Tag Archives: Greg Loveless

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 In other cases the product being sold has been replaced by Arbonne with a new product line that contains updated and improved formula and ingredients.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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      Table of Contents – Arbonne Results Approach Analysis

      Posted by on October 24, 2009 No comments

      For convenience, I have included below links to all the posts on the Arbonne Results Approach Analysis. When read in the order listed here they closely mirror the original analysis dated August 26, 2009.

      All contents of this analysis and the posts herein are ©copyrighted 2009 by VoiceWind and Greg Loveless.

      Part 1: Who Should Read the “Analysis of the Arbonne Results Approach”

      Part 2: Overview of the “Analysis of the Arbonne Results Approach”

      Part 3: Author & Data in the Analysis of the Arbonne Results Approach

      Part 4: The Debate Over Systems – “Analysis of the Arbonne Results Approach”

      Part 5: The Two Types of Volume in the Arbonne Results Approach

      Part 6: Failure Rate in the Arbonne Results Approach

      Part 7: Potential Volume is False Volume and Increases Failure Rate in the Arbonne Results Approach

      Part 8: The Pyramid Scheme Tipping Point in the Arbonne Results Approach

      Part 9: The Ethical Dilemma Caused by the Arbonne Results Approach

      Part 10: Results Approach Temporary Balloon Effect on Existing Networks

      Part 11: The Mathematics of Weakness in the Arbonne Results Approach

      Part 12: Arbonne Results Approach is Fast Track Because of the Failure Volume

      Part 13: Ethical & Unethical Use of the Arbonne Results Approach

      Part 14: Options to Make the Arbonne Results Approach Ethically Viable

      ©copyrighted 2009 by VoiceWind & Greg Loveless


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

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      Options to Make the Arbonne Results Approach Ethically Viable

      Posted by on October 23, 2009 No comments

      There are several methods that would make the Results Approach ethically viable. However, analysis of these options reveal that they fall into the following categories.

      1. The first option is for Arbonne Corporate to issue a directive. But this is only viable in a standard corporate environment. Because in a corporate environment, the representative who is in direct contact with the public, can be controlled by company directives. But this method is not viable in an MLM enviornment like Arbonne where the Consultant is by Federal Law an Independent Business entity. In these cases 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 between 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. This strategy, through legalese,  created a wall of protection around Arbonne Corporate while at the same time it left those in the field totally funerable to the very same ethic from which Arbonne Corporate had protected itself. In essence, the field had been left to swim with the sharks.
      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. And this does not address the issue of Kits that are compromised.
      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 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)
      4. 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.

      All posts regarding the Arbonne Results Approach Analysis

      © copyright 2009 VoiceWind & Greg Loveless

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

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      Ethical & Unethical Use of the Arbonne Results Approach

      Posted by on October 23, 2009 No comments

      In light of the previous post Arbonne Results Approach is Fast Track Because of the Failure Volume it is obvious that the increase in volume in a Results Approach Network, as compared to the volume in a Group Presentation Network, comes from the volume in the large upfront orders because 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. And because there is a 50% to 80 % failure rate, a large portion of this additional volume in the Results Approach Network comes from the failure in the system.

      Large Upfront Orders Make the Arbonne Results Approach Unethical:

      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?

      This 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 an ethical decision and, in light of this data there is really only one correct answer. 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 large upfront orders is not included in this ethic.

      If you disagree, before you respond remember what John C. Maxwell says about ethics.

      “There is no such thing as business ethics. Just ethics! Those who use one ethic for family, another ethic for their spiritual life and another ethic for business will always get into trouble. There are not different types of ethics. There is just ethics.”

      Ethical Use of the Results Approach:

      I mentioned at the beginning of this article that Linda has Consultants in her organization who do the Results Approach and are successful. If what I have just laid out is true, how can that be and why would Linda allow it; how could she ethically allow it? It has to do with balance and quantity. Those Consultants in Linda’s network who are building a successful business and use the Results Approach use it as a supplemental to the Group or One-on-One Presentations. If someone cannot get to the presentation then a Results drop off is used or they do the Results with certain people. This causes two main differences:

      1. They are not building their network with large up front orders so there is no false volume in the network.
      2. They are creating a network of consumers and the Results Approach is just another method to accomplish that.

      This is why the Consultants in Linda’s network who are using the Results Approach are successful. Most use it as a supplemental to the Groups Presentation System. As a Result, the percentage of Potential Consumable Volume in their network is minimal or zero and as a result they have taken the risk of the “Potential Consumable Volume”, the “Pyramid Tipping Point” and the “Mathematics of Weakness” out of their networks all by eliminating large upfront orders. In so doing they have also altered the ethic.

