Herbalife Pyramid Scheme: #1 Scam or Legit Money Making Opportunity?

Herbalife Pyramid Scheme


Herbalife is one of those companies that gets mentioned a lot when it comes to nutrition.

 

Every year Herbalife recruits thousands of people in order to sell their products.

 

I have personally seen some friends struggling to make money using business models common to companies such as Herbalife.

 

On top of that, Herbalife Pyramid Scheme accusations were pretty strong at some point!

 

So is selling Herbalife worth it? Is Herbalife a pyramid scheme? Is Herbalife a scam or a legit way to make money?

 

I am going to answer all these questions and more in this article, but first let me show you my #1 recommendation to make money online.

 

This make money online method can actually help you quit your 9 to 5 job and become your own boss, as long as you follow the training and put some hard work into it!


herbalife pyramid scheme

 


What is Herbalife?

 

Herbalife Nutrition is a company that sells health products for weight management, sports nutrition, dietary supplements and so on.

 

Herbalife was founded in 1980 and has its headquarters in Los Angeles, California.

 

It operates in 94 countries through distributors located all over the world.



How to buy Herbalife

 

Herbalife do not have physical stores and therefore, their products are sold in two different ways:

 

  1. Via any means used by their distributors, such as social media or door-to-door sales
  2. On the goherbalife.com website, where distributors have their own space to sell products online

 

Herbalife sells a range of different things:

 

  1. Weight management products, such as meal bars and cell activators.
  2. Protein snacks, like protein shakes and bars.
  3. Targeted Nutrition, such as supplements and fiber drinks.
  4. Energy & Fitness, such as energy boost tablets.
  5. Herbalife24, which is their sports nutrition range.
  6. Herbalife SKIN, for example moisturisers and toners.

 

Having looked online, their products do not seem to get high reviews.

 

For example, the website below shows 192 reviews that contain star ratings with an overall score of less than 2 and a half stars out of 5... Pretty bad, I would say!


herbalife products reviews



How does the Herbalife Business Model work?

 

In order to start selling with Herbalife, you need to follow these steps:

 

  1. Go to Herbalife's website
  2. Click on the "Business Opportunities" tab
  3. Click on "Get started now"
  4. Fill in and send the application form

 

A representative should get back to you within 3 to 4 days and explain what the next steps are.

 

As an Herbalife Nutrition Distributor, you can participate in three ways:

 

  1. Join as a "Preferred Member" to buy discounted products
  2. Sell Herbalife Nutrition products to make retail profits
  3. Recruit others who want to consume or sell Herbalife

 

Preferred Members can join by paying $34.95 and, in the event of them wanting to convert to Distributors, they can buy a Conversion Pack for $59.95 and complete the Distributor training.

 

If you decide to join directly as a Distributor, then you will either have to purchase the International Business Pack for $94.10 or the International Business Pack - Super Starter for $124.10.



Selling online with GoHerbalife

 

If you wish to sell Herbalife online, then you can do so by creating your own space on goherbalife.com.

 

The downside to selling via goherbalife is that, when someone browses the site to buy a product, they first have to click on a button that connects them to a random Distributor.

 

This means that you might end up being unlucky and not getting as many customers as other Distributors!


goherbalife.com shop



How much money can you make with Herbalife?

 

Herbalife states that there are six areas of potential income, when becoming a Herbalife Distributor:

 

  • Retail Profit
  • Wholesale Profit
  • Royalty Overrides
  • Monthly Production Bonus
  • Annual Bonus (Mark Hughes Bonus)
  • Promotions

 

The video below explains the Herbalife Business Opportunity in fine details:


 


Can the Herbalife Business Opportunity membership be cancelled?

 

Membership can be cancelled at any time, however you only get your full starter kit refund if membership is cancelled during the first year.

 

Any unopened products can be returned as well (within the first year) and Herbalife will pay for shipping.

