Herbalife MLM Review 2022: Legit or Pyramid Scheme?

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Are you looking for Herbalife MLM review? Are they legitimate or a pyramid scheme.

Stop worrying you are in the right place. Here we are delivering all the necessary information need to know about Herbalife before you invest in your precious time and money.

Herbalife has been in business since 1980. It is a MLM company focused on selling dietary supplements to its customers.

It is yet another making money online business centered around selling a saturated membership that helps one make money by selling marked up products.

In sincere truth most members do not even make a penny promoting other products.

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Meanwhile lets dive in ……….

What is Herbalife?

Herbalife is a large company with approximately 3.7 million members in over 90 countries. Herbalife is a direct sellling company with a networth 4.88 billion U.S dollars.

You will never come across protein shakes or nutritional supplements on any store shelves. This is a agreat deal to the distributors because the only way for someone to purchase Herbalife products is through the Herbalife distributor.

On the Herbalife website one can learn more about the products and the price information though one cannot purchase.

How Does Herbalife Work?

Like any other distributor , you purchase herbalife product at wholesale price then you sell them or even use them. If you are looking for a distributor you can find one through their website.

How Do You Make Money?

High angle of self assured wealthy African American female standing with pile of dollar bills and looking at camera

To make money with herbalife, one must become part of the distribution chain. Only Herbalife distributors are able to buy Herbalife products from Herbalife. This is done at a discount of 23% minimum rate and 50% maximum rate.

Here are the five steps one must follow to make money from Herbalife;

Step 1: Become part of the distribution chain, get sponsorship from another Herbalife distributor. This is done by purchasing an international business pack(IBP) and register as a distributor in the network of your sponsor.

Step 2: Getting on the 73% payback to the distributors. Despite the steps one must put in much efforts to build a team of active herbalife distributors so that he or she can earn from wholesale profit, royalties and production bonuses on your distribution network.

Do people lose weight with herbalife?

Herbalife is made to help people lose weight by reducing calorie intake with meal replacement shakes.

According to studies, people who substituted two meals per day with Herbalife shakes dropped an average of 12.5 pounds (5kg) in 12 weeks.

Long term research on the advantages of meal replacement shakes is sparse but atleast one study suggests that they may assist in avoiding weight gain over a time.

What Are Herbalife Products?

The company claims that its products range has been designed to support one’s wellness goals no matter how simple they might be.

Their products are in form of protein shakes, nutrition supplements ,sports nutrition solutions and personal care products.

Is Herbalife Legit?

Herbalife is an MLM company. There is nothing illegal about an MLM business as long as they do operate legally. Herbalife was investigated by the FTC making it a legit business.

They were fined right but that was not for operating illegally rather for most of their representatives claimimg unrealistic earnings potential. They also issued payments to the distributors or affiliates for bringing in members which was contrary to FTC. This made herbalife revamp their compensation plan and nolonger issues payments for recruiting others however there are some of those stubborn fellows who won’t listen causing the company trouble.

Why is Herbalife So Bad?

The fact is that Herbalife diet is very pricey and involves large amount of processed shakes and many supplements. Some of the supplements have been linked to causing negative side effects.

For the two decades Herbalife has been in existence, they are links of it being a scam , a pyramid scheme and at times in trouble with the FTC.

Numerous people have sold back their stocks like Carl Ichan sold back to them $600 millions

Who is Bill Ackman?

Bill ackman is an American investor and hedge fund manager. He is the founder and CEO of Pershing S quare Capital Management, a hedge fund management company.

What did Ackman do with Herbalife? Ackman made a short bet against Herbalife an investment that brings in alot of income when the stock price falls.

At an investment conference, Ackman continued to call nutritional supplements company a pyramid scheme that will become infamous in no time.

Why Herbalife Is Banned In The USA?

Herbalife accepted to restructure its business and payoff a time of 200millions dollars as part of a 2016 settlement to US Federal Trade Commission due to accusation of it being a pyramid scheme.

Ackman’s hedge fund closed its short position in Herbalife.

After several U.S states banned supplements containing herbs , Herbalife was forced to remove plant sources of ephedrie from its products.

Following July 2016, Herbalife accepted to pay $200 millions to its distributors in settlement with FTC.

