Arbonne International Review

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					?Here is a company that is one of the giants of the MLM business world. Arbonne
International has been around since 1980 and specializes in skin care products of the
highest quality. All of Arbonne International's products are researched and developed
in Switzerland and then manufactured to the highest standards in the US. The
products range from those meant for teenagers to others meant for adults to maintain,
enhance and freshen skin. But, let us reflect on the marketing of the products now.

Every company ultimately relies very heavily on its products being top of the line and
useful to the product's consumers. This is the only way of maintaining sustainable
demand in any market. Within the cosmetics and skincare market however, the
competition is quite cut-throat. So what is MLM, and why does a company with a
successful range of products have to use this method of marketing instead of retail?

Multi- level marketing is a model of marketing that relies on individual consumers
liking a product enough, to go on and introduce the product to friends and colleagues.
Let's take for example a person ‘A' who acquires a product via MLM, and goes on to
use it and find it effective. That person then goes on to introduce the product to person
‘B', who also likes the product. Person ‘B' then goes on to introduce the product to
person ‘C'. This is the creation of a network and MLM relies on this effect of
recommendations. That though is only the first part. Person ‘A' may have along with
introducing the product to ‘B', also introduced the product to a great many other
people, and these people may have gone on to introduce the product to a greater
number of people - so, MLM relies on growth through a geometric pattern.

There is a business opportunity in all this referral, product introduction and network
growth. Person ‘A' would be directly compensated for any product purchased by ‘B',
at any point of time that ‘B' makes a purchase. ‘B' too would make a fee for any
product bought by ‘C' and for all products bought by ‘C' over time. However, ‘A'
would also benefit with a percentage fee from any product bought by ‘C' too. This is
called residual income. The sale of a product to ‘C' would also result in a fee being
paid to the person who introduced ‘A' in the first place (and in this manner - all the
way up the chain of introducers, up to a certain number of levels). Residual income is
the motivation that drives individuals to grow their networks.

The money to pay all these fees, commissions and residual income comes from the
money a company like Arbonne International saves by completely avoiding creation
of advertising content, and the running of promotion of that advertising content via
various media like television, radio and print. Normally, these costs are added on to
the price of a product, and the consumer pays for the cost of the advertising. In an
MLM business, the consumers of the product are compensated directly for the effort
and cost of advertising with revenue.

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