Network marketing is a very interesting thing. It allows a company to grow from a single distributor to a multi million network of them. And Herbalife is one of the most famous level marketing companies. The company is known all over the world.
Company overview. Herbalife, Ltd. is a publicly held company. This American company was founded in Los Angeles, California in 1980. The founder of the company is Mark Hughes who started to sell weight loss products right from the trunk of his vehicle. He founded Herbalife Family Foundation as well to help kids. In two years the company opened its distributorship in Canada and in 1986 Herbalife completed its public offering. The tagline of the company is: “Lose weight now, ask me how!” The company specializes in developing, manufacturing and distribution of a diverse range of nutrition products, skin care products, weight management products, personal care products, etc. The company sells its products in more than sixty five countries all over the world.
Herbalife business methods. Herbalife is widely known by its multi-level marketing model. This network marketing presupposes independent distributors to work both for themselves, and for the company. The company distributes its products through a giant network of independent distributors. According to the company, at the present time there are more than one and a half million of Herbalife distributors. Herbalife is a member of Direct Selling Organization.
Herbalife products. Herbalife specialty products are weight loss products such as Formula One Nutritional Shake Mix. It is a meal replacement shake. Formula One Nutritional Shake Mix was one of the first products developed by the company. Herbalife distributes many other dietary supplements as well. These products are made from vitamins, minerals, and herbs. Herbalife sells personal care products that have nutritional and herbal ingredients: aloe vera, vitamin C. The company promotes to buy its nutritional products and substitute meals via diet shakes and other nutritional supplements in order to lose weight. According to the company, it offers a safe weight control, a balanced diet that is low in calories. Herbalife nutritional products have these macronutrient and micronutrient food formulas.
Herbalife complaints. There have been many complaints filed by the former employees of the company. They reported that the company has many issues with inappropriate business practices. Herbalife ensure their employees that it is very easy to enter and exit the network, while it is not so. Besides, there were two lawsuits filed against the company. In these lawsuits it is alleged that Herbalife distributors are involved in shady telemarketing practices, disclosure in assisted marketing plans, fraud and deceit. It was alleged that some independent distributors illegally used pre-recorded telephone messages to call prospective customers.