Hello and welcome to my Arbonne Compensation Pay Plan & Commission Structure review.
It is always a highly recommended action that you can take is to first do some digging on any company that you are thinking of joining.
Researching the products and the compensation plan is a smart move to make sure it is legitimate and also makes sense to you.
Research might be boring and take too long for some, but the more you learn about the different opportunities and commission plans, the more educated you become on how to structure your business for the maximum payout, and also what pay structures work best for you.
It’s a great habit just to take some time when you have some to just do it.
In my overview of the Arbonne opportunity, I will cover mainly details about the compensation plan but I will also include information about the company and the product with some included videos to round out the information and give you the most value from this article that you can have.
When you get to the section about the compensation plan, I know that the #1 reason people would participate in Multi-Level-Marketing is to make more money from home.
It is also important to have a solid and easy to build compensation structure, because not having a compensation plan that is easy to understand, you’ll have no clue on how to build a great foundation, you will need to acknowledge this in order to grow a long-term and strong recurring income.
The entire purpose of this article is so that you can get a better grasp of the commission plan and how to max it out so that you can have a fantastic start if you decide to join.
Make sure to stick around until the end because some of the information might surprise you!
Now let’s get started.
Arbonne Review – What Is It?
Basically, Arbonne is an MLM company.
With any type of Network Marketing organization, you will have to share it with others to receive commissions.
You can sell products by themselves and make retail sales commissions, but to make the bigger commissions you will need to build a team of motivated people that want to earn money through Network Marketing as well.
There are various types of compensation structures throughout the MLM industry that you will come to learn.
Some of the types of compensation programs include a binary, matrix, and unilevel.
Those are the most common in the industry.
Some are simple to understand, while others are very difficult.
The MLM industry is so popular that you will eventually see new opportunities launch quite frequently.
Some are well structured while others not so well structured to put it in a nice way.
With that being said, Arbonne has a compensation plan that is designed in a unilevel pay structure that has 4 ways to earn commissions with 6 level ranks.
We will learn more about what this means in the next few sections below.
First, let’s get an overview of the company and the products of Arbonne.
A Brief Arbonne Company Overview
According to Nexera, Arbonne International is considered one of the frontline MLM companies in the United States, Canada, Australia, the United Kingdom, Poland, Taiwan, and New Zealand. Its founder, Petter Morck, came to light in 1975. Petter, who was born in Norway, was passionate about skincare.
So, he got into the production of skin care products and over time, decided to go into the creation of a complete line of cosmetics that cater to the needs of body care, health, and anti-aging. Somewhere along the line, he entered into the MLM business with good reasons. Today, Arbonne, which is a member of the Direct Selling Association, does not only solve skincare and body health problems but also provides a steady income stream for tens of thousands of families around the world.
Arbonne’s headquarters is situated in Irvine, CA, U.S.A. and has a network of more than 300,000 “Active, Independent Consultants” and over 2,000,000 “Preferred Clients” as of the end of 2017. Apart from the level of a regular independent consultant, Arbonne’s pay plan commission structure has the following ranks:
- District manager
- Area manager
- Regional vice president
- Executive regional vice president
- National vice president
- Executive national vice president
With that said, let’s continue.
What Products Does Arbonne Offer?
In this section of the review, we are going to cover the details of what products Arbonne offers.
Arbonne offers a wide array of beauty-enhancing products to their website visitors. Arbonne’s products are mostly used by women.
However, the MLM aspect of Arbonne offers a compensation plan that everyone, including men, can benefit from. Some of Arbonne’s products are listed below:
- Acne treatment
- Lip balm
- Protein shakes
- Anti-aging cosmetics
- Holiday cards
Here is another great video is a promotional video from the company that shows some of the latest products that Arbonne has to offer.
A Look Into Arbonne’s History
In 2017, Arbonne paid about $253 million in commissions, “overrides,” bonuses, and other earnings to their preferred clients in the various countries where they’re in operation. In the United States and its peripheral territories alone, they paid $173 million in earnings.
These earnings don’t include the retailer profits made by their distributors.
In 2017, the United States alone averaged 227,400 independent consultants for Arbonne. When a consultant receives Arbonne’s earnings in a month, they’re considered an “active independent consultant” in the light of Arbonne’s compensation plan.
Every month, the United States averaged 27,300 active independent consultants in the year 2017, which was about 12 percent of all Arbonne independent consultants in the U.S. Owing to the fact that not all Arbonne consultants are eligible to earn money every month, the numbers in the following compensation summary stand for the average earnings of the consultants who qualified to earn throughout 2017.
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How Does The Arbonne Compensation Plan Work?
In this section of the review, we are going to take a look at how the compensation plan and how to make money with the Arbonne opportunity.
