Company: Arbonne International LLC
Current CEO: Kay Zanotti
Joining Fee: $79
The Arbonne Business Opportunity
Arbonne International began in Switzerland 1975 and specialises in health and wellness products using a direct sales, or mlm business model.
Products such as cosmetics, weight loss and skin care are central to its product offerings and they boast an almost 500 million dollar per year revenue with over one million reps around the globe. They claim that their products are scientifically backed and are not laced with harsh chemicals or tested on animals. They also list their product ingredients in detail which shows a good amount of transparency.
There are however, a number of people concerned about the price of the products and whether they are really worth the money in comparison to less expensive alternatives, but that is something you would need to decide for yourself.
From what I have seen the company does not claim unrealistic income potential, which is a big plus in my books. The whole operation seems very above board and clearly outlines the work that will be involved to achieve an decent income.
Essentially you sign up as an ‘Arbonne independent consultant’ and can re-sell their products with a replicated website and sponsor other consultants into your downline.
How It Works
To be completely honest, the Arbonne compensation plan is a tad confusing. I am not going to go into detail about it but I will outline my take on the ‘success plan’ and what it means for you.
From what I can understand getting qualified as an independent consultant is as easy as purchasing a $79 start up kit, which is a pretty low price point to get rolling.
This allows you to sponsor people, earn commissions selling products and receive discounts on purchasing various products. Looking at this from a business perspective however, there is a much higher cost to get involved.
In order to stay qualified as an Independent consultant you must maintain 1200 PQV for the year. There is also mention of having to maintain 150 PQV each month in order to receive overrides and bonus payments.
This means that to maximise this first level of this business (independent consultant) you should be aiming to achieve 150 PQV every month, and if you fall below 1200PQV in a year you will be demoted to ‘preferred customer’.
How PQV Is Calculated
Basically PQV includes your own purchases and the purchases of your customers.
1 PQV point will actually cost you about 65 cents as an independent consultant according to my calculations. But this can vary upwards or downwards depending on the product itself.
I got this estimation by looking at the US price plan in case anyone is wondering.
Here’s a snippet…
So if you aren’t selling enough product then it could cost you a minimum of about $780 per year just to reach 1200 points and stay qualified! It will cost even more to achieve the monthly 150 points if you are looking to make anything out of this, again this is ONLY if you are not earning these points by selling product.
If you are selling enough product, this won’t cost you anything other than your $79 to be qualified. This kind of thing is something I see a lot with mlm, there are hidden costs involved with really making any money, make sure you know what they are so you don’t feel ripped off after signing up.
Does all of this sound a bit confusing? Wait until you look at the compensation plan! All the information is there but it really is annoying and confusing to understand in my opinion.
The Costs Involved
- $79 to join
- $30 per year renewal fee
- Minimum 1200 PQV per year to stay an independent consultant (either sell enough product or be stuck paying $780 roughly per year)
- To receive bonuses and overrides you will need 150 PQV each month (potentially costing you roughly $97.50 per month)
What I Liked
- Good rating with the BBB and not many complaints
- They reveal product ingredients
- Low cost initial entry point
- Do not overhype income potential and show you exactly what sort of income people are already making
What I Didn’t Like
- Restrictions with online marketing
- Annoying and confusing compensation plan in terms of staying qualified
- Expensive products
- Cost of staying qualified can be potentially high
- You’ll be taught to chase down friends and family, which doesn’t really work
A Note On The limited Online Selling
Apparently Arbonne have a very strict no advertising online policy which a lot of mlm’s do since this is direct selling. If you are looking to leverage the online world to get referrals and sell product, this may not be the opportunity for you. Personally I do not like the idea of being landlocked and not being able to utilise the power of the Internet to drive your multi level marketing business forward.
Why Most People Will Fail
One of the main reasons why most people are going to fail is that you are being taught how to leverage existing relationships instead of building a real business.
You may go in all excited and enthusiastic but after a few months realise that your friends and family are just not interested, and fair enough. You are literally taxing your relationships to push your opportunity rather than targeting the right people.
You are simply not taught how to legitimately get and convert leads into your business.
Most people that don’t want to badger family and friends or have exhausted their friends list (inevitable) eventually turn to buying overpriced leads or join some elaborate online marketing funnel system to achieve success. The problem with buying leads is that only a very small number of them actually convert and you are paying a substantial amount of money to get them, this is not sustainable and not replicable for your team.
Be prepared to waste a lot of money buying leads. I’m not saying it’s impossible to succeed, but make sure you learn how to create your own website to market your opportunity, or get ready to obliterate your entire social network and probably lose some friends along the way.
Whether you decide for or against Arbonne as a business venture, weigh it up carefully and decide for yourself what is right. People do make money with Arbonne but as I’ve shown in this review, the vast majority end up losing money which is why you need a solid game plan moving forward. If you do get into this, at least now you have a better idea on what to expect.