I talk frequently about how almost everyone loses money in multi-level marketing schemes. Companies like Mary Kay, Herbalife, Amway, and Avon want you to believe that money is being made from retailing the products. They say they are not pyramid schemes because they have legitimate products that can be sold for a profit. Unfortunately, almost…
Several months ago I wrote an article on the Xyngular weight loss program being pimped by Jennifer McKinney (aka mommy blogger MckMama). The bottom line for me was that these programs do not work because: They create short-term weight loss through a dizzying cycle of starvation, unhealthy meal replacement shakes, and questionable drug-like “supplements” that…
You’re listening to a national radio show with a popular host. You hear an advertisement for IncomeAtHome. You don’t know what it is, other than you can make an income while working at home. But why on earth would the voices not tell you exactly what this “business opportunity” is? Because it is Herbalife. If…
Today the New York Post reported that Herbalife (HLF) is under investigation by the Federal Trade Commission (FTC), and that has sent the stock price down more than 10%. The newspaper bases this story on a Freedom of Information request done by the newspaper. It says, regarding consumer complaints received by the FTC: The FTC…
With yesterday’s shutdown of Fortune Hi Tech Marketing, consumers have been asking if Herbalife is a similar operation. Last year Herbalife’s business model was called into question by David Einhorn, and then the company was accused of being a pyramid scheme by Bill Ackman. Naturally, Herbalife denied being a pyramid scheme. Management has repeatedly said…
At yesterday’s big Herbalife investor day, the company paraded around Anne T. Coughlan, a marketing professor at Northwestern University, who proudly proclaimed that Herbalife is not a pyramid scheme. No, it is a legitimate multi-level marketing company. In July, Coughlan published this paper on Herbalife, concluding that Herbalife is squeaky clean. Let’s be clear. Herbalife…
Herb Greenberg, a stocks commentator for CNBC did a ten-month investigation of multi-level marketing company Herbalife. Its conclusion is this 20 minute documentary, and the timing couldn’t be better. Herbalife has been accused of being a pyramid scheme again, this time by Bill Ackman of Pershing Square. Despite the fact that CEO Michael Johnson claims…
Herbalife CEO Michael Johnson says he’s never heard anyone refer to HLF as a scam in the last ten years. Funny, but it seems the internet has heard such things. So much that Herbalife distributors write articles and produce videos that attempt to rank well in Google for the search phrase “herbalife scam.” If their…
As we patiently wait for Herbalife’s “analyst and investor meeting” on January 10 to address the pyramid scheme allegations made by short seller Bill Ackman, there is plenty of good discussion of HLF around the world wide web. Kid Dynamite said Bill Ackman is wrong about Herbalife, citing that: HLF is not a pyramid scheme…
Herbalife has been offering nutrition products since 1980. The product line includes vitamins, meal replacement shakes, and personal care products. Read more about the Herbalife pyramid scheme allegations, and see Bill Ackman’s takedown of Herbalife. Herbalife Statement of Average Gross Compensation 2002 Herbalife Statement of Average Gross Compensation 2003 Herbalife Statement of Average Gross Compensation…