Name : Herbalife
Website : http://www.herbalife.com
Type : MLM
Price : $60,70 to get started
Owners : Brett R. Chapman, Michael O. Johnson, more
What Do They Sell ? : nutrition, weight-management, energy, fitness & personal care products
Rating : 1/10
Who Is Herbalife?
Founded in 1980, Herbalife is a global nutrition company that claimsthey have changed people’s lives with great products. I have personally never met anyone who was using their products and was recommending them (except of course for the brand’s distributors).
Their nutrition, weight-management, energy and fitness and personal care products are available exclusively through independent Herbalife members in more than 90 countries. They are very proud to support Herbalife Family Foundation (HFF) and its Casa Herbalife programs to help bring good nutrition to vulnerable children. They also sponsor more than 250 world-class athletes, teams and events around the globe, including global soccer superstar Cristiano Ronaldo, the LA Galaxy and champions in many other sports.
Now, just because an MLM company supports charity or is sponsored by someone famous doesn’t make it a good MLM company, always keep that in mind. Multi-billion companies have the luxury to “buy support” 😉
The company has more than 7,800 employees worldwide and reported net sales of $5.0 billion in 2014. Its shares are traded on the New York Stock Exchange (NYSE: HLF).
What Do They Sell?
Herbalife’s range of products is quite large. It sellsnutrition
supplements, weight management, sports nutrition and personal-care products. What’s inside the products is another story and I can not stress enough that you should consult a physician before using any of them. Always read the little text on the labels and do your homework =)
Their product lines are declined as follow :
How Much Does It Cost To Join?
A Herbalife Member Pack (HMP) is a start-up kit that includes a selection
of Herbalife products, applications and other materials to help you get started as an Independent Herbalife Member. There are two options for you to choose from :
- The Full HMP (US$94.10) contains full-sized products.
- The Mini HMP (US$60.70) contains sample-sized products.
How Much Can You Earn?
- Herbalife pays compensation to members based “solely” on the sale of product. By solely they forget to mention that you need to build a downline to earn a real full-time income. =)
- Like other sales organizations, if certain sales thresholds are met, the company will pay a bonus based upon a percentage of a product’s suggested retail price.
- Under the Herbalife marketing plan, it is possible for a new member to come in and build a business and ultimately earn more income than those above them (hence, the downline)
I have spent hours looking at their compensation plan and came to the conclusion that it is almost impossible to comprehend. One of the things MLM companies have in common is a highly complicated compensation plan, with tons of different bonuses and levels to achieve… I don’t know about you but I never liked it and much prefer affiliate marketing (you make a sale = you earn a commission, no more no less). Here are recurring documents I could find online regarding Herbalife’s compensation plan… good luck! =)
You can also check out their official statement of average gross compensation here
People’s Reviews & Complaints
Here are a couple websites that I’ve come across where you can read both
complaints and positive reviews of Herbalife. Just keep in mind that most people who speak highly of herbalife are herbalife distributors ! 😉
- Complaints and review http://www.consumeraffairs.com/nutrition/herbalife.html
- A really good article about what the products really contain http://www.ancestral-nutrition.com/an-unbiased-review-of-herbalife/
There has been much controversy about Herbalife and allegations about whether it is a pyramid scheme or a reliable business. To me, Herbalife’s business model far from legitimate because at Herbalife, a distributor’s success (and earnings) is determined by how successful they are in recruiting other distributors into the “business opportunity”. Not by how much product they sell to retail consumers…
The vast majority of income generated by the company comes from the products purchased by new distributors who got convinced to join the business opportunity. At Herbalife, the company’s end users and distributors are one in the same. =/ Sooner or later, new distributors will be obsessed with making new distributors, because unless they do, they are unlikely to earn a full-time income.
If you look around and read between the lines, you’ll realize that the few distributors who “achieved success” are those who turned into recruiting machines, into sharks. They harassed their friends, family, friends, colleagues, neighbors and just about anybody who would listen…
If Herbalife distributors income were primarily based on sales to the public, the company would be legitimate. But since the distributors’ income is primarily based on the number of people recruited and the sales to them, I will call Herbalife a pyramid scheme.
So at the risk of disappointed some of you, Herbalife looks like a scam to me and I would definitely not waste my time, money and energy with it! Run and build a real business =)
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