Cabi Scam: MLM or Pyramid Scheme? [Review]

Are you on the hunt for an honest review of Cabi Clothing? You might be feeling a bit skeptical about the whole multilevel marketing thing, and that’s totally understandable. It can be a confusing and daunting prospect to navigate. After all, who doesn’t want independence, freedom, and money in their lives?

But, you may also have some doubts about the legitimacy of Cabi Clothing. Is it too good to be true? Is it just another MLM hoax?

Well, fear not my friend, because I’ve got you covered with a comprehensive review of Cabi Clothing.

As an online entrepreneur, I have reviewed many similar online opportunities over the years. So I can tell you what you need to know.

And, as a disclaimer, I want to let you know that I’m not affiliated with Cabi Clothing in any way. That means you can trust that this review is unbiased and honest.

So, stick around until the end of the review where I’ll also share with you the best alternative to Cabi Clothing that has helped me make a full-time passive income online.

Let’s dive into the world of Cabi Clothing and see if it’s worth your time and money!

What Is Cabi?

Cabi is a super cool women’s clothing company that exclusively sells their products through direct sales. Fun fact: “Cabi” actually stands for “Carol Anderson, Invited.”

The story behind Cabi is pretty neat. It all started in 1977 when Carol Anderson and her husband Jan Janura began their clothing business in their garage. After making her first sale to Nordstrom, Carol was able to sell her clothes to upscale boutiques and department stores for a whole 25 years!

Fast forward to 2002 and Cabi as we know it today was founded by Kimberly Inskeep, Carol, and ten of her friends. These days, Cabi operates in the United States, Canada, and the United Kingdom, and rakes in a whopping $250 million annually (that’s as of 2016).

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Is Cabi Clothing a Pyramid Scheme?

No, it’s not a pyramid scheme. You can look into the rules set forth by the U.S. Federal Trade Commission. According to their website, not all multilevel marketing schemes are created equal. The key difference lies in how earnings are generated.

In a legitimate MLM, compensation is tied directly to the number of products or services sold to the general public. On the other hand, if the compensation plan is based on recruiting new members and their purchases, it may be a pyramid scheme.

But don’t worry, Cabi Clothing operates within the bounds of the law and is not a pyramid scheme. While the structure may resemble a Ponzi scheme, it’s important to note that Cabi’s compensation plan is based on product sales to customers, not just recruiting new members.

If you’re interested in building a passive income stream online, there are plenty of legitimate opportunities available. For example, you could participate in paid Internet surveys through services like Survey Junkie or earn money by searching the web, visiting websites, and watching videos on Inbox Dollars.

In summary, while MLMs may have a bad reputation due to the prevalence of pyramid schemes, Cabi Clothing is a legitimate MLM company that operates within the law. If you’re looking for an online business opportunity, there are plenty of options available that don’t rely on recruiting new members.

You may read our article on the difference between MLM and pyramid schemes here.

Is Cabi a Scam?

No, Cabi Clothing is not a scam. However, it’s important to note that any MLM can become a scam if the person trying to recruit you is lying to gain your trust and get you to pay the $2570 fee. In that case, further investigation beyond what your Cabi distributor tells you is necessary.

Trust your gut and don’t doubt yourself. If something seems too good to be true, it probably is. But that doesn’t mean Cabi Clothing is a complete fraud. It simply means you should do your own research before making any decisions. At the end of the day, it’s up to you to decide whether MLMs are worth the effort and potential risks.

How to Make Money with Cabi Clothing: Compensation Plan Explained

If you’re looking to make some extra money and have a passion for fashion, you might be interested in Cabi Clothing. Here’s how it works.

First things first, you’ll need to invest some money upfront. For $2,570, you can get a full seasonal line of commodity samples to use as you see fit. While it may seem like a lot of money, it’s actually less than what some other multi-level marketing companies charge, like LulaRoe. Cabi claims that this high price point is to attract only the most dedicated members.

