Herbalife has been around for a long time, hasn’t it?
Most of these ‘network marketing’ companies are just pyramid schemes using different names, terminology, and tweaking the program just enough to not fall under the legal category that could get them shut down.
On of my major papers I did when working on my Master’s degree was to study the financial operations of many of these companies (herbalife wasn’t one but it operates much the same as many of them). I found most operate under a system that only works if the ‘employees’(sic) have a high failure rate, that is they buy into the program with its large start-up costs then don’t fail to achieve the goals to receive any payout benefit from their network.
The products they sell are just a secondary thought. The real business is to sell the business opportunity, get people in and investing, then have them drop out before significant revenue flows to them. It was shocking to see how some people have invested thousands upon thousands of dollars and hours and received pennies in commission. They were always looking for that next ‘break’ that would fill their pyramid (or binary, or network, or whatever it was called with that program) that would start the money flowing.
These type of programs benefit very few. Just a couple of people at the top and the few downline who buy into the program who are more savvy at playing the game.
I suggest avoiding them at all costs.
(note, I did find a couple whose finances and history showed benefit to the people who buy into the business. They usually were ones who had real, established product lines that were focused on first, not buying into the business as the goal (Mary Kay being one of the few ones with decent financials)).
Yes, its a scheme. Glenn Beck also supports it which is disappointing.
Herbalife is a huge supporter of US Senator Tommie “The Commie” Harkin (Democrat, Iowa). It is a multi-level marketing operation, though the actual products are OK but pricey.
Anything that requires you to “bring in other people” and not emphasizing “selling product”......is a Pyramid Scheme
I got burned in one of these two decades ago with one run by Kevin Trudeau.....who sells those “.....Cures” books on TV. In fact the state of Florida shut him down in FL
Any radio show host who pushes pyramid schemes should be ashamed of themselves.
And....with so much business done on line...no one should even consider pyramids
If Herbalife was a pyramid scheme the feds would have them in court as we write.
I have never sold or bought Herbalife but I've never heard any scandal on the company. They've been around a long time.
Some network marketing companies are better than others. I am involved with LegalShield (formerly Prepaid Legal), largely because I was laid off in 2010 and most employers in Kentucky are not interested in hiring people with college degrees and high-tech skills. LegalShield is not a get-rich-quick scheme; it will work for you if you will work for it. To those leery of pyramids, I will say the following. First, I understand your concern; as an historian, I know that even the pharaohs got burned in the original pyramid scheme (they all were robbed eventually). Second, it is possible in LegalShield to make money without recruiting anybody; we have a fellow named Rob Vest who made $600,000 in 1 year on sales alone. Third, it is possible to make more money than the person who signed you up; I have a person on my team doing that. Contact me if you would like to know more.
I don’t know if it is a scheme or is not.
But I’m a huge fan of Kyle Bass.
Kyle Bass says don’t bet against Dan Loeb, who is long on HLF, as is Carl Icahn.