“Your success is only limited by your own imagination and your hard work,” Mark Hughes, Herbalife’s founder said in one of the Herbalife distributions’ meeting in 2000. Herbalife is a global nutrition company and sells weight management, targeted nutrition energy and fitness personal care products. Herbalife uses Multi-level marketing model to sell the products to relative family members and friends. Even Herbalife begins trading publicly on New York Stock Exchange in 2004 and now opens in 93 countries, Herbalife’s history tells a tortured marketing tale.
The first Herbalife product sold was in Hughes’s own car in 1980, in Los Angle. In order to enlarge Herbalife’s selling network and lead Herbalife to become an international …show more content…
The plan was developed by Herbalife’s first distributor and founder, Mark Hughes. He believes that his plan pays a high percentage of product revenues to members and distributors in the form of retail and wholesale profits, royalty, and bonus income and incentives. Herbalife sales and marketing plans seem exceedingly attractive to many people; therefore, more people want to join Herbalife. Due to the popularity, a serious problem emerged: Pyramid Schemes, which is a form of investment in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones. The issues that surround Herbalife are common for MLM companies of the same sort. For example, the MLM aspect of Herbalife comes close to being a pyramid scheme (instead of being a legitimate MLM model), especially if the distributors are focusing on the recruitment side of the business rather than the selling of the …show more content…
He and his team paid civil rights organizations $130,000 to collect names of people who claimed that they were victims of Herbalife. Ackman has also provided money to individuals to run an anti-Herbalife rally. Ackman says that his goal isn’t to make a profit, but to help those who are being wronged. Brent Wilkes, a member of League of United Latin American Citizens, says that “It’s not the Latino groups that are helping Bill Ackman… Bill Ackman is helping the Latino groups…” (Schmidt, 2014). But what is wrong is his approach to this goal. When we zoom out and take a look at what he did. We mentioned how Ackman paid civil rights organizations money to collect names of people who were victims of Herbalife. But what was discovered was that the Nevada Attorney General found some issues with the letters. It was said that a few of the letters were identical and that some of the Hispanic community leaders couldn’t identify any of the Herbalife victims by name. This shows that the data of the names weren’t