Arbonne: Pyramid Scheme 2021 or a Great Business Opportunity: Is Arbonne a Scam
Many of us either already work from home or are looking for such a way to earn money. Lately, people often talk about Arbonne. However, the conditions themselves lead to the question: “Is Arbonne a MLM”? Anyway, using such technics can be leal but not pyramids. So, is Arbonne a scam? Let’s find out!
Arbonne Network Marketing: What Is It?
Arbonne was founded in 1980. To the founders, Peter is considered a marker. It is a retail platform for cosmetics and skincare products that promotes Swiss formulas on the market and claims to be a natural product. However, today we will analyze neither the quality of the products sold but the Arbonne’s structure. And after that, we can decide on the legality of this type of earnings. Is Arbonne MLM? The company itself does not hide the fact that its structure is multi-level marketing. This means that the company generates growth by constantly hiring new people to sell its products, that is, acting as a consultant. Consultants, in turn, earn on a complex commission system.
What does it mean? That is, your earnings depend on the number of sales and on the number of people that you bring to this business. On the official website of the company, you can see which countries this platform operates in. Among them, the United States, United Kingdom, Canada, Australia, New Zealand, and Poland. Let’s take a closer look at the UK market. According to statistics, about 21,000 consultants are working in the UK. It is a good indicator of employment but on the other hand, the number of employees does not guarantee high earnings. The United States is not a little skeptical about this type of marketing, since most of the lawsuits were initiated in the United States of America. However, it is difficult to deny the great commercial success. In the same British market, consultants were paid more than £ 10 million. Now when we realized that this is a kind of pyramid, the question arises: “Is Arbonne international pyramid scheme a scam?” Let’s figure it out!
Arbonne Multi-Level Marketing: lawsuits, and recalls
A class-action lawsuit was filed 4 years ago. The main complaint concerning pyramid scheme Arbonne. However, a year later, the claim was rejected. The company insists on fair competition and the natural properties of its products. However, since 2009, many products have been criticized and withdrawn. For example:
- Lots of branded peanut butter cups due to the risk of salmonella Typhimurium contamination.
- A batch of branded foam scrubs with sea salt due to the risk of infection with Pseudomonas aeruginosa.
- Day cream sample tubes with the brand name due to the presence of Gergoviae bacteria.
- Batches of branded eyeliner due to invalid ingredients.
- A batch of branded shower gels contained unacceptable staphylococci.
This leads to conflicting thoughts that the company is using unfair advertising.
Arbonne Pyramid Scheme 2021
Distributors are often forced to defend themselves because the Arbonne scheme is a pyramid. Many anti-MLS people recklessly call everything MLM, which causes the protection and even anger of the company’s insiders. Is Arbonne a pyramid how is it even possible? First of all, pyramids are illegal. Second, they sell goods. Arbonne is just a cosmetics company that believes in different marketing methods. While Arbonne’s rules may have been carefully thought out to look like a completely legal multi-tiered marketing company, in practice they can exploit illegal pyramids and loopholes to circumvent the law. When you are trying to make an analysis of Arbonne, you should always keep an eye on the money.
Is Arbonne a Pyramid Scheme and Why Do We Join It?
The Arbonne website contains a variety of promotional materials describing recruiting consultants – not just employees, but also as members of a growing community of like-minded and supportive entrepreneurs who contribute to empowerment and health.
TheArbonne’s operating model describes the economic benefits of earning commissions and provides interesting benefits such as discounts, cash prizes, and car bonuses, and travel abroad for those who achieve their goals. However, Arbonne uses the word “consultant” rather than “employee” with caution, because those who sign up to sell through them do so without any guarantee of income, as Arbonne admits in the recruitment section of its official website.
Look at the information about Arbonne’s business model that you need to know before we will continue:
- Arbonne’s current consultants typically use social media to “hire” other women from family and friends to join the company.
- Each consultant pays £ 53 to register for one year. In subsequent years, the subscription fee was £ 25.
- To sell products, consultants need to buy products so they can show them to family, friends, and the wider community. Arbonne doesn’t seem to disclose how much it recommends buying the consultants, but a basic 6-piece assortment will cost £ 200. It is unclear how much a typical consultant might buy, and possibly more. Encourage consultants to buy products as an investment in future sales, and you also need to pay for marketing materials. Each consultant has a minimum number of QV goals, which means they can only continue to serve as Arbonne consultants if they sell more than a certain amount. These goals are designed to get consultants to make sales.
- Arbonne provides consultants with training materials and courses, encouraging them to reach out to people they know through targeted activities and connect their social circles, emphasizing persistence and optimism.
- Those who have joined Arbonne report that they have joined a network of mostly women who form a team led by the person who hired them. These teams share ideas and motivate each other to sell. Encourage new consultants to not only see family and friends as clients but also as potential new consultants so that they can lead their teams. A list of the entire network they would contact to try and sell Arbonne products. This is mainly done through social media, but there are also emails and phone calls.
- Some people may make a little money, but they usually join first and are therefore at the top of the hiring hierarchy. The Arbonne level income is directly dependent on this hierarchy.
Arbonne positions itself as a leading provider of skincare and cosmetics and calls it pure natural products. These products are luxury goods and the retail price of products such as foundations is approximately £ 35. Although not a “designer” brand, it is a health-conscious brand recognized by PETA because it avoids animal testing, contains vegan ingredients, and promotes a “herbal” approach. However, its products do not seem particularly natural and have undergone some public scrutiny regarding the original, undisclosed product ingredients. Online research shows that Arbonne’s business folder states hold a good position on the market. While there are many public criticisms of Arbonne, they rarely rank high in Google searches because the criticism seems to be deliberately mitigated by the company’s extensive SEO.
Arbonne: Business Opportunity or Dubious Gamble
Thanks in part to social media, Arbonne has come under public criticism from social media, blogs, and forums, especially current and former consultants. For example, YouTube has a large number of videos produced by Arbonne consultants. Arbonne responded that he was frank with the rates provided to the consultants and that it acted within the legal boundaries of all regions. All income is based solely on a certain percentage of personal sales plus a certain percentage of the sales of the consultants they hire. The difficulty of making money is countless, making Arbonne vulnerable to criticism. Arbonne is a pyramid.
Is Arbonne a Scam?
No, this is not a scam. The company sells legitimate products that people want to buy. It also pays commissions and bonuses to consultants for any products they sell. However, you are promised fast and reliable earnings, but it will not be. Only a small percentage of consultants actually make good money in this type of marketing. Who knows, maybe the statistics are spoiled by those consultants who join for discounts.
In any case, on the Internet, you will find many positive and negative reviews. We have tried to make our review neutral so that you can make your own decision: “Is Arbonne MLM scam or not”? Thank you for reading the article to the end. See you soon on the pages of our blog!
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