If you’re considering joining Arbonne as an Independent Consultant or simply curious about its business model, you’ve come to the right place. Arbonne, a company that has been around for over four decades, offers a range of health, wellness, and beauty products through a multi-level marketing (MLM) structure. While the promise of earning income through product sales and recruitment is enticing, there are significant factors to consider before diving in.
In this comprehensive review, I’ll delve into the workings of Arbonne’s MLM program, discussing both its potential benefits and the concerns that surround it. We’ll explore the company’s product line, the costs involved in becoming a consultant, and the real earnings potential based on the latest available data. Additionally, I’ll address common complaints and legal issues the company has faced, providing a balanced view to help you make an informed decision.
Whether you’re evaluating if Arbonne is a legitimate business opportunity or a potential pyramid scheme, this review aims to provide clarity. By the end, you’ll better understand what it takes to succeed with Arbonne and whether it’s the right fit for you. Let’s get started!
Disclaimer: This Arbonne MLM review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn from that information are my own opinions.
Arbonne MLM Review Overview
Product Name: Arbonne
Owner: Yves Rocher
Product Type: Health and Wellness MLM company
Price: $49 registration fee along with a yearly fee of $29
Best For: Health and Wellness enthusiasts
Pros
- Proven Background
- Social Media Site Advertising Abilities
- Concentrate on Personal Growth
Cons
- Pricey Products
- Covert Monthly Expenditures
- Pyramid Scheme in Disguise
- Really Low Success Rate
Quick Summary
Recommended? Arbonne is a legit MLM. However, it carries the tag of a "pyramid scheme in disguise".
Table of Contents
Is Arbonne MLM A Scam?
In my review, I want to clarify upfront: Arbonne MLM is not a scam. The company offers legitimate products that you can sell to earn money. They pay commissions for each product sold and provide bonuses for recruiting new members into the MLM.
However, it’s important to acknowledge that some people view Arbonne’s business model as closely resembling a pyramid scheme. This perception arises because, while legal, the tactics they use can be similar to those seen in such schemes. There is always the potential for these types of companies to face scrutiny and possible consequences from authorities like the FTC in the future.
Due to these concerns, I don’t recommend Arbonne MLM to you or anyone else. Another critical point is the significant financial investment required to earn commissions, which includes various expenses you’ll need to cover.
Just because Arbonne offers a work-from-home opportunity doesn’t mean it’s the right fit for everyone. Check out the rest of my Arbonne pyramid scheme review to learn more!
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What Is Arbonne?
Arbonne is a company that specializes in health and wellness products, including makeup, nutritional supplements, hair care products, and skincare.
Founded in Norway in 1975 by Petter Morck, the company later established its headquarters in Irvine, California, in 1980. Today, Arbonne is owned by Yves Rocher, a well-known health and beauty brand, and boasts an impressive annual revenue of over $500 million.
In addition to operating in the United States, Arbonne has a global presence, including the United Kingdom, Canada, Poland, Australia, New Zealand, and Taiwan.
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What Is Arbonne MLM About?
Arbonne operates as an MLM (Multi-Level Marketing) business. The primary goal is to sign you up, have you purchase a product kit, and then encourage you to recruit your close friends, family members, and colleagues to do the same.
This model is often promoted by high-ranking network marketing members who claim to make significant money by recruiting others. These individuals are supposed to teach you how to succeed as a “Multi-level marketer.”
However, the reality is that most participants in the program barely make any money from promoting the products.
So, how does it work? Can you actually make money? Keep reading my Arbonne MLM review to find out everything you need to know before making your own decision.
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Is Arbonne a Pyramid Scheme?
Before we delve into whether Arbonne is a pyramid scheme, it’s crucial to understand what a pyramid scheme actually is.
What is a Pyramid Scheme?
A pyramid scheme is a business model that recruits members by promising payments or services in exchange for enrolling new members into the scheme, rather than focusing on investments or product sales. According to Wikipedia, it’s described as a fraudulent system.
If you want to learn more about pyramid schemes, there’s a super-helpful YouTube video below that explains how they work and provides tips on spotting one!
So, Is Arbonne a Pyramid Scheme in Disguise?
