Archived from the original on April 28, Multi-level marketing was banned on the mainland by the government in , citing social, economic, and taxation issues. Acute liver injury associated with the herbal supplement hydroxycut in a soldier deployed to Iraq. Thinking about it, we find it difficult to believe that the bodybuilder was only using deca and androstenedione. Why not use Energize you think.. There are lots of things e.
What is a Pyramid Scheme?
The critical question for the FTC is whether the revenues that primarily support the commissions paid to all participants are generated from purchases of goods and services that are not simply incidental to the purchase of the right to participate in a money-making venture. The Federal Trade Commission warns "Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It's best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products.
However, Amway was found guilty of price fixing by effectively requiring "independent" distributors to sell at the same fixed price and making exaggerated income claims. The FTC also warns that the practice of getting commissions from recruiting new members is outlawed in most states as "pyramiding".
MLM companies from the proposed Business Opportunity Rule, thus leaving MLM participants without the ability to make an informed choice of entering or not entering MLMs based on the disclosed likelihood of success and profitability:. The revised proposal, however, would not reach multi-level marketing companies or certain companies that may have been swept inadvertently into scope of the April proposal. MLMs are also criticized for being unable to fulfill their promises for the majority of participants due to basic conflicts with Western cultural norms.
Based on available data from the companies themselves, the loss rate for recruiting MLMs is approximately Because of the encouraging of recruits to further recruit their competitors, some people have even gone so far as to say at best modern MLMs are nothing more than legalized pyramid schemes    with one stating "Multi-level marketing companies have become an accepted and legally sanctioned form of pyramid scheme in the United States"  while another states "Multi-Level Marketing, a form of Pyramid Scheme, is not necessarily fraudulent.
FitzPatrick has called multi-level marketing "the Main Street bubble" that will eventually burst. Multi-level marketing simplified Chinese: This rise in multi-level marketing's popularity coincided with economic uncertainty and a new shift towards individual consumerism. Multi-level marketing was banned on the mainland by the government in , citing social, economic, and taxation issues. MLM companies have been trying to find ways around China's prohibitions, or have been developing other methods, such as direct sales, to take their products to China through retail operations.
The Direct Sales Regulations limit direct selling to cosmetics, health food, sanitary products, bodybuilding equipment and kitchen utensils. It was not until August 23, that the State Council promulgated rules that dealt specifically with direct sale operation- Administration of Direct Sales entered into effect on 1 December and the Regulations for the Prohibition of chuanxiao entered into effect on 1 November When direct selling is allowed, it will only be permitted under the most stringent requirements, in order to ensure the operations are not pyramid schemes, MLM, or fly-by-night operations.
From Wikipedia, the free encyclopedia. Behavioral targeting Brand ambassador Broadcasting Display advertising Drip marketing In-game advertising Mobile advertising Native advertising New media Online advertising Out-of-home advertising Point of sale Printing Product demonstration Promotional merchandise Publication Visual merchandising Web banner Word-of-mouth. This article needs additional citations for verification.
Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.
August Learn how and when to remove this template message. Higgs, Philip; Smith, Jane Purchasing scams and how to avoid them. The guide to franchising. Cengage Learning Business Press. Archived from the original on June 26, Retrieved June 29, The Direct Selling Revolution. Understanding the Growth of the Amway Corporation. Valentine May 13, Archived from the original on December 16, Retrieved June 24, Archived from the original on February 17, Retrieved February 16, China Isn't Buying It".
Archived from the original on December 8, Retrieved November 26, Archived from the original on October 16, Herbalife selling 'dreams' and 'stories ' ". Archived from the original on February 24, Retrieved June 13, Archived from the original PDF on May 8, Not all multilevel marketing plans are legitimate. Archived from the original on April 3, Archived from the original on March 26, Archived from the original on May 9, Home-Based Business for Dummies 3rd ed.
Brown Caryne Dec Archived from the original on May 1, Retrieved October 24, Archived PDF from the original on August 30, Retrieved August 29, Archived from the original on August 2, Retrieved May 19, Archived from the original on April 30, Retrieved April 29, Network Marketing for Dummies. Archived from the original on January 29, Retrieved January 24, Archived from the original on February 12, Retrieved July 13, Archived from the original on September 12, Retrieved July 11, Archived from the original on August 11, Retrieved July 17, Business Students Focus on Ethics Praxiology: Archived from the original on August 3, Retrieved September 14, American dream or pyramid scheme?
