Herbalife Scam: Let’s Review The Claims

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There has been talk, both positive and negative, about joining Herbalife as a way to make money. With any opportunity, you need to review the background of the business before investing into it. You want to not only check out the company but weigh the pros and cons of what this MLM company offers. Then you can decide for yourself if the “Herbalife scam” talk of some reviews holds water.

About Herbalife

Herbalife International is a 30 year old, multi-billion dollar company. It has networks in 74 countries. The company manufactures wellness and nutritional products. The company’s most popular products include protein shakes, snacks, energy drinks and fitness drinks. Herbalife also has vitamins and dietary supplements including skin and hair care products.

You cannot purchase the products from a store; the only way you can purchase them is from a distributor, and there are over 2-million distributors across the globe who have joined Herbalife.

The ‘Make Money’ Side of Herbalife

In order to become a distributor, you are required to pay just under $50 for the start-up fee (fees for starter packs can vary.) Once a distributor, you are entitled to a 25% discount on product purchases. When you sell three Quickstart packages; the commissions basically pay for your start-up fee.

A distributor can be promoted to Senior Consultant which requires a purchase of $300 worth of products.

The Senior Consultant can be promoted to Success Builder which requires a purchase of $580 worth of products.

The Success Builder can be promoted Supervisor which requires a $1450 purchase over 2 months or $2320 over one month worth of products. Only supervisors get a 50% discount on products. They make profit from the products they sell to their distributors. Royalty overrides (ranging from 1 to 5%) are earned from the sales of their distributors.

In summary, the more you sell and the bigger your personal organization grows the more you will earn.

The Pros

First, the Herbalife Independent Distributor (aka representative or rep) gets training included when they join including the support from the MyHerbalife.com distributor website. In fact, this type of real-world business education is one of the main reasons Robert Kiyosaki, author of the best-selling financial book “Rich Dad, Poor Dad” recommends network marketing as an industry.

Second, you are selling the products of a well-established company. It is easier to market when there are company materials and strong brand recognition already established.

Third, bigger earnings come from assisting others to succeed. This multi-level compensation system means you earn not only on your personal sales, but also on the sales of others you refer to the business, so your long-term earning potential is far greater than in other businesses.

However unless the claims are overblown, the pro side of Herbalife isn’t going to be the thing that makes people think of it as a scam, so let’s review the other side too.

The Cons

Firstly, the products can be more expensive than similar herbal products sold at the market. The value is based on the quality and efficacy; not the discounted pricing.

Second, it takes time to build a successful business. It also takes time to train the people who join you with the opportunity.

Third, there are fees to becoming a distributor at the start, and a required minimum purchase of products to maintain position and commission status. If people end up with big initial purchase that they subsequently don’t sell, or have had inaccurate expectations of what it takes to make back more money than they are spending, this can be a big problem. Such money issues are one of the biggest reasons for complaints that Herbalife is a scam, or similar.

The Verdict?

Herbalife’s products and/or business opportunity will not be for everyone. However this not enough reason for ‘Herbalife scam‘ headlines.

It is true that there are no guarantees of a return on your investment, but then again even with other start-up businesses, there is no assurance of success either. You are doing the advertising, marketing, and selling on behalf of the company so it is important to understand the value in the products, and how to get others to experience that value too.

You will need to begin with people you already know so you can practice safely, but to grow a big business with a steady, residual and growing income you will also need to expand your networks and connect with others who may be interested in your business too. Make sure you plan for your marketing to do this.

Here’s the plan I use, and recommend you take a look at too forgenerating MLM prospects that will actually buy from you.

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Comments on Herbalife Scam: Let’s Review The Claims Leave a Comment

March 31, 2011

Evelyn Funke @ 11:33 am #

I attended a Herbalife information meeting….I bought several products. One of the women said that you could get a discount if one “joined”….without really looking into what I was “joining”….I did. I was then 67.00 dollars poorer and was then told I was a “distributor”.

I apologize for being so ignorant…I should have asked more questions. I am 80 years old…I will not buy that many products…and I certainly do not want to start a business. My I.D. # is [EDITED OUT] …since it is less than 24 hours since I applied…I am requesting that you cancel my membership…remove my name from any listing…..and accept my apology for stupidity. If I do need more products I will get them from my distributor Connie [EDITED OUT]….By the way, she in no way talked my into this…..I’m sorry ,…Evelyn Funke

April 3, 2011

Martin Russell @ 10:32 pm #

Hi Evelyn – Sorry to hear your story.

Unfortunately I am not even involved with the company – I just reviewed them on my website, so please contact Connie or call Herbalife direct. If you didn’t want that many products then the retail price will do you fine.

EXTRA NOTE: I have left Evelyn’s story here deliberately.

Evelyn would be a wonderful CUSTOMER. Her comment shows she is sociable enough that she would tell her family and friends of any great results of the Herbalife products. Heck, she is online telling me – a total stranger!

From Evelyn’s recommendation people would then hunt out Connie for themselves (the goal of “attraction marketing”) and become customers too. Maybe Evelyn would then see the value in being a distributor, or maybe one of her referrals would. Either way all parties would have got full value and be even more happy.

If this makes sense to you learn more about attraction marketing here.

May 2, 2011

smiller @ 9:30 am #

My friend is tryng to convience me into joining this herbalife n that I will make good money n still be a stay @ home mom. I’m a little weirry on it but wanted to know if it would be a good investment to make part of or would it jus be a wast of my time
-smiller-

@smiller: Here are a few questions you might want to ask…

Do I have money to invest in a business? Do I like the Herbalife products enough to be happy to recommend them? Do I have sales and marketing skills? Do I have a large network? Am I willing to develop my marketing and networking skills? Do I want a job, extra money, or to learn how to be in business for myself?

Never do ANY business unless you can fall in love with what you are doing.

May 23, 2011

susie rodriguez @ 3:21 pm #

Ived been trying herbal life for exactly 1 month and let me just say I’m very happy with my results! BTW my distributor’s name is also Connie and she has a great way of explaining any questions I have. Ived lost 15 lbs. With this product and I feel fantastic not only am I losing weight but physicaly feel better then ever! I’m a diabetic and my sugar levels have finally fone down. I’m amazed how wonderful herbal life is. Keep up the good work :)

June 6, 2011

DR.SYED IRFAN @ 11:16 am #

Herbelife products are overpriced and not able to compete in the market
The company therefore need MLM system to exist in the business

@DR.SYED IRFAN: I think that is a big claim, with some truth but there isn’t a definitive way to decide how much.

How do you explain the survival of Rolex, and any restaurant more expensive than McDonald’s? ‘Branding’ and ‘quality’ are important too.

And since most people in Herbalife are NOT making big money from the business (http://www.carefulcash.com/mlm-income-the-disclosure-statement-says/), it means that most are really just ‘customers’ who are paying for reasons OTHER than making money.

I personally am in an MLM that is cheaper than the alternative non-MLM products, and I don’t buy Rolex, but that is just me. The marketplace caters for many, many different groups.

June 12, 2011

Phil @ 3:19 am #

Hi,

My mother decided to take this upon her and she says its the worst mistake she has ever made. At first she thought the company cared about health but quickly came ti relize the harash selling techniques and it revolved mainly around money. Not to mention that most products contain harmfull substances. To be part of the industry she said you have to be able to lie, and be a seller. Forget the product. You need to able to make it look amazing. To give you an idea, she spent £1500 in 2 years, had 5 custermers and made £300, losing £1200. She worked damn hard aswell. She did alot of marketing but it just wasn’t her thing. She had to lie to sell it and didn’t enjoy that as most of het custermers were insecure people with little money. Please be vary carefull when goingoing into things like this. If I were you I would stay well clear. There selling to you aswell. You have to remember that!

@Phil: Sorry to hear about your mother’s experience.

In my experience people using ‘harsh selling techniques’ and lying – well, it’s a bet that they also lie about the money they make from those methods. So either change company or ignore their advice. One of my downline is a woman I helped market her Herbalife business when she couldn’t stomach what her upline was telling her to do. She loves the products – just not the marketing.