The Arbonne Compensation Plan is designed in the unilevel commission structure.
The way it works is that you have no fixed front line, meaning that there is not going to be anyone that you place underneath anyone else.
The production that you get from the depth of your organization will come from your personally recruited members.
Everyone that you personally refer will be placed on level 1 of your pay structure.
1 of the problems that many people face when your organization grows is when one of your referrals reaches the same rank in the company.
What happens when one of your referrals reaches your rank, the percentage of the commission that you get from their production decreases significantly.
You will always have to be in front of your personal members to maximize the earning potential from the compensation plan.
This pay structure produces that fear of loss mentality that in theory makes you work harder to keep building your organization, but I can tell you that there are many other companies that don’t penalize you for doing a good job.
The Arbonne Compensation Plan Breakdown
There are 4 ways to earn with the Arbonne Compensation Plan.
The way that the pay plan is structured is that when you enroll new members and customers you earn more money.
The customers that are on auto-ship product purchase and the members that you enroll in the business that also has auto-ship enabled earn you recurring commissions.
The members that enroll under your link, are the ones the can make you the most money by duplicating what you do which is by referring to others as well.
Let’s dive into the 4 ways to earn with Arbonne are below.
4 Ways to Earn
Arbonne generously offers its consultants four ways to earn. They are as explained below.
- Client commissions: These are the commissions paid to clients for their personal retailing efforts. 35 percent is paid for “Suggested Retail Price” or SRP, and 15 percent is paid for preferred clients’ price.
- Overrides: These are each team’s commissions based on their sales volume of the products.
- Mercedes-Benz bonus: This is a special bonus for Arbonne’s vice presidents based on the sales volume of their team.
- Cash bonus: This is a bonus available for everyone, irrespective of their level, based on personal or team sales volume.
Here I’ve included a great video that explains more about the Commissions and Overrides within the Arbonne Success Plan
Arbonne Commission Plan Overrides and Success Plan Video
Earnings in Percentage
The following are what every Arbonne independent consultant earns at various levels of Arbonne’s Compensation Plan:
- 35 percent commission for the retail sales of Arbonne’s products, which are bought from Arbonne at a discounted rate of 35 percent, based on Arbonne’s suggested retail price. This does not include non-commissionable items like business aid, starter kits, and sample packs.
- 15 percent commission for orders placed by personally registered dealers called “Preferred Clients.” This commission, which is paid based on Arbonne’s suggested retail price doesn’t apply to discounted products and their promotions.
- Access to Arbonne’s other incentives and promotions.
Arbonne Consultant Requirements & Ranks
Arbonne Consultant requirements are that one has to reach a minimum of 150 PQV (Personal Qualifying Volume) per month.
The Personal Qualifying Volume is the volume personally sold to the consultant’s customers.
A consultant can also achieve it by buying the Arbonne Consultant Starter Kit. Once a consultant qualifies, they’ll be entitled to 15 percent commission of the sales they personally make to their customers. At the level of an independent consultant, one can start building their downline of other independent consultants, but they won’t be qualified to earn from their downline’s efforts yet.
District Managers are entitled to earnings from their downlines. These earnings are called “overrides.”
Arbonne Requirements for District Managers are that one has to earn at least 1,000 PQV or 2,500 QV (Qualification Volume).
A QV is the volume of sales of Arbonne’s products generated by one’s team. At this point, a district manager has started their qualification process and has to go through with it.
In order to complete the qualification process, the district manager has to generate 6,000 QV in one or two months or 7,500 QV in three months.
Then, they can proceed to gather more QV to move to the next rank.
Bear it in mind that as an independent consultant, you can begin to build your downline but won’t be qualified to earn override commissions on them.
However, as a district manager, you won’t only earn 15 percent commissions on your personal sales, but will also earn 8 percent overrides on the sales of your downline, which is a team of the independent consultants you recruit, also known as your “central group.”
When one of your recruited independent consultants reaches the rank of a district manager, they’ll move out of your central group and enter into your “first generation.”
You’re also entitled to 8 percent overrides on your first generation’s effort.
In order to earn from your second generation, you need a minimum of two independent consultant enrollments.
To earn from your third generation, you need a minimum of three independent consultant enrollments.
For every one of your enrollees who gets to your level, you’ll earn one more generation deeper. See the diagram below for further clarity.
The rank after the District Manager is the Area Manager. To become an Area Manager, your team needs a minimum of 24,000 QV in two months or 30,000 QV in three months. You’ll still be entitled to 15 percent on your volume of direct sales to customers. Plus you’ll earn 6 percent from the sales of your central group and first-generation. In order to start earning from your first generation, you’ll have to recruit one area manager. That holds true for the second and third generations correspondingly.
