You’ve probably been reading my ‘What is Arbonne’ blog post, and are curious about pyramid schemes (and how Arbonne isn’t one).
First things first, finish reading the What is Arbonne blog post, and then come back to this one once you’ve got to the end.
Is Arbonne a Pyramid Scheme?
Now that you’ve finished reading that blog post, you can probably answer this one for yourself. Short answer? No. Long answer? Below:
A Pyramid scheme is a form of investment (illegal in the UK and elsewhere) that works by recruiting members via a promise of payments or services for enrolling others into the scheme, rather than supplying sale of products.
Basically, you hand someone your money. You get nothing in return (‘investment’……). You only make any money when other people sign up. There are no products. You are not buying anything. They are illegal.
Arbonne is, by definition, a Multilevel-Marketing company (MLM). There is often some confusion between MLMs and Pyramid schemes. But this doesn’t make Arbonne a pyramid scheme.
You might also hear the term ‘Network Marketing’, which is another way of describing a Multilevel Marketing company. Again, Network Marketing isn’t a pyramid scheme. We are all ‘network marketing’ all the time. When you refer a friend to a great restaurant, that’s network marketing. When you sign up to a 15% off voucher than your friend emailed you, that’s network marketing. When you tell someone where you got your new boots from, that’s network marketing.
Why is Arbonne Not a Pyramid Scheme?
It’s very simple. With Arbonne, you are buying products. You’re not signing your life away in the hope of a better future. You’re buying skincare, make-up, shampoo… etc! For you to use yourself, everyday, like you do already. Pyramid schemes are almost always not product based. And if they are a ‘product based’ pyramid scheme, there will be no consumer research. There will be no interest in investing in the products, or making them better. All a pyramid scheme cares about is recruitment.
Arbonne does not have large start-up costs (‘investments’). There is a very small membership fee (like an amazon prime account), that gives you access to all the resources, discounts on products, and the ability to earn an income. There is no large sum of money being parted with to receive nothing in return. Pyramid schemes take your money as an ‘investment’, and all you get in return is the hope of making it all back. News flash! You won’t.
Arbonne allows you to take your business wherever you want it to go. If you want to sell products or set up preferred clients, you can. If you want to use your business as an affiliate link for your blog, you can. If you want to build your team and work your way up the company, you can. Pyramid schemes are about – and only about – recruitment. If there is no other way for you to earn an income, then it’s bad news for sure. With Arbonne, your possibilities for generating income are endless!
The Difference Between MLMs and Pyramid Schemes
“The big difference between MLM and a pyramid scheme is in the way the business operates. The entire purpose of a pyramid scheme is to get your money and then use you to recruit other distributors. The entire purpose of MLM is to move product.”
“MLM has a hierarchical commission set up on the sales of products, whereas pyramid schemes are based solely on new enrolments”.