Today we will be reviewing a company called Cabi. Is Cabi a pyramid scheme or scam? Find out in this Cabi review.
The chances of you knowing that this company exists is close to zero. To be honest, I am not surprised that you haven’t heard of this company before. They don’t really stand out whatsoever.
MLMs rarely do any advertising. They leave that work for their members to do, which is the primary reason why you have not heard of this company before.
I think the reason why you are here today is because a hunbot from social media told you about Cabi. I wouldn’t be surprised that you got contacted by one, because trust me, we all have experienced that.
Sadly, MLMs have now infiltrated social media. They view all social media users as potential customers, and for a direct selling company, social media is definitely a hotbed for people buying products.
Just remember that MLMs do not care whatever your race or gender is. They will definitely come for you even though you are not even active on your social media account.
MLMs sell products and recruit members, and by joining an MLM, you can earn money by doing both those things. In a pyramid scheme, however, all you have to do is recruit members.
That aside, a pyramid scheme is downright illegal.
As a disclaimer, I am not affiliated with Cabi in any way.
Hopefully this Cabi review can help you decide whether you want to sign up for the company or not.
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What is Cabi?
Cabi is a multi-level marketing company that sells women’s clothing. Most of the clothing they sell are women’s work clothes and weekend wear.
The company name is derived from Carol Anderson by Invitation. Cabi was founded in 2002 by Carol Anderson, her husband Jan Janura, and ten of their friends, who are all women.
Before Cabi’s inception, Anderson has already found success in the clothing business. She was selling clothing to high-end department stores and boutiques.
Feel free to watch this video to learn more about the company.
At the moment, Cabi is in operation in the United States, the United Kingdom, and Canada. Their annual income is $250 million.
How Do MLMs Work?
Welcome to the section where we talk about how ridiculous MLMs are, and why they should be banned by the FTC.
Whenever I talk about MLMs, this is one of the things that I need to mention. I couldn’t help it, because most MLMs I know of do the same tactic of overpricing their products.
This does not make sense to me, however. Let’s take an example.
Let’s say that you want to buy some cosmetics. Your favorite brand is not an MLM. However, that brand is not currently available, so you go to the mall to pick another brand. Of course, the brand you will pick is similar to your favorite brand.
You will definitely not think that, “Hmm, I think I want to try an MLM brand.”
I am pretty sure that you will not make an effort of looking up MLM brands and shopping from there. Your favorite brand is also definitely a big-name brand, right?
So, how does this connect to overpricing?
Well, in my case, my favorite brand of makeup prices their lipsticks at $8. If you look up prices for cosmetics MLMs, they usually price lipsticks at $15-20.
Since most of their products are on a by-order basis, this means that it will take them days or weeks to ship you orders. Well, time wasted is money wasted. Why buy from an MLM when you could go to your local shopping mall and buy your lipstick there?
You also cannot be assured of quality from obscure MLM brands. Who even knows what ingredients they use?
You can watch this video for a honest review of MLM products.
Is Cabi a Pyramid Scheme?
Since Cabi members earn money both by selling services and recruiting new members, then it is safe to say that CAbi is not a pyramid scheme.
However, since Cabi is an MLM, they encourage recruiting more than selling. This means that recruiting will also earn you significantly more money than selling products.
This just makes Cabi look like a pyramid scheme in disguise, doesn’t it?
Is Cabi a Scam?
No, Cabi is not a scam.
Even if this is the case, you should not too confident about it and join the company immediately just because it isn’t a scam.
You should do your own research when it comes to MLM companies because most information online published by them only say good stuff. You are reading this Cabi review for that reason. There’s no such thing as perfect, isn’t there?
There are lots of good sources out there when it comes to researching MLMs. However, what I recommend are third-party sources because these sources are not affiliated with the company in any way. This means that these sources will not be afraid to publish whatever truth they find.
Another good place to look for information are forums. These forums update their threads regularly, so you can be assured that the information you are getting are timely and relevant.
You should also try to find testimonials from ex-members because these tell you if the company treats its members fairly.
How to Make Money from Cabi
Since Cabi is an MLM, there are only two ways to make money with the company. and these are:
- Selling products
- Recruiting members
These are the two major ways, but yes, there are bonuses and additional benefits you can get in the company.
However, being able to gain these benefits require you to build a downline. If you are not up for recruiting, then you should step up your game.
You need to recruit a substantial amount of people in a weekly basis if you want to earn passive income. Also, if you want to rank up, you cannot do it by selling alone.
MLMs do not really care about how many products you sell. What they care about is how many you buy and how many people you can bring in.
This is sounding more and more like a pyramid scheme, doesn’t it?
How to Join Cabi
Joining Cabi is a pretty simple process. All you need to do is click this link, read up, and provide the required information on the form.
However, joining Cabi is not free. You need to pay $2,570 for your initial investment. That is quite a lot of money.