Arbonne is often not considered a pyramid scheme because participants earn money by selling products and recruiting new members. However, the company can’t entirely avoid pyramid scheme allegations just by selling products, especially if these products are mainly sold to their distributors.
For a company to steer clear of pyramid scheme accusations, it’s crucial to make a minimum of 70% profit from retail sales to the public, rather than from internal sales within the organization.
Arbonne operates uniquely, using independent contractors rather than a traditional workforce, which leads some to perceive it as a pyramid scheme. Additionally, there are no limits to how many people you can invite to join your downline. Once you have enough recruits, you can form a team and earn commissions from your team members’ sales and their recruits.
This pyramid structure raises questions about whether Arbonne is a pyramid scheme. In MLM companies, significant earnings often come from recruiting others. The top of the pyramid is where substantial profits are made, mainly from downline consultant sales. Without recruits, income relies solely on commissions from personal product sales. Joining the scheme is a prerequisite to earning in this way.
In the next section of my Arbonne MLM review, I’ll explain how you can join.
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How Does Arbonne MLM Work?
Arbonne doesn’t rely on traditional advertising to promote its products. Instead, they use their distributors to spread the word and market their offerings. Distributors often use social media, creating videos to showcase how the products work and sharing their personal experiences.
Distributors earn commissions through product sales. Additionally, they can make money by recruiting new distributors to join the company. Each new recruit becomes part of the distributor’s downline, earning them a bonus. This system continues with subsequent recruits in the downline, with each person receiving bonuses.
In summary, the more people you invite, the more potential income you can earn. However, the actual amount will depend on the number of people you bring in.
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Turn Your Passion into Profits
What Is Arbonne’s Product Line?
Here are the products that Arbonne offers:
- Plant-Based Nutrition Supplements
- Bath & Body Spa Products
- Botanically-Based Anti-Aging Skincare for Women & Men
- Botanically-Based Cosmetics & Hair Products
- Sports Nutrition Products
- Baby Care Products
Are Arbonne Products Safe?
When reading reviews of Arbonne, some people express concerns about potential negative effects. It’s important to note that any adverse effects are typically caused by specific ingredients in the formulas rather than the products themselves.
For example, glucomannan, being a fiber, can sometimes lead to gas and bloating. If you experience any severe negative reactions, it’s recommended to seek medical assistance. However, in general, Arbonne products are considered safe for use.
Now that we’ve addressed product safety, let’s move on to the next part of my review on Arbonne’s pyramid scheme/MLM model and explore how you can leverage this business opportunity to earn money.
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How To Make Money With Arbonne MLM?
There are two primary ways to make money with Arbonne, similar to most MLM companies:
- Selling products and earning a commission.
- Recruiting people into the MLM program and earning commissions on their sales.
Arbonne’s main focus is on recruiting individuals for their MLM scheme. Representatives receive substantial bonuses and promotions based on their recruitment efforts. Selling the business opportunity tends to be more lucrative, making direct product sales less appealing.
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Can You Make Money With Arbonne MLM?
Selling Arbonne products to the general public can be profitable, but the lack of data released by Arbonne makes it difficult to determine potential earnings. It’s unclear how they conform to the 70/30 scale, which requires 70% of a company’s profits to come from retail sales rather than recruitment.
Additionally, since Arbonne consultants themselves spend over $100 per month on products, they are likely the main customers rather than the general public.
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How Much Can You Earn With Arbonne MLM?
Arbonne operates as an MLM company, meaning that, like other MLM companies, you can generate income by selling products and recruiting new members. Here are the four distinct methods to earn money with Arbonne:
- Retail Commissions – As an Arbonne Independent Consultant, you can earn between 15% to 35% on all product sales you make. This commission is paid weekly.
- Override Commissions – This commission is paid monthly. With Arbonne’s Override Commissions, you can earn a percentage of the total product sales of your team.
- Mercedes Benz Cash Program – Qualified independent consultants can get a white Mercedes Benz paid for by the company.
- Arbonne Cash Bonus Programs – There are different ranks you can achieve in Arbonne based on your sales performance. Unlock each position and meet the requirements to earn cash bonuses ranging from $100 to $600. As you recruit people and build a sales team, you unlock higher rank positions that accelerate the selling of Arbonne products.
These earning opportunities illustrate the potential income with Arbonne, though the actual earnings will vary based on individual effort and success in both selling products and recruiting new members.
