Scam Busting: Another cosmetics MLM

Arbonne International is another skin care and cosmetics multi-level marketing company (MLM). They are nowhere close in size to the big two, Avon and Mary Kay, but they have been experiencing pretty rapid growth in the sales force. In 2005, they had around 350,000 independent consultants.

Like other MLMs, Arbonne has a bona fide product offered, but the “big money” comes via recruiting. However, the money doesn’t seem so big. The average commissions earned by the majority of the sales force are well under $1,000 per quarter per person.

At the very top levels of the sales force, commissions of almost $100,000 per quarter were paid to each person, but there are very, very few who ever reach that level. Company statistics say that only 0.04% (four one-hundredths of one percent) of the sales force is at that level.

The company advertises the products as being “botanically-based.” Arbonne also touts the fact that their products contain no mineral oil. These are used as major selling points, but again, the focus appears to be on recruiting new sales force members and encouraging those members to “invest” heavily in inventory.


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Comments

9 Responses to “Scam Busting: Another cosmetics MLM”
  1. Fog Free says:

    Arbonne is worth your investigation! People are falling victim every day in this rapid growth MLM. People are coming forward online to report that they have contacted Arbonne corporate about serious illegal activities as well as breaches of policies and procedures. These folks have had their contracts with Arbonne terminated while those in violation continue to thrive without so much as a warning from the company. This is a clear case of an MLM refusing to enforce its own policies and procedures. Please help this cause gain more spotlight, as the FTC’s attention to this matter could save countless people from financial and emotional ruin.

    The website to which I am referring is called http://www.arbonneanonymous.typepad.com It is a blog and is such a little disorganized, but if you can get through it, there is a wealth of knowledge in the comments.

  2. Michael A. Sloane says:

    Tracy,

    I too was approached by Laura Cathey to become a sales consultant for Arbonne. I went to three meetings and at the last one, I was informed that I had to sell $100 a month or “buy” $65 of product each and every month. Whoa, I said. Why at the last minute did you lay this on Me? That is just the way it is said Laura Cathey. Just asked my leader Jeanine Cushion, she should know.

    Yeah, Right! Jeanine gets rich 0on my Back!

    No way!

    R bone knee, go take a hike!

  3. Kathy Plouff says:

    I am looking for information about an Arbonne rep that was working at another job and harassed her employees while on the job to sell Arbonne, too. I have heard that the employees won a lawsuit against the rep, but I am running out of ways to google this, since there is so much out there about Arbonne and scams and such. Any help would be greatly appreciated. Thank you.

  4. Tamara says:

    I shouldn’t take the time to respond to these silly accusations, but I will. You should get your facts straight before you post stuff on the web. Arbonne is the MOST ethical, authentic & generous company. There are over a million consultants/wholesale buyers in the US, Canada, Australia & the UK who have signed up JUST to get the discount, but there is a small percent who decide to make this a business. That is why you don’t see a huge % of National Vice Presidents within the company. Everyone has the same opportunity to make it to the top (on the adverage 2 yrs), it’s a JOB, what you put in you will get back. It’s that simple. No one gets paid unless product is sold. And the $100 that Michael S. referred to is only required IF you want to get paid, so this is for business builders. Personally me & my family use more than $100 worth of products every month. You should take the time to investigate network marketing – just like Robert Kiyosaki,Donald Trump (richest man in America), Paul Zane Pilzer and many more have!
    Arbonne’s been around for 28 years and is growing amazingly – because their products work – they do what they say they will. In the past 5 yrs. they’ve had an adverage of 300% growth!
    There you go, I’ve said what I wanted to.
    May God bless America!

  5. Tracy Coenen says:

    Tamara – Please provide proof that these women aren’t pursuing Arbonne as a business and only want the discount.

  6. Tamara says:

    Figures…print what you like!

  7. Tracy Coenen says:

    I would like to print proof of your statement. Do you have any? Surely what you said should be easy to prove. Arbonne must track this and I’m just looking for the document that shows it…

  8. Judith says:

    Hi, Interesting reading – one comment though – by implication Avon is categorised as a scam in the thread above. I have been with Avon over 10 years (in South Africa and now in New Zealand). We sell good products at good prices and do offer the opportunity if a person wants to join to get discount only. Our joining fee is minimal (for over a year now we actually offered free joining in Australia and New Zealand)- we do not encourage front loading and we provide credit to the new representative. We even gift her brochures for her first 2 campaigns plus a starter pack with all that she would need to start a new business. We honour our money back guarantee and we do not bully people. I have seen some negative threads about certain practices in the United States but I can honestly say that here in our corner of the world we provide a good opportunity and our representatives are rather satisfied. Some people decide to quit for various reasons (and of course there will always be people who are negative about one or more aspect) and others stay for years – I know Avon reps. who have been with the company over 30 years in Australia and up to 30 years in NZ. Personally I (and scores of my fellow Avon ladies) would not have categorised Avon as a scam. We make a good living while offering personal care at a price not even available in the supermarket! Unfortunately there will always be bad apples: people who will encourage other people to buy products they cannot afford etc. Shame on the bad apples giving the whole basket a bad name.

  9. Liset says:

    Hi Tracy,

    I’m enjoying reading the articles on your website. I would like to know your opinion on Avon. I have enjoyed using Avon products for 15 years, and I decided that adding a little extra income (not replacing my career at all) while getting discounts for myself instead of buying it from others, and selling a product that I actually enjoy using seem to make sense to me. Please tell me what you think.

    Thank you,
    Liset

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