 


Herbalife Pyramid Scheme accusations and FTC

 

What is a Pyramid scheme?

 

Wikipedia explains this well by stating: "A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal."

 

In March 2014, the FTC opened an investigation due to the amount of consumers complaints received on the Herbalife Business Model.

 

The investigation went on for a long time and in July 2016, Herbalife agreed to change its business model and pay $200 million to the FTC.

 

Both the settlement and the agreement allowed Herbalife to continue to operate and stop from being accused of being a pyramid scheme.

 

In January 2017, around 350,000 cheques were sent to Distributors that had worked for Herbalife between 2009 and 2015.

 

FTC's lawsuit accused Herbalife of having deceived consumers into believing they could earn a substantial income from the business opportunity.

 


Is it worth trying to make money with the Herbalife Business Opportunity?

 

In 2017, Herbalife released a Statement of Average Gross Compensation to United Kingdom members in 2016:


herbalife average compensation - herbalife pyramid scheme

 

As you can see, the majority of people (70,9%) made between 1 - 1,000 GBP in one year.

 

Only around 3% of people made enough to be considered a sustainable income!

 

This shows that selling Herbalife is simply not the way to go if you are seaking financial freedom.

 

Herbalife is not a scam but their business model does not work, especially since many Distributors are taught to sell products via their private social media profiles.

 

What is the problem with the method above? Well, using your social media personal accounts will only allow you to reach out to friends and family, who will eventually get tired of your Herbalife sales pitches!

 

The right way of making money online is by getting people to come to you and not the other way around.

 

Only this way, you will be able to sell your products or services to those who really want/need them!

 


What can I do to make money then?

 

Making money online requires effort and a solid plan.

 

Here is what a plan would normally look like:

 

  1. Choose a Niche - Anything that you are passionate about, for example Football.
  2. Build a Website - You can build one for FREE and you do not need to know how to code!
  3. Attract Visitors - Write content related to your niche, grow your website authority and let people find you in Google!
  4. Earn Revenue - Make money by receiving commissions for products sponsored on your websites or by selling your own products or services.

 

You can do all of this without having to invest any money. You might eventually want to spend money in the future to improve the look of your website or buying better tools, but this won't be necessary until you start earning money 🙂

 

Here is my #1 recommendation to make money online which follows the business model that I have mentioned above. You can join for FREE and can build up to 2 websites!

 

On top of that, I will become your personal coach and will be able to help you in your journey to financial freedom 🙂



Have you had any experience with selling Herbalife? Were you a Distributor during the Herbalife Pyramid Scheme accusations period? Let me know by leaving a comment below 🙂






Author: Cristina

Hey guys, I am Cristina Pucci, the owner of TheOnlineEntrepreneurSecret.com. I am here to help you start your online business and avoid scams! Feel free to email me for any questions at cristina@theonlineentrepreneursecret.com :)

21 thoughts on “Herbalife Pyramid Scheme: #1 Scam or Legit Money Making Opportunity?

  1. This kind of business model is very common especially here in my country. I really don’t recommend selling to people especially if this is not your strength. Online marketing is really hard and should be given enough dedication and effort and I agree with you, people should be coming to you in order to be successful and not the other way around.

  2. Hey Cristina,

    I’ve really enjoyed reading this article as you’ve provided us with tonnes of valuable information on Herbalife Nutrition. I was about to join this program, but when you listen out the percentages of success people are having in this platform, I kinda lost interest. I’m willing to work really hard in order achieve that laptop lifestyle; however, if the odds aren’t that good, there’s no point in taking the action.

    Thanks a lot for taking your precious time in writing this detailed blog. Keep up the good work Cristina!

    1. I am glad I could help you make a decision 🙂

      Let me know if you need any tips on starting your own blog!

