herbalife scams in british columbia

News continues to trickle out about how the Herbalife scam is affecting victims of the MLM program in British Columbia.

We don't have as many investigators on the ground in Canada, but we want to be sure to cover this well.  If you have info we should know, please send it along and we'll work with you to publish the truth.

isagenics dangerous

Isagenix is dangerous to your health, like many unregulated supplements sold by Multi-Level Marketers (MLM).  And unfortunately the trush about these dangers is buried online because MLM promoters have a vested interest in posting so much propaganda fluff that it is hard to find out the negative truth.

That is what this blog is for, as well as our sister blog Isagenix is a Scam.

In a recent post on Isagenix is a Scam, we shared the latest verified reports of dangerous side effects of Isagenix.  I hope you will read it before taking risks of using Isagenix.

Not again... another "Christian based" MLM gig ....

Heads up: another "Christian based" MLM gig .... is yet another thread about something I find incredibly ironic and sad.  Even thought MLM seems to contradict the teachings of Jesus as I understand them from the bible (e.g. though shalt not worthip false idols, though shalt not steal,....)....MLM programs seem to appeal so many evangelical christians...apparently the wrongness of bringing evangelical zeal to the sale of overpriced and sometimes dangerous junk to loved ones is overlooked....

I have to ask you again:  would Jesus have approved of Isagenix, Herbalife, or Multi-Level Marketing in general.  A sane and thoughtful person would probably say no....

From High Energy Clubs to Dashed Dreams: Herbalife Tales

From High Energy Clubs to Dashed Dreams: Herbalife Tales: From High Energy Clubs to Dashed Dreams: Herbalife Tales

A pretty damning investigative report from CNBC about the destructive impact of MLM on the lives of hard working people.  Must watch if you don't know enough about why MLM businesses are a scourge.

Is Herbalife a Scam? Does a Duck Quack?

The battle of word between Herbalife CEO Michael Johnson, who audaciously claims he's shocked...shocked...to have heard for the first time ever the Multi Level Marketing is shady and often associated with scams....and two dueling hedge fund titans continues to play out.  Tracy Coenen has some of the latest coverage, including videos, on her Fraud Files Blog.

As a longtime critic of MLM, I find it interesting that while three wealthy bastards debate whether a huge corporate is a good investment or not....the public is finally hearding more about the dark side of MLM.  In my book, whether Herbalife stock will crash or thrive is pretty irrelevant.  What IS relevant...extremely relevant...is that Multi Level Marketing in general provides a vehicle for victimization of millions of people per year, at a cost of billions of dollars to mostly poor and middle class Americans.  And this is not to mention the fact that MLM is even less regulated, and even more destructive, to the lives of hundreds of millions of people worldwide.

"Victimization?" you may say?....."isn't that a strong word?" Yes it is, and I acknowledge that some people suffer more than others due to the existense of MLM stuff in their lives.  But honestly, if you look at the reality of the situation, the BEST CASE SCENARIO with MLM is that people pressure friends, neighbors, and loved ones to do something that is aganst their best interests, by pretending it is a good idea, in a desparate effort to monetize those relationships.  That's best case scenario when it comes to MLM.

From there it gets worse....including people who never make a dime, but end up losing money bc they aren't that good at pressurinig their family to buy overpriced stuff they don't need.  And then of course people who are scammed altogether...there is a VERY small line between MLM and pyramid schemes..

I hope the MLM story gets more people to look at those near to them and ask:  what is he involved in, and is it really a good idea?  What is she trying to sell me, and what are her motivations?  Is this all such a good idea? 

Why did Consumer Affairs call Isagenix the "Worst Diet" based on their research?

I'm trying to piece together the marketing and sales messages from Isagenix with this from the a consumer-protection organization, Consumer Affairs.

Consumer Affairs Magazine slammed Isagenix for making what they consider the "Most Outrageous Claim" in marketing the IsaCleanse product and concept   


....and continued by saying:


"Isacleanse The detox idea is seemingly the perfect scam -- it sets up a problem that doesn't exist, then provides a solution.

