Tag Archives: Consultant

The Arbonne Grinder and the DM-2-AM Abyss

Posted by on December 29, 2009 No comments

There is a saying in Arbonne, “If you can get to District, you can become a NVP because what you did to get to District you just keep repeating until you are a NVP.”

There is much truth to this statement. However, there is one big difference between qualifying and maintaining District and transitioning from District to Area Manager. The difference is the significant amount of additional drag time.

Our research of this issue revealed the following facts:

  1. The quantity of Consultants who promote to District Manager but never make it to Area Manager is significant and staggering.
  2. There are several key ingredients that cause this stall out.
    • Arbonne Ricochet
    • Residual Income Quarterly Time Drag
    • Business Builder Drag is a Multiple Times Thirty
  3. Consultants can increase there success by:
    • Being aware of what we call the District Manager Grinder
    • Being aware of what we call the DM-2-AM Abyss (District Manager to Area Manager Abyss), and
    • Implement specific strategies to neutralize its effects

Contents of the Arbonne District Manager Grinder:

  1. Building to District Manager – The Process
  2. Arbonne Ricochet
  3. Arbonne Residual Income Quarterly Time Drag
  4. Arbonne Business Builders at a Difficulty Times Thirty
  5. Summary
  6. The Remedy

The Process of Building an Arbonne Business:
Success by the Numbers:

Building an Arbonne Business is a rather simple process. Call, Book, Present, Close & Follow up! Follow Up! Follow Up!

Using the process taught by Patrice Matteson of Dynamic Production a Consultant building to District would have the following numbers.

  1. A Consultant does 3 contacts a day 6 days a week
  2. This equals 18 contacts per week
  3. Times 4 weeks totals 72 contacts per month
  4. With a 6 to 1 Booking Ratio this totals 12 presentations per month
  5. Assume cancellations of 20% to 30% on average leaves 8 presentations a month
  6. Sales/Presentation: Let’s say the average sales are $400 for each group presentation
  7. This totals $3,200/month in new sales on average.

By following the above system Consultants will generate approximately $3,000 per month which is enough volume to qualify and maintain District Manager.

Overcoming Arbonne Ricochet:
Arbonne Ricochet is the process of clients, preferred clients, consultants and managers who come into an Arbonne network and then drop out. A certain percentage of ricochet is a natural process. All successful Consultants in Arbonne have some ricochet in their network.

However, the greater the percentage of ricochet in the network the more drag there is on forward movement. When the quantity of ricochet in a network reaches the same level as the quantity of new sales in the network, it will erode forward movement and tip the network into negative growth. It is at this tipping point that a Consultant is officially in what we call the Arbonne District Manager Grinder and the DM-2-AM Abyss.

There are two ways to deal with this.

  1. Reduce the quantity of ricochet
  2. Increase the quantity of new sales

Arbonne Residual Income Quarterly Drag:
Residual income is the volume generated by reorders in the network. A client, preferred client or consultant will purchase product, consume it and then come back and reorder a few months later. The volume from reorders is then added to the new sales and creates an increase in total volume. As more and more clients are added to the network, and a percentage of them come back to reorder, residual income will increase. The process would look something like the bar graph below.

The green bars represent $2,500 in new sales every month. This will also add new clients to the network each month. The gold bars represent residual income from the reorders these clients place after they consume the product.

As you can see if a Consultant works consistently and adds new clients to the network each month, as the reorders kick in, there is a corresponding increase in volume.

When a Consultant does $3,000 in direct new sales each month, and then in the fourth month 50% of those who purchased the first month come back and reorder, this will increase the volume by $1,500. So their total volume would be $3,000 in new sales plus $1,500 in reorders for a total of $4,500 in the fourth month.

Jumping out to the seventh month there is again $3,000 in new sales and 50% of those who purchased the first and fourth months reorder. This is $3,000+$1,500+$1,500 or $6,000.

Continuing this process, using the above calculations, the Consultant will hit first step Area at $10,500 in the 16th month.

This reveals two things:

  1. First, residual income is a very powerful way to build a consistent income in Arbonne. This is why it is one of the four keys ingredients to look for in a successful network marketing business according to Dr. Charles King.
  2. And second, because the residual income is tied to the use of the product, promotions are tied to the frequency rate of reorders.

Since promotions and residual income are connected this creates what I call the Arbonne Residual Income Quarterly Drag.

This simple fact greatly increases the failure rate as many Consultants assume that since they could reach the District Manager level volume of $2,500 in one month, then they can also get to Area Manager level volume of $10,000 in a few more months.

When the promotion to Area Manager does not happen as quickly as anticipated, many Consultants quit before they reach Area. It takes so long to transition from District to Area Manager that they think the system does not work or they think there is something wrong with them and that’s why they cannot get to the next level of success in Arbonne. As a result they disappear into the Grinder of the Residual Income Quarterly Time Drag and disappear into the DM-2-AM Abyss.

Arbonne Business Builders at a Difficulty Times Thirty:
Another way Consultants can transition from District to Area Manager is by adding business builders to the network. This process also known as duplication is another feature that makes network marketing so powerful. When a Consultant adds one business builder to their network, and that business builder follows the same system outlined above, the sponsoring Consultant will see an immediate $3,000 increase in their volume.

Using the process outlined above a sponsoring Consultant with a volume of $3,000 who adds two business builders to their network, who each also have $3,000 in their volume, will now have $9,000 in volume.

If adding business builders to the network can have such an immediate and dramatic increase in volume, it would appear this is the key to bypassing the DM-2-AM Abyss. But similar to the Residual Income Quarterly Time Drag, the process of adding business builders to the network also contains a time drag.

The numbers it takes to add business builders to the network looks something like this:

  1. Ask three people a day 6 days of the week
  2. This equals 72 a month
  3. With a 6 to 1 booking ratio you have 12 bookings each month
  4. One third cancel leaving 8 presentations
  5. This totals approximately 24 every three months
  6. On average a Consultant has to talk to 20 to 30 persons to find one person that is interested in the business
  7. So these numbers reveal that, on average, a business builder is found every three months
  8. And of those that show an interest a percentage ricochet out of the system.

Since we are talking averages, the first person that shows interest in the business opportunity may not remain a business builder. It may be the second, third, fourth of fifth person that is interested in the business that actually becomes a business builder. If it’s the second it will take six months. If it’s the fourth, it will take one year to find your first business builder.

The point is there is no real way to control this. As my wife says, “When it comes to Business Builders, you are working with a volunteer army and they can go AWOL at any time”. All a Consultant can do is play the numbers game and let the numbers work themselves out.

The Business Builder Multiple Times Thirty Time Drag can be compressed by any of the following:

  1. Increase the number of persons you contact.
  2. Become more skilled at the process to increase the:
    • Booking Ratio (the number of “Asks” to “Bookings”) If you can increase the Booking Ratio from 6 to 1 to 3 to 1 you have essentially doubled the number of persons in the pipeline. This is turn will cut the three months per business builder in half to 1.5 months.
    • Close Ratio (the number Bookings to Presentations)
    • Fact finding to discover a fit (If they don’t see how Arbonne fits into their life and/or dream they will not consider the business. Since they don’t know how Arbonne could work for them you have to facilitate this process by pointing to potential benefits.)
    • Targeting: while making the 100 name list, indentify those who you think would be interested in and would make great business builders.

Summary:
So what about the saying in Arbonne, “If you can get to District, you can become a NVP because what you did to get to District you just keep repeating until you are a NVP”?

There is much truth to that statement. However, even though the process to get to District is similar to what it takes to get to Area Manager, the additional time drag caused by the Residual Income Quarterly Drag and the Business Builder Multiple Times Thirty creates a Grinder that is not present in the transition from Consultant to District Manager.

The numbers reveal why this becomes a grinder and abyss. If only one in 30 persons is interested in the business and a Consultant has a 6 to 1 booking ratio that means she will have to contact 180 persons to find one potential business builder. For some these numbers are so staggering that they cannot push through it. As a result their dreams grind to a halt in the DM-2-AM Abyss. But that need not be the case. There is hope.

