Arbonne bankruptcy: an insider’s view

I just found out about the Arbonne bankruptcy and the news makes me very sad. I was a devoted Arbonne representative for 3 years and I have nothing but wonderful things to say about the company, the leadership, and the Arbonne products that, by the way, I still use.

As a former insider, I’d like to give my opinion on what could have gone wrong. History can play an important role in helping us choose the right path for our future, and this information can provide insight for those looking for a home business.

While representing Arbonne, I made the most amazing friendships, participated in great personal growth, and had a lot of fun attending conventions and meetings with other loving and like-minded women. So why, you wonder, would he ever leave such a great company?

Simply put, I was creating a lot more debt with this business than income. Which brings me to the Arbonne bankruptcy issue.

I think the underlying issues that caused me to walk away from my business can also be attributed to the Arbonne bankruptcy issue.

1. Yes, you get what you pay for. Arbonne products are premium quality, produce visible results, and have health benefits that are admirable to say the least. Unfortunately, the products are very expensive. My personal experience was that many potential customers were unable or unwilling to pay the price for high quality. Fast forward to this very moment in time, where many are forced to cut the luxuries from their budgets. Yes, we all want to look our best, but when it comes down to it, there are higher priorities that demand our financial resources.
2. Arbonne’s main marketing plan incorporates the use of house parties. Yes, many are successful at making these parties and I am sure there are some people who enjoy this kind of thing, but it is hard to sell. Arbonne’s bankruptcy may well have been hastened by the fact that people just don’t have much free time and they don’t want to feel pressured to spend money they wouldn’t otherwise spend.
3. Arbonne products are consumables, which is one of the qualities they rely on to increase sales. When you run out of eye cream, you buy more, right? Another selling feature of these products is that they last a long time. Arbonne’s flagship product, the anti-aging skincare set will last six months when used twice a day. From an Arbonne consultant’s point of view, the downfall of this is that repeat sales don’t happen often. If you don’t have a large customer base or, better yet, a huge downline with a large customer base, it’s hard to make a good deal of money.
4. The minimum autoship order for Arbonne consultants is $ 100 per month. For those who are not making a lot of sales, this can result in a financial burden and excessive inventory of product that has a fairly short shelf life. This is possibly one of the main reasons for the high churn rate that has been a factor in Arbonne’s bankruptcy.

I am not criticizing Arbonne and I will repeat, I love the Company, the leadership and its products. Company President Rita Davenport has made a public statement to Arbonne consultants assuring them that the company is strong and that Arbonne’s bankruptcy will ultimately make the company stronger.

I really hope this is an accurate description of the future of Arbonne. Only time will tell.