Learn honest relationship-based marketing. Not just because it’s the only way you will sleep well at night, but because it’s the way you build a sustainable business. After this the two key marketing principles you need (and that her upline didn’t teach) are “Attraction Marketing” and “Funded Proposal”.

June 13, 2011

cesar rodriguez @ 5:05 pm #

I HAVE BEEN VISITING A HERBALLIFE CENTER FOR ABOUT 10 DAYS JUST TRYING THE ALOE WITH WATER, NATURAL TEA AND SHAKE I HAVE LOSE 10 POUNDS IN 10 DAYS WITHOUT MISSING A DAY. THESE PRODUCTS REALLY WORK. I PERFER TO SPEND MY MONEY ON HERBAL LIFE PRODUCTS THEN BUYING,TWO EGGS WITH BACON ON A ROLL. EACH MORNING WHICH IS A BUNCH OF HIGH FAT GOING IN TO YOUR SYSTEM…AND IT ONLY COST 4.00 EACH DAY FOR BREAKFAST.

June 14, 2011

@cesar rodriguez: So much in life is choices. Choosing to do something different, or keeping doing the same as before.

June 18, 2011

acop4life @ 8:47 am #

Hey guy’s. I once was involved in an MLM and was disappointed as well. Then I was introduced to [Edit: MLM Company Name]. It is a much better company with a great support staff and a better product. The work is the same and you have to work at it to get where you want to be in the company. However by far the company offers better payout and more incentives. Just take a look and decide for your self.

With ‘blog spam’ marketing like this comment I’m not surprised you were disappointed in MLM. Knocking another companies to sell your own is not cool. Please use this site to learn other techniques – they work better.

June 20, 2011

jade @ 6:51 pm #

I had a friend that was using this product and said that she didnt gain weight but she didnt lose any either. She also said that it made her feel incredibly full and her energy levels were low. Now this is my issue, I was considering buy this stuff because I lack energy so I was wondering if there is any proof that this stuff works?

As a medical doctor and someone who is not in Herbalife I’m going to stay out of that debate. But I can give 2 suggestions – 1. Ask for proof eg scientific studies on any of the medical treatments, popular weight loss programs, even exercise. The answers – or lack of them – should shock you. 2. Since Herbalife products are not medicines they can’t make therapeutic claims, so it comes down to what YOUR results are when you try it.

June 21, 2011

Jonita @ 5:29 pm #

I have a question. Why is it that there are so many supervisors named “Connie”? I find this very weird. Also, you mentioned that there is a $50 start up fee. Why is it that I got charged $199.95 as my start up fee???
Also, all the calls I’ve been getting are questionable. I kept hearing someone say “Hey, it’s me ‘Connie’…but the Connie I hear each time is a different voice and it’s very distinguishable. So why? How many Connies does this company have?

I feel like this is not the home business I can thrive on. I was already tricked into paying 4x the actual start-up fee.
@Martin Russell:

@Jonita: Hmm. Would the real ‘Connie’-artist please stand up?

There is a start-up fee and then there are product purchases. You may have some combination to get going. But your sponsor should be able to clear up exactly what you paid for and what you got. Either way this is not a pleasant experience for you and I’m sorry to hear about this.

Once again to everyone – Jonita is telling you how NOT to build a solid customer base, let alone a downline.

The good news is that if you market properly you WILL stand out and attract the right sort of people into your business.

June 23, 2011

Edith @ 12:23 pm #

I have had some experience with MLM companies, there are a few of them that I would not recommend to invest in. In the case of Herbalife, which I am a consumer of its products, I was not sure to buy it in the first place for several reasons, but its price were unaffordable for me. I thought I could find the same products in the regular market for much less money, so I did. My mom came to visit, from out of the country, and since she has been diagnosed by the Drs. with diabetes, she brought her own vitamins from Herbalife. She then got me as a distributor, just to start me up consuming the product –kind of against my will- I let her do it and I decided to try them. Oh my gosh! I have noticed the change and even my husband, which hates doing this type of things as vitamins and shakes, and loves to eat, now loves it. We are seeing the changes, they don’t compare with the generic products that the regular market offers. The Herbalife products are great in flavors and the results are to be seen almost inmediately; for example, I have horrible PMS they have had me close to get divorce, and last month my hubbie told me that it was the 1st time in our life together that I did not act up, or suffered with the symptoms. Maybe, is to much of a hassle to start up a business, but it is worth to take the product as a personal vitamin supplement. I am really content….

@Edith: Great to hear your results – and yes, business is another level again. Most will never take that step, but having a company behind you that you can honestly recommend is the key if you do.

June 27, 2011

Kris @ 3:04 pm #

I am a new full time mum and thought about joining herbalife to help support our family. However i have done a little research on the company and how I would be promoting my new business and am still unsure. I have I contacted two different distributors to find out the price of joining,,, the first said it was going to cost me $500 to join..she even gave me her account details expecting me to deposit that amount,, I’d never even met her before!
The second told me it was going to cost me $183 to join.
So which is it?

June 28, 2011

@Kris: It probably is a difference in how much product you were getting along with the various starter packs.

Use this question to sort out who to sign up with. You can even ask your friends if they know anyone in Herbalife, but make sure you find someone you would be happy to copy. Your question will separate the ones worth following from those that aren’t.

And I’d also recommend this education for promoting your new business no matter who you join with. Do your due diligence.

July 12, 2011

Larry Corcoran @ 12:56 am #

I am getting into the Herbalife program and learning the risks and benefits. I’ve worked in MLM and the emphasis is on the word WORK. There are NO claims of becoming an overnight millionaire, there is warnings all over the site saying resulting incomes aren’t typical. You have to understand you are becoming an independent contractor. Like in a franchise there are start up costs. I worked for a major pizza chain for 5yrs and to just purchase a franchise was $5000-20,0000 depending on the size of the pizza location. That doesn’t include everything you need to run a pizza place (supplies, equipment, staff). It looks like you may invest $3000-5000 start up with Herbalife, which even though is relatively cheap compared to other franchises (recommend doing searches of various franchise fees for the big picture). To do this or any other market based work, you have to love the product line, love interaction, and be able to commit time. The average business takes 2-5 years to see a profit. Opportunity costs= what are you willing to sacrifice to get to where you want to be.

With a proper plan for your business and your marketing I would say the investment can be much smaller and the profit point can reasonably expect to be your first month or two – “Attraction Marketing” and “Funded Proposal” are the extra keys. But what you are saying about WORK I fully agree with.

July 14, 2011

Leslie Golson @ 11:53 am #

Wow. Thanks for posting this information and resulting chat. I am considering MLM and this helps clarify some questions for me.

July 15, 2011

@Leslie Golson: All the best then Leslie at treating this as a real business – due diligence and all – and being one of those who succeeds.

July 16, 2011

Carlton @ 2:16 pm #

Reading the comments posted within this web-site has been insightful. Everyone has an opinion stemming from their past experiences, some positive, some negative. I myself, contend that engaging Herbalife in its MLM business is a chance like anything else we choose to do in life. As human beings our creator has blessed us with the ability to choose and therefore its left up to us as to when to get in and when to get out. We are given the opportunity to take a chance and either make money work for us or to work for money till the day we die.
I must agree with the comment made by Mr. Larry Corcoran [one of your earlier bloggers] , “You have to understand you are becoming an independent contractor.” , and with that understanding a person has to do the research before making the decision to pursue an undertaking this nature, i.e., entrepreneurship. My wife and I are doing just that, we have no intension of just leaping into this, reflection and consideration must be given to your [clear] recommendation; Do I have [ money ] to invest in a business?
Do I like the Herbalife products enough to be happy to recommend them?
Do I have sales and marketing skills?
Do I have a large network?
Am I willing to develop my marketing and networking skills?
Do I want a job, extra money, or to learn how to be in business for myself?
Never do ANY business unless you can fall in love with what you are doing.
Hard work for yourself can be more gratifying/profitable [any many ways] compared to hard work for someone else. Again, we can make that choice. Any type of business venture carries risk but risk can be managed with research and study. End

Agreed. Due diligence is very important. These days the biggest risk, in my opinion, is to NOT be developing skills at making money beyond a job. Few jobs are secure any more.