The Remedy to the Arbonne District Manager Grinder:
What we have found is when Consultants are aware of the Residual Income Quarterly Time Drag and the Business Builder Multiple Times Thirty Time Drag, they have a much greater chance of success. This is because when they hit the DM-2-AM Grinder they know it’s not their fault, or that the system doesn’t work or that Arbonne doesn’t work. They know it is a natural part of the process and if they stay in activity and keep swinging, they will eventually push through to success.

It is similar to one of my players who comes in for a pitching lesson. They are at point “A” and want to move to point “B”. Depending on the age and athletic ability of the player and which technique we are working to perfect, it could take anywhere from 3,000 to 10,000 reps before they have it in muscle memory. There is no way to short circuit this process.

As a result there are only two ways to reduce the time line:

  1. Increase the quantity of reps they do each day or
  2. Increase the number of days they work out.

However, both of these are limited by the natural forces of metabolic recovery. Just as there is a limit to the quantity of contacts per day a consultant can make each day and the length of time they can sustain this, the same is true for a pitcher’s workout.

So when new players come in for a lesson to correct a flaw one of the first things I do is count out the Muscle Memory Time Drag for them. If a player needs 5,000 reps and they follow a standard metabolic recovery schedule then they should be able pitch 100 pitches a day, four days a week. This will total 400 pitches a week or 1,200 reps a month. At that rate, “IF” they do their workouts they will meet their 5,000 rep threshold in three to four months.

But even with these facts I still have parents who want to condense this time. When that does not happen, they either think there is something wrong with the pitching system we use or they think their daughter is not cut out to be a pitcher.

Now there is nothing wrong with the pitching system because it has produced a long list of players who have had all or part of their college education paid for through scholarships. In addition, every year since 2000, this system has produced at least one or more pitchers who have thrown a perfect game. So this eliminates the system as the cause of the failure.

Since it not the system, it must be their daughter, right? Wrong! There is no way to determine that either. It could be that she does not have what it takes to be a pitcher. Or it could be she is a great pitcher but has yet to reach the repetition threshold to establish muscle memory. In other words, on this side of the threshold she has not yet reached her greatness. We will only know whether or not she is a great pitcher, when she gets to the threshold.

The same is true in Arbonne. Greatness is in the numbers. Have you done the numbers necessary for success? If you haven’t then you have not reached the repetition threshold. So you cannot say it doesn’t work. Neither can you say “I can’t be successful at this”. In other words, on this side of the threshold you have not yet reached your greatness. The only way you will know if you can reach greatness in Arbonne or not is to reach the threshold.

So the saying in Arbonne, “Don’t quit before pay day” truly applies when you look at the numbers. In the final analysis, a Consultant’s belief in the system has to be strong enough to overcome the Grinder that includes the Residual Income Quarterly Time Drag and the Business Builder Multiple Times Thirty Time Drag. Their belief has to be able to grind through chasm so the DM-2-AM Abyss does not swallow them up.

If you are reading this you could be that person that is caught in the DM-2-AM Abyss. Or as a Manager in Arbonne you may know of others who are in this position. What is important to remember is “It is not you”; “It is not them”; it is a normal part of the process. To be successful you have to continue to work the process; to work the numbers, until you hit the threshold of success. Remember, your greatness will only blossom at the threshold.

© 2009 – 2010, VoiceWind. . .Greg Loveless. All rights reserved.

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Is Arbonne a Scam Asks www.skincarescams.com

Posted by on December 28, 2009 No comments

Today I received an email regarding a web site called www.skincarescams.com. The web page is attributed to Stewart Carlson an Ex-Arbonne Consultant.

Stewart contends that Arbonne is not a scam but how it is sold is a scam. He also contends he knows of a secret about Arbonne that will allow others to purchase the product at a discount without an Arbonne membership. Basically this is done through Consultants who leave Arbonne, have stock they need to get rid of and sell it on Ebay at a discount.

But here are a few facts Stewart’s leaves out.

  1. It is against Arbonne’s Policy and Procedures to sell Arbonne products on Ebay.
  2. Since Stewart is an Ex-Arbonne Consultant he is no longer bound by Arbonne’s Policies and Procedures.
  3. Is it wise to purchase product from someone who does not honor the a signed agreement?
  4. Stewart does not mention that his product does nolonger has the Arbonne 45 day money back guarantee.
  5. Stewart does not mention that by purchasing from Ebay you will be missing out on product promotions and discounts that are only available from Arbonne through a registered Arbonne Consultant. An example of some of the benefits you would miss out on are:
      • RSVP: $700 of product for $350
      • Free Product: With orders of a certain value Arbonne allows you to select one free product.
      • 80% Discounts: For every $100 dollars ordered Arbonne gives you some products at an 80% discount.
      1. There is no way to know if the products on Ebay have been kept in a controlled environment to protect the ingredients.
      2. There is no way to know if the products are full containers.
      3. There is no way to know if these have been used as testers.
      4. Numerous items listed on the web site referenced by Stewart are discontinued items which means they are very old.
      5. In some cases these items are so old that they have not been sold by Arbonne for over two years.
      6. In other cases the product being sold has been replaced by Arbonne with a new product line that contains updated and improved formula and ingredients.
      7. According to the Arbonne Policies and Procedures front loading of product is not allowed.
      8. The fact that Ex-Arbonne Consultants have extra stock indicates they built their business by front loading.
      9. Front loading is not necessary when building an Arbonne business using group presentations or what some call the party method.
      10. Front loading is usually done with what is called the Arbonne Results Approach.

      In light of the above are you really coming out ahead? You are giving up a lot of benefits from Arbonne while increasing risk significantly.

      In light of the misleading facts, perhaps it is no mistake Stewart named his web site skincarescams.com. Then again maybe it was simply a Freudian slip on his part.

      A few examples of out dated products on Stewart Carlson’s referring web site.

      These items have not been sold by Arbonne for two years

      Arbonne Mandarin Cashmere Body Scrub Large 7 oz NEW

      		 Arbonne
      Mandarin Cashmere Body Scrub Large 7 oz NEW

      3 Bids

      $4.25

      44m

      Arbonne Mandarin Cashmere Body Wrap Cream Large 7oz NEW

      		 Arbonne Mandarin Cashmere Body Wrap Cream Large 7oz NEW

      5 Bids

      $4.75

      43m

      Arbonne Mandarin Cashmere BODY WHIP Lotion 8.5 oz

      		 Arbonne Mandarin Cashmere BODY WHIP Lotion 8.5 oz

      6 Bids

      $5.50

      43m

      Arbonne Mandarin Cashmere Shimmering Shower Mousse 9 oz

      		 Arbonne Mandarin Cashmere Shimmering Shower Mousse 9 oz

      7 Bids

      $5.00

      43m

      Even though listed as “NEW” these products have been discontinued and have not been available for years.

      NEW! ARBONNE HAND LOTION AND HERBAL FOOT CARE!

      		 NEW!
      ARBONNE HAND LOTION AND HERBAL FOOT CARE!

      0 Bids

      $4.99

      2h 29m

      The items below replaced the items above with new and improved ingredients and formula:

      Arbonne ULTRA-Hydrating HAND CREAM, NEW + Travel size

      		 Arbonne
      ULTRA-Hydrating HAND CREAM, NEW + Travel size

      3 Bids

      $1.81

      3h 23m

      These items were discontinued as of last April 2009:

      ARBONNE INTELLIGENCE LOTION & CREAM SET & FREE GIFTS

      		 ARBONNE
      INTELLIGENCE LOTION & CREAM SET & FREE GIFTS

      1 Bid

      $18.99

      4h 50m
      © copyright 2009 VoiceWind & Greg Loveless

      The following is the email I received regarding the www.skincarescam.com and “Is Arbonne a Scam?”

      Is Arbonne A Scam?

      Absolutely Not!

