Ask E. Jean - Tormented? Driven Witless? Whipsawed by confusion?

Advice Vixens

So last week my boss was talking about business and the subject of herbalife somehow came up. Ive used it before when training but never had much success... He went off on one about how its a pyramid scheme. I was shocked although on reflection I could see what he meant.

When I was buying, my distributor kept on about how I could make extra £ off selling herbalife and was always posting big ranty fb posts about her big commission cheques... It seems theyre more interested in recruiting than selling.

It seems like things have been kicking off on your side of the pond...
Has anyone been following the herbalife story and the calls for the FTC to investigate their MLM structure? What are your thoughts? I think ill be researching what I buy alot more now...

  • Cast your vote
    for Best Advice
  • give Cass advice
    send this question to a friend


    There have been a lot of scams like HerbaLife. The most famous one was Amway, I think, though I also recall one that involved mink oil.

    One of my daughter's friends sells Arbonne, which is structured very much like Mary Kay, which is legitimate. The representatives get a lot of coaching and support and while they will offer to recruit you, the second I said "No, thanks" the woman I met with gave me a bunch of free samples and dropped the subject of me selling entirely for the rest of the evening.

    They offer fitness stuff as well as cosmetics, in case you're looking for something to replace your HerbaLife products.

    reply to Robynne
    send this answer to a friend



    I've never used Herbalife or Amway, I don't trust these. My best friend bought weight loss products worth of about 100 Euro and didn't work, so...

    reply to Gerbera
    send this answer to a friend



    I havent bought herbalife since my distributor text me asking for money to be transferred to her account from me to get me a distributors code to buy my own. I smelt a rat and said no thanks.

    Her last status i saw on fb is how she has a few hundred joining her distribution team next month. Its only since i started reading into it and measuring it up against her statuses that i realise that it makes sense. I wonder if she is actually onto the fact that she is part of a big house of cards? Or does she actually believe in the properties of Herbalife being actually effective and is sales driven? I think a lot of people are getting recrutied into this locally that have no idea of the bigger picture.

    reply to Cass
    send this answer to a friend



    My younger sister sells Herbalife Products and she has also used them. She swears by it, I've also seen results on some people that have used it. I've thought about using it, but the meal plan that was given to me wasn't appealing. But I believe it all depends on the person selling it and the level of trust you have in them.

    reply to Neicey
    send this answer to a friend



    Herbalife and Amway are not scams.
    Multi-Level Marketing is a valid and proven to be successful marketing strategy.

    I have lots of thoughts with regard to these companies going public but that's a SOMEWHAT different issue.

    oh, yes, Mary Kay's marketing is structured the same way.

    reply to Miss Beth
    send this answer to a friend



    Miss Beth wrote: Herbalife and Amway are not scams. Multi-Level Marketing is a valid and proven to be successful marketing strategy. I have lots of thoughts with regard to these companies going public but that's a SOMEWHAT different issue. oh, yes, Mary Kay's marketing is structured the same way.

    I think the main issue from what i have read is while the MLM structure is "legit," and can be successful, herbalife's structure whilst under the umbrella of MLM is pushing towards a pyramid scheme given their incentives to recruit than provide their products to the public. Their figures are disproportionate- more bonuses are paid for recruitment than sales and conveniently sales to public and products bought by distributors are not available as they do not differentiate.

    So i suppose the debate is where do you draw the line between a "good" MLM and a "bad" MLM structre. Mark Kay and Avon by comparison are completely different despite being MLMs.

    The product itself doesnt seem to get much press despite having Ronaldo and Messi fronting for it. That in itself says alot when you think of other health/ food products with big celeb endorsements.

    What are your thoughts on these companies going public?

    reply to Cass
    send this answer to a friend



    Cass wrote: I think the main issue from what i have read is while the MLM structure is "legit," and can be successful, herbalife's structure whilst under the umbrella of MLM is pushing towards a pyramid scheme given their incentives to recruit than provide their products to the public. Their figures are disproportionate- more bonuses are paid for recruitment than sales and conveniently sales to public and products bought by distributors are not available as they do not differentiate. So i suppose the debate is where do you draw the line between a "good" MLM and a "bad" MLM structre. Mark Kay and Avon by comparison are completely different despite being MLMs. The product itself doesnt seem to get much press despite having Ronaldo and Messi fronting for it. That in itself says alot when you think of other health/ food products with big celeb endorsements. What are your thoughts on these companies going public?

    oh, I didn't know any of that about it being investigated.

    The answer to your question of where you draw the line, the answer is AT the PRODUCT. A legitimate MLM company ONLY compensates for moving product - NEVER for signing people up. Having a larger organization can mean a larger compensation for moving product but it must be contingent on selling something tangible.

    my thoughts (shortened) - If these companies have shareholders they are paying dividends to shareholders instead of that profit going to distributors. I don't know what herbalife promised but I know that NuSkin promised never ever ever to go public and then they did. I had quit the business for years and then a few years ago went to pick up my distro network again and saw that my compensation plan would be MUCH smaller than when I signed up. At the very least it's misrepresentation.

    I have similar feelings about paying celebrities for endorsements.
    ps Avon isn't MLM - it's another form of Direct Marketing.

    reply to Miss Beth
    send this answer to a friend


    Give advice or add a comment: