The HerbaLife Scam
83Have you heard of HerbaLife, or do you even sell its products? If not, then let me tell you about the Herbalife scam.
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 "Lose 30 lbs Now, 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.
Back when I was unemployed, I toyed with the idea of joining HerbaLife. Little did I know the company history or the other questionable business practices of this firm. However, after doing some online research, here is what I found out:
HerbaLife was founded in 1980 by Mark Hughes, a guy who, at the young age of 44, was found dead due to a likely drug overdose. Still, HerbaLife continued on, and is now almost 30 years in business. As of this posting, the HerbaLife company states that it has over 1.8 million distributors in about 66 countries. The company is even on the New York Stock Exchange (NYSE: HLF). Annual gross sales for HerbaLife are roughly $3.5 billion, though they may have taken a hit due to the recent recession.
HerbaLife sells all kinds of vitamins and other nutritional supplements. There are shakes, protein bars, weight loss products, herbs, even meals replacements.
Do you like what you hear so far? Would you like to buy some HerbaLife vitamins? Well, you can't. First, you need to become a distributor.
HerbaLife makes the big bucks not by selling nutritional supplements, but by recruiting folks to become distributors.These distributors buy up a certain lot amount of the company's products, sample them, and try to sell them. More importantly, though, the newly-minted distributors are "encouraged" to recruit their friends and family (and anyone else they know) to become distributors too. And when I say "encouraged", I mean that the company will pretty much twist your arm in order to have you find new recruits. Weekly meetings, HerbaLife newsletters, company-wide e-mails, etc., will all repeat the company core motto until it comes out of your ears: recruit, recruit, recruit!
Of course, there is an incentive to finding new distributors: a portion of their earnings on products gets kicked up to you. And likewise, part of your earnings get kicked up to whoever recruited you. And so it goes, until the very few people at the top of this pyramid scheme rake in the big bucks while you drive around in your car with big boxes of muscle-building protein powder. It's multi-level marketing (MLM), plain and simple.
What are the costs for this pyramid scheme? It takes around $220 to enroll in the HerbaLife scam, er, I mean program. This money pays for your enrollment, your first pack of product, and also some samples for you (since distributors are highly encouraged to use the company's products as well as to sell them).
If HerbaLife would just stop here and allow you to purchase and sell its products, I doubt you could call it a scam. However, the scamming really starts when you listen to what the company is trying to have you believe:
In its flyers, HerbaLife claims that you can make as much as $1500 per week for part-time work. If you work full-time, you can make $5500 per week. However, the statistics say otherwise. In actuality, about 1% of HerbaLife distributors make 85% of the company's gross sales. These distributors are in the upper echelons of the company, and were around back when the company was still starting up in the early 80's. The remaining 99% of HerbaLife distributors, who joined the company after the mid-1980's, make the remaining 15% of the company's gross sales.
What does that mean math-wise? Let's crunch the numbers: 99% of all reported HerbaLife distributors comes out to 1,782,000 distributors (99% of 1.8 million). Meanwhile, 15% of $3.5 billion comes out to $525 million. Divide $525 million by the 1,782,000 distributors and you obtain $294 in annual sales per distributor!! And keep in mind that is not profit, but sales, so the actual take-home pay is even less.
Of course, not all distributors are alike. Some may have enormous selling potential, and lots of eager friends and family to whom they can sell HerbaLife products. But that's still a big chance to take when your initial investment in the company is almost the same amount of money that you are likely to make over the course of an entire year!
So, in conclusion, should you invest in the HerbaLife scam? Only if you have extreme sales savvy, as well as lots of spare time on your hands. As for me, I think I'll pass. I can think of many other businesses that pay a lot more money for a lot less work.
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I wasn't aware MLMs are actually illegal. Oh wait, they're not.
Its a realtive thing. Some succeed others don't.
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Hello Hally,
Yes, i agree that Herbalife's marketing claims are questionable. But the real issue stems from the fact that people have no clue as to how to market an MLM business.
They believe the income claims and join the program based on an emotional decision, but after they join, then it's a case of "Now what?" They don't have a plan of action in terms of getting leads on autopilot and converting those leads into sales. They are only told to make a list of friends and family (rarley works, and who wants to pitch there best friend or brother anyway?). So what happens is the product sits on the shelf, nothing happens and they call it a scam.
It's a shame because it gives the whole Network Marketing business a bad name. Herbalife is one of the more questionable companies to join because of it's reputation and marketing tactics, but the answer to success in MLM is picking an honest company with a GOOD reputation (that is also distributor friendly, as Herbalife is NOT), and having a plan of action and executing that plan on a daily basis. Over time, you WILL get results.
