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DISTRIBUTION CHANNEL … OR SCAM?

The siege of Herbalife

Unlike scan data we cover all distribution channels, including direct sales and informal channels like outdoor markets, while audit data may be confined to only some distribution channels. Compound annual growth rate is the annual average growth, expressed in percentage terms, for either the historic or forecast period.

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It took you 2yrs to loose just 8kgs? A Diet is where you lower calories and or replace food for such things like these shakes. It is a diet and there is nothing but cheap low grade soy protein in these shakes, if you eat properly and regulary exercise you loose weight become lean and improve your fitness.

Long term, dieting and replacing meals for shakes lowers your metabolism and long term does you more harm than good! This is totally untrue. Please contact me with issues you have concerning Herbalife or what other Distributors have offered you and said to you.

Ive had many clients come to me after the long term failure of the likes of Herbalife, and have put them into a healthy eating plan and exercise regime that works, a true lifestyle change, no diets! This sort of product should not be allowed to be sold by unqualified people with no nutritional qualifications! Herbalife are a law upon themselves along with other companies like them and should be regulated. Wow, stirred up something here! Firstly just want to say that I became a Herbalife distributor earlier this year and in know way was an easy, fast cars, big houses lifestyle ever proposed to me, although I do know that some of their literature does contain pictures along those lines.

As regards the business I do agree with you to a certain extent that some distributors may be selling the products for purley profit and that training should be given if no qualifications in nutrition are held. As for the products, they are the best range that I found when looking into providing an alternative to my preferred solution of wholesome, natural foods. As a qualified fitness coach, I agree that we should always first and foremost promote healthy eating through natural resources.

The true meaning of diet really just refers to the kind of food lived on, so whatever someone is eating is the diet that they are on at that time. The reason why I decided to provide Herbalife was for 2 reasons.

I still ensure that they eat natural foods along with Herbalife, which is in fact what Herbalife promote. This then is still far better than their previous eating habits. Herbalife for some of them does just that and also with the range Herbalife provide, goes on to support them in any sport or competition that they do. As for the business side of it from my perspective, I have a supportive upline and will build a downline with that continued support.

As a fitness coach and someone who is continually learning about nutrition, I will be able to provide them with the correct information to help their customers. The products are the same price to the customer at what ever level you buy them.

Just as you would with a wholesaler, the more you buy the greater the discount to the distributor. A Pyramid is where the price has to keep continually going up the further down the levels it moves until it reaches a point where the price is so high that the person holding the goods cannot sell on.

Hope that explains a true pyramid scheme. Herbalife is really expanding at this moment in time, even in this recession and that I beleive is because they have realised that by bringing on board health and fit professionals brings more credibilty to their products and ensures that the end consumer is getting the right advice for them. Everyone is different and mindset that was mentioned in a previous post is what needs to be looked at first. But in Herbalifes case, that was then and this is now and I do know that they are regulated and follow those regulations.

I do just wonder whether the regulating bodies are all legit but hey, thats another debate! Great to hear that you have a made a success of your business and I think that the important thing is that we help the people that come to us in the best way we can, which means that despite our differences, our objectives and purpose are similar.

Most distributors are uneducated in the world of nutrition and fitness and should not be allowed to give such advice, Herbalife, LighterLife and all these meal replacement diets out there are a wast of time and money. None of these work long term. I know what I know because of this and because of 22yrs of working with people from all walks of life, you say about busy life style, find time!

Those are the weakest people who need the kick up the arse to be told how it is and to find the time and everyone has time! Its called time management. Taking the easy option because of the thinking of no time to prep meals is just lazy, make meals that can be made on mass and frozen in freezer such as lasagne, tuna pasta bake, things that can be eaten the next day. Cooking methods, the George Forman Grilling machine cooks in minutes, at the same time steam veg and rice etc to not lose the nutrients in food that is lost when boiling in a pan.