Archived from the original on October 1, Retrieved October 1, Archived from the original on May 4, Retrieved April 5, Archived from the original on January 18, Retrieved March 26, Archived PDF from the original on March 20, Archived from the original on August 31, Retrieved May 7, Archived from the original on April 21, South End Press, Archived from the original on March 8, Retrieved March 5, Oswick Thousand Oaks, Cal.: Sage, , — Western Journal of Communication.
Archived from the original on March 20, Journal of Consumer Marketing. Any diet is wrong and does not sustain and work long term, sensible eating, and exercise is the only way weight loss is sustainable long term. GPs give out meal plans all the time and are not trained nutritionist and should not give out nutritional advice just as much as Herbalife distributors should not be allowed to give out nutritional advice.
A company that sells the distributorship of a nutrition product to any tom dick or harry is taking advantage of an unregulated industry and dangerous. As for your question about products for athletes or body builders, I have used many of the top brands, USN, LA Muscle, MetRex and many more but found a smaller UK based company called ISO2 Nutrition who after trailing their product over the past 3yrs I beleive they are the best on the market. Not only do they work but taste good too. I have breakfast with Herablife Formula 1 since and I lost 8 kilos in a very easy way.
And this products improve my energy!!!! It took you 2yrs to loose just 8kgs? A Diet is where you lower calories and or replace food for such things like these shakes. It is a diet and there is nothing but cheap low grade soy protein in these shakes, if you eat properly and regulary exercise you loose weight become lean and improve your fitness.
Long term, dieting and replacing meals for shakes lowers your metabolism and long term does you more harm than good! This is totally untrue. Please contact me with issues you have concerning Herbalife or what other Distributors have offered you and said to you. Ive had many clients come to me after the long term failure of the likes of Herbalife, and have put them into a healthy eating plan and exercise regime that works, a true lifestyle change, no diets!
This sort of product should not be allowed to be sold by unqualified people with no nutritional qualifications! Herbalife are a law upon themselves along with other companies like them and should be regulated.
Wow, stirred up something here! Firstly just want to say that I became a Herbalife distributor earlier this year and in know way was an easy, fast cars, big houses lifestyle ever proposed to me, although I do know that some of their literature does contain pictures along those lines. As regards the business I do agree with you to a certain extent that some distributors may be selling the products for purley profit and that training should be given if no qualifications in nutrition are held.
As for the products, they are the best range that I found when looking into providing an alternative to my preferred solution of wholesome, natural foods. As a qualified fitness coach, I agree that we should always first and foremost promote healthy eating through natural resources. The true meaning of diet really just refers to the kind of food lived on, so whatever someone is eating is the diet that they are on at that time.
The reason why I decided to provide Herbalife was for 2 reasons. I still ensure that they eat natural foods along with Herbalife, which is in fact what Herbalife promote.
This then is still far better than their previous eating habits. Herbalife for some of them does just that and also with the range Herbalife provide, goes on to support them in any sport or competition that they do.
As for the business side of it from my perspective, I have a supportive upline and will build a downline with that continued support. As a fitness coach and someone who is continually learning about nutrition, I will be able to provide them with the correct information to help their customers. The products are the same price to the customer at what ever level you buy them.
Just as you would with a wholesaler, the more you buy the greater the discount to the distributor. A Pyramid is where the price has to keep continually going up the further down the levels it moves until it reaches a point where the price is so high that the person holding the goods cannot sell on.
Hope that explains a true pyramid scheme. Herbalife is really expanding at this moment in time, even in this recession and that I beleive is because they have realised that by bringing on board health and fit professionals brings more credibilty to their products and ensures that the end consumer is getting the right advice for them. Everyone is different and mindset that was mentioned in a previous post is what needs to be looked at first.
But in Herbalifes case, that was then and this is now and I do know that they are regulated and follow those regulations. I do just wonder whether the regulating bodies are all legit but hey, thats another debate! Great to hear that you have a made a success of your business and I think that the important thing is that we help the people that come to us in the best way we can, which means that despite our differences, our objectives and purpose are similar.
Most distributors are uneducated in the world of nutrition and fitness and should not be allowed to give such advice, Herbalife, LighterLife and all these meal replacement diets out there are a wast of time and money. None of these work long term. I know what I know because of this and because of 22yrs of working with people from all walks of life, you say about busy life style, find time! Those are the weakest people who need the kick up the arse to be told how it is and to find the time and everyone has time!
Its called time management. Taking the easy option because of the thinking of no time to prep meals is just lazy, make meals that can be made on mass and frozen in freezer such as lasagne, tuna pasta bake, things that can be eaten the next day. Cooking methods, the George Forman Grilling machine cooks in minutes, at the same time steam veg and rice etc to not lose the nutrients in food that is lost when boiling in a pan. These are very quick methods of cooking. No time to shop for food, buy online, then the only food you need to get in the shop is your fruit and veg so you know you get the best — the rest of it can be just picked from online and delivered.