July 17, 2011

gregory kinard @ 8:41 am #

Hello Dr. Martin, I stumbled upon a site that offered income online, needless to say that after leaving my Security job recently and having access to a computer I jumped in with some expectations of being led in the right direction. Well I sent the $9.95 cost to get the information and was sent to this young mans site to join the online business opportunity. I have talked to the young man twice and after the second conversation and video and audio that I had to watch I was told that I had to spend another $199.95 to get the start-up package that was needed to join the company. Well, needless to say after spending the $210.00 to receive the packages, which were to be sent by one of the delivery companies, I have yet to receive my packages, not only that but I was sent a tracking number to look up and when I clicked on the site there was a graph bar showing what the company was doing with the delivery (picked up, enroute, delivered, etc.). When I had my next conversation with my “mentor” he said that he did not understand what happened and the delivery company normally would leave the package at the door if no one was at home to drop off. On the day of supposedly delivery I was there because the tracking number informed me that the delivery would be made by 3:00 p.m.and when the time came and past, the graph that I was watching from the tracking number showed that the package was enroute back to the company. Granted I was never told that the company I was to do business with was “Herbalife” I found out on the introduction audio and video that I was to watch and answer about 10 questions and submit to my “mentor” to proceed to the next level. Do you have any idea if this is how the signup is handled? I was excited to join because I have known that Herbalife has been around for years and over 20 years ago I had the opportunity to join but being younger had interests in other aspects of my life.

@gregory kinard: Sign-ups are handled by individual representatives, and it’s up to them how they do it. That’s certainly not how I do my signups, but in the end your success is up to YOU. That’s a rocky start, but hope I can help you shift from employee to a proud and successful entrepreneur!

August 2, 2011

Hayley @ 9:28 am #

@Dr Martin Russell: In response to Jonita’s comment, we also were charged the $200 start up fee plus you pay an initial $9.99 for a dvd and booklet that doesn’t tell you anything about the business. You don’t even learn what product you’ll be selling until you pay the $200 start-up fee then they barely describe what you’re doing then they give you a high-pressure sales talk to try and get you to become a top level employee (basically to invest another $4000) and if you just want to start as a distrubutor they are basically done with you. For our $200 start up we were under the impression that we’d receive a 30 day supply of herbalife products to try ourselves so that we could say we’d used them and recommend them to others, but we recieved a 1 day supply of the weight loss supplement, 2 energy packets, 2 shakes, 2 protein bars, a cheapo canvas bag and a bunch of paperwork. So for our $200 we didn’t even get to try out the product we’re supposed to tell everyone is totally great! Lame. Requesting money back, but I doubt we’ll ever see it again. Good luck to everyone else who get’s taken!

Hayley – Yuck!

Has everyone heard of the MLM NFL club – No Friend’s Left club? Don’t join that club. Someone has with Hayley, and bottomline, it does NOT grow a successful business anyway.

August 9, 2011

undecided @ 1:17 pm #

i just spoke with a lady name janet, i was impressed with everything and yes she did tell me wat product i was going to be selling… i mean i could use the product myself but wat im unsure of is the 199.95 that scares me to pay up wat if i lose that money and never get my product or my business up n running… ugh i dont know wat to do… ive read both positve and negative feedback and im still undecided

Okay – so what you are saying is that this is about making money, not buying the product for your health. This is not a good start.

You also have money so tight that $200 scares you – also not a good start when you will realistically need more than that to get your business going over the next few months.

But at least you are asking the question, so treat this like any other serious business venture. Write out a business plan, including projected income and expenses. Then you have a basis on which to decide.

undecided @ 2:27 pm #

did u not read my first line where i said i can use the product for me.. and yes 200 dollars scare me with all these scams going on.. wtf unlike you i live paycheck to paycheck so 200 dollars isnt nothing to you… im glad i didnt give in, and give my 200$

August 10, 2011

Pardon Undecided – yes I did read you can use the product. I’m recommending you stay out of it just like you did. We agree.

It’s not that Herbalife should scare you as a scam, it’s because it isn’t the right business for someone who is that close to the edge financially and wouldn’t otherwise pay that money just as a customer. MLM is a best as a part-time business on the side while you learn and grow a big customer base and downline. Of course people can decide for themselves how much risk to take, but this is CarefulCash.com so my advice is going to be a bit more mellow :)

August 14, 2011

dudette @ 2:50 pm #

@Kris: Hi Kris! I, myself, am an Herbalife distributor. There are 2 possible start-up costs to get registered with the company. (This article is a few years old, so prices have gone up just a tad bit). One is $65 which gives you a 25% discount on any of the Herbalife products. The other is $108 which gives you the 25% discount + $100 in product. These are American dollars, and does not include tax. Depending on which region of the world you live, prices could be a little different. You have 2 options once you are a “distributor.” One is to get a discount for your own good…you do NOT have to sell anything (Don’t let your sponsor talk you into doing something you don’t want to do). Just log online and place your product order whenever you want to. This would just save you money on your Herbalife program instead of paying full price from your coach. Option 2 is to do Herbalife as a business. It is a great way to make money. I work part-time and make $3,000/month. BUT if you are serious about making money, you should look into qualifying for the 50% discount level. It takes about $3,000 investment, but that will allow you to make 7 areas of income…6 of which you can receive whether you work or not. Without that investment, your only way to make money is by retailing a program to somebody (linear income – like a job…trade an hour for a dollar).

Hope that helps!

August 15, 2011

Thanks for the details. If you can point me to where on the Herbalife website it has those latest price figures as you put them comment,I can use them to update this post.

August 18, 2011

Candiauce Klein @ 8:51 pm #

I am an Herbalife distributor and am completely saddened that anyone would be shady in this company. I absolutely fell in love with the products and, me being the skeptic I am, didn’t sign up until I felt a difference. The start up cost is no where near some of the prices I have heard. The largest start up kit per Herbalife is $109(plus handling) and includes the basic products and some samples as well as all literature. If anyone charges more, you need to figure out what all products and what comes with it. Like said above, no self business is grown overnight. I am almost at a year mark and I have made profits. I do only work part time and am more of a word of casual mouth marketer. Most of my product sales come from friends whom have seen results or friends of friends. I highly recommend this company to work for as their marketing program is amazing and I MORE than highly recommend the products. Sit down and have a consult with whomever you are wanting to sign up with and if they sound shady, find another one. Every business comes with pros and cons. You just have to find your right path!

August 19, 2011

dick @ 9:28 am #

herbalife is a good co. and has great products. however if you are left out there alone without a mentor to suggest and guide you to success you are on your own. the mlm help suggested all sounds good but like so many (scams) they don’t mention the fact that you will have to pay to create a web site at xamount of dollars. yes i am a not so happy h/l dist.that is searching for ways to promote the business and the products.everything we have tried cost money and time and little to no results.

August 20, 2011

@Candiauce Klein: Congratulations on your steady results.

And to add to your comment about “Every business comes with pros and cons”, they come with ‘pros’ and ‘con artists’ too. Certainly take the time to do your due diligence on the person you sign up with as well as the company.

@dick: Marketing will never be easy. If something is easy everyone does it. When everyone does it, buyers stop paying attention. When buyers stop responding, marketing need to get more sophisticated or try something else.

Skills like ‘attraction marketing’ and ‘funded proposals’ will help you get profitable sooner and build more lasting businesses, so that is what I recommend for successful MLM marketing and lead generation. Absolutely – get a mentor!

August 23, 2011

Robert DeBeaux @ 11:31 am #

I have taken a bite of the dangling carrot.
I have been searching and reading nearly everything I can about this company. To be honest, there are just as many naysayers as there are ayesayers.
The relative start up costs of $199.95, and the $9.95 Ioffice (marketing interface) plus the recommended (not required) Experian 30 day free trial of internet security, and I can only guess at the website costs are indeed daunting.
I am NOT expecting an overnight success, but I do recognize the Company’s long steady growth, and strict adherence to product quality. In everything I consume, quality is readily noticeable, admired and consistently sought.
I am very strongly considering the Supervisor level, because if I am to use/sell the Herbalife product, I would rather get a 50% return than a 25% return. Plus more products are available to me at that level thus increasing my marketability.
I hope I am worthy of such a challenge, and that I can make it yield the goals I have set.
At 50 years of age, and no real savings or retirement, I hope to make some that will last.
Ready to swallow the carrot and slide down the tunnel “Alice”.

@Robert DeBeaux: In this economy, many, many more people will be looking wonderingly down the MLM ‘rabbit hole’. Welcome!

Get customers, learn MLM marketing, realize it is a complete retraining from a J.O.B. and stay the course.

Don C. @ 1:53 pm #

I signed up as an Herbalife distributor about 15 months ago. I found the products to be effective in helping me lose weight when not much else would. I didn’t succeed in the business end because I lack the traits and skills needed to market as my supervisor suggested,and holding a full-time job along with a full-time college schedule and raising a son alone takes a huge chunk of my time. Herbalife may be pricier than some alternatives, but it is not a scam. It’s like any other venture of its type; if you want a good return, you should invest a good amount of time into marketing.

August 24, 2011

@Don C.: You need time – and you need training. IMO entrepreneurship is natural – job mentality is unnatural. But it takes a ‘reeducation’ to uncover the natural marketer in us all. Fortunately when you want to learn skills, persistence is more important than even time or money. Good to see you on here Don – keep learning, in college and beyond!

August 26, 2011

Kate @ 9:20 pm #

I was a distributor 3 years ago, I believe I paid a total of $300 for everything. They sent my membership card along with with a start up package with samples and a 1 month supply of their diet program. That was my last $300 because I was a full time student at the time so I wouldn’t recommend starting if you don’t have any back up cash. I was not successful at all but I’m not realy much of a salesperson. I did however enjoy almost all their products and still to this day recommend them to people I meet.
If you’re good at selling and are very well connected then I suggest you go for it because most the people I know who have tried it, loved it. I think their only complaint (also mine) is that it’s just a tad bit too expensive but quality-wise, it’s pretty good. I just wished I was a good salesperson so I could have atleast sold enough to keep my membership so I can still buy their products with 25% percent off. Oh well nothing like like a good ol’ fashion diet anyway.

August 28, 2011

@Kate: Thanks for your story Kate. I personally think that marketing can be learned. Robert Kiyosaki recommends MLM for exactly this reason, so as you recommend products anyway, keep a learning mindset as you go, and you never know when an even more suitable opportunity might pop up.

sally @ 5:23 am #

Thanks for your comments Dr Russell. You seem to be very fair and helpful in your ideas. I am still undecided also. I paid the 9.95 for the initial info and have had what seem like lovely mentors call me to invite me/ entice me to be a distrubutor. I understand the realites of starting any business… so i am glad Ive spent the past hour or 2 looking online at comments and views of the general public and distributors of Herbalife. My apprehension is that I feel like I am given information just little by little, I feel as though I am privy to tiny bits of informtaion and each time I move along I find out more costs and all of this before i have even tried the Herbalife products. I currently work in the health industry (part time) so I feel as though it could be right up my ally. However my main concern is why is everything NOT completely TRANSPARENT from the outset??? And my only conlusion is that if we were told everything up front we would probably freak out at the cost, the idea of recruiting (sales) and the uncertainty of the networking setup that most people would run away. Sometimes you need to take a chance and give it a go strive for your dreams, I just dont know if this will help fulfill my dream or just cost me a lot of cash lol.

@sally: To be completely transparent from the outset you would end up with the same amount of overwhelming information as if you were buying a franchise like Subway or McDonald’s. MLM is just like any other small business in the amount of information you COULD want before you begin.

The ‘freak out’ is simply the fact that 95+% of distributors in any MLM won’t make their money back. This is CarefulCash so I don’t recommend spending money you can’t afford to lose, and you don’t need expensive programs to be successful anyway.

If you want to make it into the 5% that are profitable and the 1-2% that have ‘freedom’ income so you can live your dreams, then a great company alone is not enough. You MUST get more skillful at marketing your MLM and helping others do the same. That’s the reason I wrote this post, and this entire blog in fact. IMO it’s a more useful skill than learning how to ace job interviews :)

September 6, 2011

Jae @ 7:15 am #

I used to be an Herbalife distributor. It’s not as easy as they make out. I left for my own personal ethics.

Firstly, I was not very impressed when I discovered that some of the ingredients in their skin care range (at least at the time when I was involved with them) were harmful. Noteably, Sodium Laurel Sulphate, which is a cheap foaming agent. When I questioned them on this, the answer I got was, “well, it’s in EVERY skincare product that you buy from anywhere!”

That is not true and was not at the time. I had discovered several alternative companies who supplied skincare products without harsh chemicals in them. So I felt that 1) it was not ethical of me to promote a product that contained substances I knew to be harmful and 2) it was unethical of the company to make such false claims. It seemed clear to me that they had either not researched the market properly or where setting out to deceive me with such a comment.

My second reason for leaving was that I did not need to lose weight, but was encouraged to take the product anyway, so that I could sell it. Whilst I have no doubts that their weight loss products do work ~ when taken as part of a calorie controlled diet ~ I did not feel it ethical to push people into using weight loss products when they did not really need them ~ just like I was pushed into.

This is the reason why I would not ever consider an MLM or other business opportunity, whose product is weight-loss, because I feel that they all do the same. Selling weight loss products to those who don’t need them, just so that you can get your commission cheque at the end of the month, to me is highly unethical!

Another reason why I would not recommend Herbalife as a business, is because I have since found better compensation plans. Herbalife is by no-means the best or highest plan in the industry. In fact, in my opinion, it’s one of the worst I’ve seen!

September 7, 2011

@Jae: Thanks for letting us know your experience Jae.

Right now Herbalife is being promoted in a big, big way by some of the distributors. One person contacted me after he had responded to an ad on MSNBC – and had had to ask directly what the actual company was!

If the company says anywhere that “Sodium Laurel Sulphate is in EVERY skincare product” I would be surprised. Seems like this was just one of a series of issues, many of them to do with feeling uncomfortable with how you were sold to, and told to market to others.

As to the compensation plan, congratulations on getting to a success level where that is a factor to consider, but even if it changed its plan, Herbalife wouldn’t work for you. Another reminded that lasting success means have a product/service/company you can honestly recommend.

September 14, 2011

Harry Walters @ 7:29 pm #

@Phil:

Learn how to spell! Then maybe people will take you seriously!

@Harry Walters: I spotted a spelling mistake in one of my own comments above. I’m in trouble!

September 15, 2011

Jae @ 1:29 am #

@Dr Martin Russell: Thanks for your comments. On reflection, I think perhaps I was being a little too judgemental on Herbalife. That being said, I have had the same response about Sodium Lauryl Sulphate from several distributors. Frankly, I do have an issue with what goes into products, regardless of whom it was made by.

As regards the comp plan, I do feel it is important to have at least a modicom of an understanding about the plan that your company is offering. After all, you wouldn’t take a job without know how & when you were going to get paid. Same applies with MLM, or any other business model.

As to @Harry Walters‘s comment, I would ignore that if I were you. It’s a typical tire-kicker comment, and not worth responding to.

@Jae: Distinguishing the company from the behavior if it’s reps is often difficult. And also you’re certainly not the only one who has an issue with Sodium Lauryl Sulphate.

Most reps won’t make enough sales to even hit any comp plan issues. Basically all MLMs pay something for your results, and unless someone already has a track record of going big, the time spent on the compensation plan is usually procrastination time in my personal experience with my own team-building.

