The Arbonne Compensation Plan is a tiered break compensation plan similar to that of Herbalife International. So let’s dive in and see how this compensation plan works. So what does unilevel mean? A one-tier compensation plan simply means that everyone you personally sponsor or enroll in the Arbitron business must be part of your first generation of our Arbonne Consultants. People who, in turn, enroll in the Arbitron business would be placed in its first generation and therefore in its second generation and so on.
When you join Arbonne as a consultant, there are two types of income: retail earnings and additional income. Retail profit is very straightforward, you buy 35% off products and brand and sell them for a 35% profit. Overwrite income is a bit more complicated, but it is basically the income earned from the turnover generated by the people in your downstream organization.
We are not going to go into all the details of the Arbonne compensation plan, but rather the general concept. You have four different levels of achievement: district manager, area manager, regional vice president, and national vice president.
The downside of a rung break compensation plan is best explained by 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 breakaway compensation plan is that when someone reaches your level, you will not be compensated for some or all of that sales volume. Actually, it is a punishment for developing leadership. So, as a leader, you are always afraid that someone will achieve your status or worse, that you will pass your status.
Personally, I believe that you should always be paid for the volume of business that you helped bring into the company, whether someone skips it or not. So why do so many companies use this compensation model? The simple answer is how the company keeps Consultants “on fire” so that you always have 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 higher, 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 at Arbonne suddenly leave the company.
Therefore, if you are going to build a business from home, you need to be very, very careful when choosing your company to ensure that you will not be penalized for developing leadership. You should never be afraid that someone will be as successful as you.
A friend of mine was on a similar compensation plan and made millions from his company, but ultimately lost his home. Today, after examining more than 42 companies, he found a business that makes sense, products that make sense, prices of those products that make sense, and where you are not penalized for developing leadership and where you now enjoy very reliable monthly residual income. .