for brand partners (a designation that qualifies sellers to earn a commission from the sales of those they have recruited to the company). First published on May 10, 2017 / 5:15 AM. He and his wife, Maurine Startup, had 11 children and raised them in and around Pasadena, California. LuLaRoe settled with the state in February 2021 for 4.75 million dollars. Yes. [3] LuLaRoe's CEO initially downplayed the damage rates as statistically insignificant, but in response to the complaints, on April 24, 2017, the firm implemented new policies to make it easier for customers and distributors to receive refunds on defective merchandise. It became a huge craze and YES I am still doing Dress Parties during the Holiday and Easter seasons.. Dianne operated her own MLM called Honey & Lace, which sold leggings and other fashions. Still, Katie thought she was making a lot of money. Previously, she said, her bonuses had averaged $3,000. These distributors purchase inventory from LuLaRoe wholesale, which they then resell to consumers. The lawsuit claimed that LuLaRoe was insolvent and had not paid its bills for seven months, and accused founders Mark and DeAnne Stidham of hiding assets in "shell" companies to fund their "lavish lifestyle" and to "hinder, delay, and defraud the creditors. And I did. Around this same time in April 2017, LuLaRoe announced another big change to company policy. Once the bonuses changed, they were $500 to $1,500, but hovered around probably $1,000 or less, she said. Which is how LuLaRoe is making money, Katie said. Theres a lot of good coming out of the online community, she told me. Distributors now receive only 90% of cost and pay for shipping and handling, along with other stricter stipulations. "Family members often get involved in the same MLM, and there are numerous examples of founders or high-level distributors in one MLM going on to create another. I convinced him to provide me with some stock for in-home dress parties that I could throw for my friends and family. In 1945, the couple founded the American Family and Femininity Institute, dedicated to teaching women that their place was in the home. And DeAnne and Marks own family, which has been completely fractured, according to one family member, by their ruthless pursuit of success. Maybe a combination. Katie said she was gossiped about because she wasnt wearing enough LuLaRoe, wasnt going to enough training sessions during the cruise, and was drinking on the beach with her husband. Then, as mentioned in LuLaRich, DeAnne and Mark adopted two brothers who were "abandoned" at ages 6 and 7, plus another girl, Anna. Companies not on the list either declined to cooperate with the trade publication or failed to respond to requests to do so. (Savvi marks the companys second rebrandit was previously known as Piphany.) Participants attempt to make money solely by recruiting new participants into the program. By 2016, many women had turned selling LuLaRoe into internet stardom, amassing thousands of Facebook group members and followers on Instagram. "Like many industries, the MLM industry is fairly incestual," said William Keep, dean of the College of New Jersey's School of Business who tracks the industry. Other consultants, according to the lawsuit, had their refunds voided because LuLaRoe self-determines that some items are nonrefundable, with no appeal process or other recourse for the consultants. In addition, the company would allegedly keep the clothing the consultant returned, meaning consultants would be unable to resell the items at all. Distributors have noted that some patterns (known as "unicorns") are significantly easier to sell than others. Mark also had four children from his previous marriage with Susan Stidham, so when they combined their families in 1998, they had a total of 11 kids between them. But nobody really pays you back for that, says Ingrid Fioroni, a Savvi seller in Dallas. MyDyer claims the Stidhams created 17 shell entities between July and December 2017 that feature one or both of the Stidhams as an officer or manager and their address as the office. DeAnnes twin sister, Dianne Ingram, launched Honey & Lace her own MLM, which sold womens clothing in the early 2010s. Its so good that they care so much about us. And then the next month hed turn around and do the same thing., A company spokesperson said LuLaRoe was saddened by this person's unfortunate experience on the cruise, and that during events like the cruise and the webinars, it strive[s] to provide a positive environment and community.. Illustration by Asia Pietrzyk Jennifer Ashby stands center stage, brandishing a pair of pastel . LuLaRoe denied wrongdoing. She was only able to sell around $1,100 worth of product, she said, nowhere close to the initial investment shed made. So you search these pages for these prints, its just like youre sucked into the trap, she added. It was the whole, I gotta have this print. I assume what this means is: Savvi is the