Chances are your friend or relative has approached you with this extraordinary Arbonne business opportunity, and now you want to know; is Arbonne a scam or a legit company? If so, relax my friend because you’ve just landed in the perfect place.
I’d like to commend you first for taking the time to research about Arbonne before joining it. I hope you always do this before buying into any seemingly good product or business opportunity. It’s a wise move that will help you to avoid scams and find a genuine way to earn money online.
Arbonne Review Summary
Product Name: Arbonne
Price: Registration fee of $79, plus a $30 yearly renewal fee, plus monthly auto-ship.
Arbonne is a legitimate network marketing company that sells products within the health and beauty niche. People can join this company and make money by selling their products to customers, as well as recruiting other people into the program. However, you need to know that Arbonne is just another typical MLM that will need you to do a lot of recruiting to make some decent income. This means that you’ve got to have good recruiting and direct selling skills to succeed in this company. Otherwise, you’ll most likely fail, just like the majority of their distributors did. That’s why I don’t recommend this opportunity to you, and you’ll understand everything clearly as you read through this Arbonne review!
Let me make something clear; I’m not affiliated with this company in any way, and therefore, I won’t try to sell the opportunity to you unless it’s worth it. As usual, I just want to give you my unbiased third-party Arbonne review to help you understand how this business really works.
So, is Arbonne a scam? Or is it really the no.1 global brand in healthy living as it claims?
Dive with me into the review to find out all the truth…
What Is Arbonne
Arbonne is a Multi-Level Marketing (MLM) company that’s based in Irvine, California. It focuses on selling products within the health and beauty industry.
The company was founded by Petter Morck in Switzerland back in 1975. He had worked for a skincare and makeup company in Norway before creating his own beauty company.
He realized that some companies use inorganic ingredients to produce their products, which he thought isn’t very healthy and safe for the skin. Morck wanted to create a company that uses only botanical and herbs to address this issue.
In the beginning, Arbonne had 19 products and used a network of consultants. I couldn’t find information regarding what was happening between 1975 and 1980, but Arbonne had started gaining popularity in the year 1980.
The company’s first headquarters were based in Orem, Utah. Now, it operates in seven distinct countries that include USA, UK, Poland, Canada, Australia, New Zealand, and Taiwan. It has thousands of consultants from all over the globe and had an approximate annual sales revenue of $544 million in the year 2018.
The Arbonne Company claims to have been growing and expanding while maintaining their core values regarding the manufacture of its products. Furthermore, they claim that their beauty products are healthy and effective for their customers.
On the surface, everything seems great. However, one red flag about this company is that Natural Products Group LLC, which is their ex-holding company, went bankrupt in 2010.
Arbonne claimed that their products are not only safe, pure, and beneficial, but also based on botanical. Actually, they have a list of over 2,000 ingredients that are not allowed in their products.
This seems very appealing, right? However, I can tell you that every other company in this industry is claiming the same thing – organic, natural, science-based, clinically-tested, non-toxic… name them.
Let me as you a question; how many health and beauty MLM’s do you think are out there?
After reviewing numerous MLM opportunities on this website, I can tell you honestly that there are tons of them, and they normally operate in the same way.
Some examples are:
If you know how these similar companies work, any claims by MLM’s won’t be so convincing to you anymore. And you’ll realize that Arbonne is nothing special but just another MLM company indeed.
Anyway, that’s all about the company. Next, let’s see how it really works!
How Arbonne Works
In any Arbonne review, it’s vital to look at how the independent consultant opportunity works. This will help you to know if Arbonne is a scam or a pyramid scheme.
If you want to become an Arbonne’s independent consultant, you’ll need to pay a fee that gives you access to the company’s products. Then, you can sell the products directly to customers through direct selling to earn retail commissions.
Moreover, you can recruit other people under you to sell the products or even register new Preferred Clients.
After paying the required fees, you can place products’ orders online, via fax or phone calls. The products have different price tags.
Once you become an independent consultant, you’ll receive the Arbonne Boutique and business aids from the company. The boutique consists of items like logo merchandise, personalized labels, and business cards. The aids include items like product brochures and sample packs.
Arbonne also offers business aids that you can buy as an independent consultant to improve your selling efforts. To learn more about being an independent consultant, you can use the Strong Start Program. This comes with a username and password that you’ll get after paying the membership fees.
As an independent consultant, you can work to climb up the ranks in the company, which include:
- Executive District Manager
- Executive Area Manager
- Executive Regional Vice President
- Executive National Vice President
- District Manager
- Area Manager
- Regional Vice President
- National Vice President
So, how do you get compensated by Arbonne? Well, head on to the next part of my Arbonne review to find out.
Arbonne’s Compensation Plan (a.k.a. Success Plan)
According to their compensation plan (or what they call Success Plan), you can earn commissions from Arbonne in four main ways.
Client Commissions – These are the retail commissions that you earn if you sell Arbonne’s products to your clients. You’ll earn 15% for preferred customers and 35% for normal clients.
