Is Herbalife a pyramid scheme?
No, Herbalife is not a pyramid scheme. Herbalife is a global direct-selling company that has been in existence for more than 40 years and operates in over 90 countries around the globe. We develop and sell nutrition products and dietary supplements through a network of independent distributors who benefit from extensive training and education on nutrition. These Independent Distributors offer individualised support and guidance to their customers, help that is often lacking in retail or on-line. There are millions of people involved in this sales model around the globe.
Why Herbalife isn’t a pyramid scheme?
A pyramid scheme is illegal due to its falsified compensation structure. A participant of a pyramid scheme only makes money by recruiting others into it, with high joining fees, requirements for further investment, false information and perceived urgency. By nature, pyramid schemes are not sustainable.
Here are the reasons why Herbalife is not a pyramid scheme:
- Herbalife Independent Distributors are compensated exclusively for sales of our products. We do not compensate our Independent Distributors for introduction or recruitment.
- Herbalife has low joining fees. Our independent distributor Starter Pack costs 889.83 ZAR. It includes: a branded shoulder bag, a canister of Formula 1 Shake Mix, a shaker bottle, a scoop and educational materials. Upon joining, Independent Distributors get access to online training and the opportunity to set up their own online shop, free of charge.
- As part of our Gold Standard Guarantee, our Independent Distributors are also entitled to a 90-day money back guarantee. Which means that they get a full refund on their Starter Pack, should they wish to cancel their membership.
- With 40 years of direct selling experience, Herbalife has extensive policies in place to help Independent Distributors build a sustainable business.
- Herbalife invests extensively in research and development, in the last decade we have invested over $300 million into scientific development, manufacturing facilities and technology, including purchasing advanced testing equipment.
- Herbalife has strict policies in place to protect all Independent Distributors and consumers. As part of our Gold Standard Guarantee, our Independent Distributors are entitled to a 12-month buy-back policy for unsold products. This means customers and independent distributors can return any and all unused products for a full refund within 12 months of purchase.
- Herbalife strongly discourages Independent Distributors from buying inventory in bulk. We also prevent new independent distributors from placing large orders.
Herbalife independent distributors work on their own, utilising our product range as their preferred business opportunity. Meaning they keep the freedom to run a business on their own terms.
According to the DSA official website, 89% of direct sellers decide to work part-time, looking for an opportunity to earn a supplementary income alongside their day-to-day work.
The Herbalife business model allows Independent Distributors to work on their own schedule, at their own pace. And the opportunity to connect with like-minded individuals. Direct selling is hard work. There is no shortcut to riches, no guarantee of success.
Yet, not all Herbalife Independent Distributors join to earn extra income through retail profit from product sales. The majority of our Independent Distributors join Herbalife to buy products at a discount for their own use.
Content source: https://www.herbalife.co.uk/faq/is-herbalife-a-pyramid-scheme/.