The Pre-packaged Plan of Reorganization was confirmed by the U.S. Bankruptcy Court in Wilmington, Delaware, on February 22, 2010, and became effective on March 5, 2010.

What this means is Arbonne has officially emerged from the Financial Restructuring through Chapter 11 Bankruptcy.

Congratulations to Arbonne and all those Consultants who believed and stayed the course.

Now on to a great NTC and the largest product launch in Arbonne history.

A great way to celebrate 30 years!

Click here for more information and the official press release.

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

Arbonne Completes Financial Restructuring through Chapter 11 Bankruptcy is a post from: VoiceWind - Greg Loveless

Related posts:

1. Bankruptcy Types & Arbonne Chapter 11 Restructuring
2. Arbonne Chapter 11 Bankruptcy & Restructuring Links
3. Arbonne Chapter 11 Impacts Business Builder Recruiting Ethic

We recently received correspondence from those within and working on behalf of the Trump Network attempting to take advantage of those in Arbonne as the Arbonne Restructuring through Chapter 11 Bankruptcy continues.

As is our policy at VoiceWind.net, we believe the best remedy for inappropriate policies is to expose them to public scrutiny. So here are the facts.

The following are the most important portions of the correspondence.

"I know you have had much success with Arbonne, and to be frank with you, the company (meaning the owners and Mr. Trump himself) are looking for people just like yourself…
 
To put it plainly, we are looking for entrepeneurs with previous MLM experience that have significant downlines."

This person then attaches correspondence from his upline training team in Trump Network and the Tump Network Advisory Group.

"> Who do you know? Who could make a major impact on this company? Who has a huge organization in another company? Who is a person of significant influence?

> Your MAB and the EDG"

DSA (Direct Selling Association) Ethical Guidelines on Proselyting:
For the full information go to: www.dsa.org/ethics/proselyting/

"It is considered to be an improper practice when Company A, or its representatives, specifically and consciously targets the sales force of Company B with the intent of persuading Company B’s salespersons or employees not only to sell or work for Company A, but also to cease selling or working for Company B, thereby interfering with Company B’s business or contractual relations…it does apply to situations involving more than several persons, where the pattern, approach and timing of Company A would clearly indicate an intention to adversely impact on Company B. If Company B sends correspondence to Company A regarding alleged proselyting activity, Company A is expected to appropriately respond within 30 days after receipt of the correspondence."

How the Trump Network Violates DSA Proselyting Guidelines:

1. They are contacting someone with success in Arbonne
2. Those in other companies with significant downlines or huge organizations in another company
3. The timing adversely impacts Arbonne as it is Restructuring through Chapter 11 Bankruptcy

Trump Network Not Part of the DSA (Direct Selling Association):

The best way to resolve this is to file a complaint with the DSA. However, when we checked the DSA Member website, Trump Network is not a member of the DSA. Go figure!

This is not surprising as the above Trump Network business strategies fall outside the DSA Code of Ethics and the DSA Guidelines against Proselyting.

Perhaps this is what Donald Trump means when he says the Trump Network will change the face of network marketing!

Who is EDG and MAB in the Trump Network?:

• EDG stands for "The Executive Diamond Group" of the Trump Network
  
• MAB stands for "The Marketer Advisory Board" of the Trump Network.
  The following definition is taken from a Trump Network web site.
  [Note: The MAB is a functional board that consistently brings ideas and strategies to the Company executive officers and management. In essence, they act on your behalf to ensure that the Company understands the needs, wants, and desires of all the Company Independent Marketers.] (taken from "Pre-Launch of the Trump Network"
  

So what this means is this is not an isolated case. Although an individual might not know that proselyting a person in another netowrk marketing company with a significant downline is unethical, the Marketer's Advisory Board for Trump Network should. After all, the person that sent us the email appears to just be following the policies as recommended by the MAB and EDG.

The first email came from the MAB, the Marketer Advisory Board for Trump Network and from the EDG, the Executive Diamond Network and they said in their email:

"Who has a huge organization in another company…"

This was then picked up by the a member of the Executive Diamond Group of the Trump Network who said:

"To put it plainly, we are looking for entrepeneurs with previous MLM experience that have significant downlines."

