Is Herbalife a Pyramid Scheme? - Company Forensics
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- Опубликовано: 4 июн 2024
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Let’s revisit the inevitable question about Herbalife: is it a pyramid scheme? Welcome to Company Forensics.
#startups #Slidebean #Herbalife
0:00 - Intro
0:59 Herbalife: Multi-level Marketing = Pyramid scheme?
3:16 Herbalife: The old ways
5:52 Herbalife: A legal survivor
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Rule of thumb : if something looks enough like a pyramid scheme to have you question if it's one, stay away. Better safe than sorry (plus, they are really different than a normal business anyway so any similarity is a huge huge *huge* red flag)
Do you have to pay to get in?
If so, I would simply stay away for any job that requires me to do that.
Unless I'm investing or something similar
@@raulsantandertirado4400 the cost is 50$. And I guess they will say that, if you're opening your own beauty salon the cost is much higher to start your own business.
Wannabe con artists trying to con artists 😂
if it walks like a duck and talks like a duck, it's a pyramid
Jorge Bastias baaaaaaaaaaahahahahahahahaha...
No! Is Js
And if it smells kinda cheesy, it is.
even nobel prize doctor made two products for Herbalife.. for blood pressure, nitric oxyd
The main issue is this: Yes, the company makes most of its money from products, not from entry fees.
BUT, most of the products they sell are bought by those who entered. Their products are overpriced, and they even sell their own marketing software to their own promotors.
So it's an elaborate pyramid scheme that avoids the laws.
It's legal or not, run for your life when you see something even resembling MLM.
True
If my mum is trying to sell me the products and ask me to be a distributor, it's not a nutritional company
What ?! That makes no sense lol
If you have the potential why not. It's like a regular employee if you're not fit to do it you won't succeed. Plus all companies with products needs someone to sell it. How can it possibly out in the market if no one will distribute it?
A minute of silence for those entrepreneurs who haven't known about this great Channel yet
We hope they can join us soon!
I use to work in MLM industry on the corporate side for a long time. He really hits it on the head. If the products are crap and/or the company over emphasizes recruiting over selling products run away. There's also huge warning signs in their comp plans as well especially if their comp plans require a lot of recruiting.
I'm not convinced that a "good" MLM exists. The low level salespeople always get screwed and end up with a garage full of product they had to buy from themselves after their friends and relatives stopped buying out of pity.
Customer: I'll buy the product if I like it
Seller: I'll sell the product to make profits
Herbalife Users: I'll buy the product to make profits 🤔
Ah ah ah......great
LMAO
I used it anyway so I need discount and bonus if my relatives and friends will also use products MD get an amazing Results like I have.
@@coachjinkymanugas2877 We all recommend good products to our friends and relatives. But the moment profit element comes into picture, it becomes nasty! You can't just recommend a product to a few handful of people and expect a livelihood out of it. But that's what exactly MLM expect you to do
Sellers have to buy product though?
Dude, I'm from Mexico. I see a lot of people open Herbalife "club". Sometimes they open like a dozen of these clubs in the same street. They close after a few months because they are in the bottom of the pyramid. It is sad because a lot of poor people believe they are gonna make some money with this.
What exactly is a club in this context? Herbalifes one
im guessing with "club" he means something like a little store/member club? Maybe where they try to sell the products but its never enough customers
It's just like any business. If you're a store and u have 10 stores at the same street definitely the chances of getting buyers is lower because of the population in the area that will buy on your store
@@coachjinkymanugas2877 thats the bullshit story they tell you lmao its a pyramid scheme that is a fact.
@@coachjinkymanugas2877 all of the people making real money in the company have said that the only way to make money is by recruiting people. the product is overpriced, you can get the same shit for a quarter of the price
"Tell me more about your new pyramid business scheme" - said no one ever 😂🤣
I noticed such schemes always promote a "lifestyle" and can even use cultish language. They get all the members saying weird mantras and talking like it's a religion. Creepy.