      Cristina

  3. Hi, actually this is my first time of hearing about this, I love making money online but as well i also look out for scammers. I will go by choosing a niche, building my own site, attract visitors and earn revenue. Its all about creativity, thanks for the recommendation. I will try my luck and see if it will turn out good

  4. I have personally tried making money through these product selling pyramid schemes. Even many of my friends and family have put in alot of time, money and energy, only to end up with little or nothing. 

    On that note, I have gone the way of building a website. I have chosen a niche and published two articles. I am still working on boosting my traffic attraction.  

    1. Keep on writing quality content and persevering with your website. You will see some results soon 🙂

      Best of luck,

      Cristina

  5. I have been with Herbalife too for sometime and I will agree with you that you can’t get financial freedom with Herbalife. The right way of making money online is by getting people to come to you and not the other way around and that is exactly what wealthy affiliate give you. You are thought the art of marketing on wealthy affiliate with additional opportunity to host up to 50 websites if you go premium @$19 for the first month!  Any newbie can be successful with wealthy affiliate, though it takes time and effort to succeed with wealthy affiliate.

    1. I love Wealthy Affiliate and I cannot see myself going anywhere else now 🙂

      Thank you for stopping by!

      Cristina

  6. Hi Cristina,

    thank you for writing this informative review about Herbalife Pyramid Scheme. I’m currently working on my website and I am hoping to reach financial freedom one day! 

    Do you have any tips on how to get a website to rank better, please?

    There is so much information out there about SEO and it can get very confusing!

    All the best,

    Alex

  7. Thank you for such a comprehensive review of Herbal life.  Someone had tried to recruit me sometime ago but I had blatantly refused because I did not want to promote any products.  I am into crpto currency stuff. Wealthy Affiliate has helped many online entrepreneurs make a living at the comfort of their homes

  8. Hey! Thanks for sharing this wonderful review on herbalife pyramid scheme, I don’t really know anything about it but this wonderful review is informative and educative on how to make extra money with herbalife .

    I would give it a thought and participate in the scheme. Thanks for sharing this nice piece.

  9. Hi Cristina. How are you? Thank you very much for writing this article about Herbalife. And your analysis of their business model has made me put things into perspective. You’re right. The model should encourage it’s distributors to seek ways for consumers to look for them. And not push distributors to be chasing after their friends and family with undesired sales pitches.

    What’s more annoying than an Herbalife distributor? The same Herbalife distributor after you bought from him the first time. LOL.

    1. Haha indeed, Henry!

      Once they sell a product to you once, you are pretty much doomed 😛

      All the best,

      Cristina

  10. Hello there, firstly I would like to appreciate your effort for writing about this informative post on Herbalife Nutrition. Personally I have had experience with scheme like this one where you register then you sell product and also refer people to register under you. I feel there are people who are really making money from this but if you don’t have a good marketing Skill, it can be quite challenging. All in all, it’s not a bad idea for making that extra cash. 

  11. Cristina, thank you for sharing your article about Herbalife Pyramid Scheme. I used to sell Herbalife back in the ’90s and I was able to make a little money but not enough to call it a business. My problem was I didn’t stay faithful while working my business and it failed. I didn’t talk to enough people outside of my family and I was young at selling Herbalife.
    I never knew Herbalife had all those issues with the FTC and that’s a low percentage of people that become successful in selling the products.

    1. Hey LeNard,

      Sorry to hear you have had issues with Herbalife Pyramid Scheme.

      I hope your next business project goes well!

      Let me know if you need any advise!

      Cristina

  12. I appreciate this. I agree with you, the Herbalife business model looks more like that of a pyramid scheme. A good business model should encourage customers that need your products to locate you and not the other way round. Though the product works, at least the weight management product I have tested, however, making substantial money through Herbalife would be difficult. Thanks for helping on what I can do to make money in place of Herbalife. I would go for this. 

    1. Thank you Tolu 🙂

      Unfortunately, I have seen many people wasting time in trying to sell these products to those who are not interested in them.

      I believe Affiliate Marketing is the way to go, in order to reach financial freedom!

      All the best,

      Cristina

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