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How Much Does It Cost To Join Arbonne MLM?
To join as an Independent Consultant in Arbonne’s MLM program, you need to pay a $49 registration fee along with a yearly fee of $29.
While you won’t initially receive any products, starting a business without them is almost impossible. However, Arbonne offers discounted value packs ranging from $270 to $500, which include a variety of products for you to try and use in your marketing efforts. But be aware, the expenses don’t stop there, and there’s something important you need to know.
Hidden Extra Costs and Fees
Most MLMs, including Arbonne, claim that distributors make the best customers. This helps them avoid being classified as pyramid schemes because they offer products for sale. But we need to ask: who is really buying these products? Is it the general public or the distributors themselves?
Both groups purchase the products, but it’s primarily the distributors who make the most purchases since they are responsible for selling. For instance, with Arbonne, every consultant must spend a specified amount on products each month to remain active and earn commissions.
If you don’t meet this monthly spending requirement, you won’t earn any commission from your sales.
So, How Much is This Minimum Amount to Remain Active With Arbonne?
To stay active, you need to generate 150 PQV worth of products with your Arbonne account each month. PQV (Personal Qualifying Value) is a points system where 1 PQV point equals 1 USD. In the US, for every $1 you spend on Arbonne products, you’ll earn 1 PQV. This means you need to spend $150 on their products each month to remain active and earn commissions.
One way to reduce your personal spending is by signing up new members. When you recruit someone and they purchase a product, you earn PQV points. If you don’t recruit anyone, you’ll need to make up the points by purchasing products yourself.
It’s worth noting that Arbonne uses a recruitment model that resembles a pyramid scheme. Instead of direct cash rewards, they offer cash bonuses, commission increments, and promotions as financial incentives to focus on recruitment.
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How Much Can You Earn With Arbonne MLM?
According to Arbonne’s most recent income disclosure statement, a typical Arbonne Independent Consultant in the United States earned around $172 in commissions and overrides in 2022. This is based on the median earnings of all active business builders across all levels (Arbonne Earnings) (Arbonne). The top earners in Arbonne can make significantly more, but these high earnings are not representative of the typical consultant’s experience.
Understanding these costs and requirements is crucial before deciding to join Arbonne’s MLM program.
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Arbonne Reviews, Complaints & Lawsuits
Arbonne has faced various legal issues and complaints over the years, which potential consultants should be aware of.
2009 Lawsuit
In November 2009, Arbonne International LLC was accused of violating government laws by the USA District Court for the Southern District of Indiana. The case involved Lisa Wilson, who was denied a job opportunity due to her special needs (deafness). As a result, Arbonne agreed to a $30,000 settlement with Wilson and committed to implementing anti-discrimination measures and training to prevent such incidents in the future.
2017 Pyramid Scheme Allegation
In May 2017, Cynthia and Michael Dagnall filed a lawsuit against Arbonne in Orange County Superior Court, alleging that the company operated as a pyramid scheme. They claimed that Arbonne’s business model was more focused on recruiting new members than on selling products to the public. This case highlighted the ongoing concerns about the MLM structure of Arbonne.
2018 Class Action Suit Dismissal
On March 20, 2018, the Arbonne Pyramid System Class Action Suit was dismissed. The dismissal did not necessarily absolve Arbonne of all accusations but indicated that the court did not find sufficient grounds to proceed with the class action.
Complaints and Exaggerated Claims
Arbonne has also faced numerous complaints and negative reviews from former consultants and customers. Many of these complaints can be found on platforms like YouTube, where videos expose Arbonne MLM consultants for making exaggerated claims to boost product sales. These claims often include overstating the health benefits of products or promising unrealistic earnings as an Arbonne consultant.
Discrimination Policies
The 2009 lawsuit underscores the importance of Arbonne implementing and maintaining strict anti-discrimination policies. Prospective consultants and customers should feel confident that the company takes such issues seriously and has measures in place to prevent discrimination.
Business Model Transparency
The 2017 lawsuit and its subsequent dismissal raise questions about the transparency and sustainability of Arbonne’s business model. It’s crucial for potential consultants to understand the structure of the MLM model and the emphasis on recruitment versus product sales.
