You can read about it here, but I wanted to use this whole topic as a segue into the notion that too many people cling to, that Herbalife and other network marketing companies are scams or schemes because they rely heavily on recruiting other agents rather than selling product.
Let’s discuss this for a few.
Selling product is great, and your company should have products or services to sell, but the whole definition of network marketing is selling to your warm network of family and friends, and recruitment has always been a mainstay of the industry.
This is nothing new, yet some people who can’t stand the freedom that network marketing represents will still try to badmouth it even to the point of filing lawsuits and using the whole “pyramid scheme” non sequitur as a “pile on” technique, as they have done in this particular lawsuit.
The lawyers do this in courts all the time. Using the pyramid scheme moniker here is tantamount to typical courtroom “Character assassination” games.
Anyone can see through that, I hope.
Network marketing is a legitimate business model that generates BILLIONS of dollars annually. It sets families free and provides crucial second income to many people, as well as providing a social outlet to many more who host and go to home parties and hotel meetings. I bet the hotel associations don’t hate network marketers, who pay for space, rooms, food, and bring in many guests annually.
The next time someone you know tries to play the “pyramid scheme card” with you about your network marketing deal, just remember how Herbalife had to defend against it in court, and how they won. There is nothing wrong with network marketing, mlm, and related businesses. They’re just a different business and selling/hiring model than the traditional 9-5 pyramid that most of your friends and family work for. They provide many times the opportunity, income potential, social potential, career advancement, and upward mobility that any of your friends, family, or acquaintances could fathom.
It’s actually a shame that so many who beg for scraps on the biweekly pay plan and annual pay raise model actually believe that their mode of employment is somehow more legitimate or superior to network marketing, but you know the old story, tell a lie enough times and people tend to accept it without question.
As for the charge about Herbalife misleading its distributors about how much they can earn, I can’t speak for Herbalife, but every network marketing and mlm type of company ought to have a clear income disclosure statement in order to stay legal, not mislead people, and also keep on the safe side of the law should any frivolous lawsuits or any sort of public character assassination attempt come to public knowledge. This way, whenever some troll or competing marketer makes their false claims, all the rep needs to do it point to the income disclosure statement and rest easy knowing that it’s out there and available for anyone to see or reference. You can’t be accused of hiding what is plainly available or linked to on your website or in your marketing materials. Of course marketers make claims or highlight those who have gotten great results. It’s a major recruiting tool! Not everyone has the same attitude or work ethic though, which is why these statements are needed. Not everyone is an action taker.
If you’re already a network marketer, either with Herbalife or with another company, then you need to know something before you bother your family and friends with your business opportunity. If you’re not doing it the way I describe, then you’re seriously doing it wrong and doing way more face to face work than you need to. It works with Herbalife or any network marketing opportunity, or even with other business models and business types.