The Truth about the Herbalife Investigation

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The Truth about the Herbalife Investigation

Herbalife investigation

This is my opinion on the Herbalife investigation and what is going on that you need to pay attention to.

If you want to know how this might affect you and your business, watch this video!

Full Disclosure

I am NOT a Herbalife distributor but AM a supporter of the network marketing profession. I have been full-time inside network marketing as a trainer AND rep since late 2009.

That being said, I have had the chance to meet a LOT of people associated with Herbalife and have always got the impression from these quality people that it is a great company. From the legend of Jim Rohn to a someone I learned a lot from, Larry Thompson, I fully believe this company has impacted a LOT of lives.

What’s inside the below video:

Inside the below video I share my opinion on the Herbalife investigation and also why calling Herbalife a scam or pyramid scheme is just plain dumb (you might like my analogy). I also share what everyone in health and wellness companies need to be careful of and why you SHOULD be rooting for Herbalife to pull out of this without having major issues.

My Thoughts on the Herbalife Investigation

Do you agree with me or not? Please leave your comments down below and if you think more people need to be aware of what is going on, feel free to share this on social media.

To Your Abundance!

Did This Help You? If so, I would greatly appreciate if you commented below and shared on Facebook

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Ray Higdon’s Sales and Marketing Blog
Skype: ray.higdon

“I Teach You the Marketing, Mindset and Sales Strategies to Make More Money and Follow Your Passion!”

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  1. says

    The analogy and comparison between a rep and a college student who does nothing is absolutely perfect. I hope Herbalife can pull through, they have some really great products and they have set a standard for the industry as a whole. If Herbalife goes down then we can probably see huge changes in the Direct Sales industry that aren't necessarily good.

  2. says

    Great insights Ray!! I agree with you and think it is sad that so many people have allowed the pharmaceutical companies to have such power over them that we have to be careful about how we phrase what we say about how we have helped people. We have to dance around the truth with our words to remain effective and stay in business.

  3. says

    This is so cool Ray. I love how you support the entire industry and you are never negative about anyone even if they are. This profession sure could use a lot more leaders like yourself in it!

  4. says

    I am not in MLM or Network Marketing, so I clearly have no dog in the hunt. My take is that ABC News should be investigating the travesties that Big Govt has done to citizens. Every year, over 100K people DIE from drugs approved by the FDA! Where is ABC or any other mainstream "news" media on that story?

  5. says

    Love the analogy of college student, love herbalife. Solid company, solid training (yay Jim Rohn!) and solid products (kinda expensive but stopped me from getting sick a couple of times.) I've never been a rep of herbalife but I don't mind supporting it by buying the product and rooting for it when such negative things hit a company which has done nothing to deserve it.

  6. says

    Ray, I think it's great that you are speaking out about this. First of all I believe anyone in the industry has a responsibility to be an ambassador to the company and the industry,after all its what's paying you your checks. No one can control rogue reps who make unvalidated claims for whatever reason. It's a 100+ billion dollar industry and any negative repercussions on Hebalife will spill over into the entire industry. What other industry has ever given average people a chance to do above average things. If a billion dollar company can be brought down then who's next because this witch hunt will not stop at Herbalifes door.

  7. Kit Elliott says

    Here's what I think:

    1. A billionaire places a million dollar bet speculating that this company will fail.

    2. He stands to win millions if the stock hits a certain amount…

    3. He goes on TV and a national media campaign calling Herbalife a Pyramid Scheme.

    4. That sets off the media and the FTC red flags… The witch hunt begins…

    So the stock tanks….
    Billionaire reaps the rewards…
    Investigation clears Herbalife.. (hopefully)

    Business back to normal. The real problem is that people can profit when a company fails, and when they go on a media blitz, for me, that's stock manipulation.

  8. says

    Hi Ray, I am a Herbalife Distributor and I love the products. I don't push people and only tell the my own testimony or others with their permission. Now saying that I can not watch the video as it skips right to the end. I have had this before with your videos. I also enjoy what I do get to see. Thanks so much

  9. says

    Kit, this reminds me of a story I heard from Mark Yarnell in an interview a few years back. He told the story of when NuSkin went through hell with the Michigan state attorney general. Basically the guy running for governor at the time went on the Barbara Walters show (I think), made false accusations against NuSkin, won the election, then apologized later for his false accusations. It was all a ploy against NuSkin and a total political deal. Bunch of hogwosh. FTC needs to go take a hike and leave them alone!

  10. says

    I couldn't have been happier to see this post!! "Its like going to school and Never Showing Up to Class and Expecting To get A Job in that Field" BOOM

  11. says

    Hi Ray! When I first heard of this on the news, my exact words to my hubby is "that is a bunch of crap" People are just ignorant to what they don't know or understand. Herbalife has been around way to long to not be in compliance. Oh, and btw I am not an Herbalife rep….just support the industry♥

  12. Kristy Brooks says

    Thank you so much for your input. I am an Herbalife distributor and seeing so many negative things, especially from that man who only wants to win a million dollar bet is sickening. In any business (which is what Herbalife is) you make what you put into it. I joined the nutritional company not to become a millionaire, but to get healthier in this no so health country with the "Great American Diet". This nutritional company helps people learn how to eat better to achieve better health. It's not a secret that eating better helps to resolve many health issues as well as routine exercise. That is what they promote and strongly believe in. This company helped me learn how to take control of my health which is appreciated beyond imagination. As for that recent broadcast, in ANY business you will have people that hurt companies because of their actions and that is unfortunate. I believe in this company and stand by them as they helped me greatly in my pursuit of health and wellness. Again, thank you for the support.

  13. Gary A. Tucker says

    Thanks Ray for covering this issue. And thanks for your comments about the dangers of mentioning a product and disease in the same sentence. Sad but true.

