There have been so many controversies about Herbalife MLM. Many people are not too sure if the Herbalife MLM is legit or scam. But the truth will be revealed in this review. The mere mention of “Herbalife” makes you want to ask if the company is into the selling of cannabis or weed. Even the company’s logo gives some credence to such thought.
My research shows that the company is not in that line of business. Herbalife is into the business of selling weight-loss, beauty and nutritional supplement products. As you read this review further, I will shed more light concerning the company, its products and compensation plans so you can make informed choices.
What is Herbalife?
Herbalife is a multi-level marketing company based in the United States of America. The company is specifically based in Los Angeles, California while the incorporation of the company was done in the Cayman Island. Founded in 1980 by a 24 year old man known as Mark Hughes, Herbalife started its journey into prominence. He later died in 2000 at the age of 44 due to an overdose of alcohol and antidepressant.
Herbalife became a public company in 1986 on NASDAQ. This company is a colossus in the MLM industry. With operations in over 90 countries, Herbalife ships products worth more than five billion dollars every year. The company is also known for philanthropy. The Herbalife Nutritional Foundation supports the nutritional needs of many poor children across the world. Herbalife has faced many challenges in the past.
At a time, Herbalife was sanctioned by the Food and Drug Administration (FDA) for making false claims regarding its products. It also faced a lot of backlash from doctors and nutritionists. The company came out of all these tribulations and emerged as one of the Forbes Best 500 Midsize Employers. There has been constant accusation that the company is a pyramid scheme. But this is not true.
Herbalife products are available in 5 categories. This includes weight-loss, vitamins, fitness and energy. In recent time, the company delved into skin and healthcare products. Their flagship products like Formula 1, 2 and 3 are the newer versions of the original formulas that were sold by the founder, Mark Hughes.
Is Herbalife a pyramid scheme?
No, Herbalife is not a pyramid scheme. They have good products that help improve your health and wellness. Herbalife was sued by Financial Trade Commission (FTC) for unsubstantiated claims and company paid $200 million as compensation to avoid a shutdown. This singular act made the company escape from being tagged a pyramid scheme.
The Financial Trade Commission (FTC) took the company to court because more than 350,000 people lost their money in the business between 2009 and 2015. Herbalife paid $200m as compensation. Many of the distributors who lost their fortunes in the business were settled with this compensation.
This litigation shows that Herbalife defrauded its distributors to warrant the FTC suing them in the court of law. The first set of cheques was sent out in January 2017 while the second round of cheques was in May 2019. The amount on these cheques is between $100 and $9,000.
The compensation plan
On paper, the company has a good compensation plan. These plans are of 7 different levels. They include:
- Retailers’ profits – You can earn between 25% and 50% profit if you sell some of the products at retail prices. Your ranking level determines the percentage you get when you make retail sales.
- Whole sellers’ profits – This plan is for people who buy products at a discounted price and sell to their downlines in wholesale.
- Monthly royalty plan – The reward at this level is when you get to the Supervisor position. At this level, you get the chance to earn 5% commission. It takes a lot of work to become a supervisor because your downlines must be very active too. To become a supervisor, you must have made product purchases of between $3,000 and $4,000 overtime.
- Production bonuses – This is a monthly sales bonus for teams. Teams must be in 7th position to earn this bonus. Between 2% to 7% can be earned as the Top Achiever of the team.
- Yearly bonuses – There are annual bonuses for top achievers. This is based on your performance over a period of one year.
- Special training events and vacation – This is a great incentive for sellers who maintain consistent performance in a particular year. This plan makes a distributor mount some pressures on the downlines.
- Mark Hughes recruiting award bonus – The Company sets aside 1% of its profit which is shared among top distributors. It is mostly those who joined in the early stages of the business that benefit from this bonus.
What does it cost to join the Herbalife MLM?
To start as a distributor, you will have to buy the starter kit. There are two types of starter kits – International Business Kit which goes for $94.10 and the International Business Pack-Super Starter which costs $124.10. You can visit https://www.herbalife.com/ to fill out the form and get started.
About Herbalife products
Herbalife products are quite popular. Apart from that, the products help people to live healthily and happily. The company focuses on 4 types of products – health and skincare, energy and fitness, nutritional and weight control products.
- Health and skincare – A radiant and healthy skin is a must for people who love their skin. For this purpose, there are different products such as collagen booster, acne kit, cleanser, moisturizer, toners, serums, and facial masks.
- Energy and fitness – If you are an athlete, your body needs nutrition to perform better. Herbalife 24 is one of the best products you can go for.
- Nutritional products – No matter your age, you need good nutrition to enhance your health. CoQ10 is a nice product to boost your nutrition.
- Weight management and control – This is essentially for fat people. Healthy Meal Shakes is ideal for weight control and management.
Are Herbalife products safe and healthy to use?
Herbalife has a lot of haters and fans just like every other business in the MLM model. The products have worked for some people while others say the products are ineffective. Surprisingly, the reviews about Herbalife on Amazon are quite positive.
The products are good as far as they are used in moderation. Some distributors make bogus claims about the products. Such claims go against the company’s policy which could lead to the immediate termination of such distributors.
Who is it for?
Herbalife is perfect for anyone interested in making some money by the side. This makes it ideal for students, housewives, nursing mothers, single mothers, retirees and pensioners.
- The company has been in operation for 40 years
- Herbalife offers a full refund for its distributors as far as the product is not tampered with.
- It has a flexible working schedule.
- You are not forced to buy sales tools if you join the business
- There is no minimum purchase for any month
- The products are overpriced
- Products are not approved by the FDA
- The company has been involved in litigations and controversies for lying about the formulation of their products.
- Too many complaints and bad press has affected the company over the years
Legit or scam
Herbalife is not a scam. It is legit.
Conclusion: Is Herbalife MLM recommended?
No, I won’t recommend it even though it is a legit MLM.