And as to Harry – yeah, I write not for my commenters so much as the readers who never comment at all. Taking action is more important than getting the spelling right.

giovanna sandoval @ 3:17 pm #

i am a distributer. when i started out i was skeptic but seeing my supervisors results i was all in.i paid 95 bucks for my fee and thats because i got the big sample bag which ended up saving me 100 on my basic kit anyway. i had migranes, depression, stressed out, no energy. we have 3 really active kids so i was struggling alot. now its been about 2 months. i havnt sold much but thats not why i joined. i joined so i can get my 25% discount. ive never been happier or more energetic. no stress lots of energy. my kids love the products as well. the milk shakes and aloe water and especially my teas. the total control is my best friend. im happier now than i was 2months ago and so are my kids and husband. i give my famz the lift off tablets when i see them tired and my best friend at school loves it in the morning. its healthier and i am one of many examples. if it doesnt work for u ur not doing something right. maybe exercise as well but i dont even exercise and im loosing weight and feel great. there isnt really proof but yourself when u try it. u are the proof. thats how i see it. i love talking about how great i feel because i havnt felt this good in years, yes im happily married but since the recession hit i was depressed. taking the product helped me enjoy life without all the materialistic things i used to think i needed. selling it for a living full time isnt for me i dont have the time but here and there works for me. i dont lie either.

@giovanna sandoval: A great customer story there – and perhaps on the side it may create an income too. All the best for yourself, and your family.

September 19, 2011

Jae @ 1:15 pm #

@Dr Martin Russell: I did actually read on the Herbalife website the comment about SLS being in “all” skincare products. That’s what put me off. It appears to me that the distributors were merely repeating what they had read &/or heard from the company.

Regarding comp plans, I would have thought that that’s the FIRST thing anyone with any sense about them would look at. After all, like I said previously, you wouldn’t go into a job without knowing how, when & how much you were going to be paid. Neither would you start a traditional “bricks & mortar” business without having an idea of your profit & loss forecast. So why should it be different when joining a MLM company?

Learning at least the basics of any comp plan I would have thought is part of one’s due diligence. How many people actually do do their due diligence before joining an MLM or other business opportunity? Maybe that accounts for the high attrition rates/failure %ages in MLM?

Jae @ 1:34 pm #

@Kate: Being a good salesperson is one of the biggest myths about MLM. It’s NOT sales, it’s MARKETING. There is a VERY big difference. If you didn’t get any customers, then you either weren’t doing any activity or ~ more likely ~ you didn’t receive any/enough training &/or support from your upline.

When I was with Herbalife, I found getting customers quite easy. I did it ALL offline & my phone was ringing.

That being said, what I found was that most of my weight-loss customers were the typical “yo-yo”/fad dieters, who’d “try” the products, lose the weight and then, instead of completing the program by going onto the Maintenance diet ~ as I advised them to ~ they’d immediately go back to their old eating habits and end up putting the weight all back on.

I don’t know whether that’s a UK thing or a worldwide dieting thing, but I’m yet to meet anyone who’s actually stayed with one diet or healthy eating regime long enough to establish the permanent results they desire. “Yo-yo” dieting seem to be too common.

September 20, 2011

@Jae: I can’t find reference to SLS on Herbalife’s website.

I wish people did more due diligence like you said, but it’s more like how many people read the entire union/wage contract before they sign-up for a job? Very few I suspect.

September 26, 2011

Dawn Balsamo @ 10:23 am #

The ads for spending $9.95 S&H to receive a “package” that will give you more information about working from home is an “independent third-party company”, according to the BBB. It looks like there have been a few complaints from people who have spent the S&H. The “third-party company” has taken out the authorized charge then goes back and makes unauthorized charges as well as giving the run-around when consumers request refunds.

I filled out the form online but put my phone number in to be called (smartest thing I did). I was called last week then set up a call for today. I had a few red flags go off.

1. No company name on the web site other than “Grow Your Own Income”
2. No information as to what it was and no contact info
3. Web site says it has an A+ rating with the BBB
4. The S&H cost to send out a package with 14 days to review before being charged thirty something dollars for
5. The run-around with the person I spoke with on the phone. He wanted me to get the information package “first” and “then” all my questions would be answered. I finally got him to tell me that it was for Herbal Life at which point I said no. I’m not interested.

However, I do need to point out that it’s not Herbal Life that is the problem. Herbal Life is the company that has the A+ rating with the BBB not the third-party company. This “independent third-party company” is the one that is falsely advertising. All the complaints were with the third party company and was forwarded by the BBB to Herbal Life.

I in no way work for either company, I just did some research with the BBB to find out the above information.

Susan Cordell @ 5:09 pm #

Are you kidding me? Where do you, Dr. Irfan, eat a healthy meal for under $3 and get all your minerals and vitamins plus 24 grams of protein in one place? Herbalife doesn’t put products in the “market” as you say because 73% of what the company brings in is paid out to its distibutors, not in advertising. Do you get to keep 73% of what you charge patients?

Sam C. @ 5:19 pm #

Hey Doc.

I have a lot of mixed feelings about this. I met a distributor/health coach (Karina) or whatever the proper term really is, at an airport when I was dropping off a friend. She asked me if I was into health and would like to be a “health coach”. I told her was always interested in the subject when it comes to training, getting fit and eating right. Being a high school athlete I was always doing something and out of the house. Whether it was surfing or running or longboarding or bike riding. So I grew up loving sports and being just fit and in shape.

Our first discussion about Herbalife was her story on taking the products. After giving birth to her 2nd daughter (recently) she was having serious intestinal problems, eating like an average person wasn’t a good option. Her friend got her into Herbalife, tried the products, and now she feels great and better than ever. She’s extremely out going, working part time and another job and very open and friendly. I have also met some of her clients who are on the products and are having success.

I’ve thought about being a trainer/distributor because I like helping people when it comes to getting in shape. I have friends who asked me for good work outs at the gym. I’d show them and go with them. Teammates younger than me on my wrestling team would ask me how to do a move, drill and/or a work out. I’ve coached them. I was happy to help them become a better athlete… and help them win matches in tournaments! When I started training at a MMA (Mixed Martial Arts) and BJJ (Brazilian Jiu-Jitsu) gym, I’d help people improve on the wrestling parts. Takedowns, defense, drilling for wrestling, other moves, etc. And they’d get better at it! This year I’ve eaten healthier than I usually did before in the last 2-3 years and I’ve been feeling better this year. I’ve tried a few protein shakes by Herbalife and they taste delicious and I do feel better than I would after a normal, healthy meal or my usual protein shake.

Would the job pay good? After I get a few clients going, yes I think so. Demand more time than my other job would? I can work 10-15 hours a day which is considered part time to Harbalife, I get to make my own schedule and still make money. Is my trainer getting money for bringing me into this busniess? Yeah probably. Personally, I’d like to have this job if I will make good money because I want more financial security and to pay for my paintballing. (Very expensive…BUT FUN! ;P) And because I like helping people get in better shape and help them achieve things. I saw my boys back in the day lay it down on the line, and conquer. I’d still like to see something similar to that.

There’s only one thing that scares me about becoming a distributor. (I bought my starter kit plus a few other things for the price of $124 last week. The whole training is free!) My parents got sucked into a company called Quixtar which is no longer functional. A company very similar to Herbalife. They lost a lot time and money into this business and gained not a penny back. And unfortunately they’re still working hard. I don’t want the same thing to happen to me. And if I do get into Herbalife, I pray that it doesn’t screw me over badly, especially because I’m still very young and learning.

Would like to know your opion.

Thanks

September 27, 2011

@Dawn Balsamo: Nice work Dawn – good info and well balanced. Thankyou.

Such companies, if they are legit at all, are basically selling purely the ‘make money’ aspect of Herbalife, and MLM done that way has all sorts of dangers in it.

@Susan Cordell: Just to check two bits. 1. “Dr. Irfan” may not be a medical doctor. He may be a real doctor ie a PhD. 2. 73% seems a bit high, so please give us a reference for that figure.

@Sam C.: Let me treat you as if you were a paying client of mine – ie I may not tell you what you want to hear, but I will not lie to you. Please take what I say in this light.

