Bob Henry describes what he and his team have done to more than quadruple this company’s sales in just over two years.

When Bob Henry, along with a private equity firm, discovered Arbonne International, it was a company that had a significant amount of potential. “I felt the right management team could enhance this business with our collective knowledge and experience. I’ve been able to surround myself with wonderful people throughout my career, and it has enabled me to build a great team of very bright people,” said Henry, who had the privilege of being honored with the Orange County Entrepreneur of the Year award last year.

Arbonne had approximately $150 million in sales when Henry took the role of chairman and CEO in 2004. With a little time and a lot more investing, Henry and his team managed to more than quadruple the company’s sales in just over two years. “Our business is one that provides people opportunities, regardless of their education level, and we provide them the ability to achieve things that they ordinarily thought were not possible,” Henry said.

Founded more than 27 years ago, Arbonne International sells primarily skin care and other personal care beauty products. According to Henry, there are four elements required to having a successful network marketing business: an appealing compensation plan, a great product, the right demographics, and excellent training.

Bob Henry

Arbonne’s compensation plan enables people, on a full-time or part-time basis, to have the opportunity to achieve financial rewards and incentives. If consultants achieve a certain level, they can participate in a Mercedes-Benz incentive program in which Arbonne will reimburse them for the lease of a white Mercedes-Benz.

“As long as they continue to maintain certain performance levels, we give them a cash bonus to supplement their monthly payment,” Henry said. “We have more than 1,500 of these Mercedes-Benzes on the road. It has been very inspiring.”

Arbonne takes consultants who achieve certain performance levels on company-sponsored trips. This fall, the trip will be to the Atlantis Resort in the Bahamas. Last year, more than 1,800 consultants were treated to a cruise vacation on the Mexican Riviera. Top performing consultants also receive gifts on their birthdays and other holidays.

“I view the company, to some degree, as a personal development business disguised as a product company. We are very much into personal development. A lot of our folks are now able to get up in front of thousands of people for presentations and speeches. The most exciting thing is the success stories we hear from our consultants, some of whom come from difficult situations—a rough divorce, domestic violence, losing a job, etc.,” Henry said.

Sweet spot
Arbonne consultants are independent contractors who work out of their homes, and the company provides them the opportunity to start their business for as little as $29. To date, Arbonne has more than 1.3 million consultants. When Henry came on board in 2004, the company had less than 200,000 consultants.

One of Arbonne’s key strengths lies in the training it provides consultants. “We give hundreds of hours of training, free to anyone who joins Arbonne for $29,” Henry explained. “They can download hours of training pieces in audio and video format online and receive detailed information about our products and how to use them. We continue to spend money on training and all the tools that support our field,” he said.

The company typically holds one large meeting a year—this year’s annual meeting will host more than 17,000 consultants in Las Vegas. In addition, Arbonne holds two to three regional meetings each year. “That’s our sweet spot, training people, developing them, encouraging them, and watching them succeed.”

All-around upgrades
Arbonne’s dramatic growth has also been one of its biggest challenges. “It’s tough to upgrade our computer systems and facilities quick enough and find quality corporate people. We are very selective as to who joins our team,” Henry said.

Since Henry took the helm, he has invested in the company’s computer systems and distribution facilities, including the automation of the company’s existing Irvine, Calif.-based distribution center and warehouse.

To complement its growing business, Arbonne opened up a second fully automated distribution center in Indiana last year. The 208,000-square-foot facility handles 70% of the company’s orders in the US and Canada. According to Henry, 99% of Arbonne’s customers can receive their orders in three business days.

Henry upgraded Arbonne’s phone systems as well as its customer service. Customer service is available 12 hours a day, and representatives undergo a significant amount of training. “We give them two weeks of training, and they have to pass tests and qualify before joining the team. We’re constantly upgrading that program. It’s all about execution,” Henry said.

New territory
This year, Arbonne will be entering two international markets and will continue to expand every year for the next several years. “It will require a lot of effort. I’ve recruited a seasoned executive and built a team around him. We are in the process of doing everything that needs to be done to make sure we enter foreign markets in a very organized manner that complies with all the rules and regulations in each market. We’re going to be successful,” Henry concluded.