Chances are you have probably heard of Herbalife, tried the product or even been involved or tempted by joining its business opportunity. So to the big question, ‘Is Herbalife a scam?’ Surely a company which has been around this long and been this successful, cannot be.
Herbalife is huge. It’s up there with Amway as one of the world’s largest Multi-Level-Marketing programs and has been around since 1980. It is available in 91 countries and has a company valuation of $8 billion. So it’s pretty big. And it far surpasses its competition in terms of sales. So something is working..
Let’s delve a little deeper and find out what is the Herbalife Business?
Company Name: Herbalife
Website URL: http://www.herbalife.com/ OR www.herbalife.co.uk
Cost: Starter distributor membership $94.10. Odd number?
My Ranking: 3.5 out of 5
My recommendation: Herbalife is one of the big ones, but that doesn’t mean that you will be successful. If you want a surefire way to make an income online, check out my top recommendation
So What is the Herbalife Business?
It’s a classic Mulit-Level Marketing progam which involves direct selling. The ‘Herbalife independent distributor’ is the core of the business and they are what make the products sell. If you were to join you would become an independent distributor. When you join Herbalife you get a member pack which is $94.10, plus you will have to pay about $40 a month for your company website, if you want one. This member pack also includes some products samples and the rights to buy Herbalife products at a discounted rate.
You then make money by selling on these products at a pre-defined mark-up OR you recruit others into the Herbalife program to become your downline and make money on all the sales they make plus a little bit for the initial referral.
Herbalife Product Summary
Herbalife claims it is ‘no 1 in the world in the meal replacement shake category’. More widely, they cover the diet and health products including vitamins, protein drink, snacks all targeted specifically at different categories such as mens health, womens health, childrne, allegies, digesties, immune system and stress. The also have a range of beauty products.
The best selling product at the moment is the Formula One protein shake which is a whole meal with 21 vitamins and minerals included and was one of the first products ever to be launched with Herbalife.
Who can be a Herbalife Independent Distributor?
This is a question about mentality rather than capability. I believe to be direct seller and someone who recruits people face to face into a business takes a certain kind of person. You have to be strong willed, have thick skin and let’s be honest, be good at selling. Pushy even.
Most MLM schemes request that you start by selling to friends and family. So you have to be prepared to host parties, and have some friends maybe even shy away from you. It can be really awkward. Some people don’t mind at all and some excel at hard selling, but it’s not for everyone. So before you give up your money, have a think if you can be this kind of person.
If you would prefer to have your customers approach you rather than the other way around, see if this business could be for you instead.
Can you make money being Herbalife distributor?
Absolutely. The company wouldn’t have existed for all this time and be one of the big boys if it weren’t possible. It’s true that most make a little extra income but few make it really big. Big enough to make it your full time income. The unfortunate thing is that those who make a little extra income have to put in alot of work to get even that.
These are some numbers from their income sheets for 2014. So you see it’s possible to make A LOT of money, but highly likely that you will make nothing or very little. with 71.9% making less than $300 a month.
How to Join Herbalife
It’s quite simple. You just go to the website Herbalife.com and fill in the form and someone will contact you to talk you through the business proposition, so make sure that you have the questions ready to ask. There isn’t that much information on the website as to the business proposition itself or the level of training or support you get, because they want to talk this through with you. Slightly annoying as I like to see what’s on offer first before I commit.
Think about how they suggest to gather your leads as this could be key to success or failure. Each team within Herbalife may have a different strategy. Ask them how much work you might need to put in, how many hours and how you would structure your week. Also what support would you et and what training is included, and importantly, are there any hidden extras? Would you mostly be working from home, mostly going out to venues, or parties to sell products? What are their expecctations. Each team has different standards and different protocols.
If you are happy you are asked to pay for the member pack and you get access to the training. Then off you go!
- They are a well established company
- People have been really successful, so it could be you
- The Herbalife independent distributors as a whole have been paid out a lot of money over the years. See the above table
- The products are strong and of good quality and well known globally. They are some of the best in the industry, which gives you a great grounding to work with
- The awkwardness of direct selling is the biggest drawback here. I have been approached by many friends over the years to come to a ‘party’ where you know you will be guilted into buying a product. It’s just not conformable to me.
- The generation of leads. If initially you are selling to your friends and family, and they all fun out, then where next. The training isn’t comprehensive enough to guide you on how to find new leads.
- As you can see from the table above, you have to be in the top 30% to make anything anywhere near decent. And that takes a long time. I have no issue with working hard for your reward, in fact I believe that is the the way to spot a scam, but is it asking for you to work TOO hard? You decide. These people who have achieved a lot of income, are usually the ones who were there from the beginning and have benefited from years of downline commissions. This skews the numbers even more unfairly/.
To answer the question, Is Herbalife a scam? Herbalife is definitely NOT a scam. It’s completely legitimate. The reason why some people view it as a scam is they expect to just join and get rich quick. This is not possible in any viable business opportunity. You have to work hard to get the rewards. It’s as simple as that.
BUT my words of warning are more about Direct selling and MLM in general rather than about Herbalife itself. You have to think about whether this business will suit your personality. Are you happy going out there, recruiting people, talking and selling to your friends and family and essentially using PUSH marketing tactics where you go and seek the business?
This, to me, feels like the hard way. I prefer more of a PULL marketing method where the customers are actively searching for you and your business and come to you looking for you and the hard sell is done for you. You provide them with the information so they can make their decision. And I prefer to work online, so if they don’t want to buy, there is no awkward knockback.
If Pull marketing is for you instead, have a look at my review on this business and see if this suits you better.
As always, if you have any questions, please let me know below. I hope I was of some help!