Arbonne Int'l. – feedback from victims, 
near victims, and observers

CAI

Consumer Awareness Institute

Non-profit corporation

INTERESTING CORRESPONDENCE ABOUT ARBONNE, INT’L

I would really like some quick help in regard to Arbonne International.  It is flying through my town and everyone is jumping on so they "don't miss the boat."  I have read about the company and all sounds well and good.  I realize it is a MLM comapny and would like to know your sincere thoughts on investing in this.  I hope you can get back to me quickly so I either don't jump in with both feet and sink or so I don't miss the boat!

Thanks you in advance,

Jackie

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Jackie -

Why hurry to get on the Titanic?

 Go to my web site and read the research and consumer guides, etc. --

www.mlm-the truth.com

JMT

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RE: Is Arbonne a legitimate business?

Mr. Taylor      

I have been reading the information on your site and believe my wife and I might have fallen for a scheme. We joined Arbonne last month and, so far, have been "sold" on it. What have you learned about Arboone? So far, my wife and I have invested about $2500 and recruited my aunt to invest $2500 as well. I am afraid we have fallen for the many lies.

It is a great product. However, no-one that I know of is paying retail for it. Instead, everyone is encouraged to become a distributor to take advantage of the 35% discount. Plus, the big push now is to get 3-4 business partners to invest $2500, then to teach them to get 3-4 business partners and on and on. 

Based on the information on your site, I think I know he answer, and do not want to accept it. But, if you know something specific about Arbonne, I would appreciate your feedback.

Thank you,

Fred R -

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from Erica

RE: My experience

Everything on your website has been going through my mind in the past month.  About 2 months ago I started on my "MLM" mission in Arbonne.  I was completley head over heels with the thought of "residual income" just for "sharing" with others how they could make "residual" income.   Now I am just sick about the whole thing, especially because a close friend of mine signed up under me.  Every night I would cry just THINKING about having to go talk to people about the "opportunity".  I was being forced by the whole MLM thinking to talk to friends I haven't been in touch with and pester them or "drip" on them as my upline told me.  I was continually told by my upline that I was feeling down because I was getting out of my "comfort" zone or because it was building my charactor... I was more stressed out then I have been in my whole life!!  I had so much money into it that my husband didn't want me to quit.  We even had to put MORE money into it at the end of the month so we didn't "loose" our qualification quota.  The night I spent another $450 on our credit card to keep our "district qualification"  I broke out in hives, I have never been allergic to anything in my life, I don't think it was a coincidance.  So, after crying every night for a month and being completley sick about life I have decided to stop the madness!  Now I feel like I am FREE!  It's amazing, I can talk to people without feeling the weight of "did you talk to them about ARBONNE??" on my shoulder.   I can't tell you the relief I feel!   I regret that I got my very good friend involved and I am afraid of the rift it may have put in an otherwise great friendship.  I am not sure how I ever got talked into this or how anyone stays in it!  I appreciate your insight and humor...

Thanks,

Fancy Free! 

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RE: Arbonne

Dr. Taylor,

Thank you from the bottom of my heart for the website I stumbled upon!  I am currently being “recruited” by 2 acquaintances to “sell” Arbonne.  My husband knew exactly what it was and told me to stay away!  So, to prove to myself that he was right, I did a search on the internet and thankfully found your website!  You are doing our nation a wonderful and much needed service and I commend and thank you again for it!  I will be sure to pass on the information to other unassuming people so they too will stay away!

 Truly,

Mary L-

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Do you have any information on Arbonne International?

Are they a legitimate company to be involved with?

Robin Fought

robinf1@comcast.net

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Robin –          

Go to www.mlm-thetruth.com and read the reports, such as the “5 Red Flags”.

- Jon M. Taylor, Ph.D., President, Consumer Awareness Institute

and Advisor, Pyramid Scheme Alert

E-mail: jonmtaylor@juno.com

Web site for MLM research and guides – www.mlm-thetruth.com

=======================

            I did.  I was also trashed by my "upline" for asking if there is a possibility of making money after expenses.  Just because you are promoted doesn't mean that you will be making more money.  This company is TROUBLE!  Please investigate it further.

Thanks for your response,

Robin Fought

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(from a confidential informant)

I have been reading the information on your site and believe my wife and I might have fallen for a scheme. We joined Arbonne last month and, so far, have been "sold" on it. I saw that you thought that Avon and Pampered Chef were good. What have you learned about Arboone? So far, my wife and I have invested about $2500 and recruited my aunt to invest $2500 as well. I am afraid we have fallen for the many lies.

It is a great product. However, no-one that I know of is paying retail for it. Instead, everyone is encouraged to become a distributor to take advantage of the 35% discount. Plus, the big push now is to get 3-4 business partners to invest $2500, then to teach them to get 3-4 business partners and on and on. 

Based on the information on your site, I think I know he answer, and do not want to accept it.

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Susan S

question on Arbonne

Hi Jon –

I found your paper on the internet – the five red flags to identifying product based pyramid schemes.  Very informative.  I have some friends who are caught up in the Arbonne scheme.  I was wondering if you’ve looked at this one. 

It definitely meets the five red flags and as you said the compensation structure is the key.  It has the emphasis on recruiting, you have to pay to play in personal retail volume, there are 6 levels of payout, the “promotions” are based on recruiting rather than by appointment. 

The products can supposedly be sold at retail for a higher consultant commission but this is unrealistic because everyone signs up as a non-active consultant for $29 and can order over the internet at “wholesale”.   If you want to be “active” you have to do $100 per month retail volume ($65 with consultant’s discount)  and at  the bottom commission rung of 4% you have to sell to quite a number of customers to recoup your required minimums – so then the emphasis becomes on recruiting.  To jump to the 8% commission level a $1,000 in personal retail investment is involved to qualify within a certain time frame – so they have the opportunity to stick you for this more than once because you buy kits to get started.  They pay on 6 levels – they have a width/depth structure. 

I forwarded my friends your paper and tried to get them to understand that what they are involved in is unethical at a minimum…but they just sent me back the published hype – all the typical things you referred to in your paper.  I think one of these people got in early enough in the scheme that she may be making some money.  These companies seem to prey on housewives who don’t understand the basics of market supply and demand.  They are so naïve that they cannot see the forest for the trees. 

I didn’t see anything about Arbonne in particular when I briefly looked at the pyramid alert .org  website – but I came across your address and thought I’d drop you a note and see what you know about Arbonne and if you can refer me to any sources on this particular company. 

Thank you,

Susan L. S, MBA

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Jon –

Yes, it was an interesting learning experience for me.  I had never been approached by something like this.  I also didn’t remember covering these schemes in any of my course work in my undergrad or MBA marketing classes. 

It was the compensation structure that got me suspicious -  when I realized that these minimum purchases were involved I stared doing a little breakeven analysis and realized how much I’d have to sell at these low commission rates to just make back the money they have you spend as monthly minimums.  It really does not become clear until you start to calculate how many people you have to sell to just to break even!    Then it became clear to me that you had to recruit people to make any money.   I thought this was very fishy – and so I jumped on the internet and found your article…and then it all really clicked in my brain. 

I was reading your article again last night because I found it very interesting.  The part I’m not sure that I fully understood was all the different compensation structures.   Matrix, binary,  etc.  I have never studied these things and I was trying to look at the Arbonne structure and figure out how that one was classified.  They have a width and depth – and they only pay as deep as you are wide – and they pay 6 deep.  However, there was a promotion – where once someone under you reached a certain level of sales – they promote out from underneath you…and supposedly if you are “wide” enough you will still pick up some override on that groups’s sales.   (I was unclear on that point in their compensation structure because the devil was in the definitions of how they compute your overrides)   

So, does that create the pyramid groups you were taking about where there are layers of groups of pyramids?  

Thank you for responding to my email.  I love learning about things like this. 

Susan  

Susan S-, MBA

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            Hi.  I found all of the information on your website very informative.  After many years of being approached about several mlm schemes and refusing to get involved, I fell in love with the Arbonne products and found myself signed on as an 'independant consultant' just to get the discount on the products.  After 6 months, I've just realized that they are charging me sales tax on my shipping charges.  Is this in any way legal?  Have you done any research on this topic and if so, is there any action I can take.  Any information you can provide will be greatly appreciated

Thank you,

Kaci C-

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RE: sales tax on shipping in mlm

Kaci-

Your tax question is interesting.  However, my focus is on analyzing the compensation plans of MLM companies, which wind up enriching a few people at the top at the expense of a multitude of downline victims.  You may wish to raise the issue with company officials, but you should be grateful you did not lose hundreds or even thousands of dollars, as is the case with many people who write me.

