MLM Blog – Network Marketing Blog

Arbonne has launched 5 new products and the feedback I seem to be getting is mixed.  What do you think about the new product lines?

Press Release:

Arbonne International, LLC (Arbonne) today introduced five new products to its growing line of personal care and wellness products. Inspired by nature, botanically-based and vegan-certified, the new Arbonne® products preserve and enhance the skin, body and mind for a comprehensive approach to beauty. Arbonne’s latest products include a new anti-aging ultra-hydrating day crème, fruit and chocolate nutrition bars, an Omega-3 vegan supplement, energy promoting fizz sticks and a limited-edition rainforest inspired eye shadow palette set. The products, which were announced today at Arbonne’s premier Global Training Conference, are available at arbonne.com or through an extensive network of Arbonne Independent Consultants.

“Arbonne is committed to continuing our long-standing tradition of bringing to market incredible, effective and earth friendly solutions. We never compromise our principle of developing pure, safe and beneficial products and our product line incorporates more earth friendly packaging, resulting in a 50% material source reduction,” said Arbonne CEO Kay Napier. “Each of these new products adheres to our incredibly high safety standards, is inspired by nature while also integrating the latest in scientific innovation, and demonstrates exceptional performance. I am proud to welcome these five products that support daily needs … anti-aging skin care with SPF, an Omega-3 supplement, nutrition bars, energy fizz sticks and color cosmetics.”

Each new Arbonne® product is vegan-certified and formulated without animal products, animal by-products, gluten, parabens, formaldehyde-donating preservatives, PABA and the following petroleum-based ingredients: Benzene, Mineral Oil, Petrolatum, Phthalates and Toluene. Arbonne is cruelty free and does not test any product on animals.

Key Product Highlights:

The Arbonne® RE9 Advanced® Extra Moisture Restorative Day Crème Broad Spectrum SPF 20 Sunscreen is compliant with Broad Spectrum Testing, and contains both UVA and UVB sun protection.

The Arbonne Essentials® Nutrition Bars are made with pea and rice protein, which is more digestible than soy or whey.

The Arbonne Essentials® Omega-3 Plus supplement is completely vegan, using vegetarian DHA derived from algae.

The Arbonne Essentials® Energy Fizz Sticks not only provide a boost, but are also filled with antioxidants.

Developed in collaboration with a certified makeup artist, the Arbonne® Cosmetics Treasure of the Rainforest Cosmetic Set includes a tutorial featuring six different looks. 

Arbonne has not only fired all of it's Canadian Regional and District Sales Mangers but it seems that the company also thinks you are a stupid idiot.

I can not possibly think of another explanation when I read the email blast that was sent to me by an Arbonne associate.

Just take a moment and read the following quotes from the email and make your own judgement:

We would like to take this opportunity to let you know that effective yesterday, March 7, 2012, a business decision was made to eliminate the Arbonne Regional and District Sales Manager positions in Canada. 

OK, it was a business decision, but don't business decisions typically have to do with how your business is doing, right?  I mean if you are firing a bunch of regional and district sales managers in a particular location, you might suspect that business is not so hot in that location. 

However, Arbonne wants you to believe that everything is great.

Here's more from the email:

Please understand that this was strictly a business decision and has no bearing on the future of Arbonne Canada. Arbonne Canada's future has never looked better and we know 2012 will be our best year yet!

Wow.  If this wasn't so sad, it would be hilarious.  Who in the world writes this crap?

Let me see if I have this straight...

Arbonne is firing all of it's Canadian Regional and District Sales Managers and it's a business decision but the business decision has no bearing on the future of Arbonne Canada.

Even though the company just eliminated a bunch of jobs that support Arbonne reps in Canada, the future has never looked better and they expect 2012 to be their best year ever!

Kind of like: "Hey we just went bankrupt and because of that great news, we are going to do $2 Billion in sales in 2012".  Sources tell me that Arbonne actual sales in 2011 were under $350 million. Pretty hard to get from $350 million to $2 Billion when you are laying off sales support staff, don't you think?

OK, Arbonne didn't actually make me break out, but there are a lot of people over at (forgive me in advance)...PissedConsumer.com that are (well) "pissed" with Arbonne.

I have heard from several (mostly former) Arbonne reps that the quality of the products has taken a nosedive and I was skeptical but this looks like the problem might be worse that I thought.

Here are some examples from the site (these are all from the last couple of weeks):

"CLEAR ADVANTAGE FAILURE"

I started using the Clear Advantage line of Arbonne. I had a few spots of acne that I wanted to get rid of and smooth my skin out. I started using their products and my skin started to itch a bit, just a small uncomfortable one. I slowed down the applications to every second day and my skin started to peel, the redness of my acne increased severely and it has actually expanded to my whole jaw line and neck.

I am quite unsatisfied with this product, I was expecting much more from this company.

As a student I took a risk paying for a quality product which has given me much disappointment.

