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)).
I somehow got stupid and went to the website and it hijacks your browser and won't let you use the "back" button. I had to close the tab to get out of it. GGGRRRRRR!!
Not only that it is also the Cult mentality they force upon their down line distributors. Such as claiming they aren’t selling enough because their spouse isn’t doing their fair share, or you aren’t living right because you didn’t spend 500 dollars on toliet paper to save a dime.
They then flood them with visits, emails, phone calls strongly suggesting that they need more training thru weekend seminars. Which is put on by the Top of the Pyramid shysters who hard sell videos, DVDs, tapes and other “self Help” materials.
These weekend seminars end up costing people minimum a couple of hundred plus several hundred for the “training” materials.
I watched two friends destroy their lives listening to these cult personalities. I tried to tell em...