My rule of thumb is: If you have to ask whether it's a pyramid scheme, it most likely is one
Theres a great documentary on this called Betting On Zero
You need a Bells man, you know a lot
I actually saw a recruitment take place on a train in NYC. The recruiter was this extremely attractive latina lady. She was dressed like she was out for a jog. The train was mostly empty at the time and after a few stops of silence, she approached a middle-aged woman who looked like she was probably a mom. She started off asking "You mind if I ask you a question?" I don't remember the full details of the conversation afterwards but she mentioned something like "You can totally do it on your own time, there's no hours" and she ended up telling her her name and giving her a business card with her website (which was a herbalife address with her referral id somewhere in the url) to learn more information. She left the train shortly after that exchange. The recruitment was very targeted in this case, the lady wasn't asking random people, just one she thought was most susceptible.
Yep, pretty predatory. Totally unethical and completely legal?! 🤷🏽♂️
Deff unethical, if they're working at a facility I'm sure they have rules against that
There's never a 'genius' MLM, just closer to criminality
Not gonna lie, the first few minutes sounded like a dope HerbaLife pitch.
Never forget bill ackman trying to short herbalife
link?
He was right only he quite to early
Bill Ackman did the world a service man he’s a legit investor with morals
5 million shakes consumed everyday? When have have you heard drinking an Herbalife shake on their lunch break, or seeing a friend drink it when you visit their home? I haven't. Their CEO definitely knows whats up, he has to...
I have several friends that use Herbalife religiously. They love the products.
It's believable tho. I use to consumed Herbalife at their "club" and the shop always busy, but that was like 10 yrs+ ago the club has been closed for a long time now. I don't know whether the so call "clubs" thrives still or not.
Now the nutrition club is online via zoom & yet me and whole family consuming the shake over 3 years
I use the products. I like them. My mom owns a nutrition shake store and I like them enough to still pay for them lol. People think it's a scam because it resembles a pyramid but it's the same as any other store where you buy products and sell them, the recruitment part is what makes it sketchy but it's kinda the same as recruitment companies recruiting employees lol
It's very wise to stay away from all so-called "business opportunities". If you don't own the company, it's not your business. SIMPLE.
People are always fooled into these things because we all have some level of greed.
Start your own business by offering a product or service that solves a problem. Get cash in return for your business efforts. Very simple.
Is it just me or does Herbalife's overall look resemble Scientology?
@@cydm2 🤣
*Dramatic fool.*
Yup.
Make a video on Amway.
Good old Scamway. Yes, they should be covered so people know to avoid them.
Out of all the direct selling companies out there, you choose only one company which has been in the news a lot. Your research is commendable. Can you please do more on other Direct selling companies.
I really feel like the people on top are living like wolf of wall street and doing coke and stuff.
What feels like a cult but isn't? Herbalife
Aah, spot on mate, love this breakdown, as someone who sold Herbalife here in South Africa, i can tell you its garbage, massive scheme, i could tell you horror stories, when these dudes say you have to replace real food with this highly processed crap then you know its downhill from there.... the nutritional make up of the products are sketchy as hell!!... the real money is in how many people you recruit under you as you literally struggle to make profit of selling products!! Recruiting fresh meat is a high priority to the point of harassment!!! and i know recently that a lot of distributors in South Africa didn't get paid and all sorts of stories!!! Glad i got out of it years ago...and all this coming from a Sports Scientist!! They definitely attracted a certain kind!!! Genuine people borrowed money to join this crazy thing and got burnt bad!! Anyways, just my 2 cent worth!! Love the channel!!
MLM is just the modern word for a pyramid scheme. It's literally the same thing, just rebranding the name to make it have a less negative conotation.
Yup os practically the same. Sadly is “legal” because they are in a grey area cause they have a product or service. Sadly people fall for this scam.
They are different lol... MLMs can survive even if they don't recruit new people because their profits come from their products while pyramid scheme cannot because their profits come from their new recruits. The reason why Pyramiding is illegal because they don't have real profits, they are just taking people's money in exchange of being recruited.
