Health and beauty have gotten to be a trendy market. With so many products in demand by lots of consumers. The industry has grown into a big business, and many MLM businesses selling into the health and beauty market, tend to lean toward using the MLM platform simply because of its popularity. Online marketing has also developed into a large scale industry with users looking at possible opportunities where they can earn a few extra dollars, with ideal working conditions to suit their lifestyle. Arbonne is part of the online boom, who sell health and beauty products, with several years of experience, and that’s what we’ll uncover today within this Arbonne MLM Business Review.
I’ll survey the products, also the opportunity, and look to see if the Arbonne opportunity is the best offer for you. It’s not always as easy as many of these types of companies make it sound.
Most related products sold by MLM businesses are not available in retail stores, so it seemingly provides consultants with a slight selling advantage. That’s great. But, is it all that easy to earn a few dollars? MLM, network marketing is a large business, and it’s no secret they all claim to have the unique opportunity available. That, for the majority of cases, is the furthest thing from the truth.
What Is Arbonne MLM?
The Arbonne business was, founded in 1975 by Petter Morck in a small Switzerland village of Norway. In 1980 he moved to Irvine in California where he established his headquarters and started an international marketing company. Norwegian born, Morck is the founder of the Arbonne skincare MLM business.
His passion in the skincare industry started back in 1965, and, after some time relocated himself in Arbon, Switzerland where he formed Arbonne skincare with Pierre Bottiglieri. Morck and Bottiglieri created a line of products without using any petroleum or animal ingredients.
All the products are researched, developed and tested in Arbonne Institute of Research and Development in Switzerland, and produced in the United States.
The company has experienced several changes since its founding, and in February 2018 was acquired by Groupe Rocher in Paris. Since the takeover, the Arbonne company expanded into seven countries throughout the world. And, they include the United States, Canada, New Zealand, Australia, United Kingdom, Taiwan and Poland.
The business model used by the Arbonne is moulded on the MLM platform using the direct selling platform where products are purchased only through their independent consultants. The latter is not a direct employee of the Arbonne business.
Are Arbonne Products Worth Their Price?
The Arbonne product range is substantial, which includes, Skincare, Bath & Beauty, Hair, Makeup and Nutrition. Arbonne claims all products are botanically based ingredients with scientifically tested formulas.
They promise the ingredients used, deliver a holistic approach to healthy living, and for better skincare results and plant-powered nutrition. Detailed information relating to the ingredient compound is available on their website.
Below is just a few of the listed products they sell.
The RE9 Advanced Lifting & Contouring five-piece set above, retails for $388 or if you are a preferred customer $310.40. A mighty substantial price to pay for an advanced lifting & contouring skincare set. Your customers may be happy paying these sorts of expenses as they believe them as being value for money in consideration they don’t contain any petroleum or animal compounds. However, other available products provide a similar makeup compound and are much cheaper.
The Arbonne MLM Opportunity
Arbonne products are sold by independent consultants who are contractors to the Arbonne MLM business plan. In a nutshell, what that means, you’re not a fully paid employee, so if you don’t sell any products, then you don’t earn any commissions. In the seven countries where Arbonne have a presence, consultant positions are available.
Arbonne operates on the same basis as to all other MLM business, where the consultants are required to generate many sales every month. At the same time introduce other people into the system who become part of your team, commonly known as your downline. You’ll receive a commission calculated on sales of your own, and you will also earn a passive income from all the transactions made by members in your downline.
How Much Does It Cost To Join Arbonne?
The registration fee to become a consultant will set you back $49, and you will get a personal e-commerce website and a digital catalogue. Preferred Clients registration costs $29, and you will receive a 20% discount on single items and 40% on value packs. Both options do carry a renewal cost of $29 every 12 months.
Arbonne, like all other MLM businesses, independent consultants, are not reimbursed for everyday operating costs. Things like car costs, fuel, telephone, etc., and many other related expenses will need to be paid by the consultant. So, they need to be taken into account as they will eat into the commission margins that you might earn as a consultant.
Can You Make Money With Arbonne?
Sales generate an income; therefore, your success hinges on making sales. They are the cold hard facts. Naturally, the more considerable amount of products that you may be able to sell will increase your monthly commission. Then there is, of course, building yourself a downline of other people and encourage them to replicate what you’re doing, and you will earn extra money from all of their sales.
But, there is also a catch, in your own time, you need to train every person that you recruit, and that means going out with them on the first few occasions, helping them through the sale process among many other things, and that will then eat into your selling time.