I would guarantee that on your current path you will lose money, and not just because 90+% of people in any MLM will fail to make money.

However worse than losing money, you are at great risk of ending up like your parent’s story ie becoming bitter from your experience and blaming the company, the industry, and/or your own stupidity.

My advice is keep learning! You can start by read the two MLM quotes here from Robert Kiyosaki – and then getting his book.

Well done in asking for guidance BTW. Keep doing that.

September 28, 2011

Tammy @ 11:13 pm #

I am on the brink of deciding whether to join this business or not…told my coach (to-be) that I would give her an answer tomorrow. I am extremely nervous about getting off “the Fence” and taking the plunge. I am completely attracted to the company via the online marketing system that means that I don’t have to depend solely on my small town and family for success. I am keen on working my own hours as well. I need a job that will bring income to my family although I’m not the main breadwinner. I don’t know very much about computers at this point but am a quick learner, if I have the proper training. I have come across some advertising for “making a successful online business” off the internet which would be outside of the herbalife training as well. These are things that I am excited about. However, the gamble of the expense is quite high for my family. I am attracted to making the money and would want to get directly to the supervisor position. A downfall for me is that I really don’t know anything about the product except for what I hear and read about it. Reading these comments hasn’t alleviated any of my concerns but hasn’t brought anything to my attention in the “con” department that I haven’t already thought of myself. I understand that any small business is a gamble but I’m just so nervous about the “unknown”. Perhaps I am rushing in to it but I don’t think that my concerns would dissipate with time???? Any suggestions….?

September 30, 2011

@Tammy: This line makes me VERY nervous “I need a job that will bring income to my family”. IMO MLM should be a part-time business on the side with money that you ‘invest’ in yourself and are fully prepared to lose. And the difference between a ‘job’ and having your own ‘business’ is a huge one.

I’m not you, but I would seriously suggest you hold off, take a step back and reevaluate.

I’m sorry if I didn’t reply in time for your deadline.

October 3, 2011

nerak @ 6:55 am #

I’m on my 3rd week on giving these products a go. I’m did my own research and then discovered knew a distributor already. I bought products and received back up support. After the first week i was told the products are safe for toddlers and a good way of giving them nutrition as well as their other food(not instead of). 10 days in i was being offered to be a distributor and save myself money on my own products. I declined saying i knew nothing bout nutrition and was told that i didn;t need to, you gain knowledge as you go. I have lost some weight and it has been useful in my own food intake but i’ll not be doing this for life – which is what they want you to do.

October 5, 2011

Piers @ 2:49 am #

Hi everyone
Im in the U.K and found a job, working from home, selling a new sports range. Im currently speaking to an employment agency about this opportunity, so im not sure if its the same distributer job your all talking about. The company is herbalife, but as of yet noone has mentioned an initial investment though. My main concern, is will this involve cold calling or will it be responding to enquires. Plus, do you get help with the cost of calls? Calling 100 people to get 1 sell is bad enough, without having to pay for the calls yourself!
Any help would be great
Thanks
Piers

@nerak: All the best with exploring further, and taking it bit by bit. Congratulations on your success so far as well Nerak.

@Piers: Great questions!

I would be HIGHLY sceptical of this type of marketing. There WILL be a cost (otherwise they couldn’t pay for all the marketing they are doing). And the term ‘employment agency’ sounds suspect. And finally, if so much is being kept hidden, you’ve got to wonder. Keep digging, and I’d be interested to know how it ends up.

October 6, 2011

Alisha @ 8:01 pm #

I just went to my first meeting. Drank a glass of the lemon tea, which I LOVED! Gave me great energy! I was sold on this company with their presentation and the tea. I paid $59.95 plus tax for the mini kit. Gonna try it out for a part time income. Hopefully I can make my sales! :)

October 10, 2011

daniela @ 2:30 pm #

with all respect cesar rodriguez with 4 dollars you can still get a good breakfast and get some fruit and yogurt or cereal wich I believed are natural and healthier.

October 11, 2011

gary @ 11:04 pm #

@Evelyn Funke: Ripoff merchants that do not tell the whole story. $345 start up fee, $100 REGISTRATION FEE. $50/MONTH WEB FEE, $100 web upgrade fee and no answer when I asked how much are the upfront costs,fees,charges etc are going to total. Very shady mob that doesnt like to be honest.

October 12, 2011

JC @ 10:35 am #

I once got involved in Herbalife several years ago I was charged $358.00, never received products, just an application which I filled out and returned to sponsor(upline), I contacted the Herbalife home office which is in Scottsdale, AZ, they never received the application and the upline gave me the run around. Never got my money back. AT the time I should have contacted the BBB, but was very business working a 9-5 job. Now I see they have a different approach, they do radio spots, you paid $9.95 and they fedex you the so call kit, once I received the kit and by the way they don’t tell you it is Herbalife, you get that info from your upline after the telephone inteview. Well I will not participate ever. It is now $199.00…no dice, Been burn once.

Lots of these comments are pointing out the importance of the individual you sign up with. It is just as important to check THEM out as it is the company.

The radio spots won’t be from Herbalife, they will be from an individual distributor or group of distributors. Their ethics can vary greatly from the company, and the company can only shut them down AFTER problems have arisen.

October 13, 2011

disha @ 3:26 am #

@Kris: hey whomsoever askd u abt 500pound r fake because the starting price is just 50$ he or she may be fake ppl who want ur hard earned money so ignore these kind of thngs nd ppl directly contact to company

Dawn Balsamo @ 4:00 am #

@Dr Martin Russell:
“Their ethics can vary greatly from the company, and the company can only shut them down AFTER problems have arisen.”

Which I’m surprised has not happened yet. All the complaints on the BBB’s web site are for the third party company not Herbal Life. I don’t know if the BBB has investigated this company or not. If so, I’m hoping that it will eventually lead to this “third party” being shut down. If OTOH, Herbal Life is aware of this due to all of the complaints and intercession on behalf of the customers from the BBB, then why are they still dealing with this company? It makes no sense.

disappointed @ 11:15 pm #

I opened an email and read about this amazing opportunity. I decided to look into it, but I could not find any information. The steps it tells you to take is Step 1 , click to get your FREE information. You fill out the info, and then are asked for MONEY!! That is NOT FREE! Step 2, Click on that tab, you then are asked for MORE MONEY! I got a call from my “mentor” and yes I did receive my training package, which by the time I was done reading and watching the video I still had NO idea as to what I was being asked to do. Then I got a call tonight, and had to spend another $200 just to find out what I was being asked to do. I love this idea, but it shouldn’t cost me $250 just to find any information out! I work 16 hour days, and am looking for a little financial relief, so I thought I would give something new a try. I did NOT think that it would end up costing me $3000-$4000 to get STARTED! I cant afford that. When I looked into it I knew there would be some costs absolutely, however, that is way too much at the time for me. I wish you all best of luck if you choose to go forth, and I wish I was there with you. Its very disappointing to have to pay SO much money ($250) just to get the information. And yes I was a fool to pay it, but I have 3 hungry children to feed and was hoping for the best…. There is always the money back…right?!?!

October 14, 2011

@Dawn Balsamo: This particular style of ‘hiding’ Herbalife seems to be having a solid run now, but it causes the problems you are noting.

I’m not an insider to know how Herbalife are addressing this, but you can still join the company through a distributor that is upfront with what it is all about. The distributor only version is exactly the danger addressed in this post on MLM.

@disappointed: I hope you get your money back. This economy will create more people in need and more scammers ready to pounce.

This is Careful Cash, so here what I suggest you have in ming if you are serious about making money online.

Dawn Balsamo @ 4:10 am #

@Dr Martin Russell: I’m not into those kind of things. So when I was finally told it was for Herbal Life, I told the “mentor” no thanks.

Dawn Balsamo @ 4:18 am #

@disappointed: Check the BBB’s web site first. When I looked there were a lot of complaints and people did have problems getting their money back from the third party company. It took the BBB forwarding the complaints to Herbal Life before consmers got their refunds.