Ads for Isacleanse warn of toxins building up, clogging organs and deteriorating the body -- unless regularly detoxified. (This doesn't happen, as the human body is naturally self-cleaning.)

A 'healthier, leaner body' is promised in 30 days through ingesting a medicine chest full of Isagenix cures including IsaFlush for 'regularity,' diuretics, aloe pills, vitamins, ionic trace minerals, electrolyte drinks, Isalean Shakes and herbal teas.

For those who are frankly more interested in wealth-building, Isagenix turns a neat trick; on the same web page it alternately pushes a get-rich-quick scheme for deceiving others about the need to detoxify.""

Isagenix fraud

Isagenix fraud: "Three ways to identify diet fraud and quackery:

- Claims large rapid weight loss, often 'easy, guaranteed and lasting.' (Weight loss should not exceed one or two pounds per week.)

- Relies heavily on undocumented case histories, before and after photos, and testimonials by 'satisfied customers.' (Paid models are often used in photos, with testimony written by marketers.)

- Claims to get rid of 'cellulite.' (Cellulite does not exist; such claims are a red-flag-warning of misinformation.)"

Isagenix Scam?

Isagenix

Is isagenix a scam? - Clutch Fitness

Is isagenix a scam? - Clutch Fitness

A (rare) critique of Isagenix Online

As often observed on this blog, self interest prevents most online content about Isagenix from being fair balanced or accurate.  The people with the most to gain or lose are those who make money by pressuring family friends and acquaintances to buy the product, whereas those with doubts have little to gain by sharing facts related to the risks or innaccuracies of the Isagenix marketing agenda....

A rare exeption is this blog post @ http://seamedicine.blogspot.com/2010/03/critique-of-isagenix.html

"I went through the website (http://www.isagenix.com/) and watched the promotional videos. There is so much to criticize that I hardly know where to start. It"s all misinformation, unsupported claims, testimonials, and money-making ploys.

I couldn"t find a critique of Isagenix on the Web, but that"s not surprising. No serious medical scientist would take it seriously enough to bother about it. And it"s basically all been done before; it"s just a slightly new wrinkle on an old scam."

The rest of the post can be found here.....

Is Isagenix a Waste of Money?

According to this post, it might be:

http://www.aeonity.com/frost/isagenix-complete-waste-time-money

Other inputs?

Does Isagenix Work?

Not for a single person, but in consistently in a scientifically proven and logically explainable way?

Please inform.

Can Dieters lose the same amount of weight with less cost and risk?

Jesus Christ and Isagenix

How might that have affected HIS legacy?

Would Jesus Have Taken Isagenix?

In between his primary mission, would he have been a Product Evangelist?

Would he have respected those who found and run MLM programs and companies?

When I first heard this question I thought it was a joke...now I think it helps me step back, look at the bigger picture, and put things into greater prespective.

Products marketed via Pyramid Marketing (Schemes) remind me of cults...

They remind me of the second commandment ""Though Shalt not Worthip False Idols" like the Golden Calf..."

They Remind me of Exodus, starting with Exodus 32:4:

GOD'S WORD® Translation (©1995)
After he had worked on the gold with a tool, he made it into a statue of a calf. Then they said, "Israel, here are your gods who brought you out of Egypt."
...
GOD'S WORD® Translation (©1995)
Early the next day the people sacrificed burnt offerings and brought fellowship offerings. Afterward, they sat down to a feast, which turned into an orgy.
...
New American Standard Bible (©1995)
Then the LORD spoke to Moses, "Go down at once, for your people, whom you brought up from the land of Egypt, have corrupted themselves.


GOD'S WORD® Translation (©1995)
They've already turned from the way I commanded them to live. They've made a statue of a calf for themselves. They've bowed down to it and offered sacrifices to it.,,,


GOD'S WORD® Translation (©1995)
The LORD added, "I've seen these people, and they are impossible to deal with.