      But “The Way Arbonne is sold” Is!

      Read on to understand exactly what this means.

      Arbonne International produces Swiss skin care products that are legally
      sold all over the world. True scams attempt to trick people into
      investing in something that has no real product. Arbonne sells real
      products in the form of cosmetics, anti-aging products, skin care
      products, vitamins, nutritional supplements, skin protection products,
      weight loss products, and aromatic products.

      So, why is the way Arbonne is sold a scam?

      Short on time? Skip the explanation.
      Jump right to the solution

      <http://bit.ly/DiscountSkinCareProducts>

      See exactly how easy it is to buy Arbonne products and avoid the Arbonne
      Scam without an Arbonne Consultant or fees.

      You see, Arbonne Consultants tell you that only they can sell you
      Arbonne products for 35% off the retail price. But the truth is, you can
      buy Arbonne products for pennies and you don’t need an Arbonne
      Consultant. You don’t even need an annual Arbonne membership.

      Arbonne Consultants Faint

      Arbonne Consultant don’t want you to know this. They don’t want you to
      know you can buy brand new Arbonne cosmetics, anti-aging products, skin
      care products, vitamins, nutritional supplements, skin protection
      products, weight loss products, and aromatic products for a fraction of
      what an Arboone consultant will charge.

      You’ll can even locate those hard to find discontinued Arbonne products
      that you love.

      Learn How It All Works

      Here’s all you need to know to save big time when buying Arbonne
      products!

      Arbonne Consultants buy into a membership for the opportunity to sell
      Arbonne International products at a 35% discount off the retail price.
      This means they can sell the skin care products to you at retail and
      they pocket the difference. But that is just a one time sell.

      Arbonne Consultants want more than just a one time sell. They want YOU
      to become their customer for life so they can get repeat credit for
      everything you ever buy.

      Arbonne Consultants are trained to offer you their discount pricing to
      get you to place an order. Then they tell you how to save 35% with an
      annual Arbonne membership. They are trained to tell you that this is the
      only way to get the products without paying retail and it’s JUST NOT
      TRUE!

      Buy Online Now For Less

      You can get the EXACT SAME PRODUCTS ONLINE for half the price, sometimes
      less, any time you want. In fact, your Arbonne Consultant may be selling
      it online for less than what they are offering to you and they just
      aren’t telling anyone.

      You see, every single day there is an army of new people signing up to
      sell Arbonne, and there is another army of people who stop selling
      Arbonne.

      For those who stop selling, they are left with a closet or garage full
      of unsold products. These poor people need to recover some of the
      hundreds or thousands of dollars they have spent trying to build an
      Arbonne business. So they gladly sell their excess inventory of Arbonne
      products online for huge discounts.

      And That’s Where You SAVE Money!

      You can buy discount Arbonne products online right now for pennies on
      the dollar. You don’t need a consultant, and you absolutely don’t need
      an annual subscription.

      Now that you understand, take a look for yourself.

      <http://bit.ly/DiscountSkinCareProducts>

      It’s that easy.

      Sorry Arbonne Consultants, but someone had to tell it like it is.

      Stewart Carlson
      Ex-Arbonne Consultant
      SkinCareScams.com <http://SkinCareScams.com>

      © 2009, VoiceWind. . .Greg Loveless. All rights reserved.

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      Arbonne Chapter 11 Impacts Business Builder Recruiting Ethic

      Posted by on December 1, 2009 No comments

      The Arbonne Opportunity Presentation states that those considering being an Arbonne business builder should do their due diligence. Part of that due diligence is checking out the stability of the company. In the past Consultants who shared the Arbonne business handled this in various ways with the three most common being:

      1. In the ancient days Consultants stated that Arbonne was debt free. This fact eliminated a significant amount of financial risk.
      2. When this ended Consultants would list the years Arbonne had been in business. In addition they stated Arbonne was a financially solid company.
      3. When Harvest Partners took over Consultants would refer to Harvest Partner's financial stability.

      But all this ended with the current financial difficulties Arbonne is facing as they go through a "Reorganization" or what is legally termed a "Chapter 11".

      So in light of the current situation how does a Consultant handle the issue of due diligence as it pertains to Arbonne's financial stability?

      There is an Ally Bank TV Commercial where an adult asks a young girl if she would like a pony. She says yes. He takes a toy pony out of his pocket and gives it to her. She says thank you. He then asks the next young girl if she wants a pony. She says yes. He calls to a pony and a real life pony comes walking out. The first girl says, "You didn't say we could have a real one." The adult says, "You didn't ask!" The announcer then says, "Even kids know its not right to hold out on somebody."

      The same is true when a Consultant shares the Arbonne Business Opportunity knowing Arbonne's current financial difficulties. To withhold information from a person that could alter their decision contains the same ethical load as lying to them. By withholding this information you prevent the potential business builder from knowing all the risks.

      Now there is nothing wrong with risk. All businesses carry some risk. But risk, in order to be ethical, must be known by the person taking the risk. Even if I think it is worth the risk, this does not justify the ethic when someone else is making the decision for themselves and their family. The only way to justify the ethic is to give the full information to the person making the decision.

      So the question is, "What is the risk to join Arbonne?" The answer, to be honest is, none of the Consultants in the field really know what the true risks are because none of them have seen the books. All the field hears is what they hear from Arbonne Corporate. So is that enough to satisfy due diligence?

      When I was the Director of an IT department I would regularly receive calls from head hunters who were looking to fill a position that my skills set matched. If I was interested I would take the information the head hunter provided about the position and the company.

      But my due diligence never stopped there. I never took a head hunter's word when it came to the financial stability of a company because there was a conflict of interest. The head hunter had a vested interest in making that company look as good as possible in order to get me to say yes, because my yes benefited them.

      The same is true with Arbonne. Arbonne Corporate has a conflict because they have a vested interest and are naturally going to put the best possible spin on things to paint the brightest picture. And any one who is already a Consultant in Arbonne, who is building a business, also has a conflict of interest because they want what Arbonne Corporate is saying to be true and to work out because they have time and treasure invested in the process.

      So in light of this what does an Arbonne Consultant who is sharing the Arbonne business need to do to meet the ethics of full disclosure? The following provides full disclosure and is the only ethical way to share the Arbonne business in the current environment.

      1. State that Arbonne has been in business for over 30 years.
      2. State that Arbonne is still a leader in the industry.
      3. State that Arbonne is currently going through a financial reorganization.
      4. To be accurate make sure to use the terms "financial restructuring through Chapter 11 Bankruptcy".
      5. State that no Consultant has seen the books, and there has been no independent audit published.
      6. And, in the Arbonne spirit, encourage them to do their own due diligence before they make a decision.

      Any less than the above does not fulfill the ethical requirement for full disclosure of risk.

      Once Arbonne files the articles of bankruptcy in US Court, this would give final proof that there is an agreement with the creditors as a Chapter 11 Bankruptcy can only be filed if the creditors are in agreement with the restructuring. So once there is an announcement that the papers have been filed with the court, this confirms the stability of Arbonne. Then it takes 45 to 60 days to complete the process. Once the process is complete, Consultants would no longer have to state #3, #4 & #5 listed above.  

      What if you are on the other end of the conversation? What are you to do if you are being recruited by an Arbonne Consultant to do the business during this time of transition? Ultimately it is up to each individual. But there is one fact to keep in mind. You must know all the risk to weigh all the risk. So my advice is — Rah, Rah does not replace due diligence. Only facts provide due diligence.

      See my updated post on Arbonne Restructuring through Chapter 11 Bankruptcy at: Arbonne Chapter 11 Bankruptcy & Restructuring Links.

      See all posts on Arbonne Restructuring through Chapter 11 Bankruptcy at: www.voicewind.net/category/arbonne/arbonne-bankruptcy-arbonne/

      © 2009 – 2010, VoiceWind. . .Greg Loveless. All rights reserved.

