Arbonne, Rising King of Home-business Pyramids
But, Arbonne products are no better than many other lower priced products available through retail outlets, health food stores, or other cosmetics sales companies. And they cost a lot more. So, there is a limited target clientele for Arbonne and the folks at the top of this pyramid know for most sales reps the life of service of any of their customer relationships isn't going to be ten or twenty years. So they need to make money off people who sell the product too, not just the people who buy it. They encourage sales people to get 'down-line' distributors and have those folks do parties and get more people, etc. etc. Anyone involved in a process this focused on lengthening the chain of distribution should be wary. If, as many are trained to say, the products virtually sell themselves, why do you have to go out and get bigger and bigger sales networks? Why do you have to worry when an area has become saturated with sales people (not necessarily with actual end use sales volumes)?
Arbonne doesn't advertise on TV or in print with its specific product claims. This is how they get around truth in advertising laws. They train their salespeople with pitches that are largely embellishment, but pretty harmless. But they focus on making these sales people either true believers in all the product claims, or sharp talkers. I have sampled some of these products and they are okay. They are much more expensive than the cosmetics I normally buy, and they have no greater benefit to me, other than, I guess the psychological benefit I might attain if I believed this $28.00 rub I put on my stomach to ease monthly cramps worked better and more holistically than the $7 rub I can buy in any drug store. The hucksters who follow me through the mall snaking their 'herb wraps' around my neck are selling the same sort of wild claims of stronger benefits from a ridiculously expensive product. But at least the huckster at the mall who tells me the neck wrap that has been microwaved and is now easing my stiff neck can be mine for $30, will come down to $10 if I insist. After all, his product only cost him about $5 to make or purchase. It's not the same with Arbonne. The distributors or independent contractors get a 30% discount and must buy the product themselves to sell to others, so they have to pay their Arbonne 'up-lines' that amount to break even. That makes it in their best interest to swear by the uniqueness of the product and dismiss complaints that the prices are too high.
Again, I'm not knocking the products. They are just as good as any other moderately priced cosmetics you can buy at the department or drug store, or through Avon or Mary Kay (sorry to mention the competition, especially Mary Kay, I know how the pink Cadillac ladies get under the skin of the Arbonne folks). But, I am warning people who think they can work a few hours a week getting other people to also sell Arbonne and make any money at this. To make money you have to aggressively sell product, lots of it. If you buy $1,000 worth of Arbonne products a month, you have to sell them all to gross $1,400 and make $400. It's pretty basic math. But, what Arbonne stresses to its independent contractors is to sign up five people here, five people there. You make about $50 for signing up the five people. You have to travel all over to do it, especially if you have the bad luck to live in an area that's already saturated. And you have to be willing to go out in public, maybe to high end salons, maybe to other places, and talk up the product and zoom in for the kill, relentlessly. This is not something people can do part time. If you want to acquire lots of 'down line' people to get your small percentage of their sales volumes that hasn't already been sucked up line by the people above you, you have to both get new people to sell, sell product yourself, and hope they sell a lot of product. And hope everyone is keeping accurate records and all money is flowing where it should.
I have watched while people close to me have neglected their families, their actual jobs (which could earn them a living and which can grow as they grow), to follow the Arbonne dream of the Mercedes. Every month they buy product, go hustle up new down line folks, and hope for an extra $50 at the end of the month. From the perch at the top of the Arbonne pyramid, these are the people you like. They bring in all these new distributor fees to you every month. They aren't selling as much because they are focused on expanding, so not as much product has to be produced, distributed or sold. Less work for you with all the sales records. Meantime people desperate for a big jump in lifestyle, chug along, bothering people at work with sales pitches, ruining family gatherings with sales pitches, and squandering precious resources constantly re-investing their own capital in Arbonne. If you aren't regularly making a set amount of money every month from sales six months into starting something like this, give it up. If you aren't willing to accept your product may not be all you're selling it as, and just accept that your clients think it's okay anyway, move on to other pursuits. And most of all, if you're stretching the truth with people, conning your own family, friends, co-workers into selling alongside you even though you know you haven't made much money at this, look deep inside your own soul and save it before it's too late.
Published by kelly m.
I am a professional writer of technical and legal articles and of short fiction, and non-fiction essays on public policy areas. View profile
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12 Comments
Post a CommentI was recently approached by an arbonne representative, and about the business opportunity. After careful research and consideration, i have declined the offer.
