CABI Review – Is CABI A Pyramid Scheme & A Scam

Coffee TalkI’m TQ, a mom and owner of this successful Writing Business.
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CABI considers itself a company for women and by women.

Here’s what I notice, every mlm company that targets women seems to be very successful, especially in beauty products and clothing.

When I asked a few CABI stylist ladies, what makes them join CABI?

Well, not about making a lot of money.

They join because of this: the women are caring, confidence and fun to be with. Plus, the company cares about women’s success.

Maybe I am in a minority group of women who start a business for the purpose of making money.

This explains why CABI is so successful in targeting women stylists.

Most CABI stylists think when they spend $100 on clothing and receive $25 back, they just make $25 and look good.

NO ladies, your CABI business just lost $75.

When I asked, “Don’t you think CABI is a pyramid scheme and a scam?’

You want to know their answers. I got an ear full of bad stuff.

Hello and welcome to our mlm review Coffee Talk.

It smarts for you to stop by and read this CABI Review before joining the program.

If are researching to evaluate CABI as a business opportunity to build a life dream of financial freedom, then this review is written for you.

In this CABI review, you are going to find out the truth about the CABI home-based mlm business opportunity.

We will discuss:

  • The process to become a CABI Stylist.
  • The cost to join CABI.
  • How you make money with CABI?
  • We’ll look at the stylist income. And
  • Is CABI a pyramid scheme and a scam?

After reading this CABI review, you should be able to determine if CABI is a pyramid scheme or a profitable business opportunity for you to achieve your financial goals and dreams.

Please keep in mind that this business review is written based on my own experiences and opinions. I try to keep things fair and balanced in order to help you make the best investment decision.

I enjoy writing reviews of small business opportunities. I do not receive compensation or endorsement from the company that I review.

If you are looking for the best way to make money from home, check out the #1 home-based business opportunity which does not require recruiting or Face-to-Face selling.

CABI Review Executive Summary

Business Opportunity:
Multilevel-Marketing (MLM)

Initial Investments: $2,570

Annual Revenue: $225 Million

 Review and Analysis Summary:

  • CABI is a privately held mlm company that designs, manufactures, and sells women’s clothing.
  • CABI Stylists make money by conducting the home parties to sell CABI products and recruit stylists.
  • According to CABI, the company enjoys an 86% stylist retention rate. However, no one can confirm this figure because CABI refuses to release the income disclosure statement (IDS).
  • The company distributes its product through an mlm network of over 3,500 independent stylists in the U.S., Canada, and U.K.
  • When an mlm company refuses to release the income disclosure statement, it should be a warning for all stylists that CABI is hiding something. Maybe stylists are not making money.
  • To become a successful CABI stylist, you must have exceptional people and sales skills, especially Face-To-Face recruiting.
  • This mlm opportunity is not suitable for people with no sales experience.

There are other lucrative and inexpensive home-based business opportunities for you to compare and consider:
1 – My #1 Home Business Opportunity, or
2 – Affiliate Marketing.
Both do not require face-to-face recruiting and/or a monthly sales quota.

What Is CABI?

CABI, Carol Anderson by Invitation, is a multilevel marketing company that specializes in designing ad manufactures an exclusive line of women’s clothing.

CABI was founded in 2001 by a former Nordstrom designer, Carol Anderson, and 10 friends with the purpose to provide an opportunity for women to have an alternative career that’s relevant, liberating, and profitable.

CABI sells its products through an mlm network of over 3,300 active stylists operating in the US, U.K., and Canada.

CABI reported sales revenue of $225 million in 2018.

The company, however, does not publish the income disclosure statement. This financial document provides important financial information regarding the profits and losses of operating a CABI business.

From my review experiences, any mlm company that refuses to release the IDS is a Red Flag. This indicates the majority of stylists are not making money.

I strongly urge you to carefully consider and compare CABI with other home-based business opportunities before investing.

You can use The Best MLM Opportunity to make a comparison.

How To Become A CABI Stylist?

To become a stylist, you are required to meet with a local CABI Stylist.

If you don’t know your local stylist, you can visit the CABI website to request one.

The local stylist will be your sponsor and mentor to assist you with the process of launching your CABI business.