GOD'S WORD® Translation (©1995)
Moses turned and went down the mountain carrying the two tablets with God's words. They were written on both sides, front and back.


GOD'S WORD® Translation (©1995)
The tablets were the work of God, and the writing was God's writing inscribed on the tablets.

Would Jesus SELL Isagenix to those who trusted HIM?

What would Jesus Say about Isagenix?

What is Multi Level Marketing and Why is Isagenix Sold that Way?

Isagenix is sold via Multi Level Marketing program aka MLM.  This post provides more information about MLM programs so that you can understand the implications of this.

For more about why products like Isagenix are sold this way, see our additional post on this.

Multilevel Marketing (MLM) is also called “Network Marketing (NWM)”, “Direct Selling”, “Personal Retailing” and/or “Consumer Direct Marketing” is:

•Network of distributors that sell retail products through nontraditional distribution systems; is a product-based distribution system.

•Pyramid infrastructure based on recruiting individual distributors of goods and services.

•Recruitment-centered, rather than product-centered.

•Products that are sold through MLM networks most likely cannot be found in traditional retailing markets or sectors.

•Products are mostly beauty and health related; (high-priced “potions and lotions”) lotions, skin care, vitamins and health drinks.

•MLM has expanded into service related industries (i.e. Prepaid Legal Services, ACN, Primerica Financial Services).

The History of  Ponzi Schemes, Pyramids and Multilevel Marketing (MLM)

•“Ponzi scheme” began in 1920’s by Italian immigrant named Carlo “Charles” Ponzi. Thus emerged the term “Ponzi Scheme.”

•This scheme was based on paying the earlier investors with the incoming money from the new investors.

•The scheme was not based on actual earnings.

•Although cash rich, Ponzi was not wealthy.

•This scam was financially insolvent; robbing “Peter to pay Paul”

 Ponzi took in about $200K per day; paying out 50% ROI to first investors.

•In 1934,Ponzi was later arrested, convicted and deported back to Italy.

•Other Ponzi schemes examples: chain letters and pyramid schemes.

•From 1930’s to 1970’s more Ponzi/pyramid schemes grew in U.S.-classic 1-2-4-8  no-product pyramid schemes (“The Airplane Game”).

•MLM (product-based pyramid scheme) emerged in the late 40’s; Amway Corporation founded in 1949 by Jay Van Andel and Richard DeVos; selling soap door-to-door and recruiting distributors.

•In 1979, FTC Judge ruled that Amway was not a pyramid scheme, assuming “retail rules” were satisfied (10 retial customers, 70% sold or consumed before reorder, refund provisions).

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Key Attributes of a MLM Scheme

1)Recruiting of participants is unlimited in an endless chain of empowered and motivated recruiters recruiting recruiters.

2)Advancement in a hierarchy of multiple levels of “distributors” is achieved by recruitment rather than by appointment.

3)Ongoing purchases (products, sales “tools” and etc.) by distributors are encouraged in order for them to be eligible for commissions and to advance to the business (“pay to play”).

4)The company pays commissions and/or bonuses to more than five levels of “distributors.”

5)For each sale company payout for each payout upline participant equals or exceeds that for the person actually selling the product creating an inadequate incentive to sell the products directly and an excessive incentive to recruit.

  

Common Behaviors in MLM Marketing:

•Mulitlevel Marketing (MLM) is a direct descendant of Ponzi/ pyramid schemes.

•MLM’ers typically operate as independent contractors, not entrepreneurs.

•Many MLM’ers do not acquire a tax ID to operate as a legitimate business.

•Usually prey on people’s fears during difficult economic times.

•Notorious for deceptive practices in recruiting individuals.

•Utilizes a complex web of deceptions in recruiting participants- - For example, refusal to disclose upfront the firm’s name and pyramidal nature of the scheme. their firm’s name up front.

•Misrepresentation of past and potential earnings is common in recruiting.

•MLM performs well in the Bible Belt, Sunbelt, Intermountain West,  California and Northwestern U.S.