To be blunt, rather than build their own network of consumers, their strategy is to steal them from other network marketing companies. A strategy that is contrary to the DSA's Code of Ethics and the DSA Proselyting Guidelines.

Trump Network Links Provided in the Correspondence:

• Definition of the MAB or the Trump Network's Marketer's Advisory Board
  teamwithbillionaire.com
• Definition of the EDG or the Trump Network Executive Diamond Group
  www.jointnt.com/stevenduffel
• Proof that this is connected to the official Trump Network Website
  www.trumpnetwork.com/stevenduffel

The above is very straight forward. No network marketing company, or group of persons within the company should attempt to get person(s) from another network marketing company to jump to the other company.

So what does all this mean? When it comes to Network Marketing, Donald Trump, You're fired"!

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

Trump Network MAB Authorizes Unethical Proselyting of Arbonne Consultants is a post from: VoiceWind - Greg Loveless

Related posts:

1. Trump Network Violates DSA Network Marketing Ethics
2. VoiceWind Policy on Arbonne Restructuring Chapter 11 Bankruptcy Posts
3. Bankruptcy Types & Arbonne Chapter 11 Restructuring

We recently received correspondence from those within and working on behalf of the Trump Network attempting to take advantage of those in Arbonne as the Arbonne Restructuring through Chapter 11 Bankruptcy continues.

As is our policy at VoiceWind.net, we believe the best remedy for inappropriate policies is to expose them to public scrutiny. So here are the facts.

The following are the most important portions of the correspondence.

"I know you have had much success with Arbonne, and to be frank with you, the company (meaning the owners and Mr. Trump himself) are looking for people just like yourself…
 
To put it plainly, we are looking for entrepeneurs with previous MLM experience that have significant downlines."

This person then attaches correspondence from his upline training team in Trump Network and the Tump Network Advisory Group.

"> Who do you know? Who could make a major impact on this company? Who has a huge organization in another company? Who is a person of significant influence?

> Your MAB and the EDG"

DSA (Direct Selling Association) Ethical Guidelines on Proselyting:
For the full information go to: www.dsa.org/ethics/proselyting/

"It is considered to be an improper practice when Company A, or its representatives, specifically and consciously targets the sales force of Company B with the intent of persuading Company B’s salespersons or employees not only to sell or work for Company A, but also to cease selling or working for Company B, thereby interfering with Company B’s business or contractual relations…it does apply to situations involving more than several persons, where the pattern, approach and timing of Company A would clearly indicate an intention to adversely impact on Company B. If Company B sends correspondence to Company A regarding alleged proselyting activity, Company A is expected to appropriately respond within 30 days after receipt of the correspondence."

How the Trump Network Violates DSA Proselyting Guidelines:

1. They are contacting someone with success in Arbonne
2. Those in other companies with significant downlines or huge organizations in another company
3. The timing adversely impacts Arbonne as it is Restructuring through Chapter 11 Bankruptcy

Trump Network Not Part of the DSA (Direct Selling Association):

The best way to resolve this is to file a complaint with the DSA. However, when we checked the DSA Member website, Trump Network is not a member of the DSA. Go figure!

This is not surprising as the above Trump Network business strategies fall outside the DSA Code of Ethics and the DSA Guidelines against Proselyting.

Perhaps this is what Donald Trump means when he says the Trump Network will change the face of network marketing!

Who is EDG and MAB in the Trump Network?:

• EDG stands for "The Executive Diamond Group" of the Trump Network
  
• MAB stands for "The Marketer Advisory Board" of the Trump Network.
  The following definition is taken from a Trump Network web site.
  [Note: The MAB is a functional board that consistently brings ideas and strategies to the Company executive officers and management. In essence, they act on your behalf to ensure that the Company understands the needs, wants, and desires of all the Company Independent Marketers.] (taken from "Pre-Launch of the Trump Network"
  

So what this means is this is not an isolated case. Although an individual might not know that proselyting a person in another netowrk marketing company with a significant downline is unethical, the Marketer's Advisory Board for Trump Network should. After all, the person that sent us the email appears to just be following the policies as recommended by the MAB and EDG.

