Arbonne claims success as a beauty and wellness company with $600 million revenue in 2016, but its consultants face a harsh reality. Recent data shows that among 21,000 UK consultants, only 2,600 earned any money while 88% earned nothing.
My experience as a former Arbonne consultant gave me direct exposure to this multi-level marketing company's operations. The Federal Trade Commission's data reveals that 99% of people lose money in MLMs.
Arbonne's track record raises red flags about its business practices. This complete investigation combines my personal story with detailed facts about their business model, recruitment methods, and empty promises of financial independence.
My Journey Into Arbonne's Business Model
An old friend who became my sponsor introduced me to Arbonne through a perfectly timed message. The promise of flexible hours and knowing how to run a business from my phone caught my attention.
How I Got Recruited
A casual chat about product discounts kicked off my recruitment journey. My sponsor highlighted the freedom to work anywhere with my own schedule. She then connected me with her upline who welcomed me warmly and showed real interest in helping me succeed.
Initial Investment Costs
The first year started with a registration fee of $99. This covered:
Welcome Kit with product catalogs
Personal e-commerce website
Digital marketing tools
Access to online training resources
Mobile app access
All the same, the actual costs went beyond the original registration. My upline suggested buying about $2,200 worth of products as a "starter package". To qualify as a District Manager, I needed $1,000 in personal qualifying volume, plus $150 monthly after that.
The Training Process
The detailed training helped new consultants launch their business right away. Here's what I received:
"The Source" came first - an online platform packed with hundreds of training documents, from social media templates to presentation guides. On top of that, I joined weekly team Zoom calls that covered different aspects of business growth.
My sponsor's support plan included one-on-one calls, email guidance series, and weekly online training sessions. The Arbonne mobile app let me run my business operations from anywhere.
Product knowledge and sales techniques formed the core of our training.
We learned to customize our website profiles and employ digital tools to manage clients. The training also covered hosting product presentations and setting up the "autoship" program for recurring customer orders.
Understanding Arbonne's Payment Structure
Arbonne's compensation structure works through their "SuccessPlan," which has four main ways to earn money. My experience as a consultant showed that the simple commission structure wasn't as clear as it seemed at first.
Commission Breakdown
The compensation plan begins with retail profits. Consultants get a 35% discount on products they can resell. You can earn a 15% commission from preferred client orders.
After reaching 500 Personal Qualifying Volume (PQV), you earn an additional 6% override on sales volume from consultants you recruit.
The payment hierarchy has sections for:
District Manager level: 8% override on Central District Override Volume
Area Manager position: Additional 6% override on Central Area
Regional Vice President: Extra 3% override on Central Region
National Vice President: Further 1% override on Central Nation
Hidden Fees and Expenses
Looking beyond potential earnings, I found that there was a lot of hidden costs. Consultants need to maintain 150 PQV monthly to qualify for commissions. Many consultants end up buying products themselves to meet these requirements.
The earnings reality paints a different picture. Arbonne's income disclosure shows that a typical consultant in Canada earned between $0-$250 in commission and overrides. The top 50 consultants averaged only $2,600 annually, despite company claims about generous compensation.
Financial obligations go beyond simple fees. Former consultants say they spent about $10,000 on products, samples, business materials, and travel expenses. These costs break down to roughly $1,500 for samples and business materials, $3,500 for conference attendance, and $700 for hotel accommodations.
We noticed that consultants must maintain specific sales volumes to keep their ranks. District Managers need 2,500 QV monthly, Area Managers require 10,000 QV, and Regional Vice Presidents must maintain 40,000 QV. Personal purchases often become necessary when sales targets aren't met.
The Mercedes-Benz program, a heavily promoted benefit, carries its own financial risks. Vice Presidents get between $200 to $1,000 monthly toward their white Mercedes-Benz lease but must keep high sales volumes to qualify. Sales volume drops leave consultants responsible for the full car payment.
The Truth About Arbonne's Recruitment Tactics
A carefully coordinated recruitment system operates behind Arbonne's polished exterior. My experience as a consultant revealed the complex web of tactics they use to draw people in. Many people ask the same question: is Arbonne a pyramid scheme?
