Is Arbonne a pyramid scheme? Should you consider Arbonne as an excellent business opportunity? We’ll dive deep into the nature of Arbonne and try to find the answer to all your questions regarding it.
If you are in your twenties or thirties and frequently visit the social networking sites, you must have heard something about Arbonne. Of all the multi-level advertisement and marketing schemes of the world, Arbonne MLM is one of the most popular ones at present. Thousands of young women have taken to Facebook and Instagram to promote Arbonne, an incredible chance to create a business and live life independently. So, what is behind the science of its popularity?
This article intends to give readers detailed information about the Arbonne MLM and answer questions like “Is Arbonne a pyramid scheme?” Let’s explore more to know all about it and its amazing products:
What Does Arbonne Stand for and Is Arbonne a Pyramid Scheme?
Before we discuss in detail about Arbonne and if there is any Arbonne pyramid scheme, we must have a clear idea about what Arbonne is. Arbonne Int. is a global, multi-level promotion company (also known as network marketing) that trades vegan beauty and health products. It was established in Norway, in the year 1975. In 1980, Petter Morck, a co-founder of Arbonne, set up the company’s international headquarters in California. Since 2018, Yves Rocher, a worldwide beauty and health brand is the owner of Arbonne. This incredible brand has multiple offices in other countries like Poland, Australia, New Zealand, and Canada.
Are There any Arbonne Stores?
Arbonne does not have any physical store where you can visit and buy products. Instead, all the products are available and sold online only via their distributors. The distributors advertise those products on social media to make more people aware of the products and their benefits. You’ll find plenty of online videos in which these women actually apply the products on their skin or hair and explains to the audience how well they work.
History of formation and progress of Arbonne:
Before explaining “Is Arbonne a pyramid scheme?” let us give you a brief history of Arbonne and its progress as a leading MLM. Founded in the city of Orem in 1980 by Morck, Arbonne had been named after a beautiful village in Switzerland, Arbon. Morck had experience in the skincare industry of Norway since 1965. In 1975, after noticing that the ingredients used by the industry were not skin-friendly, he moved to Switzerland’s Arbon. Morck and Bottiglieri joined hands intending to give the world skincare essentials that will not harm their body.
They worked vigorously to create a wide range of products without using any animal or petroleum products.
They located their pioneering headquarters in Utah. Morck was an active member until his demise in 2008. Stian Morck, his son, is the present Brand Ambassador. Rita Davenport has served as the first president of the company for several years, starting from 1991 to 2011. In 2004, Arbonne decided to become a subsidiary of the famous company, Levlad, Inc. It was the primary manufacturer of its products in 2004. In 2005, Harvest Partners acquired both companies and named the acquisition as Natural Products Group, LLC.
In 2018, Groupe Rocher acquired both Nature’s Gate and Arbonne International from the Nature Products Group.
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The company earned $200 million in 2004 solely from sales of products. In 2005, the number of independent distributors was 434,000. It became 612,000 by the end of 2006. In the same year, they also established two distribution centers in Alberta and Indiana. This was an impressive addition to the existing center in Ontario’s Mississauga. In 2009, the number of consultants fell to 80,000 from 1.3 million.
In 2012, Arbonne introduced the Arbonne Charitable Foundation with the noble intention of supporting teenagers to develop confident, self-sufficient citizens.
In 2006, the company succeeded in expanding its business to Canada. After that, it constructed offices in Australia and the United Kingdom, in 2007 and 2008 respectively. Arbonne Poland was launched by the owners of the company in 2014. They founded two more offices in Taiwan and New Zealand, both in the same year: 2016.
In 2020, in January, Arbonne declared that it had garnered the B Corporation certificate.
What is unique about Arbonne products?
Arbonne is famous for healthcare products, makeup, hair and skin products, nutritious supplements and a wide range of beauty and self-care products. It claims that the products are made of natural ingredients only, making them absolutely cruelty-free. They use vegan ingredients of the best quality, and this is the reason of Arbonne products are little-bit costly.
The motto of Arbonne is to manufacture eco-friendly products. They integrate the most natural, beneficial and medicinal botanical ingredients abiding by the concepts of green chemistry. They vow to craft their products with expertise, innovation, and integrity. Arbonne also states that its manufacturers act responsibly, without causing any harm to Mother Earth.
