Join Date: Mar 2013
Location: West Wales, UK
Vehicle: Gone: 2013 SLK 55 AMG
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herbalife is a lot like amway- the products are really secondary to the multi-level marketing business model. The business model follows a pyramid structure where the more levels of people you get under you in that pyramid, the more money you make.
The theory of MLM programmes is that if you recruit 2 people, and they recruit 2 people each and they recruit 2 people each then the number of people at each level goes: 1, 2, 4, 8, 16, 32, 64, 128, 256, 512, 1024 etc. with 3 people each time it's 1, 3, 9, 27, 81, 243, 729, 2187, 6561 etc.
When you start talking about number growth like that, you only need small percentage revenue share of the products being bought/sold by those people for the revenue to mount up. Which would be nice if it actually worked that way in real life - but the hope is finding people who will really work at building the network below them, hence benefiting those who introduced them.
the later you come to the party, the harder it is to find new people - eventually things get saturated, which is the flip side to the exponential nature of pyramids. at least it isn't like the old water filter pyramid schemes where you had to buy the stock to resell, and you'd be left seriously out of pocket if you didn't.
A friend of mine made a great deal of money from herbalife in the US, but she got in early. I've known people try the same kind of business model with amway - some made modest money, but most didn't.
Gone: SLK 55 AMG (2013) Iridium Silver / Bengal Red / Black Ash