Headquartered in LA California, Herbalife is a health based company that was started by Mark Hughes with the advice and support of Dr. Richard Marconi, PhD. Herbalife, at its creation was called Herbalife International. Mark Hughes wished to create and market certain weight loss products easily and successfully. Hence, the Herbalife sell and market their products through multi level marketing or MLM. Initially, Herbalife International marketed their products via cable TV programs with huge testimonials. They also used bumper sticker and buttons for the effective marketing.

The Products:

Herbalife International offers health, wellness, fitness and several herbs, weight management products, personal care products, skin care products and dietary supplements. Most of the products are toxic free. Herbalife’s products do not have adverse affect on your health and helps to lose weight. The product line of Herbalife consists of three main products: Formula #1, Formula #2, and Formula #3.

Formula #1 consists of a meal replacement high protein drink.

Formula #2 is a tablet made up of herbals.

Formula #3 is a multivitamin and mineral tablet.

At first, Herbalife promoted their products as Slim and Trim Program. Now, it is called as Herbalifes Cellular Nutrition Health and Weight Management Program. Both the programs have little difference. The program includes Thremojetics system that controls the weight of the body by taking herbal tablets. There are some testimonials of the customers who have taken Herbalife products. The consumers who have taken Herbalife products state that, there is an increase in stamina and energy level. The products are very effective in weight loss and provide relief form arthritis, headaches, acidity and other inflammation ailments

Stair Step Compensation Plan:

The compensation plan offered by Herbalife is called the stair step breakaway plan. This plan is rather difficult to explain; roughly explained, the distributors need to break away from the original sponsor upon achieving a certain qualifying point. Once they break away the original sponsor will receive a portion of the total volume of the distributor’s collection. Although difficult to explain, Herbalife compensation plan is considered to be one of the best plans in the marketplace. However, to succeed in this business, you have to recruit people. Herbalife is a great opportunities for those, who have the ability to build a team of 100 to 200 members and draw around $1000 residual income per month. Herbalife can be beneficial for everyone with a great line of products and winning compensation plan. Herbalife is a top among the internet marketing standards.

Beware the Herbalife Scam! That is a phrase that many an aspiring entrepreneur will hear from a well meaning but ignorant relative or friend when starting up a home based business for the first time. The Herbalife scam is not a new phenomenon! The fact is that a ’scam’ of any kind has been around longer than Herbalife has even been around!

How can that be?

Well it is like this… Scams only exist in the minds of those who have not researched, investigated, probed and done due diligence or their homework on the subject that that they are interested in. It is true that there ARE scams that exist, but they are only scams AFTER you have been caught by them. Do you get what I mean? “It sounds too good to be true, then it probably is,” is not a scientific analysis and so your opinion should not be based on this conclusion. As Tim Sales once remarked… “If it is too good to be true then is that any reason to stop looking?”

The answer is ‘of course not!’

The phrase the Herbalife Scam is not just reserved for Herbalife… it is used to describe ANY product or service that you may be interested in where a relative or friend or salesman has a vested reason to provide you with that opinion.

You see, anything is a scam if I were to just come out and tell you that it is. And it does not take a rocket scientist to tell you those words either… “it’s a scam!” Any person can say that but it takes a real insider, a real go-to man, too know the real truth about whether something is a scam or not. In fact, scams have been around since man first decided he would trade his 1 camel for his neighbours 3 goats and the man who got the camel felt that he lost out in the exchange. Again… if you do your homework before joining or buying anything, whether it is a new home, a new car, a digital product or a calculator, you will not have that feeling that you have been taken and so you will not have been scammed. Sure, the Herbalife Scam DOES exist! It exists in the minds of those who believed that they could get something for nothing. It exists in the minds of those who would rather spend time complaining about where they are in life then actually doing something about it.

Spend 5 minutes complaining and you just wasted 5 minutes!

If a Herbalife Scam really existed then how come Herbalife has 29 years of business success, is in 70 countries, has 100 million documented testimonials, Nobel Prize winning scientists, more millionaires than any other company or organisation on earth, is the official sponsor of David Beckham and the L.A Galaxy, is Listed on The New York Stock Exchange, has nearly DOUBLED its turnover from US$2Billion in 2004 to US$3.8 in 2008 and is the “Number 1 Weight Loss Company In The World”?? I could go on and on but the point is that for anyone interested in ANY home based business opportunity then they must do their due diligence and homework before joining ANY company and ANY team. In the end there is no Herbalife Scam, only those who did not do their research and no matter what work from home business that you do join, your success will ALWAYS come down to 3 fundamental principles that will never change.

1). Marketing :- Without an effective marketing strategy and system in place you will not have a business.

2). Mindset :- To be truly successful at ANY business you MUST put yourself MENTALLY in the top 1% of the earners. You must think, talk, look and act like a leader.

3). Hard Work :- I never knew ANYBODY who got to be successful and didn’t have to work hard for it.

Because of my extensive experience in both business and marketing, I am often asked my opinion of many companies and whether or not they are worth pursuing. One company that I have recently been asked about is the health and wellness company, Herbalife, and whether or not it is a scam. So I decided to conduct some research and provide an unbiased review.

Company:- Herbalife was founded in 1980 by Mark Hughes who started selling his products from the trunk of his car. Just two years later his company became international with annual sales reaching $1 billion. The company now employs over 3500 people, with over 240,000 distributors around the world.

Products:-The herbalife product line consists of a variety of nutritional and weight loss products.

Business:- This is where people start to become wary of the Herbalife Scam and whether or not that is the case. Herbalife is in fact a network marketing company and distributors sell the products and recruit people to join their team and build their business. Being a network marketing company in no way makes a company a scam but because many people in the company choose to market the business opportunity first and then the products, some people see that as a red flag to a scam. The other problem is that their business system relies heavily upon recruiting new people in order to make money so a person’s entire success in the company comes down to how large they are able to grow their downline.

Conclusion:- From what I can observe, Herbalife is not a scam, however there does appear to be much about it which would make making money with their system quite difficult. They do have great products, but if you are looking for a business which does not rely heavily on the constant recruiting of new team members to make money, I would suggest looking online for a marketing company which will teach you how to drive traffic to you and your website instead of vice versa; a much more effective way of building a business and making significant money online!