What Is Arbonne.com and Why They Are Being Sued for Being A Pyramid Scheme.
Thinking about signing up with Arbonne.com but need to know What Is Arbonne.com first, asking is Arbonne a scam or a legit and safe MLM opportunity? Of late, this company that has been running for 35 years and since 1997 online, are being accused for being a Pyramid Scheme. They offer people the opportunity to be a part of their team, upon which, you are now a Consultant. There are several fees to pay and product you must buy, of which you will sell some, but primary profit for Consultants is the money from new sign ups – hence – a pyramid scheme, which of course, is not legal anywhere! SCAM!
I will detail the following:-
- I will show you what they claim to be.
- The difference between their MLM Business Structure and their Actual Pyramid Structure.
- Cursory details on the Lawsuit brought forward by some of their members.
- SCAM RATING:-
- HAVE YOUR SAY!
Now you know it is not an honest online enterprise, but if you would like to find a real and legit online opportunity, then I suggest you read my review into Wealthy Affiliate >HERE<. Or sign up >HERE< for a free account to learn Affiliate Marketing (Phase 1 – 7 Day Premium Trial). Let us continue.
Founder:- Original Founder from 1975 was Petter Mørck.
Chief Executive Officer:- Kay Zanotti.
Founded Online:- 1997. Expiration date:- 19/01/2019.
FEE:- MINIMUM $150! FURTHER UP-SALES WITH HIDDEN COMMISSION QUALIFIER!
SCAM:- ONLY 13% OF CONSULTANTS EARN OK OUT OF 200,000+ MEMBERS – YOU TELL ME.
HQ:- Arbonne International, 9400 Jeronimo Pkwy, Irvine, CA, 92618, USA.
#1 RECOMMENDATION:- Wealthy Affiliate.
What Is Arbonne.com and Accusations of them being a Pyramid Scheme.
The answer to What Is Arbonne.com is two fold! While they specialize in natural botanical cosmetics and natural living products, the financial success rate of their participants is somewhat stunted. They promote themselves as an opportunity to sell on their products, the quality and legitimacy has come under fire online, to earn money and to recruit others. The recruiting of others, as proven elsewhere on line, is the bulk of Consultants profit!
Arbonne’s Chief Executive Officer, Kay Zanotti, opens up with an inspirational promo video piece detailing how amazing their founder is and how wonderful life is being with Arbonne. I only watched a few minutes but it seems you really do have the perfect life being with them…
Let us have a look at how you earn money with them.
OK, when you sign up you have a $150 package you must buy to participate in their program. This will open up 20% SRP (Suggested Retail Price) Discount on products you buy from them to sell on. Another is a 40% SRP package for $250 that comes with a complimentary free shipping product.
After receiving your products you have 45 days for a full refund guarantee. Of course, you must now sell on these products for a profit – so what is the problem I hear you ask ?
Problem is most of these ‘Consultants‘ are only making just over 3K a year after much selling time and buying product from Arbonne. That is not a financially beneficial enterprise when you have to subtract your own start up costs not to mention time spent and real world labor!! Very poor rate of pay for a whole years work 🙂 .
They also have something called “Host Rewards“. You ‘Host’ a night with family and friends and you sell on these products. Per package bought they have discounted SRP’s. Obviously, the more you spend the more you save, and this particular practice gets you free delivery as well. Here is the break down on expenditure and profits for Hosting per their site.
- Spend $150 to earn $250.
- Expenditure of $250 gets $499.
- $500 to net $749.
- $750 – $999.
- $1000 for $1,250+.
As you can see it does get somewhat profitable. However, how many people do you know would sit through such cringe worthy nights in with you to buy make up etc? Hence, we now see how hard it can be, potentially, to sell on such products in this manner.
What about their referral program? Well, I had to go to their Terms and Conditions and find a link there. Should you wish to be an Arbonne Independent Consultant this is where you sign up, as I did not see any obvious mention of this on their website, otherwise.
Of Course, I am not doing that! So, from many legitimate and authoritative reviews online, this appears to be the bulk of the potential profits to earn, telling me, their products are not shifting no where near enough as they mention!!
They claim to be a way to live the life of your dreams by selling on their botanical cosmetic and healthy living products. However, let us now take a look at their ACTUAL Business Model Set Up!
Arbonne’s Pyramid Scheme.