These are very quick methods of cooking. No time to shop for food, buy online, then the only food you need to get in the shop is your fruit and veg so you know you get the best — the rest of it can be just picked from online and delivered. If they cant time manage, they will fail, if they take the easy option of a poweder replacement instead of real food they will fail. Herbalife sports and energy products dont come near the quality and level of brands out there that speicically target sports performance.

Personally Id have a rethink of what you learnt back when you did your PT course, and all other course that show dieting is not good for you, and meal replacement is the worst kind of dieting.

Its nothing more than ditching calories. Understand life coaching techniques and work with you clients on a lifestyle level as well as their fitness and weight loss goals. Mike, you just upset that we give results… and people love our fun fitclubs more than you, get with the program..

Also im sure you have great qualifications, although they dont come close to our NAB members, we have leading scientists. I do love how you people hide behind the internet with fake email addresses and names because you cant back up what you say…. Herbalife have a number of scientists on their payroll — Yes I know this, but if you are on someones payroll you are always going to say they are great as they are paying you to do so!

I can find at least two scientists for every Herbalife payrolled scientist that is independent that will say Herbalife is just a cheap soybased protein meal replacement product diet that does not work long term and that diets over all dont work!

Im just a local guy, yes I am, so are the so called scientists you mention, we are all just local people in our local towns lol. A pathetic argument there…. Im not upset with the results Herbalife give people because the results are poor!!

Long term no diet works! So keep on producing the crap you produce and I will pick up the pieces when people realise they dont work along with all the rest of the Personal Trainers that train their clients the correct way. Mike, I completely agree. Their views can hardly be treated as impartial if they are employed by the company and will always be biased.

As for the meal replacement bars I was quite horrified with what was on the ingredients list, after soy protein there is a long list of various sugars including high fructose corn syrup and to top it off hydrogenated vegetable oil!

Reads like a recipe for diabetes and heart problems. I am a specialist diabetic nurse. Have 28 years experience of medical nursing and 10 years as a specialist in diabetes with degree and masters qualifications. I have grave concerns about the claims made by totally unqualified distributors loking to make money. Plese dont claim you are trying to help people. Distributors are making money from the products ales first and foremost. It is al,ost like a cult. One distributor scribed a severlyunderweight girl who clearly needsmedical care.

Probably having electrolyte disturbance due to such low body mass. The products can do real harm in these circumstances. A qualified dietician studies nutrition to degree level. People with eating disorders need the right help these unqualified people have not even the basic knowledge to recognise that they may be doing more harm than good. Please seek proper medical advice. I dont have any vested interest in these products. The conversations we have cause me concern. She comes out with dreadful misinformation.

Telling customers normal food has no nutritional value. If you have been overweight all of your life and unable to find a good relationship with food yourself then what qualifies you to advise others to co so.

Encouraging your children as young as 5 to use the products? Havent there been concerns about levels of lead in the products? I accept there is a place for supplementation when training, especially to ensure the necessary intake of protein and carbs is achieved.

But trust me there are far better and far less expensive products on the market that will aid your training more effectively than Herbalife or any other diet shakes for that matter. If you actually sit down and read the independent reviews of their products and comparisons to other well known, and not so well known brands they never come off by well. This in turn creates a repeat customer to a very expensive overpriced product same way a drug dealer hooks a new customer.

Do yourselves a favour and read the complete guide to sports nutrition by Anita Bean if you want sound advice on diet and nutrition.

This goes on in this process time as there are at least 5 levels in the Herbalife pyramid scheme. Or you could do the sensible thing and simply do a little reading. Ask someone with a nutrition qualification and actually learn how to eat a healthy balanced nutritious and varied diet.

I have a BSc hons in sports therapy, level 4 in lower back pain, been involved in sport and the body since collage till now. Got to be some worth to them. The business can and only work if you have ALOT of people under you.

It took a guy 18 years to get to chairman club k a month and at the rate this company if expanding, i dont think there will be enough people to grab and sign up. End of the day its personal option on this company. It has just hit me that you have the gift of the gab to sell this and I am slowly backing out as i want to kick my sports therapy currier rolling.