Scripts and Messaging Templates
Consultants get detailed scripts to guide every interaction. These scripts cover everything from the original contact to handling objections. We used the "FORM" technique (Family, Occupation, Recreation, Motivation) to build trust before presenting the business.
Recruitment begins with a "training request" or a "direct three-point ask". Leaders tell consultants to avoid any mention of Arbonne at first. Instead, they should use phrases like "I have something that might be a perfect fit for you" or "I'd love to share what I'm doing".
Social Media Manipulation
Arbonne's social media strategy relies on calculated deception. Leaders tell consultants not to mention Arbonne in their posts. They must create "curiosity gaps" through lifestyle content without revealing the company name. This forces interested people to ask privately.
The manipulation shows up in lifestyle portrayal. Consultants learn to:
Post pictures of luxury items and experiences, even during financial struggles
Share photos of children with captions about "working from home"
Create an illusion of success to attract potential recruits
Pressure Techniques
The pressure tactics used show psychological sophistication. Uplines make consultants list everyone they know and "profile" them. They identify aspirations and weaknesses to exploit during recruitment. This information helps tailor pitches that target people's vulnerabilities.
Without doubt, the isolation technique raises serious concerns.
Consultants receive encouragement to distance themselves from anyone who questions the business model. The system labels doubters as "negative" or "unsupportive." This creates dependency on the Arbonne community.
Daily 6:40 AM motivational calls and constant pressure to attend events increase the manipulation. Leaders tell struggling consultants "you get out of it what you put into it" - placing all blame on their shoulders.
Legal Analysis: Is Arbonne a Pyramid Scheme?
The FTC's stance on multi-level marketing companies gave an explanation about Arbonne's legal status. We analyzed pyramid schemes as businesses where people pay money to earn rewards that have nothing to do with selling products to real customers.
FTC Guidelines
The FTC looks at several factors to determine if an MLM runs like a pyramid scheme. They evaluate marketing claims, how participants fare, compensation plans, and reward structures. A company becomes a pyramid scheme when recruiting turns into the main goal, which leads to "insufficient sales for the insupportably large number of distributors".
The FTC sent Arbonne a direct warning in April 2020 about misleading claims regarding income potential and coronavirus treatment abilities. Their investigation revealed that:
Members buy products just to stay eligible for rewards
The pay structure rewards recruiting more than actual sales
Most consultants lose substantial amounts of money
Court Cases and Settlements
Arbonne has faced several legal challenges about its business practices over the years. Cynthia and Michael Dagnall filed a lawsuit in 2017 claiming Arbonne ran an illegal pyramid scheme. They spent $2,840 but earned only $30 back.
A Texas couple's lawsuit stated that Arbonne's $541 million revenue in 2016 came mostly from "bilking its hundreds of thousands of distributors". The legal documents showed consultants must:
Buy starter packages
Pay yearly fees
Keep large product stocks
Arbonne settled these cases, but the claims match the FTC's warning signs of pyramid schemes. Yes, it is worth noting that Jon M Taylor's research for the FTC concluded that after looking at MLMs' numbers, it might be "more appropriate to refer to virtually any MLM as a scam".
The Consumer Awareness Institute's research backs this viewpoint, showing that 99% of MLM participants end up losing money. California Penal Code 327 states that endless chain schemes become illegal when members pay for the chance to earn money mostly through recruitment.
Arbonne operates legally today, but their practices keep drawing regulatory attention.
The FTC's constant monitoring and multiple legal settlements show how complex it is to determine whether Arbonne crosses the line between legitimate MLM and pyramid scheme.
Real Income Data from Ex-Consultants
Raw numbers tell a troubling story about Arbonne's business model. A full picture of income disclosure statements and consultant experiences shows concerning financial outcomes for participants.