The first email came from the MAB, the Marketer Advisory Board for Trump Network and from the EDG, the Executive Diamond Network and they said in their email:

"Who has a huge organization in another company…"

This was then picked up by the a member of the Executive Diamond Group of the Trump Network who said:

"To put it plainly, we are looking for entrepeneurs with previous MLM experience that have significant downlines."

To be blunt, rather than build their own network of consumers, their strategy is to steal them from other network marketing companies. A strategy that is contrary to the DSA's Code of Ethics and the DSA Proselyting Guidelines.

Trump Network Links Provided in the Correspondence:

• Definition of the MAB or the Trump Network's Marketer's Advisory Board
  teamwithbillionaire.com
• Definition of the EDG or the Trump Network Executive Diamond Group
  www.jointnt.com/stevenduffel
• Proof that this is connected to the official Trump Network Website
  www.trumpnetwork.com/stevenduffel

The above is very straight forward. No network marketing company, or group of persons within the company should attempt to get person(s) from another network marketing company to jump to the other company.

So what does all this mean? When it comes to Network Marketing, Donald Trump, You're fired"!

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

Trump Network Violates DSA Network Marketing Ethics is a post from: VoiceWind - Greg Loveless

Related posts:

1. Trump Network MAB Authorizes Unethical Proselyting of Arbonne Consultants
2. VoiceWind Policy on Arbonne Restructuring Chapter 11 Bankruptcy Posts
3. Bankruptcy Types & Arbonne Chapter 11 Restructuring

So we want to welcome the Arbone home office to a long list of thousands of readers.

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

VoiceWind.net Welcomes New Readers from Arbonne is a post from: VoiceWind - Greg Loveless

No related posts.

Our guiding principle at VoiceWind.net is to post only information that is true and factual and thus "informs the mind and the heart". Posts insulated from this principle are just noise and are not permitted.

This policy has been ahered to on all posts on the subject of Arbonne Restructuring through Chapter 11 Bankruptcy.

The following is taken from Steven Iwersen's book "Chasing Porcupines".

The Principle of the Broom:

"Every person has the right to receive direction and meaningful information that helps inform their decisions."
— Steven Iwersen, NSA from his book "Chasing Porcupines"

The Broom of Champions – Guidance:

1) Information: People need information. They need it in order to make decisions. They need it to inform their minds and their hearts with objective data that will shape their perspective. Information provides a starting point for reasonable dialogue; the lack of information starts the downward spiral of assumptions, rumor, misunderstanding and suspicion.
— Steven Iwersen, NSA from his book "Chasing Porcupines"

John Maxwell, who has spoken at Arbonne NTC says:

"People will be down on, what they are not up on."

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

VoiceWind Policy on Arbonne Restructuring Chapter 11 Bankruptcy Posts is a post from: VoiceWind - Greg Loveless

Related posts:

1. Trump Network MAB Authorizes Unethical Proselyting of Arbonne Consultants
2. Trump Network Violates DSA Network Marketing Ethics
3. Bankruptcy Types & Arbonne Chapter 11 Restructuring

Most people are not aware that there are seven types of bankruptcy. Only attornies and those who have experienced bankruptcy would know this.

The seven types of bankruyptcy are:

1. Chapter 7: For individuals & businesses. A liquidation of assests.
2. Chapter 9: For municipalities.
3. Chapter 11: For individuals & businesses. A restructuring of debt.
4. Chapter 12 (a&b): For family farmers and fisherman.
5. Chapter 13 (a&b): For individuals with regular income.

What is bankruptcy:
Bankruptcy allows a debtor who is unable to pay creditors to divide up assets among creditors.

The purpose of the bankruptcy process is to make sure all creditors are treated equally and that creditors cease all collection efforts.

Some bankruptcy procedures allow a debtor to remain in business. The increased cash flow from the restructuring allows the business to pay creditors.

When people think of bankruptcy it is usually Chapter 7 that they have in mind. In Chapter 7 all an individual's or a business' assets are liquidated and the funds are distributed to the creditors.

For example say a company had $25,000 in assets but owed $100,000 to creditors and was unable to make payment on this debt. Through Chapter 7 Bankruptcy the company's assets are sold off for $25,000. The creditors would then receive 25 cents on the dollar.