  14. Kit Elliott says

    Did I say, "Million Dollar Bet"? It's a "BILLION DOLLAR BET!" This guy has placed a billion dollar end of the year wager against Herbalife. If he loses a billion, he states that he will start giving his millions to every Congressman who will agree with him. And when someone loses a billion, they will lose everything to gain nothing. #pride #ego

  15. Debbie Allen says

    It was actually a $1 billion bet ! Which is probably why he's willing to throw millions into his "campaign" !! It is really an assault on the entire industry, and thank you Ray, yes, it's exactly when we should all be standing together. Hopefully "the short seller" gets what he so richly deserves ..!!

  16. says

    Super good advice. I really know nothing about Herbalife. However, I do concede that if it can happen to them it could happen to my company. We are strongly cautioned about making claims that are not substantiated by testing from our company. Many things have been help but we are limited in making those claims. It just might not work that way for you.

  17. Jennifer Arceo says

    Yes, it is a shame that the MLM Health Industry are gag ordered to not state any claims in improving one's health the purely natural way, yet subject them to harmful legal drugs that is supposedly gets them better. Then why is it, that once that person starts on a drug, ends up taking another than another due to the side affects from long term use of the first drug in the first place? Go.. Figure???

  18. says

    It is truly sad that some do manipulate the media with incorrect information & how some profit from this, & truly sad that many in our industry will go out and talk about how great the product is, & it is, but not be educated enough to realize that they cannot make claims, even if it was true. We have some in our company who have had tremendous effects from our product, and go on video saying such things as what it did for them, when it violates the law. What is even sadder is that when they are told, will argue their point saying that it does such and such, and will repost videos of testimonials that are in violation of the law. I will say one thing, you have gotta protect the reputation of the company you are in, in order for the company to last. I hope Herbalife pulls through, because if not, investigations will go out to many other companies in the health & wellness arena!

  19. says

    Well Said Ray, so many people immediately jumped on the negative Herbalife bashing band wagon without even considering the ramifications that this could mean for our industry as a whole. Thank you again Ray for being one of the good guys….

  20. says

    Ray, you are right on on this one. Keep on top of t his one it is in the best interest of all of us in network marketing that Herbalife stays in business. If it doesn't then it will be t he beginning of a witch hunt that will affect all of us and our respective companies. Training and professionalism is the insurance we need more than ever now. Keep up the good work.

  21. says

    a pharmacist, and MLM rep… disappointed again, and in total agreement with previous comments regarding witch hunt(s) and hogwash, (speaking of which, did anyone else notice that soap bars are shrinking in size too?)

  22. says

    Well said. I am with a health and wellness company and I have been trained from the beginning to stay away from the word “cure”. I have passed along this coaching to all of my team.
    Slinging mud on Herbalife or wishing them anything but success is bad business. For those who would wish their demise, ask yourself this question, who’s next?
    Thanks, Ray!
    Aloha! Al

  23. Candy Paige Murnan says

    this is the first video of yours I have watched but I thought it was GREAT! Great insight

  24. Lloyd Waters says

    Thank you, Ray. My company also is in the health and wellness arena. When I present my product testimonial, I am able to share my personal experience and I do tell people what conditions I am no longer taking pharmaceuticals for. I clearly state that it is my personal choice, based on how I feel and my own information. I DO NOT say that I have been “cured”.

  25. Becky Teston Schmackpfeffer says

    I am in a network company and love you for standing up for herbal life. I don't sell it but understand the chaos it can cause.

  26. says

    Very well said! I’m in health and wellness as well and the company I’m with does a great job training on what to say and what not to say. Everyone is different therefore the product will not have the exact same result. Things can be misinterpreted and people get the wrong idea. As you said its a witch hunt and a lack of education on the industry. I’m not with Herbalife but pulling for Them. They have been around a long time and obviously good products. Herbalife is not a pyramid scheme. For people that say they are a pyramid scheme, have they looked at the structure of corporate America?

  27. roy jennings says

    Crass stupidity & strategy by journalists who are looking to create a story from nothing. Every so many years someone attempts to shut a network marketing distribution company down. This is often because someone joined the network, did nothing and expected to be rich in 30 days!
    There is a growing trend in the modern world of cynical people who want to pull any success back to their own mediocre level. Journalists are like some teachers. Never had a proper job yet like to tell the world how to run their lives.
    There has never been a statue erected for a cynic

  28. Tamara Roe says

    I agree Colleen! Ray Higdon is worth subscribing to – or do you already? Every video is less than 5 minutes – and they are all so good!

  29. Karin says

    WELL SAID RAY! Thanks for putting that out there. Absolutely agree, MLM is a community – different houses, same neighborhood. Cheering them on and hoping this helps people both inside and out of the industry get a bit more educated :)

  30. says

    I completely 100% agree with you! I honestly love Herbalife. I am not a part of it but I have in the past ordered their products and I was a rep at one time with them. At that time though something happened to me that I had to stop being a rep but I have thought about joining them again. Don't got anything against them. It's truly a great company!

  31. Frances says

    Ray, thank you again for your positive attitude. You always seem to be able to find a good lesson in everything you discuss, no matter what it is. I appreciate your stand on this matter. Yes, we must think of the ramifications for MLM down the road.

  32. says

    Thank you Ray, for speaking out about this. Folks really respect your opinion, I’m sure the Herbalife Company and reps appreciate it. To be honest- At first I didn’t realize what Herbalife was being investigated for and I thought to myself – hey, an opportunity to recruit and help folks move to my company… But now I realize there is really no basis for the investigation except for what one rep out of thousands said. I feel for them and wish the very best for their reputations and longevity with Herbalife. I’ve learned a valuable lesson on what not to declare about my products! Just use testimonies!

  33. says

    I agree completely. That is the problem with having a “news” media that puts agenda before truth.
    Keep up the good work Ray.