I’m the type that can be very cautious at times. Especially when someone is asking me to spend money and not giving me any or all of the details. That sends up an immediate red flag to me. When the “mentor” I was talking to finally told me it was for Herbal Life, I told him “no thanks”. I’m not into that type of stuff to begin with. I think he was a bit shocked. I guess most people he has talked to jumped on it. Sorry,but you’re not getting another sucker to shell out money to you.

October 19, 2011

@Dawn Balsamo: Sorry, you said you has responded to a way to be “working from home” – and that was where I was on about too.

October 24, 2011

Moby @ 11:39 pm #

Yo, I’m young and enjoying life and have jumped into MLM recently to try and generate part-time income along with my regular job. I’m a distributor – yes, I did pay money for it. But I think EVERY good business needs an initial investment. Don’t get me wrong, I’m in no way a biased or brainwashed Herbalife zombie like I know most of them are, but I do recognise the realities in starting up an independent business. You HAVE to invest, and you HAVE to have faith and you MUST be willing to learn and get to the top. Determination is key. Such factors are the foundation of your business. I’ve noted most of the failed stories I’ve read about this company and it sounds like most people just didn’t have the motivation and/or funds to start up their own business. Some people just need to accept reality – you can’t just jump into a business like this and expect to have everything come to you. It takes not only an investment of money, but also an investment of time and patience. I’m at the beginning of my Herbalife journey and I’m going to be realistic here. I can either barely turn a profit, or I can hit the jackpot and reach the top. It all just depends on how much work I’m willing to put in. Simple equation of life, folks: what’s put in = what comes out. By the way, I’m only 19 so I guess I’m not old enough to be a Herbalife zombie yet haha, it just sounds to me that a lot of people rush into the business expecting it to be a get-rich-quick scheme. Yeah, here’s another harsh reality. Nothing in life comes easy like that. You have to work for it. I’m still fresh and even I know that. Let’s be realistic here folks, and have a nice long think about what you may be jumping into.

October 25, 2011

Michelle Karaffa @ 9:27 pm #

@Leslie Golson:
Hi Leslie, I am reading this blog to learn about Herbalife. I am in a different ******* business, that according to the info I am gathering far better then Herbalife [...] feel free to contact me [deleted]

[Editor's note: I'm just leaving this here to let people know this is NOT suitable on this blog, and that knocking other companies to make your own look good is NOT the way to market. There are much better ways to market your business.]

October 28, 2011

@Moby: All the best for your learning curve Moby.

MLM has been described as a “get rich slow” scheme, and it works much better this way.

If someone is wanting their MLM to bring them quick money, they need to either be an amazing marketer (so they will already have lots of money anyway) or they need a better plan

November 28, 2011

Aggravated @ 1:40 am #

I would like to know why people with Herbalife feel that they have to be not only completely dishonest, but prey on people to get employees?

I am getting help from my state’s vocational rehab office due to medical problems. Someone sent an email to my state claiming that they were from a company called “mylan united” and stating that they wanted a financial manager. I turned in an application and I immediately knew something was off when they said they would bypass my interview and hire me if I sent in a fax with my signature on it and a copy of my state ID. I did so and now am praying I won’t become a victim of identity theft.

The reason I say this is because after that, I got an email from someone named Jason but it was from a totally different site called “Leading income.” He said that I contacted him asking for information about a Premier Business and that he would send me an information kit in the mail. I then got a barrage of phone calls (some 15 minutes apart and even at 9 PM on a Saturday) and several emails asking me “When should I call you?” I finally wrote him back to inform him that I never went on any “Leading income” site and that I am not interested in selling Herbalife and then he conveniently and suddenly clammed up.

Why would someone dare to contact my state’s vocational rehab office with something fake? How dare you prey on people who have been out of the workforce for a while, and some who even have cognitive disabilities and may not know better? Setting up a completely fake website with a fake job description is despicable and it goes above and beyond aything I have heard of this company doing. I have checked several sites and fortunately, so far I haven’t heard of this happening to anyone else. But somebody needs to be aware that someone at Herbalife has taken a drastic turn for the worse. I am disgusted by this and have no interest whatsoever in working for someone who would add an even higher level of deception and send out bait-and-switch emails (changing from economyjob to the leadingincome domain) to government officials! Some people may not be as skeptical as me and of course would trust someone hired by the state telling them about a job opportunity. I am pretty sure that it is illegal to do something like this!

@Aggravated: Aggravated indeed. And for good reason!

At best this is very poor marketing. It will NOT create a successful MLM because who would want to duplicate this horrible, and yes quite possibly illegal, marketing mtthod. This is not what Herbalife is about.

I hope you end up with no identity theft etc, and thanks for letting us know about this wake-up call.

December 16, 2011

Kathy Kaser @ 12:58 pm #

@Evelyn Funke: Evelyn I too was ignorant, the investment prices in the above article are not the prices I was told I would need, to make a looong story short, I am disabled and was taken advantage of NOT by Herbalife but by their marketing company OBS (Online Business Systems) It took me 14 days of being a full fledged distributor before I realized that the marketing side was not as honest as I thought it should be.
I canceled my account with them emailed my coach who by the way acted as a great friend until I canceled my account. I emailed her on the evening of the 14th and she has yet to reply to my email.
Good riddance to OBS, I will still be looking to get the Formula 1 shake protein powder and aloe concentrate powder, they are great products.

@Kathy Kaser: Nice work in distinguishing Herbalife from the others who market it. Your ‘coach’ probably wonders why her business isn’t panning out like she hoped. Hope she find this post.

December 26, 2011

Tina Ristine-Freethy @ 4:13 pm #

I am NOT interested in being a distributor but in just ordering the products from a friend I already know really well. He is willing to give me a 10% discount on the products so I can loose weight and be healthy again. I am over 100 pounds overweight, my back, knees and side hurt me all the time. I just want to loose weight. Is this safe for me to do?

December 27, 2011

@Tina Ristine-Freethy: Safe medically? Sorry I won’t give that sort of advice on a public forum.

Safe in MLM terms? Sure. But remember, if/when you get weight loss results and rave about them to your friends, and answer their questions about how you did it, you need to be happy that you are creating eager buyers for your friend’s business. I’m sure you’ll BOTH be happy with that though :) Enjoy!

January 5, 2012

Valerie @ 2:18 pm #

Dr. Russell,

I’ve used Herbalife products for about 6 months. They seem like good products and I have gotten good results for weight loss with them. After my random online research, I would have to agree that the actions of individual distributors’ recruiting methods are a big problem for Herbalife. I was introduced to the products via a Nutrition Club that advertised events on a meetup group, but I was looking for weight loss not a business. I accidentally moved into the business side when people asked me what I was doing to get results and just through talking to friends about different products. I never intended to be a distributor; I just wanted the discount, but I won’t turn down a little extra cash :) .

Herbalife’s claim is that 73% of the money charged for the products is distributed back to the individual distributors, but that doesn’t mean that most people will make that much. The most money that can be made selling retail is 50% and the other 23% is returned via dividends and bonuses to people with downline support. Best I can tell, the only way to make more than the 50% retail profit is to have downline distributors.

And this has nothing to do with Herbalife, but I love the way you run this forum. It’s respectable and polite and actually allows people to share information and get advice that isn’t politically driven or mean spirited. I wish I found more places on the internet with this atmosphere.

Thanks,
Valerie

January 6, 2012

olga mendez @ 1:29 pm #

@Dr Martin Russell: Iam a new distributor of Herbalife. I live in Argentina. I am really strungling trying to sale the products and get distributors. I have no
experienced about bussines. It really encourages me to now about the method of Mike Dillard. What I would like to now is: The price of books and cds.are paid in dollars or pesos of Angentina. Thank You for your answer. Iwiil be waiting desperately!!!!!!!!HAPPY NEW YEAR!!!!!!

January 9, 2012

@Valerie: Good to hear your personal results with Herbalife, for weight loss and earning a bit of extra cash too. Yes the next step up to building a distributor downline is another change of mindset, because no matter what the ‘make money fast’ people say, MLM is a 2-5 year plan of consistent effort and skill development.

