If you are searching or considering Herbalife you have probably come across various
reviews that tell completely different stories and provide very conflicting view points
as to whether Herbalife is a viable MLM and Home Based Business opportunity or a
complete fraud that has been red flagged as a potential pyramid scam.
Why are there so many different reviews about Herbalife anyway?
To grasp this we should learn the growth of MLM industry in the past. It rose along
with some other companies like Amway, NSA, Shaklee and so on. These MLM had
compensation schemes that were obsolete and those companies that did not update
their business models had to undergo tough situations. Herbalife was one such
As MLM..?s progressed and more people began to see the value in using this module
to create their own home based businesses many new and smart entrepreneurs
developed new companies with new compensation planes and have stayed away from
breakaway plans and have opted to use uni-levels and binaries.
These new compensation structures are more easily adaptable to the changing needs
of both consumers and distributors, and that flexibility allows them to stand the test of
Although Herbalife has tried to ramp up their compensation plan with various
additions in ways one can reach different levels within the compensation plan they
have stuck with the old school plan, which brings more money to corporate and
higher level executives than the newly or in reality, not so newly designed
compensation plans. But I do not blame this as the main reason why Herbalife went
In my opinion, Herbalife neglected to explore one of the most important aspects of a
flexible, enduring company when they did not expand their funding for research and
development. NuSkin, for example, made a bold and brilliant move when they created
their sister company Pharmanex, and both have pushed to stay modern and cutting
edge by improving product value, and expanding their product lines.
Herbalife took a different approach to continue expanding profits and started heavy
campaigns in countries with very little MLM activity. This was good in one aspect
and bad in another.
Because of their compensation structure, an attempt at maximizing profits while
limiting the investment into research and development destroyed Herbalife's
reputation in some of the marketplaces they initially developed. However, their
aggressive ad campaigns brought the MLM model to markets that before then had
never seen this type of industry before, and provided opportunities for new markets to
develop. Personally, I think that Herbalife tried to take the easy way out by making as
much money as possible as quickly as possible, instead of investing in and developing
a long-term marketplace.
As MLM industry started to grow and newer companies began to rise Herbalife
started facing competition even in countries where they still remained to be one of the
few available options. This added to the decline of Herbalife's capability to capture
these untapped markets and thus lowered their gain and number of customers.
Finally, Herbalife is getting back on track. They are expanding their product lines, and
right now they are overhauling their website, herbalife.com, to enhance customer
experience. This could be just what the company needs to get going again and to
prove that they are a reliable company with which to start your own home-based
Can Herbalife do it, or is it too little, too late?
Herbalife might just get back to their glory days again. Investing now could put you in
an advantageous position if the company gets reinvigorated, as an established member
of a company with good financial backing. However, I do not think that their product
quality is quite up to par just yet even though they have significantly expanded their
In my opinion Herbalife has to spend more resources in development of new products
and in improving the quality of the products. Has a slow realization of this goal
destroyed their fame to a point of no coming back? It cannot be ascertained.
If you speak Spanish and have a talent for Internet marketing, Herbalife can provide
you with inroads to markets in more countries than most other MLM's can even
dream of. I think that the best bet for Herbalife is to focus their efforts on
Spanish-English bilingual markets. However, even if you are not bilingual there is
still an opportunity for you to create and develop your own home-based MLM
Being said, that is my stance on Herbalife. It is best for those who are bi-lingual and
not the best choice for those who are not. They still have potential but I would not put
them at the top of my list.
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Ellie Gant is the editor for Online MLM Secrets, where you can objective, expert
advice about Herbalife. While you're there, be sure to claim your FREE instant access
to Jonathan Budd's 8 Day Mastermind Herbalife Bootcamp, 100% free.