A former employee of Arbonne, a multi-level marketing company (MLM), has revealed that they lost money while employed at the company.
London-based Charlotte Dickerson became a representative for Arbonne in May 2019, which sells vegan skincare and wellness products.
“When I first heard about it I thought this sounds like a lovely thing to do,” she told City News.
“[But] I put in so much effort and I lost money.”
Ms Dickerson claims that the setup of Arbonne required representatives to buy the product before selling it on.
The company also promoted an attitude of “toxic positivity.”
“There is a sort of dark undertone of no negative thoughts or emotions allowed,” she said.
“At the time, Arbonne really affected my mental health and I felt like I couldn’t bring it up to anyone.”
City News contacted Arbonne for a statement but they declined to comment.
Positive experiences in multi-level marketing
Ms Dickerson is not alone in having a negative experience with multi-level marketing companies.
According to research from the Federal Trade Commission , 99.6% of people who join MLMs result in losing money.
However, Valentus representative Shannon Cant claims to have had a positive experience while working for an MLM.
“I’ve never invested any of my own money into the business.
“Within my first week I had my fourth promotion in the company… I made over £400,” she said.
“It’s not luck that’s got me into that position, it’s hard work and dedication.”
Pyramid Scheme?
Representatives of MLM companies must recruit other employees to become part of their “downline”.
This means that they will receive a commission on any sales that those in their “downline” have made.
As such, many have been found to be closely related to “pyramid schemes”.
In February, clothing brand LuLuRoe were required to pay £3.4m , after being accused of being a “pyramid scheme.”
But Direct Selling Education Foundation member Dr Derek Hassay said that the practice is “legitimate and legal.”
“It is very common practice in business today.”
Submitted Article
Headline Short Headline Standfirst
Published Article
Headline Multi-Level Marketing: ‘I put in so much effort and I lost money’Short Headline Multi-Level Marketing: 'I lost money'Standfirst London-based Charlotte Dickerson started working for Arbonne and claims to have left with less money than she started with.
A former employee of Arbonne, a multi-level marketing company (MLM), has revealed that they lost money while employed at the company.
London-based Charlotte Dickerson became a representative for Arbonne in May 2019, which sells vegan skincare and wellness products.
“When I first heard about it I thought this sounds like a lovely thing to do,” she told City News.
“[But] I put in so much effort and I lost money.”
Ms Dickerson claims that the setup of Arbonne required representatives to buy the product before selling it on.
The company also promoted an attitude of “toxic positivity.”
“There is a sort of dark undertone of no negative thoughts or emotions allowed,” she said.
“At the time, Arbonne really affected my mental health and I felt like I couldn’t bring it up to anyone.”
City News contacted Arbonne for a statement but they declined to comment.
Positive experiences in multi-level marketing
Ms Dickerson is not alone in having a negative experience with multi-level marketing companies.
According to research from the Federal Trade Commission , 99.6% of people who join MLMs result in losing money.
However, Valentus representative Shannon Cant claims to have had a positive experience while working for an MLM.
“I’ve never invested any of my own money into the business.
“Within my first week I had my fourth promotion in the company… I made over £400,” she said.
“It’s not luck that’s got me into that position, it’s hard work and dedication.”
Pyramid Scheme?
Representatives of MLM companies must recruit other employees to become part of their “downline”.
This means that they will receive a commission on any sales that those in their “downline” have made.
As such, many have been found to be closely related to “pyramid schemes”.
In February, clothing brand LuLuRoe were required to pay £3.4m , after being accused of being a “pyramid scheme.”
But Direct Selling Education Foundation member Dr Derek Hassay said that the practice is “legitimate and legal.”
“It is very common practice in business today.”
