Arbonne Review – An In-Depth Look At This Company Structure

by | Mar 18, 2020 | MLM Reviews, Multi-Level Marketing, Reviews

Arbonne is a multi-level marketing (MLM) business that has been around for quite some time.  It sells a variety of products in the health and beauty space from skincare to makeup to nutrition supplements.  Following what seems to be a recurring theme among MLM’s, Arbonne has been hit with lawsuits and investigations throughout its lifetime.  These relate both to the safety of their products as well as their business structure. Arbonne has survived through it all and continues to produce revenues of over half a billion dollars annually.

Arbonne Company Overview

History of Arbonne

arbonne-logo

Arbonne was founded in 1980 by a Norwegian businessman named Petter Mørck.  Mørck was a veteran of the Norwegian skin care industry, but he began to feel that the products they were selling were potentially harmful to their customers.  He moved to Arbon, Switzerland and began to develop his own line of more natural products. His vision was to include no petroleum or animal-based ingredients in his products.

This led to Mørck founding Arbonne in 1980 in Orem, Utah.  The company moved his headquarters to Irvine, CA just four years later.  Throughout its early years, the company experienced somewhat slow growth and avoided any major scandals during that time.  However, in the early 2000’s, things began to take off, and trouble wasn’t far behind.

Arbonne Company Investigations

Arbonne has seen its fair share of investigations and lawsuits as a result of both its products and its operating practices.  Most of these allegations have come very recently, occurring in 2009 or after. In 2017 a Texas couple filed a lawsuit against Arbonne in Federal court claiming that the company is “a pyramid scheme masquerading as a direct seller of health and beauty products.”  The suit went on to claim that the couple spent nearly $3,000 on products and fees with the company and only received $30 in payments.

Want to Find a Business Opportunity That is BETTER Than an MLM?? Check out our list of the best alternatives to MLM businesses (that can make you more money!) Check out the List
arbonne-lawsuit

The case mentioned above became a class action lawsuit pulling other distributors into the mix who claim to have lost money with the company.  The plaintiffs allege that the company does not make money from selling products but only by scamming distributors out of their money. Allegations in the suit state that the only people making money in this pyramid scheme were the 5 people at the top of the pyramid who were named as defendants.  Ultimately, the case was dismissed in 2018 and the claims against the company were never proven.

In addition to allegations about their business practices, Arbonne has also had some trouble with their actual products.  Since 2009 they have issued at least 6 recalls of their products due to high levels of different types of bacteria found in the product.  In some cases, these recalls were mandated by government regulatory agencies. These issues with their products have left some with a negative impression, but sales do not seem to have been greatly affected.

Arbonne Current Company Structure

The original founder Petter Mørck was actively involved in the company up until his death in 2008.  His son, Stian Mørck is still a part of the company today serving as Brand Ambassador. With the company, and MLM’s in general, growing rapidly in the mid-2000’s revenues and the number of consultants quickly grew.  However, things peaked around 2008. Numbers began to fall, and Arbonne’s parent company Natural Products Group LLC filed for bankruptcy in 2010.

Today the company is owned by a combination of banks and private equity firms.  Revenues have been growing slightly over the past few years, and the company saw revenues of $544 million in 2017.  Today the company has approximately 265,000 independent consultants, which is down from their peak of over 1 million in 2007.

Arbonne Product Lines

Arbonne Review - Products

Arbonne is focused on health and beauty products, but they sell a wide range of items in that space.  One of their big selling points is that their products are made without any animal products, parabens, and other ingredients that are deemed unsafe by many in the industry.  The three main categories of their products are makeup, skincare, and nutrition.

Arbonne has quite an array of makeup products.  They range from individual items like lipstick and mascara to entire kits that include many items and a carrying bag.  Their skincare line is their original product offering and still some of their best sellers. They offer many different skincare regimens such as brightening kits and lifting kits.

arbonne-makeup

The company has recently entered the nutrition arena as well.  They offer products such as protein shake mix, herbal tea, and energy powder.  Overall, customers seem to like their products and have given the products good reviews.  However, most of their nutrition products are expensive compared to other nutrition supplements.

arbonne-tea

Company Marketing Practices

Arbonne is a self-proclaimed “word of mouth” business.  Being successful requires reaching out and booking appointments and meetings with many people.  One of their first steps in getting started is advising their consultants to create a 100 Person list. This is essentially a list of 100 people that you can talk to who may be a potential customer or who may know someone who could be a customer.

This type of marketing approach is generally not very popular and often leads to consultants irritating their friends and family.  Pushy salespeople are usually disliked, and that is what it takes to be successful selling these products. Most people also frown upon the company’s marketing techniques for recruiting new consultants as well.  There is a general feeling that the company overstates potential earnings and tricks people into signing up with false hope of a large income.

Making Money with Arbonne

There are many claims about the company enticing people to sign up as new distributors with false hopes of earning a high income.  But what are the chances that someone will actually make a good income as a distributor? In reality, those chances are extremely slim.

Arbonne’s Income Disclosure Statement is a little bit misleading at first glance.  It appears that the average consultant makes just over $800 per year.  However, their averages are calculated based only on active consultants.  Only 17% of their consultants did enough business to remain in active status, which means that 83% of their consultants earned zero dollars in 2018.  People making over 6 figures annually with the company in the US equate to less than one quarter of one percent of their 175,000 consultants.