Overrides – These commissions are earned depending on the sales volume of your downline team.
Mercedez-Benz Cash Bonus – If you reach the Vice President rank, you can earn a one-year lease of a Mercedez-Benz depending on your team’s sales. (Lol! Just a lease? Some other MLM’s offer dream cars as rewards…).
Other Cash Bonuses – Just like in most other MLM’s, Arbonne offers other types of bonuses based on your personal sales performance or that of your team.
That’s how you can make money with Arbonne. However, when you’re new in Arbonne, you can only earn commissions from your direct referral, which is 6% overrides. For the other downline levels, you’ll earn 0%.
This is a major problem because you can’t rely on the business for passive income. You can earn the Multi-Level overrides commissions only after reaching certain ranks.
That’s all about the compensation plan, and you can check it out here if you’d like to see it in full.
Now, I know you might be wondering; what kind of health and beauty products does Arbonne sell? Well, that’s what we’re going to look at in the next section of my Arbonne review, so keep reading.
Arbonne’s Product Line
Arbonne sells personal skincare and nutrition products, as well as beauty products that are botanically based. The company emphasizes healthy living both inside and outside. They claim that their products are safe, pure, and beneficial.
As I mentioned earlier, the company even has about 2,000 ingredients that they put in their “Not Allowed List.”
Some of the most popular product categories offered by Arbonne include:
- Skincare – Includes products like toner, sunscreen, facial cleanser, and eye cream, among others.
- Bath & Body – Includes products such as lotion, lip balm, mask, hand wash, and essential oil, among others.
- Makeup – Includes makeup primer, eyeliner, lipstick, mascara, etc.
- Nutrition – Includes products such as snack bars, energy sticks, immunity booster, protein shake, etc.
- Hair – Includes hair spray, hair serum, conditioner, shampoo, etc.
If you’d like to see the full product catalog of Arbonne, you can check it here. All their products are listed with their ingredients, which is good since it can help you to determine if you like them or not.
Now that we’ve looked at how Arbonne works and its products let’s see how much it costs to join this opportunity.
To start with, you need to know a consultant by name or ID, who have already joined the company.
After that, you’ll complete a form with your personal information, such as name, email, and address, as well as the confirming consultant. Then, add a registration package to your shopping cart and agree with their terms and conditions.
However, if you already know a consultant of Arbonne, you don’t have to do all these things because they can get you into their company.
Once you’re accepted to be a consultant, you’ll be required to make the following payments:
- $79 Registration Fee
- $39 Annual Renewal Fee
- $250 – $500 for the Starter Pack.
Those are the costs associated with joining Arbonne. However, to benefit from the entire compensation plan, you’ll need to have a minimum of 150 qualifying points, which you’ll get for buying or selling Arbonne’s products. It may require you to order a monthly auto-ship to remain eligible for commissions.
The Owners Of Arbonne
Petter Morck is the founder of Arbonne. He was a Norwegian entrepreneur who started the company in 1975 in the United States. He was very active in the company before he passed away in 2008.
The Arbonne Company is named after a Switzerland village known as Arbon. Petter worked with a team of biologists, herbalists, and biochemists to develop a line of skincare products that eradicated any commonly used ingredients, which they found unsafe to the human skin.
Currently, Petter Morck’s son is the Brand Ambassador of Arbonne, and Jean-David Schwartz is the CEO since June 2018.
GOOD VS BAD
- The company has a long history (over 40 years).
- Their products seem healthy.
- They have a nice success plan.
- They’re accredited by the BBB with an A+ rating and are a member of DSA.
- The products are rather overpriced.
- They charge a yearly renewal fee.
- You’re needed to have a quota of 150 qualifying points each month to receive the commissions.
- There are tons of complaints.
- Low success rate.
- Overreliance on recruitment to make money.
- The Arbonne lawsuit.
The Users Of Arbonne
Before you make up your decision regarding Arbonne, it’s essential to know what the people who have already joined or used its products are saying. Reading their experiences with the program will help you to know whether the opportunity is really worth your time and money.
Therefore, I did comprehensive research on different sites such as TrustPilot, Glassdoor, and SiteJabber, among others, and found the following Arbonne’s user reviews:
As you can see, some people are complaining about the high costs of the products and their effectiveness, while others are calling Arbonne a scam and a pyramid scheme.
Although Arbonne is not an outright scam or Ponzi scheme, there are several red flags that you need to know in order to make a rightful decision about it. This takes us to the next part of my Arbonne review, which is:
Ugly Truths Revealed
1. Overpriced Products!
Although the startup cost is fairly cheap, the products offered by Arbonne are somewhat expensive. A good example could be the Arbonne protein powder that costs over $75.
When products are overpriced, it becomes hard for average consumers to afford them. Furthermore, it makes it hard for you to make many sales and make money. I guess this is the reason why the majority of Arbonne’s participants failed, as I’ll show you in a sec.
