HerbalLife settles for $200 million

Posted by on July 18, 2016 in Business, Financial Freedom, Network Marketing | 0 comments

Building a business that works with or without you is one of the 3 ways you can create Financial Independence.
It is one of the most doable ways for the average person because it doesn’t have to take a lot of capital like Real Estate and Investing does; it take more of your TIME. This is why many turn to Multi-Level Marketing.

People join MLM’s in hopes of creating a money, lifestyle and freedom, and most companies tote that line, however most companies compensation plans don’t deliver anything BUT hope.
HerbalLife was a great example of that and I am glad that there was an action successfully brought against them. I hate to see people waste time, energy, sweat, tears and most importantly put their reputation and word on the line for something that is NOT what the brochure promised.

This is why it is SOOOO important to get EDUCATED. It is one of the steps to lasting change and success in our#1 Best Selling Book, “Catch Fire; How To Ignite Your Own Economy”

FTC.gov action and settlement details

Above is the link describing that HerbalLife mislead potential owners and that they paid out on signing people up to buy product at wholesale (which is against regulations) and shows signs that a company is not legitimate. Any company that is doing this is up for investigation, even one’s who have been around a long time like HerbalLife, so again, education is KEY. They will need to re-structure their entire business operations, which will also cost them a lot of money to do so.

QUOTE from the article: “The small minority of distributors who do make a lot of money, according to the complaint, are compensated for recruiting new distributors, regardless of whether those recruits can sell the products they are encouraged to buy from Herbalife.
Finding themselves unable to make money, the FTC’s complaint alleges, Herbalife distributors abandon Herbalife in large numbers. The majority of them stop ordering products within their first year, and nearly half of the entire Herbalife distributor base quits in any given year.”

Our opinion is to stay away from things that are a “Sign Up Game”.
No actual customers exist, or too few to even legitimate. It is just a “Cookie Club” of people who registered as a business so they could buy at wholesale.
That would be the equivalent of buying a McDonalds and every 30 days having to personally eat enough of your own food to meet the sales quota, without servicing customers. Doesn’t make sense, does it.
Multi-Level Marketing is famous for this. You can make big money upfront if you are a “recruiter”… but often they lack stability and profitability in the long term.

Direct Sales is where you focus on sharing and selling your products and services to the end consumer (customers) and if you bring on business partners who do the same, you will create a potential leveraged income off their activities as well. This is a better model, but again, not all Compensation plans are created equal; so do your homework.
Just because you LOVE the product doesn’t mean it has the Business model that will help you reach your financial goals. There are plenty of AMAZING products to love out there. Make business decisions based on your head and heart, not just on emotion.

We have CRITERIA in our Book that goes over what to LOOK for when it comes to a Financial Freedom Vehicle.
Get the Catch Fire Book

Live Free ~ Melanie Nelson
Founder of Catch Fire University
Entrepreneur and Speaker

Douglas S Nelson ~ Co-Founder of Catch Fire University and Author of "Catch Fire: How to Ignite Your Own Economy" is a financially free entrepreneur that has trained thousands the steps to create financial freedom in their own lives.
Doug Nelson
View all posts by Doug Nelson
's website

Leave a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>