Here is another:

"Major Breakout"

I went to a party and used several products during the demonstration. Because of the price of the merchandise, I ordered just the facial cleanser and face cream. The next day my face was on fire! It took several days to eliminate the redness and dry skin. I thought maybe since I had added some daily vitamins to my routine at the same time, that they make have reacted. I eliminated the supplements and when my order arrived, I used the products ONCE. My face looks like I have a sunburn! I hope my experience in returning the merchandise is better than others have posted.

And another:

"Arbonne Sucks!"

I hosted a party for Arbonne in my home...everyone LOVED the stuff so I TOO wanted to try it out. I used it all over my face, hands, feet etc at the party, I now, am broken out, HUGE pimples everywhere on my face and chest and it SUCKS. I NEVER break out, ever. and the sales lady said OH NO WORRIES nobody is allergic to our stuff, bullshit. why am I broken out everywhere??? I just do not understand why it happened, two other grls at my show who used it also broke out and are having the same pimple problem. never using this crap again.

MLM - Network Marketing Industry News and Links

Direct Selling News has a rundown of public MLM companies including Blyth Inc. (Visalus), Lifevantage, Forever Green and Primerica.

In the "slightly dated, yet good to know file", Direct Selling 411 talks about the Direct Selling Association on the Today Show and the $16.5 donation of products that companies donated this year.

Trouble at Max International? Business For Home talks about cash problems at Max International and Evolv welcomes former Max top leader Rick Teague. Teague joins former Max master distributor, Ken Dunn at Evolv.

See Troy Dooley's weekly Network Marketing industry update here. Topics include 21Ten, Youngevity and a Gano Excel downline for sale.

Personal Development - Building A Better You

Jennifer Fong offers 6 Media Trends for Direct Sellers.

Learn what a 14 year daughter and really expensive (yet surprisingly ineffective) pillows have to do with a real and simple formula for success in your business, from the Ty Tribble Blog.

The MLM Rumor Mill

There are a lot of rumors swirling around Arbonne right now, including this one about Proctor & Gamble buying the Arbonne and putting the product line in Target stores.

The Ty Tribble Take (Commentary)

I'm just going to say that I am not really surprised that there is chaos going on at Max International and I'll leave it at that. ; ) Let me know what you think about our new style of blog post.

By the way, how about liking MLMBlog on Facebook? 

We already know that Arbonne products are all over eBay, but is it possible that we will see Arbonne products on Target store shelves soon?

I wouldn't put this in the done deal file or even the rumor file at this point, but there is some interesting information available online that has our readers talking.

Not long ago, a reader posted a link to something called the "Target Sustainability Study". The study talks about Proctor and Gamble's product line as it relates to the Target stores.  Keep Proctor and Gamble in mind, because we will come back to them in a second.

The study turns interesting (on page 7) when Arbonne is listed as one of the "...new organic brands may be introduced. These brands include: Alba, Arbonne, Aubrey Organics...".

Now, it doesn't appear that this is an internal document from Target, P & G or Arbonne, it's just a study, right?

Right.  But does anyone remember where current Arbonne CEO, Kay Napier worked prior to her experience at McDonalds?

From the Arbonne web site:

Kay is a retired Vice President of the Procter & Gamble Company, where she was head of the North American Pharmaceutical division and the Corporate Women’s Health & Vitality platform. During her tenure, her division became the largest company profit contributor for North America.

Not a smoking gun, that's for sure, but what do you think?

is it possible that we will see Arbonne products in Target soon?

We first reported about the possibility of Rita Davenport leaving Arbonne in February of 2010, shortly after the Arbonne Bankruptcy. We reported the Arbonne bankruptcy rumors about three months before it was announced and over 500 people commented at the time, if you have time, the comments are an interesting read with some insite into whether or not Rita was forced out or truly retired.

Here is a letter that was sent out to Arbonne VP's about the "retirement" of Rita Davenport:

It is with bittersweet emotion that we share with you recent developments at Arbonne. We are gratified to report that the company has achieved great progress and accomplished so much in just one year following its financial restructuring. Despite an uncertain economy, the Company is at an inflection point of substantial, sustainable growth and has been growing on a year-to-year basis for the past 12 months. This is a major accomplishment, for which each of you should be extremely proud. Our recent success has truly been a team effort, reflecting your hard work and that of our new executive leadership.

At the same time, after 20 years as a dedicated member of the Arbonne team, Rita Davenport has decided to retire. We tried to persuade her to stay, and in fact we offered her many meaningful opportunities with significant compensation that would have allowed her to remain a vital part of Arbonne field development. We respect Rita’s decision at this point in her career to retire from Arbonne, take on new challenges, and we wish her all the best in her future endeavors.

Rita has touched and inspired so many. She has been instrumental in helping many of you achieve success at Arbonne and she has been an important part of making Arbonne what it is today. We greatly appreciate Rita’s hard work, passion and leadership over so many years.

We know you feel the same way. It is clear that you appreciate Rita and all that she has done for Arbonne and for many of you individually. We also understand that change creates challenges and uncertainty. However, it is important to realize that truly great organizations such as Arbonne owe their success to many factors, the most important of which are the drive, passion, vision and leadership that each of you brings to the company, your fellow Independent Consultants and to life in general.

