Is Arbonne a Pyramid Scheme or Not? – MLM Scam Review

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Arbonne MLM Review - Is Arbonne a Pyramid Scheme?

Welcome to the ultimate Arobonne MLM review.

Lots of people are wondering whether Arbonne is a pyramid scheme or a legitimate MLM company. And right so!

If you are looking to learn:

  • Is Arbonne a pyramid scheme
  • How it really works
  • The real cost to start
  • How much can you make
  • And much more!

You’ve landed on the right page!

I’ve dedicated a few days to analyzing Arbonne MLM, taking notes, uncovering hidden info, and thoroughly going over the program so that I can provide you with the most helpful Arbonne pyramid scheme review.

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I Want To Know…

About the Reviewer

Hey, I’m Ivan Brozincevic!

Since 2018, I’ve been making a full-time income online, which allowed me to quit my old job (about me).

Initially, I struggled to identify legit courses and avoid ones that were just out for my money.

That’s why I created this website – my main goal is to help you steer clear of pitfalls and discover the top online business courses.

Every week, I invest hours reviewing online courses and writing reviews based on my fact-driven review guidelines to assist you in making an informed choice.

Related: Check out my FREE training program for making money online.

Is Arbonne MLM A Scam?

In my review, I want to clarify that Arbonne MLM is not a scam. The company offers legitimate products for selling and earning money.

They provide a commission for each product sold, along with bonuses for recruiting more people into the MLM. However, it’s important to note that some individuals perceive Arbonne as employing legal tactics similar to a pyramid scheme.

Eventually, these companies using such systems may face consequences when the law catches up. It is uncertain whether the FTC and other relevant authorities will uncover their methods and enforce changes in the future.

Due to these concerns, I do not recommend Arbonne MLM to you or anyone else. Additionally, it is worth mentioning that this opportunity requires a significant financial investment, as evidenced by the expenses associated with earning a commission.

Remember, just because it offers a work-from-home option does not automatically make it the right fit for everyone. See the rest of my Arbonne pyramid scheme review to learn more!

What Is Arbonne?

Arbonne is a company that sells health and wellness products, including makeup, nutritional supplements, hair care products, and skincare. The company was founded in Norway in 1975 by co-founder Petter Morck, who later established its headquarters in Irvine, California in 1980.

Currently, Arbonne is globally owned by Yves Rocher, a renowned health and beauty brand, and they boast an impressive annual revenue of over $500 million.

Aside from the United States, Arbonne operates in several countries, including the United Kingdom, Canada, Poland, Australia, New Zealand, and Taiwan.

What Is Arbonne MLM About?

Arbonne is known as an MLM business. Its primary function is to sign you up, have you purchase a product kit, and then encourage you to recruit your close friends, family members, and colleagues to do the same.

To be honest, it is often promoted by high-ranking network marketing members who supposedly earn significant amounts of money from getting others to join. These individuals are supposed to teach you how to become a successful “Multi-level marketer.”

Unfortunately, most participants in the program barely make any money from promoting the products.

That’s just the reality…

So, how does it work? Can you make money? Keep reading my Arbonne MLM review to find out everything you need to know before making your own decision.

Is Arbonne a Pyramid Scheme?

Before delving into the details of whether Arbonne is a pyramid scheme, it’s important to first understand what exactly constitutes a pyramid scheme.

What is a Pyramid Scheme?

A pyramid scheme is a business model that recruits members by promising payments or services in exchange for enrolling new members into the scheme, rather than providing investments or product sales. According to Wikipedia, it is described as a fraudulent system.

If you’re interested in learning more about pyramid schemes, there is a super-helpful YouTube video below that explains how they work and provides tips on how to spot one!

So Is Arbonne a Pyramid Scheme in Disguise?

Arbonne is often deemed not a pyramid scheme because participants earn money by selling products and recruiting new members.

However, the company cannot avoid pyramid scheme allegations simply by selling products, especially if they are solely sold to distributors.

It is crucial to make a minimum of 70% profit from retail sales to the public, rather than from internal sales within your organization.

Arbonne, however, does not have a traditional workforce, as they solely operate with independent contractors who are not employed.

This unique structure leads some individuals to perceive Arbonne as a pyramid scheme.
Moreover, there are no limits to the number of people you can invite to join your downline, and once you have a sufficient number of individuals, you can form a team.

By doing so, you can earn commissions when your team members invite others to join or when they make product sales.

Arbonne Pyramid Scheme Model

Arbonne operates by recruiting individuals within a pyramid structure, leading to questions about whether it is a pyramid scheme.

Merely selling products is insufficient within an MLM company, where significant earnings come primarily from recruiting. The top of the pyramid offers the sole avenue for substantial profits, including commissions from your downline’s consultant sales.