After 2 years - it seems time for "Kelly M." to take this post down . . . ? Kelly? Your post is full of incorrect and misleading information. It's all wrong! Unfortunately, the internet is open territory for those who have indeed been misled, misguided - maybe even bullied by desperate family and friends in Network marketing companies. Network Marketing is a million dollar business for anyone who really wants it. It takes great effort, great leadership skills and is not a get rich quick scheme. But it's true - the compensation matches the effort. I don't know any truly lucrative business ownership opportunities with such small start up fees and no limits.
If you sign up with a great company that makes great product - you don't have to push anything on anyone. The product will speak for itself.
See you all at the top!
oops got cut off so I guess I have to keep this short. Your comments are way off and after 3 years in this company I know this. I make money by selling great products (by the way we do not use mineral oil, I can look at the ingredient lists) and by sponsoring and teaching others to sell and build a business. it's legit!
There is so much information in this "article". I have been a consultant for three years after the results the Arbonne products have given my family.
I am an Area Manager and have been able to replace the income of my full-time counseling job by working about 20 hours a week. I have never had anyone of the consultants I sponsor and train purchase any more products than they need to bring to presentations and what they want for their family. Arbonne actually gives any consultant or preferred client an opportunity to purchase $700 in products for $350 when they first sign up. This is totally optional! We are not required to stock products and it is actually discouraged by corporate. There is no need! The products come in 3-5 business days. There have been some "rogue" consultants just like in any business who try to "get rich quick" and do things in a less than honest way, but that is not how Arbonne teaches us.
These are high quality, botanically based products that gi
If any of you here know about network marketing than you would have mentioned DSA which is the Direct Selling Association...any company listed on this site is regulated by the government. It also weeds out pyrimid schemes and Very good high quality companies that allow you to have home based business's without the headache of wondering. Arbonne is on the list of good comapnies!!! Check it out for yourself! http://www.dsa.org/ I have been in this company for 1 year and I am making $300.00 per week on top of my current profession. You have to want to work...that's all!
If any of you here know about network marketing than you would have mentioned DSA which is the Direct Selling Association...any company listed on this site is regulated by the government. It also weeds out pyrimid schemes and Very good high quality companies that allow you to have home based business's without the headache of wondering. Arbonne is on the list of good comapnies!!! Check it out for yourself! http://www.dsa.org/
Anna, the CEOs of Clinique, etc. are taking the financial risk and doing all the investing - at Arbonne the risk is taken on locally by each distributor - and yet much more money flows back up the line and to the verytop of this organization. As with any other MLM way of selling product, people can make modest incomes investing in and selling product if they have a steady customer base - but the Arbonne model lets the very top tiers of management make MORE money if their downlines buy product, whether or not those downlines ever sell. At Clinique if retail sales are down, revenue is down. Arbonne's model lets revenue generate without a direct correlation to actual end use sales. For people desperate to make money, this is a bad business to get into. For people who like the products and don't mind selling them, it's just as good a side business as any other sales business where you know your limits.
Arbonne has great products. I was introduced to them by a friend, fell in love and, yes, I sell them now. This is a job for some of us and we take it seriously. Not everyone is meant to do network marketing just like not everyone is meant to work at a gas station, as a doctor, etc. If you don't want to sell Arbonne that is fine but don't knock it overall. Someone is making money off of you buying skin care, either Arbonne or Wal-Mart. Those CEO's of Clinique are sitting pretty in their million dollar manisons because people buy their stuff. At least Arbonne offers the opportunity to make an income to anyone not just some higher-up in the business.
Oh whoops, I got so off on the tangent...I meant to congratulate you on a very nicely written, comprehensive article. I enjoyed reading it!! Thanks for posting...you did a great job of breaking out the pros and cons and presenting an objective dissertation on Arbonne.
I don't like any of the pyramid scheme companies. Personally, I enjoy the Arbonne product line, and purchased three sets (so far) at the "distributer rate." I'm not interested in selling to anyone. Eventually, I let my "distributor" status lapse, and if I need more of the product, it's available on-line, via Amazon. I had a friend whose sister-in-law got involved with it, and (so far as I know,) she's allowed her distributor status to lapse as well. I don't care what anyone says, it's still a pyramid scheme, albeit for the upper tiers of society. I suppose it depends on your "handler," but I had to endure the first phone call and a few emails. I was up front about the fact that I was buying a membership for the discount price, and had no intention of selling to anyone. I'm sure it's okay for some people, but this is not my cup of tea...I just don't enjoy trying to push products like a door to door encyclopedia salesman.