Herbalife Home Business Opportunities


Herbalife has a long history since it's 1980 start as a home based business marketing company. This is the data Wikipedia has:

Herbalife is a home business opportunity which requires lead generation for success.

Herbalife International (NYSEHLF) is a global nutrition, weight management and skin-care company. The company was founded in 1980 and it employs around 4,000 people worldwide. Herbalife reported net sales of USD 3.45 billion in 2011 with a retail sales turn over of 5.1 billion USD with an increase of 1.1 billion retail sales on 2010.[2] Though incorporated in the Cayman Islands,[1] its corporate headquarters are in Los Angeles, United States.[3]

The company distributes its products in 84 countries (As of July 2012) through a network of approximately 2.7 million independent distributors,[1] some of whom earn profit on product sales and additional commission from a multi-level marketing (MLM) compensation structure.

Is Herbalife a pyramid scheme?

Herbalife has an unfortunate history of lawsuits and judgements, as were found in this Wikipedia entry:

Herbalife is a multi-level marketing (sometimes called MLM or network marketing) company. In addition to profits from product sales, Herbalife distributors can earn additional commissions from sales by their 'downline' distributors. Supporters of MLM contend this is a fair compensation system, while critics contend that it is similar to a pyramid scheme.[43] Critics also argue that the company does not make enough effort to curb abuses by individual distributors, though Herbalife has consistently denied such allegations.[44] Herbalife is a member of the Direct Selling Association in most countries in which it operates.

In its filings with the United States Securities and Exchange Commission (SEC), company management note problems with inappropriate business practices in the past, their subsequent long-lasting effects and the need to avoid any repetition. Company management considers the number and retention of distributors a key parameter and tracks it closely in financial reports. By January of each year, sales leaders are required to requalify. In February of each year, they remove from the rank of sales leaders those individuals who did not satisfy the sales leader qualification requirements during the preceding 12 months. For the latest 12-month requalification period ending January 2011, approximately 48.9 percent of the eligible sales leaders requalified, reflecting an improvement from 43 percent in 2009.[45] The company was cited as one of the most profitable companies in Los Angeles County.[46]

A 2004 settlement resolved a class action suit on behalf of 8,700 former and current distributors that accused the company and distributors of "essentially running a pyramid scheme." A total of $6 million was to be paid out, with defendants not admitting guilt.

In a California class action suit, Minton v. Herbalife International, et al., the plaintiff is "challenging the marketing practices of certain Herbalife International independent distributors and Herbalife International under various state laws prohibiting "endless chain schemes", insufficient disclosure in assisted marketing plans, unfair and deceptive business practices, and fraud and deceit".[47]

In a West Virginia class action suit, Mey v. Herbalife International, Inc., et al., the plaintiffs allege that some "telemarketing practices of certain Herbalife International distributors violate the Telephone Consumer Protection Act, or TCPA, and seeks to hold Herbalife International vicariously liable for the practices of these distributors. More specifically, the plaintiffs' complaint alleges that several of Herbalife International's distributors used pre-recorded telephone messages and autodialers to contact prospective customers in violation of the TCPA's prohibition of such practices". Herbalife management insisted they have meritorious defences in both cases and that in the West Virginia case, any such distributor actions also went against Herbalife's own policies. Management also contends that any adverse legal outcomes Herbalife might suffer would not significantly affect their financial condition, particularly since they have already set aside an amount that they "believe represents the likely outcome of the resolution of these disputes".[47] The case was resolved with Herbalife and its distributors paying $7 million into a fund for class members part of the suit.[48]:42 Herbalife International did not acknowledge wrongdoing, or admit culpability for the actions of its distributors.

As of April 2008, a series of commercials featuring a large red animated fox advertising home-based business opportunities have been running on American television. The advertisements typically feature a series of testimonials from actors playing individuals who have made sums of money between $5,000 USD and $15,000 USD per month as a result of participating in an undescribed business program. The adverts direct viewers to a website that allows them to purchase a "success kit". The kit also provides no information about how the business opportunity works.

These adverts have been found to be run by independent Herbalife distributors, as a method of recruiting new 'downline' distributors.[49] While it is not illegal, critics of this type of advertising prefer advertisers to be up front about their company associations.

What you should know in order to succeed in Herbalife

It makes little sense for you to invest so much of your time - of your life - in a company which isn't going to give you the best of the home business opportunities available these days.

The primary problem which Herbalife and other MLM organizations have is that once a new distributor runs out of "warm prospects" (people he personally already knows), then he's dependent on those people who he has already sponsored to get their friends and associates sponsored. 

Generating network marketing leads to become new prospects has become a major issue for Herbalife and other MLM home based businesses. For any home business opportunity, we highly recommend learning and applying the "funded proposal" system as developed by Mike Dillard in his "Magnetic Sponsoring" training. Additional to this is Mark Hall's training site MLM Rock Stars, which gives you free training and necessary tools to generate your own MLM leads - which means, again, inviting them to come to you instead of buying cold lists and chasing them yourself.


What makes Herbalife a top MLM company?

These top MLM Companies were determined by the folks at Nexera. The reasoning behind their research is outlined below:

The best-selling car in the World is the Toyota Corolla. Apparently it's a great car, and yet at the same time is probably not the car of your dreams. Which begs the question, "Does an MLM company deserve a higher ranking simply because more people are involved?" It's a fair question. Here's what we know for sure: Popularity is definitely one of the best ways to determine what's going on in the marketplace. It plays a part in the movies we see, the music we download, and sometimes even where we invest our money.

1) The company must be a self-described Network Marketing, Multi Level, or MLM company.
2) The company must be in business for at least 10 years as of December 31, 2012.
3) The company must have a Google Page Rank - GPR. A scale of 1 to 10 with 10 being best.
4) The company must have an Alexa Rank - AR. Here the smaller the number the better.
5) The company must show up in Google Trends - GT. All Regions. Last 12 months.

Why 10 years? Because that amount of time really seems to matter. For example, according to research, since 1956 thousands of different MLM, Multi Level, or Network Marketing companies have opened their doors; and to date only +/- 50 MLM companies have found a way to celebrate their 10th anniversary and still remain in business today. Now, to be completely fair, we should also point out that each and every company on our list was at one time a start-up company too.

For purposes of comparing Internet search term interest using Google Trends (GT), all  companies were compared to the term, MLM. A score of 1.00 would indicate the same level of Internet search interest; anything above 1.00 more interest, anything below 1.00 less interest.




Now that you know about Herbalife as a top MLM company, are you ready to learn and use the system which makes the top-earners what they are?

Click here to find out what you need to know.

Regardless, we wish you the best of luck and progress as you continue with your home business marketing training.