Regional Vice President
To become a Regional Vice President, your team needs a minimum of 96,000 QV in two months or 120,000 QV in three months. At this level, you’ll additionally earn 3 percent on the sales of your central group and first-generation. To earn from your first generation, you have to recruit one regional vice president. That’s correspondingly true for the second and third generations as well.
Executive Regional Vice President
This rank offers the same advantages as a Regional Vice President in addition to other benefits that a Regional Vice President isn’t qualified for.
National Vice President
To qualify for National Vice President, you need no less than 384,000 QV in two months or 480,000 in three months. In addition to all your benefits, you’ll be earning one percent from the district manager, area manager, and regional vice president. Take a second look at the diagram above and you’ll see that you’ll be earning an additional one percent as far as six levels deep. That’s the reason the National Vice President’s position is enviable.
Executive National Vice President
The Executive National Vice President gets all the benefits of the National Vice President and other benefits the National Vice President isn’t qualified for, which is why this is even more enriching than the NVP’s position.
Arbonne Rewards Program
Just like many other Network Marketing programs, they have an included rewards program
Arbonne rewards distributors with prizes and recognition to help grow the company sales overall.
They do this by offering prizes like trips, cash incentives, and recognition.
Here is an image below that explains a bit more of what you can win when the company announces its incentive program contests.
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My Arbonne Q and A Section
In this section of the review, we are going to cover some of the questions that people may have when thinking about joining the Arbonne opportunity.
Is Arbonne BBB Accredited?
Yes, Arbonne International is accredited with the Better Business Bureau.
Here is some of the information that I’ve found on the BBB:
- They have been accredited since 3-31-1989
- They run off the business name Arbonne International LLC
- They have an A+ rating
- They have 13 customer reviews with just over a 2-star rating.
I found the BBB information here.
If Arbonne didn’t have a BBB listing or accreditation I would still consider Arbonne, not a scam.
There are a TON of companies that are not listed on the BBB that are 100% legitimate.
What’s The Cost To Join Arbonne to Earn Commissions?
You will need to come in at the Independent Consultant rank to earn commissions.
The cost that you will need to start at the minimum is $79 for the starter kit.
At this level, you also get a 35% discount on retail.
This is the level to get started with Arbonne to start earning commissions.
Is Arbonne A Scam or a Legitimate Opportunity?
In my opinion, no, Arbonne is not a scam, and here are some of the reasons why:
- Arbonne offers great retail products
- They have great owners and management team
- They offer a fair compensation plan that pays well
Arbonne offers everything they need to offer in order to be a legitimate MLM company and in compliance with the law.
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My Final Thoughts About The Arbonne Opportunity and Bonus
To be honest, statistics show that unless you have an existing list of builders or “skilled Network Marketers”, you will have to recruit 100 people to find just 1 to 3 builders that will help duplicate your efforts to start making the money that you wish to make with this opportunity.
And with the old-school tactics that most MLM companies want from all of their reps is eventually go running out of people to talk to.
So what ends up happening is people will try to market their business online.
But much of the information I found about Arbonne and advertising online, they highly advise reps to not do it.
That simply tells me that you risk your account and all of your efforts and income strips from you if you try to do it, and they find out.
With that said earning a full-time income can absolutely work through advertising your business online, but it’s smart to lead with a generic capture page to lead with.
By leading with a generic capture page and then leading those prospects into your main offer eliminates all risk of having your account terminated with these bigger MLM companies.
And with that said…
I have included this marketing system that you can use to make more money with Arbonne below.
You can learn more about how to make even more money online through the links on this page
So, if you decide to join and build Arbonne, this is only just one way to earn an extra income from home.
With the opportunities that are available today, there are so many other ways to make money from home that you have at your disposal.
I’m not saying that Arbonne is not a good company to work with, it might be the perfect opportunity for you.
Me personally, due to the strict rules that they have in place that go against advertising the business on the Internet, I passed, it’s just not my cup of tea.
I hate to be locked into strict rules when building my own business.
I don’t know about you, but the main reason why I personally started working from home is to set my own hours and run my business the way I want to run it.
With that said, Arbonne might be the perfect opportunity for you with everything I have mentioned.
Would I Recommend Joining The Arbonne Opportunity?
You now have all of the information to make an educated decision on whether or not Arbonne is right for you or not.
If you were to ask me if I would join, I would have to say no due to the complicated business model and the fact that new people will have a really hard time making money with it.
I like a simple business model because I found that it produces more money for new people that are just getting started which is the people that I like to help the most.
I hope you enjoyed my Arbonne review.
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Thank you for your support!