Many people who who take Herbalife supplements have claimed to feel restless and nervous, along with experiencing the jitters and anxiety. Herbalife products, when analyzed, were found to contain high levels of lead. The amounts found in Herbalife products were above what the laws allows and were deemed toxic. These artificial claims included helping to treat many diseases, getting rid of tumors, increasing circulation, improving alertness and improving overall health.

Many users of Herbalife have filed lawsuits and complaints about side effects they experienced when using the products. Headaches, constipation, diarrhea, lightheadedness, nausea, and stomach upset are some reported side effects. Ephedra, a main ingredient in Herbalife, has been known to cause psychosis, tremors, kidney stones, high blood pressure, sweats, rapid heartbeat, and damage to the heart and other organs.

It has been linked to strokes, seizures and death. Also know that Herbalife can have side effects. Cascara sagrada can have side other effects such as cramps and abdominal discomfort, notes George T. Cascara sagrada increases risk for low levels of potassium in your blood, a condition called hypokalemia, when taken with me dicines like cortisone and chlorothiaxide.

If you have a gastrointestinal disease, it also can worsen your condition. The senna leaves in Herbalife can cause vomiting, nausea, flatulence, irregular heartbeat and kidney damage along with cramping and diarrhe a.

Ingesting senna with drugs such as estradiol can decrease your blood levels of estrogen. Senna can trigger or worsen electrolyte imbalance, dehydration, gastrointestinal problems and heart ailments, note Grossberg and Fox. Some Herbalife formulations have unknown amounts of uva ursi, says Deborah R. Thus, you should take products with this herb only for five days at a time, no more than five times a year, advise the experts at UMMC.

It also can lead to insomnia, irritability, vomiting and nausea. You should not take products with uva ursi in them if you have high blood pressure, are pregnant, have a kidney or liver ailment, suffer an ulcer or have digestive problems, according to UMMC.

To all wise people and so called health nutirition expert explain how this product is to be taken without a proper doctors care??? Should this product really be in market as it is??? After reading the whole discussion, your summary is the most useful answer for me.

I only want to know what are the issues with this product. Is it really a cheap low grade protein like Mike said. If so, is there a better meal replacement product? I agree those distributors are not very professional and only give positive advice. Not everyone likes or have time to go to gym three times a week.

If there may be an easier way, why not take it. I guess Hebalife may not suit for me since I do have some stomach issues and I will check with my GP first. For the same reason, I still need find a OK meal replacement since most oil food will upset my tummy.

And eat boil food all time is not fun. Hi you will be better off going to a Nutritionist in your area to fully advise you on the best course for you, find one that specialises in food allergies — Herbalife is a low grade cheap protein product and sold at a very high premium and sold by mostly people who have no qualifications in nutrition and diet to be able to advise safely.

I have read countless books, studies and articles. But, even i can tell people who support this programme are deluded. Not eating a meal for breakfast and for lunch for an entire year, like Caleb. You must be plouging hundreds and hundreds into the company for these shakes and things. You can do this by simply eating fresh foods like lean meats and fish and lots of vegetables. No need to buy gimmicky shakes and things. Just simple, healthy living. And if you want to lose more weight, then simply go on a diet as herbalife is to implement a calorie defecit in your daily amounts to achieve weight loss!

People do need to have more education about these things as these things are driven solely by advertisments and sales tactics. Hi, Just wanted to add my opinion. I joined a herbalife sliming club called limelite. Well here is how it went. Each of the twelve weeks we were introduced to a different herbalife product and made to watch videos from America telling us how fantastic the product was. At the end of each session the items were hugely pushed onto us.

I did relent and buy a couple of the shakes, tablets, creams and energy bars. The only support i got was a phone call when the distributor worked out that our products should be running low trying to encourage me to buy more.

The fit club was doing an exercise video in a small cramped shed with about 10 of the other ladies. I did lose a stone but that was due to extra exercise i was doing myself.

I would be really interested to hear how much the actual cost is to make the products…I have also since found out that the fantastic photos i was shown at the initial meeting were misleading, The distributor lost 4 stones through healthy eating and diet then started selling herbalife 2 years later but told her customers that she did it through herbalife. When i started the group there was 23 ladies.