Arbonne Bankruptcy & Chapter 11 Restructuring:
Arbonne is NOT in Chapter 7 Bankruptcy. They are using Chapter 11. Chapter 11 is a restructuring of debt where the debtor, in this case Arbonne, proposes a repayment plan or compensation plan to the creditors prior to filing Chapter 11 in court.

In Arbonne's case the creditors have agreed to exchange debt Arbonne owes them for a percentage of ownership in Arbonne.

Because the court filings began last week this means the creditors have already agreed to the prepackaged plan.

Now that court filing occurred it takes approximately 45 days for the process to be finalized.

For more and current information see my post on Arbonne Chapter 11 Bankruptcy & Restructuring Links.

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

Bankruptcy Types & Arbonne Chapter 11 Restructuring is a post from: VoiceWind - Greg Loveless

Related posts:

1. Arbonne Chapter 11 Bankruptcy & Restructuring Links
2. Arbonne Chapter 11 Impacts Business Builder Recruiting Ethic
3. Arbonne Completes Financial Restructuring through Chapter 11 Bankruptcy

My wife, ENVP Linda Loveless, has notified her team about the Arbonne Restructuring throughs Chapter 11 Bankruptcy. Since this process was initiated, Arbonne Corporate has been very timely and efficient in communicating the facts to the VPs.

My intent is to post information on this web site as it comes available. We will also address any miss information that is brought to our attention as well.

For all the post on the Arbonne Restructuring & Bankruptcy click here on the Arbonne Bankruptcy Category.

The links below provide the official information as of Friday, January 29th, 2010.

1. Arbonne Restructuring - Interview of Kay Napier, CEO of Arbonne
2. Letter to Our Valued Customers Regarding Arbonne Restructuring & Bankruptcy:
3. Frequently Asked Questions about the Arbonne Restructuring & Bankruptcy
4. Press Release Regarding Arbonne Restructuring & Bankruptcy:
5. Court Filings and Claims Information Regarding Arbonne Restructuring and Bankruptcy
6. Arbonne Blog & Consultant Comments on Arbonne Restructuring and Bankruptcy:
7. SEC Information about Chapter 11 Bankruptcy:
8. US Courts Information About Chapter 11 Bankruptcy:

As more information comes available, we will post it.

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

Arbonne Chapter 11 Bankruptcy & Restructuring Links is a post from: VoiceWind - Greg Loveless

Related posts:

1. Bankruptcy Types & Arbonne Chapter 11 Restructuring
2. Arbonne Chapter 11 Impacts Business Builder Recruiting Ethic
3. Arbonne Completes Financial Restructuring through Chapter 11 Bankruptcy

An example of how a shift in event sequence shifts ethical load is the simple process of purchasing something at a local store verses online. In the traditional process a customer goes to the store, visually inspects the product, they may even test the product before purchase. The customer then takes the product to the cashier and in exchange for payment the customer is allowed to walk out of the store with the item.

Because the sequence of payment and receipt of the product is simultaneous, the risk to the customer is limited. As a result the ethical load in the event, and on those connected to the event is also limited.

But shift this sequence and/or delay an event in the sequence, and the ethical load shifts.

When a customer purchases product over the internet, there is a delay between the payment and the receipt of the product. This shift in the sequence shifts the risk and thus the ethical load. The product may never be shipped. The product may not be what was advertised. The product may not work as the customer thought it would.

So in order to address the increased risk, additional safe guards are built into an online ordering system to deal with the shift in ethical load caused by the shift of event sequence.

Using this as a guide, lets apply this to the ethics of building an Arbonne business.

Ethics of the Arbonne Traditional Business Building Sequence:
In the Arbonne traditional business building systems of Group Presentations and One-on-Ones, as a new Consultant does presentations the Sponsor receives a commission of these sales. The Sponsor is only compensated when the new Consultant is successful. 

The sequence of events in this process is so important to the "Culture of Arbonne" that during Arbonne Opportunity Presentations, in EOA stories, in Blogs and in published trainings, Consultants often use the following quote:

"We become successful when we make you successful."