It does, of course, have long term benefits, because the better they get at selling then, the more sales they will generate, so that puts some extra cash into your pocket from these additional sales.
The other benefit of growing a downline will allow you to qualify for higher positions within the business—for instance, District Manager through to National Vice President. And every state within the hierarchy has set sale volumes before you can move to the next upper level.
Just in case you missed. If you take a more distinct look at the small print at the base of the image above, you’ll notice that it clearly says. “Earnings do not represent Independent Consultants profits as they do not include expenses incurred running and promoting their business”. That is why it always pays to allow for the out of pocket expenses. Also, rule of thumb suggests with potential commissions deduct at least 20% maybe even more, it just depends on your expense circumstances
Registering preferred client customers offers some benefits that they would otherwise receive, the likes of free shipping for all orders over the value of $100. And they also get a 20% discount on all single-item purchases and 40% on special value packs. For customers to become a preferred customer, there will be a 12-month subscription charge of $29, renewal each year.
And, if they wish to transfer to an independent consultant, they will be required to pay an additional transfer fee of $22. From your viewpoint, preferred customers are valuable to you, because you will receive a monthly commission on their sales provided they continue to make monthly purchases.
Being an Arbonne Consultant, you can also promote and sell products through your designated website provided to you through the Arbonne independent consultant agreement. Your customers can go to your site and order directly, so you may be earning an income while you’re asleep.
Money-Back Guarantee 45 Days
All the Arbonne catalogued products come with a guarantee of 45 days, and that also includes preferred customers. However, the warranty doesn’t contain any return freight charges they must be paid by the customer or in some cases by you.
The commission offered is much better than many other MLM businesses with a 35% profit margin attached to all sales, plus a further 15% commission for all purchases made by your preferred customers.
When I wrote this review, and at that time, there are no listed complaints against Arbonne according to the BBB ( Better Business Bureau).
Given that you are not required to hold an inventory of products, you must, however, purchase a welcome kit $49, with an annual renewal of $29. On top of that, if you want to upgrade to the preferred client program that will set you back an extra $20, and that allows you the benefit of buying products at a 20% discount, and 40% discount on value packs. Preferred clients also have to renew their membership annually.
May 2017, a claim was raised against Arbonne, it was alleged, at the time, Arbonne was a pyramid scheme.
The statement of disclosure suggested that 86% of distributors lose money. In 2018 the company settled with the plaintiffs to end the lawsuit. There have been other lawsuits, for instance, 2009 a case was issued against them for refusing to employ a woman who was deaf.
The company went into bankruptcy in 2009 but has since made a tremendous effort to re-invent itself in the market. Maybe a sign of the unknown.
Products Are Expensive
Given that the joining fee is relatively low to start, the results are not. Product prices customers have to pay is expensive. For instance, the average price starts around the $70 mark.
While the BBB has no registered complaints, that necessarily doesn’t suggest that there are no other complaints. Circumstantial allegations may suggest otherwise, as the skin cream damaged skin 2 hours after application. Below is what they had to say
Is Arbonne a Scam?
Possibly the Arbonne doesn’t quite fit into the scam category, but that doesn’t suggest it’s the best either. From my observations, selling skincare products can be a tough sell, with so many MLM skincare businesses and with a hefty price tag, and a flooded market earning money from this business model would be rather tricky. When you take into account, every MLM business operates on a similar basis of sales being “King”.
So, you may struggle to make a go of it, unless you have an extensive list of friends and associates who are willing to buy the products. Being your boss and having flexible working hours doesn’t add up to anything much if you’re not able to generate sales.
Let’s say you do make a start and begin building a downline, that too doesn’t help unless they also are selling, because if they aren’t selling they are not earning any income, and neither are you.
The Arbonne business model appears to lean significantly towards women who show a very keen interest in health, beauty, and skincare. Their model isn’t the most practical MLM business where you can earn an income or for that matter build yourself a strong downline, given the harsh policies that require you to abide by and operate within the framework.
Realistically, the strict working guidelines for any MLM business all lies within the fine print that most people ignore or fail to read. For peace of mind, and in your own best interest, it pays to read and understand the terms and condition as best you can as it is fundamental and should be associated with any decision making before committing to signing on.
Arbonne offers a flexible work schedule to suit your home situation. It also claims you can advance to higher positions with more generous compensation, but that is all dependent on the size of your team and the volume of sales your team produces.
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