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      Arbonne Urban Myth? Mandatory Dress Code Equals Success

      Posted by on November 10, 2009 No comments

      Perhaps more perfunctory than curious is the concept that there is a dress code that must be followed in order to be an Arbonne Consultant or a successful Arbonne Consultant.

      It is a proven fact that success in Arbonne is determined by a Consultant’s activity and how proficient they are at doing business building activity.

      I have seen Arbonne Consultants do the business in a formal dress, a cocktail dress, a business suit, professional slacks, “jeans and a cute top” (as one ENVP is fond of saying), everyday slacks, a holiday sweater, sweat pants and swim suite. I even know an ENVP who recruited someone by stalking them into the restroom. To avoid TMI I did not pursue this comment further. Neither did I query as to how this unfolded (pun intended so to speak). But one can only wonder as to the nature of dress or dresslessness at the moment the Arbonne Story was shared across commodes.

      The lesson learned from this is,  success in Arbonne does not come by form but by function. A mandatory dress code no more brings success than the tassels upon the robe of a Pharisee opens the door to heaven.

      So although a professional dress may be of benefit, it is in no way mandatory. Regardless of the attempt by some to impose a specific style of their preference upon their underlings, this is not proven to be the key to success. It is peripheral at best. While they point to this dress as the key to success, there are those dressed so, who find not success. This fact joined in measured thought draws one to the conclusion that the key to success is other than the mandatory dress code.

      Conclusion: While all the Successful dress, not all who dress are successful. Thus a mandatory dress code does not necessarily bring success in Arbonne. So not only is there no such thing as a Mandatory Arbonne Dress Code. This adhered to does not guarantee success. This makes the Mandatory Dress Code an Arbonne Urban Myth.

      © copyright 2009 VoiceWind & Greg Loveless

      © 2009, VoiceWind. . .Greg Loveless. All rights reserved.

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      Glossary of Arbonne Terms

      Posted by on November 4, 2009 No comments

      The Glossary of Arbonne Terms is a collection of terms used by Arbonne Consultants in the field or terms that are part of the communications from Arbonne  Corporate.

      Activity: The process of sharing the Arbonne products and/or business with another person. This process is initiated in a in person conversation or more often by a phone call. This process of activity continues with a One-on-One or a Group Presentation where the product line and business opportunity are presented.

      Area Manager or AM: AM is the second management level in Arbonne. To qualify as an AM a Consultant must maintain $8,000 in retail volume in their Area each month. The AM level has a very powerful additional feature. When a Consultant is at Area Manager or above, their business is Will-able. This is powerful peace of mind and is just one of the many features in Arbonne and the Arbonne Compensation Plan that set Arbonne the company apart from it's competitors.

      Botanical Glossary: The Botanical Glossary is a listing of the ingredients use in Arbonne products. This list includes herbal and botanical extracts, oils, fragrances and vitamins. Click here to view the Arbonne Botanical Glossary.

      Business Building System: Any of a number of methods used to build an Arbonne business. Examples would be One-on-One's, Group Presentations also called Parties.

      Client: The term Client in Arbonne has several different meanings. (Also see Retail Client)

      1. Some use the term "Client" only to refer to those who are not a Consultant or Preferred Client and who then purchase the product at full retail.
      2. It is also used to refer to anyone who uses the product whether this be a Consultant, Preferred Client or Client.

      Consultant: A Consultant is a person who has signed up to do the Arbonne Business. There are two ways to become a Consultant:

      1. Pay the sign up fee of $109 (US) and then maintain minimal levels of sales volume and sponsoring in order to maintain this status.
      2. Meet certain requirements in sales volume and sponsoring to move from Preferred Client to Consultant.

      Debt Free Company: A statement often used by Arbonne Consultants during presentations and in correspondence is "Arbonne is a debt free company". This comment originates during the time when Peter Mørck owned the company and during much of his tenure with the company it was in fact true. But it is no longer true. Harvest Partners took over Arbonne several years ago during the time period when Arbonne was averaging 100% growth each year. They were instrumental in supporting the Results Approach which caused sales to balloon past the average 100% per year to 164%. But due to weaknesses in the Results Approach there was a corresponding retraction. This retraction was so sever and rapid; and Harvest Partners, not familiar with network marketing, attempeted to implement corporate strategies in the field that compounded the situation; and in addition it appears Harvest Partners siphoned off so much capital from Arbonne assuming this growth would continue; that they could not recover. As a result, Arbonne is no longer debt free. 

      Direct Upline: When a Consultant signs up with Arbonne their sponsor is their "Direct Upline."

      District Manager or DM: DM is the first management level in Arbonne. To qualify as a DM a Consultant must maintain $2,500 in retail volume in their District each month.

      Downline: Anyone a Consultant directly sponsors into Arbonne this would be part of their Downline. And anyone that is sponsored by anyone in a Consultant Downline also is part of this Consultant's Downline. Although Downline is used it is more commonly referred to as Successline as this is a more positive term.

      Dr. Charles King: Dr. Charles King received his doctorate in business administration from Harvard and is currently a professor of marketing at the University of Illinois at Chicago. He is involved in extensive, ongoing research on network marketing and distributor operations. Dr. Charles King is referenced as the third party expert in the Arbonne Opportunity Presentation to provide credibility to the presentation. He lives in Wheaton, Illinois. Books & CD's by Dr. Charles King:

      • "The New Professionals – The Rise of Network Marketing As the Next Major Profession"
      • "Brilliant Compensation" 5 CD Pack

      Group Presentation: A business building system used by many network marketing companies. In Arbonne this is usually done through a person known as "the hostess". This person host the presentation in their home. The advantage of the Group Presentation is it increases the quantity of person a Consultant is presenting the Arbonne products to.

      National Vice President – NVP: The fourth management level in Arbonne after District, Area and Region. A Consultant must maintain a monthly volume of $160,000 in her entire Nation to be a National Vice President. There are numerous benefits at the NVP level.

      • $1,000 car allowance
      • NVP trip to Hawaii each year. Arbonne pays for the Consultant and the Spouse. Airfare and lodging are covered for both.
      • Life Insurance
      • Business is Will-able

      One-on-One Presentation: A business building system in Arbonne that is done one person at a time. This may take on many forms from a Consultant who meets a person in a public location like Starbucks, to a by appointment only business where the products are shared with a client while other activities are taking place. An example would be a hair stylist who shares Arbonne with a client as they style their hair. One-on-One should not be confused with the Results Approach which is one of many One-on-One systems.

      Preferred Client: Beginning January of 2009 Arbonne added a new designation called Preferred Client. When a person signs up as a Preferred Client for $29 (US) they receive a 20% discount on all products for a year. At the end of one year they may renew $15 to maintain their Preferred Client status for another year. Preferred Clients also eligible for special offers.

      Presentation: Any activity where the Arbonne story, product and/or business opportunity are presented to one or more persons.

      Regional Vice President – RVP: The third management level in Arbonne after District and Area. A Consultant must maintain a monthly volume of $36,000 in her entire Region to be a Regional Vice President. It is at the Region Level that a Consultant may receive $800 a month to go towards a white Mercedes-Benz. Criteria to receive the car are

      1. $36,000 in retail volume in the Consultant Region
      2. Proof of lease or purchase of a new or used white Mercedes-Benz of any model.

      Once Arbonne has proof of purchase or lease the Consultant receives an $800 car bonus each month as long as they maintain the minimum retail volume of $36,000.

      Results Approach: A business building system in Arbonne that is done one person at a time. The difference between the Results Approach and a One-on-One is the traditional Results Approach uses a full size set of RE9. The product is dropped off in the gold bag with instructions as to how to use the product. After a few days use the Consultant returns to pick up the product and interviews the client as to the effectiveness of the product.

      Results Kit: Usually a set of RE9 that is placed in an Arbonne gold bag. Result Kits are dropped off to prospective clients so they can use the product. This method was introduced to Arbonne by Andy Inman. He originally called it the "Puppy Dog" System. The RE9 was like a puppy dog that you fall in love with and don't want to give up. Arbonne subsequently changed the name to Results Approach as the term "Puppy Dog" was confusing to some people in light of Arbonne guarantee that they do not test on animals and they do not use animal products or by-products in the formulation.

