Is Cabi a Pyramid Scheme

Is Cabi A Pyramid Scheme? Is It A Scam Or Legit?

Cabi is a company that promises its stylists that they will make money through sales and the recruitment of new team members.

However, with so many scams and pyramid schemes out there, it’s easy to fall for the wrong business opportunity.

For this reason, this article will answer the question “Is Cabi a Pyramid Scheme?” and help you make an informed decision as to whether you should join them or not.

Let’s get started!

What is Cabi?

Cabi is a clothing company that operates through the direct-sales model. This means that representatives for the company sell clothes directly to the customer. The company is based in the United States and focuses on selling women’s work clothes and weekend wear.

Cabi Clothing is a company that is known for its high-quality clothing and customer service.

Who founded Cabi Clothing?

Cabi Clothing was founded in 2001 by Carol Anderson, her husband Jan Janura, and ten of their friends. The name “cabi” stands for Carol Anderson by Invitation.

Carol had a lot of experience in the clothing business before starting her own company and was excited to share her unique vision with other women and transform their lives.

Is Cabi a Pyramid Scheme?

CAbi members earn money both by selling services and recruiting new members, meaning that CAbi is not a pyramid scheme. Although, CAbi has often been accused of being a pyramid scheme, due to the fact that most amount of money is made through recruiting new members.

A pyramid scheme is a business model in which the people at the top make money by recruiting others, rather than through the sale of products or services.

This type of business model is often illegal, because, as the FTC says: “No program can recruit new members forever”.

Is CAbi Multi Level Marketing?

Cabi is an MLM company that operates within the law. It is not a pyramid scheme, but it does have some similarities in its structure and distribution of money. People who join Cabi as consultants are not promised to make money through recruitment only. However, they are able to make money by selling products and recruiting others to do the same.

How Do MLMs Work?

MLMs work by having their representatives sell products directly to customers, recruit new members or both. New representatives are usually expected to acquire an initial “start-up kit” that includes various products that they can offer directly to customers.

How To Become A CABI Stylist?

In order to become a CABI stylist, you are required to meet with a local CABI Stylist. If you don’t know any local stylist, visit the CABI website and enter your zip code or city name. You will then be able to see a list of local stylists and connect with them.

Becoming a CAbi stylist is simple and easy.

First, you must wait until you are accepted as a CAbi Stylist.

Once you have been accepted, complete the virtual training to learn how to be a successful CAbi Stylist.

Also, be sure to review the Welcome Pack that will introduce you to the company’s policies and procedures.

How Much Does It Cost To Become A CABI Stylist?

The cost to become a CABI stylist is $2,570. This includes the purchase of an initial inventory kit, but not the costs associated with remaining an active CABI stylist. In fact, a CABI stylist must buy $2,570 worth of products twice a year for their business to remain active.

In order to remain an active CABI stylist and receive commissions, you have to generate a certain amount of sales every month.

This can be difficult for some people, especially if they have no previous experience of selling products or services.

How much do CAbi stylists make?

The average annual income for a Cabi stylist is $30,000. However, 70 percent of Cabi stylists work a second job in addition to their role at Cabi. This may be due to the fact that the average commission for a sale at Cabi is only 25 percent.

The income potential varies widely for CAbi stylists. Commissions are based on both personal sales and team building bonuses, so it’s all about the hustle and how serious you are in growing the business.

Full-time CAbi stylists can obviously make much more than part-time stylists who earn less but have more flexibility and freedom.

How to Make Money from Cabi

You can make money with Cabi by getting commissions through personal sales and building a team of Cabi representatives. Commissioning through personal sales is obtained by selling products to customers. Building a team means recruiting other people to become Cabi representatives, and then earning a commission on their sales.

Commission Plans To Make Money With Cabi

As previously mentioned, in order to make money with Cabi, you have to sell products, recruit new stylists, or both.

Here is a video showing their commission model in detail:

You Can Make Money From Product Sales

In order to make money from product sales, you need to achieve a monthly goal of $2,500 in your first season and then increase that goal to $3,500. You will earn 25% to 33% on the clothes you sell. Additionally, there is an 8% bonus available if you can hit $24,000 in sales in a month.

Here is the full commission plan.

You Can Make Money Building A Team

Cabi offers a simplified approach to team building, whereby stylists earn between 2% to 8% on what their team sells.

Click to see the full commission plan.

What is a Cabi Party?

The Cabi party is a unique opportunity to view and try on the latest clothing line from the comfort of your own home. A stylist will come to your house with samples and you can mix and match pieces to see what you like.

Pros Of Joining Cabi

While I like a few things about Cabi, there are some potential red flags you should be aware of before joining.

First, it is important to remember that just because something is good, doesn’t mean it’s not risky.

So even though Cabi has a lot of great things going for it, you should still do your due diligence before signing up.

Additionally, there have been some reports of people being scammed by Cabi reps, so you may find it difficult to sell your products if such bad reputation spreads.

So while I believe it is generally a safe and legitimate company, there is always the possibility for something to go wrong.

Here is what I like, though:

Established Company

This company is an established player in the MLM space. They have been around since 2002 and are doing quite well, making $250 million per year.

What’s impressive is that they have a very loyal customer base, which is quite rare for an MLM.

High Quality Products

The company offers high quality products but charges a high price point. Customers are willing to pay the price because they know they are getting a quality product.

Positive Reviews

Products with positive reviews often have a few negative customer service complaints. However, the overwhelming majority of the reviews are positive.

Is Cabi Online Worth It?

If you have no previous sales experience and do not have a big budget to start your own business, then it is probably best you look at other opportunities to make money.

Cabi is not a scam. However, no company is perfect and Cabi does have its own flaws.

It is important to be aware of these before deciding whether or not to join the company as a stylist.

If you do decide to join Cabi Online, make sure you research how to market and sell your products the right way.

Many MLMs push you to sell to your own family and friends, which is not the right thing to do!


Cabi is not a pyramid scheme. It is a legit business that you can start and make money from it if you already know how to market and sell your products correctly.

However, it can be a risky business model for those who know nothing about marketing and do not have the money to invest in it.

So make sure you research various money-making opportunities before making a decision.