Cabi Clothing Review: Is Cabi a Pyramid Scheme?
You’re reading this article because you most likely want to make money online.
Because many people fall for scams, I’ve committed myself to review MLMs like this.
This article will show the benefits and disadvantages of joining CAbi Clothing, and I seek to make things clear:
- Is it a pyramid scheme?
- Can you really get rich selling clothes?
We will look at the various aspects of the firm to help you determine if it’s best for you.
And I will give recommendations in the end — so you can truly make a wise decision.
What is CAbi?
CAbi — Carol Anderson by Invitation
CAbi Clothing is a direct sales clothing company focused on women’s work and weekend wear.
In the 1970’s Carol (with her husband, Jan Janura) put up her clothing company in their garage and made her first momentous sale to Nordstrom in 1977. Her expertise found her offering items to high-end stores and boutiques for the next 25 years.
In 2002, Kimberly Inskeep (current President) joined her team with TEN other friends (called as CAbi Founders) — and there began the journey of CAbi. Right now, CAbi Clothing has reached the US, UK, and Canada and enjoys a yearly revenue of around 250M (2016).
The Co-Founders are:
- Suzanne Eisenbrand
- Cynthia Mertensmeyer
- Maryjo Valder
- Syd Ryan
- Karen Kohlan
- Susie Anderson
- Janet Hankinson
- Anne Hunter
- Kim Carpenter
- Linda Nelson
Is CAbi Clothing an MLM?
Yes, CAbi clothing is a legit multi-level marketing company that sells real products. It offers various styles of women’s clothing, accessories, and jewelry.
It also offers an MLM opportunity for people. Their affiliates, called CAbi Stylists, earn commissions via product sales and whenever their downline makes a sale.
Note though that joining CAbi is expensive. But there are ways to make money like being a host — which I will discuss later on.
If you want to really earn money online, check out our #1 recommendation here.
CAbi Overview & Ranking
Name: CAbi Clothing
Founders: Carol Anderson and Jan Janura
Product Type: Multi-Level Marketing – Clothing
Price: $2750 Start-Up Fee + Shipping And Other Applicable Expenses
Overall Rating: 4/10
Is CAbi Clothing a pyramid scheme?
Don’t worry — CAbi is no pyramid scheme. It’s no scam.
The members can make money through sales without having to recruit people. But the question is — is it the ideal company for you?
Now don’t get me wrong…
It is entirely possible to build a profitable, successful MLM business. But I don’t believe that MLM is the best way to create wealth.
And unlike CAbi, it provides real proof of real success from real people as recently as a few days ago.
What is the CAbi Product Line?
CAbi Clothing is a brand that offers a significant collection of fashion items that are updated seasonally. From dresses, tops, bottoms, jackets, cardigans, sweaters, shoes, jewelry, and accessories, you can choose your pick depending on your style.
There are also plus-size clothing.
Feature: CAbi Tap
CAbi Tap is an awesome shopping and personal styling App!
It organizes your clothing purchases in a virtual closet just for YOU. CAbi Tap gives styling suggestions for items that you already have with the current collection.
Simply download to connect with your personal stylist.
Product Feedback: Is CAbi Clothing good quality? Are they worth the price?
Question: What factors make excellent clothes?
The brutal truth is — it all depends on customer feedback. The company has both great and not-so-great reviews. And most of the negative ones relate to poor customer service. Check out these positive and negative comments:
How Does CAbi Work?
Simply put, CAbi Clothing sells clothing and fashion items. And just like any network marketing, it saves costs for advertising and marketing by getting members.
These affiliates use this business opportunity to earn while working from home. Ideally, both ends win. But does this really happen?
Can You Make Money with CAbi?
Now comes the important aspect.
I assume that your main reason for reading this article is to see if you can really make a living out of the company (either part-time or full-time).
So here goes…
Just like any MLM, YOU CAN make money with CAbi in two ways:
- Sales of the products
- Recruitment of people
How Much Does It Cost to Join CAbi? How Do You Get Started?
Hold your horses!
Before jumping in, you should know that you need to shell out $2570 to be a CAbi Stylist which covers a complete line of seasonal inventory. This starter kit has 80 to 120 items. And that’s not all. The shipping fee and other costs are still on your tab.
If you’re good and can sell all these items, then you will definitely earn. But if not, then say goodbye to your $2570!
And it doesn’t stop there… You should know that $2570 is a seasonal cost where the aim is to sell last season’s inventory at a discount and utilize the profits to reimburse for the current season.
By selling 70% of your seasonal inventory at 50%, you will gain $3000 — which they say is enough for the cost of clothing and necessities (parking, fuel, etc).
CAbi Compensation Plan
We will know the effectiveness of networking companies based on their compensation plan. Here are some points on their plan.
The CAbi Clothing compensation plan is commission-based. They don’t have milestones and titles like “Ruby,” “Diamond,” “Blue Diamond” or “Emerald.” Basically, your earn commissions on sales (20-33%) — both personal and downline.
- 1st Tier Downline – 3% (additional 5% if you qualify for the Team Builder Bonus)
- 2nd Tier Downline – 5%
- 3rd Tier Downline – 3%
- 4th Tier Downline – 2%
Your personal commission begins at 20%. But, it increases by 5% (for a total of 25%) if you can sell $2500 monthly.