      Retail Client: This refers to anyone who purchases the product at full retail. This would not include Consultants or Preferred Clients. (Also see Client)

      RSVP – Right Start Value Pack: RSVP is the abbreviation for the Right Start Value Pack. This is a half price offer available in a Consultant's start month and the following month. A Consultant is also eligible for a RSVP in their renewal month. Consultant's who sell an RSVP receive a $50 to $75 bonus.

      Sponsor: The Consultant that sponsored you into Arbonne. The Consultant you are directly signed up under.

      Successline: Anyone a Consultant directly sponsors into Arbonne this would be part of their Successline. And anyone that is sponsored by anyone in a Consultant Successline also is part of this Consultant's Successline. The term Downline is also sometimes used.

      System of Success: A process or method that has been battle tested in the real world and has been proven to be successful. The measure of this success is determined by how many use it to become successful, how successful they become and whether they can maintain this success over an extended period of time. A true Sy;stem of Success is also one that is duplicatible. This means it is not dependent upon a specialized skill set but can be used by the average person and with success.

      Upline: When a Consultant signs up with Arbonne their sponsor is their "Direct Upline." Their Direct Upline and all those above them would be considered a Consultant's Upline.

      WebStats: WebStats is an online web tool available to Consultants (Business Builders) which allows them to track sales and sponsoring. It also provides a Consultant with Contact information on all Consultants, Preferred Clients and Retail Clients in their network. WebStats is made available to all Consultants at no additional charge.

      © 2009 – 2010, VoiceWind. . .Greg Loveless. All rights reserved.

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      Summary and Conclusion – Arbonne Results Approach Analysis

      Posted by on October 27, 2009 No comments

      The following is a summary of the main points contained in original 14 posts of "The Arbonne Results Approach Analysis". For the full information on any sections below, click on the heading title link and it will take you to that post.

      The Two Types of Volume in the Arbonne Results Approach:

      1. Actual Consumable Volume: In the Group Presentation and the One-on-One Systems all the volume comes from orders placed by customers who in most cases will use and consume the product which will result in a large percentage of these persons reordering. This system produces a large consumer base with residual income which makes for a stable network.
      2. Potential Consumable Volume: In the Results Approach System all the volume from the "Result Kits" is "potential consumable volume". It only becomes "actual consumable volume" when the "Result Kit" is purchased or generates a purchase of a Results Set. In addition, any volume in a network that is "potential consumable volume", since it is not being consumed, it stands outside Dr. Charles King's "consumable product definition" which is one of the keys to a successful business.

      Failure Rate in the Arbonne Results Approach:

      1. Only 3% of the population actual does what it takes, and does what it takes long enough to be successful.
      2. As a result of the above there is always failure in the system.
      3. But the data from our analysis showed that the failure rate was significantly increased in those networks that used the Results Approach.
      4. The greater the percentage of volume in a network that is from the Results Approach, the greater the failure rate.
      5. The cause of this is the "potential consumable volume" from the Results Kits. The more "potential consumable volume" there is the greater the risk that this "potential consumable volume" will never be converted from potential to "actual consumable volume".

      There are two issues caused by the data we outlined above.

      1. The first is the Result Kits are never converted into consumable volume which means that line flashes out and dies. Because if they cannot move their kits, they are not going to bring anyone else into Arbonne.
      2. This impacts residual income. In a Group or One-on-One Presentation System all volume has the potential to be residual income, for those Kits that are not moved there is a 0% chance that there will be a reorder. Thus the impact on residual income is dramatic and devastating due to the 50 to 80% failure rate and the 0% of reorders from Result Kits that are not moved.

      Potential Volume is False Volume and Increases Failure Rate in the Arbonne Results Approach:

      1. Because there is a known 50% to 80% failure rate in networks that do the Results Approach.
      2. And because this menas 50% to 80% of the upfront potential volume from Result Kits will never be converted to actual consumable volume.
      3. This means the "potential consumable volume" in a network is false volume.
      4. The greater the percentage of false volume in a network, the greater the odds are that this network will fail.

      The Pyramid Scheme Tipping Point in the Arbonne Results Approach:

      1. The key element that distinguishes a legitimate Multilevel Marketing Network from a Pyramid Scheme is a legitimate network is compensated for selling product to consumers and establishing a market.
      2. Pyramid Schemes on the other hand make their profit on volume sales to new recruits who buy the product.
      3. As the DSA Website says: "IF YOU COULD BE STUCK WITH UNSOLD INVENTORY, BEWARE! Legitimate companies which require inventory purchases will usually “buy back” unsold products if you decide to quit the business. Some state laws and the DSA Code of Ethics require buy-backs for at least 90% of your original cost."

      What does this mean for the Results Approach?

      1. Since the Result Kits are product sold to recruits
      2. Since there is a known 50% to 80% failure rate
      3. That means 50% to 80% of the recruits will be left holding product
      4. This percentage tips an Arbonne business from a legitimate network into a pyramid
      5. The attempt to escape this reality by saying the percentage of failure volume compared to the overall volume in the network is minimal does not address the ethical and legal issues.
      6. Even if the total percentage of failure volume in the entire network stays below the tipping point, this does not mean the localized network that was processing 100% as a pyramid scheme is now legitimate.
      7. Those impacted by a localized network processing 100% as a pyramid, are impacted 100% by a pyramid scheme.
      8. 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.

      Transfer of Ethical Responsibility:

      The practice by Upline Consultants and by Arbonne Corporate of using the Independent Consultant Agreement as a sheild to protect themselves is not a legitimate ethical option and, now with notification, is not a legitimate legal option either. This is especially true in light of the fact that there is a business model that will eliminate the upfront potential volume so Arbonne Corporate does not have to walk this tight rope.

       

      The Ethical Dilemma Caused by the Arbonne Results Approach:

      Any upfront purchase of Results Kits places the new business builder in an ethical dilemma because their upfront risk can only be reduced by adding more business builders to the network with the same upfront risk they have so they can be compensated. Here are some ways out of this ethical dilemma.

      1. The new recruit could wait and see if she can find four people to place the same upfront order thereby reducing or eliminating her risk. But then the new recruit would have to allow her new recruits to do the same. The problem is that this can go on ad infinitum down the food chain. But this fails because at some point this process has to end and when it does someone is holding "potential" not "actual consumable volume".
      2. The Upline Consultant can guarantee to buy back any "potential" volume that is not moved. But this ethic is not offered because it would place new recruits at a high risk and thus no one would bite on the offer.
      3. Upline Consultant could (and this has been done) explain to the new recruit that they have 45 days to move the product and if they cannot they can return it to Arbonne under the 45 money back guarantee. But this is not an ethical solution as this 45 day money back guarantee was implemented for the customer not to reduce a business builders risk.

      So if there is a system that can build an Arbonne business without the upfront risk, why this system with risk?

      Because the Upline Consultant gets paid immediately on the up front volume from the Result Kits even though this is all potential and not actual consumable volume. So this system is more about the up-line’s pocket book than it is about the success and dreams of the new Consultant. This is not the Arbonne culture.

       

      Results Approach Temporary Balloon Effect on Existing Networks:

      Beyond the ethical and legal there is the simple fact that the potential consumable volume in the Results Approach creates a balloon effect on an existing network.

      What is the balloon effect?

      1. Let's say you have an existing RVP network that is doing $120,000 a month in volume. This volume is all product sold to consumers so it is actual consumable volume.
      2. This network has 30 active business builders in it.
      3. The RVP decides they are going to do the Results Approach and all 30 business builders purchase $2,500 in Result Kits.
      4. $2,500 in Result Kits times 30 Business Builders equals $75,000 in additional income over the existing actual consumable income in the network.
      5. This $75,000 added to the $120,000 totals $195,000 and pushes this RVP into qualification.
      6. But the additional $75,000 is all potential consumable volume and what ever portion is not converted from potential to actual consumable volume will eventually flush out of the network.
      7. The amount of potential consumable volume that is not converted to actual consumable volume will be the amount of eventual down turn in the network.

