Do you know that Arbonne is a competitor of Amway? Now, how do they compare in their details, managers, position among the top 100 MLMs, products, number of countries where they do business, business models, annual sales, pros and cons, legal issues, and our views of them?
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Let’s dive in and find out.
Year of creation / Number of years of companies and other details
Arbonne was founded in 1980 in Orem, Utah.
For 10 years (1965 to 1975), one Peter worked in the cosmetics industry. He became disillusioned with the products being manufactured, citing the fact that they damaged the skin and were also unhealthy.
Peter then moved to Switzerland where he linked forces with one Pierre Bottiglieri to come up with something better.
Two different stories are circulating about how his line of products came into being.
The first claims that Peter and Pierre Bottiglieri invented cosmetics that were made with no animals or petroleum. Besides, they were safe for both the body and the environment.
The second story however goes that the two gentlemen bought the formula from Pierre’s former employer called Laboratoires Cosmétiques Arval. Then they rebranded it as their own.
We don’t know for sure which of the two stories the true one is but that doesn’t matter so far as we know that the end product is a safe line of cosmetics and works for users.
Arbonne became so successful that at one point they had 1.8 million independent consultants working for them. However we couldn’t get the current numbers at the time of the writing of this review.
One noteworthy fact is that Arbonne founded a non-profit called Arbonne Charitable Foundation to support the development of self-esteem and confidence among teenage girls and boys.
AMWAY BUSINESS AND AMWAY BUSINESS OPPORTUNITY
Amway was founded in 1959.
Eager to make their very own product to sell, the founders hired a scientist from Chicago to design an all-purpose cleaner for them. As they were satisfied with the product, they bought out the rights and named it Liquid Organic Cleaner or LOC for short.
Then, the company entered into a contract with Atco manufacturing to make their product for them. As time went by the founders acquired 50% stock in Atco and changed the name to Amway Manufacturing Corporation.
From then they started their expansion into other countries. This move was not only wise but it also proved to be successful. For it made Amway one of the most prosperous MLM companies in the world. It was so successful that it actually became number one on the list of top MLM companies!
On top of that achievement, the company diversified their product lines too. It wasn’t long before they had established ones like household artistry, cleaners, cosmetics, epring, Nutrilite, and XS under many different divisions.
Amway is a sponsor of many different commercial entities. The DeVos family even owns the Orlando Magic who play their games at no other place than the Amway Arena!
Sponsorships are not their only cup of tea. Amway also takes an active part in politics. In that wise, they support the Republican Party. And they have even had a distributor back in 1994, Sue Myrick.
Amway are very Christian in their ways. That’s why they use biblical quotes in many of their training sessions. Imagine that one of the company’s main mottos is, “Christian Morality and free enterprise!”
Those who want to work with them must know that they are very set in their ways. For which reason you must share their values and ideals to really be able to excel in the company. Despite that, a determined person could become very successful with Amway as they are set up for success!
Founder(s) and/or Director(s) of the company
The company was founded in Orem, Utah, by a Norwegian entrepreneur called Peter Mork. And they are now located in their headquarters in Irvine, California.
Amway, based out of Ada, Michigan, was created by Richard DeVos and Jay Van Andel.
The two gentlemen have an interesting story.
Friends and business partners since childhood, they first got into the line of selling products through Nutrilite, a company they founded together.
Beginning as distributors themselves for this company, they managed to build up a force of over 50000 distributors.
Richard DeVos and Jay Van Andel introduced the multi-level marketing concept of commissions. In that wise, they gave profits from sales to their distributors and also distributed a piece of the distributors’ sales below them in the pyramid.
In 1959 they changed the name of the company to American Way or Amway for short.
Position among top 100 MLM companies in the world
Arbonne International can be found at number 38 on the list of the top 100 multi-level companies in the world.
AMWAY BUSINESS AND AMWAY BUSINESS OPPORTUNITY
This is the number one rated multi-level marketing company in the business.
Products and/or services offered
Cleansers, exfoliants, moisturizers, nutritional supplements, and sunscreens form the Arbonne products list.
According to the company their products are exclusive, created and made in-house and distributed from their very own distribution centers.
As for research and creation, they are done at the company-owned Arbonne Institute of Research and Development based in Switzerland. But they manufacture them statewide.
On every Arbonne product you will find labels which declare them cruelty free, animal-free, vegan, kosher, and BSCG-certified. In addition, the company claims their products are all-natural and harmless to the body.
The designing, manufacturing and selling of their very first product called LOC was what launched Amway.
But they did not stop with what they had started with.
Avon added new products to their line. Soon they grew it into one of the most successful product lines of wholesale products available anywhere in the world.
No wonder it didn’t take long for them to have a lock on the market. They still enjoy this upper hand up to this day.
Today, the company boasts over 450 different products in their portfolio. They are all made all over the world.
In Wikipedia we find that, “Amway brands include Artistry, Atmosphere, Body Blends, Bodykey, Body Works, Clear Now, eSpring, Glister, and iCook.”