@@aldiooril1577 emm the profits come from the recruits that buys the products lmfao. Only recruits buys and buys and buys with fake hope of riches.
@@MadScientist_01 lol not all the profits are from the recruits, but in MLMs there's this thing called customers, something that pyramid schemes don't have.
MLM works by selling a product. They sell it through distributors not on the market. The thing is, If you just want to buy their product but don't want to work for them, find a distributor and buy from them. But if you want to have a job, buy a certain number of products from them and they will make you a distributor. That's not how Pyramiding works at all, pyramid schemes work by paying a recruit to be a reqruit and then after that, the only way you can get your money back is to recruit more.
The difference between MLMs and Pyramid schemes is that Pyramiding recruits a person for them to earn money while, MLMs recruit for them to extend their market.
The thing is most MLMs have bad and fake products, that's the fault of the company itself, don't blame it to the concept of MLMs. I think MLM is a great way to extend your market, some companies just takes advantage of it.
@@aldiooril1577 u can call it whatever you want but when the recruits are the “customers” well it’s a complete scam 🤣🤣🤣🤣🤣🤣
Hi, all. I have been using Herbalife products since 6 months and getting good results. But I am still a consumer. I never get into the business side and even no one forced me to invite somebody into this. My health just got better and my lifestyle too. I am just a consumer and I will remain as the same. No side effects stil so far. Daily workouts and morning one shake. That's it.👍
Thanks for the videos! Would love to see some company forensics on some green tech companies as this is a space that is becoming increasingly important :)
Great suggestion! You can add it here: slidebean.com/youtube-suggest-a-video
I love your channel keep up the insane work! When I first saw your videos, I literally thought you had millions of subs. Your production and quality is 🔥
I’ve been watching Herbalife business for 23 years since my early childhood - that’s my parents full time work for so many years. It is about good money and premium grade supplementary nutrition.
However, sometimes distributors deceive newcomers or make false statements about the properties of the products. It was much more spread in 90s. Company works hard on keeping distributors to follow the rules. But distributors are INDEPENDENT partners, so those cases will never disappear. This is the nature of this business type.
And yes, Ronaldo does consume Herbalife in daily basis ;)
Exactly many people tend to blame the whole company and all of the distributors because of what ONE distributor did.
@@samuelbustamante4267 not just one, though) Moreover, if company gets to know that a distributor made false claims on product property or worked like in a pyramid scheme, he/she is going to get out of business. Company puts him/her in the black list. Legal department is tough dealing with such things.
yes thank you, herbalife isn’t meant to cure anything but your body does what it needs and wants to with good nutrition
An "MLM"(multi-level-marketing) is a pyramid scheme most of the time, so is "direct marketing"
Herbalife products are great but over priced, especially in Asia. Most of their products are indeed consumed by members n not the general public. The drop out rate for agents is like 99%. They will never reveal that to you
We are being sold one in our gym, he told us to replace this with breakfast
@@mukta4689 there are equivakent alternatives that does the same thing
I worked in the copr HQ for a brief minute and they products were not bad. I actually worked for BeachBody too, similar biz model, but slightly better product. Fun fact, the internet famous Chevy Impala with the licence plate "VLADTHE"Impala is an Herbalife employee. I also worked on another self replicating distrubutorship site platform with exHL top marketers back in 99. Creeped me out, but I learned way too much about geneology and "downlines". We launched alongside Quixstar (Amway), and long before 2x2, Noni, Goji, MonaV...
The quality of your videos are awesome 😍
Thank you so much!!
Will be good to watch your analysis...
Damn! that investor finder could really be useful in South Africa.
Africa in general
I know right. I just saw (F) Other. Lmao
So true
😂😂😂
You can say that again.
my personal trainer kept pushing these products onto me and my gym buddy even after we said no. is it okay for PT's to keep pushing products on you like that?
As someone who's currently in herbalife, the answer is no. We are explicitky taught to not gorce products onto people (if they say no, we're trained to accept that. If they stop after a few weeks, we're trained to accept that as well)
Sadly, I know some herbalife distributors who don't give a shit about the morals we're trying to pervay, and are in it just for profit.
