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? 

MLM and Small Business Saturday -- Sunday Thoughts

I woke up this morning even more certain than before that MLM (Multi Level Marketing) is holding our country back in so many ways: socially (destroying families and friendships), economically (wasting people's time on things that don't generate real value) and ethically (allowing thousands of people to gamble, and become victims of, legalized pyramid schemes.)

With yesterday's Small Business Saturday event, the emphasis was on "shopping small business" -- that's a great message. I just hope that small business is not an MLM neighbor or family member...

MLM Nutritional Products - Why Aren't They Selling this at Whole Foods?

Why are CERTAIN Products Sold Via Multi Level Marketing? How do the makers decide?  The Answer Tells you a Lot You Should Know Before you Buy Them...

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.

Unregulated Supplements Like Isagenix Could Harm Your Health

Unregulated Supplements Could Harm Your Health | Healia Health Blog:

"According to a story in Consumer Reports, many of America's dietary supplements are also packing carcinogens and kidney- and heart-damaging contaminants.
This information comes from an article in the September issue of Consumer Reports. The article lists 12 different supplemental ingredients associated with negative health consequences. These include bitter orange (an ephedra-like supplement associated with heart attack and stroke), germanium, coltsfoot and colloidal silver, which has been marketed as an immune system booster but is known to cause argyria and kidney damage."

cramps in stomach from isagenix?

Just got a report from a source about another case of stomach cramps shortly after taking IsaCleanse...doctors increasingly concerned with the use of unregulated supplements.

According to my contact who reached out via phone, she began the Isagenix Cleanse program on Wednesday, and by Thursday she began to feel lightheaded and nacreous.  By Friday she was experiencing cramps she described as similar to when she was pregnant!  Don't get me started about the risks of taking Isagenix or any unregulated supplements during pregnancy.  Until it is proven otherwise, assume Isagenix is not safe during pregnancy!

Anyways, she says the pain was so bad she visited to the emergency room.  They advised her to return to normal food, stop taking Isagenix, and put her on liquid diet while she was in the Emergency Room of the Hospital.

I wish US law and human nature would give people an incentive to create something more valuable and less risky to health than Isagenix and the thousands of other spurious untested and dangerous supplements.

A Cure for Nutritional Scams? QuackWatch

If you are concerned about the lack of honest information about Isagenix or any of the thousands of other products making nutritional claims, being sold via hard-sell marketing, but lacking good factual proof that they work, you are likely to appreciate the hard work of the site QuackWatch(sm).

Let me know what you think