Others are “Legacy of Clean, Nutrilite, Peter Island, Perfect Empowered Drinking Water, Personal Accents, Ribbon, Satinique, Artistry Men and XS.”
The company still also has all of the original products in addition to the company of Nutrilite as it has gone on to be a force all by itself in the MLM niche.
Number of countries in which the companies do business
Arbonne does business in Australia, Canada, New Zealand, Poland, and the United States.
Their home market well mastered, Amway began to expand into foreign ones. This strategy soon made them one of the most successful MLM companies in the world. They even actually became number one!
Business model / Compensation plan
Anybody wishing to join Arbonne is required to purchase a starter kit for $79.00. According to the company this is all you need to invest to get started with them.
The kit includes a starter guide and product samples.
There is a yearly renewal fee. Unfortunately, we have no info on how much that costs.
The company privileges the sales of its products. Then while you are recruiting new customers, you will also be adding new distributors to your downline.
Amway gives its members a helping hand to start their own personal online stores. We could not find any information on who pays for that personal online store. But we hope it is supplied by the company. If that is not the case, this could get expensive.
Now you recruit customers who will order products from you. You will then receive 35 to 50 percent off of the products you order. Commission checks for any sales in your downline will also be yours.
It should not be ruled out that some of your customers will also want to become distributors like you.
The numbers on how many of their distributors make money and how much they make are not encouraging at all. Imagine that 4.1 percent earn over $300.00 a year, but a huge 83% gain nothing at all!
For people familiar with MLMs, these figures are normal for most MLM programs. That’s why it takes a real go-getter to make money in this kind of work.
As you can see, this business is not for everyone. Those who do make a good living doing this are sadly in the minority.
However, Arbonne operates a free Mercedes car program. But if we are to go by what we have read about it, unless you are a top earner you’d better stay clear of this perk.
In terms of the business plan or the compensation model, Amway operates just like most MLM companies. They pay for both direct sales and for recruiting new distributors known as Independent Business Owners or IBO’s for short.
Amway pays on several levels including sales performance bonuses and incentives.
The company has several companies under its chief brand. Because of this Amway’s IBOs have access to different marketing strategies. For this reason, they can get into individual circles for each subdivision and create a downline over and over. This increases the potential for no cap profits.
Amway also takes out insurance for their distributors plus all kinds of sales incentives.
The company also offers many different online and live training sessions.
IBOs can attend conventions the company organizes all over the world.
It displays an annual turnover of 541 million dollars.
Amway shows revenue of 8.8 billion dollars.
Pros and cons
- Well established and respected company
- Cheap start-up cost
- Your own online store
- Great products
- Affordable product prices
- Safe products for both the environment and people
- Association with a nonprofit called Arbonne Charitable Foundation for teenage girls and boys
- Hard to make money
- Many pending lawsuits
- Many recalls of their products
- Lack of information on their business model
- Not too much worry about stability with them.
- Mostly outstanding product quality.
- High Better Business Bureau rating.
- Most well-established network marketing company
- Offers top-notch training materials for their IBOs.
- Offers top-notch events for their IBOs.
- Reputation is all but in the crapper.
- Target of numerous FTC investigations over the decades.
- IBOs are heavily pressured to buy more products for personal use.
- IBOs are heavily pressured to sell products like crazy.
- The over-the-top Amway meetings and cult-like culture turns many people off.
Bans / Complaints / Legal issues
We found no pending lawsuits and recalls about this company.
None to report for this company too.
Our view of / take on the company
Arbonne is a legitimate company with a good product but we had a hard time with it.
The company does have some areas of concern. These concern pending lawsuits and recalls. Moreover, many of its distributors lack profits.
However it can be said in favor of the company that they have put a good business plan in place for experienced marketers. They also do propose a very affordable start-up cost on top of great discounts.
These makes Arbonne very attractive for many of the hard-hitting marketers looking for a good MLM company to work with.
We have to mention another concern though. It is about the lack of information on any hidden costs that we could not find. But the company assures there is no such thing. So we have no choice but to give them the benefit of the doubt.
In conclusion, we have to give Arbonne a thumbs up for the experienced marketer for reasons already given above. But for the beginners it has to be a thumbs down as companies like this tend to work against the success of such people.
Unlike Arbonne, we found good things about Amway.
Our own experience with using their products growing up is something to shout on the mountain tops about. And then having a very highly successful Amway independent business owner as a next door neighbor cannot but all make us give this multi-level marketing program a huge thumbs up!
As we said above, we know firsthand how the products work and how eco-friendly they are. We also witnessed how much our neighbor was all the tome flying off on trips and business ventures here and there. What else do we need to assure you that Amway and its products are good?
The product line of the Amway company is great. Moreover, they back their distributors better than any other MLM company we know of does. It’s justice done that they hold the number one spot on the most successful MLM companies in the world.
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