If no recruits are made, income is generated solely from commissions on personal product sales. Joining the scheme is a prerequisite to earning money in this manner.

In the subsequent section of my Arbonne MLM review, I will explain how you can join.

Related Review: Is Tupperware a Pyramid Scheme?

How Does Arbonne MLM Work?

Arbonne does not rely on advertising its products directly. Instead, they leverage their distributors to promote and market the products.

When it comes to promotion, distributors utilize social media by creating videos that showcase how the products work.

Through product sales, distributors earn commissions. Additionally, they can generate income by recruiting new distributors to join the company.

Each recruited person becomes part of the distributor’s downline and receives a bonus. The same applies to subsequent recruits in the downline, with each person earning bonuses.

In summary, the more people you invite, the more potential income you can earn. However, the actual amount will depend on the number of people you bring in.

What Is Arbonne’s Product Line?

Here are the products that Arbonne offers.

  • Plant-Based Nutrition Supplements
  • Bath & Body Spa Products
  • Botanically-based anti-ageing skin care for women & men
  • Botanically-based cosmetics & hair products
  • Sports Nutrition Products
  • Baby Care Products

Are Arbonne Products Safe?

When reading reviews of Arbonne, it’s common for some people to express concerns about potential negative effects. It’s important to note that any adverse effects are typically caused by specific ingredients in the formulas rather than the products themselves.

For example, glucomannan, being a fibre, can sometimes lead to gas and bloating. If you experience any severe negative reactions, it is recommended to seek medical assistance.

However, in general, Arbonne products are considered safe for use. Now that we’ve addressed that, let’s move on to the next part of my review on Arbonne’s pyramid scheme/MLM model and explore how you can leverage this business opportunity to earn money.

How To Make Money With Arbonne MLM?

There are two ways you can make money from Arbonne, just like most MLM companies:

  1. Selling products and earning a commission.
  2. Recruiting people into the MLM program and earning commissions for their sales.
Arbonne MLM Opportunity

Arbonne’s main focus lies in recruiting individuals for their MLM scheme. Arbonne representatives receive substantial bonuses and promotions based on their recruitment efforts.

Selling the business opportunity proves to be more lucrative, making product sales less appealing.

Can You Make Money With Arbonne MLM?

Selling Arbonne products to the general public can still be a profitable venture, but the lack of data released by Arbonne makes it difficult to determine the potential earnings.

It is unclear how they conform to the 70/30 scale, which requires 70% of a company’s profits to come from retail sales rather than recruitment.

Additionally, since Arbonne consultants themselves spend over $100 per month on products, they are likely the main customers rather than the general public.

Related Review: Is Amway a Scam or Legit?

How Much Can You Earn With Arbonne MLM?

Arbonne operates as an MLM company, meaning that, like other MLM companies, you can generate income by selling and recruiting.

When it comes to Arbonne, there are four distinct methods to earn money.

  • Retails Commissions – As an Arbonne Independent Consultant, you can earn between 15% to 35% on all product sales you make. This commission is paid weekly.
  • Override Commissions – This commission is paid monthly. With the Arbonne Override Commissions, you can earn a percentage of the total product sales of your team.
  • Mercedes Benz Cash Program – Qualified independent consultants, can get a white Mercedes Benz paid for by the company. 
  • Arbonne Cash Bonus Programs – There are different ranks that you can achieve in Arbonne based on your sales performance.

Unlock each position and meet the requirements to earn cash bonuses ranging from $100 to $600. As you recruit people and build a sales team, you unlock higher rank positions that accelerate the selling of Arbonne products.

Related Review: Is Young Living a Pyramid Scheme?

How Much Does It Cost To Join Arbonne MLM?

To join as an Independent Consultant in Arbonne’s MLM program, there is a $49 registration fee along with a yearly fee of $29.

Arbonne Joining Fees

Although you won’t receive any products initially, starting a business without them is practically impossible. However, you will have the opportunity to access discounted value packs ranging from $270 to $500.

These packs include a wide range of products for you to try and use in your marketing efforts. Nevertheless, it is crucial to note that the expenses don’t end there, and there is something important that you need to be aware of.

Hidden Extra Costs and Fees

Most MLMs claim that the distributors make the best customers. These MLMs often manage to evade being identified as pyramid schemes because they offer products for sale.

However, we must ask: who buys these products? Is it the general public or the distributors themselves?

Both groups purchase the products, but it is primarily the distributors who make the most purchases since they are the ones responsible for selling.

For example, with Arbonne, every consultant must spend a specified amount on their products each month to remain active and earn any commission.

Failure to spend money on the company monthly means you won’t earn any commission from your sales.

So How Much is This Minimum Amount to Remain Active With Arbonne?

