Is Herbalife A Scam Or A Real Business Opportunity? Part Ii
In the first article we had a brief look at Herbalife the company and the products that they market
. Now well take a look at what all the finger pointing has been about, the business opportunity.Mark Hughes started this company to make money, and it did just that. Not just because of the products, but because of the way it marketed them using Multi Level Marketing and a lot of hype and excitement. The company was built on having lots of meetings every week and getting new people so jacked up with the loud music and clapping, that their business head seemed to fly out the window and their disco head now made the decisions. Great if you can get away with it, and they did, by the truck load. On the upside, it was relatively cheap to become a distributor; therefore youd have very little risk which is clearly appealing. You also needed no experience as your upline sponsor would teach you everything youd need to know to get rich. This was key to the whole meeting system as this alone sold a lot of people on the company and the opportunity. What could be seen to be a down side here is that although all of the meetings were run to a similar format, they werent run by corporate. Instead they were run by other independent distributors who were looking for new blood to build their own incomes.
So now youve got your new business in the form of a small box containing training and marketing literature as well as a nutritional programme for you to use on yourself, and off you go. You start of at the lowest discount level and you begin by chasing your friends and family with the hope of selling some products to them or getting them to join you in your new business venture. You tell everyone you know that youre going to retire in 3-5 years because that was the story you were spun on the night. Now lets not knock that plan too quickly, because if you look hard enough youll find lots of people who have achieved that and a lot more, sometimes in an even shorter amount of time. But thats not too surprising when you come to realise that Herbalife has somewhere in the region of 2 million distributors around the world. With numbers that big, anything is possible.
What is alarming though are the percentages that make up these high flyers. Weve all heard of the 80/20 rule where 20% of the people do 80% of the work. And were all told in life that only a few really make it to the big time. Well that few in Herbalife makes up less than 1%, and whats more, between them they earn around 85% of the companies money. In other words, the other 99% which includes you, are left to fight it out over the remaining 15% of the money. Is that fair? Well it would be if you were told those figures in the first place. Despite this being relatively cheap to get into, around $100 is the norm, it is still a business, and therefore all of the cards should be on the
table when you look at it.
Imagine buying a NASDAQ listed franchise business and later discovering
that your chances of making it a success were only around 1%. One could argue that you may be more successful betting on a horse race.
So there you have it. Is Herbalife a real opportunity? Yes, people around the world are making money, and some, be it a very small percentage, have become very rich it the process. But before you buy into all the hype I suggest that you do some due-diligence first. That way you can make a well informed decision about whats involved for yourself, rather than a bunch of overweight happy clappies deciding that for you.
Enjoy Your Day
John Drake
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