Herbalife Nutrition is a multi level marketing company that produces and sells personal care products. The company was started by Mark R. Hughes almost 20 years ago, and it now uses an estimated 8,912 individuals worldwide. Herbalife Nutrition was designed to help those who were interested in increasing their level of physical fitness, increasing their level of energy, losing weight, or just looking after their health. Although the company has changed several times since its start, the basic business model hasn't changed at all. Herbalife nutrition offers various types of nutritional supplements and other products. The majority of the products are aimed toward those trying to increase their protein and calcium intake.
There are several lines of nutritional supplements available through herbalife nutrition. These lines include: weight loss, athletic performance, energy boosters, anti-aging and special formulas for babies and infants. All of these different types of formulas can be purchased separately, which makes it easy to find exactly what you're looking for.
This is one of the biggest issues with most MLM companies: the compensation plan. The top selling product is usually the most profitable, but because so many distributors buy into the concept and fail, the company isn't making any money. The only way Herbalife makes money is by paying distributors for their sales leads and commissions. Because distributors have to purchase nutrition products, it means that they are going to have a direct relationship with the manufacturing company.
In order to remain at the top of their game, Herbalife nutrition products need to be manufactured in the United States. Recently, Herbalife decided that they would be moving from a small office in Purchase, New York to a larger facility in South Dakota. This move appears to be an attempt to stay a step ahead of the growing organic health and fitness market. Herbalife distribution leaders in the United States have indicated that they expect increased activity as the holidays approach. Herbalife representatives have told distributors that the nutrition business is "a cash cow" for the company.
While the Herbalife business model does seem to work well overall, there are some fundamental problems that need to be addressed. Herbalife Nutrition distributors have reported problems with ordering, sharing information about their products and compensation plans. Additionally, there have been numerous reports of financial fraud and other illegal activities. In response to the increasing complaints from distributors, including a class-action lawsuit filed by the National Association of Personal Trainers (NAPTF) and the Federal Trade Commission, Herbalife has implemented measures in an effort to control fraud and increase the quality of their nutrition products.
One of the most common problems that Herbalife distributors face is ordering nutritional products that contain potentially harmful ingredients. One of the products that Herbalife manufactures contains Ephedra, a prescription-grade stimulant that can cause serious side effects such as heart attacks, depression, liver damage and even death. Another harmful ingredient in the Herbalife product category is L-carnitine, a substance that can cause a variety of medical problems and is banned in some regions. Herbalife also markets an unrelated weight loss supplement that was banned by the FDA. The distributor who sold these herbal supplements to thousands of Herbalife distributors was recently sentenced to two years in federal prison.
Herbalife also markets a nutritional supplement called Slim Fast. While the company does not tout the product as a weight loss aid or a cancer treatment, the product has been determined to contain ingredients that may cause serious health risks. In addition to causing severe liver problems, it has been found to cause birth defects, brain damage function, affect kidney function, cause high cholesterol and may contribute to cardiovascular disease. The distributor who sold the product to the United States was sentenced to three and a half years in a federal prison for selling unsanitary products that resulted in serious health problems. Herbalife nutrition distributors need to be aware of the warning labels on the products they distribute and they need to make sure that they are buying only premium ingredients.