Is Cabi a pyramid scheme? Make money as a clothing stylist!

Is Cabi a pyramid scheme?

Fashionistas and stylists will find this post interesting. Because in this post, I will be talking about Cabi, a company that is into providing clothing collections for women. If you are someone who likes to dress well and keep your fashion up to date then you must consider Cabi. Along with wearing their beautiful and stylish designs, you can also make money by sharing Cabi’s collection with others through network marketing. If the earning opportunity sounds interesting then it is imperative to know certain things before you consider joining it. Is Cabi legit? Is Cabi a pyramid scheme?

Find answers to the above questions and many more such as products, commissions, and the pros and cons of Cabi’s multilevel marketing program.

New to MLM?

Read: What is MLM Business?

What is Cabi?

Cabi is a home-based fashion producer of women’s clothes. It offers innovative, and beautiful women-wears through personalized styling.

Cabi was founded by a group of women with a view to making things easier for other women interested in becoming entrepreneurs. It is also a focal point for women who want to work from home and enjoy a flexible schedule.

What is Cabi MLM?

Cabi products are sold through independent consultants known as personal stylists. It offers an opportunity to women who can work part-time or full-time sharing Cabi fashion with others to earn commissions.

The MLM provides dedicated business tools and training, a personalized website, marketing materials, and a host of business incentives and bonuses to grow your business.

Personal stylists are offered up to 25% commissions on monthly sales and up to 8% bonuses on the sales made by their team members.

How does Cabi MLM work?

To become a stylist of Cabi MLM, one has to apply for the program through its website or you can also connect with one of the existing Cabi stylists for the enrolment.

Once inducted, a person can begin their stylist journey by purchasing seasonal inventory (starter kits). There are two collection options to choose from. Introductory collection worth $1250 and Full collection worth $2500. The purchase of inventories will cost extra shipping and taxes.

Cabi MLM starter kits

The potential earnings as claimed by Cabi can go up to $1750 for the Introductory collection and up to $3500 for Full collection season sales. We will find out the truth on the earnings part later.

The next step is to complete the virtual training to jump-start your Cabi business.

Cabi products

Cabi is women’s delight. The products cover a wide variety of casual wear to suit different work and domestic needs. The clothing range has dresses, bottoms, jackets, tops, and sweaters. Cabi also offers trending women jewelry that includes necklaces, and earrings.

Cabi products

Cabi releases its product collection during the spring and fall seasons. The clothes are available in different sizes, colors, materials, patterns, to fit all types of body structures and ages.

The clothes are ever trendy, and remain one of the most sought-after products across the age group especially among women. The category of products makes the Cabi MLM opportunity worth having a look at.

Are Cabi products worth their price? 

Cabi products are comparatively expensive. However, the quality of the products is uncompromised. Clothes’ material, design, and styling are extraordinary.

The good thing about Cabi products is their relevancy and trend. It ensures to keep its collection of clothes matching to current trends with new releases and fashion events.

Cabi products on Amazon

The ratings and reviews are very much positive. Some of its products are also available on Amazon with real customer reviews that are encouraging.

Overall, some of the Cabi products may cost more than their contemporaries in the same category but still hold the edge in terms of quality and styling.

How to make money with Cabi MLM? 

There are two casual ways to make money with Cabi MLM:

  • Commissions through personal sales – Under this category, a stylist has many options such as a personal website, face-to-face communication, online app, fashion events, etc. to make personal sales and make 25% to 33% commissions.
  • Bonuses through building a team – By building a team of stylists under your mentorship, you can make extra bonuses and incentives up to 8% on their sales.

Cabi MLM compensation plan 

Here is the detailed compensation plan of Cabi MLM.

The commissions apply to stylists who can sell the costumes/apparel to their clients through Seasonal Inventory. Here the stylists can make up to 25% commissions if they are able to meet the target of $2500 worth of monthly sales.

Cabi MLM compensation plan

25% commissions are boosted further by 8% if stylists can add regular members in their team who can together achieve a target of $24000 worth of monthly sales.

