Arbonne is Bankrupt – What to Do Now?

As of January 2010 the tumbling economy sent Arbonne bankrupt. $800 million in debt. The network marketing giant has taken a crushing blow. It came as a shock for the members of the long time Jakarta Globe. The obvious effects of the economic decline has made it very difficult for people to survive in any MLM, even one as successful as Arbonne.
The rate of attrition in most businesses that cater to people’s desires rather than necessities make it very difficult to maintain a business. Unfortunately, Arbonne found it difficult to rise above the failure of customers and distributors leaving their program.
Recovery is possible, but is it likely? If Arbonne does pull through, it will be 85% bank owned. This doesn’t necessarily mean failure but definitely means giving the heads of the company a much shorter leash. It is hard to speculate what truly sent Arbonne bankrupt, but the changes made in this reorganization lead you to believe it may have been a culmination of many small and a few larger issues.
While the effects of bankruptcy may not trickle all the way down to the bottom levels and some distributors may not be affected as badly, those who are high in the company may want to start looking for safe exit plans. This isn’t to say that the company won’t be able to tread their way back to calm waters, but it may have to do so while losing the support of some of its distributors. Many distributors will still smile and hold their heads high though, some even playing the glass is half full attitude saying the bankruptcy is necessary to build a stronger Investment Banking People Moves. Last time I checked, having massive amounts of unmanageable debt is not a widely recognized strategy for business growth and success.
I think it would be a wise move as an Arbonne distributor to consider expanding your network marketing efforts. Maybe join another up and coming MLM or even consider a different direction. With the frail stature of the company’s financial standing, your livelihood may very well be at risk. Treat your network marketing efforts like you do your stock portfolio. Diversify. Putting all of your eggs in one basket is never a wise investment decision. Even as a die hard Arbonne distributor, you should consider getting out there and checking out your options.

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