Herbalife is a network marketing company specializing in the sale of herbal and dietary supplements. Herbalife was started in 1980 and gained widespread recognition in part due to Jim Rohn.
Another Multi Level Marketing Program that revolves around selling an overused membership that allegedly earns you money by selling marked-up products that anyone could honestly buy cheaper at the store…
It is marketed by individuals who are motivated to join the business or purchase their items.
It’s meant to teach you how to become a “Jim Rohn marketer,” however, most members make no money advertising other people’s items.
That is the truth…
You will not become wealthy with a small $6 commission.
And, while we must be truthful in this review…
DISCLAIMER:
This Herbalife Nutrition review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn by myself are opinions.
Herbalife does include some helpful information on how to earn money online and earn some sizable commission checks…
However, for the typical person, network marketing as a business strategy is becoming saturated.
At the conclusion, you’ll find answers to some of the most frequently asked questions about Herbalife and multi level marketing in general.
And most importantly, I’ll show you the exact system I used to build my own internet marketing business to over $40,000 a month in mostly passive income.
This system made me swear off network marketing for good, because it uses some of the same skills but in a much more powerful and profitable way!
But more on that later.
For now, let’s hop into all things about Herbalife!
So What Is Herbalife?
Herbalife is a direct selling company. Herbalife’s global net sales were around 4.88 billion US dollars in 2019.
You will not be able to purchase their protein drinks or nutritional supplements in stores.
You may only purchase these goods through an authorized Herbalife dealer. You can read more about the products and obtain pricing information on their website, but you cannot purchase them.
Obviously, this is beneficial to distributors.
Herbalife is a fairly large company, with 3.7 million “members” in over 90 countries.
How Does Herbalife Work?
As a member or distributor, you’ll receive bulk discounts on Herbalife goods. Then you can either sell or use them.
Alternatively, do both.
If you don’t know anyone, you can find a Herbalife distributors on their website.
How Do You Make Money?
This is where things start to get your attention.
They compensate according to a “multi-level marketing plan.”
So what does this mean?
That is, your compensation does not come just from the sale of Herbalife Nutrition goods. You can earn bonuses from the sales of new members you recruit and those recruited by your recruits.
However, you’ll need to sell a large quantity of Herbalife protein drinks to earn any money. And don’t forget that you must first purchase the things to sell them.
That is the issue.
Basically, you’re capped to how much you can generate based on how much you can acquire.
However, this is not all.
There is a risk of purchasing an excessive amount of stuff and being unable to sell it.
You’ll have a year from the date of purchase to return products that you haven’t opened.
Therefore, what is their compensation strategy?
See the illustration below:
Distributors do not profit significantly from the sale of these products. Naturally, the more you sell, the more money you’ll earn.
When you reach a particular volume point total, you can advance to the next level, earning a higher commission from downline, but your retail commission remains unchanged.
You earn volume points when you or your downline place an order. Thus, the more orders you or your downline place, the more volume points you get.
This will assist you in going to the next level.
What’s wrong?
You don’t like having to sell items to friends, family, or even strangers?
I thought so…
You might find my number one recommendation more in line with your personal goals!
What Are Herbalife Products?
Weight-loss and protein shakes are among Herbalife Nutrition’s offerings. They also have protein bars, teas, aloe vera, and vitamins, as well as sports hydration, energy, and personal care goods.
The product asserts that it has the potential to transform people’s lives and provide health benefits from their products.
This is supposed to be accomplished by using products that target the cognitive limitations of the human body.
These cognitive shortcomings are a point of contention for Herbalife.
Herbalife promotes social meetings and refers to these as “nutrition clubs.” Members will sample the shakes and discuss how to live a healthy lifestyle at these sessions.
However, are these gatherings only a means for them to expand their business through product promotion and sales?
Herbalife asserts that these nutrition clubs benefit individuals who might otherwise purchase food from vending machines or fast-food restaurants. That they assist in demonstrating healthy choices and provide positive reinforcement for them.
However Herbalife’s goods priced excessively high in my opinion.
Do People Lose Weight With Herbalife?
Herbalife meal replacement shakes are effective at aiding in weight management and promote weight loss.
However, they are nearly identical to the other meal replacement shakes on the market today.
You’ll consume less calories and as a result of feeling fuller for longer.
You consume these nutritious shakes in place of one or two meals.
Herbalife’s weight loss study is currently ongoing, despite the product’s promises of being able to prevent weight gain over several years.
