Problems with Herbalife

Are there problems with Herbalife? Sure, I’ve found that every business, regardless of their particular industry, has some problems. Let me begin by telling you that I am a huge fan of their products and business opportunity, even though I am in no way affiliated with the company.

They produce very high quality health, nutrition and weight loss products, all at a reasonable price. Just about every Herbalife distributor or customer I’ve ever talked with was happy with the products, the compensation plan, and the training. While the company has lots of things going for it, I do believe there are a few problems that should be addressed.

As I see it, the four biggest problems with Herbalife are their internet marketing policies, their market timing, deceptive recruiting strategies and the eBay/Amazon sellers. I will explain more about each category below.  Please note that some of these problems are with distributors, not the company itself.

Internet Marketing Policies

If you are a Herbalife distributor and you are trying to build your business online, make sure you read through the distributor agreement first, so you have a clear understanding about what you can and cannot do. You will quickly find that you are very limited in how you can use the name “Herbalife” in your online marketing efforts. I understand why the company has strict internet marketing policies to protect its image, reputation and intellectual property, but it does limit your online marketing efforts.

herbalife problemsFor instance, you can’t use the name Herbalife on your blog, if you use Google AdSense or if you discuss other MLM Companies, lead programs, systems or affiliate products. And Herbalife retains the right to “take ownership” of your website if they deem you are in violation of one of their policies. Personally, I dislike that policy.  I think their online policies are a bit outdated, especially with the growth of the Internet in recent years.

Market Timing

The reason I say that “timing” is one of the problems with Herbalife is that the company is more than 30 years old. It’s one of the top 10 network marketing companies around, in terms of sales and distributors. They’re pretty much the leading health and wellness direct sales company in the world. And they have a good reputation (overall). But, if you look at most of the top earners you will quickly discover that most of them have been with the company 20 or more years.

In other words, you don’t see lots of new people joining the company and advancing to the top ranks quickly. I’m not saying it doesn’t ever happen, or it can’t be done, but it is very unusual. I’ve learned that there is a “strategic” time to join any direct sales company, especially within its first five years. This allows you to take advantage of the initial momentum and improve your chances of success.  If you join the party too late, it’s much more difficult to get to the top ranks.

Deceptive Recruiting Techniques

There are some distributors that do some shady things, such as sell systems and training to their downline at a large profit.  Often times, it is misleading, or provides a significant income to the top distributors, without the new distributors knowing it.  Herbalife has recently cracked down on several of these top distributors by terminating their distributorships.

There are also successful distributors who recruit online and offline, but never mention the word Herbalife.  In many cases, people who sign up/buy don’t even know they are becoming  a Herbalife distributor.  Personally, I think this wrong and misleading.   Once again, the company is really cracking down on this, so I expect it will happen less in the future.  Finally, some reps advertise Herbalife as a job on sites such as Monster and Craiglist.  I believe this is also very deceiving.

Ebay and Amazon Sellers

I think eBay and Amazon have pretty much ruined the opportunity for a new distributor to achieve success with Herbalife, especially with acquiring customers.  With Amazon and eBay, anyone can go online and purchase Herbalife products at a huge discount, probably cheaper than you can buy them for directly from the company as a distributor (even with your discount). This makes it difficult to find customers and distributors when they have a cheaper alternative than buying from you directly.

Final Thoughts

In conclusion, I am a big fan of Herbalife. I think it is a wonderful direct sales company with great products, exceptional distributor support and plenty of great training. The only problems with Herbalife I can find are the company’s online marketing policies for distributors, the market timing, some of the deceptive recruiting technqiues by the top distributors, and the eBay/Amazon sellers.  I still believe they offer a viable business opportunity for the self-motivated person. They remain one of my favorite direct selling companies around, even though I am not a distributor.

You could also argue that many of these problems apply to most companies in our industry, not just Herbalife. 

What are your thoughts? What are the problems with Herbalife as you see it?  Leave a comment to let us know.

Disclaimer: All names are registered trademarks.  I am not affiliated with the company in any way.

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5 thoughts on “Problems with Herbalife

  1. Amol

    Hello Chuck ,
    It’s my immense pleasure to let you know that your MLM tips are amazing and very helpful for new beginner like me. I became Herbalife Distributor this Oct . i.e. 28-10-2014 . I would like to start my own site for recruiting purpose and improve sells all around INDIA (I’m from India 🙂 ) . So without violating any thing can you please let me know how should I proceed. ? Oh…and you 7 day MLM training is also awesome. keep rocking.

    Reply
    1. chuckholmes Post author

      I would tell you to start by talking with people you know. Blogging is a long term venture. It will probably take a couple years of full time effort to build up any traction at all with blogging. It’s not fast or easy. It’s a good secondary strategy IF you do it in conjunction with talking to people you know. I hope that helps.

      Reply
  2. s. conard

    Kyrese, good for you! It sounds like you know what you want and you’re willing to work hard to get it. I’m sure you are finding chuckholmes’s comments and postings here quite helpful, as am I. I’ve learned a lot about network marketing through this site. If you haven’t checked out the motivational section yet, you really should. Enjoy your business!

    Reply
  3. Kyrese

    I joined Online Business Systems and became a Herbalife Distributor this past February, 2012. The products are amazing, I haven’t had this much energy in years and I’ve lost 37 lbs, in just a few short months!! Online Business Systems offers a lot for $399 and then the $100 website set-up fee. You don’t have 1 website, you get 6 websites, which are completely maintained for $79.95/month. You may invest in buying advertising but plenty of people build their businesses on the many avenues of free advertising which is available on the internet today. As with any business you are starting up, there are start-up costs. But I honestly do not know of any business you can start up for $500. My family has owned and operated a brick and mortar’ business for over 30 years, and I can tell you right now that the start-up costs were in the tens of thousands and advertising in the thousands!! There is nothing mysterious here. No one makes you buy advertising. You DO need to work hard ! As with anything in life, the more time and effort you put in, the more you get out. I think people of today are looking for something out of nothing. To get ahead you need to work hard. I already see my efforts paying off, and I am not going to let quit or failure come into my mindset; as I strive to reach my goal of achieving financial freedom for mine and my family’s future.

    Reply

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