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?
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!
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:
- Via any means used by their distributors, such as social media or door-to-door sales
- On the goherbalife.com website, where distributors have their own space to sell products online
Herbalife sells a range of different things:
- Weight management products, such as meal bars and cell activators.
- Protein snacks, like protein shakes and bars.
- Targeted Nutrition, such as supplements and fiber drinks.
- Energy & Fitness, such as energy boost tablets.
- Herbalife24, which is their sports nutrition range.
- 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!
How does the Herbalife Business Model work?
In order to start selling with Herbalife, you need to follow these steps:
- Go to Herbalife's website
- Click on the "Business Opportunities" tab
- Click on "Get started now"
- 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:
- Join as a "Preferred Member" to buy discounted products
- Sell Herbalife Nutrition products to make retail profits
- 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!
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)
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:
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:
- Choose a Niche - Anything that you are passionate about, for example Football.
- Build a Website - You can build one for FREE and you do not need to know how to code!
- Attract Visitors - Write content related to your niche, grow your website authority and let people find you in Google!
- 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 🙂