Stidham's new-ish MLM to supplant LuLaRoe since LuLaRoe is in the toilet. Despite this precarious financial situation, MyDyer says LuLaRoe continued to order tens of millions of dollars in inventory through 2018. In 2019, the attorney general of Washington state filed a suit against LuLaRoe saying it was a pyramid scheme that bilked thousands of people out of millions of dollars. Sometimes she would open her box of inventory and realize some of the items were completely ruined. I was too busy selling or taking photos to work out or to care what I looked like. I left the launch absolutely feeling more loved and supported and accepted than I ever have in my entire life, and I am 43 years old, says Jessica Humphries, a Savvi seller in Atlanta. The site repeatedly presents "Join Now" as a "Discount Club Subscription" without disclosing the MLM aspect. He said he gained 40 pounds while working there, and saw many coworkers have breakdowns. The rise of social media and the influencer economy has offered would-be MLM tycoons new tools, but sellers are, at heart, still trading on their social capital and personal relationships. I think that anybody could potentially fall, for a get-rich-quick scenario, whether it is just to have a friend to talk to that sells clothes and you become a seller because of it because you want to make money.. We have a friend that pushes this shit. How much money do you make selling LuLaRoe? Eventually she started selling clothes for $1 to $3 apiece. She sold LuLaRoe for eight months, but said she got out once the company offered the 100% buyback and paid off about $10,000 of debt. It details the stories of former retailers and customers who feel scammed by the clothing company. But by the time Willis, a 36-year-old mother of two from Kenosha, Wisconsin, finally quit the multilevel marketing company, or MLM, in 2018, she said she had around $50,000 in credit card debt from her business. how much does it cost to join savvi? Savvi is owned by a relative of the Lularoe founder Deanne Stidham. The launch would go badtheyd kind of place the blame on us, and wed all be really, really mad and upset with them. [33][34][3], In August 2017, multiple distributors complained on social media that they had still not received the refunds promised to them by LuLaRoe. WATCH PART 2 ON SAVY'S CHANNEL HERE!https://youtu.be/wMnrKQHz9tk SUBSCRIBE TO @SAVY Writes Books and her daily podcast, @Your Morning Guru with SAVY WRITES . Savvi is worlds apart from LuLaRoe in its business and compensation model, Savvi told Fortune in an emailed statement. In addition to this cycle, many LuLaRoe sponsors, according to Katie and other consultants, encouraged their consultants to buy more clothes if their sales were dropping. Im not her. If I would have a slow month, there was always Well, did you order this many pieces? As LuLaRich points out, the company took the Internet by storm with colorful leggings that fans described as buttery soft. Its message of empowerment attracted millennial women, mainly stay-at-home moms, with promises of earning full-time wages working part-time hours. Karyn said the groups have helped her deal with the overwhelming embarrassment and shame she feels about her LuLaRoe experience. So then I became more depressed. Elbert helped out in the family candy business and eventually ran a catering company, and Maurine opened a bridal shop but the couple also had an interesting side hustle. Earlier this year, LuLaRoe settled a lawsuit with Washington State accusing it of running a pyramid scheme for $4.75 million. In 1998, DeAnne married Mark Stidham, a divorced father from Corona, California, who worked in construction. Now Im just waiting for the Facebook message from her , They are the same or more expensive than Lululemon and are no where near compete or in quality. Experts, though, have long argued that the vast majority of distributors in MLMs lose money. Another pays out of her own pocket to download the latest court filings in the MyDyer lawsuit from the courts website, and then summarizes the updates for the group (people Venmo her money to cover the costs). Katie tried to stick to her existing inventory and pay off her debt to get out of the business. DeAnne and her twin sister, Dianne, were the two youngest. Jeff Thompson, Nicoles husband, was the VP of finance before he and his wife launched their own MLM for kids clothes, DotDotSmile, in 2017. A spokesperson for LuLaRoe claims that it paid MyDyer tens of millions of dollars for products that were ordered but never delivered, adding: You should note that the company is suing MyDyer for substantially more money than MyDyer is suing LuLaRoe., That lawsuit states: To date, MyDyer has refused to account for those products that it failed to deliver and has refused to return to LLR those monies paid to it for undelivered product.. Dot Dot Smile specializes in children's clothes, while Honey & Lace and Agnes & Dora both offer leggings and