Herbalife is a multinational networking organisation that produces and sells dietary supplements, weight loss products, personal care products, and sports nutrition. The company’s Chairman is John O. Agwunobi.
It has a network of about 4.5 million independent distributors and members in over 94 countries around the world. Its headquarters are in Los Angeles, California, United States.
The company’s net revenues for the previous year were $ 4.9 billion, which was relatively flat compared to 2018. The company’s net revenue is $296 million dollars. It is ranked third among the top ten multilevel marketing firms in the world.
Mark R. Hughes created Herbalife in Los Angeles, California, 40 years ago in February 1980. From the truck of his car, he sold the original Herbalife weight management product.
Herbalife network marketing benefits
Herbalife distributors advance in this complex plan by purchasing merchandise from the company and encouraging others to do the same. As a distributor progresses, they gain access to product discounts and fees, which are charged when distributors in their downline (those they’ve hired and their recruits’ recruits, and so on) make purchases from the company.
The hiring distributor, or sponsor, often fails to disclose how difficult and costly it is to progress in the programme. Recruits are instead advised that if they practise hard enough, they will make a lot of money with Herbalife.
Unfortunately, they are often not told the most critical pieces of information that any potential recruit should be aware of: that 89 percent of new hires will receive nothing from the organisation and that 90 percent will leave within the first year.
“Complex commission structure,” according to the SEC, is one of the hallmarks of a pyramid scheme. If commissions are dependent on goods or services that you or your hires offer to people outside the programme, you should be concerned. Be careful if you don’t understand how you’ll be compensated.”
ISn’t HERBALIFE A PYRAMID Scheme?
The truth is that Herbalife stock is traded on the New York Stock Exchange, and the stock’s value plummeted after this revelation. Some people panic because they don’t want to lose money. They must follow the stock market guru’s recommendations.
Others who invest in the stock market understand how much money can be made while others panic and flee.A coin still has two sides to it.
Let’s run Herbalife through the pyramid grinder to understand its benefits
Sustainable business model — Herbalife has been sustaining itself for over 30 years, beginning in the trunk of a car and slowly but steadily expanding across the globe. An Independent Herbalife Distributor does not earn any compensation for referring anyone to the programme.
Herbalife prides itself on a variety of nutritious food items that are used by their distributors and consumers, rather than providing real investment or selling products or services to the general public.
If Herbalife is a pyramid scheme, this Herbalife pyramid scheme is fatally flawed. Have you ever heard of anyone ‘below you’ in a pyramid scheme earning more money than you?
This is how the incentive scheme at Herbalife works.
Herbalife promotes collaboration among teams. In Herbalife, the most popular people reach the top with the help of their team.
You’re wondering why I’d want to promote and help my distributor to get the same amount of discount as me. Why not, in my opinion? True leaders instil trust in their followers. That makes no sense in a pyramid scheme. It makes PERFECT sense in Herbalife.