Sincere best wishes

Jon M. Taylor

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RE: arbonne pyramid

Hi, thanks for your website.  My Sister-in-law has

been with Arbonne for about 16 months and received a

mercedes (monthly bonus to put towards a lease on a

mercedes)  She says she is making tons of money but

has recently come to my family for financial help.

(They had/have a clothing store that...in my

opinion...has gone downhill since starting Arbonne).

They are over $90,000 in credit card debt.  One

question I have for you is on taxes charged by

Arbonne.  She buys product at a discount price but is

charged tax on the full price.  Is this legal?

Besides that, wouldn't she be considered a re-seller

therefore there should be no tax until she sells the

product to a consumer.  She lives in Wisconsin.

Thanks

Rolf

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Rolf –

<She says she is making tons of money but

has recently come to my family for financial help.>

To be successful in MLM, one must first be deceived, then maintain a high level of self-deception, then go about aggressively deceiving otners.

< She buys product at a discount price but is

charged tax on the full price.  Is this legal?>

Shouldn’t be. You are one of only two correspondents who has smelled a rat in the sales tax problem with MLM’s. Apparently, state tax commissions have accepted this arrangement to guarantee tax receipts, probably offered by MLM promoters to spare recruits from each having to register and pay taxes – though few products are ever sold “at retail.” As such, state tax commissioners are “partners in crime.”

You should bring up the latter issue with the state tax commissioner there. If you do, please tell me what is their response.

- Jon M. Taylor, Ph.D., President, Consumer Awareness Institute

and Advisor, Pyramid Scheme Alert

E-mail: jonmtaylor@juno.com

Web site for MLM research and guides – www.mlm-thetruth.com

  =============================

Hi Jon: Thanks for sending this information. I had actually found your website through Fraud Detection.

My jaw dropped reading the Myths of MLM income. This was very valuable because it cut thru the hype, confusion and deception to show the mathmatical reasons why 99% of recruits are doomed to failure. I was also shocked about the 'transfer of money" from bottom to top. As my mentor told me, and I have internalized "Do the math, and the math will tell you what to do". In this case, the math quite clearly tells the story: don't get victimized by MLM's.

I have already sent several of the reports from your website to a friend who is in Arbonne. I am sending a 2nd set to a co worker whose wife is in Usana. I will continue to share this very well reasearched, well thought out and rational expose to anyone who I think could use the information.

One last question: I am keen to get more educated, as an accounting and finance person, on how to uncover/detect and avoid fraud. Any recomendations on classes, websites or books I could read? In my profession, I know I could do a lot to help my present and future clients avoid being victims if I could get more education in this area, but I don't know where to get started.

Thanks again for all you are doing to educate people and stop this sickening exploitation of those who can least afford it.

Sincerely,

Connie

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SEARCH CHALLENGE: 
There are many blogs and sites giving positive and negative information about Arbonne. Just do a Google search - enter in "Is Arbonne a scam" or "Is Arbonne a pyramid Scheme?" and see what you get. You would be wise to do a lot of reading of the experiences of others - negative as well as positive - before joining their program - or any MLM. And you can do the same for any other "income opportunity" you are wondering about Also, be sure to read the reports linked from our home page, such as "1357 ways to earn a LOT more money than in MLM."

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GENERAL NOTE RE MLM DECEPTIONS:  
These types of deceptions allegedly promulgated by MonaVie promoters are not unique to MonaVie.  A complex set of deceptions is routinely used by MLMs of almost every stripe – with the possible exception of some party plans. This is not necessarily because MLM promoters set out to deliberately deceive those they target for recruitment, but because MLM is inherently flawed and must utilize misrepresentation and deceit to succeed and survive. Please do yourself a favor and read “30 Typical Deceptions” (used in MLM recruitment).

To contact site sponsor Jon Taylor directly, email to - jonmtaylor@juno.com

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