Is Herbalife Legit?
MLMs such as Herbalife are frequently the subject of heated controversy. However, some are more suspicious than others.
What is Herbalife, then?
It’s tough to determine whether Herbalife is a legitimate business, a fraud, or a pyramid scheme.
Therefore, let’s begin by reviewing some of the drama that Herbalife has been embroiled in over the last few years.
When Des Walsh, Herbalife’s president, was asked by hedge-fund investor David Einhorn in 2012, “how many sales occurred outside the company’s network?” Mr. Walsh reacted as follows:
“We do not track this statistic and believe it is meaningless.”
As one might expect, David Einhorn was outraged. And shortly after that, Bill Ackman, founder and CEO of the hedge fund Pershing Square wagered $1 billion against Herbalife. In late 2012, he sold a portion of the company’s equity.
Michael Johnson, the CEO of Herbalife, decided to fight back. He characterized Ackman’s claims as inaccurate and deceptive.
Then Carl Icahn intervened, claiming that Ackman was a liar and that his statements were total nonsense.
The worst of it happened in March when The New York Times published a front-page piece. This story sheds light on Ackman.
Ackman had lobbied legislators and even contributed to anti-Herbalife campaign groups. Herbalife officials initially denied this was true, only to publicly reveal two days later that they were under investigation by the FTC or Federal Trade Commission.
Ackman has even stated that he believes Herbalife is a global pyramid scheme. And feels it is part of a “criminal enterprise.”
John DeSimone, Herbalife’s chief financial officer, responded to this remark by saying, “I am confident Bill Ackman is incorrect.” I believe he has transcended the lawful job of short-sellers and crossed an ethical line.”
Herbalife was then forced to pay $200 million in 2016 for ‘unfair and deceptive activities’ and was forced to restructure its US business. This conclusion came after a two-year examination.
However, it does not end there.
Why Is Herbalife So Bad?
Herbalife has been in business for close to two decades. And have been the subject of numerous investigations, including being a scam, a pyramid scheme, running afoul of the FTC, paying millions in fines, and being forced to restructure its United States activities.
According to Edith Ramirez, Chairwoman of the Federal Trade Commission, Herbalife has deceived consumers by inflating its claims to become wealthy selling nutritional supplements.
And today, Carl Ichan is returning all of his Herbalife stock to the company for $600 million.
Why would he do this following his high-profile confrontation with Bill Ackman a few years ago?
Who Is Bill Ackman?
Bill Ackman, the hedge fund Pershing Square, was involved in several of Herbalife’s exposures to potential false statements.
Both Ackman and Herbalife fought for two years.
It all began with Ackman betting $1 billion that Herbalife’s stock would drop and discussing how Herbalife does not provide its members with a legitimate means to earn money.
This was the beginning of the revelations about Herbalife’s deception of their recruits.
Herbalife asserted that Ackman said these things to benefit Perishing Square investors from Herbalife’s Wall Street disasters.
Why Herbalife Is Banned In The US?
Herbalife agreed to “fundamentally restructure” its operations and pay a $200 million fine as part of a 2016 settlement with the United States Federal Trade Commission (FTC) over allegations that the company operated a pyramid scheme. In November 2017, Ackman’s hedge company exited its Herbalife short position.
Simultaneously, Herbalife products using plant sources of ephedrine were withdrawn from the market in 2002 when numerous states in the United States outlawed supplements containing such herbs. In July 2016, Herbalife agreed to alter its business strategy and pay $200 million to its distributors in a settlement with the FTC.
Is Herbalife An MLM?
Herbalife is a multilevel marketing company, yet the FTC basically classified it as a pyramid scheme for years. And a few individuals have been the subject of considerable dispute.
As is the case with the majority of MLMs, Herbalife is structured to generate revenue through recruitment.
However, Herbalife comes dangerously close to being a scam due to how they market their organization, the promises they make to individuals, and the amount of money they may earn as a distributor.
You, statistically speaking, will not earn a luxury wage selling their items, at least not in any meaningful way.
It is a well-known truth that 99 percent of people who join MLMs lose money or break even.
Consider what Sharon Shea, a former Herbalife distributor, said:
“You don’t make money from selling product. You make a little. Not much. Not enough to pay the bills that are racking up. You make money from signing people up.”
Members are encouraged to recruit friends and family to become distributors, but soon your efforts will dwindle, and there will be no one left.