      All posts regarding the Arbonne Results Approach Analysis

      © copyright 2009 VoiceWind & Greg Loveless

      © 2009, 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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      Results Approach Temporary Balloon Effect on Existing Networks

      Posted by on October 21, 2009 No comments

      The Balloon Effect Defined:

      On numerous occasions I have had discussions with an RVP or NVP who decided to change from One-on-One, Party or Group Presentation System to the Results Approach System. When I ask if it worked they will say something like, “We saw an immediate impact on our numbers up and down the network. Those who were close to qualifying for the next level finally got there. It was amazing.”

      When I ask, “How much of the volume was potential (from Results Kits) and how much was actual,” there is a blank look or a question as to what I mean. This is evidence that this person did not understand the balloon effect of Results Kits on an existing network.

      Calculating the Balloon Effect on Existing Network:

      What is the Balloon Effect? Say we have an RVP who has three Area Managers who each have three District Managers. One Area Manager is doing $30,000 another $25,000 and the third $20,000 each month. This RVP also has three District Managers direct to her. One is doing $8,000 another $6,000 and the third $4,000 each month. Adding in the volume from her central district we get a total monthly volume of $120,000. The network would look something like this.

      RVP Network Tree

      RVP Network Tree

      In this network there are three AM’s and 9 DM’s under them and three DM’s direct to the RVP for a total of 15 business builders. Now let’s make a conservative assumption that each of these business builders has on average one business builder at the Consultant level. That would give this network a total of 30 active business builders.

      This RVP decides her team is going to do the Results Approach, so all the Business Builders do $2,500 purchase of Results Kits. That’s $2,500 times 30 or $75,000 dollars of an increase to the previous month’s volume. This pushes the RVP’s volume from $120,000 to $195,000 in one month and into qualification for NVP.  Observing this the RVP believes the Results Approach works. But this is not correct. You see the entire $75,000 generated from Results Kits is all “potential consumable volume” not “actual consumable volume”. Whatever portion of the Results Kits do not get converted into actual consumable volume, will cause the RVP’s volume to drop by that amount the following month or at some point.

      Down Turn of Balloon Effect Impacts Residual Income:

      In addition to the down turn from the potential Results Kits that were not moved, there is another impact. Not only will her volume drop by the portion of volume that remains potential, but the potential volume will have to be consumed before residual income will kick back in. So it has a negative impact on volume and residual income for an extended period of time.

      The combination of these two is what I call the “Balloon Effect”. The purchase of the Kit’s by existing Business Builders balloons the volume and in some cases pushes the Consultant to the next management level. But whatever the amount of potential consumable volume that is not converted to actual consumable volume will have to flush out of the system.

      It is true that the potential volume in these Results Kits could be converted to actual consumable volume. But the only way to do this is to book appointments, which, it has been proven, can be done without the Results Kits.

      Some Consultants believe what I have described will not happen to them. They will keep the string going. Well that may be so, but even when you keep the string going, if you do not convert the Results Kits from potential consumable volume to actual consumable volume you will still lose because of the protections built into the Arbonne Compensation Plan. We will deal with that next in “The Mathematics of Weakness”.

      All posts regarding the Arbonne Results Approach Analysis

      © copyright 2009 VoiceWind & Greg Loveless

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

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      Failure Rate in the Arbonne Results Approach

      Posted by on October 20, 2009 No comments

      Results Approach Failure Rate:

      In the Results Approach System when you have a business builder she will place the standard Results Approach recommended $2,500 order. At the time of purchase this is not consumable volume but business builder volume or potential consumable volume. Now some will say, “But I or they will move it.” Are you sure? What do the numbers say? What do the statistics reveal about the percentage of Kits that are moved as compared to those Kits that are not moved? You can’t say with confidence that they will move it unless you know the numbers!

      I have sat through hundreds of Arbonne Opportunity meetings and trainings and I often hear it stated that only three percent of the population will do what is necessary, and do what is necessary long enough, to build a successful business. As a coach who works with elite athletes from age 8 to the collegiate level I know this to be true. So if this is true, then it is possible that a significant number of those who sign up to do the business will not do what is necessary and/or will not do what is necessary long enough to succeed. In other words, no matter how good their intentions are, some will not move the Results Kits from potential to actual consumable volume.

      So what are the numbers? From the statistics we have collected on three NVP’s and three RVP’s the rate of failure ranges from 50% to as high as 80%. This should not be surprising if we accept the fact that only three percent of the population will do what is necessary to succeed.

      But here is something that is surprising. Our research also found the following:

      1. The failure rate is higher among those who used the Results Approach System compared to the Group Presentation System.
      2. There is a correlation between the quantity of Results Approach Volume in a Network and the rate of failure in that network.

      Cause of Failure in Results Approach Systems:

      Why? What is going on? Very simply this – the more volume there is in Results Kits, the more volume you have that is “potential consumable volume”.  And the more “potential consumable volume” there is in a network, the greater quantity of volume there is that will be at risk of not being converted into “actual consumable volume”.

