24 September 2007

Just Another Pretty Face?

BlogHer -
"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."

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1 Comments:

Anonymous Anonymous said...

as an independent consultant and area manager in the top 1% of arbonne, I'd like to weigh in on the topic, if you do not mind.

in 2005, we had 350k consultants, we now currently have over 1.2 million consultants.

99% of arbonne's business comes from people paying a $15 membership fee to shop at a 35% discount. These people are called "independent consultants"...whether they're simply consumers of the product OR also building their own businesses.

Here's where the .04% comes in. The people who reach National Vice President (which is the last of our 4 steps of management) is .04% of all INDEPENDENT CONSULTANTS.

In reality, less than 5% of all "independent consultants" are actually building their own businesses. The other 95% are simply shopping at a great discount.

Did that make sense? I hope it cleared up that misunderstanding.

I'm an Area Manager, which is the 2nd of the 4 steps of management, and I make well over $1,000/month. I teach my team that this business works...it is not a matter of IF, simply of WHEN. The only way to fail, is to quit...but why quit something so fun?

Does that help at all Dave?

11/26/2007 10:38:00 PM  

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