subject: Herbalife: Risk Or Reward? [print this page] Herbalife has fallen on hard timesHerbalife has fallen on hard times. They've lost some of their customers and distributors, and now their reputation is in jeopardy. Herbalife has been an MLM that was considered untrustworthy, and now they've ventured into territory that could be charged with being a scam.
Herbalife has tried to reinvent itself through a new website and means for distributors to get a leg up. Nonetheless, their compensation plan is outmoded, and their products are anything but cutting edge.
Herbalife has certainly commenced their journey towards repairing their much damaged reputation, however, a much needed financial investment for research and product development is required before they are eliminated as a possible MLM scam. I would be hesitant to recommend Herbalife until they exhibit further efforts to enhance their products.
This is what they're doing.
In the 80..s Herbalife was an MLM that focused on weight loss programs and energy boosters. As time progressed and consciousness around the health and wellness field expanded many consumers began to realize that there were much better products on the market than herbalife.
The loss of clientele made them heavy with distributors, more so than clients, and that got them pegged as a pyramid scheme. It may not have been their intention, but a lack of significant product development caused a lot of people to lose revenue after a big investment of time.
It remains to be seen whether or not Herbalife can reinvent itself.
There may be a way. Their product line is now diversifying. They're offering beauty supplies, heart supplements, and immunity boosters. It still hasn't made them first in their game, but it's advanced them.
They're doing well in countries that are desperate for MLM systems, but this expansion has occurred with the old product line. Even though it's serving effectively in some places, one might call this a scam.
Having been restricted to the less saturated countries, Herbalife has come to the realization that they are not fulfilling their maximum profit potential. In an effort to increase their credibility and gain access to markets in the more saturated countries, they have begun to redefine their business model and product lines. Herbalife has access to the financial funds to conduct the proper research and improve their reputation by developing competitive products. At this stage of the game, it could be seen as potentially profitable to join this company while they are on their way to improvement. Having said this, I would strongly urge that anyone interested in taking part of Herbalife, constructs a solid business plan and view the endeavor as a gamble and not a certainty.