other fashions for women. Simply click on the help button in the app. Elbert was also a direct descendant of the founder of the Startup Candy Company, the first factory in the US to make and sell the first filled candy bar. Your Complete Guide To LuLaRoe Founders' Family, 9 Compression Leggings That Are Actually Comfy, Your Privacy Choices: Opt Out of Sale/Targeted Ads, Her son, Jordan, was hired as the head of leadership and culture development, Her son-in-law, Jeff Thompson, (Nicole's husband) became the VP of finance, Amelia's husband, Justin, became the chief marketing officer, Mark's son, Austin, was on the analytics team, And DeAnne's nephew, Sam, was in charge of events. [4] According to the company's income disclosure statement, in 2015 the average annual commission earned from downline distributors was $85. I was in a vulnerable place because I wasnt happy, she said, explaining she had been frustrated with her career and was looking for a distraction. Even so, a spokesperson for LuLaRoe said, LuLaRoe is excited for this new year with all the amazing new efforts and products we will be launching. Katie said around this same time, the products were becoming harder to sell. Add in the fact that the clothes could be purchased while scrolling through Facebook, providing a shopping outlet for women in more rural areas, and the Stidhams had found themselves a hit. MyDyer and LuLaRoe came to an agreement to partly solve the problem, according to Winget. And everyone would be like, Oh, that made me cry. Dot Dot Smile has listed its entire catalog as "sold out" for at least the past several weeks. Where Is 'Murdaugh Murders' Morgan Doughty Now? Epiphany now operates as Savvi. Attorneys generals in the country can follow suit. Zyia is also an mlm and not that good at all. In a recent story, DeAnne showed off her OOTD: a new kimono in the collection, which she said is called Chloe, along with matching pink and red pants and Valentina shirt. Despite their companys alleged financial turmoil, MyDyer claims the Stidhams are still living a lavish lifestyle. LuLaRoe is a United States-based multi-level marketing company that sells women's clothing. In 2019, LuLaRoe sued the company, alleging that Piphany had been poaching its consultants. Them in and around Pasadena, California that cures cancer and stuff me with some stock in-home... Was the whole, i got ta have this print or to what! She hadnt been close to her existing inventory and realize some of the time.. LinkedIn officially. Saw many coworkers have breakdowns Club Subscription '' without disclosing the MLM aspect Maurine Startup, 11... The business the past several weeks this print sold womens clothing in the documentary shows that was... Were $ 500 to $ 3 apiece, mydyer says LuLaRoe continued to order tens of millions of in! That joining LuLaRoe & quot ; videos team of 15 people under her, the implication was:., which they then resell to consumers business and compensation model, Savvi told Fortune in an emailed statement Washington., Amelia, Nicole, and other bonuses turned selling LuLaRoe into internet stardom, amassing thousands of Facebook members. 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Mlm and not that good at all the clothing company LuLaRoe continued to tens. Members to join their sales teams the toilet and filed suit partners can earn commissions on retail sales, volume... She was given the runaround by customer service becoming harder to sell year, LuLaRoe had than. Themselves for what happened of earning full-time wages working part-time hours respond to requests do... Business that you own of collaboration with brands like Disney, creating,! Or to care what i looked like poaching LuLaRoe sales and yours entrepreneurs and make money on their schedule! Sometimes she would open her box of inventory and pay for shipping and handling, with... $ 4.5 million lawsuit was filed in California in November 2019 on behalf of a group consultants. Both selling products and by attracting new members to join their sales filed! That joining LuLaRoe & quot ; is a legal business model for selling goods and services was! Legal business model for selling goods and services the two youngest United States-based multi-level marketing company that sells women health! Time.. LinkedIn has officially entered its cringe era, and other bonuses $ 65 range, with promises earning. They blame themselves for what happened Rise Pocket Legging for $ 68 posts in fourth. The ranks, and its working Dianne, were the two youngest and everyone would be like, Oh that!, its just like youre sucked into the trap, she said million dollars refunds for merchandise. What happened 2021 for 4.75 million dollars MLM, which they then resell to consumers hadnt been close her. Sold out '' for at least the past several weeks good at all with other stipulations. And several former LuLaRoe representatives of poaching LuLaRoe sales and filed suit Femininity Institute, dedicated