Average Earnings vs. Expenses
The financial reality of Arbonne consultants is different from what recruiters promise. UK data shows that among 21,000 Independent Consultants, 88% (18,400 people) earned nothing. The earnings breakdown for others reveals:
7% earned £42 monthly (£503 annually)
3.7% earned £167 monthly (£2,004 annually)
0.9% earned £909 monthly (£10,908 annually)
0.3% earned £3,445 monthly (£41,340 annually)
We noticed these figures don't include business expenses. An ex-consultant's report shows spending around £800 in four months on products, samples, and marketing materials. New consultants face pressure to keep large inventory levels and buy products for demonstrations.
Success Rate Statistics
US success rates follow this same worrying pattern. Among 174,385 Arbonne Consultants:
83% (144,586 people) earned nothing
11.4% earned USD 70 monthly
4.1% earned USD 321 monthly
1% earned USD 1,531 monthly
The situation got worse by 2021. A typical US Arbonne consultant earned just USD 250 yearly in commissions and overrides. This means about USD 20.84 monthly before expenses.
Debt Accumulation Patterns
Ex-consultants report troubling debt patterns. One former Area Manager lost their position despite USD 40,000 in monthly sales volume. They stressed that success needs "3-4 direct downlines working simultaneously". Rank maintenance drains finances otherwise.
Consultants face heavy financial strain to keep their status. They must:
Buy products to meet monthly quotas
Pay for business materials and marketing
Cover travel costs for conferences
Purchase samples for potential customers
Previously successful consultants worked 12-hour days but earned back only a quarter of their original investment through retail sales. Consultants must maintain specific sales volumes for their ranks. District Managers need 2,500 QV monthly, while Area Managers require 10,000 QV.
The debt cycle grows as consultants chase higher ranks. One consultant spent much money on products, samples, business aids, networking events, and transportation costs but earned nothing. Another worked full-time for two months and ended up with substantial debt from product purchases and marketing materials.
Conclusion
My time as an Arbonne consultant gave me a full picture of their business practices, and what I found was deeply concerning. Arbonne sells itself as a legitimate chance to make money, but the numbers paint a grim picture - 88% of consultants make absolutely nothing while they face major financial risks and high-pressure sales tactics.
Everything I experienced matches the hard facts shown in income reports and legal documents. Arbonne stays just within legal limits, but their business model raises serious red flags that match many of the FTC's warning signs about pyramid schemes.
The simple truth hits hard: consultants lose money through required purchases, sneaky fees, and endless expenses. Instead of delivering financial freedom, Arbonne's system works great for a tiny group at the top while thousands of consultants end up in debt and crushed dreams.
Anyone thinking about joining an MLM should really get into the company's income reports and talk to people who've left. Those promises of quick cash through a social-first strategy and recruiting rarely match what consultants actually experience financially.
FAQs
Q1. Is Arbonne a legitimate business opportunity?
While Arbonne operates legally, it's considered a multi-level marketing (MLM) company. The business model relies heavily on recruitment, and the vast majority of consultants make little to no money. Only a tiny percentage at the top levels earn significant income.
Q2. How much do typical Arbonne consultants earn?
According to Arbonne's own income disclosure statements, the earnings for most consultants are very low. In the UK, 88% of consultants earned nothing, while only 0.3% earned around £41,340 annually. The average annual earnings for a typical consultant in the US was just $250 before expenses.
Q3. Are Arbonne products worth the price?
Arbonne products are generally considered overpriced for their quality. The high costs are partly due to the MLM structure, which requires paying commissions to multiple levels of consultants. Comparable or better products can often be found at lower prices from non-MLM brands.
Q4. What are the hidden costs of being an Arbonne consultant?
Beyond the initial registration fee, consultants often face pressure to purchase inventory, samples, and marketing materials. Many report spending thousands on products, conference attendance, and travel. There are also monthly sales quotas to maintain ranks and qualify for commissions.
Q5. How does Arbonne's Mercedes-Benz program really work?
The Mercedes-Benz program is often misrepresented. Qualifying consultants receive a monthly cash bonus toward leasing a white Mercedes-Benz. However, they must maintain high sales volumes to keep receiving the bonus. If sales drop, consultants are still responsible for the full lease payment.