How Much Does It Cost To Become A CABI Stylist?

The cost to become a CABI stylist is $2,570, the cost for your season inventory.

Besides the initial investment, there are expenses to stay in business and receive the commissions.

CABI requires all Stylists to purchase a seasonal worth of products twice a year, the fall and spring, to remain as an active stylist.

This means a CABI stylist has to place an order of $2,570 every season, totaling $5,14 each year.

As you can see, the cost to join CABI is not $2,570. You must include the cost to stay active to make money with CABI.

CABI is a Pay and Play business opportunity. If you want to earn, you have to pay.

Any stylist that fails to order the season inventory is considered “non-active” and not allowed to receive the bonuses and commissions from CABI.

Remember, the expenses above do not include your time, the marketing costs, travel expenses, and gas.

The seasonal inventory expenses can destroy your business profit if you cannot resell the products. They become business losses.

Other home-based businesses, such as Affiliate Marketing, you earn the commission on every sale, no need to be active.

Do you know why CABI requires stylists to stay active?

Two reasons, to sell products and to avoid being classified as a pyramid scheme under the FTC guideline. (Check our discussion on the FTC MLM Guideline for more information.)

CABI Compensation Plan

The CABI compensation plan is an outline of the options for stylists to make money.

I’ll provide a quick analysis of the CABI compensation plan. To see it in detail, just download a copy.

As an mlm opportunity, CABI offers you two ways to earn: Sell Products and/or recruit stylists.

Make Money Selling CABI Clothing

CABI stylists can clothing from either inventory or direct customers to purchasing from the replicated website to earn a personal sales commission.

As a new CABI stylist, you start out at 20% commission. This commission increases to 25% when your personal sales volume reaches $800 a month.

You earn an additional 8%, to 33%, when you and your team total sales volume reaches $24,000.

The stylist can potentially make up to 35% of the commission on each sale.

This sounds easy, right?

I did a quick research online and found CABI women shirts selling as low as $10.

CABI products review

The lowest retail price for a shirt on the CABI website is $36.00 and the most expensive is $119.

Can you make money selling CABI clothing on the market?

It will be a challenge.

Overprice is the reason why stylists have a hard time to make money selling CABI clothing.

Make Money Recruiting CABI Stylists

When you cannot sell products, the only option to make money is building a team, recruiting stylists.

As long as you are active, here are your options to make money with CABI.

Before we discuss the override commissions, you need to know that CABI doesn’t pay the commission on the total order amount.

The commission is calculated based on Commissionable Volume (CV). The CV is points assigned to each product by CABI.

For example, a customer purchased ST. Regis Blouse for $119 with 68CV.

You are at the 20% commission level, which means you earn $13.60 (68CV x 20%), not $23.80 on the total amount.

So, on a $119 sale, your commission is 11.4%, not 20%.

I think you understand the commission scam here.

We can continue discussing the CABI compensation plan.

Team Commissions

You can earn between 2% to 8% of your group sales volume (GQV) up to 4 levels. Below is the breakdown of the commissions.

CABI pyramid team commissions

However, you do not receive the team commissions, until both you and your teams’ member each qualified, achieving $800 each month in sales volume.

There are other leadership bonuses and incentives which require more sales of CABI overpriced clothing to qualify. You can refer to the compensation plan
for more information.

As you can see, there are multiple ways to earn with CABI. But to get paid, you must remain active and qualified.

This is how mlm works. Ways to earn is not the same as qualifying to receive the money.

You can potentially earn nothing under the CABI compensation plan because the costs to maintain an active and qualified status might exceed the commissions received.

Can You Make Money With CABI?

You heard from CABI and CABI stylists these answers when asked, “Can I make money with CABI?

  • Stylists make $3,000 if they sell 70% of the inventory, and
  • The average annual income for stylists is $30,000.

Do you know where they get these numbers?

From the hypothetical
in the compensation plan.

CABI pyramid scheme incomes

CABI knows the compensation plan only provides a Potential Earning, not real income.

Read the disclaimer language, CABI knows these numbers are not real earnings.

To use the income hypothetical as real earnings, CABI is scamming people into joining the business opportunity.

To know the Stylists’ actual income, you need a copy of the income disclosure statement, which CABI refuses to release.