  34. Deborah says

    Thanks Ray for bringing this to issue to a different – true light. Herbalife was my first experience with network marketing. I was a product of the products and enjoyed my positive results. Herbalife has been investigated in the past and they will come out of this bigger and better than ever.
    I am praying for the company and will encourage every Rep. to stay strong and ride out this storm. They will survive!

  35. says

    Important Vid Ray. I have been involved in Network marketing for 28 years. Nothing has changed. Australia had these ignorant people with the same reports in the 90's. Must be slow news days

  36. says

    Great, intelligent and full of heart as always.
    Thanks Ray, thanks for your contribution, you really make the difference out there.
    Bless you

  37. Paula Doss Walker says

    Thanks Ray. We as an industry and profession must pull together and stand up for each other. There are more than enough people to build all of our companies. Let's buy from and support each other. The more our networking and direct sales professions gain credibility the stronger we become as an industry.

  38. says

    I love this Ray!!! Thank you for correcting my perception on the situation!!! I do want to ask; If there are independent studies related to your wellness products ingredients that are making huge strides in helping with diseases, is it still wrong to make people aware of these studies? Also, what if one of your health and wellness products were put into a pharmaceutical study, is it wrong to share the finding of that study? I respect your knowledge, thanks!!!

  39. Wade Yamamoto says

    That was a great video by Ray Higdon! If you have been to any event that our doctors are there, they will never mention the product and diseases in the same sentence like Ray stated. They will however mention the INGREDIENTS having tons of studies and research done. That's why whenever I'm in any setting whether large group, house meeting, or even 1-on-1, "the ingredients in" is always mentioned before the name KYANI. It protects us, but more importantly, it protects the company…the company that pays us so incredibly well. :)

  40. says

    Thank you a ton, Wade Yamamoto!!! I can't wait until I get to meet the doctors face to face!!! I'm very glad I had the great honor of meeting you as well!! This is exactly what I needed to help me properly represent our great company and even greater products!!!

  41. says

    A rising tide lifts all ships! We all need to be warriors with Herbalife partners. All of our businesses whether it's Network Marketing or not need to stand against these attacks just preying for money. It's just the same to take prayer out of schools! Look what has happened with all of the shootings. Media should stand in their own mirror and investigate their own motives as well as at first investigate the person or organization making the claim against another before they run out on thin ice!

  42. Charles says

    I am Not In Herbalife or MLM & I do Not Support
    This Short seller Trying To Drive Herbalife
    Stock Down…What I Would Suggest to The People
    in Other MLM co To Buy Shares in Herbalife in support
    Because it Could Effect All in MLM Business & also Buy Their
    Products If You do not have Similiar Products..
    Best to all In MLM

  43. says

    Hi Ray

    Great post. I agree with the point you expressed. Here’s my “two cents”….

    Although most, if not all, companies state that distributors are INDEPENDENT CONTRACTOR, in some cases what distributors say or do might be construed by the courts as “acting as an agent” of their MLM company. I would suggest that MLM companies should protect themselves by doing the following:

    1.) When a new distributor is enrolled, the welcome email from the company should include in bold text warnings about making income and medical claims, the consequences of breaking of breaking the “rule” and reference it in their policies and procedures.

    2.) The company must act appropriately on any breaches brought to their attention. This is crucial because should charges be brought on the company by regulators in a situation where the company was not aware of the breach by the distributor(s), the company would be able to demonstrate to the courts that it is their CUSTOMARY practice to take corrective action WHEN THEY ARE AWARE OF THE BREACH.

    3.) The very first thing the new distributor should see as he/she opens their distributor kit is a flyer with just a headline type warning about making medical and income claims.

    4.) As added protection the company might also consider including the headline type warning mentioned in 3 above in their various newsletters.

  44. David Reed says

    Hmmm, interesting. I have not seen the ABC news piece but read about Bill Ackman’s campaign against Herbalife.

    Quote from Forbes:

    “In late 2012, Ackman said that his Pershing Square hedge fund had bet $1 billion that Herbalife’s shares would collapse because the company was operating a pyramid scheme.”

    “Ackman retreated a bit in the fall, restructuring his short position in a way that left his hedge fund less vulnerable to a potential short squeeze, but he remains committed to betting against Herbalife in a substantial way, saying he will go to “the end of the Earth” to defeat the company.”

    I read this and thought. He bets a Billion (with a B) dollars that Herbalife stock will fall, and then creates a witch hunt calling it a pyramid scheme.

    Does anybody else see this has nothing to do with Herbalife but is just plain pure GREED. The guy is sick, narcissistic and probably a psychopath who does not care about people; just how much money he can make. In his mind it is only an opportunity to make a lot of money.

    Reminds me of in one of the “Pirates of the Caribbean” movies, the Captain standing on his ship as it is sinking with a befuddled look on his face saying “it’s only business”.

    What makes me mad is nobody is going after Bill Ackman (probably because he can destroy anybody with his Billions) or at least help people wake up and see it for what it is.

    It is people like Bill that creates the illusion that all people with money are evil. I believe that most are good because it is hard to earn it and/or keep it if you are not of good character. It is sad however how much damage can be done in a short time by those who don’t have good character.

    Just my rant…..

    — David Reed

  45. says

    I'm a pharmacist and a networker . I totally agree with you Ray .
    Similar stories are spread from time to another by different media tools .
    Most of the time such stories are incorrect . The media are usually
    interested in spreading such noisy rumours without caring about the truth . I encoutered such situations in both the pharmaceutical field as well as network marketing . It's fishy and lack credibility in most of the times . My advice is , Don't trust the media .

  46. Carla Large says

    Great post Ray. It is true that all business professionals need to be compliant no matter what company they affiliate themselves with. Protect yourself, protect your company. Read and ask for help understanding the compliance information for every country you may be working in. Every country has its own set of rules.
    Thanks Ray!