It’s important to note that this is an annual expense that fluctuates depending on the time of year. However, the idea is to sell last season’s inventory at a discount and invest the proceeds in the current season. If you follow Cabi’s recommended strategy of selling 70% of your seasonal inventory at a 50% discount, you can expect to make around $3,000. That should cover the cost of the garments and other incidentals like gas and parking.

So how do you actually make money? Payment depends on a percentage of sales achieved. Unlike many other multi-level marketing companies, Cabi does not have meaningless achievements and titles like “Emerald”, “Diamond”, “Black Diamond”, “Blue, Pink, or Vanilla Diamond” and so on. Simply put, you get a commission on all your sales (between 20% and 33%) and you also get a percentage of what your downline sells.

Here’s how the downline commissions work:

  • 1st Tier Downline – 3% (additional 5% if you qualify for the Team Builder Bonus explained below)
  • 2nd Tier Downline – 5%
  • 3rd Tier Downline – 3%
  • 4th Tier Downline – 2%

In addition to the minimum commission of 20% on all sales you make as an individual, you can earn a higher percentage if you sell $2,500 every month (up to 25%).

Cabi also offers a Team Builder Bonus, where you can earn an 8% commission rate increase to 33% if you and your 1st tier downline generate monthly sales of $24,000. Plus, if you have a 2nd Tier downline, you’ll receive an additional 5% commission on their sales.

How Much Money Can You Make?

If you’re considering becoming a Cabi Stylist, you might be wondering about the potential earnings. So, we did some digging and found out the details from Cabi Clothing’s latest financial report.

Firstly, it’s important to note that the income figures we found only apply to Cabi Stylists who met a certain sales quota. If you haven’t reached this yet, don’t worry – you could still make money with Cabi, just not as much as those who have hit the minimum.

Now, let’s get to the numbers. The top 1% of Cabi Stylists who met seasonal sales minimums earned an average of $244,660. Pretty impressive, right? But that’s not all – the top 10% of Cabi Stylists who met the same sales minimums earned an average of $101,003. And, the top 50% of Cabi Stylists who met the quota earned an average of $42,864.

However, keep in mind that these figures don’t include the expenses that come with running a business. As a business owner myself, I know how important it is to consider all expenses when calculating earnings. So, while it’s exciting to add up profits, it’s crucial to remember that this doesn’t reflect the whole picture.

It’s also worth noting that only 29% of Cabi Stylists earned as much or more than the average annual commissions. This means that the remaining 71% of Stylists who earned money aren’t included in the figures we’ve mentioned.

If you want to get a more accurate idea of your potential earnings with Cabi, make sure to include all expenses, including taxes. You can read the full revenue disclosure on Cabi’s website to learn more.

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How to Become a Cabi Stylist?

If you’re interested in becoming a Cabi stylist, you can easily apply on their website. Before you do, you might want to check out their weekly Leading Fashion Forward events, where you can learn more about the company and ask any questions you have.

Once you’ve applied and your application has been reviewed, you’ll need to take an online training course and choose your inventory. Keep in mind that the merchandise available to you will depend on the season in which you apply, so it’s a good idea to stay updated on their latest offerings.

If you prefer a more personal approach, you can also get in touch with a Cabi stylist directly. Just head over to their website, scroll down to the bottom of the page, and fill out the form to find a local stylist near you. You can even host your own Cabi Fashion Experience or attend one of the stylist’s events to get a better idea of how it all works.

Becoming a Cabi stylist is a great way to share your love of fashion and connect with others who share the same passion.

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Discover Cabi’s Training Programs and Events for Stylists

Cabi offers extensive product and trend training to help you style your clients with confidence.

After applying and purchasing inventory, you’ll gain access to a wealth of business and marketing resources as well as online courses. You’ll also receive support from your team leader and home office.

But that’s not all! Cabi also hosts live events called Scoop twice a year – in the spring and fall – where stylists can attend multi-day sessions to receive intensive training and be introduced to the new collection.

