This review is based on research and online information in the public domain. Any opinions and conclusions may not apply to all persons or situations. It might be helpful to read other Arbonne Reviews.
What Is Arbonne MLM Business?
Arbonne is a multi-level marketing (MLM) business that has existed since 1980. It offers various products in health and beauty, including skincare, makeup, and nutrition supplements.
Arbonne has had a few lawsuits and investigations throughout its lifetime. These were related to the safety of their products and their business structure.
But Arbonne has survived and continues to produce revenues of over half a billion dollars annually.
Arbonne Company Overview
History of Arbonne
Arbonne was founded in 1980 by Petter Mørck, a Norwegian businessman. Mørck was a Norwegian skin care industry veteran but felt that the products they were selling were potentially harmful to their customers.
He moved to Arbon, Switzerland, and developed his line of more natural products. His vision was to include no petroleum or animal-based ingredients in his creations.
This led to Mørck founding Arbonne in 1980 in Orem, Utah. The company moved its headquarters to Irvine, CA, just four years later.
The company experienced slow growth Throughout its early years and avoided significant scandals.
Arbonne Company Investigations
There have been investigations and lawsuits as a result of both its products and its operating practices.
Most of these allegations occurred in 2009. 2017 according to the LOS ANGELES (Legal Newsline), a Texas couple filed a lawsuit against Arbonne in Federal court, claiming that the company is “a pyramid scheme masquerading as a direct seller of health and beauty products.” The suit claimed that the couple spent nearly $3,000 on products and fees with the company and only received $30 in payments.
The abovementioned case became a class action lawsuit pulling other distributors of Arbonne, who also claimed to have lost money with the company.
The plaintiffs allege that the company does not make money from selling products but only by scamming distributors out of their money.
Allegations in the suit state that the only people making money in this pyramid scheme were the five people at the top of the pyramid who were named defendants.
The case was dismissed in 2018, and the claims against the company were never proven.
Arbonne also had allegations about h their products; Since 2009, they have issued at least six recalls of their products due to high levels of different types of bacteria found in the product.
In some cases, these recalls were mandated by government regulatory agencies. These issues with their products have not affected sales of their products.
How Does Arbonne Work?
The Arbonne Success Plan Explains all the different ways you can earn
Joining Arbonne as a Preferred Client, your startup fee of $29 gives you access to exclusive deals and special offers on sanitary products.
Get 20% off regular product prices and exclusive set and bundle offers.
You are rewarded when you opt-in to auto-ship to replenish your favorite products on your schedule. You also get gifts for qualifying orders each month.
To become an independent consultant and start making money, you’ll get access to your very own personal e-commerce website.
This website has a shareable digital catalog. According to the Arbonne website, you’ll get access to free apps for “on-the-go business management.”
You also get access to a social marketing library for sharing Arbonne. There is also a knowledge library for information on the products and the business and a community that claims to help others.
The registration fee is $49 for 12 months. You’ll have to pay $20 to upgrade the preferred client membership.
A $29 renewal fee will be due after each whole year you’re a consultant.
If you sell Arbonne to retail clients, you can earn a commission of up to 35% (if products are sold at the suggested retail price)
If you decide to recruit others to become Arbonne consultants
Overrides
There are a couple of ways to make money on Arbonne (1) to become a preferred customer; By Compensation Plan.
The basics of the compensation plan are pretty simple. You earn a 35% commission on regular retail orders and a 15% on Preferred Customer orders. When you factor in bonuses and sales volume from your downline, things get complicated.
Depending on your current status, you can earn bonuses on the sales of your downline up to six levels deep.
You can also earn cash awards through their Mercedes-Benz Cash Rewards Program, designed to allow you to purchase a new car. Very few people ever achieve this status.
Some people will make good money in the MLM business, but those are very few; the majority will lose money.
In his free e-book ‘Multi-Level Marketing Unmasked,’ Jon Taylor found that 99.7% of people will lose money if they join network marketing.
He describes MLM as an ‘unfair and deceptive practice.’ The main problems Dr. Taylor found with the MLM business model are that it relies on continuous recruitment, and most of the rewards for sales are paid to the upline.
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