At the end of the 12 weeks there was only 6 of us left…. Healthy eating and exercise is the only real way to lose weight and tone up, we are programmed to eat, chew, etc so drinking my meals just did not do for me. My wife asked me if her dress made her look fat, I said no, its your ass and belly that does that! Sensible eating, sensible exercising is all that is needed to loose weight and maybe just a tad of will power…simples.

It concerns me that Reps of this product target new mums,playgroups and even breast feeding mums concerned about baby weight. Why pay to drink milkshakes and loose the joy of eating????

Oh and for the record — Mike I am in awe of your amazing achievements you are not Mr Average in any way at all so please do preach to us mere mortals! However, I also met many people who are kind-hearted who does network marketing ethically and with integrity. Many of these people have the passion to help other people succeed. This type of people in the MLM industry is rare to find. Cliche as it sounds, people who help other people succeed will get more in life.

In the end, it's all about the people and not the system. Greed, hate, fear, love, kindness and etc come from people not from objects. Many network marketers aren't trained professionally to promote their business the right way, and part of the fault is from the people who signed them up. Many people in this industry mostly think about how they earn and not on how they will help other people do the business.

To end this comment, I'd like to share my motto "Don't tell people that they will succeed with you unless you are committed on helping them succeed.

That's a great way to put it. MLMs are not all bad and the people that got used were looking for a way to get rich quick. You've got to put in time and effort to be successful at anything in life, especially network marketing. The product vastly overpriced from traditional sales channels. Personally I find it sad that people falling for such unsustainable and exploitative schemes in , and even sadder that their friends are to blame for it. What in most interesting is how a number of people who've already fallen victim to such schemes are vehemently defending theirs as legitimate businesses in the comments over here.

Tim Sounds like you have a story. Did you join a mlm and do nothing and expect to get rich. That is what it sounds like to me. Truth is MLM is hard work. But if you have a cubicle mentality it will be beyond your mental understanding. And you will fear it. Everyone knows who Warren Buffett is correct. One of the Riches man on the planet.

Why would someone with his intelligence invest in MLM companies if is was a scam? Because investing in an MLM is totally different than working for one.

Do you think investors in a coal mine would actually pick up a shovel and work in one? Money and greed are blind my friend. Its all about a return on investment. Secondly, the reason MLM corporations are successful is exactly the same reason not to join one. Their corporations prosper by keeping their selling costs low by passing the burden of those expenses onto their reps. Would anyone work a J-O-B if the boss made you pay for utilities, use of their computers and your portion of their lease?

Absolutely not, but that is exactly what MLMs do daily. The only thing I pay for is the product I use. My clients order their own product via my website or I have it drop shipped to them if I place the order for them.

I have zero back-end costs and my portion of the sale is directly seen when the transaction is made. Many of the companies you have listed do not fall under the classification of a pyramid "scheme". Avon, Mary Kay, itworks, Younique, etc have actual product being sold and the earnings are based on sales and down lines. A pyramid scheme is a company where an "idea" is being sold and you recruit to share the "idea" such as network marketing training etc. Yes they sell some "training books" and blog services to hide what they really are.

I have been with Plexus for a year and have fully supplemented my full time career pay. I am far from the top and a person 4 levels down from me made more money because he worked it even harder; how is that a scam?

The only thing that differentiates these companies from actual Ponzi schemes is the fact that they involve a product or service, as stated in the article.

A very small percentage of people who join up actually end up making any money at all when registration fees are taken into account, and in several jurisdictions some companies been declared illegal for their similarity to pyramid schemes like WorldVentures in Norway. Guess what happens when it stops growing?

The whole thing collapses. If you're not willing to monetise your friends, family, neighbours, work colleagues and so on then you're not going to get anywhere with it.

The experiences of others are undeniable, and so are the statistics behind the profitability of such schemes. I don't know anything about Plexus, but if it's based on the MLM model then I'm going to assume it's no better than any of the others listed in this article.