Have a great day Hally,
I am working on a new website with shopping links. I am removing the herbalife link now. Thank you for this excellent page.
SORRY TO SAY THIS BUT ALOT OF THE THING YOU SAY
ARE SO WRONG BECAUSE TO CONSUME THE PRODUCTS YOU DO NOT HAVE TO SIGN UP!!! YOU CAN BE A CUSTOMER FOR LIFE.. IF YOU HAVE A TESTIMONY THATS WHEN YOUR TOLD IF YOU WANT TO JOIN IF PPL SEE RESULTS ON YOU. YOU DONT THINK THEY'LL BELIEVE YOU.??
MY AUNT IS SOMEONE I SEE EVERYDAY SHE EARNS ABOUT 7,000 A MONTH AND I HAVE SEEN HER GROW ITS JUST THE WAY YOU MANAGE YOUR BUSINESS SHE NEVER HAS PRODUCR SITTING THERE.. IN THE COMPANY YOUR TOLD YOU HAVE TO MAKE 2,500 POINTS A MONTH SHE DOES MORE THAN 5,000 EVERY MONTH SO YOU SEE?? IS JUST WHO WANTS TO WORK!!!
Dude..... it looks like a case of sour grapes. Just because you lacked the spine to succeed, it doesn't make it a scam. Just think, if it were really that bad, it wouldn't have been so successful in over 70 countries & wouldn't have been in existence for the last 30 years.
Dude..... it looks like a case of sour grapes. Just because you lacked the spine to succeed, it doesn't make it a scam. Just think, if it were really that bad, it wouldn't have been so successful in over 70 countries & wouldn't have been in existence for the last 30 years.
Each to their own. Personally I have my own successful, home based direct marketing Personal Development business where I make 100% of the profit!
Make it a great day everyone, because you absolutely do deserve it!!
Hi...
I use herbalife too. In fact, I recently became a distributor for gaining financial benifits. Earlier I used to buy the products from a distributor.
I joined on May 25th and by the 31st, I had sales worth 6000. In June, I've made 10,000...
Its not a bad opportunity to be honest. I work full time in a school and do herbalife only on weekends and its working out great for me. I've not yet recruited anyone yet but I am satisfied with my sales which I have achieved partly on my own, partly with the guidance and technical support of my sponsor.
Unless you take an initiative, nothing happens though...but that can be said for just about any business.
Hi Hally,
Thank you for giving us the opportunity of growing our business. Herbalife is a complete scam to negative people like yourself. In fact, you can use as many Herbalife shakes and proteins without ever signing up. There are no shady marketing practices. Only an exclusive part of humanity is meant to join Herbalife, the selected ones, or else, who would run the rest of the world while I enjoy my money? I have been a member since 2002, and have experience average growth, personal and financial. I have travelled the world, literally, giving conferences to the ones who want to take this opportunity. I can tell you, yes I encourage the ones that I have signed to recruit more people, so they can make money like I do. How else do you expect to get paid in a network business like this? We do hold meetings every week to encourage, the ones who have DECIDED to work hard to make money. It is not just about buying the start up program; people think that will make a lot of money, and it does not. I am right now about to become a 30K president after a 7 year career; some are brighter and have done it in 3 or 4 years. The truth is that, if you want to call it a scam, so be it, I am enjoying my 800 thou to 1.2 M a month, while you are still making up your mind and have decided to make posts like this. I encourage everyone to have an experience of their own. This is my experience, you might have a bad one like Hally, but the worst of all, is not even trying.
So, Hally, before you take it out on Herbalife, or any other successful network; do some research and profound analisys on the different situations. The friend who talked you into Herbalife might as well be making millions of dollars per year, as they decided to pursue a dream.
Best,
Lefez
My wife and I signed up with Hebalife a couple of weeks ago. Hally is totally wrong about the enrollment plan, the recruitment plan, the arm twisting, the need for extreme business savvy and just about everything else she suggests that is wrong with the company. We have been very impressed with the program and the training and the support that has been offered. I was a little skeptical at first but, even after only a couple of weeks I can see that this is a program that, if you are willing to work the program, will work for you. I emphasis the words work and program. The program is phenominal and the guidance along the way is superb. But it still takes work. If it didn't then everyone would be doing it. Even Hally!
Herbalife is helping others to get the nutrition they want. Obviously, we are at the top and this part where you say "Do you like what you hear so far? Would you like to buy some HerbaLife vitamins? Well, you can't. First, you need to become a distributor." is not true. You dont need to become a distributor to buy this products. Get the facts and then start hating. Thanks for your time. We HERBALIFE are #1 We have the best scientist.