  47. says

    Even though I am not and never have been a Herbalife distributor, I have followed this saga for a while and the origin is disgusting. A company (I'll call company 1) that specialises in gambling on the stock market has "shorted" on Herbalife shares which means they get a lot of money when the price drops. Company 1 then spread rumours and expected the price to drop dramatically. This price fall was interrupted when 2 other well known large investment groups "bet" the other way (because they are so large). They could see that Herbalife is a great company. Company 1 now stand to lose a large amount of money on their gamble and so are using their influence to initiate investigations in order create investor fear and create another share price drop. Company 1's activities are a scandal and I am surprised that US law enforcement have allowed themselves to be manipulated.

  48. Jim says

    The short sellers that are doing this are the worse type of scum on the planet, bottom feeders all of them. They try to make money by driving the stock down/destroying companies they set their sights on, and they will make any allegations to achieve their goals. The main person behind this is set to loose millions if he can’t get the stock low enough, I did see another interview with him about a year ago, total slime. I am not with Herbal Life, but I do support the company because I have friends who are distributors.

  49. says

    This is really unnerving.. and a bit scary. The truth is that ANY company can be put in the limelight and made to look bad. Take a few things out of context or talk to a few disgruntle employees and there is your skewed view. When they showed the interview of the guy talking about the woman with the tumor.. he didn’t say Herbalife cured her. The bottom line is that that people are moving towards more holistic approaches and natural ingredients and well they will help you… period. They are better for you and can change your life. They can help with issues. Your body can heal itself if given the right tools. They really really took that out of context and ran with it. The fact that people CAN make real money is MLM’s is true. People can make money in a lot of companies. Most do not. Why? Well its not the business structure, its not the products, its not the process… its the PEOPLE. If you work hard at your MLM and you work smart you can grow and grow your income. Most do not go to the top because well they just don’t work hard enough and that is the bottom line. I am not at the top of my companies levels but I am not at the bottom either. I work my business and grow it every day and I know that I will be one of the upper level distributors. NOT because of any get quick scheme..but because I work hard for it. I don’t give up and I do what I need to do. It is so crazy to me that people are so negative about MLM’s. They are a ver viable business structure. Sitting in a cubicle with now growth is a scam. Dragging yourself to an office to work your ass off for someone that could care less.. well that is a scam. Doing a job you hate.. well you are just scamming yourself there. I help people every single day. I help them with their health and their wealth and I love every second of it. This business has its problems and its obstacles but so do many many others. Yes there ARE some MLM’s that seem a little more scamish than others. There are some that do not have the best compensation plans and some that are more distributor based than client based. Doing your research and getting involved with the best company for you is YOUR responsibility. This entire Herbalife business is a shame. I actually messaged our CEO this morning to get his advice on how to address it with my teams and he was very reassuring. If you work your business with integrity, if you run your company with integrity, if you train your teams and you are honest with what you do, your business will succeed. Bad money energy will ruin you.. and Heralife had a little greed going on that was bound to bring a bit of negative reaction. Not the distributors fault and not the companies fault. This is a total witch hunt! The best way to move forward for all MLM’s is to just learn lessons and be very carful with what you say and that it is in the realm of your companies compliance documents. Train your teams.. educate them on what not to do as well as what to do. Know the facts about your business. Things like the customer to distributor ratio.. or the income disclosures. This will pass. I’m feeling for the Herbalife teams.

  50. says

    Mark Hughes was a close personal friend, and so when I joined Herbalife, the company was only a couple months old. I would later leave the company, when one of my mentors (former VP of sales, Larry Thompson) invited me to be one of the charter members of the company he was starting (Lifetronix), but Mark and I remained friendly until he passed away. And I wouldn’t have earned my first six or seven figure incomes without the 18 years of working personally with Jim Rohn, so I am decidedly not “unbiased”, even though I am no longer affiliated with, nor a stockholder in Herbalife International.

    I thank you, Ray, because your advice is, as usual, spot-on, and your observations of those who quickly jumped at the chance to attack, astute and accurate as well.

    One think I do know is that around 1985 or 86, with over 100,000 people in my organisation, suddenly Herbalife was called before the Senate Subcommittee on Dieting, and Mark Hughes was called to testify in what was one of the first witchhunts in our industry, involving the unethical FDA and other unscrupulous regulatory bodies, in the pockets of Big Pharma.

    In a single week, I lost over 57,000 distributors. The company lost a little over 60% of our sales force, and 70% of our sales volume. And while it took the greater part of two years to fully recover, when we did, we became a BILLION dollar company, and when I left, I had close to 200,000 people in my sales organisation. (I sold my position to my business partner.)

    So perseverance is the key, and just as some of the top producers in NuSkin, Amway and USANA reached out to show their support for our groups during the Senate subcommittee hearings, and some local “competitors” showed their support by attending our weekly opportunity meetings just so that we could “fill the room” while we recovered lost momentum, THIS is our chance to raise the bar and do the right thing… standing firmly in defense of ETHICAL and PROFESSIONAL business practices, independent entrepreneurism, and maybe revisiting the present MLM model, which I think is largely broken by the ease-of-entry mentality we’ve adopted in the past ten years.


  51. says

    I think its pretty obvious here what is going on (billions to made by Icahn) and I think its very unfortunate that these agencies being the FBI and FTC are actually pursuing this matter when there are so many other issues that are worth pursuing in this country that are related to so called main stream markets and the government itself.

  52. Daryll Jonnson says

    Completely agree with you – I am a Herbalife Distributor and always remember Mark Hughes and Larry Thompson say 'All good will be attacked" and it is so true. I am proud of the integrity of this company and the lives it has touched and changed and proud to be in this profession alongside many others no matter what company they represent.

