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Multi-Level Marketing Example: Arbonne

Multi-Level Marketing Example: Arbonne

Multi-level marketing companies, like Arbonne, face a problem in the marketplace. Multi-level marketing has a recognized image problem due to the fact that it is often difficult to distinguish legitimate MLMs from illegal scams. MLM businesses operate within the law in the United States in all 50 states and in more than 100 other countries, and new businesses may use terms like "affiliate marketing" or "home-based business franchising". However, many pyramid schemes try to present themselves as legitimate MLM businesses.


Example of MLM: Arbonne

Arbonne International is an company offering skin care products developed in Switzerland and based on botanical principals.

Some of their products include: body care products, skin care products, aromatherapy, nutrition and weight -loss products. They operate on a network marketing scheme which offers people the opportunity to work through their company, at home. By most accounts, their products are considered to be of a very god quality.

There are positive elements as well as drawbacks to becoming a distributor for Arbonne. Some positives about the company include the fact that they have been an established company since 1980, their products are hypo-allergenic, dermatologist-tested, and not tested on animals.

However, this company is competing against 2 of the biggest cosmetic companies of all time, Avon and Mary Kay. This competition leads to more work on the part of the distributor to incur sales, more door-to-door selling, and more parties to sponsor. A lot of extra money is also necessary for people considering joining the team at Arbonne, to purchase inventory, which is required.

Their products are also high priced; probably OVERpriced, resulting in more effort on the part of the distributor to sell the product.

Even though there are rumors circulating that there is an Arbonne scam, the information available seems to imply that Arbonne does not advocate itself as a 'get rich quick' project.

Arbonne International explains on their web-site that sales depend on certain things, and that many people who get involved prosper, while others don't. They explain that every sales distributor makes different levels of sales, and therefore different figures of income.

However, direct experience with at least some Arbonne representatives, shows a desire to push sign-ups for distributorships, with much less emphasis on making their products marketable.  For example, distributors are prohibited from setting up their own online sales models (websites, EBay,etc.).

It is our opinion that overall, most Arbonne reps, as with ALL MLM's, are doomed to failure. Only a very small percentage are likely to be successful.