If they cant time manage, they will fail, if they take the easy option of a poweder replacement instead of real food they will fail. Herbalife sports and energy products dont come near the quality and level of brands out there that speicically target sports performance. Personally Id have a rethink of what you learnt back when you did your PT course, and all other course that show dieting is not good for you, and meal replacement is the worst kind of dieting.
Its nothing more than ditching calories. Understand life coaching techniques and work with you clients on a lifestyle level as well as their fitness and weight loss goals. Mike, you just upset that we give results… and people love our fun fitclubs more than you, get with the program.. Also im sure you have great qualifications, although they dont come close to our NAB members, we have leading scientists. I do love how you people hide behind the internet with fake email addresses and names because you cant back up what you say….
Herbalife have a number of scientists on their payroll — Yes I know this, but if you are on someones payroll you are always going to say they are great as they are paying you to do so!
I can find at least two scientists for every Herbalife payrolled scientist that is independent that will say Herbalife is just a cheap soybased protein meal replacement product diet that does not work long term and that diets over all dont work! Im just a local guy, yes I am, so are the so called scientists you mention, we are all just local people in our local towns lol. A pathetic argument there…. Im not upset with the results Herbalife give people because the results are poor!!
Long term no diet works! So keep on producing the crap you produce and I will pick up the pieces when people realise they dont work along with all the rest of the Personal Trainers that train their clients the correct way. Mike, I completely agree. Their views can hardly be treated as impartial if they are employed by the company and will always be biased.
As for the meal replacement bars I was quite horrified with what was on the ingredients list, after soy protein there is a long list of various sugars including high fructose corn syrup and to top it off hydrogenated vegetable oil! Reads like a recipe for diabetes and heart problems. I am a specialist diabetic nurse. Have 28 years experience of medical nursing and 10 years as a specialist in diabetes with degree and masters qualifications. I have grave concerns about the claims made by totally unqualified distributors loking to make money.
Plese dont claim you are trying to help people. Distributors are making money from the products ales first and foremost. It is al,ost like a cult. One distributor scribed a severlyunderweight girl who clearly needsmedical care. Probably having electrolyte disturbance due to such low body mass.
The products can do real harm in these circumstances. A qualified dietician studies nutrition to degree level. People with eating disorders need the right help these unqualified people have not even the basic knowledge to recognise that they may be doing more harm than good.
Please seek proper medical advice. I dont have any vested interest in these products. The conversations we have cause me concern. She comes out with dreadful misinformation. Telling customers normal food has no nutritional value. If you have been overweight all of your life and unable to find a good relationship with food yourself then what qualifies you to advise others to co so.
Encouraging your children as young as 5 to use the products? Havent there been concerns about levels of lead in the products? I accept there is a place for supplementation when training, especially to ensure the necessary intake of protein and carbs is achieved.
But trust me there are far better and far less expensive products on the market that will aid your training more effectively than Herbalife or any other diet shakes for that matter. If you actually sit down and read the independent reviews of their products and comparisons to other well known, and not so well known brands they never come off by well. This in turn creates a repeat customer to a very expensive overpriced product same way a drug dealer hooks a new customer.
Do yourselves a favour and read the complete guide to sports nutrition by Anita Bean if you want sound advice on diet and nutrition.
This goes on in this process time as there are at least 5 levels in the Herbalife pyramid scheme. Or you could do the sensible thing and simply do a little reading. Ask someone with a nutrition qualification and actually learn how to eat a healthy balanced nutritious and varied diet. I have a BSc hons in sports therapy, level 4 in lower back pain, been involved in sport and the body since collage till now.
Got to be some worth to them. The business can and only work if you have ALOT of people under you. It took a guy 18 years to get to chairman club k a month and at the rate this company if expanding, i dont think there will be enough people to grab and sign up. End of the day its personal option on this company. It has just hit me that you have the gift of the gab to sell this and I am slowly backing out as i want to kick my sports therapy currier rolling.
Many people who who take Herbalife supplements have claimed to feel restless and nervous, along with experiencing the jitters and anxiety. Herbalife products, when analyzed, were found to contain high levels of lead. The amounts found in Herbalife products were above what the laws allows and were deemed toxic. These artificial claims included helping to treat many diseases, getting rid of tumors, increasing circulation, improving alertness and improving overall health.