Fyi, I am aware about the shady herbalife business, although as a consumer, I've gained a lot of health benefits from it (energy, weight loss, etc.) And decided to become a wellness trainer for the sole fact to help people. (I'm also technically considered a distributor, but I don't necessarily force herbalife onto people and I more or less present herbalife as a food replacement if they don't have time to cook in the morning and stuff).
Great video as always! Would like to know more stories about companies that actually “died” to justify the forensics part of the title, but overall, high quality content!
Thanks! Add your ideas here: slidebean.com/youtube-suggest-a-video
How did you know my startup is going to need funding in 2021? Great video!
They have a product that people buy and consume. In a way, they are simply a direct selling company BUT with a huge dose of elements of a pyramid scheme as it focuses on recruitment, sales numbers and sales tactic that prey on human greed or FOMO and really bad sales practices as it mostly over promised and underdeliver and there are many report of health related problem after taking their product. They sell the idea that you are a business owner is just rubbish, as you as still very much under their rules and you are just a node in their extended sales network.
The most absurd thing is that i have heard is that their products can even replace all healty food like fruits, as if their products were better for human health more than real FOOD
A Herbalife business guy recently purchased 3 cars. 2 jeeps and a jaguar
Must be a high level guy
You should cover omnilife. It’s very similar to Herbalife but it’s based in Mexico. Last time I visited I saw commercials for it and they were basically implying that it cures cancer. It’s a very sleezy company.
I really enjoy these videos and the content is hugely valuable.. but - why not make Investor Finder one tier only and make it for free? with an option to share a deck "through" Slidebean with the investor match? Surely that would only increase the trickle to paying SB customers as opposed to a payment wall just for the tool?
For all intents and purposes, there really is no such thing as a "legitimate MLM." From a purely practical business perspective, direct selling is an unnecessary and obsolete distribution model. You can research and buy whatever you want with a few clicks or even a trip to the store. With the MLM model, products have to be overpriced by necessity in order to pay for the commissions and bonuses. Even then, the vast majority of people make no money or lose money. It's inefficient and makes no business sense. Most of the products are sold to the distributors, not to outside customers. MLMs sell dreams, not products.
The end was like a Dating Ad
The Philippines is bombarded with MLM or Networking or Pyramid Scheme companies that are not strictly regulated for as long as a company has business permit. Even the products are not regulated as long as "No Approved Therapeutic Claims" are put on the labels.
My mother used to drink these protein shakes, she said one day the product just went missing off the market misteriously. i would tell her this but she'll probably tell me to go back to my room and stop procrastinating
Didn't know they were into MLM. The Herbalife offices near me have 'Mama Kim', their own franchise restaurant attached to their business. They're also ventured into the hotel industry - I've stayed at their 'Sojourn' guest house a few states over.
I think that's Herbaline, not Herbalife.
William ackmans crazy money went down the hill when sec said it ain't the pyramid scheme but he still stuck with the money on Herbalife on pyramid scheme absolute mad lad
Would love a video covering the increasing market for Cloud kitchens
in the town where i live, a single mother who is deaf always wears herbalife tshirts and i sometimes came to play there when i was a kid and i always saw herbalife shake crap in the house.
i though about this recently and i really hope she isnt tangled up in this pyramid scheme...
You wonder did you help her??
Herbalife is one of the most genius companies I’ve witnessed 😹 they have good products but it’s the lifestyle that sells the product
What can I say? Never used Herbalife...never knew anyone using or selling but they are everywhere! You mentioned Avon... I remember my mother buying some Avon stuff when I was a kid and I remember it as ok quality, she as never tricked into joining... I had friends who sold that Swedish brand similar to Avon (can't remember the name) and the products were good and they made a few profits....
I had a question! If we sign up for Investor Finder and get their email information, do we reach out to them saying that we got their contact from Slidebean?
Hi, Ameya! The reach out content is totally up to you :) It is not required to mention that you got their contact from our service. Instead, add something else of more value that's related to your business and your value proposition! Good luck!