      The Mathematics of Weakness in the Arbonne Results Approach:

      1. The Results Approach is really a One-on-One System.
      2. Thus the fact that a Consultant using a One-on-One System has to compensate for this by increasing activity is a weakness of the Results Approach.
      3. To compensate for this the upfront quantity of Results Approach Kits are increased .
      4. But this causes the network to build faster with business builders and consequently with less consumers.
      5. As a result the potential consumable volume form the upfront orders moves down the network levels more rapidly.
      6. This in turn causes the volume from the Results Kits to more quickly pass out of the pay range of the Upline Consultant. When this happens their paycheck suddenly decreases accordingly.
      7. The only way to correct this is for this Upline Consultant to add more business builders into the system directly to her or to build a consumer network.
      8. The result of the above scenario is what I call "The Mathematics of Weakness" in the Result Approach.

      Arbonne Results Approach is Fast Track Because of the Failure Volume:

      1. Because the Results Approach is really a One-on-One System, the increased volume cannot be attributed to the efficiency of the system.
      2. Our research indicates those networks that used the Results Approach without large upfront orders grew at or below those that used a Group Presentation System.
      3. So where does the "Fast Track" volume come from?
      4. In a non-Results Approach System 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.
      5. But in a Results Approach System, if a Consultant starts and then quits, the Upline Sponsor will get paid on all the volume in the upfront orders or the front loaded volume.
      6. So in the second case the up-line Consultant was paid before she made the new Consultants successful. In fact she was paid even though the new Consultant may have failed. I call this type of revenue that comes from the upfront orders of Consultants that fail, “failure volume”.

      Ethical & Unethical Use of the Arbonne Results Approach:

      1. Because in the Results Approach System the Upline gets paid on this volume whether or not those in her downline can move the Results Kits and convert that volume from potential to actual consumable volume.
      2. And because there is a 50% to 80 % failure rate.
      3. And because a large portion of this additional volume in the Results Approach Network comes from the failure in the system.
      4. In light of this 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?
      5. In light of the information above, "Large Upfront Orders Make the Arbonne Results Approach Unethical".
      6. The above is not an incidental consequence. These facts change everything. When data indicates that the additional revenue is generated by the failure in the system, a decision to use the Results Approach System as opposed to any other system ceases to be a business strategy decision. Rather, it is now both an ethical decision and a legal decision, and, in light of this data there is really only one correct answer.
      7. The data we have uncovered would indicates that there is an ethical way to build an Arbonne business using the Results Approach, but a Results Approach System which includes upfront retail volume that the Upline Consultant gets paid on prior to it being actual consumable volume; this system is not included in this ethic.

      Options to Make the Arbonne Results Approach Ethically Viable:

      1. The first option is for Arbonne Corporate to issue a directive. But specific direction could be a violation of this independent consultant relationship. As a result any option that could only be enforced by corporate fiat is not workable in the case of Arbonne.
      2. The second option falls into the category of the slippery slop. In these cases a recommendation is provided by the Arbonne Corporate that would keep the Arbonne Results Approach within the ethical guidelines such as only 2 or 3 Results Approach Kits are allowed. This would then reduce the large upfront orders that result in front loading and then push the network over the pyramid scheme tipping point. However, due to Arbonne Corporates inability to enforce this limit without violating the Independent Consultant relationship this option is not workable.
      3. The third options is the use of sample packs in conjunction with the Results Approach Kits. This is one option that Arbonne Corporate attempted to implement. For details visit the Arbonne University Results Approach Training. But enforcement of this once again runs into the conflicts as Arbonne Corporate directing an Independent Consultant. To be absolutely open and honest about this, and with all due respect to Arbonne Corporate, this strategy was less a solution to the ethical issues the Results Approach inflicted upon the Arbonne field and appears to be more of a basic CYA for Arbonne Corporate. Because the only issue the sample pack addressed was cleanliness and thus Arbonne Corporate liability in this regard. The training did not address the ethical and legal issue of the upfront volume from the Result Kits. In fact the Arbonne University Training made this issue even worse because a new Consultant can still be enticed into purchasing a large quantity of these Result Kits which still places the new Consultant at risk, and the Arbonne Results Approach Training appears to give the Arbonne seal of approval to this system. Thus Arbonne is complicit in this risk. This strategy implemented by Arbonne in this Results Approach Training, was legalese, and created a wall of protection around Arbonne Corporate while at the same time it left those in the field totally vulnerable to the very same ethic from which Arbonne Corporate had protected itself. In essence, the field had been left to swim with the sharks as Arbonne profited from this system.
      4. A fourth option would be for Arbonne Corporate to force the Sponsoring Consultant to buy back any Result Approach Kits that are not sold. This would bring even those Consultant’s networks that use large upfront Results Approach orders in line with the standards as set out by the DSA web site. But Arbonne Corporate would once again be on shaky ground when it came to enforcing this on an Independent Consultant. Not to mention there would be a lot of “he said, she said” and no one wins in these situations which would ultimately leave Arbonne exposed.
      5. A fifth option would be for Arbonne Corporate itself to buy back the Kits. But this would only provide greater incentive to those Consultants who were pushing the unethical boundaries with the Result Approach Kits to push them even farther. After all, if you have a sugar daddy who is going to pick up the tab if those you sponsor cannot move the Result Approach Kits, why worry about whether the prospect can actually move the kits. Do the hard sale and move on to the next. Can anyone say Fannie May and Freddie Mac.
      6. The sixth option would be to leave the Results Approach System in tact but this allows a consumable product with retail volume to be purchased as a business aid which allows the upline Consultant to benefit monetarily from this volume. So to prevent Consultants from returning any Results Approach Kits that are purchased in large quantities to Arbonne, or to prevent these Result Approach Kits from appearing on E-bay,  each Result Approach Kit would have to be tagged with a unique ID so it could be traced back to the source. This option is not feasible because it is cost prohibitive.

      Our Recommendation that Creates an Ethic Proof Results Approach System:

      The only viable option would be for Arbonne to provide Consultants with testers that have a 3 to 7 day supply and are self contained. This solution has the following advantages:

      1. It eliminates the potential contamination that the full size systems are susceptible to.
      2. It does not require a directive or edict from Arbonne Corporate thus protecting the legal separation between Arbonne Corporate and the Independent Consultant’s business.
      3. It would allow Arbonne Corporate to categorize these testers as a business aids. This is important because items that are classified as Business Aids have no retail volume attached to them. Consequently this would take away the incentive to up-line Consultants to push large upfront orders so they could receive monetary compensation on Results Approach Kits.
      4. It would eliminate the need for Arbonne to dance the ethical line by on the one hand supporting the Results Approach System (Trainings, etc.) and on the other hand recommending that Consultants:
        • Use sample packs in conjunction with the Results Approach Kits (which they cannot enforce)
        • That the Consultants are responsible for any contamination to the Results Approach Kits (which again they cannot enforce)
        • Try to prevent front loading by questioning those who order large quantities of RE9 Systems (which again they cannot enforce)

      © 2009 – 2010, VoiceWind. . .Greg Loveless. All rights reserved.

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      Arbonne Results Approach is Fast Track Because of the Failure Volume

      Posted by on October 22, 2009 No comments

      Even with all this data there is still a fact that some of the fastest growing networks are utilizing the Results Approach. In Arbonne it is referred to as the “Fast Track” system. But why is it “Fast Track”? What makes it “Fast Track”? And more importantly, does it last?

      Results Approach Fast Track Volume Built on Failure:

      The “Fast Track” cannot be caused by the efficiency of the Results Approach System. After all it is a One-on-One system so it takes more time to get in front of the same quantity of people as compared to the Group Presentation System.