And let’s not forget the fashion show! Cabi knows how to put on a dazzling event that will leave you breathless with its intensity. You’ll also feel the energy and enthusiasm of the stylists and Cabi leadership team.

Want to learn more about the company and its culture? Attend one of Cabi’s live webinars where you can hear from top executives like Katie Malone, President & Chief Marketing Officer, Kat Woodside, Senior Vice President & General Manager, and even the Chief Design Officer.

How Much Does it Cost to Be a Cabi Stylist?

Cabi offers three inventory packages for new stylists, all of which include training, a website, and a starter kit that comes with a stylist planner, fit guide, show script cards, lookbooks, and Notion magazines.

The first package is the $1,250 Initial Collection, which is a more condensed selection of fall or spring clothing. This package has a retail price of $5,000, and if you sell it at the end of the season, you can expect to make around $1,750. Just remember, you can only purchase this set during your freshman year and at the beginning of the season.

If you want to access the full collection, you can choose the second package for an additional $2,500. The full collection includes garments and accessories from all seven categories and has a retail price of $10,000.

As a stylist, you can use the money earned from selling your end-of-season stock to buy the patterns for the next season, and you’re all set for the next round!

For those who miss the inventory ordering period, the third option is to become a Digital Stylist, which costs $250. This service is typically used when an employee is hired as a Stylist after the normal inventory ordering period has expired. As a Digital Stylist, you gain access to your team leader’s inventory, in addition to being able to sell through your own website and Front Row. You also get $250 to use for next year’s products.

No matter which package you choose, you’ll receive three garments at a 50% discount, giving you a complete Cabi outfit to wear while selling. You can choose to pay in full immediately or spread your payments over a longer period of time.

Who Is Cabi For?

Cabi clothing may be the perfect fit for you if you’re outgoing, have sales experience, and love connecting with people. If you’re already in a position where you interact with a lot of people, like leading a yoga or dance class, that could be an advantage too.

But at the end of the day, only you can decide what’s best for your situation. If you’re thinking of buying into Cabi, make sure it’s something you really want before you spend the money.

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Why Cabi Clothing is a Great Choice for Fashion Lovers

If you’re a fashion lover, you may have heard about Cabi Clothing, and for good reason! Here are some of the benefits of choosing Cabi for your fashion needs:

A Diverse and Extensive Collection

One of the best things about Cabi Clothing is the wide variety of options available to you. Whether you’re buying or selling Cabi, you’ll have access to an extensive and diverse collection. This means you won’t be limited to a single product line, and you’ll always have something new and exciting to choose from.

Decades of Fashion Expertise

Cabi Clothing has been in business since 2002 and continues to thrive. Carol Andersen, the original co-founder of Cabi, has been in the fashion industry since the mid-1970s, and her expertise has been shared with Cabi’s current founders, including CEO Lynne Coté. This means that you can trust in the quality and expertise behind the clothing you’re purchasing.

Seasonal Upgrades to Keep You on Trend

Fashion trends are always changing, and Cabi Clothing understands that. That’s why they always have something new for existing customers with seasonal upgrades to their collection. 

This is critical for recurring business because “getting a new customer is five to twenty-five times more expensive than keeping an existing customer.” With Cabi, you can keep up with the latest trends without breaking the bank.

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Explore the Different Ways to Sell Cabi Clothing

Cabi offers its stylists a variety of methods to sell their products, giving them the flexibility to create a career that suits their individual needs and financial goals. Here are some of the ways Cabi stylists can sell their clothing:

Cabi Fashion Experience

Cabi Fashion Experiences are a fun way for stylists to showcase their upcoming collections. In these events, the stylist goes to the host’s house to present the new winter or spring collection. Along with refreshments and champagne, customers can try on the clothes and get tips on how to style them.

Front Row Virtual Shows

Cabi stylists can still host virtual parties through the Front Row app, even during the COVID pandemic. They can showcase any ensemble by having models wear it for short video clips. During the event, customers can “like” the merchandise they want, and the stylist can answer their questions about the brand.