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Is Herbalife An MLM?

Herbalife is a MLM company, but the Federal Trade Commission has classified them as a pyramid scheme for years. And there have been a few people who have sparked a lot of debate.

Herbalife, like most MLMs, is set up to make money by recruiting new members.

However, because of the way they present their company, the promises they make to people, and the amount of money you can make as a distributor, Herbalife is on the verge of being a scam.

You won’t be able to make a living selling their wares, at least not anything worthwhile. It is a well-known fact that 99 percent of people who join MLMs lose money or break even.

Take a look at what Sharon Shea, a former Herbalife distributor, had to say about the company:

“You don’t make money from selling product. You make a little. Not much. Not enough to pay the bills that are racking up. You make money from signing people up.”

Members are encouraged to recruit friends and family to become distributors, but your efforts will dwindle until there is no one left.

The compensation plan isn’t intended to make money; rather, the company wants to keep you motivated to keep using their products and buying more.

You’re still losing money while they’re making it.

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Why Is A Pyramid Scheme Illegal?

Pyramids are intended to make money for early investors, but only for a limited time before drying up.

They are intended to fail, but that is not how they appear. They set unrealistic expectations for something they know will fizzle out.

They are not only a waste of your time, but also a significant waste of your money.

It’s sad how they prey on your aspirations to become wealthy.

Many MLM companies appear to be on the verge of doing the same.

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Is Herbalife A Pyramid Scheme?

Herbalife is not a pyramid scheme, and it was able to escape being labeled as one after striking a $200 million settlement with the Federal Trade Commission (FTC) in 2016.

Their product sales have increased dramatically since then, reaching approximately $5 billion in 2018.

Despite this, the firm continues to have problems.

Herbalife was exposed as a pyramid scheme by John Oliver.

claiming that the business plan for this “MLM” organization is to generate money by recruiting new members and then commissioning their sales.

Was he, however, correct in his assessment?

You can kind of understand what he’s talking about by looking at Herbalife’s incentive system.

Some MLM firms excel at concealing the fact that they are untrustworthy.

They use the help of well-known people to convince you that they are deserving of your attention. They are structured for who they are in plain sight the entire time.

The Commercial Court in Brussels, Belgium, has even deemed Herbalife to be an unlawful plan. Herbalife’s failure to prove its retail client base was the basis for this decision.

The majority of pyramid instances are easily identified.

They are often organized in a chain-letter format. They require new recruits to pay cash up front in the expectation of profiting from your downstream recruits.

This is deceptive and illegal.

In general, most multi-level marketing organizations request upfront fees for items.

However, if they are not a fraud, you will be reimbursed for your independent sales, and these retail sales will be monitored.

When it comes to distinguishing an MLM from a pyramid scheme, there are many grey areas.

Fraud is typically concealed within established organizations in these gray areas since it does not dry up and they continue to perpetrate fraud while being in business.

Someone has tried to argue that Herbalife’s structure is exactly that.

They’ve been in business for about four decades.

They’ve adapted, but not significantly.

However, after 2014, when they were obliged to adjust the structure of how they compensate its salesmen.

Some Herbalife recruits have gotten unrealistic advertising materials in the past from top distributors.

Doran Andry, a member, has posted videos of himself driving a scarlet Ferrari.

He discusses how he makes about $100,000 each month marketing Herbalife goods.

This was a significant addition.

When Herbalife released their financials after the video went viral, it was revealed that the film was a hoax.

According to the firm, just 704 members in the United States earned more than $100,000 per year in 2013.

Not even a month.

The fact is that the vast majority of their MLM distributors earn less than a few hundred dollars each month.

Not to mention the expenditures incurred by members.

Yes, you must purchase items in order to stay active.

The Herbalife nutrition club, however, is the component of the company that attracts the most attention.

This club is not only pricey to join, but it is also geared to attract members.

However, this is not how they sell it.

However, they are aimed at attracting low-income distributors.

Herbalife recruiting sites may be found all over the world. Herbalife reported a significant rise in sales from these nutrition clubs.

Third-party investigators suspected them of cocaine trafficking in Mexico and Venezuela in 2013. However, these assertions never seemed to bear fruit.

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Is There A Lawsuit Against Herbalife?

