Herbalife Scam: Let’s Review The Claims

by Martin Russell on March 4, 2011



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.

PS: This is a drop dead simple, paint by numbers system to help you get more leads, traffic and signups into your MLM, get your $2 trial here (while it is still available!)

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