Herbalife was first launched in Los Angeles in 1980. Today, it has expanded into a global company, available in over 90 countries. Herbalife is one of the largest multi-level marketing companies in the world. If you've seen the word 'Herbalife' at a promotional stand, or on a t-shirt, or anywhere else, then it's quite likely that you live in one of the many countries where Herbalife is active. We decided it's time to offer our streetonomic review of Herbalife!

If you've met someone who has joined Herbalife, then it's quite likely they invited you to 'see the opportunity' and become a Herbalife distributor. I have personally been invited more than once. I even went to one of their promotional seminars but I decided not to join Herbalife.

Herbalife uses network marketing to promote their line of nutritional products. Like all multi-level marketing companies, Herbalife offers a business opportunity to anyone who is willing to give it a try. The idea is you use the products and tell other people to use them too, once your friends start telling their friends, you'll be earning enough income to be financially free. Sounds pretty simple, but at The Finance Guy, we believe that you should not join Herbalife because making money with mlm is very difficult.

Why Do Herbalife Members Want to Recruit You?

Like all direct marketing companies, the key to financial success in Herbalife, is in building what they call a 'down line'. The strategy is to invite anyone and everyone you know to join under you as a Herbalife distributor. The more you recruit, the bigger your team gets, which theoretically results in you earning more money. In theory, all you have to do is tell a few friends, and have them tell their friends. In reality, making money with Herbalife, is extremely difficult

Making a profit from Herbalife is far more complicated than simply inviting a few friends to become distributors. Herbalife, distributors need to remain active by generating their minimum quota of annual Volume Points (VP). Each Herbalife product has a VP value, so the more Herbalife products you and your down line purchase the higher up the chain you will rise. Buying more product also qualifies you for larger discounts on the prices. (the top discount is 50% off the recommended retail price). To remain active, you have to buy a minimum quota of Herbalife product. If you fail to generate VP, then you become 'inactive', and forfeit any future commission your team might have generated for you.

The presentation I attended claimed that this is a business for everyone because 'you don't have to be a salesperson to be successful in Herbalife'. If the distributors aren't salespeople, then what are they doing with all that Herbalife product they have to buy just to qualify for commission? To make money with Herbalife, you will have to buy a lot of Herbalife products, and convince everyone in your down line to do the same.

How is Herbalife Promoted to New Members

If you attend a presentation, as I did, Herbalife distributors will tell you that they are offering you an opportunity for financial freedom. They will focus on dream building, telling you to imagine a future of luxury and financial affluence. They'll claim that in a few years you can have enough 'residual income' to finance your wildest fantasies. What they forgot to mention is that all the money for this dream lifestyle, comes directly from the people recruited in their down line.

The person who recruits you, and quite a few people above them in their 'up line' will enthusiastically tell you the importance joining right away, and buying your Herbalife Member Pack (HMP). They will tell you that to become financially free, you need to understand 'duplicating' and 'being a product of the product'. This is their way of telling you that you need to spend money on Herbalife products, and you need to do it right away. They conveniently don't mention that: If you don't spend money, they don't make money.