      So what is it about the Results Approach System that allows it to generate greater volume and do so faster? Our research indicates those networks that used the Results Approach without large upfront orders grew at or below those that used a Group Presentation System. On the other hand those networks that used the Results Approach with large upfront orders at first grew faster, then plateaued out and then declined. A comparison of a Group Presentation network and a Results Approach network reveals the cause of this.

      Let’s say Consultant “A” builds her network with Group Presentations or One-on-Ones and sponsors Consultant “B”. Then Consultant “B” sponsors four others. Then after booking and holding presentations they all decide to quit (and 50 to 80% will). The only volume generated was from the Group Presentation sales. Consultant “B” and her friends probably have no inventory except their personal order. They were not successful so Consultant “A” did not get paid on them or was only compensated for the amount of success they achieved.

      But if Consultant “A” builds her network with the Results Approach and sponsors Consultant “B” and Consultant “B” sponsors four others all with a $2,500 upfront order, and then they all decide to quit, there is a total of $12,500 of potential volume in Consultant “A’s” network on which she will be paid. So in this case the up-line Consultant was paid before she made the new Consultants successful. In fact she was paid even though the new Consultant failed. I call this type of revenue that comes from the upfront orders of Consultants that fail, “failure volume”.

      Failure Volume and The Fast Track:

      Now when we take this “Failure Volume” in the Results Approach and add it across a network, and then we compare this to a Group Presentation Network that has no “Failure Volume”, the amount of the difference results in the “Fast Track” volume. So it is not the Results Approach’s ability to produce more sales volume that makes it “Fast Track”. Rather it is the upfront volume from the 50% to 80% who fail and stop doing the business that is responsible for the “fast track” volume. Because unlike the Group Presentation System, in the Result Approach System, the upline Consultant will get paid immediately on the large upfront orders of Results Kits whether or not these Kits are moved from potential to actual consumable volume.

      Let me repeat that; it is not the efficiency of the Results Approach that is generating the greater volume, it is the up front volume paid by the 50% to 80% of the Consultants who will stop doing the business but have already paid into the system. The Results Approach is “Fast Track” because of the “Failure Volume”.

      All posts regarding the Arbonne Results Approach Analysis

      © 2009, VoiceWind. . .Greg Loveless. All rights reserved.

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      The Mathematics of Weakness in the Arbonne Results Approach

      Posted by on October 22, 2009 No comments

      Using the Results Approach to build an Arbonne Business, and doing this with large upfront orders will produce quick results, but the process has a weakness built into it. This weakness comes from two areas; the false volume created by potential consumable volume rather than actual consumable volume. And also from the protections built into the Arbonne compensation plan.

      Your Strength is your Weakness and Your Weakness is Your Strength:

      One of the concepts that I drill into my players heads is “your strength is your weakness, and your weakness is your strength”. If I have a player who has all four athletic gifts; speed, quickness, power and strength, these gifts can have a negative impact on their performance. The reason is they will rely on these strengths rather than develop their techniques and skills. As a result they will eventually plateau out. But if I have a player who does not have great quickness they will compensate by working on their hitting technique. In addition to this adjustment they will work to understand what the pitcher’s tendencies are so they can get an advantage. And because they have to understand these tendencies and patterns to be successful they use these strategies in all aspects of their game. In the later example this results in a stronger player and it all began because of a weakness. In the former it results in a weaker player and it all began because of her strengths.

      The strength of the Results Approach is the drop off of the kits that encourage use of the products so the customer sees the results and wants to buy. But this strength is also a weakness. This process is really a One-on-One approach which means you have to increase your appointments to get in front of the same number of people you would if you were to do the Group Presentation System.

      Failure to increase the quantity will result in slower growth. However, the fact of this slower growth gets clouded by the potential consumable volume from the Results Kits. Because there is no distinction made between potential and actual consumable volume, it appears to be much easier and just as legitimate to build a network with a few business builders who purchase Results Kits than it is to see enough people through One-on-Ones to get the same consumable volume. So there is a natural tendency for networks that are doing the Results Approach to compensate by gravitating towards large orders. So the strength of the Results Approach is also its weakness.

      Impact to Compensation When Volume Passes Out of Pay Range:

      We have witnessed teams who have used the Results Approach to build a network from the ground up. As they did this they never made a distinction between potential and actual consumable volume. The following is how this played out. To make this easier to understand the calculations are a perfect scenario. This rarely occurs in the real world but makes the math simpler and thus easier to understand.

      You join Arbonne as a Consultant and begin the Results Approach. You look for four business builders and find them in the first month. You train your team to do the same. Here is what your network will look like as it evolves over the next few months.

      Get Four Business Builders:……………………. 4 X $2,500  =       $10,000 (Level #1)
      They Each Get Four Business Builders:……. 16 X $2,500  =       $40,000 (Level #2)
      They Each Get Four Business Builders:……. 64 X $2,500  =    $160,000 (Level #3)
      They Each Get Four Business Builders:….. 256 X $2,500  =    $640,000 (Level #4)

      Now to be clear, the above is a perfect scenario and the odds of it working this way are almost impossible. But I am doing this to keep the calculations simple so that you can see what happens as this system plays out.

      In the Arbonne Policies and Procedures the Compensation plan lays out how a Consultant is paid on the volume in her network. A Consultant can get paid up to three levels deep on the volume in her District, Area and Region. He/she can get paid up to six levels deep on volume in her Nation.

      In the Results Approach Training it is emphasized that a Consultant needs to get four (4), who each get four (16), who each get four (64), ad infinitum. As each generation is added it also adds a level of depth in the network. As this scenario plays out the business builders will pass out of the top Consultant’s pay range and as they do there will be a corresponding draw back in compensation even though volume in the network is growing.

      • 1st Month 4% on $10,000*65% = $260 (paid as Consultant)
      • 2nd Month 8% on 40,000*65% = $2,080 (paid as District Manager)
      • 3rd Month 14% on $160,000*65% = $3,120 (paid as Area Manager)
      • 4th Month 18% on $640,000*65% = $3,120 (paid as Region)
      • 5th Month 18% on $640,000*65% = $4,160 (paid as Nation)
      • 6th Month 18% on $640,000*65% = $4,160 (paid as Nation)
      • 7th Month 18% on $640,000*65% = $0 (paid as Nation)

      As the volume in the network passes down a level each month, when it gets to the fourth month it passes out of your DM/AM/RVP pay range.

      And once the volume gets to the seventh level it passes out of your NVP pay range. (It could pass out of the pay range on the fourth month but for the above calculations we used the maximum possible pay depth of six with the seventh month being out of the compensation pay range.)

      I have spoken with numerous Consultants who built their network with large orders, got to RVP or NVP in 6 months to a year and then a year later their override checks drop back to what an Area Manager earns who is doing Group Presentations.  Now it is true that there will be volume filling in behind this volume as Consultants continue to work the business so the check does not drop all the way to zero. But unlike the Group Presentation System where the volume is 100% from consumable volume and all of it can be possible residual income, the Results Approach can have a more severe impact on the compensation. The reason for this is the results approach focuses on business builders with large orders causing the network to stack quicker; and because there is a 50% to 80% failure rate, the risk of a down turn is greater. The combination of the flame out (where a Consultant who paid the $2,500 cannot get anyone else to signup under them for $2,500 and cannot move her kits) and the volume passing out of pay range is dramatic and devastating to a network. The combination of these two as a multiple within a network that has exponential growth will in turn create an exponential down turn when they activate.

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      © copyright 2009 VoiceWind & Greg Loveless

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      The Ethical Dilemma Caused by the Arbonne Results Approach

      Posted by on October 21, 2009 No comments

      Content of the Results Approach Training:

      Use of Arbonne's Results Approach creates ethical issues that are not present in the One-on-One and Group Presentations. What are these ethical issues? I will outline them by taking information directly from Results Approach Trainings. The Basics of the Training:

      1. “You sign up and commit to a $2,500 order each month.”
      2. “You think of four others who would do the same.”
      3. ad infinitum
      4. After you get the Kits “You figure out a way to move them.”(The information in quotations is taken verbatim from the training.)

