Herbalife Fraud

The dictionaries describe fraud as “A deception deliberately practiced in order to secure unfair or unlawful gain.” So is there a Herbalife fraud? Why do people think Herbalife is a fraud? Let’s take a look in this article.

When you think about companies that have been fraudulent, most times things like Enron or Berni Madoff comes to mind. You typically have some very smart, unethical and most likely, individuals with a sociopathic  personality at the helm. Everything is inherently designed to cheat people out of their money. There are other schemes out there that may not be a fraud in the eyes of the law, but are obviously deceptive. Take the so called auto warranty phone fraud for example. Many times we fall into the trap of calling something a fraud because of a gross injustice perpetrated by individuals or companies, and I completely understand this. So the question remains, is there a Herbalife fraud?

So What’s This About a Herbalife Fraud?

When you hear people talk about a Herbalife fraud, it is based more on misinformation than actual facts.  Before jumping to conclusions, it’s best to dig a little deeper to discover the facts about something before jumping to conclusions. As it relates to an alleged Herbalife fraud, it’s important to be clear on exactly what part of Herbalife may be considered a fraud. Is it the weight loss and nutritional products the company sells? Or is it the business opportunity which provides entrepreneurs with a way to run their own business marketing and selling the products?

Herbalife Products

When people question whether Herbalife is a fraud, is it because of the products, and does Herbalife really work? Well, has anyone ever purchased one of their nutritional shakes, opened the box and found it to be empty? If so, that could be called a Herbalife fraud, but that isn’t the case. How about people who say the program never worked for them? Is that a good enough reason to call it a fraud? The fact is, there are millions of people around the world who have achieved success using the products. So, the program certainly works. Will it work for everyone? Probably not.

Something to consider is how many of the people who say it isn’t working, actually stick to the program? Losing weight is not an easy road. It takes commitment. It doesn’t matter what program you choose for your weight loss, unless you commit to it, and follow through, your chances of success diminish. Most times, it isn’t that the program doesn’t work, it’s that the individual using the program doesn’t work the program. If you bought a gym membership but never went, would you claim it doesn’t work and call the gym a fraud?

Some people who have felt sick after taking the products, say it must be a Herbalife fraud. The thing is, this may be a normal part of the detoxification process as the body is being cleansed of toxins.

Herbalife Business

What about the business? Now this opens up a whole can of worms. There is no other industry that I know of that has received such a bad rap, as the direct sales/network marketing/multi-level marketing industry. There are many people who say that the Herbalife business opportunity is the part that’s the Herbalife fraud.

Herbalife was founded in 1980. Today there are more than 1.8 million Independent Distributors in more than 65 countries generating annual sales in excess of $3.5 billion.

The only way to purchase Herbalife products is from an independent distributor. Herbalife uses a direct sales business model to take the products to market. Direct selling is defined as “Marketing and selling products, direct to consumers away from a fixed retail location.” This is a very effective form of distribution that has been around for over 50 years, and is used today by some of our most respected, multi-billion dollar companies.

Unfortunately, most people have a 40 year old image in their mind of folks standing around a kitchen table selling soap. We’re pre-conditioned to believe this is not a legitimate way to sell a product. But the industry has evolved, and continues to attract entrepreneurs committed to developing as leaders and enhancing their life experience. There’s a great CD narrated by Bob Proctor who was featured in The Secret called What Would You Change if Your Annual Income…Suddenly Became Your Monthly Income? This CD will really help people understand the industry.

Now I’m sure there have been some frauds out there that have given multi-level marketing a bad name, and some people even confuse this legitimate business model with a pyramid scheme. The reality is, any business requires effort to be successful. Many people who fail at the Herbalife business are quick to call it a Herbalife fraud and blame the company or the products, when they should really be looking internally for why they didn’t succeed.

Internet Ads

Do a Google search on Herbalife fraud or just Herbalife, and you’ll find a bunch of paid advertisements telling you not to join Herbalife, and why the advertiser left Herbalife, etc., etc. Some people seem to have made a career out of discrediting the company. You can just as well do this for any other company or major direct sales organization and find similar ads.

Do you realize the people who are paying for these ads specifically design them to leverage the brand as a marketing tactic to sell their own program, lead source or service? Most people don’t realize this, and take what is being said on face value; that the Herbalife fraud is real. And what does it say about the advertiser if these are the tactics they resort to in order to promote their own business. Personally, I’m not going to put another company down, just to sell more of my products.

Herbalife Fraud – Conclusion

Of course, there are bad apples in any business, but look at the core. Who are the leaders behind the company? Look at their track record. Did Herbalife have challenges in the early days? No question. Just as any business would as they experience tremendous growth. What about challenges currently? I don’t know of a major company that doesn’t.

We may not all agree on everything, but these facts and observations should help to set the record straight, and put you in a position to make an intelligent assessment for yourself about this so called Herbalife fraud, and you may just realize that Herbalife is a legitimate organization.

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