Many users of Herbalife have filed lawsuits and complaints about side effects they experienced when using the products. Headaches, constipation, diarrhea, lightheadedness, nausea, and stomach upset are some reported side effects. Ephedra, a main ingredient in Herbalife, has been known to cause psychosis, tremors, kidney stones, high blood pressure, sweats, rapid heartbeat, and damage to the heart and other organs. It has been linked to strokes, seizures and death. Also know that Herbalife can have side effects.
Cascara sagrada can have side other effects such as cramps and abdominal discomfort, notes George T. Cascara sagrada increases risk for low levels of potassium in your blood, a condition called hypokalemia, when taken with me dicines like cortisone and chlorothiaxide. If you have a gastrointestinal disease, it also can worsen your condition. The senna leaves in Herbalife can cause vomiting, nausea, flatulence, irregular heartbeat and kidney damage along with cramping and diarrhe a. Ingesting senna with drugs such as estradiol can decrease your blood levels of estrogen.
Senna can trigger or worsen electrolyte imbalance, dehydration, gastrointestinal problems and heart ailments, note Grossberg and Fox. Some Herbalife formulations have unknown amounts of uva ursi, says Deborah R. Thus, you should take products with this herb only for five days at a time, no more than five times a year, advise the experts at UMMC.
It also can lead to insomnia, irritability, vomiting and nausea. You should not take products with uva ursi in them if you have high blood pressure, are pregnant, have a kidney or liver ailment, suffer an ulcer or have digestive problems, according to UMMC. To all wise people and so called health nutirition expert explain how this product is to be taken without a proper doctors care???
Should this product really be in market as it is??? After reading the whole discussion, your summary is the most useful answer for me. I only want to know what are the issues with this product. Is it really a cheap low grade protein like Mike said. If so, is there a better meal replacement product? I agree those distributors are not very professional and only give positive advice. Not everyone likes or have time to go to gym three times a week. If there may be an easier way, why not take it.
I guess Hebalife may not suit for me since I do have some stomach issues and I will check with my GP first. For the same reason, I still need find a OK meal replacement since most oil food will upset my tummy. And eat boil food all time is not fun. Hi you will be better off going to a Nutritionist in your area to fully advise you on the best course for you, find one that specialises in food allergies — Herbalife is a low grade cheap protein product and sold at a very high premium and sold by mostly people who have no qualifications in nutrition and diet to be able to advise safely.
I have read countless books, studies and articles. But, even i can tell people who support this programme are deluded.
Not eating a meal for breakfast and for lunch for an entire year, like Caleb. You must be plouging hundreds and hundreds into the company for these shakes and things. You can do this by simply eating fresh foods like lean meats and fish and lots of vegetables.
No need to buy gimmicky shakes and things. Just simple, healthy living. And if you want to lose more weight, then simply go on a diet as herbalife is to implement a calorie defecit in your daily amounts to achieve weight loss! People do need to have more education about these things as these things are driven solely by advertisments and sales tactics. Hi, Just wanted to add my opinion. I joined a herbalife sliming club called limelite.
Well here is how it went. Each of the twelve weeks we were introduced to a different herbalife product and made to watch videos from America telling us how fantastic the product was. At the end of each session the items were hugely pushed onto us. I did relent and buy a couple of the shakes, tablets, creams and energy bars. The only support i got was a phone call when the distributor worked out that our products should be running low trying to encourage me to buy more. The fit club was doing an exercise video in a small cramped shed with about 10 of the other ladies.
I did lose a stone but that was due to extra exercise i was doing myself. I would be really interested to hear how much the actual cost is to make the products…I have also since found out that the fantastic photos i was shown at the initial meeting were misleading, The distributor lost 4 stones through healthy eating and diet then started selling herbalife 2 years later but told her customers that she did it through herbalife.
When i started the group there was 23 ladies. At the end of the 12 weeks there was only 6 of us left…. Healthy eating and exercise is the only real way to lose weight and tone up, we are programmed to eat, chew, etc so drinking my meals just did not do for me.
My wife asked me if her dress made her look fat, I said no, its your ass and belly that does that! Sensible eating, sensible exercising is all that is needed to loose weight and maybe just a tad of will power…simples. It concerns me that Reps of this product target new mums,playgroups and even breast feeding mums concerned about baby weight. Why pay to drink milkshakes and loose the joy of eating????
Oh and for the record — Mike I am in awe of your amazing achievements you are not Mr Average in any way at all so please do preach to us mere mortals! Very interesting to see both sides of the debate here. Clearly science is not with herbalife, though outstanding marketing is.
