The Arbonne Compensation Plan

Arbonne’s compensation plan is a single-level, tiered compensation plan similar to Herbalife International’s. So, let’s dig in and see how this compensation plan works. So what does unilevel mean? A unilevel compensation plan simply means that everyone you personally sponsor or enroll in the Arbitron business must be included in your first generation of Arbonne Consultants. People who in turn enroll in the Arbitron business would be placed in their first generation, and therefore their second generation, and so on.

When you sign on as an Arbonne consultant, there are two types of income: retail profit and additional income. Retail profit is very simple, you buy products at a 35% discount and brand them and sell them at a 35% profit. Overwriting revenue is a bit trickier, but it’s basically the revenue earned from the business volume generated by the people in your downline organization.

We are not going to go into all the details of the Arbonne compensation plan but its general concept. He has four different levels of achievement: District Manager, Area Manager, Regional Vice President, and National Vice President.

The drawback of a ladder rung break compensation plan is best explained through an example. Let’s say you work hard and achieve Area Manager status and you continue to work with your leaders and one of them achieves the same status as you. So what happens? You need a certain amount of sales volume to become an Area Manager. The problem with the breakout compensation plan is that when someone reaches your level, they won’t be compensated for some or all of that sales volume. It is actually a punishment for developing leadership. So, as a leader, you are always afraid that someone will reach your status or worse, pass it on to you.

Personally, I think you should always be paid for the business you helped bring to the company, whether anyone overlooked it or not. So why are so many companies using this compensation model? The simple answer is how the company keeps Consultants “with their feet on the fire” so that it always has to be producing new business and new leaders.

The challenge is that if you are excellent at developing leadership that reaches your status level or above, you will experience a drastic reduction in your personal income. This is one of the main reasons why people who have achieved National Executive Vice President status with Arbonne leave the company suddenly.

So if you’re going to build a home-based business, you need to be very, very cautious when choosing your company to ensure that you won’t be penalized for developing leadership. You should never be afraid that someone will have the same success as you.

A friend of mine was in a similar compensation plan and made millions with his company, but in the end he lost his house. Today, after looking at over 42 companies, he found a business that makes sense, products that make sense, prices on those products that make sense, and where you are not penalized for developing leadership and where you now enjoy a very reliable monthly residual income.