This statement is directly connected to the ethical sequencing of events in the Group Presentation and One-on-One systems. Only as the new Consultant has success selling product is her Sponsor compensated. Thus the sequence of events in Arbonne's traditional business building system not only makes this an accurate statement, but substatiates the truth of the ethic.

Arbonne Results Approach Sequence Shift, Althers Ethic:
In the Arbonne Results Approach a new Consultant purchases Result Kits. These Kits are then dropped off to potential clients and business builders so they can use the product. At first glance this simple change in the process would appear to be insignificant. But a closer look reveals it drastically shifts the ethical load.

Arbonne's Traditional Business Building System Group Presentations & One-on-Ones
Sponsor signs up new Consultant for $109.	New Consultant books Presentations	New Consultant holds Presentations	Sponsor & New Consultant become successful & both earn income.
This chart shows the traditional business building process where the Sponsor signs up the new Consultant, helps him/her book and hold the presentations. Only after the Sponsor helps the new Consultant through steps one, two and three and the new Consultant becomes successful, is Sponsor compensated.

Arbonne's Results Business Building System Results Approach
Sponsor signs up new Consultant for $109 plus Result Kits. Sponsor gets paid on income from Result Kits.	New Consultant books Presentations	New Consultant holds Presentations	New Consultant becomes successful & earns income from sales.
This chart shows how the purchase of Result Kits at sign-up allows the Sponsor to be compensated before the new Consultant is successful. This shift in sequence causes a delay between sign-up (red arrow) and the success of the new Consultant (green arrow). This shift and subsequent delay shifts the ethical load. What fills this void in this delay?

Results Approach Training:
The following is taken from a Results Approach training:

1. Sign Up:  $109 U.S. Consultant Registration Fee
2. Place Order: Personal Product & Business Tools (2, 4, 6 or 8 kits)
3. Set Up Auto Ship: Minimum $150 RV/QV For Active Status

Notice that Step #2 has both "Personal" & "Business Tools" in the order. That is because in order for a new Consultant to start her business using the Results Approach, she must purchase Result Kits. Since Result Kits are comprised of RE9 sets the Result Kits have retail volume attached to them. So at the moment these Result Kits are purchased by the new Consultant, the Sponsor is paid on this volume just as if they had been sold to a client.

An even greater issue is the Sponsor gets paid on the volume from these Result Kits even if the new Consultant can never move the kits or create volume sales them. So this "simple" shift in sequence" changes everything.

This shift is similar to what happens in the shopping example above. When the time span between payment and the delivery of the product shifts creating a delay, this also shifts the risk and the ethical load. As a result additional procedures are implemented to provide legal safe guards and realign the risk and thus the ethical load.

Ethical Shift Impacts "Ends" Verses "Means to an End":
In Arbonne's traditional system, because the Sponsor is only compensated as the new Consultant becomes successful, this forces the Sponsor to treat the new Consultant as an "ends in themselves".

But in the Results Approach, because the compensation comes before the new Consultant is successful, this shift in sequence allows the Sponsor to treat the new Consultant as a "means to an end".

As Immanuel Kant wrote:

"Act in such a way that you treat humanity, whether in your own person or in the person of any other, always at the same time as an end and never merely as a means to an end." (Kant, Immanuel; translated by James W. Ellington [1785] (1993). Grounding for the Metaphysics of Morals 3rd ed.. Hackett. pp. 30. ISBN 0-87220-166-x.) 

Safe Guards to Close the Ethical Void in the Results Approach:
In the store example above, when there is a change or a delay in the sequences and it increases the risk in the system, additional safe guards must be implemented to keep the process ethical. The same is true with the shift in sequences in the Results Approach. The delay in the sequence opens a void in the Results Approach that can shift events from ethical to unethical. As a result, safe guards must be implemented to close this void in order to keep the Results Approach ethical.

What safe guards would close this void?

1. 45 Day Money Back Guarantee
2. Buy back Result Kits (this is recommended by the DSA)
3. Result Kits Testers that are business building aids (this removes the retail volume from the Kits)

Let’s examine each of these.

