Is Herbalife a Pyramid Scheme? (all the myths debunked!)


Is Herbalife a Pyramid scheme or not?

This article contains all the necessary information for you to figure that out.

Despite the fact that the company has benefitted a lot of people with its wide range of nutritional products, still, some are concerned about it being a wallet-ripping fraudulent scheme.

Therefore, from the truth about Herbalife’s multi-level marketing scheme tactics to the basics about the company being legit or not, I have brought it all here under one roof for you.

So let’s dig in and explore the facts about one of the biggest tycoons in the dietary supplement manufacturing industry – Herbalife.

Truth About Herbalife being a Pyramid Scheme or Not

“Is Herbalife a Pyramid Scheme?”

Since this is one of the most frequently asked questions about Herbalife, I dug deep down the web sources to find out what individuals have to say about their experience rather than Herbalife itself.

And based on the information I found, I’m afraid, I have to say that, No and Yes.

No, in the sense that they are into the production and selling of real helpful dietary supplements.

Yes in the sense that – Herbalife is a pyramid scheme with an MLM system. And, unfortunately, it has ripped many people out of cash until now except a few (the ones at the top of this pyramid).

Pyramid Scheme

So, before I get into the “how and why” of Herbalife being a pyramid scheme, let’s create a simple idea about the functioning of this MLM (Multi-Level Marketing) company.

Basically, Herbalife recruits distributors to buy products from them in bulk and then either resale them or use them.

And you can make money out of it, only if you’re able to convince more people about using the products and them making them buy those.

But what are the chances of earning a good side income being a Herbalife distributor?

Unfortunately, they are almost negligible.

Why?

Because not everyone’s surrounded by a community of rich fitness enthusiasts who are willing to invest money in buying dietary supplements.

Apart from this, there are other several risks involved.

For example, I came across this post where a guy mentioned how he was provided with about to expire Herbalife products from the company to resell as a distributor and how he wasn’t able to even retrieve the principal amount back because before he could convince people to buy those from him, the products expired.

And he lost all his money!

So, even if you invest a large amount, you might not be able to make as much as promised because after the first 12 months have passed on the products that are unsold, you won’t be able to get your money back.

This way, Herbalife makes the money it promised that you’d make, but in reality, you’re just left empty-handed, stranded in the middle of nowhere!

But if we look at the brighter side, considering the best possible scenario, there’s a 1% chance that you might be able to make some extra bucks with Herbalife.

However, for that, you’ll need a lot of money and courage to invest it without the fear of losing it, and lastly, persuasive nature, of course!

Let’s say you have all of that, and you manage to sell out a good number of Herbalife products in or out of your circle; you’ll be awarded enough volume points to be promoted to the next level.

The perks of moving onto a higher level include earning greater commissions on sales, but remember, your retail commission won’t change even then.

And then, from hopping onto one level to the other, you’ll eventually start making more and more.

But again, only if you love the exposure and have the guts to persuade people into buying the products or joining the Herbalife team.

Besides the MLM thing, some of their products are really giving a shot.

Is Herbalife Legit?

Of course, Herbalife is LEGIT!

It has been manufacturing and selling health and wellness products for the past 40 years.

People residing in 90 different countries of the world have made the best use of them and achieved their desired body goals.

However, those who serve as the mediators (the distributors) do not benefit enough, despite being told that they can make heaps by becoming a part of the Herbalife team.

FAQs

Is there any proof that Herbalife is a pyramid scheme?

AWhile the distributors (young entrepreneurs) make all the effort, Herbalife earns 90% of the credit and money out of it. This alone is solid proof that it is a pyramid scheme.

What is the Herbalife scandal?

A: Herbalife was found misleading its distributors by luring them into their MLM scheme to get their products sold. Which was later found by the FTC, and the company had to give a heapy amount of $200 million as compensation.

Is Herbalife an MLM?

Yes, Herbalife is an MLM, aka Multi-level Marketing company that has been manufacturing and selling nutritional goods for the past four decades.

Do Herbalife distributors make money?

Yes, they do, but unfortunately not as much as promised by the company (that’s 73% of the product revenues).

The thing is, there are some Herbalife distributors who make money.

The question is, how many of them?

How much do they make? Do the majority of Herbalife distributors make money or not?

If you spend enough time searching the internet for this information, you’ll find lots of claims that only a tiny fraction (something like 0.01%) of distributors make money, and that the rest lose out.

You’ll also find claims that 99.9% of Herbalife distributors lose out.

And you’ll find some people saying it’s impossible to predict whether a Herbalife distributor will be profitable or not: all we know is that most aren’t.

However, you’ll also find some other people claiming that they’re earning good money as Herbalife distributors.

If you ask these people why they’re making money and most others aren’t their explanations usually boil down to one or more of the following:

  • 1) They work hard at building their business (i.e., recruiting new distributors).
  • 2) They are very good at selling (i.e., recruiting new distributors).
  • 3) They network with other successful distributors.
  • 4) They’re doing something no one else is doing, which means they’re getting the lion’s share of customers/distributors.
  • 5) Most Herbalife distributors aren’t working hard enough to make a success of it.

Is Herbalife bad for your kidneys?

Yes, if you’re a kidney patient, then I would recommend you to stay away from Herbalife products as your kidneys might not tolerate some of their ingredients.

Why is Herbalife not FDA-approved?

Herbalife is not FDA-approved because FDA no longer takes part in checking and monitoring the manufacturing process of dietary supplements until and unless a new ingredient is added to the product.

How often do Herbalife distributors get paid?

Herbalife pays its distributors twice a month/ after every two weeks.

How much does the average Herbalife distributor make?

Unfortunately, most of the Herbalife distributors make nothing close to the average annual pay of an American citizen that is $51,916.27.

With Herbalife, you’ll hardly be able to earn around $24,588 yearly.

Final Thoughts on Herbalife being a Pyramid Scheme

To wrap it up, yes, Herbalife is a pyramid scheme, and I would not recommend you to sign up for their program as a distributor if you’re already trying hard to make both ends meet.

The reason is that there is no guarantee if you’ll be able to earn back as expected. In fact, the high chances are that you might lose the money you invest in the first place – something totally undesirable.

Therefore, if you’re looking for ways to have some side income, I would say, go for anything other than becoming a part of team Herbalife.

I hope this article helps you make an informed decision about whether you should become a part of Team Herbalife or not.

Baiza Batool

Baiza Batool is a fitness enthusiast and clinical psychologist who believes that mental wellness is essential for attaining physical well-being. She has knowledge of human physiology, psyche, and how they interact with one another to hinder or help the process of achieving your fitness goals. Baiza wants to use her research and writing skills to sum up all the information she shares on her blog in order to make it easier for others who are looking for help.

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