Myths Surrounding Herbalife Lawsuits
Here is some interesting information on two of the largest and most popular health and energy drinks available in the United States today, Herbalife and Quest. If you do an internet search on either one, you will find a lot of negative information about Herbalife. In fact, you may even find some legitimate comments from people upset at Herbalife’s pyramid scheme and lawsuits. I am here to tell you that they are definitely wrong.
Before I go any further, let me just say that I am in no way affiliated with Herbalife or any of its products.
I have never been a member of Herbalife nor am I associated with any company that sells Herbalife. But my information is just going to show that there is plenty of bad press out there and that is where the real story about Herbalife starts. Herbalife is a huge company with a very complicated structure that enables them to target their marketing to people who are extremely motivated and business-minded. Their compensation plan and their compensation plans are based on how much money their distributors make, not how many distributors actually sell Herbalife.
Let me give you something simple, which few people seem to understand.
Herbalife is not a pyramid scheme, despite what you might hear from the guy at the online chat forum who thinks he knows more than everybody else. Herbalife is a mutual benefit plan that rewards distributors for sales volume and maintains a base compensation that is based on the sales volume that the distributor made. The idea behind Herbalife lawsuits is the fact that distributors sold Herbalife when they were actually ineligible to receive any kind of compensation or benefit from it. For example, if you were a professional basketball player, you would probably retire and become an accountant or a contractor. That doesn’t mean that you would sell Herbalife to your coach, your mom, your grandma, your sister, or anybody else, because you would be retired and they wouldn’t care.
Now let me give you something even easier to understand.
If you are a high school football coach, you can find somebody to play your position who has the skill for the job. Then you can recruit other athletes, or maybe you can get another sport coach to come in and help out with the talent shortage at the high school. Once again, neither of those scenarios is a pyramid scheme, so why do people call it one? Because, if you are really smart, you know that a pyramid only has one level, which is the recruiting stage, while a mutual benefit plan has multiple levels, and therefore, it attracts the most people to join.
Another myth is that Herbalife is a scam, due to the FDA warning letter.
The truth is that the entire industry has changed since then. In the old days, you had to pay a fee to sign up as an affiliate, but now you can register for free. Also, the minimum you pay to become a distributor is less than what it was in Herbalife’s past.
Lastly, let me tell you something that really makes a lot of sense.
Two years ago, Herbalife was considered a bad company because they had a lot of distributors who were being run over by the pyramid. Now, Herbalife has virtually no new recruits, and all their top marketers have quit or are moving on to other companies. Also, the average income they give to their distributors has risen more than threefold in the last two years.