      If this potential volume is not converted to actual consumable volume there is no possibility of reorders, which means there is no possibility of residual income.

      In addition we found that the less consumable volume there is, the less residual income you have and thus the more volume you have that could be a one-time purchase. This scenario always increases the potential for failure in that portion of the network where it resides.

      All posts regarding the Arbonne Results Approach Analysis

      © copyright 2009 VoiceWind & Greg Loveless

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

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      The Two Types of Volume in the Arbonne Results Approach

      Posted by on October 20, 2009 No comments

      Results Approach Creates Two Types of Volume:

      The Results Approach System, unlike the Group Presentation and One-on-One Systems, generates not one, but two types of volume that show up in the Retail Volume total in Arbonne Web Stats.

      1. Consumable Retail Volume: This is standard consumable retail volume from Consultants or Preferred Clients who purchase products they will consume. This is “actual consumable volume”.
      2. Results Kits Volume: This is any retail volume that comes from Results Kits or Business Building Kits that have yet to be purchased by a customer.  This is “potential consumable volume”.

      Actual Consumable Volume:

      In the Group Presentation System let’s say a Consultant starts her business and does ten group presentations in that first month. She averages $500 per presentation for a total of $5,000 in retail volume. She does the same thing the second month, and the third month and so on.

      As stated in the Arbonne Opportunity and Results Presentations, according to Dr. Charles King, one of the keys to a successful business is a consumable product. Why? – Because as customers consume the product they will come back and reorder. The volume of these reorders grows as a Consultant consistently adds new customers to the network each month.

      The following graph shows how a consumable product can increase retail volume through residual orders.

      Residual Income Graph

      In the above graph the green bars represent $2,500 in new sales each month. The gold represents reorder compounding on a quarterly basis.  In April, those who ordered in January come back and reorder. In July, those who ordered in January and April come back and reorder.

      Potential Consumable Volume:

      Results Kits Volume: This is any retail volume that comes from Results Kits or Business Building Kits that have yet to be purchased by a customer.

      It needs to be understood that any volume from Results Kits purchased to be dropped off cannot be counted as “Consumable Retail Volume” at the time of purchase. It can only be counted as “Consumable” when it is purchased by a customer for use. Why? – Because as long as that product is a Results Kit it is not being used by a person who will consume the product and then reorder. So until the volume from the Results Kits is converted to consumable volume it is possible that this volume is a one time event. If it is, then there will be no reorder and no residual income.

      So the “potential consumable volume” in the Results Approach does not meet Dr. Charles King’s definition of consumable volume that will cause reorders. Even though Dr. Charles King is quoted in the Results Approach with the implication that this approach meets his standard, in fact it does not.

      We cannot lose sight of the importance of this distinction and the impact this has on the Standard Group Presentation System of Success. It may seem insignificant but just as a network grows exponentially so also does the volume from Results Kits.

      All posts regarding the Arbonne Results Approach Analysis

      © copyright 2009 VoiceWind & Greg Loveless

      © 2009, 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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      Author & Data in the Analysis of the Arbonne Results Approach

      Posted by on October 20, 2009 No comments

      The Background of the Author, the Data & the Analysis:

      Greg Loveless is the Husband of Linda Loveless, Executive National Vice President and Arbonne Independent Consultant.

      Linda owned and operated a design dress making business when in 1996 she started her Arbonne Business on a part time basis. Linda’s sponsor, Kim Hoffman, shared a sample pack with Linda. Linda fell in love with the product, shared the product with others or others asked what she was using. From this she started to receive what she calls “Thank you checks” from Arbonne. The biggest impact came in the form of Bonuses from RSVP (Right Start Value Packs). In fact Linda was asked to speak at an Arbonne Training Conference because she was number three in the entire company sponsoring people into Arbonne with an RSPV.

      Linda built her business with One-on-Ones and sample packs. Over time she found business builders and through this duplication process she built a six figure income. Linda has over 100 NVP’s and RVP’s in her downline. Through a business tool provided by Arbonne to all Consultants called WebStats, Linda can see the activity of those in her downline. By analyzing this information we can see:

      1. What those who have been successful did and are doing to be successful.
      2. What those who were successful but are no longer successful did and did not do.
      3. What those who were never successful did and did not do.

      The analysis is based on the following data:

      1. WebStats
      2. Arbonne’s Policey and Procedures
      3. DSA web site (DSA or The Direct Selling Association is the governing body to which Arbonne is a member)
      4. Trainings on Arbonne’s www.arbonneuniversity.com

      All posts regarding the Arbonne Results Approach Analysis

      © copyright 2009 VoiceWind & Greg Loveless

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

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