After formulating all products at the Arbonne Institute of Research and Development, abbreviated as AIRD, the products are packaged and produced in the USA.
Key features of the products sold by Arbonne:
2. The self-care products prepared by Arbonne are free from:
- Mineral Oil
- Formaldehyde preservatives
2. The nutrition products of Arbonne do not contain:
- Animal products
- Artificial colour
- Saturated fats
- Trans fat
- Artificial sweeteners
- Artificial flavours
- Animal by-products
Arbonne celebrates a long list of at least 1400 ingredients that they have banned from being included in their products. So, it comes as a relief to the customers that the creams or shampoos they use have only herbal ingredients. Select your favorites from a wide range of moisturizers, cleansers, sunscreens, and exfoliants because your skin deserves nothing but the best.
How do Arbonne distributors make money?
Now let us come to the question of how Arbonne distributors earn money? After that, we’ll find out “Is Arbonne a pyramid scheme?” These are the two ways in which you can make money as an Arbonne distributor:
- Each time you sell a product you make some commission
- You can also earn money by recruiting more members to the Arbonne family.
The chain is quite simple. Every individual that a distributor recruits become a part of the Arbonne pyramid’s ‘downline’. The recruiter is referred to as the ‘upline’. Other than receiving a bonus for every candidate she invites, the recruiter also enjoys a bonus whenever the ‘downline’ recruit someone and when the downline succeeds in selling products in the future.
So, the equation is quite simple and as easy as falling off a log. The more candidates you hire, the richer you become. You can go on reaping the advantages of passive income. Does this make you wonder if there is an Arbonne pyramid scheme? In theory, income sources keep increasing with the addition of more people in the downline.
Is Arbonne multi-level marketing (MLM)?
Before exploring the true nature of Arbonne and concluding if ‘is Arbonne a pyramid scheme’ or whether it is an MLM, we must have good knowledge of MLM.
Multi-Level Marketing (MLM) is a very effective and smart strategy used by companies to motivate their existing distributors to direct appoint new candidates. They get paid a certain percentage of the sales done by the recruits. So, earlier distributors were making money only by selling products directly. Now, they have another source to bring home some extra profit. So, these are the three main things you need to understand about MLM:
- MLM is a business technique applied by many direct sales businesses, and it involves recruiting new members.
- In MLM schemes, there is no limit to the maximum number of distributors. There can be thousands of members getting appointed as distributors for a company in this manner.
- While most MLM practices are authorized and legal, investigation teams have been monitoring multi-level marketing businesses for a decade. They have found several companies with questionable practices like pyramid schemes. Critics point out that only the top recruiters of the company receive the majority of the advantages and profits.
So, you yourself can answer the question now: Is Arbonne a pyramid scheme? We cannot call all MLM companies fraudulent as they are involved in selling products, not just asking people to join their team.
How to determine the legitimacy of any multi-level marketing company?
If you notice how multi-level marketing takes place, it will become easy for you to deduce the answer to the query: Is Arbonne a pyramid scheme? There is only one thing that you have to consider. If the company sells its services or goods to all consumers, it is an authentic and reliable multi-level marketer. But, if the company sells goods or services only to members who have to convince more people to opt for membership for becoming eligible to purchase the goods, there are chances that it is an illegal pyramid strategy.
What is a pyramid scheme?
A pyramid scheme is one of the illegal investment scams that depend on a hierarchical setup of multi-level marketing or network marketing. The Ponzi scheme is the most common example of a pyramid scheme. A pyramid scheme does not rely on the sale of products as the primary source of income. Instead, consistent recruitment is what fuels the business. So, the base of this type of pyramid comprises of the new recruits as they generate the funding or returns.
The earlier investors who are structured above new joiners become richer without doing anything. The permanent inflow of cash from new investors who make their way to the top keeps the business running. It means that not all multi-level marketing agencies can be categorized as pyramid schemes. So, is Arbonne a pyramid scheme?
You can identify a pyramid scheme based on a straightforward criterion. If a company gives more emphasis on recruiting members than on sales of products or services, the answer is clear to you. It is a pyramid scheme.
How does a pyramid scheme collapse?
From the initiation point of the scam, the liabilities of a pyramid commence exceeding the value of its assets. The only alternative left for it to generate wealth is by luring members to look for new recruits and get extraordinary returns. The new recruits can again receive payment only by bringing additional investors for the company. On every occasion, the scheme starts losing steam and then ultimately collapses.
