Is Herbalife a MLM ? – WHY Cristiano Ronaldo Promotes it?

is herbalife a mlm

Is Herbalife an MLM? Yes! It’s one of the largest multi-level marketing cooperations that develop and sells Nutritions.

Clear your doubts?

But, there are more interesting and attractive facts about Herbalife. You gonna enjoy them as you go. Grab your coffee and lets spy on Herbalife.

Herbalife headquartered in cayman island in Los Angeles, California with estimated staff strength of 8000 and its with 3.2 million distributors. (That’s a Lot) But when you compared to Avon it’s less, Avon has 6Million distributors around the world.

Now let’s talk about money. Money is everything! Is it?

Being a leader of the MLM industry, Herbalife life makes good sales and money.

Here is the Herbalife revenue report for the last few years.

  • 2015 Revenue -$4,470 Million
  • 2016 Revenue-$S4’488 Million
  • 2017 Revenue-$4,427 Million
  • 2018 Revenue -$4,900 million – Best year Ever 🙂

But Herbalife claimed Q2 Sales went down by 3.5% in 2019 due to challenges in China.

?Our performance demonstrates the strength of our geographic diversity as this was the Company?s second-largest quarter in history, despite the challenges in China.?

Micheal O johnson, CEO Herbalife

Micheal O johnson
Micheal O johnson

Herbalife businesses growing and flowing but they faced many challenges in many ways. Let’s look at the story of Herbalife.

It is Storytime!

Herbalife Story!

Herbalife founded by Mark Hughes in 1980. He started selling weight loss products trunk of his car. He was motivated about the weight loss products because of his mother early death due to unhealthy eating pattern.

The company goal is to “Nutritional Habit of World! (Yet to be achieved).Mark’s first product was a protein shake to manage people’s weight. He designs the company as a direct selling method, Multi-level marketing model

But Herbalife getting started many complaints from different authorities as Herbalife products, pyramid schemes, etc…

In 1982 Herbal life got their first complaint from food and drug administration regarding food grades and ingredients. Next, in 1984 Department of justice, Canada filed a case for misleading advertisements.

Maybe they have used Then and now image like below:) I was kidding.

But 1985 Inc magazine introduced Herbalife as a fast-growing private company in Unites states. With complementary, their net sales jumped to $423 million. But the same year California attorney general sued the company for inflated claims about the Herbalife products. And that lawsuit hit the company and the same year they had to laid of 800 staffs and paid $850,000 Lawsuits and discontinued the two products.

After clearing some dark cloud Herbalife became public traded company on NASDAQ and rebranded as Herbalife International. But Herbalife stocks didn’t do well because of the negative publicity of FDA law suites. And that happened in 1986.

In 1988 the company was expanding to other countries including Japan, Spain, New Zealand, Mexico, and Israel. That made the business opportunity to Herbalife distributors in those countries. By selling the products they start their own business ventures. Later stage company moved to fragrances and facial cleansing products and expand the business to another 32 countries in the world.

Later Herbalife founder needed to make the company private by after observing that Wallstreet undervaluing the company. But that made issues with stockholders. Unfortunately, Mark Huges died in Age of 44 in California. Reason for the death of this great businessman was an overdose of alcohol and anti-depression.

mark huges
Mark Hughes

After the changing the company leadership after the founder’s death, In 2003 April Micheal O johnson became as a CEO Of the Herbalife. He joined the company after 17 years of his service to Walt Disney Disney Company. Micheal has brought the company private again and made many internal changes and structure.

In 2004, Herbalife went public again on NYSE and where its remain till today as publicly-traded MLM company.

But After 10 Years again the things went wrong. I mean really wrong!

In 2014 Herbalife faced serious FTC (Federal Trade Commission) case. Not only that Pershing Square Capital, Hedge fund manager, but Bill Ackman also?joined the same. They complained Herbalife business model is Illegal pyramid scheme and it caused to stock price to fall down.

Drama became an end by 2016, And Herbalife agreed to pay $200 Million for “Deceptive and Unlawful Acts”. FTC Used that money to send 350,000 distributors and Herbalife became clean without Pyramid scheme sticker on them. (Win-win situation:)

It was a long story with ups and down as well as lots of MONEY!

Is Herbalife a Pyramid Scheme?

The short answer is there was allegation proved Herbalife is a pyramid scheme. Even the FTC settlement said “Deceptive and Unlawful Acts”.

But Its work as an MLM business model that distributors can make income by-products sales and expand their network by recruiting new members.

This is John Oliver talks about the Herbalife with a viewpoint of anti-MLM.

Are Herbalife Products Good?

is Herbalife MLM

When you clear your doubt about company history, is a pyramid? scam? Next is you will start looking for products.

You might ask your friend,

Hey Bro, are these products can sell, are they good?

He might say,

No way! Who gonna eat that? But wait! Is it made out of weed? lolz!

Most of the stories like above because of Herbalife logo like Weed plant 🙂

After decades of selling of nutrition supplement products, Herbalife gained the trust and build an audience.