I have found success in one year with Plexus, and am far from the "top" as you mentioned is the only way to make any real money. At this point I will respectfully agree to disagree. I find it sad that your classification of most work from home businesses as scams could possibly hold someone back from an amazing opportunity.

The reality is these businesses are not all built the same. I would also like to add that ANY sales job, especially where a sales manager is working, entails recruitment to keep the company "in the green".

I work for a Fortune company in which sales are the lifeblood of the company. MANY more fail than succeed as sales reps, and I've watched very few truly "make it". Regardless, the management is still required to constantly recruit and they will be fired if they do not bring in new reps. How is that any different from a legitimate MLM company? You will loose money eventually. Run a mile if you hear the words MLM. Another sign, is if they get upset if you mention the words 'pyramid scheme'.

The near hysterical defence of their 'business' is yet another warning sign. MLM's are very similar to cults, members show very similar behavioural patterns. I am just about to join in one of the type,I was introduced to it by one Facebook friend I was so carried away by reading their post about their product and I forgot to research.

I persuaded my husband to give me green light to join but due to His business he delayed for me to make the membership fee. Thank you so much friend You saved me.. Spread the news so we can save others too Thanks. For anyone else reading this comment section, most of these companies have mandatory "cooling off" periods of about 2 weeks, so if you've already signed up you can often cancel and get your money back before any serious damage is done. Not all companies are the same and I do encourage you to do your research, try the product for yourself and use common sence.

This article is VERY one sided. Good luck out there. She also slid in the "try the product yourself" line. Thats all MLMs want is a dollar here, a dollar there.

They depend not only on volume sales, but on the volume of those who come and leave each year. All put there what about unique it will hit Spain by 2 of may and people sent even aware of it. They have over a Millon of users presenters in 7 countries all using Facebook. They plan to launch in Spain on the 2 of may. They are like amway Avon but these are even more agresivo as it's totally social Network.

Be warned what's your thoughts all. If you want to go to work, and perform the same job day after day, and know that every business has a President, VP, directors, managers, etc, who are at the top of your mundane "workplace pyramid scheme" - you go right ahead.

But don't belittle those of us that chose to promote a business that we believe in, in order to make a better life for our family, which includes making our own hours, working from home, networking and meeting exciting new people every day.

I have been in direct sales for over 15 years, including rubber stamping, health, beauty and jewelry, and would never promote something that I didn't believe in.

The company I am a Promoter for now, I started as a customer, and by day 17 became a Promoter, because the product works, so now I just share with people. In fact, I've given product away so people can experience it for themselves. If I have a product that I like If it is a product that works, it will be successful, and guess what??? People will start getting it from someone And yes, I network. Why isn't the "product" on the big box store shelves? Because the co-founders knew that if it was, it would be pricey, and they wanted to give everyone Your ignorant if you don't think that the CEO of Apple or Nike arent making a gazillion dollars off the consumer.

I represent a company that is cloud based, so commissions and savings are passed on to both the customer and the promoter. I also am in favor of helping my friends out if possible, because home based businesses are legitimate. You are receiving a product for you investment, and if it allows a mom to stay home with her kids, or a young person to work hard to earn a reward of an auto bonus, I'm sorry, what's wrong with that??? I am not saying that ALL home based businesses are "legitimate" but you surely make it sound like ALL direct sales companies are not legit, which I take issue with.

Didn't fiinish the sentence Boss at top - Feeds off everyone, big bucks. The difference being a regular business model doesn't rely on referring more people to join in order to keep it sustainable.

A regular business can keep growing providing its services or goods are in demand. A regular business centres itself around providing a product or service, not a marketing scheme. Most businesses use a hierarchy. Many businesses can seem unfair in their structure. That's not necessarily true. Insurance companies, pharmaceutical companies, and many others based on sales reps would fold if they didn't constantly recruit and replace their sales force.

I've seen it happen, as I've been in this world for a number of years. There's a huge difference between employing someone to work under you, and paying them for their time as opposed to finding people to buy into your company as contractors though.

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