In the first post on this topic and in this series I listed those "Who Should Read the "Analysis of the Arbonne Results Approach". This included anyone who had never heard of the Arbonne Results Approach and those who had questions about it. It included those who were already Consultants whose Upline was recommending the Arbonne Results Approach as a business building system. And it included new recruits who had been asked to sign up with a team that was doing the Results Approach. The following is a summary of the Analysis of the Arbonne Results Approach and it is recommended that you read this before you commit to the Results Approach. To read the full post of any section, click on the title of that section.
- The Two Types of Volume in the Arbonne Results Approach. Unlike the other business building systems in Arbonne that create one type of retail volume, the Arbonne Results Approach creates two types of volume. All business building systems create "actual consumable volume" by selling product to customers. But the Arbonne Results Approach also creates "potential consumable volume". “Potential consumable volume” is volume in a network created by the purchase of Results Kits by business builders. Since these Result Kits are held by business builders they are not being consumed by a customer which means there will be no residual income from reorders. As a result, "potential consumable volume" stands outside Dr. Charles King’s “consumable product definition” which is one of the four key ingredients to look for in a successful business as stated in both the Arbonne Opportunity and Results Presentations.
- The Failure Rate in the Arbonne Results Approach is greater than in other systems and this is caused by the "potential consumable volume" created by the Results Approach Kits.
- The Potential Volume Generated by the Arbonne Results Approach is False Volume and Increases the Failure Rate. There is a correlation between the rate of failure and the percentage of "potential consumable volume" in a network.
- The Pyramid Scheme Tipping Point in the Arbonne Results Approach. As the "potential consumable volume" from the Results Approach increases as a percentage of the total volume in a network, there is a tipping point reached where that network begins to process as a pyramid. Failure to deal with this ethical issue taints the network involved, those that put such a system into motion, those that allow it to continue, those who profit from it and the company as well.
- The Ethical Dilemma Caused by the Arbonne Results Approach. Any upfront purchase of Results Kits places the sponsor and the new business builder in an ethical dilemma because their upfront risk can only be reduced by sponsoring business builders into the network with the same upfront risk they have, or by converting the Result Kits into consumable volume by selling them. But bringing in more Business Builders with upfront volume to replace the previous volume is by definition a pyramid. The only real option is to build the system by converting the "potential consumable volume" into "actual consumable volume". But since it is possible to use other Business Building Systems to build an Arbonne business, and without the upfront risk, why this system with risk? Because the Upline Consultant gets paid on the upfront volume in the Result Kits immediately even though it is all "potential consumable volume" and not "actual consumable volume". So this system can be more about the up-line’s pocket book than it is about the success and dreams of the new Consultant. For new Consultants reading this; or for those who are considering an Arbonne business — this is not the Arbonne culture.
- Results Approach Temporary Balloon Effect on Existing Networks. Beyond the ethical and legal outlined above, there is the simple fact that the potential consumable volume in the Results Approach creates a balloon effect on an existing network. This Balloon Effect can create a false sense that the Results Approach System works. The Balloon Effect is where an existing network that is generating say an average of $50,000 in retail sales each month, gets as many business builders as possible, and as many new recruits as possible to purchase Result Kits to do the Results Approach. Let's say each business builder purchases $1,000 in Result Kits and there are 30 business builders and new recruits. This will immediately increase the volume in this network by $30,000 dollars. This next part is the most important part of what you will read here. In the Results Approach System, your Upline will get paid on that volume whether or not you become successful in Arbonne. This is not the Arbonne Culture. In fact in the Business Presentations it says, "We become successful when we make others successful." This is true in the other Arbonne business building systems, but not necessarily true with the Arbonne Results Approach System.
- The Mathematics of Weakness in the Arbonne Results Approach. Even if you are able to overcome the risk and build your business with the Arbonne Results Approach, if you sponsor someone and they start to grow fast, vertically, this volume will pass out of your pay range. In the Arbonne Compensation Plan, security comes with a consumer network, not with a long leg of business builders stacked on top of the one another whre the volume pushes the Upline into a management level.
- Arbonne Results Approach is Fast Track Because of the Failure Volume: So where does the so called “Fast Track” volume come from? If one uses a non-Results Approach System to build an Arbonne Business, if a Consultant starts and then quits, the Upline Sponsor only gets paid on the amount of success that person had while they did the business. But if the Results Approach System is used, if a Consultant starts and then quits, the Upline Sponsor will get paid on all the volume in the upfront Result Kit orders. So in the Arbonne Results Approach System the up-line Consultant is paid before she makes the new Consultant successful. In fact she is paid even if the new Consultant fails. I call this type of revenue that comes from the upfront orders of Consultants that fail, “failure volume”. This "failure volume", from our research, is the main source of the "Fast Track" volume.
