Arbonne is a multi-level marketing (MLM) business that has operated for several decades. The company sells various health and beauty products, including skincare, makeup, and nutrition supplements. Like many MLMs, Arbonne has faced lawsuits and investigations over the years concerning both product safety and business practices. Despite these challenges, the company has persevered and continues generating over half a billion dollars in annual revenue.
Arbonne Company Overview
History of Arbonne
Norwegian businessman Petter Mørck founded Arbonne in 1980. As a veteran of Norway’s skin care industry, Mørck became concerned that existing products might harm customers. He relocated to Arbon, Switzerland, where he developed his own line of more natural alternatives. His vision centered on creating products free from petroleum and animal-based ingredients.
This vision led Mørck to establish Arbonne in 1980 in Orem, Utah. Four years later, the company relocated its headquarters to Irvine, California. During its early years, Arbonne experienced modest growth while avoiding major scandals. However, the early 2000s brought rapid expansion—and with it, significant challenges.
Arbonne Company Investigations
Arbonne has encountered numerous investigations and lawsuits stemming from both its products and operating practices. Most allegations have emerged recently, with the majority occurring in 2009 or later. In 2017, a Texas couple sued Arbonne in Federal court, alleging the company operates “a pyramid scheme masquerading as a direct seller of health and beauty products.” The lawsuit claimed the couple invested nearly $3,000 in products and fees while receiving only $30 in payments.
This case evolved into a class action lawsuit, attracting other distributors who claimed financial losses with the company. Plaintiffs alleged that Arbonne generates revenue not through product sales but by extracting money from distributors. The suit claimed only five individuals at the pyramid’s apex—named as defendants—were profiting from this scheme. The case was ultimately dismissed in 2018, and the allegations against the company remained unproven.
Beyond business practice concerns, Arbonne has faced product-related issues. Since 2009, the company has issued at least six product recalls due to elevated bacterial contamination levels. Government regulatory agencies have mandated some of these recalls. While these product issues have damaged the company’s reputation among some consumers, sales appear largely unaffected.
Arbonne Current Company Structure
Founder Petter Mørck remained actively involved until his death in 2008. His son, Stian Mørck, continues serving the company today as Brand Ambassador. As the company and MLMs generally experienced rapid growth in the mid-2000s, both revenues and consultant numbers surged. However, this growth peaked around 2008, followed by declining numbers and Arbonne’s parent company, Natural Products Group LLC, filing for bankruptcy in 2010.
Currently, banks and private equity firms own the company. Revenue has shown modest growth in recent years, with the company reporting $544 million in 2017 sales. Today, approximately 265,000 independent consultants work with the company—a significant decline from the peak of over one million in 2007.
Arbonne Product Lines
Arbonne specializes in health and beauty products across a broad spectrum. The company’s key selling proposition centers on products formulated without animal ingredients, parabens, and other components considered unsafe by industry standards. Their offerings fall into three primary categories: makeup, skincare, and nutrition.
The makeup line features an extensive array of products, from individual items like lipstick and mascara to comprehensive kits containing multiple products and carrying cases. Their skincare division represents the company’s original product offering and remains among their top sellers. Various skincare regimens are available, including brightening and lifting systems.
The nutrition segment represents the company’s newest venture. Products include protein shake mixes, herbal teas, and energy powders. While customers generally appreciate their products and provide positive reviews, most nutrition offerings carry premium price points compared to competing supplements.
Company Marketing Practices
Arbonne positions itself as a “word of mouth” business. Success demands actively reaching out to schedule appointments and meetings with numerous prospects. New consultants are initially advised to develop a 100 Person list—essentially identifying 100 individuals who might become customers or connect them with potential buyers.
This marketing strategy typically proves unpopular and often results in consultants alienating friends and family members. Success in selling these products requires aggressive sales tactics that most people find off-putting. The company’s consultant recruitment methods also draw criticism, with many believing Arbonne exaggerates earning potential to lure new recruits with unrealistic income expectations.
Making Money with Arbonne
Many question whether the company misleads potential distributors about earning potential. What are the realistic chances of generating substantial income as an Arbonne distributor? The odds are exceptionally low.
Arbonne’s Income Disclosure Statement initially appears misleading. While it suggests the average consultant earns just over $800 annually, these averages only include active consultants. Since just 17% of consultants conducted sufficient business to maintain active status, 83% earned absolutely nothing in 2018. Among their 175,000 US consultants, fewer than one-quarter of one percent earn six-figure incomes annually.
How to Enroll
Like most MLMs, becoming an independent consultant is straightforward. Simply visit the Arbonne website to complete your registration. Initial enrollment costs $79 plus a $30 annual renewal fee. New consultants must also purchase a starter kit at varying price points to begin product demonstrations and acquire initial customers.
Compensation Plan
The basic compensation structure is relatively straightforward. Consultants earn 35% commission on standard retail orders and 15% on Preferred Customer purchases. Complexity increases when factoring in bonuses and downline sales volume.
Based on your current status, you can earn bonuses from downline sales extending up to six levels. The Mercedes-Benz Cash Rewards Program offers cash awards intended for vehicle purchases, though very few consultants achieve this level.
Sales and Marketing Techniques
Maintaining an extensive network of friends and acquaintances provides the easiest entry point into this business. The more people you can engage about the products, the greater your likelihood of generating sales and recruiting additional consultants. A substantial social media following also offers excellent opportunities to introduce products and encourage purchases.
Comparison to Other MLM’s
While Arbonne’s compensation plan resembles other MLMs, profit odds appear below average. With approximately 83% of US consultants earning nothing, success prospects remain quite limited. Products carry premium pricing, though they generally receive favorable reviews.
The company’s diverse product portfolio creates additional sales opportunities. However, Arbonne lacks the brand recognition of larger MLMs, making sales more challenging.
Conclusions For Arbonne
Arbonne operates as a legitimate MLM business with nearly 40 years of history. The company offers multiple health and beauty products that customers generally appreciate. However, earning money with Arbonne presents significant challenges. Extremely few consultants generate any income, even compared to other MLMs. Those seeking full-time income from direct selling should explore alternative opportunities.
