The Herbalife Alert

Herbalife is a passion of mine.  It's something that holds special value to me.  And by special value, I mean it's a fun target to shoot at.  SO DAMN BIG, that target is!  Founded in 1980, it's a "multi-level marketing company" (we call those pyramid schemes 'round here)  that sells fitness supplements and products.  It's risen to prominence in the last few years with the prevalence of social media, specifically Instagram and Facebook, which provide ways to set up before/after shots from satisfied users, as well as the ability to show the actual products, and contact information for it's distributors. Case in point:

Looking at this Instagram post, it makes sense how a produce could get this popular.  It goes straight for what you want to hear, using language that entices anyone looking to become more healthy and fit.  It clearly displays the company name and logo, as well as provides contact info for the distributor (you're welcome for the free publicity kid).  What doesn't it do?  Tell you anything about the products look, flavor, pricing, nutrition facts, or anything else that may give you a clue as to what you would be looking into purchasing.  This is what "marketing" of this style does, promises the world with not so much as an outline of how you can attain said world, other than having a private conversation with someone in the know.  Now, let's take a gander at a before/ after pic, and the language attached:

So, clear evidence of someone that's used the product, claims it's been effective, and uses way too many hashtags.  A 40 pound weight loss is definitely something to celebrate, no harm done here.  But speaking from experience, losing 40 pounds over that period of time is attainable through products you can purchase directly at any grocery store/ supplement chain.  Here's my biggest issue with the product - you essentially have to find someone "in the know" to partake, and that's when the money side of the whole deal kicks in.  I'm not one to try and bore you to tears with numbers, but here's a fast breakdown of how distributors get put on, and how they make money:

So step 1 - have someone already down put you on.  Got it.  Step 2 - let's look at this "73% of the turnover.
Taken from EZbiz's Herbalife Marketing Plan Review:
Herbalife has a discount system of 25%, 35%, 42% and 50%. The more products you and your distributors purchase during any given month, the higher your discount will be. Each discount position relates to a level in the marketing plan you can step up to. Once qualified to a higher discount position, you will remain there for 12 months. If during those 12 months you requalify to that position, you will remain there for the next 12 months. These initial levels are:
25% – Distributor
35% – Senior Consultant
42% – Success Builder
50% – Supervisor
To earn the second level of income, wholesale profit, you need to be at a higher discount level than the distributor purchasing the products.

Oh.  So the more you buy, the bigger the discount... but even if you sell all of it, you have to wait a whole year for a larger discount.  So in a business where you dictate the sales, you have to "slow down" so as not to make enough money to stop spamming social networking.  Regardless of your ability, they place a cap on distributors to maximize the profits from the higher ups.  So the money breakdown ends up looking a bit like this:

oh... apologies, like this:

In a format set to keep those on top, on top, and those below scratching and clawing to make headway, how do you call it anything other than a pyramid scheme?  In any case, it's America, and for the people that profit off of this, great, but you have to understand the justified criticism here.  And oh yeah, I hope y'all fresh as hell, because uh...

The Feds watchin'.