You can earn money faster along the way, but it takes a different money-making plan.

And, on your side note, thankyou for the feedback. I try hard to keep this as a safe place for everyone to contribute. People who are searching out these topics need proper support.

@olga mendez: Congratulations on getting started, and searching out quality solutions when (not if – it happens to everyone) you get stuck.

All Mike’s stuff (Magnetic Sponsoring or MLSP) is in $US only :(

February 20, 2012

Emma @ 4:40 am #

My friend was a Herbalife distributor. Thanks to Herbalife he is now £6,000 in debt….in just over 6 months. They encourage you to buy more and more products by making claims that there is a huge demand for wellness coaches and a huge demand for the products…..except there isn’t, it’s just that the more you buy the more you feed the top of the Herbalife pyramid….err except sorry of course this isn’t a pyramid scheme as that would be illegal (!!) lol!

He was led to believe that by purchasing more volume of stock he would get 50% discount on the products. which is true mathematically. But he was dilligent (albeit too late) to calculate “true profit” which actually works out about 37% due to the fact that Herbalife slap on a load of freight, postage & handling costs on top of the cost of the products which amounts to 13% extra cost!!. Add those on to your products bought at 50% and the true profit is NOT 50% at all which means he had severely underestimated the number of customers he needed every month to make the profit he needed to make a reasonable income.

The other sad thing about this was that my friend started in this business because he is generally enthusiastic about health, wellbeing and nutrition. Herbalife couldn’t give a monkeys about health. They want you to recruit recruit recruit, build a team of your own so that you (and your upline sponsors) can make money from those poor people at the bottom level who are pouring their money in to the products because they’ve been brainwashed in to believing all the crap about huge demand. Yes there is an obesity epidemic and yes it’s getting worse but i’m sorry it’s not like there’s a whole nation of fat people out there saying “if only I could find someone to sell me a Herbalife shake!!”

Jus my opinion…..but am painfully aware of what it has done to my friend and his health as a result of the debt he is now in…..how ironic!! would I become a distributor? over my dead body!! are they good products – yes I belive some of them really are but they are very expensive and consequently difficult to sell hence their need to operate through a MLM scheme.

@Emma: Okay – lots of legimiate issues there. But be careful what you lump together.

The clash of ‘recruit, recruit, recruit’ versus get customers is a key MLM issue, and it seems like your friend got caught on the Ponzi scheme side of it. Unfortunately some Herbalife teams and distributors seem to be Distributors-only focused eg the ones that don’t tell you what the company is until you have already paid.

Buying too much of your own product is not encouraged by the company. They know it can be both illegal (‘frontloading’) and damaging to a sustainable business.

Still, £6,000 is a LOT of product, and I thank you for putting up this warning to other to do your numbers and follow a proper business plan.

February 23, 2012

Luanne @ 1:58 am #

I love the Herbalife Products, so, being a distributor saves money – I don’t buy retail – and I don’t hard sell anyone. In fact, through blogging, the business shows up in my email or my driveway. Amazing magnetic sponsoring. Its really exciting, but then, I have a professional job and am not desperate to make it selling Herbalife a full time business. Sure do enjoy creating blogs, though – and I’m so much more healthier on the products.

Lizzie @ 7:56 am #

I am an Herbal life distributors and I must say That I jut love the products
I lost 4 lbs in 5 days and another 12 lbs in 2 weeks.I have never felt so happier and feeling great in my whole life.I have been overweight since I was a child.But now Herbalife has changed me
I must said that if you are becoming a distributors to make money it will be very hard if you don’t use the products yourself and have clues
your results will make your friends and families try and buy the products at first,then help you establish a clientele,then open up your own clubs to sell the shakes and help people loose weight.
Your weight lost pictures will speak for yourself and make you sucessfull
also, you must have a heart for Business not just like someone who wants to make money in one or 2 months.
I am a Nurse(RN) and my salary is more than $12,000 a month from Herbalife.
I work at my Nutrition club for Herbalife early in the morning and works at the hospital at night.I am planning on making more money by next year,keeping up in shape, by taking my herbalife shake,lots of energy with the herbal tea and keep up my weight.
It is very sad to see how some people are saying bad things about that company when they don’t have the marketing tools and skills to be successful instead of blaming themselves they are blaming the company.

@Luane & Lizzie: Congratulations to both of you on finding the personal results, and then developing the skills to get the business results as well!

April 25, 2012

Suz @ 10:43 am #

I was involved with said company (the one I entered this blog to read about). The person who introduced me gave me free samples to help me get in shape. I was skeptic,didn’t take the samples. I wanted more info. When I didn’t hear from her I took it upon myself to research. I found them in the phone book, and the man I spoke to invited me to a meeting to learn about products. I told people at the meeting about the samples/and my first contact. They pushed me like mad, would not leave me to think. They encouraged me to buy the box-kit, and that if I still wanted to return to the first contact I could–just that I’d have lots to read-information-which I was there to receive, and full size products to take if I decided to. They told me it was refundable. I felt like an idiot-when–I found out my first contact didn’t get back to me-because of a crisis in her family-her husband had a stroke. I learned that I could not return the product because the kit was an agreement to be a distributor. I could opt out of that, but could not join her for years-once that contract was initiated. I took the products, loved them. So.. I decided to work it. I shared extensively, and moved up marketing to friends/family and strangers. My upline–were pushy and rude, and hated me. It was like a thorn in my side. Eventually, my own fault, I dropped out. I stopped the products. The 71 lbs I had lost, that my upline said was a lie, ended up coming back after about 3 years. It took that long to undo–the excellent nutrition I had put in my body for 1 or 2 years. One thing that I didn’t like was the phantom money issue. The company sent me a 1099 based on retail price. I had to go by that to calculate tax owed-though in all reality–you only make the percentage you are entitled to-and it fluctuates-up and down depending on sales. You cannot deduct costs from the gross, unless you have earned enough to be able to use that status with the IRS. So if you are a low earner-you lose everything you put into it, plus the difference between your costs and taxed gross.

@Suz: Wow. Lots of lessons here, so thanks for posting, and all the best at getting healthy again.

Also, everyone’s tax situation is different, so I hope you got some expert advice because the general principle is that a business can still claim deductions even if it is not in profit overall.

Suz @ 10:12 pm #

Ty

May 7, 2012

Sophia Vu @ 12:51 pm #

i’m a massage therapist. Working all day wash me out completely. I always feel tired. My friend introduced me to Herbalife, i saw the commercial on my vietnamese channel too but never actually pay attention before. But now after i do research, and saw lots of my mom’z friend taking it. I ordered shake and nutrition pills for my me and my little brother too. After 3 weeks of taking it. I feel great, i always have energy, but always thirsty tho, so i drink lotz loz of water, itz because of the pill i thinkl. But as i drink loz of water and when i go #1. Itz really yellow, my brother going thru the same thing. and As i noticed. his acnes started to dissapear. yes, no kidding. seem like the product pushed all the toxic out of our body and push our metabolism. my face looks fuller instead looking tired and skinny. I feel great. get lotz of compliment about my skin and my look lately. Friends ordered diet program package, shez lotz some weight lately. she said: the first 2 weeks, feelling weird, not well but she continuing taking protein shake and the pills. She feel normal after 2,3 weeks. and since then. she said Herbalife really work. I myself using it and i can honestly say. Every product have good and bad review. Try it and see it urself. I now introduce to all of my clients and my relatives about the product. but 8 out of 10 of them knows and heard about the product already. really impressed. I will continue taking their product. I’m happy with it. I believe i rather taking vitamin, protein, nutrition stuff and be healthy more than let my body gain weight, feel tired, lack of vitamin. Things will go bad when the body is not healthy, then doctor give us lots of pills! those pills are bad too so why not try taking supplement instead of those killing pills????? very confusing. People never listen to their body! have faith and trust, try and see.

Sophia Vu @ 12:52 pm #

oh and sorry for my english, such a fob T.T

May 8, 2012

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