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There is a myth out there that MLMs are pyramid schemes.  Whether through misinformation or from people who have not had success (usually from a lack of effort on their part), this myth gets thrown around and spread like wildfire.  No legitimate network marketing company is a pyramid scheme.  Let’s break this down so you have a better understanding of the differences.

First, a pyramid scheme is illegal.  You cannot legally operate one and, if it is discovered you are operating one, you will be prosecuted.  Legitimate businesses, like Arbonne, would not be able to survive for 40 years if this were the case. 

Second, a pyramid scheme operates with an emphasis on recruitment.  The idea is that you get paid by recruiting “investors” into your company by getting a portion of their “investment”.  There is no real emphasis on sales of tangible products or services.  Because of this, no one moves above the person above them and eventually the recruits run out leaving the bottom levels broke. 

Legitimate MLMs, or network marketing companies, are based on sales.  While the set up appears similar to a pyramid when you are building a team, all of your pay comes from the sale of products.  An MLM, according to the government, sells products or services through person-to-person sales.  If the MLM is NOT a pyramid scheme then it will pay you based on your sales to customers without having to recruit.  As I have mentioned before, you can make a small side income just from your sales with no recruiting with Arbonne.  Our pay is based purely on sales.

Now, can you make more by recruiting a team?  Yes.  But, again, this is still based on sales.  Your team members are each at the top of their own business.  They make the same amount you do on their individual sales and the company pays you a small percentage based on their sales as well.  The amount you earn on their sales does not affect their pay in any way.  In this way, every person has the potential to build their business to whatever level they want and even surpass the person that recruited them.  That can’t really be done in an actual pyramid scheme. 

At Arbonne, we are trained and told by the company to never make grandiose claims of income and to always provide the Independent Consultant Earnings Statement at earnings.arbonne.com for everyone’s perusal.  If you come across a consultant that is making these kinds of claims or using high-pressure sales tactics, please let Arbonne know here: Contact B.E.S.T.  You can also view our policies, the DSA code of ethics we follow,

Arbonne is a proud member of the Direct Selling Association and we are committed to the highest standards of ethical behavior.  Consultants who don’t care or are unethical ruin it for the rest of us and lead to those claims by others that we are part of a pyramid scheme or are pushy salespeople.  So, please, if you become aware of any unapproved claims related to our products, the business opportunity, or are concerned by the actions of a consultant, then contact B.E.S.T. (Business Ethics Standards Team) at the site I listed above.