I think it is time we cleared up why they are being accused of being a pyramid scheme! Multi Level Marketing is when one person recruits to make his/her down lines (NEW MEMBERS). These new members recruit other members, thus creating a downward spiraling pyramid shaped recruiting structure. All members signing up to an MLM is signing up for a real product or service in exchange for money. In this respect, they are indeed an MLM, and is legal – no doubt about that.
HOWEVER,! Unfortunately, most of the profits are being made off of new members for Consultants to make up the bulk of their profits, with a lump of it going to the top! Despite having their own products, financially speaking (by making most of the profits) Arbonne is behaving like a classic Pyramid Scheme and this is why they are getting themselves sued by their own members!!
New Members MUST buy the products before they can even attempt to make a profit – where is the guarantee you are going to sell anythings? Better, to sell the product as an Affiliate Marketer FOR them, then to buy product that runs the risk of not shifting quick enough (or at all) for a profit for you. You, as a Consultant, are paying someone else for a job – this is back ward thinking – NEVER PAY ANYONE FOR A JOB THEY OFFER YOU!!
As you can see, there is a slim difference and many company’s use this ‘difference‘ for their own financial advantage.
Any questions regarding this? Please just ask me in the comment section below – Thank you.
The Lawsuit Brought Forward By Their Own Members!
To say the least, this has to be quite embarrassing for a company that has been running for 35 years, to be sued by their own members!
25th of May 2017 Cynthia Dagnall and Michael Dagnall filed a suit against Arbonne on the grounds of them being a Pyramid scheme.
The couple the company is pretending to be a direct seller of health and beauty products. They also claim the vast majority of this company’s revenue stems from their distributors – DEFINITELY A SIGN OF A PYRAMID SCHEME!
From February 2014/2016 Cynthia spend $2500 in fees, plus additional costs on purchases and other costs related to this endeavor. Would you like to know how much this lady made in profits?
Her husband invested $350 and earned nothing!
Thank you to ocregister.com for the above information.
I’d be mad to and I certainly wish them well in this fight.
Of course, the company denies being a pyramid scheme and the battle rages on!
RECAP:- There is a horrible catch I found in my research regarding the company I am writing about. No where, did I see made clear, you must MEET a MONTHLY QUOTIANTE OF 150 QV’S (Quality Volume) BEFORE YOU QUALIFY FOR YOUR OWN COMMISSIONS! LUDACRIS – this means if you make sales and you are a few points off – THE COMPANY KEEPS YOUR MONEY! COMPLETE RIP – OFF!
Soon as you sign up you will then pay a minimum of $150! Already the company has made their money and the rest is up to you if you make a profit. This is paying your employer for a job, as I have already said, is backwards.
The ‘scientific‘ claims made by this company on behalf of their ‘superior’ products has been questioned. Their claims of living a financially successful life are clearly exaggerated. It has been proven very difficult to sell on their product, leaving many of their members, stuck with rooms full of merchandise with little hope of making sales – AND – of course being left out of pocket!
Their MLM is barely legal, however, since they abuse their own members by making most of the profits, they are behaving and thus are an illegal online operation known as a PYRAMID SCHEME!
SCAM RATING:- 5/100! INSTANT PROFIT FOR THE COMPNAY AND INSTANT HEADACHE FOR YOU! COMMISSION RELINQUISHMENT CRITERIA NOT EXPLAINED UPON SIGN UP! EARNINGS DISCLAIMER MAKES FOR SOME INTERESTING READING! ILLEGAL EVERYWHERE! SCAM – STAY CLEAR!
HAVE YOUR SAY!
Everyone is now welcome to express their views and opinions in the comment box provided. Have you had experience as a Consultant with these guys? Where you able to make a rip-roaring success per your time and investment? Perhaps your experience was one of the better ones and wish to express? It would be pointless and lies to say every ones experience was/is bad and so it is only fair to get as many sides of this battle as possible for the sake of the whole truth. Regarding the question of What Is Arbonne.com, I am confident, I have answered it to your full satisfaction and I am looking forward to all of your comments. Any questions regarding this subject matter, or questions on my work from home offer, I would be glad to hear from you to answer such questions. I wish you all well and hope to see you again soon. For now, farewell until next time 🙂 .
Clearly, the above site in question, is not something I can ever promote as legitimate given their members do not get an adequate ROI per time, effort and investment. However, I would remind you of my #1 RECOMMENDATION where you can read more on it >HERE< or click the image below to sign up and have a look around pressure free!
Click Image To Start Today 🙂 !