  53. says

    I’ve had enough of this B.S. It’s time for the entire network marketing industry to lobby against the FDA, and work on a Freedom of Health amendment to our Constitution. A few of our country’s founders saw this coming … actually predicted this control.

    Let’s get this handled once and for all, so big pharma no longer controls or manipulates people’s health choices, and the information about health.

    Since 55% of Amway’s sales are in the nutrition category, they, too, are vulnerable. IMO, they should be backing Herbalife all the way in this fight. They certainly have the financial resources to do so.

  54. Charles G says

    Appreciate your taking a stand and giving wise counsel. I feel like most of us are preaching to the choir.
    It is good to emphasize that HerbalLife taking a contrived media black eye is not good for them or any of us. Because as you said Ray, if it happens to them it can happen to all health and wellness operations.
    Also it will flavor all network marketing (again). This looks like a case of first Liar wins strategy and someone with an agenda selling a whole community down the tube for their personal short term gain.
    Thanks for Raising the bar for Network Marketing

  55. Juan A Valdez says

    Hey Ray, I'm an Herbalife Rep, big fan love all your videos. As with most of your videos, agree with you 100% on this one. This is not only a fight for Herbalife, it's a fight for the whole industry, I would go as far as to say a fight for the whole health and wellness market. Keep up the good work, will surely pass some of your work to my downline.

  56. Juan A Valdez says

    Oh be careful, you just said the products stoped you from getting sick so that means it cured you from the flu. —–This is kind of what ABC news did to that herbalife Rep when he said the lady with the tumor started getting better after taking our products. BTW- I have a customer with a brain tumor and she also feels better after taking the products.

  57. Juan A Valdez says

    I'm an Herbalife Rep, I saw the clip where they showed the rep making the claims, it was totally edited. You can tell in the video the rep did not make a direct correlation between the brain tumor and the product. He just said the patient got better and he didn't know why. I have yet to see any video where a rep says the products cure anything. In Herbalife, most people working at the nutrition clubs are giving classes and are made to take certifications for this very reason, so when that guy was speaking you can tell he was trained and very careful not to say she got cured, all he did in the video was answer the undercover reporter to say she did get better. ABC was misrepresentation and exaggerating statements in my opinion. If they could not find something better than this in 6 months, then that it a very good job for our reps and their training on these issues. Thankfully we at Herbalife have a really loyal following of customers, the news hasn't affected my business one bit as a matter of fact I think it has given it more momentum because of all the exposure noone can stop talking about our company. everytime we come out in the news, my sales sky rocket. And the company is now growing faster than ever. So no problem there. We at Herbalife are just hoping that this short seller Bill Ackman stops acting so desperate, lose our stock and stop driving us all crazy.

  58. says

    every so offen some body desides to get notest by attecking a mlm company.Great way to get your name in the papers. waite a week or month an every one forgets it.most of the mlm companys have been there.As Ray says in order to make money you have to work it like a job every day not when you feel like it.Been there

  59. says

    It really is about ignorance and the power hold that pharma has on our lives. I also agree that independent distributors should know the products and the company compliance of those products. I’m a direct sales affiliate, and know that you can never say ‘guaranteed income’…and instead must always disclose on everything you say and do. It isn’t difficult and something we all in this network marketing industry must follow to make this industry the ideal profession that it is. Thanks for sharing Ray, as the more informative everyone becomes, the better we can make it for everyone.

  60. says

    Hello Ray

    Once again you did a nice job with your video. I’ve an Herbalife rep since 2008. First 4 years only consuming the products then since 2012 doing the bussiness. Herbalife is one of the pioneers of MLM industry and have contributed a lot with the education of thouthans people on bussines principles.
    I enjoy, treasure all your material and share what I can with my downline and upline friends, thank you.

  61. Charles says

    Actually Carl Icahn is A supporter & Very Large Stock Holder
    Of Herbalife & Has 3 People On Board…The Short seller Name Is Bill Ackman…

  62. says

    Very True Ray Higdon. Herbalife has been around for a long time that is like blaming a company for something a rep did wrong maybe by accident. We need to follow the money. Herbalife has been around for twenty years why now would they be the target of a investigation. They are trying to take away the option to go with natural products that do not have GMO's and force everyone to use Chemo,surgery and drugs to treat ailments..

  63. jake says

    The Herbalife fiasco has nothing to do with the company being a pyramid or not, clearly it is not. However, it has everything with one ass-hole shorting the stock and doing everything possible to drive the stock down. This is an unscrupulous practice that is directed towards traditional companies all the time. The facts will prevail. William “Bill” Ackman is an idiot. My money is on Carl Icahan, George Soros, Daniel Loeb and Bill Stiritz. Herbalife will prevail and Bill Ackman will lose his ass. That is my hope an my prediction.

  64. says

    That analogy is so spot on. I've been chirpin' unity of the industry for the last couple of weeks and I'm not going to stop now. We NEED a POSITIVE OUTCOME for Herbalife. I'm definitely rooting for every person that has a dream to make it in MLM, to do it the right way. HARD FREAKIN' WORK. The highest of standards. PERIOD. Great post bud. Talk soon.

  65. says

    The industry has a very high failure rate, due to what you said (lack of business savvy, not because it doesn't work). I think for a company to be considered a pyramid it simply has to make most of its money from selling the biz opp vs. products. I think that Herbalife has a pretty strong history of being a well received health & wellness product and I can't see them being shut down over this, but it certainly could make the laws tougher on companies that make false claims, or companies that do play the money game (too many). I'm not rooting against Herbalife, but I think the bar needs to be raised so that companies actually create better products and services that will attract consumers not just people looking to make money.

  66. says

    I have reviewed this investigation and I have concluded that it is not about whether Herbalife is a pyramid scheme or not, but rather about a billion dollar bet that was made as to whether or not stocks would fall to zero.