45 Day Money Back Guarantee:
Some Sponsors actually attempt to use the 45 Day Money Back Guarantee to reduce the risk to the new Consultant. They tell new Consultants that if they cannot move the product within 45 days they can return it to Arbonne. The 45 Day Money Back Guarantee was intended to eliminate the risk to the consumer who was ordering online and receiving their product days later. If the product caused a reaction, this policy allows the customer a full refund. It was never intended to be used by Consultants to reduce their risk of building the business. To use the 45 Day Money Back Guarantee in this way is unethical. Thus this is not a viable solution.

Buy back Result Kits (this is recommended by the DSA):
Another way to resolve this risk is for the Sponsor to offer to buy back the Result Kits if the new Consultant cannot sell them or generate sells with them. But this creates such a huge upfront financial exposure to the Sponsor that it makes building the business via the Results Approach too risky. As a result, those Consultants who use the Results Approach withhold this option which is very interesting. If the Results Approach is as good a business building system as the proponents claim it is, then they should not hesitate to offer this. The reason they don't is because it would be too difficult to sign up new Consultants if they are exposed for the total dollar amount of the Result Kits.

An interesting fact about the buy back is, the DSA recommends this procedure to prevent pyramid scheme and protect prospects from this risk. Why? Because the buy back process places the Sponsor at risk rather than the new Consultant. As a result the Sponsor will be less inclined to push the new Consultant into purchasing product that according to the averages cannot be moved. See my posts on this topic at:

1. The Ethical Dilemma Caused by the Arbonne Results Approach
2. Options to Make the Arbonne Results Approach Ethically Viable
3. Ethical & Unethical Use of the Arbonne Results Approach

Result Kits Testers that are business building aids (this removes the retail volume from the Kits):
The final option is the only ethically viable one. To offer Result Kits that have no retail volume attached to them. This way when a new Consultant is signed up and places their personal and business tool order, the Sponsor would not be compensated at that moment in time. The Sponsor would only be compensated when the kits are sold to clients or clients order their own product.

This would eliminate the temptation for Sponsors to have their new Consultants front load. With no retail volume attached to the Result Approach Testers, there is no compensation, and thus no incentive to push Result Kits.

In addition to the above, the elimination of compensation also takes away the incentive to treat New Consultants as a means to an end (retail volume) rather than as an ends in themselves (a potential business builder the Sponsor will be paid on as the Sponsor trains the new Consultant to be successful).

Unlike the DSA's buy back procedure, the "Testers", rather than being a safety fall back procedure, totally elimnates the possibility of up front loading. Here, for the first time those who use the Results Approach could say, "we become successful, when we make you successful" and this would be a true and accurate statement 100% of the time. Only here can the Results Approach treat all as an Ends rather than a Means to an End. In this the Results Approach is finally ethically pure.  

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

Arbonne Results Approach Alters Business Building Ethic is a post from: VoiceWind - Greg Loveless

Related posts:

1. The Ethical Dilemma Caused by the Arbonne Results Approach
2. Options to Make the Arbonne Results Approach Ethically Viable
3. Arbonne Chapter 11 Impacts Business Builder Recruiting Ethic

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 16^th 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.

The Arbonne Grinder and the DM-2-AM Abyss is a post from: VoiceWind - Greg Loveless

Related posts:

1. Summary and Conclusion – Arbonne Results Approach Analysis
2. Glossary of Arbonne Terms
3. Results Approach Temporary Balloon Effect on Existing Networks

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.
6. There is no way to know if the products on Ebay have been kept in a controlled environment to protect the ingredients.
7. There is no way to know if the products are full containers.
8. There is no way to know if these have been used as testers.
9. Numerous items listed on the web site referenced by Stewart are discontinued items which means they are very old.
10. In some cases these items are so old that they have not been sold by Arbonne for over two years.
11. 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.
12. According to the Arbonne Policies and Procedures front loading of product is not allowed.
13. The fact that Ex-Arbonne Consultants have extra stock indicates they built their business by front loading.
14. Front loading is not necessary when building an Arbonne business using group presentations or what some call the party method.
15. 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

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

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

These items were discontinued as of last April 2009:

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.

Is Arbonne a Scam Asks www.skincarescams.com is a post from: VoiceWind - Greg Loveless

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