Are you thinking about joining Herbalife Nutrition?
First, see to it you know what to expect.
The company has been in business since 1980, offering dozens of products for dieters and healthy eaters.
Today, it has more than 10,000 employees in 90 countries, according toits website.
These goodies are marketed and sold exclusively through independent distributors.
As a Herbalife Nutrition distributor, you’ll order health products at discounted prices and then resell them.
In 2020, the company had about 191,000 active distributors in the U.S. alone (via Herbalife Nutrition).
Approximately 15,000 distributors managed to earn more than $201 per month in their first year of work.
More experienced members had higher earnings, ranging from $264 to $16,213 per month.
But the corporation received criticism for being a pyramid scheme.
Herbalife: Multi-level marketing or pyramid scheme?
The corporation had to pay a staggering $200 million back to distributors and consumers.
The FTC settlement also required Herbalife to change its compensation model and stop making deceptive earnings claims.
Simply put, their earnings didn’t come from product sales and that’s apyramid scheme, not MLM.
TheFTCexplains that companies using pyramid schemes encourage their members to recruit others rather than promote and sell products.
MLMs, on the other hand, generate revenue through direct sales.
Should you become a Herbalife distributor?
Moreover, only one-third of the revenue paid to its distributors may come from recruitment.
If you decide to quit, you’re able to return any unopened products for a full refund.
Consider the company’s reputation, too.
Securities and Exchange Commission.
Such actions are likely to affect its brand image and revenue in the long run.
Take into account the risks involved and only invest what it’s possible for you to afford to lose.