- Ethical & Unethical Use of the Arbonne Results Approach. In light of the above everyone has to ask themselves this question. Do I want to build an Arbonne business with a system that will produce more revenue, when all or most of this additional revenue is generated by the failure in the system? These facts change everything. When the data indicates that the additional revenue is generated by the failure in the system, to implements the Results Approach, as opposed to any other business building system, ceases to be a business strategy decision. Rather, it is a decision that has both ethical and legal implication. In light of this, there is really only one correct response.
- Options to Make the Arbonne Results Approach Ethically Viable. In short the only way to insure that a network using the Arbonne Results Approach does not tip into a pyramid scheme and eliminates the "failure voluem", is to remove the full size Result Sets that have retail volume that the Upline Consultants get paid on. In place of these would be tester kits with a 3 to 7 days supply. These testers would then be classified as a business aid. Since Business Aids do not have retail volume attached to them, but are a business expense, this would prevent the upline from being paid on this business aid. It also eliminates the potential contamination that the full size systems are susceptible to.
If someone wants you to build an Arbonne Business using the Arbonne Results Approach, and this includes the purchase of the Full Size Results Sets, you must accept the fact that a portion of the volume in your network will be generated by "potential consumable volume" from the Result Kits rather than "actual consumable volume" where the product is purchased and consumed by a customer who will reorder. As a result, due to the failure rate and thus the false volume in the network, at some point, somewhere in the localized network, where this failure occurs, the network will tip from a legitimate Multilevel Marketing Network of consumers into a network where the majority of the volume is from recruits purchasing product. When this happens, the network is a pyramid.
So if you are a new recruit or already a Consultant and your Upline wants you to build the business with the Full Size Result Kits, in light of the above, there are two possible explanatioins:
- They do not understand the difference between "potential consumable volume" and "actual consumable volume". This means, no matter what they say or how successful they say they are or have been, they do not fully understand the risks inherent in the Arbonne Results Approach.
- Or they do understand difference between "potential consumable volume" and "actual consumable volume" but choose to use the Results Approach anyway.
Either of these would necessarily make me nervous. Why?
If they fall into the first category they are asking you to use a Business Building System about which they do not fully understand the risks. And if they don't understand the risks they cannot protect your best interest.
If they fall into the later category they have consciously chosen to use a Business Building System where they obtain an upfront benefit based on the amount of risk assumed by those in their downline network. In this case they do not have your best interest in mind.
So you need to question them about this. At this point you may hear one or more of the following regarding the Arbonne Results Approach:
- This is the only way to build an Arbonne business.
- This is the best way to build an Arbonne business.
- This is the fastest way to build an Arbonne business.
- The most successful people in Arbonne build an Arbonne business this way.
I can tell you as an insider all of the above are false. So at this point you need to stop and do your due diligence. If you still can't get answers, you need to move up the food chain to their upline and continue to do so until you find someone who understands the risks the Arbonne Results Approach places on you and/or someone who will assist you in building an Arbonne business with another Business Building System. If after all that you still cannot find someone then call Arbonne at 1-800-ARBONNE and ask for a referral of someone else in your area that you could sign up under. Then take this person through the same process listed above. If they do not understand then continue this process until you find someone who does, and is willing to work with you. One more point — I get tired of hearing "The way you come into the business is they way you will bring others into the business". This, to be blunt, is a hard line sales technique. And like the other statements about the Arbonne Results Approach listed above, it is false. For example, my wife came into Arbonne by using the product and falling in love with it. She was so impressed she would share it with others. As a result she started receiving what she calls "Thank You Checks" from Arbonne. These continued to grow. Then she had a turning point where she decided to treat Arbonne as a business and not a hobby. (My definition of a hobby is there is more money going out than coming in.) My wife built her business doing One-on-Ones. She was a designer and when clients came over for a fitting she would share Arbonne with them. As some of these clients became business builders some did One-on-Ones as she did, but others did Group Presentations. She even had one client who purchased a Normal to Oily Set and my wife bartered the cost of the product in exchange for our son's modeling photo shoot. A few months later this person called because she needed to reorder and wanted to barter again. But we did not need another photo shoot so my wife recommended that she host a presentation and earn her product, which she did. At that presentation she not only earned her product, she made a few dollars profit and signed up several business builders. This client is now an EVNP and of those that signed up that night one is an ENVP and two more are RVP's. My point is each of them came into Arbonne differently but they have all become successful in Arbonne. One final point. It is a fact that the overwhelming majority of those who are the most successful in Arbonne do not do the Arbonne Results Approach, they do Group Presentations. Another inconvenient truth working against the Arbonne Results Approach. © copyright 2009 VoiceWind & Greg Loveless
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