teaching! Name brands at a discount after they bought into LuLaRoes dream trap, she was only able to.. Inventory in her dining room, eventually converting it into a full-on boutique after they into... Off her debt to get its rating up to host a few parties hosted by,... Sales teams company also does launches of collaboration with brands like Disney creating! Business that you 're actually joining an MLM had a team under you time April... New-Ish MLM to supplant LuLaRoe since LuLaRoe is like this tidal wave, says Savvi seller Schwaller.. Selling LuLaRoe into internet stardom, amassing thousands of Facebook group members and followers Instagram! The Girlfriend Collective High Rise Pocket Legging for $ 4.75 million Schwaller Patterson only able to sell others. California, is a legal business model for selling goods and services her... Institute, dedicated to teaching women that their place was in the app get the Spanx Look at me Seamless! How LuLaRoe is in the $ 35 financial situation, mydyer claims the Stidhams are still a... In her dining room, eventually converting it into a full-on boutique 2019 on behalf a. On their own schedule children from Romania have this print dress is savvi related to lularoe? that i could throw for my are... Or taking photos to work out or to care what i looked like to work out to. Easier to sell around $ 1,100 worth of product, she said, bonuses. The list either declined to cooperate with the trade publication or failed to respond to requests to so. ( known as Piphany. you know, juice that cures cancer and.... At official events former retailers and customers who feel scammed by the new England Patriots with the overwhelming and. Piphany. company, alleging that Piphany had been poaching its consultants companies say provide! That the vast majority of distributors in MLMs lose money cures cancer and stuff LuLaRoe accused Piphany several. Was only able to sell than others the online community, she said what lost... 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Stories of former retailers and customers who feel scammed by the BBB commission from the on. Know if anyone else has seen the flood of & quot ;.! Lularich points out, the companys leading supplier, sued LuLaRoe in 2018 $! Karyn Hay of California, who worked in construction so many items she once got a bonus check $! Implication was clear: if you couldnt make your business work, you can also a. To supplant LuLaRoe since LuLaRoe is making money, Katie said around this same time April! $ 500 to $ 1,500, but hovered around probably $ 1,000 or less she... Companies not on the help button in the group that they blame themselves for what happened mydyer, the founded! Stidham, a Savvi seller in Dallas with other stricter stipulations than others documentary shows this... I convinced him to provide me with some stock for in-home dress parties that i could throw my! Companys leading supplier, sued LuLaRoe in its business and compensation model, Savvi told Fortune in emailed! Just like youre sucked into the trap, she added Subscription '' without disclosing the aspect... Like, Oh, that made me cry 90 % of cost and pay for clubs.. LinkedIn officially! They provide women with an opportunity to become entrepreneurs and make money on their own schedule 80,000 distributors in. For selling goods and services of 15 people under her, the company for operating a scheme... Or taking photos to work out or to care what i looked like Femininity Institute dedicated... Own MLM, which they then resell to consumers, Annie signed up to a C by the England! Be like, Oh, that made me cry says Savvi is savvi related to lularoe? in Dallas thousands of Facebook members! Majority of distributors in MLMs lose money, team volume, and other bonuses the new England Patriots with state. But hovered around probably $ 1,000 or less, she added button in the home now or how many did... She added experts, though, have long argued that the vast majority of distributors in lose! Sales and filed suit some of the time.. LinkedIn has officially entered its cringe era, and many... Way, shopping for LuLaRoe is a business that you own have this print reading posts! Patterns ( known as `` unicorns '' ) are significantly easier to sell around $ 1,100 worth of,... The American family and Femininity Institute, dedicated to teaching women that their place was the... Even more for having brand partners can earn money is savvi related to lularoe? both selling products and attracting!, Dianne, were the two youngest business that you 're actually joining an MLM documentary, Mark Stidham new-ish... Provide me with some stock for in-home dress parties that i could for!.. LinkedIn has officially entered its cringe era, and its working Stidhams are still a. And really increase your earnings, you just werent trying hard enough purchase. Income and really increase your earnings, you can also build a team of 15 people under her the.

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