Busting The Myths – Find Out The Truth Behind The Herbalife Scam Rumors
The Herbalife Scam: What’s The Deal?
For a multi-national company that turns over billions of dollars and is endorsed on the shirts of many of the world’s most famous athletes, the extent to which Herbalife is still considered a scam is startling. No matter what steps Herbalife take to convince the world of its legitimacy, the question is still asked with astounding regularity: ‘Is Herbalife a scam?’
This myth-busting article aims to dispel certain rumours about Herbalife once and for all. Firstly, the accusation that its products do not work, and secondly the allegation that it is an illegal pyramid scheme. Most of these rumours will have been started by unsuccessful reps who have either failed completely, or have not achieved the potential rewards that Herbalife appeared to be offering. The problem Herbalife has, and the main foundation of the scam accusations, is the ‘blame culture’ that presides in society today. If I fail, it is someone else’s fault. If I lose money, it is because the business opportunity was a scam. Sound familiar?
The truth is that Herbalife is a legitimate business opportunity which has made a lot of people a lot of money, and could make you wealthy too if you learn the tricks behind running your business successfully. So here it is, in black and white. The truth behind the ‘Herbalife Scam’.
Is Herbalife A Pyramid Scam?
One of the first accusations hurled at Herbalife is that it is resembles an illegal pyramid scheme. To dispel this rumour it is necessary to look at precisely what an illegal pyramid scheme is, and how Herbalife differs. A Pyramid scheme is defined as an unsustainable business model, with the emphasis on recruiting new people into the scheme, without any worthwhile product being delivered. The lower down the pyramid you enter, the harder it becomes to make money, and the individuals at the very bottom of the pyramid end up losing money.
Herbalife is not an illegal scheme. It is 100% legitimate, and is listed on the New York Stock Exchange. It is an example of a multi-level marketing company, NOT a fraudulent pyramid scheme. Critics of multi-level marketing often claim that, despite its legality, it is nothing more than an effectively disguised pyramid scheme, but these tend to be people who have failed in the business, and are looking for somebody to blame. Herbalife offers genuine money-making opportunities to those people who are prepared to take the time to learn how to market and sell their products effectively.
Bad Products And Lawsuits…
So what about the products? Throughout its 30 year history, Herbalife has been dogged by allegations that its products are a scam. In a 1985 article in People magazine, Dr. Varro Tyler of the School of Pharmacy at Purdue University referred to the products as ‘primarily laxatives and diuretics’- in other words, weight-loss is achieved essentially by going to the toilet more. In the same article Kathryn Perry, the ex-wife of Herbalife’s founder Mark Hughes, and herself a former partner in the business, claimed that Herbalife’s products were ‘a gimmick’. Herbalife has also had to defend itself against various lawsuits from people claiming the products adversely affected their health, including causing liver damage and hepatitis. These accusations further fuelled the allegations that Herbalife is a pyramid scam, since ensuring that there is a quality product underpinning the business could appear to be considerably less important to herbalife than adding distributors to the network.
Herbalife As Market Leader
These are allegations that current Herbalife CEO Michael O Johnson has resolved to clear up once and for all. While in 1985 Kathryn Perry was able to allege that Hughes and his team, who were responsible for testing all of Herbalife’s products, had no background or professional knowledge of nutrition, the company now boasts that its nutritional advisory board is comprised of distinguished professors and award winning scientists. They are, they say, ‘backed with the strongest ethics and values’. They even claim to ‘set the standard by which others in the industry are measured’. Herbalife’s recent high-profile sponsorship deals with top soccer teams Barcelona and LA Galaxy add weight to these claims, and can be seen as a way of convincing the world that they have cleaned up their act, and are a company worth becoming involved with.
Herbalife also dismiss claims that they operate a fraudulent pyramid scheme by making it clear on their website that the amount of rewards a distributor will get out of the business will correspond to the amount of work that they put in. The rep can decide the level of time they are prepared to devote to the business, where and when they work, and how they structure their business. Achieving the right strategies in these areas is key to making money with Herbalife, and the failure of distributors to effectively master these crucial techniques is the root cause of the majority of failures – NOT the company’s structure itself. Success with Herbalife can be achieved by selling their products, and is not based entirely on recruiting new distributors, unlike an illegal pyramid scheme. The opportunity to earn more is always available to each and every distributor, provided they are willing to learn.
The Truth Behind The Herbalife Scam
So there you have it, the truth behind the ‘Herbalife Scam’. Herbalife as a company has taken drastic steps to prove its legitimacy and improve the quality of its products in recent years, and to offer its distributors the best possible chance of becoming successful with them. Knowing your target market, implementing effective marketing techniques and focusing your sales on the right prospects is the key to succeeding with Herbalife. The difference between success and failure is down to you, and you alone.
Herbalife is not a scam.
If you would like to find out more about Michael O Johnson and his efforts to clean up the Herbalife brand, you might enjoy this Bio Of Michael O Johnson.