What Is The Herbalife Scam?

What Is The Herbalife Scam?


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Who Are Herbalife?





Herbalife is a popular direct sales company and a maker of high quality products for the health, wellness and fitness niche. Herbalife products are famous all over the world and even endorsed by the world’s greatest soccer player, Lionel Messi of Barcelona. Apart from Messi, there are several other internationally famous sportspersons who also endorse Herbalife products.



Herbalife has over 2 million distributors in over 80 countries and had sales of $4.8 billion in 2014. The current market capitalization of the company is $4.97 billion. It is certainly one of the biggest network marketing companies in the world, in the same league as other popular MLM (multi-level marketing) businesses such as Amway, Mary Kay and Avon.



All Herbalife products are available through its distributors and cannot be found in retail stores. You can get these products only by contacting a Herbalife distributor. The Herbalife Family Foundation (HFF) is a renowned non-profit and its Casa Herbalife program does great work to bring nutrition to kids.



What is the Herbalife Scam?



Bill Ackman is one of the richest hedge fund managers in the world, and it was he who first suggested that Herbalife was a “Pyramid Scheme” and hence a scam. Ackman has since taken a strong stance against Herbalife, using hundreds of millions of dollars to short the company’s stock.



He has been ridiculed for this by other great investors such as Carl Icahn and hedge fund manager Dan Loeb, who insist that Herbalife is a legitimate business and have taken an opposite position to Ackman by buying Herbalife stock worth hundreds of millions. So Herbalife has essentially become a victim of a battle of egos between billionaires.

So, is Herbalife a Scam?



Clearly not! Herbalife products are highly appreciated by families around the world for promoting health and wellness. Herbalife is a legitimate business and certainly not a scam – it sells products to people who want to use them, which is what a proper business does.



90% of the people who buy Herbalife products are not marketers or distributors – they are actual consumers. Herbalife has also been doing great business in small countries such as Iceland – this wouldn’t be possible if it had been a Pyramid scheme.



How to Make Money with Herbalife?


First, you have to join the Herbalife distribution chain by getting sponsored by another Herbalife distributor. You can them buy the International Business Pack (IBP) and get registered as a distributor in the same network as your sponsor.



You will get compensated in 5 different ways, one of which is to sell the product directly to customers and get a commission for it. You will also be given some money from 73% of the company’s annual turnover which is paid back to distributors.



You should try to get to the highest discount level possible and work hard to build a team of Herbalife distributors. The best way to make money from Herbalife is to build teams and to actively manage them. This way, it is possible to make a lot of money from the business.



Basically as a team leader, you will make profit from the wholesale distribution, royalties of up to 5% of the profits made by your network and production bonuses of 2 percent, 4 percent and 6 percent on the entire distribution.


Can One Make Money with Herbalife?



Yes, you can. But how much money you make depends on how hard you’re willing to work. Herbalife is certainly not a get-rich-quick scheme; you really have to work hard at it if you’re to earn a significant income as a Herbalife distributor.


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