Summary

Herbalife says it offers one of the most generous compensation plans in the direct selling business.

Yet, an analysis of distributor purchases in 10 countries found that the discounts fall far short of those pitched.

The company's convoluted compensation plan diverts cash away from rank-and-file distributors and into corporate coffers and the pockets of top distributors.

If Herbalife's compensation plan were actually delivering the payouts its recruiters pitched, it would not be able to turn a profit.