Is Arbonne A Pyramid Scheme Or A Real Business Opportunity? First of all, Arbonne is indeed a legitimate company. Because the company uses the Multi-Level Marketing (MLM) business model, some people are always asking: Is Arbonne A Pyramid Scheme Or A Real Business Opportunity?
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“The secret of change is to focus all your energy not on fighting the old but on building the new.” (Socrates, father of Western philosophy)
Point in fact, a couple in Texas really believe that the company is a pyramid scheme. Sure enough, they filed a complaint in 2017. Is Arbonne A Pyramid Scheme Or A Real Business Opportunity? Truth is that the “Class Action Lawsuit” was dismissed on March 20, 2018.” You can read the lawsuit story here.
Time and time again, you hear that the MLM business is a great opportunity to make money. Needless to say, the freedom it gives you to cancel out a 9 to 5 job. Before joining one of these companies however, it is important to research whether the company is running a Pyramid Scheme.
Is Arbonne A Pyramid Scheme Or A Real Business Opportunity?
Company: Arbonne International
Country: California, USA
International Offices: In Australia, Canada, New Zealand, Poland, United Kingdom
Method of Selling: Person To Person
Business Model: Multi-Level Marketing (MLM)
Key Products: Cosmetics, Personal Care, Wellness
Headquarters: Irvine, California
Year Founded: 1980
Notably, the company’s income of $553 million put them in #40 position in 2018 (out of 100 direct sales companies). Then again in 2019, a whopping $544 million rank them at #28 spot. (source: Direct Selling News)
Certainly, the possibility is there to earn money if you join the Arbonne business opportunity. However, you can prepare to go through the same conventional process of direct selling.
Traditional Selling and Recruiting
That is to say, you need to recruit people to join the business. Not to mention hosting parties to introduce the products, do a few give-aways and convince people to make purchases. Primarily, this is how you’ll earn commissions. Usually, there are a few other perks through which you can also earn commissions.
Nevertheless, my experience with the business model is not good. I don’t relish the method. Neither do I recommend it. Instead, I do recommend this business model that I truly benefit from.
Related: My Experience at Wealthy Affiliate
High Drop Out Rate
Why do so many people drop out of the MLM business model early? Either they underestimate the work to get recruits and sales, or a part of the business model is missing. Generally, many people always try to find something else.
“Tomorrow is too late. Yesterday is over. Now is exactly the right moment to start.” (anonymous)
Together with “innovative scientific discovery” and botanical ingredients Arbonne puts emphasis on “healthy living.” Both on the inside and the outside. Surprisingly, some of Arbonne’s products are on Amazon.
Although Arbonne claims to be one of the top companies to offer healthy living products, some people may defer. Keep in mind that there are many other direct sales companies offering similar products: “Natural, organic, non-toxic, science-based, clinically-tested” are typical claims.
Related: Ultimate Direct Sales Companies List (120 To Choose From)
On the positive side, here are some key points to note.
- Over 40 Years In Business
Quite noticeable is the long history this company has been in the direct sales business. Definitely, it wouldn’t be in business this long as a pyramid scheme. Matter of fact, the Federal Trade Commission (FTC) would close the business years ago.
- Has Accreditation
From Better Business Bureau the company has an A+ rating. Besides, it is also a member of Direct Selling Association (DSA). Having this kind of accreditation is assurance that the company is not operating a scam business or pyramid scheme.
- No Inventory Necessary
A replicated website can help directly with sales. Best of all, you don’t need to carry an inventory. Whenever customers place an order, Arbonne ships the products directly to the specific address.
- Offers Cruelty Free Products
Focusing on “sustainable practices,” the company claims that it operates a “100% cruelty-free” business.
- Selling Consumable Products
Clearly, these are products people use on a regular basis. As a result, some people may need a replenishment within a short time. Without a doubt, this is a great way to keep sales going. Unless customers decide to try a different company.
- Operates Worldwide (in 7 countries)
Obviously, having a website means that you can reach more people 24/7. Seeing that the company is in several countries open the opportunity for more sales.
“When you find an idea that you just can’t stop thinking about, that’s probably a good one to pursue.” (Josh James)
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- Low Start-up Fee
Only $49 can get you going with this company. Let me hasten to say that alone won’t do the business. Apart from the registration fee, there are other costs. Like annual renewal fees.
- Get 35% – 50% Off Product Purchases
Automatically, you can get 35% – 50% off all your personal purchases. Along with that, there is a “revenue kick-back” when you order from your own replicate website.
