Is Herbalife A Fraud Or Not?
April 12, 2008 | By Monika Mundell | 4 Comments »
Some interesting news have surfaced about Herbalife, one of the golden children of MLM. A newly released list by the Fraud Discovery Institute (FDI) has made waves in the MLM world and will no doubt continue to do so for some time. The Press Release states that there are a lot of red flags that are raised against the multinational company.
Those flags include:
- dumping of stock holdings by senior management in alarming rate since the beginning of 2008,
- a devastating 90% miss on new supervisor growth,
- 80% saturation
- 60% supervisor turnover
- $365 million debt at the end of 2007 (mmhh, didn’t they always state they were debt free?)
- declines in major markets
- China forecasted no to be viable for long term success
- cannibalizations of markets (LOL, I like this one best)
- Unrest in China
- Apparently they are like Usana, even though they state they are not.
The FDI is set to clear up the mystery and lies of MLM and is on a video "warpath" to show potential Herbalife distributors what is really going on in this company by interviewing ex-distributors. This could become interesting.
Check out the video below:
Related Posts:
If the compensation plan was made more distributor friendly , this company would still be growing at a good pace .
this is not the only reason why the sales decline for any mlm target="_blank" rel="nofollow" href="http://gobala.linktrackr.com/attractionmarketing-mlmrkeywords">mlm , but the competition in all major markets do challange any companies growth.
they should look at having an intelligent online software for their operations and reduce their overheads on corporate and infrastructure.
[...] Press reported a 5.5% stock fall of Herbalife shares after allegations of fraud were voiced by the Fraud Discovery Institute. I touched on this subject a couple of days ago here on Work at Home MLM target="_blank" rel="nofollow" href="http://gobala.linktrackr.com/attractionmarketing-mlmrkeywords">MLM [...]
@ teamstrategyindia: that is an interesting overview and certainly provokes further discussions. The problem with many “older” MLM target="_blank" rel="nofollow" href="http://gobala.linktrackr.com/buildingonabudget-mlmrkeywords">MLM companies is that their marketing plan was created for the 80s and 90s and these practices are long outdated now.
In my eyes this certainly does not help to create distributor retention and grow the business fast.
[...] of MLM. A newly released list by the fraud Discovery Institute FDI has made waves in the MLM target="_blank" rel="nofollow" href="http://gobala.linktrackr.com/buildingonabudget-mlmrkeywords">MLM …http://www.networkrevolution.org/is-herbalife-a-fraud-or-not/Rip-off Report: Herbalife/Work from Home ripoff deceptive company …Herbalife/Work from Home ripoff [...]