I got permission from a new and obviously smart and eloquent Arbonne consultant to post her comments about the bankruptcy and about what she was told leading up to her signing up. You won’t find her comments on the Arbonne blog. In fact, you won’t find anything but "we love you arbonne" on the Arbonne blog. You can bet your britches that the Arbonne blog moderator is deleting this these types of comments.
Meet Kathy:
I will say this as a small-time "Consulant:" I signed up last July after months of pressure from a family friend who appeared to be doing well. Also on her team was another family friend who was doing well. I did quite a bit of research online, the business seemed legitimate, so I signed up at the $109 consultant level and did the next month buy an RSVP package ($700 of product for $350) to try the products and have products to demo.
Overwhelmingly, everyone I have shared the products with likes them. The products do work. I like them. I sold a reasonable amount. Do I think they are worth their inflated price? No. I think they are worth the price after the 35% discount, but as a consultant, if you give everyone your discount, then you are not making any money.
Before joining, I was told that Arbonne is debt-free. I was told that I should buy multiple kits to demo (I didn’t). I was told that my DM was one month away from qualifying for her Mercedes (she wasn’t). I was told that NO Arbonne products contain mineral oil (not true) and other ingredients like parabens (not true). I was told they were organic (not so), vegan (debatable), and gluten-free (debatable).
Prior to joining, I WASN’T told that Consultants have to bring 2 Preferred Clients or Consultants into the program every quarter or they lose the 35% discount. I wasn’t told of (what I consider to be) Arbonne’s abusive shipping costs (based on retail price, not box weight). I wasn’t told that Arbonne would collect the retail price sales tax of every product instead of the discounted price, and collect even on "free" or "campaign bonus" products. I wasn’t told that to sign anyone up even only as a Preferred Client, I would need their Social Security Number.
I found your blog in October after a frustrating 3 months in the business. I did sign up enough clients in my first quarter to remain active but after I found your blog I abandoned that idea and quit working Arbonne altogether. I have been patiently watching since for a bankruptcy filing and now here it is. Even up until yesterday, I still received emails from my DM to seek out new clients and consultants and push sales to "help Arbonne through this crisis, it’s what’s best for ALL OF US…."
I realize that higher-ups that are still clinging to Arbonne will chime in and say that it was my DM that wasn’t honest or didn’t give me enough information and that what she did shouldn’t reflect badly on the company, but in MLM the reps ARE THE COMPANY and this is what they are all doing. Arbonne wants sales, what their independent managers are doing produces sales (even if only to each other or to new "Business Builders"), and the company has done nothing to protect or educate the individual Consultant. In fact, prior to joining it is impossible to obtain any substantive information on the business EXCEPT FROM the person sponsoring you and in the interests of sales I believe the company simply turns a blind eye to all of these shady tactics; that Arbonne believes all sales are good sales, all sign-ups are good sign-ups regardless of what representations were made to get them.
I still have not received any email from my DM or Arbonne regarding their Chapter 11 filing and I don’t expect to until they are forced to mail it. In fact I emailed my DM this morning about the Chapter 11 news and she sent me an angry reply denying it and I had to direct her to the Arbonne website where the news is right there, plain to see. If I were not educated, I would still not know about it and could theoretically still be trying to sign up people into my downline. I could be embarrassed by referring people to the website to buy items only to be greeted by the "Financial Restructuring" news.
I have a bad taste for this company now and that is not going to go away. Good thing my investment was minimal enough for me to chalk it up to a semi-expensive lesson in high-end skin care.
I’m disgusted with the way this was handled. Bad Arbonne!
Wow what a great message from the heart. Its a shame what happened but its nice to know that some of the reps are sticking together and posting the truth.
Thanks for sharing this information and posting it to your blog.
At least you only had $29 invested. My friend’s salon just closed. she lost $100000 of her investment
That is the beauty of an MLM, there is little risk! What do you have to lose? I love Arbonne and will continue to stand by this company that has allowed me to be able to stay home with my children AND pay my bills for the last 5 year!
Just a note on some of the comments by Kathy –
“Prior to joining, I WASN’T told that Consultants have to bring 2 Preferred Clients or Consultants into the program every quarter or they lose the 35% discount. I wasn’t told of (what I consider to be) Arbonne’s abusive shipping costs (based on retail price, not box weight). I wasn’t told that Arbonne would collect the retail price sales tax of every product instead of the discounted price, and collect even on “free” or “campaign bonus” products. I wasn’t told that to sign anyone up even only as a Preferred Client, I would need their Social Security Number.”