@@slidebean thank you!
I thought we concluded long ago MLM uses a business strategy that can be seen as "Too good to be true". Normal business is there to sell a product or service and its survival is dependent on sales. Whereas MLM primarily exists on recruitment of agents and more agents to buy their products. Hence it is not the quality or desirablility of the product that is driving force, but rather the ability of agents to recruit more agents to underpin the business. Hence the word "Pyramid selling", when your downline agents stop recruiting, your profit dries up. When something is too good to be true, you can be it is.
Very nice! But I suggest you change the logo of slidebean, in my opinion it looks not good at all, i love your videos tho!!
Good episode
10 years ago we knew this and reported on it and nothing was done. What makes you think you can change that?
So they have the means, product recognition, and infrastructure to be a legitimate company but still don’t decide to do so. Like why not just do that? Wouldn’t it be a lot less costly and stressful than paying hundreds or millions in bribes and legal fines?
The reason behind that is, in a retail outlet. I they will put more than 5 different companies who produce the same products and you as a customer won't really be sure which product to take. And also the customer experience. Breaking a habit can be really hard, so if you bought a product and now you start to have doubts or those in your close circle are being negative. You are going to need someone who will motivate you and remind you why you started. That is why herbalife products are not in the shelves
It's so people can have more stores in a single area, creates more competition which gets store prices to drop and people buy more, but herbalife always prices their products the same to the stores
There is a huge unemployment rate in South Africa. People go to universities to study and end up unemployed for years. Herbal Life has helped the youth with an income just that little to make it through the month. Our youth turn to drugs and crime because of lack of jobs. It may be a pyramid scheme but trust me it has made us healthier and gave us financial freedom. Some are using that money to invest in their dreams or businesses. I don't think its something one can do for the rest of their lives. I've seen it change people's lives. Our government has failed us so we herbal life gave most a little hope that's all we counting on. Being healthy and feeding your family.
Herbalife and amway are the two big mlm that can be free of critism in terms of pyramid scams. The moment we start to criticized or question those company, their followers end up attacking you like they are in a cult like Scientology. Add World Financial Group to the list also.
I was like i have seen the style of presentation before then i remembered scott galloway.
The funny thing is that Bitcoin has more similarities to Herbalife than it has gold.
when those people talking about what things i can achieve if i do their business that is when i started to feel something kinda wrong about the company / business
My mom used to be on herbal life for 8 months. She had frequent stomach aches and it didn't help her with her weight. She throw up and had diarrhea from it on the 7th month, plus it was extremely expensive.
Thanks for the great ideas. I'm be sure to subscribe. btw we can recruit for you and build your mlm downline. Thanks again. ttys
Makes a video about a pyramid scheme while sponsored by a pyramid scheme... brilliant
My stepmom has a friend who owns a business that sells herbal life. My stepmom always buys the tea and the stuff. THEY SELL IT FOR 40 dollars for the tea syrup. Nah I love drinking it but I never knew it was😭
Fun fact. You can recruit 10 people under you for the pymamid income and those 10 will do the same, keep repeat this process. It can only have 10 cycles . There is not enough would population in the world to recruit anymore .
Fun fact. There are limited number of companies in the world. Let's say you are an engineer for example, there are a limited number of companies that can hire engineers. And every year the number of engineering graduates increases. So the employment sector could be as saturated as the MLM sector.
I have been using their products.....aaaannnnd I have been enjoying it. Funny enough. I think if you sell a product and it works, why not? If it was sold in a shop, the shop owner makes the profit? Here I think the distributors are their "own shop" owners. Other distributors are like owning a franchise. So, in my opinion, its taking "big" business models, and making it available to normal people. But in the end, I find it work and at 50 year old I find I have great energy. But that's me, thanks for all your insights.
Same here. I started 3 months ago and now down 39 lbs. I'm happy I'm investing in my own health. Now, shakes say "natural flavor". Which I learned that it's an other word for artificial flavor. Overall it's been helping me.