Regulatory Compliance
Given the recurring legal challenges, it’s important for Arbonne to ensure ongoing compliance with MLM regulations and to be transparent about earnings potential and business practices. This includes providing clear and accurate information about the average earnings of consultants and the costs involved in maintaining active status.
By understanding these legal and regulatory issues, potential consultants can make more informed decisions about joining Arbonne and can better navigate the complexities of the MLM industry.
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What I Like About Arbonne MLM
Despite the concerns and criticisms, there are several positive aspects of Arbonne’s MLM program worth mentioning. Here are some of the standout features that make Arbonne appealing:
#1 Proven Background
Arbonne began its journey in America in 1980. Any business that has been running for 40 years must possess reliability. Moreover, if Arbonne were a pyramid scheme, the FTC would have likely shut it down years ago.
#2 Social Media Site Advertising Abilities
When signing up with Arbonne, every specialist receives their own “ready-made website.” Additionally, there are specific details on how to effectively utilize social media sites for promotion.
#3 They Concentrate on Personal Growth
Arbonne hosts a yearly event in Las Vegas to provide training and entertainment to its consultants. The great thing is that you can earn a fully paid trip by achieving a specific sales quota for the year.
What I Don’t Like About Arbonne MLM
While Arbonne has its merits, there are also several significant drawbacks that potential consultants should be aware of. Here are some of the key issues that raise concerns about Arbonne’s MLM model:
#1 Pricey Products
One major red flag for any multi-level marketing firm is when their products are significantly more expensive compared to real-world alternatives. This pricing discrepancy often creates the impression of a scam.
#2 Covert Regular Monthly Expenditures
To remain an active consultant and maintain your status, you need to sell 150 PQVs every month. Failure to do so will result in losing your commission structure and the inability to earn any income while under suspension. Arbonne offers a solution through a monthly “auto-ship” order, allowing you to set up a recurring order of $150 worth of products to keep your account active. This setup means that Arbonne generates most of its monthly revenue from its consultants, who are also its largest consumers.
#3 Arbonne is a Pyramid Scheme in Disguise
In 2017, Cynthia and Michael Dagnall sued Arbonne, alleging it to be a pyramid scheme. This case was settled out of court in 2018. Understanding the concealed realities, it becomes evident why Arbonne is comparable to a “pyramid scheme in camouflage.” To avoid monthly financial losses from auto-ship, consultants rely on recruiting more individuals and passing the responsibility on to them.
#4 Just 1 in 256 Make More Than $18k a Year
According to Arbonne’s most recent income disclosure statement, the typical Arbonne Independent Consultant in the United States earned around $172 in commissions and overrides in 2022 (Arbonne Earnings) (Arbonne). This figure represents the median earnings of all active business builders across all levels. This means that while some top earners can make significantly more, the vast majority of consultants earn much less, with only a small percentage making substantial income.
Understanding these realities can help potential consultants make an informed decision about joining Arbonne’s MLM program.
Arbonne Pyramid Scheme Review: Conclusion
Arbonne MLM company has been in operation for over 40 years and continues to thrive today. One positive aspect is their 45-day money-back guarantee on all products, which provides a measure of consumer protection.
However, I am hesitant to recommend Arbonne due to concerns about it potentially being a pyramid scheme and the high costs involved. Making money relies heavily on recruiting others rather than selling products, and the majority of people attempting to earn money in this way end up unsuccessful.
While MLMs can be legitimate if they offer quality products and provide a source of decent income, there are inherent concerns with MLM business models. They tend to be expensive, requiring significant financial investment. Despite having products to sell, the emphasis is often on recruiting others because that is where significant earnings come from.
This heavy recruitment focus is how MLM companies generate their revenue. Unfortunately, recruiting can be challenging, as not everyone will join your team, leaving you to primarily sell products. If sales fall through, you may find yourself giving up, with the money you initially invested in joining the company gone to waste. I want to ensure you don’t end up in this predicament.
Thank you for taking the time to read my review on Arbonne MLM. I would greatly appreciate hearing your opinions. Have you ever been a part of this business or maybe you are still a member? Please feel free to share your reviews at the end of this page!
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Thanks for reading my Arbonne MLM Review! If you have any questions, or any experiences to share then please write them in the comments below. ;).
