Thursday, December 20, 2012

Herbalife is a pyramid scheme

The business world is full of buzz today with Bill Ackman's accusations that Herbalife is nothing but a pyramid scheme.

I agree with him.

The similarities to what Herbalife promotes to what Quixtar/Amway promote is just way too similar to be a coincidence. Multi-Level Marketing (MLM) companies are just nothing but a scam except for those at the top

I've never dealt with Herbalife, but I did have a brief encounter with Quixtar right when Amway was trying to convert their business model to the Internet.

Anytime a business has it's focus on developing a 'downline' or has their focus on developing a network below you, red flags need to be flying and 'bells and whistles' need to be going off in your mind. Or if the only way to obtain their products require you contacting an 'independent distributor' should provide some pause.

That last part is the only way to obtain Herbalife products. Doing so requires you to fill out a lengthly form to get any information. You can't see any current products. You can't talk to anyone. You just fill out a form and go from there.

The same thing was how my experience with Quixtar was. I was a young and dumb kid in the very early 2000s and was sucked in by their promise of developing a network with people below me who's commissions would flow up to me. I was 18 at the time and of course the $200 or so I blew over a six month period only went to people above and I saw nothing of it. It was virtually impossible to get people below me and I quickly lost interest, saw the whole situation for what it was and chalked it up to a semi-expensive lesson at the time.

So Herbalife is just another one of those MLMs that promise riches for everyone involved, but any money that is generated by those at the bottom just flow upwards to the top. Do yourself a favor and don't get sucked into Herbalife, Amway or any others that are bound to pop up in the future!


  1. Good advise Rob. I avoid MLM's like the plague. Also, it can ruin relationships because they make you go after your friends and family to join.

    My Best Bud,
    Sean Charles

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