      First, notice that both #1 and #2 above are “potential” not actual. At the time of purchase your volume is all potential except for the portion that is for personal use. In addition to that the list “you are to think of” is potential as well. Do you know for sure that those you think of will actually do the business with a $2,500 commitment? No good business person would take a financial risk until they knew the rate of risk to return.

      Ethical Dilemma of the Results Approach:

      There is a way around this ethical dilemma. Before the new Consultant commits she could ask those who she thinks might want to start the business if they also will commit to $2,500. But this does not take the risk out of the system it only transfers it down the food chain to someone else. And if you wait for this Consultant that is sponsored direct to you to contact those she thinks would be business builders, would you not ethically also need to allow those Consultants she is sponsoring to do the same. For this ethic to hold this would have to continue ad infinitum down the food chain. So at some point this process has to end so the deal can be struck and when it does those who are at the bottom of this food chain reside in "potential" not "actual" volume and thus are at risk. And let’s not make the ethical quantitative washout argument. Although there is a difference in the risk per person where you could have one person unable to move $2,500 in Results Kits, or two people unable to move $1,250, or five people $500, or ten people $250. In the network overall there is still a total of $2,500 in false volume for which the up-line will be compensated before they make anyone successful. So even if one attempts to explain this away by reasoning that there is only $250 of risk for each down-line Consultant the up-line Consultant still got paid on $2,500 of unconverted potential consumable volume or failure volume in her downline. Thus total ethical load for the up-line Consultant is still remains at $2,500.

      The Only Fix for the Ethical Dilemma:

      Knowing the failure rate of 50 to 80% in the Results Approach System and that this means there is always a percentage of the Kits that are not converted from potential to actual consumable volume, the only truly ethical way to do the Results Approach System is to offer to buy back the Results Kits that are not moved as is stated on the DSA Website. But if this ethic is applied at the start up presentation with new Consultants, how many would sign up to do the Results Approach? After all they would be exposed not only for their $2,500 but also for the kits of anyone else they bring in? If they bring in four consultants as the training recommends, that is a total of $12,500 in total exposure if the Kits don’t move! Not many would bite on this offer because the risk is too high. Consequently, this ethic is withheld in the Results Approach Trainings and glossed over with the words, “You will figure out a way”.

      Ethical Fix with Arbonne's 45 Day Money Back Guarantee is Unethical:

      When we have presented these ethical issues to some who do the Results Approach they respond by saying, "O, we solved that problem. There is a 45 Day Money Back Guarantee so if they don't move the Kits by that time they just return them and there is no risk." But this is not purpose of Arbonne's 45 Day Money Back Guarantee. It was designed to protect the customer in those situations where they for whatever reason do not or cannot use the product. It was not designed to be used as a business investment safety valve. And to use it this way may appear to resolve the ethical dilemma of new Consultant risk, but it adds another ethical dilemma of equal or even more severe stature.

      Upline Benefits Come From Downline Risk:

      Now if we can build the business via the Group Presentation System without the up front risk to the new Consultant, why then this system with risk? Very simply this reason; the up-line Consultant gets paid on the potential volume immediately at no risk to them while the down-line Consultant holds all the risk. Now those who support this system will say, “I have risk. I also placed a $2,500 order.” Yes, but your risk is minimal because you have a network under you that will compensate you and thus absorbs that financial risk. The new Consultant who is just starting out is totally exposed with no current revenue from Arbonne to pay for this $2,500 in inventory. They either have to bring others into the network under the same $2,500 of risk or they have to move the Kits and convert them to actual consumable volume. Another defense is, “But there is always a risk to building a business.” That’s true but this type of risk violates the network market approach where a Consultant can build a business with little investment and financial risk. It should be a Consultant’s own time and effort that determines her success, not how many people in her network are at risk. Another response is, “I reduce the risk because I do fact finding and only take those who have the potential to do the business.” If a Consultant is so good at fact finding that they can eliminate the failure rate in the system by selecting only those who will be successful, then they should be willing to wait for the Consultant to build the business without the risk of the up front inventory. If they are that good at fact finding and they know you will eventually be successful why would they insist on the $2,500 each month? – Because they get paid on that volume immediately even though it is all potential and not actual at that time. So this system is more about the up-line’s pocket book than it is about the success and dreams of the new Consultant. This is not the Arbonne culture. All posts regarding the Arbonne Results Approach Analysis © copyright 2009 VoiceWind & Greg Loveless

      © 2009 – 2010, VoiceWind. . .Greg Loveless. All rights reserved.

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      The Debate Over Systems – “Analysis of the Arbonne Results Approach”

      Posted by on October 20, 2009 No comments

      The Debate:

      There is much debate within Arbonne as to the legitimacy and effectiveness of using the Results Approach to build a successful and sustainable Arbonne business. We understand this debate because Linda has Consultants in her successline who do Group Presentations, One-on-Ones and Result Approach. This is based on statistical analysis and from actual historical data within my wife’s, Linda Loveless’ Webstats. However, to be completely honest, there have been some in Linda’s and other success lines who have been negatively impacted by the Results Approach. In our research we have found there are two main reasons for this.

      1. In some cases the Consultant did not understand how the Results Approach was impacting their numbers.
      2. They were not doing the Results Approach System correctly.
      3. They did not understand the weaknesses of the Results Approach.

      As a speaker and trainer I teach that long term success is always built around a system of success. As a coach for nearly 30 years I use systems to teach players and teams to perform successfully. These systems are implemented, tested in battle, and then adjusted to improve them.  Through this process they are perfected over many years. As a result, before we made any adjustments to our “Systems of Success” we would analyze how this change would impact the entire system. In some cases no matter how appealing the change(s) appeared to be, analysis revealed the change would be detrimental to the overall performance of the system of success so the changes were not implemented. The same holds true with the Results Approach. One needs to understand what changes when the Results Approach is implemented and how this impacts all aspects of the business.

      Two Proven Systems of Success:

      During the early days of Arbonne there were two systems that were proven to build a successful Arbonne business:

      1. Parties or what is also referred to as Group Presentations.
      2. One-On-Ones (this is really a group presentation done one person at a time)
      3. A Consultant can get in front of multiple individuals in one presentation increasing the number of new exposures.
      4. Because these group presentations are booked through another person the Consultant is gaining access to a new warm market.
      5. Most, if not all of the purchases at these events are personal orders that will be consumed. This results in reorders which is also termed Residual Income.
      6. The One-On-One System is really a Group Presentation, one person at a time. So to make it effective a Consultant has to increase the number of One-On-One appointments to equal the head count quantity that is accomplished by having 6, 8, 10 or 12 parties a month. (My wife Linda built her Arbonne business through One-On-Ones. She owned and operated a Design/Alterations business and when clients came over for a fitting she would share Arbonne with them.  Through this process she made sales and found business builders.)
      7. In both the Group Presentation System and the One-On-One System there are new Consultants or Preferred Clients continually added to the Network. As the quantity of customers in a network increases over time residual income also increases as these customers reorder.

      Advantages of the Results Approach:

      1. The customer is given the product to use so they can see the Results. (Do not make the assumption that handing a person a Results Kit will automatically result in them using the product. By marking the Results Kits we could determine if they pushed the pump and we were surprised at how often people said they used the product or the product broke them out only to discover that they had not pushed a single pump. We are currently doing research to determine what the “rate-of-use” is when using the Results  Kit as opposed to a presentation or a sample pack.)
      2. It focuses on basically one product which is a definite advantage. The customer only has to consider that product and is not overwhelmed with an entire catalogue of products. And any time a customer is overwhelmed they are essentially confused and a confused mind always says NO!

      All posts regarding the Arbonne Results Approach Analysis © copyright 2009 VoiceWind & Greg Loveless

      © 2009 – 2010, VoiceWind. . .Greg Loveless. All rights reserved.

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