    Here is a good article about the investigation:

    Anybody who has done well in the network marketing industry knows good and well that network marketing as a whole is not a pyramid scheme or scam, but it takes people on the outside who want to ruin the fun, hopes, and dreams of their distributors to benefit on their end.

    Thanks Ray for posting this. People need to be more educated. Period!

    David Soto

  67. says

    I’m no longer in network marketing due to almost total hearing loss.. but I sure don’t blame Network marketing for it and not having success.. the FDA and other special interest groups have too big of strong hold on us. along with big pharma who deserve to be under scrutiny instead of Herbalife.. thanks for making a stand Ray.

    Bud Thompson- Sacramento, CA

  68. says

    Hey Ray,thanks for the helpful tips regarding the Herbalife investigation.I believe there is more to this whole ordeal than what we’ve been told.Some big shots on Wall Street are going to profit big from this case is one way or another. Not a big fan of conspiracy theories but this definitely smells like one. Have a good one!

  69. Biji says

    I am shocked. How can this happen in the United Sates of Freaking America? The country has laws that regulate the industry. Why can someone not call the bluff of the selfish guys who are out to ruin the livelihoods of so many reps just to make money for themselves. This is pathetic. This is what happens when the country gets run by politicians who are controlled by biased media and lobbyists representing a few industries or a few people. Sad, very very sad. I am sure Herbalife will be out of this but a lot of reps will pass through a very very harrowing time. Is there no way that Herbalife can sue ABC news? Some lawyers will be happy but the industry could come together and sue the ABC reported who published this news. Will be a good lesson for such reporters in the future. One more way could be to use Social media to stop create awareness for people to ban ABC news in all its forms. Could deter other media houses from such irresponsible reporting in the future.

  70. says

    Ray, scam is most often a 4 letter word used by lazy entrepreneurs to explain away both their failures, and their unwillingness to try something new, and to be darn uncomfortable along the way. If you can own your laziness, you’ll stop using the word all together. Love it bro, and I’m Kingg(dot)com ‘ing it, to give you even more traffic. Thanks!

  71. says

    Great post Ray! I'm not an Herbalife distributor, but am in the wellness industry. Your thoughts are spot on and your analogies are great here. Herbalife should come out clean and I'm hoping they do! Many blessings!

  72. says

    Great commentary Ray Higdon! I thought the same thing. For some reason ABCNews wants to find fault in something that actually helps peoples' lives. Love Herbalife or hate them, they are a solid company with solid products. I love your analogy to a college education too!

  73. Emily Bisignano says

    I'm not even in any direct selling company and I think it's a shame what they're doing with the company. This is just another attack on small business owners and Big Pharma's attempt to keep their stranglehold monopoly in this country going. It's insane that we consume most the world's pharmaceutical drugs in this country but as more and more people realize that isn't actually helping anything, they're going to start to turn to getting their nutrition in order to help their health ailments.

  74. says

    Way to go Ray. We all have something to lose if Herbalife goes down. And yes, as some of the comments below mention, we need to break the strangle hold that drug companies have on us and our (supposedly free) choices to make, but the real issue is the integrity of the network marketing industry as a whole.

  75. says

    I see four key learning points regarding the Herbal Life investigation:

    1.) All major media reports with a subjective bias in the manor that increases their ratings. The media "emotionalizes" the issues and then subliminally TELLS ITS VIEWERS WHAT THEY SHOULD INTERPRET from the report. As a baby boomer I recall watching Walter Cronkite who reported the facts. Glad this did not happen during the Apollo 13 mission. Those 3 astronauts would have been dead and wer raised back to life 3 times to advance a networks ratings.

    2.) New entrants into the MLM market do not receive industry education. Rather the upline teaches the "so called" duplicable process – this may or may not fit with their personality color. Here again the new business partners are told what to think and their WHY is used to "urge" the partners to do sales behaviors that may not be natural.
    And for the most part the 70-80% that drop out in the first month are labeled as "losers". They are not losers – they are people who are unique creations and for those of us that aim to be industry we should be ashamed of ourselves belittling people.
    Leaders teach their business partners “How To Think – Rather Than What To Think” Those who learn “How To Think” will build a sustainable business.

    3. The Pyramid Scheme is the key point that naysayers use to scare folks away from the MLM industry. Tim Sales Brilliant Compensation is the most effective and accurate tool to help people evaluated whether or not a MLM is a pyramid scheme. The simple that the 70-80% drop out in the first month and lose $$ feeds a negative image for the industry. Everyone in industry should become aware of what the SEC looks for to determine a "Pyramid Scheme" which is viewed as money laundering. One condition that the SEC looks for is disproportionate # of customers vs. distributors.

    4. Nutritional Remedy Claims/Learn How to Think/Learn the MLM Industry.
    Ray, I like the way that you helped folks to realize that there is a difference between what are "legal" product claims and those that are not . Legally medicine requires a prescription and the pharmaceutical industry spends perhaps billions to have studies done to demonstrate that the drug will work. Therefore anyone in the nutritional market can only state what is in the nutritional and quote studies that a particular ingredient has been found to help.

    Here is an example. I use a product that has COQ10. COQ10 is an ingredient that Statin drugs break down. Two of the most popular Statin drugs used to lower cholesterol are Zocor and Lipitor. It is a fact that these drugs affect liver performance and tend to break down muscle. As a prescribed user of this drug I noticed that my aching in muscles. Interestingly I began to include a higher dosage of COQ10 in my vitamin regimen. Sixty days after I started the vitamin regimen I noticed that the aches in my leg muscles ceased.

    For more clarity about the MLM industry anyone can download a book entitled Big MLM Lies

    This book only takes 2 hours to read and will reduce the MLM Learning Curve by 3 years. You will not receive any upsells or phone calls to sell you services or products.

  76. Nicola says

    I am a Herbalife Distributor.
    My health has never been better and I am now running marathons in my 40s whereas 3 years ago I could not have gotten off the sofa!