@@oscar7032
Go check its ingredients.. And also side effects.. Nothing comes do easy.. If u don't eat healthy don't exercise, u will always have health issue.. And this product contains many harmful ingredients.. Like steroids n all.. Do ur own research.. Dun fall into the trap.
Can we expect a video on Foreverliving
Well it walks a fine line, but it does sell products. Bill aikman (sp?) Learned the hard way when trying to short them.
They are a super dodgy company, their products aren’t even that good, and I hate that people with no formal nutrition training or education are able to pedal these products to people desperate to lose weight
Any solid success stories from $29 / month investor matching program yet?
We’re in the middle of a pre-Seed / seed round that’s a quarter of the way done, and want to close out round before end of 2020. After pitching 2 larger NC based startup conferences the other week-Venture135 and the Charlotte pitch breakfast-we have a lot more interest from supply chain tech investors so not sure if it’s worth it for CargoLabs Inc. To pay $29 / month.
Do you have a lot of supply chain investors in your $29 / month network?
Please make a video on IndusViva.
Congratulations ,
You have made Bill ackhman watch your video .
Just hearing the term "lifestyle company" triggers my BS detector.
Your greenscreen is leaking slightly
I bet you that non of the distributors who got screwed will see a dime of that money. I am sure that some make money off selling it but I have never met anyone who has and up until about 10 years ago they had been everywhere. I've never bought in to it, it seemed like a scam to me. But I could see the attraction for someone who is struggling to maintain their lifestyle, the promise of big money sounds too great I guess.
Good video but the difference is in the whay the comissions get paid and you did not go in to that... you don’t just get paid for every person you under you.
Exactly and I quote "charging them and buying in fees" a true pyramid scheme would not have products with an availability of lawfully money transaction . Nor a buy back plan if a costumer is not fond of such product. Pyramid schemes make money solely off of recruitment nothing else Herbalife does not Herbalife pays their distributors seven different ways in fact they overpay their distributors on top of the front line distribution of product. So please continue to explain how Herbalife is a pyramid scheme hold my beer and change my mind
Their products are available on amazon in India
Anybody know fitline? Its from germany and my neighbor were constantly telling me to try their products..
Just got someone trying to recruit me to their team and start doing this thank god i did my research sounds sketch
Lol watching channel this makes me wanna start a business.
Okay, I got to ask. Is there a reason why you only wear Lacoste t-shirts? :D
P.S. I like your content, it would be great if you can post references so we too can read those.
Thanks! The t-shirts are just Caya's personal preference, no reason behind that :)
And, you can get the references here: slidebean.com/blog/startups-herbalife
im just shocked it hasnt got to 0.
if I had money to throw Id buy puts for 0.
I remember working at a print shop in a university and someone trying to get my boss to be a saleswoman also don’t they sell face creams and masks too
Do kangen water next xd
Hmm im conflicted...i never want to sell herbalife products but i do want to use the after fitness or when i dont have time to eat breakfast😩
But, isnt MLM directly allegorical with Pyramid scheme?
I use Herbalife products .. I do my exercise everyday and eat my healthy meals ... I legit love it it has really changed my life and my body .... I'm more motivated and inspired the group I'm in focused more on healthy life style and i love it never found anything wrong .. what's this .. is it bad like
you can buy an identical version of the product for far cheaper but that is besides the point. i wouldnt trust anything a company built on fraud sells lmao
If you're not making a profit, you're probably the product. 😂
0:58 Thought my screen was cracked. Crisis averted.
The description you give up to timestamp 1:20 was enough to trigger my mind's pyramid scheme early warning system. I've seen this before. It's a pyramid scheme. The rest is just noise.
Herbal life has a cult following... so does Apple (employees and customers)
True, although apple's people won't go around recruiting new followers I guess
i like your chanel very educational and you talk real shit.
do one of Monsanto next
Thank you mate.. my frend's mother is involved in it..
Do Primerica next
Can you match startups in Nigeria to Investor?
You can try your matches for free! slidebean.com/investor-finder