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Is Herbalife a scam

Is Herbalife a scam ? A pyramid scheme uncovered

Hi and welcome on our Herbalife 2019 review! Today, we are going to answer the question Is Herbalife a scam or is it a legit business?

Many mlm companies exist nowadays, some of them are really to be avoided because of their pyramid scheme and others are totally legitimate. Through our review, we hope to help you make the right decision in which business to choose.

We will cover the basics of how much money you can make with Herbalife, if it is a legitimate company or just another pyramid scheme, compensation plans and even the opinions of other distributors.

First, let me start by saying I’m not associated or even working with Team National.

I’m just willing to give you an objective opinion through this Herbalife review, and try to help you find the best way for you to make money online.

My goal is to try to help you find a legitimate way to make money online as we did!

Herbalife FAQ

What is Herbalife ?

Who started Herbalife?

What does Herbalife sell?

Is Herbalife legitimate?

Is Herbalife a pyramid scheme?

How much does Herbalife distributors make ?

How much does Herbalife membership cost?

What is Herbalife MLM company?

Herbalife is a multi-level marketing corporation (MLM) founded in 1980, which is majorly involved in selling products like beauty products, weight management products, nutritional supplements, etc. 

This firm was founded by Mark Hughes, with the headquarters of the company located in California. This MLM is a reasonably large company as they have a network that spans over 93 countries with almost 3.2 million Herbalife distributors. 

Herbalife is listed on the stock exchange and sponsors athletes and sports clubs around the world.

Through this information that the public can obtain, no obvious information reveal if Herbalife is a scam or not. But we can say that this company is totally legitimate.

So let's go into the details of the company's history to know some controversies about its business.

Story of Herbalife

It all began as a one-person business, with Mark Hughes selling weight management product from his car in 1980.

According to Hughes, that product was inspired by the death of his mother, who suffered from an eating disorder and weight loss problems.

Therefore, Hughes marketed a protein shake intended to help with weight management; this was the company’s first product.

Afterward, the company continued to grow in leaps and bounds. Although there were some setbacks along the way.

Controversies of Herbalife

There have been a number of controversies associated with Herbalife in the past. The first being a complaint made by the Food and Drug Administration in 1982 concerning some Herbalife products and their constituents.

The next was a lawsuit filed against Herbalife by the Department of Justice in Canada due to misleading product advertisements.

The company also had a significant setback in 1985 as a result of the lawsuit filed by the California Attorney General.The suit was settled for a total of $850,000, and almost 800 employees were laid off as a result of the case.

There were also allegations that the company was just a pyramid scheme with the company paying $6 million in reparations after a class action suit.The company has also paid other amounts due to lawsuits and out of court settlements.

Also in 2016 the FTC ordered Herbalife to pay compensation of $200 million to compensate consumers and forced the company to restructure its multi-level marketing operations.

In an article taken from Forbes, you could read a shareholder Bill Ackman's opinion about Herbalife, which describes the company as a pyramid scheme doomed to failure.

Source : https://www.washingtonpost.com/archive/business/1986/10/17/herbalife-pays-850000-to-settle-suit/09995e39-8f0d-410c-8647-f9336c6dc92f/

Sport sponsorships

Herbalife Nutrition is currently the sponsor of the France national volleyball team, Major League Soccer club LA Galaxy, the basketball club Herbalife Gran Canaria and also the sponsor of Christiano Ronaldo. Herbalife has sponsored Lionel Messi too between 2010 and 2013.

Herbalife's Product Range

Herbalife is mining a lot of bucks from the health and beauty world.

It produces a wide range of nutrition products such as protein bars, protein shakes, weight loss supplements, vitamins, energy/ performance boosters, teas, and aloes. 

The company also markets other skincare, heart health, personal care, and skincare products.

Customer Review on Herbalife products

From a survey taken from Amazon and other sales platforms, Herbalife products were seen to have mostly positive reviews from a large number of customers.

There are a lot of comments about each Herbalife product on Amazon, mostly with positive reviews interspersed by negative reviews.

A lot of five-star ratings with some one-star ratings by users were seen.

Herbalife Formula 1 Shake Mix - French Vanilla (750g) Review on amazon

How to become a Herbalife distributor?

One of the ways to earn money from this company is to become a distributor. The requirements to be an independent Herbalife distributor requires you to register first through their website : https://www.myherbalife.com/

This is where you submit an online application after registering on the site. A representative will contact you within three to four days and you may need to answer further questions.

The representative will supply additional information as to where to submit the form and how to order products.

See more : How to sell Herbalife products to become a successful Herbalife distributor

How much does Herbalife membership cost?

To become a Herbalife member, you must purchase the Herbalife Membership Application form, which costs around $59.95 You’ll then be required to make the first purchase. 

After the pack arrives, you’ll receive a distributor ID number, which would be entered when logging in to your new account. 

