Truth about Herbalife

Truth about Herbalife

Compensation is based on product sales, not recruitment.

The Herbalife Mini HMP starter pack costs $59.50 in the U.S. and is fully refundable.

There is no minimum purchase requirement and Herbalife explicitly discourages inventory-loading.

If a Member wants to leave the business for any reason, Herbalife will buy back any resaleable inventory purchased in the prior 12 months. There is no restocking fee and the company will pay for return shipping costs.

In 2014 alone, Herbalife invested over $150 million in the quality and science behind our products and state-of-the-art manufacturing facilities. Herbalife also partners with world-class suppliers such as DuPont, BASF, DSM and Archer Daniels Midland, to leverage their science, research and production competency, to better our own products.

Herbalife has 7,800 employees worldwide, operates a botanical extraction plant and two manufacturing facilities. The company invested over $100 million in a 800,000+ square-foot manufacturing facility in North Carolina, that will create approximately 500 local jobs.

All Members have the opportunity to earn money by selling Herbalife products. Most Members (73 percent) sign up solely to buy products at a discount for their own consumption. The earnings of the rest of the Members vary with the time and effort they choose to put into the business. Later entrants can and often do earn more than earlier entrants.

We Have Perspective

When friends and family ask about our Company and our critics, here’s what we have to say…

What is Multilevel Marketing?

Multilevel marketing (MLM) is a retail distribution model in which a group of registered independent members market and distribute a manufacturer’s products directly to consumers. MLM is a type of direct selling, distinguished from other direct-selling methods by its compensation system, which awards income to members both for their personal sales (sales they themselves generate to end users) and the personal sales of members downline from them (that is, members who are introduced to the program and mentored by the upline member) generate to end users.

The MLM model of compensation is widespread. In 2011, 15.6 million direct-selling members in the United States generated $29.87 billion in retail sales, in the United States, the largest national market for MLM sales. Visit www.dsa.org for a full listing of all members of the U.S. Direct Selling Association.

What is a pyramid scheme and how does it differ from an MLM?

Truth about Herbalife - What makes Herbalife a legitimate MLM?

Simply put, an illegal pyramid scheme awards payments to participants for the simple act of signing up other participants. A legitimate multilevel marketing company, like Herbalife, pays compensation to participants based on the sale of product to satisfy demand by end users.

We Welcome the Federal Trade Commission (FTC) Inquiry

Herbalife welcomes the inquiry given the tremendous amount of misinformation in the marketplace, and will cooperate fully with the FTC. We are confident that Herbalife is in compliance with all applicable laws and regulations. Herbalife is a financially strong and successful company, having created meaningful value for shareholders, significant opportunities for Members and positively impacted the lives and health of its consumers for 35 years.

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