Arbonne has made tremendous progress over the past twelve months, much greater than anyone could have imagined. The Company is in its strongest financial position in years, with healthy free cash flow and modest leverage. This will mean more income for Independent Consultants who are actively growing their business. New executives, with proven leadership and business experience, have been recruited, each of them believing in the power of Arbonne and the outstanding track record of the Independent Consultant organization. Significant investments are being made in business-building initiatives, product development, technology/systems, logistics and financial controls, all with a view toward supporting you and helping you grow your business.

Kay and her management team work tirelessly with that as their primary goal. Of course, there is still work to do and it is impossible to please everyone all of the time, but we believe these initiatives are beginning to show results and we have expectations for even greater success and accomplishments over the coming months and years.

This was not always the case. It is important to realize that in the past this Company’s growth was driven by unsustainable initiatives, and was not supported by the necessary infrastructure, systems and people with the experience to manage and sustain that growth. Furthermore, the excessive debt incurred by prior owners and management, coupled with the worst economic downturn in most all of our lives, created substantial barriers for this Company to overcome. Arbonne has made tremendous progress, in less than two years, toward overcoming these barriers and positioning itself for accelerated and sustainable growth.

We are aligned with and support Kay and her management team’s efforts in leading this business, but even more so we applaud, acknowledge and greatly appreciate the continued hard work, dedication, commitment and leadership of the field. We know – as does Kay and the management team – that you, the Independent Consultants, are the lifeblood of this Company and that sustaining, supporting and growing your businesses underlie all decisions. The ultimate goal of the management team is to make each of you more successful, which will then lead to success for the Company.

Thank you for all that you have done, and for all that you will do in the future, to make Arbonne a success. It will take all of us, working together, to achieve our goals. Truly great organizations, in general, and Arbonne in particular, achieve their greatness because many talented individuals are focused on contributing toward common objectives. As we all heard at GTC this year, “we are better together.”

Sincerely,

Members of the Board of Directors Arbonne/Natural Products Group
 

Arbonne has emerged from Chapter 11 Bankrupcy...

Under the deal, lenders owed about $530 million took control of 85 percent of the stock in the reorganized company.

The case is In re Natural Products Group LLC, U.S. Bankruptcy Court, District of Delaware, No. 10-10239.

For a couple of days, I actually believed the information coming out of the Arbonne camp surrounding the ethics of asking an Arbonne consultant the following question:

"Are you keeping your options open outside of Arbonne right now?"

Arbonne VP's and Kay Napier would have you believe that question is a violation of Direct Selling Code Of Ethics (although Kay is smart enough not to mention the DSA in her letter).  But the truth is, there is no violation of the code in that question whatsoever. 

There is an additional "guideline" in a letter from the DSA President that states the following:

Occasionally, direct sellers in the field will be approached by other companies or their sales leaders with solicitations to join those companies. Sometimes, these solicitors present misinformation and denigrate the company you are with. Those solicitations can be inappropriate, unethical, misrepresentative, or even illegal and may be at odds with the Proselyting Guidelines of the Direct Selling Association (DSA). Under those guidelines, it is considered unethical behavior throughout the industry for one company to target the salesforce of another company in an attempt to lure salespeople into their own organization and stop selling for their original company.

Note that the basics of this guideline (not part of the actual code) surround the concept of "misinformation".  In other words, when someone is lying to you in order to recruit you to another business. It has nothing to do with the ethics of simply contacting someone involved in Arbonne.

A friend of mine asked a very interesting question.  Let us know what you think.

"Would it be ethical for the captain and crew of a ship that is going down to hide the lifeboats from the passengers?"

Update: Rita Davenport Fired or Retired?

We posted about Arbonne's Bankruptcy back in October, a full three months before it was announced.  I have found over the years that search traffic and comments can be pretty darn accurate and we have had both pertaining to the status of Rita Davenport at Arbonne.  Over the last couple of weeks I have heard rumblings about Rita Davenport leaving (being fired, etc) Arbonne.  The rumblings come from multiple sources on and offline.

I had one ENVP tell me that it was not true, but I also had VP's tell me that the Bankruptcy rumors were not true as well.

At this point we have nothing concrete and since my calls to Arbonne in the past have not been returned, I thought I would open up the topic for discussion here...

Here us what Arbonne consultants are supposed so say about the bankruptcy. What do you think about this?

What should I say to my SuccessLine, downline, Clients, friends and family about the debt reduction plan?

We are conducting business as usual at Arbonne. The company has taken action to reduce its debt obligations by over 80 percent and enhance its future financial performance. Arbonne’s Independent Consultants can be confident that compensation from commissions and overrides is secure, along with all the amazing trips, incentives, training and product launches planned for the future.

Our future has never been brighter. You should be confident in communicating the Arbonne opportunity to new and prospective Independent Consultants and selling Arbonne’s amazing products to Clients with the same unwavering passion.

Isn't the whole "our future has never been brighter" a little ridiculous?  I'm trying not to nit-pick here, but Arbonne's sales have dropped by nearly 50% in the last 2 years and they are now bankrupt.  I'm thinking that 2004 would have been a little better time to be involved with Arbonne.