How to Enroll

Like most MLM’s, enrollment as an independent consultant is easy.  Just navigate to the Arbonne website and you can sign up from there.  The initial enrollment fee is $79 plus an annual renewal of $30. Upon initial enrollment, you also need to purchase a starter kit which varies in price.  You’ll use your starter kit to begin demonstrating the products and get your first customers.

Compensation Plan

The basics of the compensation plan are pretty simple.  You earn a 35% commission on normal retail orders and a 15% commission on Preferred Customer orders.  Things start to get complicated when you factor in bonuses and sales volume from your downline.

arbonne-compensation plan

Depending on your current status, you can earn bonuses on the sales of your downline up to six levels deep.  You can also earn cash awards through their Mercedes-Benz Cash Rewards Program that are designed to allow you to purchase a new car.  Very few people ever achieve this status.

Sales and Marketing Techniques

Having a large network of friends and acquaintances is one of the easiest ways to get started in this business.  The more people you can talk to about the products, the more likely you are to make sales and sign up other consultants.  A large social media following is also a great way to introduce people to the products and encourage them to buy from you.

Comparison to Other MLM’s

Arbonne’s compensation plan is similar to that of other MLM’s; however, your odds of making a profit seem lower than average.  Given that roughly 83% of their U.S. consultants have zero earnings, your odds of success are quite low. Their products are a bit on the expensive side, although they have generally received good reviews.

The company has a fairly diverse product line which does provide more opportunities for sales.  Generally, Arbonne does not have the same brand recognition that many of the larger MLM’s have, so that tends to make selling a little more difficult.

Conclusions For Arbonne

Arbonne is a legitimate MLM business that has been around for nearly 40 years.  They have multiple products in the health and beauty industry, and their products are generally well liked.  Making money with Arbonne is quite the task, however. Very few consultants make any money, even as compared to other MLM’s.  If your goal is to make a full-time income in this business, you should consider exploring other direct selling opportunities.

Arbonne Review
  • Company Trustworthiness
  • Earning Potential
  • Payout Structure
  • Product Lines
  • Ease & Cost of Becoming a Rep
3.7

Summary

Arbonne is a self-proclaimed “word of mouth” business that has been around the market for 40 years now. Discover if Arbonne has the perfect MLM business structure for you by reading our review.

<span style="font-size:12px;font-weight:500">Author</span><br><a href="https://wealthpursuits.com/author/kevin/" target="_self">Kevin</a>

Author
Kevin

Kevin is an ambitious entrepreneur that is obsessed with all things related to finance. From a young age, Kevin has always been involved with side hustles ranging from online selling to freelance work. Over the years, Kevin graduated from side hustles and started launching multiple online and offline businesses. Kevin is a serial entrepreneur who loves starting new businesses and exploring all things related to business and finance. He is constantly looking for new ways to save money, invest money, and create income streams.

Related Content:

Magic Ears Review – Should You Teach English Online?

Magic Ears Review – Should You Teach English Online?

If you’re an online teacher or looking to become one, you’ve probably spent a significant amount of time looking for the best site to focus your efforts. However, one of the best platforms out there today is one you may not have heard of. A fun and interactive live...

PocketGuard Review – Can This App Really Help With Your Budgeting?

PocketGuard Review – Can This App Really Help With Your Budgeting?

Managing personal finance is a necessary part of financial health, especially with the million and one reasons we have to spend money these days. PocketGuard is a budgeting app owned by Igor Kuznetsov that has gained a lot of attention in recent times due to its many...

Earny Review – Is This Cashback Browser Extension Legit?

Earny Review – Is This Cashback Browser Extension Legit?

Everyone loves shopping online. It's not only convenient but gives you many more options and tons of opportunities to save some cash. But sometimes, this last feature can feel like less of a blessing and more of a curse. We all know that somewhere online, there's...

Fiverr Review – Is It The Right Choice For A Freelancing Career?

Fiverr Review – Is It The Right Choice For A Freelancing Career?

Fiverr was founded in 2010 by Micha Kaufman and Shai Wininger and has exploded in popularity since. It is well-known not only in its home country of Israel, but also in the United States and around the world. The original product of Fiverr offered basic services for...

Banktivity Review – Does It Have Better Budgeting For Mac Users?

Banktivity Review – Does It Have Better Budgeting For Mac Users?

Since the explosion of the iPhone, macOS users aren’t as rare as in the past. While exact numbers vary, a few years back, Apple revealed that there were 100+ million active macOS fans using various versions of the operating system (and that’s in addition to the...

Snagajob Review – Is It The Right Choice For Finding A Job?

Snagajob Review – Is It The Right Choice For Finding A Job?

Snagajob is promoted as “America’s #1 hourly work marketplace” and has become an increasingly popular way to find and apply for hourly jobs and shift work. Launched in the year 2000 by founder Shawn Boyer, Snagajob connects more than 700,000 employer locations with...

Shopkick Review – Can You Earn As You Shop?

Shopkick Review – Can You Earn As You Shop?

These days, it seems like you can earn cash by doing just about everything or absolutely nothing. In the past couple of months, we've looked at all the different ways to make money by taking surveys and even playing video games.  How about getting paid to spend...