Online Sales

As a Cabi stylist, you can sell their clothing 24/7 through your personalized e-commerce site. You can promote your website through your business card, catalog, social media, and emails.

The Cabi Tap App

Stylists can promote the Cabi Tap app to their passengers. Customers can use the app to view the collection, save their favorites, compare new products to those they’ve purchased in the past, and even make purchases. It’s a convenient tool for customers who need inspiration in putting together outfits.

Private Shopping Consults and Sessions

Cabi stylists can arrange for private shopping experiences for customers who prefer to shop from the comfort of their homes. They can also provide an online shopping experience upon request.

Curated by Cabi

Curated by Cabi is Cabi’s version of a monthly subscription service. Stylists select merchandise to send to customers based on their preferences and budget. Throughout the season, stylists can expect a steady stream of commissions from these monthly shipments.

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The Drawbacks of Joining Cabi Clothing

Cabi Clothing is a popular MLM company that has gained a lot of attention in recent years. However, before jumping into the business, it’s important to be aware of the potential drawbacks. Here are a few things to keep in mind:

Not Suitable for Introverts

Cabi Clothing, like most MLMs, is best suited for people who are naturally outgoing and enjoy interacting with others. If you are not comfortable being the center of attention or don’t have a wide social network, building a successful business with Cabi may be more challenging.

Focus on Recruitment

One of the main ways to earn money with Cabi is by recruiting others to join the company. While this can be a viable strategy, it may not be for everyone. Constantly trying to grow your downline can be counterproductive, and it may even create competition among your local friends and family.

Expensive Membership

To join Cabi, there is an additional cost of membership. While the company claims that this is to ensure that only serious women participate, it also means that the opportunity may be out of reach for many. If you are a female student or on a tight budget, Cabi may not be the best option. There are alternative MLMs that are less expensive, or you can explore other ways to make money online.

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Final Verdict

When it comes to multi-level marketing, success isn’t just about determination and hard work. It’s important to remember that not every job or opportunity is suitable for everyone. Your talents, skills, life experiences, and opportunities differ from others, and whether the values of Cabi and the MLM lifestyle align with your own is a personal decision.

Simply put, it’s up to you to decide if Cabi is the right fit. If you’re interested (and financially able), it could be a potential solution worth considering. However, if selling and recruiting aren’t your strengths, I recommend starting an online business instead.

In today’s society, being an entrepreneur is becoming increasingly essential, and starting an online business can be a great way to get started. In the next section, I’ll share some tips on the best way to start an online business.

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Is There a Better Way to Make Money Online?

If you’re looking for a stable and secure stream of passive income, then starting an affiliate marketing business online might just be the perfect solution for you. It’s an excellent choice for anyone who is new to online business, as it’s the easiest and most rewarding online business model out there.

You may read our article about the difference between MLM and affiliate marketing.

With affiliate marketing, you can start your business with almost zero cost and still achieve a steady and sustainable passive income to pay for your bills. You don’t need any initial capital, and you can even do it as a side hustle.

If you’re interested in learning more about affiliate marketing and building a business from scratch, then you should check out Wealthy Affiliate. It’s an all-in-one platform that offers free accounts (including a free website) with comprehensive SEO training (using free traffic methods). This allows you to get started with affiliate marketing right away without paying a penny.

Wondering how much you can earn with Wealthy Affiliate? Well, let us tell you that a 21-year old student was able to earn $7,395 in just one week, using only free traffic methods. That’s more than $1k a day! And that’s just one success story among many others.

You can read our full review of Wealthy Affiliate here.

Wealthy Affiliate Testimonial

Wealthy Affiliate has been around for 15 years and has helped many individuals succeed in affiliate marketing. And the best part? It has a simple pricing scheme with free and premium memberships. You can sign up for the free starter membership without even needing a credit card.

As a starter member, you get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, and access to the keyword tool. All of this is available without paying a penny.

So why not give it a shot and register for a free account with Wealthy Affiliate? See it for yourself and start your journey towards a stable and secure passive income.

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