To remain active, you need to generate 150 PQV worth of products with your Arbonne account each month. PQV (Personal Qualifying Value) is a points system where 1 PQV point is equivalent to 1 USD.

In the US, for every $1 you spend on Arbonne products, you’ll earn 1 PQV. This means that you need to spend $150 on their products each month to remain active and earn commissions on your sales.

Another way to reduce your spending is by signing people up. When you sign up someone under your downline and they purchase a product, you will earn PQV points. If you don’t invite someone into your downline, you will have to spend again.

It is worth noting that Arbonne uses a recruitment model that resembles a pyramid scheme. However, instead of cash rewards, they offer cash bonuses, commission increments, and promotions as financial incentives to focus on recruitment.

Related: Modicare MLM Review

What I Like About Arbonne MLM

Proven background

In 1980, it all started in America. Any business that has been running for 40 years must possess reliability. Moreover, if Arbonne were a pyramid scheme, the FTC would have likely shut it down years ago.

Social media site advertising abilities

When signing up with Arbonne, every specialist receives their own “ready-made website”. Additionally, there are specific details on how to effectively utilize social media sites.

Concentrate on personal growth

Arbonne hosts a yearly event in Las Vegas to provide training and entertainment to its consultants. The great thing is that you can earn a fully paid trip thereby achieving a specific sales quota for the year.

Related Review: Is Mary Kay a Pyramid Scheme?

What I Don’t Like About Arbonne MLM

Pricey products

My number 1 red flag for any multi-level marketing firm is when they have significantly higher prices compared to real-world alternatives. This discrepancy in pricing creates an impression of a scam.

Covert regular monthly expenditures

To remain an active expert and maintain your energy, it is necessary to sell 150 PQVs every month. Failure to do so will result in the loss of the commission structure and the inability to earn any cash while under suspension.

However, there’s no need to worry because Arbonne is here to assist you. You can conveniently make a monthly “auto-ship” order. This means you can establish a recurring order of $150 worth of products every month to keep your account active.

It’s important to remember that Arbonne continues to generate monthly revenue primarily through its consultants, who are also its largest consumers.

Arbonne is a pyramid system in disguise

In 2017, Cynthia and Michael Dagnall sued Arbonne, alleging it to be a pyramid scheme. However, this case was settled out of court in 2018.

Upon understanding the concealed realities, it becomes evident why Arbonne is comparable to a “pyramid scheme in camouflage”.

To avoid monthly financial losses from auto-ship, experts rely on recruiting more individuals and passing the responsibility on to them.

Just 1 in 256 make more than $18k a year

Only 13% of professionals made money in 2014. With basic mathematics, you can see that only 0.39% of all specialists earned more than $18k in that year.

This means that just 1 out of 256 specialists earned over $18k annually!

Related Review: Is DoTerra a Legit MLM Company?

Arbonne Reviews, Complaints & Lawsuits

In November 2009, Arbonne International LLC was accused of breaking government laws by the USA District Court for the Southern Area of Indiana.

Lisa Wilson was denied a job opportunity due to her special needs (deafness). As a result, Arbonne agreed to a $30,000 settlement with Wilson and committed to implementing anti-discrimination measures and training.

In May 2017, Cynthia and Michael Dagnall filed a lawsuit against Arbonne in Orange County Superior Court, alleging that the company operated as a pyramid scheme.

On March 20, 2018, the Arbonne Pyramid System Class Action Suit was dismissed.

Additionally, on YouTube, you can find numerous videos exposing Arbonne MLM consultants for making exaggerated claims to boost product sales.

Arbonne Pyramid Scheme Review – Conclusion

Arbonne MLM company has been in operation for over 40 years and continues to thrive today. They offer a 45-day money-back guarantee on all their products, which is a great benefit.

However, I am hesitant to recommend Arbonne due to concerns about it potentially being a pyramid scheme and the high costs involved.

Making money relies heavily on recruiting others rather than selling products, and the majority of people attempting to earn money in this way end up unsuccessful.

MLM can be legitimate if it offers quality products and provides a source of decent income. However, there are some concerns I have with MLM business models.

They tend to be expensive, requiring significant financial investment. Additionally, despite having products to sell, the emphasis is often on recruiting others, as that is where significant earnings come from.

This heavy recruitment focus is how MLM companies generate their revenue. Unfortunately, recruiting can be challenging, as not everyone will join your team, leaving you to primarily sell products.

If sales fall through, you may find yourself giving up, with the money you initially invested in joining the company gone to waste. I want to ensure you don’t end up in this predicament.

Thank you for taking the time to read my review on Arbonne MLM. I would greatly appreciate hearing your opinions. Have you ever been a part of this business or maybe you are still a member?

Please feel free to share your reviews at the end of this page!

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Related Review: Infinitus MLM Exposed

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