Beautycounter is directing its former distributors to join Arbonne, a rival multi-level marketing company, following its own sale and restructuring. An email circulated to Beautycounter leaders on May 8th stated the company had contacted Arbonne’s CEO to offer distributors an opportunity to “softly land” with the established B-corp. This move contradicts earlier suggestions that Beautycounter itself would relaunch its direct sales program.
The arrangement implies a behind-the-scenes agreement between the two companies. Beautycounter terminated its independent contractors last month. This action came after the company was sold to a third party, later revealed to be its former CEO, Gregg Renfrew. At the time of the sale announcement, Beautycounter’s website displayed a message indicating a new company was in development and would return later in the year with familiar products.
This communication created an expectation among distributors that they would have a chance to rejoin a revived Beautycounter. The subsequent redirection to Arbonne appears to diverge from that implied promise. An information session for Beautycounter’s Managing Directors and Executive Directors was scheduled for May 8th, where details of the Arbonne opportunity were likely shared.
ScamTelegraph previously reviewed Arbonne in 2014, noting its compensation plan while raising concerns about its emphasis on retail sales. Arbonne also experienced a data breach in 2020, exposing the personal details of over three thousand distributors. The specifics of any financial arrangement between Beautycounter and Arbonne remain undisclosed, but the nature of the transfer suggests a coordinated effort to transition Beautycounter’s sales force.
Distributors seeking further information on the Arbonne opportunity can contact Arbonne directly. Beautycounter has not yet provided a concrete timeline for its own relaunch, leaving former contractors to decide whether to pursue the Arbonne offer or await potential future developments from their original company.