Jus want to say that i jus started program from herbal life and i think everybody should be more concern about the product and if it works
I would just like to say that herbalife is not a prymid scheme scam at all, and you can buy the products with out joining the business otherwise yes it would be a scam and in the case would not have been around for so long. However yes it is true that to do well you need to be really good at sell, if your a lot like Mark Hughes, the guy who started this then join herbalife, I think he was great, he could sell anything. Am I in herbalife, no! but I do think it is one of the better mlm companies, ofcourse it is a cult like every big mlm is, but that doesnt make it a bad cult.
HI
I used to work with Hebalife as well, and i can tell you one thing, it is NOT a scam.
The products are great, The trainings, and support are to, but saying they pull your arm doesn't make any sence, since you don't have any quota's to make. My best friend still works with herbalife and made it to world team member in 2 years, has a very nice income, and is happy, me on the other hand found an even better company, with better products, better payplan, easier to get promoted and even mercedes-benzes as an incentive.
I just received my Mercedes slk 200, and with my next rank, there's another mercedes for me.
This Company is called LR health and beauty systems from germany.
Interesting article-curious about the motivation sounds like you got burnt-They were huge in Australia 20 years ago plenty of Hype but I knew some big earners-was a bit skeptical when I read how their inspiration Mark Hughes lived his life. Are they the same HerbaLife that sponsors Davis Beckham's US soccer team-they have that name on their shirts?
@Kiaranfinn
Yes they are the ones.
hi guys. I just want to know for real. can i really make money from using the systems? it seems to real to be true. do i have to purchase the product first? I just; want to know do i have to put any extra money in the business besides paying for the enrollment? because if so thats were my problem comes in at. if someone truley understands my questions or concerns. please feel free to contact me. thanks, sharitawilliams_1@yahoo.com
For all of you who think Herbalife is a scam: U R ALL NUTS!
dont go and believe every single lunatic that didnt try hard enough to succeed and takes it out on the company! Try it yourself and THEN judge.
Herbalife is the best thing ever, i recomend it to everyone!
Don't listen to these people, Hally. It's obvious that they're all Herbalife distributors and have scammed or are scamming people. I was one at a time and I didn't get any training duing my phone conversations with my uplines. When they felt they couldn't bilk me for more money, they stopped calling and taking my calls. There are legitimate companies out there, but the MLM program associated with Herbalife isn't one of them.
By the way, multi-level marketing is another way of saying pyramid scheme, which is illegal in Canada.
I joined Herbalife over a year ago and I didn't have to invest any money except £78 for my initial start up pack. And that came with a 30 day money back guarantee.
Some of you people don't know what you are talking about, researching a company over the internet never works.
I make more money than my sponsor because I work harder and that is why Herbalife is not a pyramid company.
And maybe 1% of the distributors make a lot of money but they have been working extremely hard for over 20 years and still do every day!!!!!
This is not a get rich quick scheme it take time and hard work to build a successful business and if you can't be bothered to do that then you don't have the right attitude to be a distributor anyway
The Truth is the people that say its a scam are people how need to get a job not a business.If you want to learn how to be a money maker contact me
I think you should get your story straight. Any person can purchase Herbalife products through a Herbalife distributor. You do not have to join the business. Furthermore if you are a student of network marketing then you will realize that there are other ways that you can build your business other than recruiting your family.
maybe it didnt work for you but it a good company and you dont need to sign up to buy herbalife
I'm thrilled to death with Herbalife--I started using the products in July and have lost a good amount of weight and feel fantastic. I joined the program only to get the discount. I feel like if other people are interested, I'll help them to get their products, and the fact that I'll benefit is just gravy!
No one ever asked me to sell anything to anyone, but my "coach" just said, if you're interested, let me know and I'll help you. That's it. No pressure.
I've had a great experience with Herbalife and would recommend it to anyone.
I am also another person that can say that Herbalife is not a scam. I also can say that my team does not do it the same as the rest does. We are internet based and never leave our homes for home presentations or meetings. Everything is done by phone. I also don't have to hunt down friends or family, cold call or walk around town putting up advertisement on cars, or any type of advertisement other than a car sign (which was my choice to do). It is my second month in business. This week alone, I have 6 new customers and 8 new distributors and the week isn't over. Tomorrow, I have 6 appointments for people wanting in the business. I am on track to do $10,000 and make world team my 2nd month in business and this seems to be more and more common in our team. Herbalife isn't easy, I will say that. It is a lot of work, but if you stick with it, it is very beneficial.
As for the products, I do take them myself. I have lost weight and inches which is exciting (12 pounds in 3 weeks), but I'm more excited about having more energy and feeling so much better rather than having sugar rushes or things like that. I HATE running but with these products, I am constantly wanting to go running.
keyje says:
6 months ago
i know some one who is in herbalife who is making more than $10,000 a month!!!!