The business model of Arbonne:
Is Arbonne a pyramid scheme or simply an MLM? The business model of the company is the direct selling model. Independents consultants sold the products from their homes and not in stores. So, it is mainly a home-oriented business, making it easy for working as well as unemployed women to join it. Arbonne also has membership with the Direct Selling Association.
In 2012, a non-profit, charitable foundation was organized, abiding the State of California’s laws and regulations. The name of the organization is the Arbonne Charitable Foundation. The Foundation continues to have charitable status in the countries of Canada, the United Kingdom, the United States of America, and Australia.
Can you really make money with Arbonne?
Arbonne reps keep bragging about their financial stability and extravagant lifestyle. The Arbonne official too claims to give you the liberty to lead the life you’ve always dreamt of by running your independent, successful business. So, the question is, can you really attain all these with Arbonne?
All enjoy a few advantages and get bonuses each time they sell Arbonne products. But, when it comes to making good money required for maintaining a lavish lifestyle, very few achieve that target. Yes, very few people manage to make meaningful incomes because of their constant efforts.
Arbonne has more than 250,000 consultants in different parts of the world, and only there are very few high earners. Most of the other members are merely non-earners and heavy shoppers of Arbonne products.
So, is Arbonne a pyramid scheme? As we said earlier: if a company’s revenue comes mostly from adding new recruits to the system and not from product sales, then it is a pyramid scheme. But, Arbonne sells millions of products globally, and its products are equally popular among women of all age groups. In 2017, Arbonne earned $600 million only from product sales.
How much can you earn with Arbonne?
- Client commission- If you sell products at the retail price to retail clients, you can get a commission of nearly 35 percent.
- Overrides- You get override commission for recruiting new people. The amount you make depends on your overall rank in the MLM.
- If you reach the level of the National Vice President, then you’ll get a high commission. You have to generate at least 160,000 points every month. You can also win a Mercedes Benz.
Reviews of some Arbonne products:
- Green Apple Energy Fizz Sticks- The Energy Fizz Sticks is the ideal replacement for the morning cup of coffee. As the instruction says, all you need to do it stir in one of the fizz sticks and create the most relaxing bubbly drink. You can also drink it for instant alertness and refreshing feel when you feel exhausted. How does the drink give us so much energy? It uses the same thing that coffee uses – caffeine. The idea that makes it better than coffee is the extra nutrients like vitamins present in the Green Apple Fizz Sticks.
- RE9 Advanced Intensive Renewal Serum #813- The Intensive Renewal Serum contains antioxidants, botanicals, and advanced peptides. The formula keeps the skin moisturized, makes it soft, smooth, and firm. Apply it every night on a clean face before going to bed and wake up with radiant, baby-soft skin.
The rate of complaint against Arbonne products is shallow as people find the items satisfactory. If you ever feel the need to submit your complaint against any Arbonne product after using it, you can visit their official website and leave your suggestions there. The Customer Service will reach out to you and provide you with a solution. You have to choose the type of complaint from the following options:
- Delivery issues
- Sales/ Advertising
- Collections/ Billing
- Warranty/ Guarantee
- The issue with a service or product
In addition to this, there is also a money-back policy for the benefit of their clients. You can get a refund if you notify them about your dissatisfaction regarding a specific product and the reason behind it within 45 days of the delivery.
Is Arbonne legit or scam?
If you are wondering whether Arbonne is a scam or a legitimate business, we will solve your confusion. The type of network marketing in which participants make money primarily by selling services or products is considered legitimate. So, Arbonne abides by the principles of legitimate business chains. The distributors also gain profit by introducing novel candidates to the business. A large amount of revenue is generated by selling cosmetics and other self-care products. Every year, Arbonne sells millions of products all over the globe. So, it should not be a problem to decipher if Arbonne is a scam or a legit company.
We tried to cover everything about the Arbonne MLM. You can visit their business website if you have further queries. www.arbonne.com is their website where you can also look at their products. If you are planning to join Arbonne, we’ll leave it up to you to analyze whether it’s a possible investment scam or not. You need to develop an understanding of multilevel marketing and how it functions to avoid unfortunate pitfalls. Till then, you can enjoy using the fantastic Arbonne night creams and makeup essentials.