Team Builder Bonus
- Additional 8% added to your personal commission rate (bringing it to 33%) when you and your 1st Tier Downline sell $24,000 in a single month
- Additional 5% on your 1st Tier sales (bringing that rate to 8%).
How much do CAbi reps make?
Look here! A CAbi stylist earns an average income of $30,000 yearly! In 2011, the annual figure was $19,031. Wow.
Most stylists have a second job to augment their clothing venture. 70% of them are teachers, nurses, and real estate agents. Would you believe that in 2013, the rookie stylist of the season was a surgeon? Quite amazing.
You can certainly make money with CAbi but if you’re gonna put in the amount of grueling work to become an MLM marketer (which, trust me, isn’t easy), you might as well bring in some REAL money.
The program that helped skyrocket my online business to $40,000+ per month teaches some of the same MLM skills, but shows you how to monetize them in a much, MUCH more profitable way.
Host a Fashion Experience!
Do you think joining is way too expensive?
Or perhaps it’s not up to your alley?
Well, you can still benefit by being a HOST of a Fashion Experience.
You simply provide a homely space, invite your friends and your CAbi Stylist will bring the clothes. She will be a fashion consultant and will help each one of your audience find her personal style. Here are your gains:
- $250 sales – earn 50% off one item
- $500 sales – earn 50% off two items
- $750 sales – earn 50% off three items etc.
At $1000, you receive 50% off 4x plus one additional item for a total of five!
You can also gain credits (worth $15 for every $500 spent) which you can use to buy clothing. And by referring a friend to be another Host, you get 50% off one item. Cool huh?
CAbi Reviews: Ugly Truths Revealed
Here comes the ugly part. Let’s go through some of the disadvantages of CAbi Clothing.
Exorbitant Joining Fee
Honestly, $2570 is just way too much! The average woman does not have that much dough. Plus, joining an MLM does not ensure success.
High Operating Cost
Unlike other MLMs, the operational cost is exorbitant too! Who has $2570 to spare twice a year? Not only that, you need to attend training meetings held twice yearly. Do you have the funds to travel abroad or to another state?
Not for Everyone
Being an MLM, the company works for the natural extrovert and charismatic types. If you’re more of an introvert, this option will be challenging.
Truth is, there are thousands of fashion brands worldwide. And most are not MLMs which means they are readily accessible to buyers. Also, people will always choose familiar and trusted brands.
CAbi Review: The Positives
Simple Compensation Plan
Simple. That’s what I like most about their compensation plan. No fuss about complicated ranks and systems, unlike other MLM companies.
Diverse & High-Quality Clothing
What’s great about their products is that they change designs twice yearly. This is a great come-on for buyers. Moreso, their quality is good. Quite pricey but good.
Unlike other MLMs, the company enjoys positive product feedback. Most of the negative reviews relate to poor customer service.
Focus on Sales vs. Recruitment
This factor proves that the company is legit and safe. Unlike other MLM companies, they zero in on selling and not on recruitment which is a good sign that it is not a scam.
Equal Commissions Regardless of Rank
Everyone earns the same base percentage. If you’re not planning to recruit into a downline and simply want to go on your own, this is a plus point. No pressure to recruit.
The company has been standing strong since 2002. Moreso, its founder, Carol Andersen, has been in the fashion industry since the 1970s. Its stability assures people that they are properly managed and they have a loyal client base. Most MLM companies do not even go past 3 years.
Bottom Line: Is CAbi worth the money?
So, is it a pyramid scheme? We can clearly see that CAbi Clothing is not a scam basically. It sells real and legit products and pays affiliates properly.
It also uses a legit multi-level marketing system. It is not a pyramid scheme in disguise.
But is CAbi the best business opportunity for YOU?
I hope that this review has helped you decide whether to invest in it or not.
When it comes to building a business, you have plenty of options.
And even if you’re dead set on becoming an MLM marketer, you’ve got way better options than CAbi.
Keep in mind, I don’t get paid to promote any of the programs I review. I think CAbi is a great business model, but you could end up leaving way too much money on the table.
What Is Our Top Recommendation For Making Money Online In 2023?
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Where CAbi falls short is in scalability.
There’s only so much time in a day and there’s only so many people you can reach to sell by yourself.
MLM companies know this!
Which is why they push so hard for you to recruit for your downline…you can’t get rich with it as a one man/woman show.
But what if you could make even more money off of little local websites without having to spend hundreds of dollars on overpriced products and a bunch of time recruiting people to sell under you?
With this Digital Leasing program, you can make recurring monthly income without constant sales to your friends and constant recruitment!
Sound too good to be true?
Of course it does!
But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a LOCAL website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business, tree service, plumbing, towing, etc.
How do you get paid and how much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 10 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $500 a month!
See why they call it Digital Leasing now? That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to worry about:
- Your upline getting paid before you
- Begging your friends and family to buy from you
- Recruiting people all the time
As it is with CAbi… You only get what’s left of the pie if you meet a monthly quota…
The course we recommend actually allows you to collect HUGE FLAT RATE DEALS.
Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group much better than the CAbi community in our opinion. This group is much more active.
Unlike CAbi, where you’re getting maybe $10 per sale, you could be getting 10-20X THAT.
A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding Digital Leasing.
Unlike CAbi, more people have been able to walk away from their 9-5 job as well.
Digital Leasing allows you to have total passive income with most of your day being spent WITH your friends, NOT selling to them.
Now, I know you probably have tons of questions…