When an mlm company doesn’t publish the income disclosure and use a hypothetical income to promote its business, this should be a warning to every investor.

You don’t need a copy of CABI Income Disclosure to know that 99% of mlm businesses failed.

Why?

Because mlm compensation plans are not designed for stylists to make. They are designed for the CABI to make money.

Just go back and review the compensation plan requirements, and you’ll understand why stylists are the primary customers of CABI, not business partners.

But, where can you get a copy of the IDS?

You can request one at the time of enrollment. The law requires CABI to provide you a copy together with the compensation plan.

As a business review writer, I look to the actual incomes to advise clients on an investment.

If CABI refuses to provide you a copy of the income disclosure statement, don’t join. This is a sign of a scam.

Is CABI A Scam?

CABI is a business opportunity. Normally a business opportunity is not a scam.

However, CABI is different.

I say CABI is a scam for providing misleading information about stylists’ earnings and refuses to release the income disclosure statement to hide the truth.

Yes, every business has risks.

You are responsible to carefully research, study, and investigate CABI before becoming a stylist.

Reading this CABI Review is a good way to learn the risks and rewards associated with this mlm business opportunity.

Many entrepreneurs hire professional financial analysts to evaluate business profitability and loss before investing.

As the owner of an Online Business Review, I have evaluated hundreds of mlm businesses to help investors identified and managed the risks.

It is not easy to make money selling CABI. This is not a profitable business opportunity.

Is CABI A Pyramid Scheme?

Mlm companies are legit if they follow the FTC guideline.

CABI might be legit under the law, but I don’t invest based on the laws.

I look at the compensation plan to determine if an mlm is a pyramid scheme.

I say CABI is a pyramid scheme.

If you look at the CABI compensation plan, every season, stylists are forced to purchase overpriced clothing to earn the commission.

The only way to sell CABI products is by recruiting others to become a Stylist. The more people that you recruit, the more money you earn.

Stylists are the primary customers purchasing CABI clothing.

Well, you don’t have to agree with me.

But, based on this CABI Review, you must agree that the CABI is not a profitable business opportunity, and the compensation plan was designed to sell the company products, not for you to make money.

You will not get rich selling CABI clothing.

Is CABI Worth It?

If you join CABI to be friends with other women and to look good, then it might be worth it.

But if you are joining to make money, like a real business owner, then CABI is not worth it.

However, the decision to become a CABI stylist is yours to make.

Do you know why you want to start a business?

To make money, right?

And to make money, we invest in a PROFITABLE business!

There are much better and less risky home-based business opportunities compared to mlm opportunities.

I recommend you look at Affiliate Marketing.

As an affiliate marketer, there’s

  • No need to purchase a starter kit,
  • No Personal Volume (PV) requirement,
  • No face-to-face sales,
  • No recruiting, and
  • The best part, you are working on the computer in your own home or anywhere you like.

Affiliate marketing is one of the most powerful methods to promote and build your mlm team. I recommend you read, The New MLM Affiliate Marketing to learn more.

One more thing that CABI will never tell you is “Business Control”.

As a CABI stylist, you have no control over your business.

You must obey CABI rules and policies to remain in business.

What happens if CABI goes out of business?

All stylists are out of business!

You lose everything and nothing you can do about it. You have zero control over the mlm business.

You build a business to create long-term incomes. You want to create a system that generates money far into the future. Isn’t this the #1 reason you want to build a successful business?

If you want to be an owner of a lucrative and profitable business that generates six-figure passive income, then…

You should read my #1 recommended online business opportunity.

Can you write?

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I know all the CABI ladies are not happy when I called CABI a pyramid scheme and a scam.

But be honest to yourself, how long can you stay as a CABI stylist if you do not make money?

Why do you want to go into business with a company that refuses to tell you the truth?

It is almost impossible to achieve your financial dream with CABI business opportunity.

There are much better home-based business opportunities compared to CABI.

But the final investment decision is yours to make.

Thank you for reading this CABI review discussion.

Until next time.

You can share your own CABI review here.

Coffee TalkI create OnlineBzDog to share my fascinating life, “The Writer Lifestyle,”… The care-free-drop-everything-travel-the-world lifestyle!
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