2. Very Low Success Rate!
As I’ve just mentioned, most people who joined Arbonne didn’t succeed. Only those who recruited tons of people managed to make some decent income with this company.
According to the Arbonne’s income disclosure statement, only 24 percent of their consultants earned $3,851 per year, which is around $320/month. I believe this is far below the minimum wage of most countries.
Then, 66% of all Arbonne members earned about $839 per year, which is unreasonable considering the cash and time they invested. If you want proof, here it is:
You can check out their full income disclosure statement for 2018 here if interested.
Literally, 90% (24+66%) of all distributors failed to make a considerable income, which is really disappointing.
Actually, many members have revealed that they didn’t earn a lot, meaning that they just wasted their time in the company.
Nevertheless, some consultants succeeded in this company, and those made up the remaining 10%. What this means is that you’ll have a 10% probability of succeeding with Arbonne if you join.
Honestly, this is not a new thing in the MLM world since most MLM’s have very low success rates. You can check out the following examples just to prove that I’m telling the truth:
To succeed in Arbonne’s business, you’ll need to do a lot of recruiting, and this takes us to the next ugly truth.
3. Too Much Focus On Recruitment!
Arbonne’s products are rather expensive, which makes it hard to make many sales for higher income. This leaves the consultants with only one option to make money: – recruitment.
So, to make a good income with Arbonne, you need to be very good at recruiting and enroll as many people as you can into their program.
Let’s face it; not everyone knows a lot of people, right? So, what happens after you’ve exhausted all the friends and relatives you have? Will your earnings still rise?
Then, what if you can’t find anyone else to recruit into this opportunity?
Ok, you can still sell the products to make money. Nonetheless, you’ll still need to keep your team active and to move.
You can indeed make a lot of money with this company, but this will require a lot of recruiting on your part. And this is what they don’t tell you! In my opinion, that’s why MLM businesses aren’t for everyone, as we’ll see in a moment.
4. MLM Is Not For Everyone!
To succeed in any MLM business, you’ll need to have good direct selling skills as well as recruiting skills. However, the fact is that not everyone has these skills.
This means that it’s going to be very hard for those who are novices in the MLM field to make a good income with this opportunity. It will also be difficult to compete with those consultants who already have these skills.
That’s why I said, MLM is not for everyone!
5. Arbonne’s Lawsuit!
On 25th May 2017, a Texas couple indicted the Arbonne company for being a pyramid/Ponzi scheme. This was done in the Orange County Superior Court.
However, the company disputed the accusations of the Dagnalls in a statement. For more information about this lawsuit, click here.
Are You Tired Of Scams?
Is Arbonne A Pyramid Scheme
Arbonne uses the multi-level marketing business model and has real products to sell. Their members can earn through selling the products as well as recruiting new members into their system.
With that said, Arbonne does not seem to be a pyramid scheme since it doesn’t meet the definition of one, as stated by the Federal Trade Commission.
Although there’s a lot of recruitment going on here, the compensation structure for recruiting doesn’t follow a pyramid scheme incentive plan.
Is Arbonne A Scam
Any Arbonne review will try to answer the question, “Is Arbonne A Scam?”
Therefore, I’ll be answering this question in this section of my review.
After doing thorough research about this company, I can say that Arbonne is not a scam indeed. Although there are lots of negative members’ feedbacks about the products, refunds, shipping issues, and other things, it’s still a legitimate company.
The Arbonne company has been in business for over 40 years now and has attained an A+ rating on the Better Business Bureau. This, at least, proves that it’s a legit company since it would not have survived that long if it were a scam or even a pyramid scheme.
Nonetheless, the fact that Arbonne is not a scam doesn’t mean that you should join it. Actually, I personally recommend you to avoid this opportunity at all costs, unless you’re very good at network marketing.
As we saw in their income disclosure statement, the majority of their members (about 90%) did not make any substantial income with the company. This means that your probability for succeeding here is 10%, and that of failing is a staggering 90%.
If you lack the special direct selling and recruitment skills, you’ll most likely fail and probably quit after a few months, which is very disappointing.
With that said, I honestly hope that my Arbonne review has helped you to determine whether it’s a good opportunity for you to join or not. Now, I believe you’ll be able to make a well-educated decision regarding it.
How I Make Income Online
The method I use and recommend you to use is called affiliate marketing. This is my favorite business model since it’s not as risky as the MLM model. It involves promoting products from other people or companies to earn commissions in return.
I found a program called WA, and what they offer is a systematic training, with all the tools you might need in creating your first online business. If you are serious about your online business and want to work hard, then this is for you.
I can even offer you my personal assistance or coaching if you’d be interested. Simply join the platform and send me a message through it. I’ll get back to you as soon as I can and help you with whatever you may need.
Anyway, I hope you enjoyed reading my unbiased Arbonne review. As usual, I’d love to hear your opinions about this Arbonne opportunity as well as my review.
If you have any questions or thoughts whether Arbonne is a scam or anything else, then please leave them in the comment section.
This post may contain affiliate links for more info visit my disclaimer page.