I am a relatively new consultant with Arbonne. All of this information was passed on to me by my sponsor AND, I read the legal documents on-line prior to signing – it’s all there. I am sorry that whomever sponsored you did not do their due diligence.
Hi,
I am sorry to read of your story. However you will find that @rb has been reformulating their products to take out parabens to meet the changing consumer environment around this issue, for instance the RE9 line their most popular no longer contains parabens neither does the new FC5 line.
You can appreciate that it takes time to reformulate the products with natural preservatives. However you only have to look at the ingredient lists on the website to see which products still contain very small less than 1% amounts of parabens.
@rb has never marketed their products as organic, although @rb does source raw ingredients from organic sources where possible. Some over zealous consultants may have misled customers by using terms such as all natural or organic, when clearly from all materials produced from @rb this isn’t the case – the products blend botanical principals and ingredients, with science and technology (which includes some non natural ingredients).
All @rb products are not formulated with mineral oil as far as I am aware, which product did you think contained mineral oil? The re9 line is vegan certified as indicated by the V symbol on the packaging, there are no animal products or by products contained in the ingredients, so although not all products are vegan certified they certainly are animal free. I know here in Australia the prices are cheaper than all the major brands like Clinique, Clarins, Estee Lauder, SKII etc etc, even before the 35% discount, considering the products are swiss formulated by chemists under the direction of Pierre Bottiglieri who used to work for La Prairie (which in Aus cost 5 times the price of RE9 nutrimin C products), I know they are of very good quality. Economy brands are brands like Avon, Revlon, Premium brands (french) are like Clinique or Estee Lauder, and Ultra Premium brands (swiss formulated) are brands like La Prairie and @rb – therefore you are getting an ultra premium product at a less than premium price.
Most of my clients sign up as preferred clients to get the 20% off and I make 15% profit straight up plus over-rides. Sales are booming in Australia, but have slowed down in the US with the GFC, which hasn’t affected AUS as much as the US. I think @rb will come through the bankruptcy chapter 11, a stronger company with good prospects for the future with the new product launches this year, including a revamp of the RE9 line and color line. They really are at the forefront of technology when it comes to skincare.
You should have been told about the sponsoring requirements to keep the 35% discount, however it’s important to note this requirement has gone from 1/1/2010, and is backdated for any consultants that were downgraded to preferred clients automatically.
I know that they filed for chapter 11 (restructuring NOT chapter 7 – liquidation) on 27th Jan after 5pm, and the emails went out on 29th I believe which is pretty soon after filing, and they had to seek the courts permission to do so via email which I believe was sought on 28th (which I imagine helps to keep costs down, like the upclose now being online instead of printed).
I know it’s on the agenda for our next local meeting also on Monday here in Brisbane Australia. I have heard it mentioned on NVP conference calls also. the court filings are on npginfo.com with details on the budget for the next 13 weeks, projections prepared by the financial advisers for sales and profits etc for next 5 years etc. If you flick through to the figures in the various tables it makes for an interesting read.
I agree that the results approach should not be given as the only option to build your business, I know some people prefer the one to one approach so use the results approach, and others do parties and others build their businesses online. Some start for $29 some do a RSVP for $350 ($500 in Aus) and some buy a number of RE9 sets for the results approach.
It should be upto the individual to decide how they want to build their business, as ultimately it is their business! I think some people come into the business expecting to be RVP in six months and driving a white mercedes, we know the average time to reach this level is something like 24 months, it takes time to learn the new skills for this business and you should treat it as any other job and give yourself 3-5 years to really make it in this business.
I know in our team in Brisbane, Australia 3 ladies in my direct upline have been awarded their Mercedes 2 since October 2009. So I know it’s achievable, all did so doing parties none used the results approach. They worked hard for what they have achieved and I am so proud of them.
I agree that @rb does need to kick out anyone who is stacking, or forcing people to buy into the business with large upfront orders etc. I have heard in the US they have already kicked some high ranking VPs out due to this. You always get some bad apples in every organisation, but the vast majority of consultants I have met over the last 18 months have been very supportive and helpful and not pushy.
Best of luck for your future!
