Is Herbalife Nutrition a scam? There is an overwhelming amount of companies that claim you can make a decent amount of money building a business in your spare time selling their products. Herbalife Nutrition appears to be very successful MLM company and have been around for 20 years. In this Honest Herbalife Nutrition MLM Review, you will learn whether or not a MLM is a good thing for you to build a real business. Let’s start with what is Herbalife Nutrition?
What is Herbalife Nutrition MLM?
The Herbalife Nutrition MLM was founded in 1980 by Mark Hughes. It’s headquartered in Los Angeles, CA and has 5 manufacturing facilities around the world. They operate in over 90 countries with net sales of $4.5 billion in 2015, according to their website. They sponsor many sports teams and say they are always searching for more.
They manufacture and sell a variety of nutritional and dietary supplements. These products range from pills to shakes and even skin care. Their products catalog is enormous.
Are Herbalife Nutrition Products Worth Their Price?
Herbalife Nutrition’s catalog is enormous. There are products for Weight management, specialized nutrition, energy and fitness, skin and hair care, and sample products. They have products to target just about anyone at any age or lifestyle.
They feature “Core Products” that they say are to maximize health and fitness goals. This is 3 products put together which include a multivitamin pill, a cell activator pill, and nutritional shake mix.
You can see that these Core Products retail for a very competitive price. Distributors can get a discount starting at 25% and going up to 50%. Sell more to earn a higher discount. Beware, nutritional products are a very competitive market and there are many types of these products readily available everywhere.
The Herbalife Nutrition MLM Opportunity
To build a so called business with Herbalife Nutrition you would normally be sponsored by another distributor. If you don’t know one or don’t get approached by one of their smiling faces they will introduce you to a distributor (your upline).
It is important to know that this is commission based pay only. This is a common concept of MLMs. All you have to do is pay for your initial Distributorship kit, A.K.A International Business Pack and you are off and running to sell products. The other option is to buy a more expensive pack known as the “Super Starter”.
Your commissions will completely depend on how many products you and your downline sell. You and your downline buy the products first at a discount, then sell them for full price. Your commission is the difference of the full price, minus your discounted price, after all expenses have been factored in.
Cost to Join Herbalife Nutrition?
To get started as a distributor for Herbalife Nutrition you need to purchase the Initial Distributorship kit for $94.10 or you can splurge for the Super Starter kit for $124.10. Then you can go through the required training.
I can’t find any information about what these kits include exactly. They do say that they contain everything to get started. This doesn’t cover other costs cost associated with starting and running a business. Other fees may include, marketing costs, insurance or other expenses.
Can You Make Money With Herbalife Nutrition MLM?
The way you make money with Herbalife Nutrition MLM is by selling products, and having people you have sold products to sell products (people you convinced to become distributors). You can’t just convince people to sell the products though. You have to sell products as well.
You will most likely start with friends and family and then go from there. Distributors can purchase a product at a discount starting at 25% and going up to 50% and sell those products for full price. See the example from Herbalife Nutrition below.
To maximize your commission you want to sponsor as many people as possible while still selling as many products as possible. I did not find any information on how to increase your discount or how much you need to sell to achieve a greater discount. See the “typical earnings” from Herbalife Nutrition MLM below.
This opportunity allow distributors to enjoy setting their own schedule and choosing how and when they work. You can work part-time or full-time to sell the products.
They offer a very broad variety of nutritional products.
Discounts on Products
If these products are something that you would use regularly then you can benefit from purchasing them at a discount.
Not very good in the eyes of the FTC
They have paid a few settlements that were mandated by the FTC (Federal Trade Commission). In one such settlement they had to pay back distributors $200 million for false claims about distributor earnings.
Herbalife Nutrition agreed to pay $20 million in 2019 to settle allegations it misled investors about how its business in China worked according to The Wall Street Journal.
Your Income is Directly Affected by Your Downline
You work hard to get the people singed up as distributors and their performance (or lack of) affects your earning. You work with these people, helping them build a business spending you time and resources to do so, then it could vanish into thin air just like that. You are back to square one, hustling to find people to sell products.
Is Herbalife Nutrition a Scam?
When you first join an MLM, you will spend all your time to make sales. Because you were sponsored by someone else, they are reaping the benefit of all your hard work making those sales. They get a cut of your sales and so does everyone on up the ladder.
Being involved with a MLM results in you doing all the work for your upline to get the rewards. I can’t say it is a scam however, I can say I don’t believe that MLMs operate in your best interest. They just want to move product.
MLMs will try to make promises that you can build a bountiful business in your spare time with little effort. Usually, people find that they will spend tons of time making mediocre sales for a mediocre commission. You are not paid for your time, marketing expenses, or other expenses. You simply aren’t reimbursed for the extra expenses and time spent.
MLMs want to move product. You are just a number to them and a vehicle for them to move more product. Most MLMs pay out very low commissions. These commissions look good on paper in the beginning, but when you factor all the time and effort they hardly seem worth it. Your customers may not be loyal to you, and your distributors you sponsored may suck, or simply move on to something better at any time. You might find yourself constantly trying to find customers and sponsors just to keep your head above water.
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