Is Herbalife a pyramid scheme?

This is an excellent question. I have many uninformed people telling me that I’m involved in a pyramid scheme. So let’s get done to the facts.

My understanding of a pyramid scheme is as follows: If you manage to get into a business first and then manage to sign up people to work in your network then you will “earn” a portion of what they make. Thus you make your money from your network’s efforts and not your own. The down side of this idea is that the person at the bottom of the pyramid does all the work but earns very little while the person at the top makes all the money. We can use the following diagram to show this:

                                                           

Owner of Business (Earns from people below)

Workers (Earn from their own efforts)

                                                

But now if you look very carefully at this diagram you will notice that it resembles traditional businesses. At the top you have a “BOSS” with different levels of “WORKERS” below him. The Boss dictates what he will pay his workers. This of course is a very delicate task because he can’t pay his workers too much because then he eats into his own pay check. He also can’t pay to little because then the workers will complain and not work very hard. Sound familiar? Yes, my good friend. You are already working for a pyramid scheme and if you are reading this article then you are more than likely not at the top earning the big bucks with all your minions working below you.

Right now, let’s have a look at Herbalife.

In this organization you sign up in the business by purchasing an International Business Pack (IBP). This entitles you to trade with the products that Herbalife produces. But you sign under a sponsor you say. Yes that is true, but if I work my business and my sponsor does very little work, then I WILL be more successful than him. So unlike the previous example where the boss earns off the efforts of his underlings and not his own efforts, with network marketing I CAN and WILL earn more than the person or persons above me. I personally earn more than my sponsor because I am working hard to build my business and he is not. The other beauty about Herbalife is that he will not earn a blue dime off my efforts if he is not working to strengthen his network of which I am a part. The company has also said that he can only earn royalties from me if he reaches certain targets. These targets will determine what percentage of royalty he earns.

Let’s go back to my initial question. Is Herbalife a pyramid scheme? No it is not! In fact unlike the “traditional business” that I’m able to draw a diagram. I cannot draw anything resembling the Herbalife structure because each distributor is an individual business that can earn hundreds or even hundreds of thousands of dollars each month.

Herbalife is a company that has been growing for the last 31 years. It is present in 75 countries around the world and it’s listed on the New York Stock Exchange. This is a business that is very much worth looking at. You can make money with Herbalife. I AM!

Give me a shout if you feel that you would like to know more and get yourself out of the rat race.

Click www.healthymoney.co.za