I completely agree that the reps make a company. If Arbonne wants to avoid having a large number of people who distrust the company then they need to let their reps know that lying is not okay. I have heard only great things about the Arbonne products and I think it is really too bad that the company is going through this and I hope they survive.
Britney:
What does she have to lose, you say?
Time is money. Some people need to make an income and to waste investment money is just the tip of the iceberg.
The first thing at risk to lose (which takes even more time to get back) are the bridges that many consultants burn as they rip through their prospect lists trying to get “preferred customers” – just to bring the prices down to where **some** people will accept and buy.
For the consultants that need money (which is why they signed up)….. how much time do they waste on systems that are not working very well? (overpriced products with poor commissions) And how much farther in debt do they go while attempting to do something that just doesn’t bring profits?
To suck months (sometimes years) out of someone’s life but to justify it as being only $29 is a gross understatement of the impact that these type of sales tactics have on many individuals.
When these things fall apart, they almost always go to pot from the bottom up. It’s totally understandable that people already at the top are forced into being positive because they are trying to hang on to their paychecks. In other places on this blog, it’s documented how many consultants and managers have fallen away.
More than anything, to be out promoting that a BK and the recent history of the last year or so is a “good thing”.. well… either the prospect doesn’t understand … or the prospect will be thinking that the recruiter is nuts to be selling the current situation as a “good thing” (and there goes personal credibility again).
“Britney says:
January 29, 2010 at 3:54 pm
That is the beauty of an MLM, there is little risk! What do you have to lose? I love Arbonne and will continue to stand by this company that has allowed me to be able to stay home with my children AND pay my bills for the last 5 year!”
You are a bald-faced liar. This is not an accusation. It is a fact. It is the same verbal diarrhea that was told to me in July 2007 re: the amount of initial compensation. Why did I believe these people? Besides being brought into Arbonne by my sister’s best friend,her sponsor was a mutual life-long family friend. This person’s upline was further legitimized because she was a local assistant district attorney.
The amount of my first check? Take a deep breath … $ 5.60. The amount of my 1st purchase before my “launch party” that netted me this unbelievable sum? Hold your breath.. $1000.000. I was told I had to have that amt in order to give full-sized sets of products to hand out for 3 days. Only when it was my turn 3 months later to lie to MY best friends & family did I start to have doubts.
As I handed over my American Express card for my “l’il puppies;” (you know,hand someone a kit & after 3 days they’ll buy cuz they won’t be able to give it back,just like if you brought a puppy home for a few days & tried to take it back … heh heh heh … yea,I’m laughing, you just can’t see it through my clenched teeth) I had no doubt I would succeed,for I would give it my all.
When I asked “What happened?” after that 1st ck, it was explained that signing up new consultants was what mattered, for they now got the full 35% discount & I had to try to get them to buy $500, no? try $250, not interested? at least $150, still not biting? Start telling them your monthly checks are paying down your credit card bills so fast, you wish you’d started your business sooner.
The beginning of the end was @ the dinner when the white Mercedes was presented to the local ADA, now a Regional Vice Pres,& I heard the family friend tell 2 new recruits that $2400.00 for their “business builder investment”” would guarantee them the same.She didn’t want to wait any longer for her title/car stipend;someone below her passed her & she upped the ante for initial purchases.
In the year & half my total commission checks didn’t cover what I spent on food; yep,saved all those receipts to deduct as “business expenses.” The Nation VP & RVP kept pushing with emails & phone calls.Now 3yrs later it’s Rastelli Foods that’s on the radar to give me financial freedom/save money by eating for free. It is a pyramid scheme; instead of a monetary payout you get products.
The person who brought me in finally admitted what her 1st ck was,that she never made any money at it & that she no longer spoke to her BFF/bridesmaid over this. Her husband socializes alone with his college buddy/usher; at least I didn’t lose any friends… although with better planning there are a few relatives I would’ve been able to cut loose if I’d been able to lie through my teeth.
FOOL ME ONCE, SHAME ON YOU ; FOOL ME TWICE, SHAME ON ME.
Now lose my home phone number & don’t text me. Stop emailing me, inviting me to food tastings, holiday parties and BBQs. Kindly cease sending me updates & video clips on Facebook. Unfriend my friends & delete my contact info or I promise I will copy & paste this entire response & post it your wall under your Recent News Feed. You know who you are.