- Earns B Corporation (B Corp) Certification
Markedly, this company prides itself in caring about the earth. Committing to “strong environmental” practices of sustainability, the company now has proof of certification. (source: Direct Selling News)
- Eco-Friendly Products
Focusing on environmentally friendly products, the company uses an infusion of “natural and botanical ingredients.” Specifically, the aim is to help consumers as well as the earth. Equally significant is that all the materials the company uses can reduce carbon footprints, recycle and reuse. Accordingly, all the packaging materials and even the inks that they use are ideal for recycling.
- Offers 35% Commission
Being an independent consultant, you can earn 35% commission on all your retail sales. Moreover, there are other earning perks.
- Ongoing Business Training And Support
Getting this support can help your business grow.
- Earn Free Products
Whether it’s a car or a vacation, the claim is that you can definitely earn these.
- Money Back Guarantee
“A 45-day money-back guarantee is offered on all Arbonne products to Clients (including Preferred Clients). Clients not completely satisfied may return the purchased products to their Arbonne Independent Consultant for a replacement or full refund within 45 days from the Client purchase date.” (source: arbonne.com/returns)
“There is no success without commitment and action.” (Vantel Pearls)
- Pricey products
Evidently, the products are on the pricey side. Take for instance the Arbonne Bio-Hydria Herbal Tea which costs $18. Most notable is that there are only 20 tea bags in the pack. Energy Fizz Sticks (pack of 30) cost $55. Protein shake mix cost $77. Just to name a few.
- Recruiting List
Making a list of 100 people (mainly family and friends) is the usual target for potential consumers. Expectation is that, they will most likely become new members of the company too. How realistic is this method of recruiting? Given this method, some people readily think that the company operates a pyramid scheme.
- Replicated Website
Ideally, it’s best to have your own unique link, not a duplicate. With a replicate website, there isn’t much you can do. Optimization of a duplicate website is low. After all, it’s not really your own website, so there is no freedom for any extras to earn otherwise.
- High Competition
Undoubtedly, the products are quite competitive. Other companies have a similar approach about healthy living. Commonly, they refer to the holistic approach to beauty and wellness.
Comparable to other companies, many of them claim that they also use “scientific research and innovative discovery” to create their products. Regardless of the quality, they also refer to the high quality ingredients. Among other things is that they meet safety standards. Like having no parabens, phthalates and common allergens in their products.
Registration Fee Misconception
Upon registering, there is a $49 fee that each independent consultant pays. Following that, there is an additional $20 to upgrade as a “preferred client.” Basically, this offers a 20% discount off “Suggested Retail Price (SRP) on all products all the time.”
Noticeably, “all the time” is only for a 12-month period. Thereafter, a $29 renewal fee is due. Also, you have to meet the company’s qualifying volume (QV). Adding up everything may be more than what you bargain for. Below is the company’s stipulation.
“Special introductory offers with your registration order:
Complimentary product when your registration order is 250 QV or more
When your order is 500 QV or more, you’ll receive free shipping on your entire order including your Starter Kit.
$29 Renewal Fee
Exclusive Renewal Offer: Complimentary product when your renewal order is 250 QV or more”
Considering this, it may put you in a situation where you are spending more and earning less. Excepting that you are really selling and making a profit of course.
Still wondering: Is Arbonne A Pyramid Scheme Or A Real Business Opportunity? Overall, if you choose to join, you will be working with a legitimate company. Can you network well and recruit people? Depending on how much effort you put into your business, you can earn some money.
Often, some people don’t really make the income they’d like. Becoming an Arbonne independent consultant requires finding the best strategy for success. Anything that will work for you: Social media, person to person sales, videos, website, whatever it takes to get sales.
Albeit, you may not get in the forefront for a leadership position fast enough. Yet, it is achievable. Remember, you can still earn an income with additional rewards if you are not in leadership.
There Is An Alternative
Noting that the expenses can be pressuring, direct sales isn’t going to fit everyone’s pocket. Surely, there is an alternative with no product limitations, no person to person sales, and no hosting of parties. Simply, there is no recruiting or monthly purchases. Training is available here. And it is free.
“Don’t worry about funding if you don’t need it. Today it’s cheaper to start a business than ever.” (Noah Everett)
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“If you don’t try, you forfeit the opportunity.” (Frank Sonnenberg)
Author’s Note: In the event that you choose to try out Affiliate Marketing, here are some niche ideas that may help.