    I am close to being a full time distributor and even if I was not able to sell the products I will always take them for the rest of my life as I know no one can take away from me how I fel everyday since starting my Herbalife journey!

  77. says

    Kit Elliott I'm still trying to understand who he has "bet"and how that is even legal? I feel like I'm missing a piece of info…. I watched the news reports but not grasping this part of it. Not that I doubt it's validity at all, I just can't understand how this is okay…..

  78. Tina Turrant says

    I have taken herbalife products for 3 years. It changed my life ! The only cellular nutrition in the world!

  79. BeckyandNeal Bryson says

    Thank you Ray. We are Herbalife Independent Members and are currently Supervisors with the company. It is wonderful to see such positive speaking coming from an outside source. Also, we are will you on this, it is indeed a "witch hunt" that was generated is being fueled by a fool and his money. Here is a copy of our disclaimer: An extensive questionnaire generated responses from more than 200 U.S. Herbalife Independent Distributors about their weight-loss programs and results. They reported weight loss ranging from 4 pounds to 167 pounds and a reduced body mass index (BMI) of 1.5 points to 24.1 points, suggesting that consumption of Herbalife® products is associated with weight loss and improvement in BMI in those ranges. Lean weight gain depends upon individual metabolic factors, exercise and overall diet.
    These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.
    Thanks again Ray for being in our corner.

  80. AM says

    Hey Ray,
    As a member of Herbalife and of course a member of the MLM industry I want to applaud you for standing not just for the industry but for what is right.
    Please watch the following video and you will find out about the guy who is behind all this.
    Another wall street shark looking to make a quick buck.–allergan-and-insider-trading-140059849.html

    MLM is the way to go.
    I have made tones of money and helped thousands of people change their lives in the last 20+ years.
    MLM Is the best kept secret in America.
    Profits are much better than wages.

  81. says

    Ray, thank you so much for those words!!! I am an Herbalife Distributor and love this company.
    For someone outside of Herbalife to be such a support really means a lot. The people in this business that are successful work hard and love to help others. It's sad that everyone isn't honest, but not everyone in every company is honest.
    I just wanna say thank you again!!!

  82. says

    Hey Ray. You got it right about "Bad Reps" but not bad company. I did join Herbalife as my first company, and it led me to where I am today. Herbalife is a good company, just not where I personally needed to be. But, I believe all of this comes from a certain distributor they had, who I joined under. He recruited 10s of thousands of people and mislead them for his own benefit. Herbalife threw him out, but was a little too late. The company he went to in Jan '13, is now making the news because they had to change their entire policy because he is now bringing the heat to the next company. So I know you are right about this. It's not Herbalife the company, but those who abuse the network marketing industry, and take advantage of the "uneducated". Heck, I fell for it, and lost close to 10K with this guy, and Herbalife didn't get the money, it all went to him.

  83. says

    Thanks for this Ray, I do think that all of us in the industry need to care about this and support Herbalife regardless of the product our company markets. I am in a health and wellness company and we preach "compliance" (not making health claims) constantly. But I think what's going on in this case has more to do with Herbalife being publicly traded and somebody trying to manipulate the stock value to make a lot of money. This is a lesson for network marketing companies: when you go public you are beholden to the shareholders, not your associates – and you open yourself up for this kind of attack.

  84. says

    It blows my mind how one person can cause such chaos! Ray I agree 110% that the company is not the problem – it’s the individual that made a mistake.

    This business is so amazing and has helped so many people change their lives. It’s such a joy to help people break free from the status quo and live life on their terms!

    Go Herbalife – I’m not associated with them, but I have used their products.


  85. Cedric A. Thomas says

    I appreciate the non-biased stance you took on talking about the Herbalife investigation. This video should prove to some, that on some degree a few uneducated individuals will join a company for the shear basis of getting money. While others including myself will do the exact opposite. While I am in the business to get money, it is not my primary focus. Getting people to a healthier state; mind, body,soul and financially is the overwhelming goal. Thanks for the video!

  86. says

    Herbalife's main office is not too far from where I live. Anyway, Herbalife has been attacked for many decades and even by a guy that was short selling herbalife stock and then trashing them in the media to hopefully get the stock to tank.

    Heck, I just got an herbalife dealers card here in a SFV ca city just the other day, and she even owns a little retail space here and said she didn't even speak English, but she did, she was just not confident speaking it, but I could understand her perfectly.

    I also got a Spanish ladies card who could speak English very well at a Denny's in the SFV are here in LA. CA and she was waiting outside for a fellow MaryKay distributor friend of hers to have coffee. So Network marketing is alive and well, and everywhere you would least expect it, it is there. Just ask me how. :) HF

  87. says

    < "If you're in a health & wellness company, don't mention the name of your company/product in the same sentence" >

    Because some companies (such as the one I am with) can and do make legitimate claims related to specific medical conditions, I would add "unless your company does so in its official literature" to this statement.

  88. Greg says

    Ray, I can’ agree more. we need to support the WHOLE industry no matter what your affiliation is to it.. Well said and well documented .. g

  89. says

    I am a proud Herbalife member and I want to thank you so much for this video! You are right on target! Corporate NEVER says any of the things the members from the program said! Thank you!

  90. says

    The smart thing to do is present the products and the business opportunity and let people make choices. Be encouraging and supportive. When it works for them, and they feel compelled to share it with others, more people get the opportunity to make choices. MLM is a great opportunity but ethical standards must be applied. Everything you do and say about the company and producs you represent impacts the reputation of everyone else in the company — don’t make false claims and ruin it for those who are doing it right!

  91. says

    Calling legit MLM companies pyramids is a lot like the pot calling the kettle black. To open a can of worms, our economy is a pyramid. Fractional reserve banking is a pyramid.