If you can sell your all the items in your inventory, then you will surely make money. If you cannot, then that is $2,570 down the drain.
I guess this means that you should only join this company if you are very serious about it. Otherwise, it will surely bury you in debt.
Also, Cabi does not really have ranks that you can reach. Everyone earns the same base percentage of commission. The only difference is that if you have more people under you, the larger commissions you get.
There are quite a lot of rules imposed to Cabi stylists, which puts pressure on you to do your best if you plan to join the company. You also need to meet quite a high sales quota set by the company.
Despite this, Cabi has a high retention rate. Because of all these rules and restrictions, they keep the number of stylists to a low, sustainable level.
At the moment, it seems like Cabi only sells clothing and jewelry.
To be honest, a company that focuses only on few types of products are better because they can properly design them. There are less unhappy customer, less complaints, and less time wasted.
Things I Like in Cabi
Cabi was founded in 2002 and they are still pretty active, and they earn $250 million per year. That is quite impressive, because most MLMs do not even reach three years.
This means that the company is being managed properly and that they have a loyal customer base. Pretty rare for an MLM.
High Quality Products
Even though Cabi is an MLM, I praise their product quality. Sure, they are quite expensive, but at least in this company, the price requires the quality of the products their customers get. I guess this is why they have a loyal customer base.
I could not find a lot of negative reviews in Cabi’s products, unlike with other MLMs. All I could find complaints about are their customer service, but other than that, their products are very well-received by their customers.
Equal Commissions Regardless of Rank
Like I mentioned before, you all earn the same base percentage of commissions in Cabi. This is good especially if you are not planning to make a downline and just want to go solo. You do not have to get pressured to recruit people under you, which is a plus.
Things I Dislike in Cabi
Expensive to Start
It costs $2,570 to start your Cabi business. It is very pricey, which means that you will lose $2,570 if you cannot sell your inventory.
I guess this weeds out the people who are not serious about the business, but come on, it still costs a lot of money.
Cabi is a fashion company, and just look at all the brands in this photo. These are all fashion companies, with big names, great marketing, celebrity endorsements, and a social media presence.
If you join Cabi, do you think you can compete with all these? These are all not MLMs, which means they are more accessible to people who like buying clothes.
Also, do you think people would choose Cabi when they have all these other brands to choose from?
People will always choose the brand names they are familiar with. They rarely want to try something obscure.
It is an MLM
This is an MLM, despite all those good qualities. This means that a lot of people definitely failed in this venture. In fact, 99% of people who join MLMs fail to make money, and they do not even earn back their initial investment.
Cabi Compensation Plan
I could not really find the proper document showing Cabi’s compensation plan, so I suggest watching this video below to learn about it.
10 Shocking MLM Statistics That You Need To Know!
- Almost 99% participants of all multi-level marketing companies lose money, according to the FTC.
- There are 38% more chances of you profiting from your own any kind of small business than joining these MLMs.
- Success rate of an online business, which will give you financial and time freedom, is 20% more than joining MLMs for making money.
- The odds of you winning a lottery worth $10k among 10,000 people is 300 times higher than actually making money from MLMs.
- According to the AARP foundation, 47% distributors of all MLMs lose their money. Apart from this, 27% do not make a single penny.
- In the remaining 26% that actually make money, 53% of them make less than $5000/year.
- 39% of those 53%, who are making $5000/year quit because recruiting and selling crappy products to friends and family members jeopardized their relationships.
- Forget about building a long term business with MLMs, because 50% of all MLMs participants quit within one year.
- 75% people that joined MLMs say that they will never again join any kind of MLM.
- A poll was conducted in 2018 among 1050 MLM distributors and it was concluded that most of them made 70 cents an hour and 20% of them did not make a sale. 60% of them made less than $500 in sales over the past 5 years and 32% of them acquired credit card debt to finance their MLM involvements.
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Final Verdict – Cabi
Before I end this Cabi review, I would like to share a few more thoughts with you.
Despite all the good things I pointed out about the company in this Cabi review, you should not feel so confident about joining them.
First off, it would have been perfect if Cabi lets you join without having to pay them $2,570 outright. They could have just made it so that you look for customers, have them make an order, and then order those products from Cabi directly.
But no, Cabi chose the scummy route.
I understand that the clothes that Cabi sells are of premium quality compared to other clothing brands out there, but it is still an MLM. It would have been better if Cabi is just a regular fashion brand, and that way, they could have been more well-known and get more customers. This Cabi review will surely bring the word about Cabi out there, but at what cost?
I could say that not only for Cabi, but for other MLMs as well. Why not just build a regular business? If you are confident in your products, then your business will surely boom, right?
MLMs are just a way to excuse bad products, because the members take the blow.
That’s it for my Cabi review. Hopefully this Cabi review helps with your decision.
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