The compensation plan is not designed to generate revenue; rather, the business is designed to keep you motivated to continue using and purchasing their items.
You continue to lose money while they continue to profit. At least that’s what most peoples experience has been it seems.
Is Herbalife A Pyramid Scheme?
No, Herbalife is not, by legal definition, a pyramid scheme and has avoided that name following a 2016 deal with the FTC (Federal Trade Commission). Since then, their product sales have increased dramatically, reaching approximately $5 billion in 2018, so the company continues to face challenges.
John Oliver attempted to discredit Herbalife by exposing it as a pyramid scheme.
They are claiming that the business plan for this “MLM” organization is to earn money by recruiting new members and then commissioning their sales.
However, was he correct or incorrect?
Consider Herbalife’s incentive system to get a sense of what he’s talking about.
Certain MLM company are adept at concealing the fact that they are bad corporations.
They secure celebrity endorsements to convince you that they are deserving. Meanwhile, they are constructed in such a way that their true nature is concealed.
Herbalife has even been declared an illegal plan by the Brussels Commercial Court. This was because Herbalife was unable to demonstrate its retail customer base.
The majority of pyramid cases are easily identifiable. They are frequently structured in a chain-letter fashion. They need upfront payment from recruits in the expectation of profiting from your downstream recruits.
This is deceptive and in violation of the law.
In general, the majority of multi-level marketing organizations need payment in advance for products.
There are some gray areas when distinguishing a multilevel marketing business from a pyramid scam. In these gray zones, fraud is frequently concealed within established businesses, as they do not cease operations and continue to conduct fraud while remaining in business.
Someone has attempted to explain that this is precisely the structure of Herbalife’s business model. They’ve been in operation for about four decades.
They’ve adapted, but not significantly.
Although they were obliged to adjust the structure of how they compensate their salesmen in 2014.
Certain Herbalife distributors and recruits have gotten unrealistic promotional materials in the past from top distributors. Doran Andry’s videos show him driving a scarlet Ferrari. He discusses how he earns about $100,000 each month marketing Herbalife products.
This was a colossal exaggeration.
When Herbalife declared its financials following the viral video’s release, it was established that the film was a fabrication.
According to the company, just 704 members in the United States earned more than $100,000 per year in 2013.
The reality is that the bulk of their multilevel marketing distributors earn maybe a few hundred dollars every month.
And, of course, there are member expenses to consider.
Yes, to maintain active status, you must purchase things.
However, the aspect of Herbalife that generates the most excitement is their nutrition club.
Not only is this club prohibitively expensive to attend, but it is specifically structured to recruit.
However, it is not the way they sell it.
They are intended to attract low-income distributors.
These Herbalife recruiting locations are located throughout the world. Herbalife reports a significant rise in sales as a result of these nutrition clubs.
And they were suspected of drug laundering in Mexico and Venezuela by third-party investigators in 2013. However, these assertions never materialized.
Our #1 Recommended Online Business Model In 2024?
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Where Multi Level Marketing falls short is in scalability.
There’s only so much time in a day and there’s only so many people you can reach to sell by yourself.
MLM companies know this! Which is why they push so hard for you to recruit for your downline…you can’t get rich with it as a one man/woman show.
But what if you could make even more money off of little local websites without having to spend hundreds of dollars on overpriced products and a bunch of time recruiting people to sell under you?
With this Digital Leasing program, you can make recurring monthly income without constant sales to your friends and constant recruitment!
Sound too good to be true? Of course it does! But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a LOCAL website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business, tree service, plumbing, towing, etc.
How do you get paid and how much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 10 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $500 a month!
See why they call it Digital Leasing now? That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to worry about
- Your upline getting paid before you
- Begging your friends and family to buy from you
- Recruiting people all the time
But as it is with HerbaLife… You only get what’s left of the pie if you meet a monthly quota…
The course we recommend actually allows you to collect HUGE FLAT RATE DEALS. Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc
Once the training program is completed you will also have access to a Facebook group much better than the HerbaLife group in our opinion. This group is much more active.
Unlike MLMs, where you’re getting maybe $10 per sale, you could be getting 10-20X THAT.
A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding Digital Leasing.
Unlike HerbaLife, more people have been able to walk away from their 9-5 job as well.
Digital Leasing allows you to have total passive income with most of your day being spent WITH your friends, NOT selling to them.
Now, I know you probably have tons of questions…
So, check this out to learn more.