Several lawsuits have been filed against them. This year was their most recent one.

Just when you thought things were going well for them, disaster strikes.

For the third time in less than four years, they bribed Chinese officials.

The settlement with the US authorities cost them $123 million this time.

This indictment and settlement occurred less than a year after Herbalife was fined $20 million by the Securities and Exchange Commission (SEC) for deceiving investors with its China business strategy.

This happened when Herbalife CEO Rich Goudis’ audio tape was made public, in which he instructed an employee in China to disregard expense account limitations.

These are only a few examples of recent litigation.

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Pros & Cons For Herbalife

Pros

Shakes that substitute meals are quick and easy to prepare.

The Herbalife plan is for busy people who want to lose weight without having to think about meals.

The shake comes together quickly and easily. To prepare a smoothie, just combine 2 scoops of powder with 8 ounces of nonfat milk, or blend it with ice and fruit.

Soy-based shakes may be beneficial to your heart.

The main component in the majority of Herbalife meal replacement shakes is soy protein isolate.

This does limit who can use this product.

According to research, taking 50 grams of soy protein per day helps decrease cholesterol and lowers your risk of heart disease.

Two Herbalife meal replacement shakes per day will only provide you with 18 grams of protein.

There is a soy-free, dairy-free formula available.

Many people are allergic to soy, thus Herbalife provides a soy-free and dairy-free option.

These smoothies are created with pea, rice, and sesame proteins. They’re also GMO-free.

Cons

There isn’t a legitimate method to make money.

This firm has been into a lot of difficulties in the past because they make large promises that they can’t keep. Regardless of how much money salespeople make, the only way to make a reasonable living by most people’s standards is to recruit people.

So, if you’re searching for a way to generate money without having to constantly recruit, we recommend looking elsewhere.

These smoothies aren’t exactly your greatest option if you’re seeking for a healthier alternative.

Highly processed components are used in Herbalife meal replacement shakes.

Take a look at the ingredients: protein isolates, sugars, gums, fibers, synthetic vitamins, artificial flavors, and emulsifiers, to name a few.

This is a bad decision just because of the sugar content. You’ll get 18 grams of added sugar from only two Herbalife shake servings.

A healthy diet emphasizes high-quality proteins, fruits, vegetables, whole grains, and healthy fats while avoiding processed meals.

This may cause you to become hungry

Meal replacement shakes are what Herbalife is known for. They don’t have enough calories, though, to be considered a meal.

As a result, you’re constantly hungry.

You may enhance the calorie, fiber, and protein content of your meal by adding fruits, protein, and fat.

It may be rather costly.

Herbalife is not a cheap company. Herbalife meal replacement mix costs $40 for 30 servings.

They also suggested that you consume two shakes every day.

As a result, you’ll need to purchase two containers, which will cost you $80 every month just for the shakes.

This does not include the supplements they recommend you take.

They rationalize this by claiming that because it replaces your meals, you would save money on groceries.

But how much money are you actually saving if you have to buy more stuff to stay satiated?

It is said that herbal supplements harm the liver.

A number of supplements contain components that are not controlled by the government.

As a result, neither the efficacy nor the quality of the product are known.

A number of complaints have surfaced suggesting that Herbalife supplements are to blame for liver damage.

An excess of the bacterium B. subtilis has been found in several Herbalife products, according to reports.

This bacterium has also been connected to liver problems.

These components aren’t exclusively found in Herbalife supplements. Many OTC drugs and supplements include them.

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Conclusion

Herbalife is a MLM organization that is on the verge of being a fraud.

Its primary objective is to keep their distributors buying items and bringing in new recruits.

In its 40 years of existence, this firm has been involved in several questionable activities.

They are designed to appear to be an MLM, but, like many MLM organizations, they teeter on the pyramid side, operating in a gray area where it is impossible to categorize them as one or the other.

However, a large number of individuals, including members, distributors, and organizations, have spoken out against Herbalife.

Even if you give Herbalife the benefit of the doubt for prior mistakes and being compelled to adjust the way they frame their claims, they got into issue with the FTC only this year.

There are several MLMs and business opportunities available that can provide you with the independence and money you want.

Indeed, you may find the option listed below to be more in line with your specific objectives.

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