Especially when the supplement market is on its high competition, logically I do not think anyone will spoil their images by producing bad products. Especially when it comes to MLM business model product should be genuine and promising. Otherwise, distributors will move away.

But Company like Herbalife has their own fans and haters the same as other MLM companies. People who successfully with MLM praised it and People who failed to hate it. Lols!

That is the nature of the business and do you know there are haters on Mcdonald as well.

Latest position in Herbalife they produce many product categories:

  • Weight loss protein shakes
  • Protein bars
  • Sport hydration
  • Energy and personal care product spills

Company Best selling product is formula 1 protein shake made out of soy.

It is always better to go for natural fruits, vegetables and free water to be healthy instead of going for pills. But as per the people they said they are BUSSY!!!

In Herbalife history, there were cases reported about the ingredients of the products. Some products have discontinued and some has changed the product producing structures. But recent online research shows Herbalife has more compliments than complaints.

Hey Dude, How did you do online research for Herbalife?

That simple! I went to a few sites that sell Herbalife and read the reviews. Especially; I checked on Amazon reviews (But I know there can be fake positive reviews as well)

Does Herbalife Work?

Still on doubt? Yes, it’s natural. you cant sell someone any crappy products and saying it a miracle and you will lose your weight in 2 days.

But it’s happening in some places in the world.

Some distributors trying to sell the product as a miracle, magic, amazing…. you know that marketing words!

Look at what undercover reporter found. Don’t be surprised one lady claimed she got pregnant after using Herbalife! Best complementary ever 🙂

But actually, Herbalife struck on distributors not to make a fake promising result on the products. You can notice that it on their training for distributors as well.

Other than that look like some gets a good result and others complain, Herbalife MLM going on its own way…

Is selling Herbalife worth it?

Looking to make money? Here is the fun part begins!

In a simple way, you sell some of the products, You recruit more dudes to your team, You gonna make BIG money!

But before you decide anything, you have to think about How practically you can join this game.MLM, not a business model that you can handle by only on phone or internet. You need to meet the person and do direct selling.

You need to explain to the unknown people about the business model. Most of the time they will reject you as a scammer and they definitely think you are introducing them another pyramid scheme.

So if you a cool guy who has time to meet new people and talk to them, MLM will be your way. But if you are a person who has limited time, other responsibilities then MLM could be challenging for you. Most probably you will burn out before the second month-end.

If you are Lazy-guy who wants to sit behind a computer and printing the money, you can try something like affiliate marketing and start your own ATM. I m not kidding! At least make a few thousand dollars per month without burning your energy in front of arrogant faces. I know how it feels!

My suggestion is to you is without looking at how much money you can make, you should take time to look at how the business model runs.

In reality, you might not make much money by only selling the products, To make big money, you need to recruit new members into the team. Hope you got it!

Herbalife Cons

If you are a hard hitter and gonna make fortune from Herbalife I would congratulate you! Because despite the challenges there are people in this Herbalife MLM.

Here are some points that make you stronger as a HULK!!!!

  • Succesful History

With the ups and downs in business history, Herbalife is still going on a successful journey. It has a great four decades of challengers and success. You can promote their successful four decades to your new referrals and it builds their trust about the company.

  • Million Dollar Promotions

Herbalife Spends millions of promotions.Especially on sports sponsorships. Sponsorship goes to world-leading soccer teams, sports stars and so on. Don’t you about them? look at the list

France National volleyball team

LA Galaxy

Cristiano Ronaldo

FC Barcelona

Lionel Messi

Sponsored Basketball team -Herbalife Gran Canaria

  • They Give Charity!

Charity is always good and tax not so good!

It is a business world that needs tricks to avoid business challenges. Herbalife has its own Foundation that helps different communities around the world.

Whatever it is, We should appreciate the charity. Someone get help from it. is it?

Why Herbalife Not working – Cons

Competition

Herbalife doing their operation more than 40 years and not only Herbalife there are many MLM companies trying to sell the products and expand their teams. So don’t think it’s an easy target to start a business and expand. It needs lots of hustle.

Nonstop Complains

Yah That’s true! You might notice Herbalife history had a chain of allegations, complaints regarding the products and the business model as well. Whenever case coming up and it takes the media attention as well. Negative media can affect the Herbalife growth and Herbalife distributors business expansion as well.

Is Herbalife a Scam?

According to me, Herbalife is not a scam and there is no way that I can prove that as a scam. They Are an MLM business model and it needs to sell the products and recruit the team members as well. After many cases, Herbalife operation going on even after FTC observation. So there is no way to say Herbalife scam.

Don’t afraid about scams!

Do your research before you join. Same thing you do right now? 🙂

Conclusion

Herbalife products have no issues and they are on the standard. Even the market has proved it.

But if you think about joining as a distributor, Then you might need to take time and think twice. As I mentioned above think of the practicality of the business model.

This is a marketing company and they market it in different attractive ways and make you as a distributor. So be smart and do your own research. The reason is you need to invest lots of time and energy into it and you cant be sorry after you made your decision.

As I make my side hustle, you can try Affiliate marketing. Passive income is the best income in the world.

Work from the computer and Earn More!

All the best with your venture!

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