Is Herbalife A Pyramid Scheme?


June 26, 2012 |


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Have you heard of Herbalife, or do you even sell its products? If not, then let me tell you about  Herbalife.

If you walk around any major city, you’ll probably see flyers posted on light and electrical poles saying things like “Work From Home”, or “Control your weight, Ask Me How!” The ads may all be different, but what they all share in common is the same phone number. When you call that phone number, you obtain a company by the name of HerbaLife.

Yesterday night, l went to a local tavern and a friend of mine pointed to a man and told me secretly: Do you know him? Beware not to get fooled and to sign you up on Herbalife! It’s a scam! Stay away! The tricked me and l lost money!. After this l told my friend, no it’s not a scam. it’s a serious company, you were hyped by yourself because you join the company without being qualified for success. You didn’t have the traits you need to succeed. Do you know what happened next? In a while she asked me what to take for her bad shoulder, and l told her vitamins. And what vitamins to buy she asked me? Herbalife vitamins. To make this story short, l turned her around. She ordered right then a box of Herbalife vitamins because of me. l am not a Herbalife distributor, l don’t know many things about the company and the products they have, but l sat all night and made my research on the internet, so here is what l found!

Company Overview

Herbalife is a global nutrition, weight management and skin-care company. The company was founded in 1980 and it employs around 4,000 people worldwide. Herbalife reported net sales of USD 3.45 billion in 2011 with a retail sales turn over of 5.1 billion USD with an increase of 1.1 billion retail sales on 2010. Its corporate headquarters are in Los Angeles, United States. Herbalife is a member of the Direct Selling Association.

The company distributes its products in 83 countries through a network of approximately 2.7 million independent distributors, some of whom earn profit on product sales and additional commission from a multi-level marketing (MLM) compensation structure. Herbalife is an MLM or network marketing company well established on the field and one of the corporate giants.

Do you still believe Herbalife is a scam?

History

In February 1980, Mark Hughes began selling the original Herbalife weight management product from the trunk of his car. Hughes often stated that the genesis of his product and program stemmed from the weight loss concerns of his mother Joanne, whose premature death he attributed to an eating disorder and an unhealthy approach to weight loss. His goal was to change the nutritional habits of the world.

His first product was a protein shake designed to help people manage their weight. He structured his company using a direct-selling, multi-level marketing model which attracted thousands of distributors, without relying on commercial distribution in retail stores.The company’s slogan, “Lose Weight Now, Ask Me How”, became a marketing theme for distributors, featuring heavily on badges, flyers and posters. l like this slogan very much: l control my weight! very attractive campaign!

Anyway, the company has contributed much to the network marketing and to the direct sales. l haven’t try the products but l have seen friend of mine using them and they had results.

Do you still believe Herbalife is a scam?

Compensation Plan

The initial start-up fee is $49.95. There are three additional levels that you can enter the company as. As Senior Consultant, Success Builder and Supervisor. These levels require one time product orders of approximately $300 (Senior Consultant), $580 (Success Builder) and $1450 over 2 months or $2320 over one month (Supervisor). There are also ways that you can count the volume of the distributors you sign up in your organization towards your volume to help you to qualify for a higher position.

  • A lucrative compensation plan, paying out up to 73 percent of product revenues to Distributors.
  • Earn retail and wholesale profits, plus income through royalties and bonuses.
  • Repeat orders from satisfied customers experiencing ongoing success with the products leads to higher Distributor incomes.
  • Herbalife pays Supervisors and above directly.

 

Sports Sponsoring

Herbalife sponsors a number of athletes, sports teams and sporting events around the world, including:

  • 2011 World Football Challenge
  • Sergey Konyushok (Broke 7 Guinness Records at Strongman competitions)
  • Los Angeles Galaxy soccer team
  • Club San Luis from Mexico
  • FC Barcelona, international/regional Sponsor
  • FC Spartak Moscow, Official Sponsor
  • Lionel Messi
  • Club Maccabi Haifa, Israeli Football club
  • Club Aris Thessaloniki Football club
  • Wisła Kraków from Poland

What else to say about attraction marketing? This company acts as a superstar, by sponsoring in their niche the most successful elite athletes around the globe.

There are many top distributors of Herbalife, more than 100 that are making more than 25.000 dollars per month!

l think know, every allegation that Herbalife is a scam has gone away.

The System of Success

The company has a very well established leadership, and products, if you want to succeed, you need to follow a system of success. To learn more about this system, please visit http://empowernetwork.divramis.com

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Category: Company Rewiews, Empower Network

is herbalife a pyramid scheme

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