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Welcome to our review of the Arbonne Compensation Plan. I’ve had 18 years of experience in this industry. Seven and a half years ago I lost a million-and-a-half dollar home due to the faulty promises of residual income with no delivery at the end, and I feel very privileged to do this review on the Arbonne Compensation Plan because the former business that I was in operated under the same compensation guidelines.
The Arbonne Compensation Plan is a breakaway compensation plan, or a uni-level plan, and we want to go through some of that detail. We’re going to just go through some concepts. We’re not going to get into a lot of in-depth review on the compensation plan and all the percentages, but we’ll go over some concepts and principles that govern the business model.
Here’s what I want you to understand. When you become an Arbonne consultant, you are retailing Arbonne Products at 35 percent where you can have a 35 percent retail profit. Basically, there are two areas of the compensation plan, retail profit and then override income that you can earn from building a team of other consultants in your business producing sales on a monthly basis.
So what I really want to cover today is not so much the retail aspect of Arbonne, because that’s pretty simple to understand, but to understand the compensation plan and some of the components within the compensation plan.
Here’s what I will tell you that if unless you’ve really understood this industry, been in this industry, it’s hard to sometimes understand exactly how comp plans work and some of the positives and the negatives to that compensation plan.
Arbonne Compensation Plan – The Breakaway
The Arbonne Compensation Plan is working under a breakaway, or a uni-level compensation plan, here’s how it works. You basically have four different main statuses. You’ve got District Manager, Area Manager, Regional Vice President (RVP), and National Vice President (NVP).
So you’ve got four different areas of compensation in the terms of levels of achievement. Now here’s what I want you to understand. Where it gets difficult sometimes within the breakaway compensation plan is this. Let’s say right now you’re an Arbonne Area Manager and then you have someone reach the rank of Area Manager just like you.
You need a certain amount of sales volume to acquire the position of Area Manager. The problem with the breakaway compensation plan is that when someone reaches the same status level that you’re at, you only can count a very small percentage of their volume now that you need for qualification of that position yourself.
The Arbonne Compensation Plan – Built On A Fear Of Loss
That’s where it becomes a little tricky. I wanted to build a business once that paid me residual income for the rest of my life and what happens with the breakaway compensation plans is you as a leader are always in fear of someone reaching your status, or even in the worst case scenario, bypassing you in status.
I believe that whatever business that you bring into the company, you should be paid on it entirely. You should not get paid a certain percentage or a certain amount should only qualify you for the position if someone reaches your position or bypasses your position.
Here’s why. It’s not residual income if that is the case. You’re always in fear of someone reaching your level like I mentioned or bypassing your status and being penalized for that.
Why The Breakaway In the Arbonne Compensation Plan?
Now a lot of folks will ask, “Why do compensation plans have breakaways in place?”, and the answer is that it keeps the leaders’ feet to the fire, always having to produce new business so that the organization and the company continues to grow. A lot of other companies likeHerbalife and Legal Shield have breakaways built into the compensation plan as well.
MLM companies know that the dropout rate is so horrendous. It’s a way for them to keep the leaders’ feet to the fire, always producing. My only problem with that is, is how does that create long term residual income if you built a huge organization but at some point, someone reaches your level or bypasses your level in status. You can drastically feel those results financially.
If you look at Arbonne and you look at some of the huge, huge leaders over the last couple of years that have left. I believe it was ENVPs, Executive National Vice Presidents. Some folks are saying, “Well, why would they leave? That’s such a phenomenal position. They’ve got hundreds and hundreds of thousands of dollars being moved every single month within the organization. Why would they leave?”
Why Top Leaders Left Because Of The Arbonne Compensation Plan
Here’s why the to Arbonne leaders left the company. It’s because of what we just went over which is the breakaway. When they got so good at developing leadership to their status and beyond, that they got penalized so greatly that they weren’t making enough income to even survive, and even for it to make sense for them to build the business. We got a lot more into detail on why these Arbonne leaders left the company in our full Arbonne Review.
You’ve got to be very, very, very cautious that when you’re picking a compensation plan, one of the first criteria is that there’s no breakaway, that you are not penalized for developing leadership to your status or even for leadership that you’ve developed that bypasses you in status.
There is a time and a point that maybe you won’t want to work as hard in your business. You should never, never, never be in fear of someone taking the opportunity to the next level and you being penalized for not either keeping up with their status or being one status above them in order to collect on all that business that you would have the possibility of collecting on. This is one of the big faults of the Arbonne Compensation Plan.
It’s really, really important that you understand this concept. About 7 years ago, after being with a multi-level marketing company for 11 1/2 years, I lost my house and everything else. I didn’t understand the breakaway concept until it happened to me, and it destroyed my business.
It’s great that you’re seeing this video. Maybe you’re involved with the business right now or maybe you’re in the looking phases of looking at possibly getting involved with Arbonne.
This piece in the compensation plan is probably one of the biggest things to really, really understand and grasp and all I can tell you is after my experience of losing my house, I set out for the next year and a half to review over 42 different opportunities and find a business that made sense, that the products made sense, the pricing made sense; but that I would not be penalized for developing leadership and not having a compensation plan where I always had to be one step up above everybody else in my organization. Otherwise, I would be penalized. I did not want to be a part of any type of compensation plan that worked under those guidelines every again.
So I’m really excited for everybody. If you’re interested in chatting with me, you can fill out the contact information below. I’m also going to suggest that you register for the upcoming live webinar that I’m hosting where we talk about the “Multi-level Marketing Industry Lies Exposed”.
We’ve been having a lot of positive feedback with people that have been in this industry that have watched that webinar, going over all the reasons of why multilevel marketing does not produce residual income.
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We hope you got a lot of value out of this Arbonne Compensation Plan blog post.
Written by Jason Fisher of TimeandFreedom.com.