By far, both types of earnings require effort and dedication. Hitting a $2500 monthly sales target may have its challenges but still achievable but the group target could be far from reality at least for the beginners.

Overall, the compensation is divided into four levels of categories apart from personal commissions. The incentives and bonuses get added with each level you climb as a stylist and recruiter.

The structure is not too complicated as compared to the other MLMs and Cabi has done well to keep it simple focusing more on paying money for product sales.

Can I make money with Cabi MLM? 

Yes, you can make money with Cabi MLM. Let’s elaborate on this statement before you jump to the conclusion.

First of all, the investments. The starting cost is as evident very high. Spending $1000+ is not convenient for everyone even for good quality products. Imagine convincing others to do the same for recruitment.

Second, Cabi releases its clothing collection season-wise. That means the anticipation among the audience will not be consistent throughout the year which may impact the sales target to earn commissions.

Finally, the actual earnings a Cabi stylist makes. The income disclosure statement clearly indicates that more than 50% of Cabi stylists made an average income of $40k+ yearly. That’s more than $3000 a month which is really good considering it’s an MLM.

Cabi MLM income disclosure

However, these figures replicate the success of top stylists who remained loyal to Cabi for years. The 5% that started their journey were able to make $7k+ in a year which is less than $600 a month.

Still, the commission rates and product quality combination have the potential to generate decent money for Cabi stylists. If you can spend consistent money, time, and effort for some years then you can make money with Cabi MLM.

Is Cabi a pyramid scheme or a scam? 

Cabi is running its clothing business since 2001. They sell high-quality products in the form of fashion wear for women in 3 different countries. Surviving two decades successfully is an indication that the company is here to stay and not a scam.

Recruiting is part of every MLM. More and more people are required to market the company’s products and achieve sales to earn commissions. Cabi follows the same process. They pay their stylists based on product sales and not recruitment numbers. It’s not a pyramid scheme.

Pros 

  • Proven history – Cabi is a popular home-based clothing company in existence for more than 20 years. The company has a proven history of a successful stint in providing legal business opportunities for women looking to make money. It is reliable and trustworthy to work with.
  • Quality of the products – There is no doubt that Cabi offers some of the most high-quality products in the clothing segment. The fashionable and trendy costumes are part of every spring and fall season that are exclusive in nature and worth spending money on.
  • Decent commission structure – The commission structure of Cabi is simple and productive. There are no two ways about making money with its MLM program. With persistent efforts and some investment, Cabi stylists can expect to make decent commissions every month.

Cons 

  • Women-centric – The product line is specific to women and so does the MLM opportunity. Cabi MLM is ideal for students, fashion designers, housewives, and every woman looking to make money as a fashion stylist.
  • High start-up cost – Starting with Cabi is not cheap. As a stylist, you have to spend thousands of dollars on procuring seasonal inventory. Plus, the cost may add up on marketing and promotional aspects such as arranging parties, traveling, fashion events, etc.
  • Recruitment is required – You may not be able to survive only on personal commissions. To maximize the earnings, regular recruitment and team building are necessary. This is the most challenging part and this is where most of the MLM reps fail.

Conclusion: Is Cabi MLM recommended?

Cabi has a few things going in its favor. The product category and commission structure are two things to consider. Plus, Cabi does well to take care of its stylists with comprehensive training, tools, and support.

On the other hand, many would-be hesitant to join the platform owing to its start-up cost. The end-of-season sale earnings may not remain consistent every month. Clothing has its own market and a majority of sales happen through online purchases which can make personal sales more challenging.

Still, the drawbacks do not make Cabi completely non-recommended. I personally do not like to recommend MLMs as a source to make money due to risk and sustainability elements.

But, if you (as a woman) looking for a strong, and reliable company to work with then keep Cabi on your list. It has good products and money on offer provided you have good patience and investment capabilities.

Alternatively, if your intention is to make money online irrespective of the products and efforts with low investment then check out my recommendation below.

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