Why Herbalife Business Is Not A Scam
The next time someone asks me if Herbalife is a scam, I am going to slap them on the face. Seriously. I know it may sound rude, but the reality is that Herbalife is not a scam.
It’s a legitimate business model.
Ok, so what makes me say that Herbalife is not a scam.
Generally, in the network marketing world, there are 2 kinds of companies. One is the proper legitimate company and the other is an out and out scam disguised as a legitimate company.
The first category is what is called network marketing companies. The second category is called pyramid schemes.
Herbalife business is a part of the first category.
I will tell you why.
Number one, legitimate companies sell products that are aimed at the end consumers. They don’t sell products that have no market value or products that can never be sold to the masses. This aspect is crucial.
Herbalife markets health, weight loss and skin care products and the company is doing fine for decades. It has real customers. On the other hand, pyramid schemes are those which focus only on recruiting.
Why? Because there is no real product to sell. Either there is no market value for it or its something that no one really gives a damn about. Such companies, when using the network marketing model, can make a lot of money by getting people to promote their stuff.
Yes, such companies will make money, but they will do so NOT because people buy their products but because people buy their business opportunity.
Most of the pyramid companies do not last long. In fact, over 90% of the network marketing companies either get shut down or close their operations and run within the first 5 years.
The very fact that Herbalife has been in operation for 3 decades should tell you something. Now I am not saying that length is the one and only criteria. Its not but it’s a decent indication of a company (especially if a company survives for decades).
Number two, a legitimate network marketing company, will have a compensation plan where anyone can go on to make great money. Its not the case of money getting distributed to only those who are on top of the chain.
The criteria for success in Herbalife business (or any other company) is in moving products. You make money when you sell products. That’s the key. Either you can sell products by retailing them or you can build a team for selling the products. If you are to receive a commission, it would have to be because someone bought a product from Herbalife.
You don’t get paid if someone joins the business opportunity. If they buy some products, then yes, you will get paid.
If you were to check whether a company is a scam or not, go and check the quality of its products. That’s the main key aspect that determines everything.
Other things like compensation plan, management decisions do matter if a company has to survive the onslaught of regulators but understand that if you find a company has products that no one will ever buy without taking part in the business opportunity, then that my friend, is most likely an pyramid scheme.
Herbalife is not a scam. Go and make a thorough check out Herbalife and you will understand.
There are other confusing issues regarding what makes a company legal but I am not going to talk about that here cause its beyond the scope of this article.
If you are planning to start a herbalife business, make sure you do your due diligence, talk to the right people before you make a jump. And more importantly, learn marketing skills. With good skills, you can pretty much succeed in any company.
Now that you read this herbalife international article, I suggest that you take a quick look at this herbalife business opportunity video.
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