•MLM’ers exploit personal relationships: friends, family & business associates.

  

Who are these People Who Join Multi Level Marketing Programs?

A lot of research has been done and the findings are sad...

 

In one study, Small Business Development Center (SBDC) counselors characterized participants of MLM as:

•Somewhat gullible, socially unable.

•Not very educated about business.

•High-risk dreamers in search of the entrepreneurial “golden fleece.”

•SBDC refuses to counsel anyone involved with MLM as an entrepreneurial venture.

•SBA refuses to finance any enterprise characterized as MLM (SBA 2006).

 

Behavioral and personality differences between

MLM’ers and real entrepreneurs are:

•Lack of education;

•Lack of business experience;

•Lack of innovation skills;

•Motivated by symbolic aspects of success such as money, lavish lifestyle and identity

•Willingness to take on high risk concerning questionable endeavors.

•Entrepreneurial businesses are product/service centered, not recruitment-centered.

At the end of the day, MLM is a specious business model with many risks and limited benefits.  Key things to know:

•Highly labor and time intensive; recruiting is difficult.

•99.9%of all people involved in MLM firms never earn a profit.

•High attrition rate: more than 50% who join MLM quit within 1 year;

•SBDC counselors refuse to assist any client involved in MLM;

•SBA refuses to finance any individual or business that is MLM.

•Often sell commodity-based products; that can purchased through traditional supply chains.

•Too recruitment-centered, not product-centered.

•Unethically exploits and strains personal relationships;

•Products are very difficult in terms of brand loyalty;

•Suffers from bad public image. People have strong distrust of MLM.

•MLMer’s are typically “subcontractors”, “salesmen” not entrepreneurs.

•MLM, aka “Personal Retailing”, does not work in this “Wal-Mart Era.”

•MLM is not technically entrepreneurship.

 

Why is Isagenix Sold Via Multi Level Marketing?

Q: Why is Isagenix Sold Via Multi Level Marketing?

A:  Multi Level Marketing is just one way to sell products and it is an usual method.  The majority of products including nutritional supplements are NOT sold via Multi Level Marketing (MLM).

MLM is generally considered a less reputable way to sell products, because many products sold via MLM are of low quality.  It is often called "pyramid selling" because it has the same structure as a pyramid scheme. Some MLM programs sell products or services of now value at all, in which case they are literally pyramid schemes where the "product" is just a vehicle for the scam.

It is therefore worth considering what factors would cause a company to CHOOSE to market a product using MLM?  Why not just sell like most high quality products are sold and distributed:  on the shelf of reputable retailers.  That's where most consumers buy products.  Why miss out on that distribution channel, which by the way is much cheaper?  The cost of distribution via retail outlets is lower than the cost of distribution via MLM, but the way.

In a nutshell, there are a few reasons a rational business would choose to market the product via MLM.  Multi Level Marketing is needed by companies WHEN:

1. They NEED people to pressure people they know including friends and family to buy the product.  It won't just jump off the shelves in a retail store. In a MLM program, people have a financial incentive to convince people they know to buy the product, leading to aggressive "product evangelism."
2. Respectable retailers WON'T put the products on the shelves, because they don't want to associate the product with their brand and reputation.  For example, when Whole Foods chooses to sell a certain product on their shelves, they are essentially endorsing the product as good quality and worth buying.  If consumers discover later that it's worthless, they will blame Whole Foods, which is why some products just can't get sold in stores....which makes MLM a better option.  

So MLM is an expensive way to distribute products, in the sense that a large percentage of sales revenues are paid out in commissions.  But if your product "doesn't sell itself," if it won't jump off the shelves at Whole Foods (or if Whole Foods won't even stock it) then MLM becomes the right option.

As a result, the type of product available via Multi Level Marketing tends to be lower quality, less reliable, and less reputable.  Some may do what they claim....many don't.  I hope the summary has helped you understand some of the reasons why this is.

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Brought to you by Isagenix Fraud Education