I will stick to keeping one eye on what I eat, and the other on my hrm. Saying that though that Adidas-cannabis type looking logo of theirs is so very appealing…. Eat healthly and exercise is the only way to lose weight and keep it off.
People only gain weight if they eat crap and laze about. Wake up to reality people. I need to lose about a stone, and having seen how much weight a friend has lost on Herbalife, I thought I might give it a go.
That is, until I read all of these comments!! It has given me the wake-up call that I needed-weight loss will only come about effectively with a healthy diet and exercise. Yeah, I could lose that stone with the shakes, but how long would that weight stay off? Yes, we are seeing an increase in obesity and companies like Herbalife may claim they are trying to counter this, but surely what society needs is education about health and well being, and making healthy food like fruit and vegetables more affordable for those on lower incomes?
Was looking into buying herbalife as im a fussy eater and thought it would be a replacement of eating a Healthy meal, exercise is not a problem!
I know nothing about Healthy eating or this product except from what i have Read.. Is it the best thing for me for quick results? No diet is long term good for anyone, Fussy eaters do have a problem when it comes to eating healthy, but you just have to look a little more creative and take a look at other options from real food… Maybe worth getting in touch with a local qualified nutritionist that can sit down with you face to face and plan with you.
Hi i am really impressed with blog. Could say it the best i have read in my internet blog reading. And make i think you are right about a a lot of what you said about herbal life.
I have used it for nutrition back i. My iron and vitaminD levels also improved since i was born in tropical african country living in another climate reduces our vitamin D levels. Again i tried few month ago.
I am breas feeding and i felt lost of sleep and milk reduction so i stopped it. So as i alive in Australia which is different to where i grow up where everything was natural and organic what is your advice for proteins and vitamins. Your best bet is to find a local nutritionist to you where you can see face to face, everyone is diferent and general advice isnt always the best advice, so best to see a local expert face to face to get all the info you need.
Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your webpage? My website is in the very same area of interest as yours and my visitors would definitely benefit from some of the information you present here. Please let me know if this alright with you. I would just like to add as an allergy sufferer I had a huge reaction to the free from shake…im allergic to grains, Corn is a big one for me and the fructose in these shakes is in fact high fructose corn syrup!!
How they get away with calling it a healthy meal replacement is beyond me!! This has just convinced me, to never touch these products. You might as well be selling class A drugs. Mike you are really intelligent and a guy like you would surely be able to set up personal nutrition programmes for anyone.
Give me food anyday! Have you seen a food label on herbalife? Soy and fructose and syrup -great??!?! Thanks for this Mike You really have helped me make a decision when it comes to herbalife! Out of curiosity do you have the same opinion on the forever living products for example the clean 9 detox? I was researching both forever living and herbalife before coming across this article and to be honest i dont think Id like to try either now but would like to hear your opinion on forever living products.
Thanks so much mike! Hi there, yes my opinion stands with all these companies that have unqualified people selling a weight loss programme… Its like getting an unqualified person coming in and fixing your boiler, you wouldnt do it.
I,m was due to start herbalife tomorrow but after reading these comments I,m going to eat less and move more that seems to be the answer. Thank you for posting this site. I googled and researched everything I could about the products met up with soo many different people selling it and they all sound like robots. They seem to have it fixed within in their brain to tell me how amazing it is.
Being a poor student at one point I wanting to join avon as a quick money solution. Hi Mike, just read this blog after googling herbalife and I have to say wow wow wow.
I started herbalife 5 days ago to help me lose about two stones. The first day I felt extremely lightheaded and the same on the second day it has not stopped. I totally agree with you Mike. Overeating is a choice. I know 8 of them, none of them are trained.
All are in it for the money and not to help the individuals. They are just good sales people, that can talk the talk without walking the walk, that is all. A good PT will always work with the whole person long term, not short term. It comes back to Education! I think we all really know that a healthy diet and exercise is the requirement for safe weight loss.
We look for a quick fix and a prescribed program instead of taking control and thinking for ourselves as this also takes less effort! Reading this blog has made me realise this about myself so thanks mike. Although this was not what i expected you have done me a favour today. I think i will spend my money more wisely and take control by motivating myself and putting some effort in!
As women are prone to Osteoporosis, it is further dangerous to them as they are losing valuable nutrients beneficial to them in menopause. Do they not understand that this is real peoples long term health they are playing with?
In our industry we are here to help people, not hinder their long term health. A very interesting debate. I stopped ballroom and Latin dancing a year ago and my body gained a bit of weight, i firmly believe in exercise and eating right to weight loss. All i wanted to find out is if these products contain MSG and sadly they do.
Thank you Mike, had it not been for this blog i would not have the knowledge i have now.