What is Herbalife? Is Herbalife a pyramid scheme?

Herbalife is a multilevel marketing company (MLM) and a nutrition supplement manufacturer. It started in the 1980s and grew popular because of their weight loss programs. Since then, the company has developed several health beneficial products. They aim to make the life of people healthier and happier. The sales of Herbalife products compared to other companies is around the ratio of 6:1. The difference allowed the company to surpass others in their field. The quality of the products is well-maintained happens to be the major selling point of the company. With the value of over $8billion and more than 3 million members around 91 countries, the company stands amongst the behemoths like Amway.

Is Herbalife a pyramid scheme?

Herbalife provides business opportunities through direct sales and multilevel marketing. Multilevel marketing is a form of network building marketing. The consumers refer the products to new people and build their business through this method. The consumers who sell the products for the company are called Distributors. To become a distributor, one would have to buy a membership from the company at a feasible price. Being a distributor grants the users permission to buy additional stocks for sales and promotion. These stocks also have a discount of around 15% to almost 50%, exclusive to the distributors. The distributors can make extra profit by selling the products at around maximum retail price, hence direct selling.

Distributors usually focus on encouraging more people to join the company as a distributor themselves. These distributors who recruit others into their downline get a decent commission. Herbalife compensation plan allows the recruiters to earn through referrals, and points made by them or their downline. Thus, providing a decent business opportunity. The company also holds seminars and other important meetings to train their distributors for paramount business build-ups.