How to Subscribe to Herbalife MLM ?

To subscribe, visit the company’s website and click on the “ opportunity” icon at the beginning of the page, or simply register on their representative page.

After this, you’ll see a  “ Join our team” icon at the top left corner of the website. Click on the link after to get started.

You may also need your recruiter’s distributor ID to continue the process. After supplying the necessary details, you’d be required to choose a username and password and also read through the terms and conditions.

The next step is to pay the amount needed and to wait for an email. Once you get a distributor number, you are free to sell the products.

How to earn money with Herbalife?

There are two primary ways to earn money through Herbalife. The first is to sell the products to customers directly, while the second is by building a team.

You can get Herbalife products at a discount of 25% or 50% (depending on your number of sales), which you can resell while getting a 25% profit margin.

The other way to increase your income is by building a team. After gathering enough recruits, you’ll be entitled to a certain percentage of the sales and purchases from your downline.

Herbalife Compensation Plan

To become a Herbalife distributor, you’ll need to pay around $60, after which you can get a 25% discount on Herbalife products instead of the regular price. This is one way to make a profit.

With each purchase, you get Volume points. Five hundred volume points in a month will make you eligible to become a senior consultant with a downline.

You’ll then get 10% out of every sale made by your downline distributors. The next principal position is Supervisor. This requires 4000 volume points within two months.

Herbalife Income Disclosure Statement

The US statement of average gros compensation 2018 reveals how much people earn from Herbalife. The average earnings vary depending on the rank of the distributor.

How much does Herbalife distributors makes?

As explained in the table below in US statement of average gros compensation 2018, there are only 4200 distributors ( 3% of all distributors) out of 136.000 who have earned more than $3200 in 8 months or more for 2018.

- Also the distributors who earn money in the first year are about 20,000, there are 10,000 (50%) people who earn less than $170 per month, 2000 (10%) who earn $900 per month and 195 (1%) people. But where did the other 7805 distributors go? Do they earn less than $170?

- The same is true for other distributors over one year old. The information concerns 25,620 of the 42,000 sellers who earn commissions. There are 16,380 distributors who earn less than $265 per month after one year of operation.

An important thing to remember is that only 3% of distributors earn more than 900 per month after 6 months of activity and more than 95% of distributors earn less than $265 per month after one year of activity.

Us statement of average gros compensation 2018 information

The easiest way to make money through Herbalife is to sell the products to people directly.

If you want more income, then it’s advisable to recruit as many people as you can. The profit margin is quite decent, but there will be stiff competition from other distributors and similar products.

How much Herbalife distributors can lose ?


What Are The Pros & Cons of Herbalife?

There are better discounts available as you move up the ladder, which is a major advantage. The more people you get, the more you earn. However, the compensation plan might be tedious most times, and it might be hard to get recruits due to a large number of distributors.

Pros

  • Herbalife has a history of overcoming all odds every year while making billions of dollars in sales. The company has withstood the test of time and has an impressive sales record.
  • Herbalife also has a one-year refund policy. This is only for new distributors if distributorship is stopped for whatever reason. Non-distributors have a 30-day refund policy on unused products also.
  • Herbalife has a large number of positive product reviews.
  • The general public well knows Herbalife products.

Cons

  • Many controversies surround the company.
  • Herbalife also has a large number of critics and opponents.
  • Some Herbalife products are overpriced compared to some other brands.
  • Getting up the ladder isn’t an easy process.

To Conclude, Is Herbalife a scam?

When we look back we can clearly state that the company has had many problems with the American justice system. So does this information allow us to say that Herbalife MLM is a scam? 

After the American justice system is sentenced Herbalife to pay for the pyramid scheme, it can be clearly stated that Herbalife is a scam and that their system is based on recruiting people only.

Since the FTC forced Herbalife to review its multi-level marketing operations in 2016, it seems too early for us to advise you to join Herbalife.

How we make money online?

Have you ever heard of Affiliate Marketing before? It may be a serious path you have to consider.

If you are seeking for a successful business to build, where you are able to promote anything you want without testing products nor recruit people, including a great earning potential, I’d rather recommend you Affiliate marketing. 

Reasons are in fact quite simple:

  • You’re free to promote the products or services you want
  • No obligation at all to test any product
  • Affiliate Marketing is totally free
  • You earn real money

If you are interested in creating a real business online, discover the easiest way to make money online with Affiliate Marketing.

wealthy affiliate result

Is Herbalife a scam? A Pyramid scheme uncovered- 2019

Is Herbalife a scam ? A pyramid scheme uncoveredHi and welcome on our Herbalife 2019 review! Today, we are going to answer the question Is Herbalife a

Editor's Rating:
1
Arnaud & Marion
 

After 3 years of struggle, trying to find our way out online, we finally found THE product that fits us and that makes us confident and successful. We are currently Full-time Affiliate Marketers at Wealthy Affiliate.

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