  92. says

    I agree with you Ray Higdon. The crazy part is a hedge fund OWNER is going after them just to short the stock and he wins millions on the fall of the stock. People don't know you can make money on a stock falling just like you can make money on a stock rising. He is using media to assist with his greed. I pray GOD clears that company. I am not a Herballife rep, but I love the mlm industry.

  93. says

    Don't know to much about herbalife and really don't care to all I know is that it has changed my brothers life!! He use to be over weight and now he is giving me clothes that are too big for him!! Plus he has made all kinds of new friends! Where before all his friends were online or xbox live!! So weather it's a scam or not I really don't care because it's changing lives for the better and I'm all for that! Rock on herbalife I'm behind you 100% even if I don't use HERBALIFE IT HAS CHANGLL MY BROTHERS FUTURE!

  94. RED says

    I feel that your body can cure you if you let it! I believe meds are toxic to our bodies! People who take them become dependent on them or die! I believe our bodies can defend disease and illness if you let! It might not be a quick fix! It might take time and a lots of herbals( hebal for a herbalist or ND) who finds the cause (treats the whole body).. We are what eat! Some disease or illness are genetic related! But try our best to be healthy and fit! We need to own our health and fitness! We must Understand our bodies and how they work! They can work well if he just understand! We only get one body! Treat it well! It will treat you well! Being mindful of what we eat, or put in our mouths!


  95. says

    Dear Ray,

    Your defence of Herbalife is admirable. I wish you every success. I don’t know if you watched the very last comment Mr Akman made on the video. It was to the effect “If Herbalife is found to not be a pyramid I will lobby Congress to change the law.”

    This is the straw which could break the back of the Network Marketing Industry.

    I think you are going to be a very busy man if you are leading the fight to defend the industry. I really think you need to contact all of the reputable MLM companies and form a fighting fund to support Herbalife in its fight to survive.

    By the stroke of a pen Congress could put out of business every MLM company in America.

    More Power to you!
    Lawrence Myers
    Sydney, Australia
    30 Apr 2014

  96. says

    Ray, thank you for taking time to defend the NWM profession as a whole. I am in NWM, but not Herbalife. I totally agree with every point you made, and yes, we need to be in the Herbalife corner!

  97. says

    I agree with Patrick McCall couldn't say it better myself I am in MLM in the Bahamas in health and wellness and I just feel people need to start opening there eyes and seeing that the people in charge approve stuff that literally kill you everyday and then things that has no record ever killing anyone they parade before the courts. I agree with Ray I am not in Herbalife But they have my support.
    All members of my group feel free to share comments below as well.

  98. says

    Well said, I'm in one of the other companies. While all lawyers get a bad rap from a few bad lawyers, we can all lose our jobs from a few bad reps. Good thing we have such good compensation plans.

  99. Chris Brent says

    Thank you for that video. Herbalife has made it this far so obviously they are not an overnight company. There are always bad seeds wherever you go. I am involved in network marketing and proud of it! It really should be about personal growth and helping others then you will be successful. We had a bad seed in our company but the company made sure to get rid of the person. That shows great integrity! I think every company or organization goes through trials but it all depends on how the company reacts. There will always be those people who think this industry is a scam but we need to move on and not be attached to the results of those people if we do become attached then we remain stagnant and will not grow. I would love to share with those are interested in what I am doing. Please email me at with your name and phone number if you are interested or the least bit curious.

  100. says

    They can't do an investigation, cause BIG Pharma has a strangle hold on and deep pockets. ABC is probably making mega money off commercials from Big Pharma. FDA approves because they get big money, can we say bribed.

  101. Rick Lema says

    Big Pharma DOES rule everything, even though their 'approved' products kill 100k+ people a year. We all need to monitor each other, to protect our company, our future, and the future of this amazing industry as a whole. The bad seeds that think claiming things will explode their business are as uneducated as those that call it a pyramid scheme if not more… Thank you for the video, Ray!

  102. Rick Lema says

    Big Pharma DOES rule everything, even though their 'approved' products kill 100k+ people a year. We all need to monitor each other, to protect our company, our future, and the future of this amazing industry as a whole. The bad seeds that think claiming things will explode their business are as uneducated as those that call it a pyramid scheme if not more… Thank you for the video, Ray!

  103. Rick Lema says

    Very good points, Patrick. Mainstream air what they want, to forward THEIR beliefs, without hurting their cause and peeps involved.

  104. says

    Thank you Ray for another great post on Herbalife! I for one, am rooting for their victory! Thank you for shining some light on the darker side of our industry in an intelligent and positive post. Engaging in open, mature adult conversations about network marketing .. the good, bad and ugly of it all, will lead to greater understanding our our industry. As our good friend Eric Worre says .. "Network marketing isn't perfect, it's just better!". I appreciate you, my friend!

  105. says

    I totally agree with your comments on Herbalife Ray. I understand the issues about the pharmaceutical companies In America, having seen the adverts on TV when I have been there.
    I believe everyone should pull together to keep the reputation of network marketing companies in general and you are right, if a company like Herbalife was destroyed by this then everyone needs to be worried.
    The one thing that concerns me is the reps that have caused this. I know its hard to legislate against people that just don't follow the company policy, especially when the reps are freelance. I don't know what the answer to this is. Obviously if they were employed then they would be dismissed for bringing the company into disrepute but they are not. I have no easy answers to it only that something would need to be done by Herbalife to ensure this didn't happen again.

  106. says

    I totally agree with what you said about supporting this company and our industry. That is exactly what we need in this industry more professionals and leaders like you Ray to step up and teach the masses about these kind of issues we hear and deal with. Thanks!

  107. Fatima Mohamed says

    Well said mate. Thank you for putting word out.
    People need to focus and educated them self before open their mouth. I luv herbalife nutrition products it's the best. It don't cure ya but it give u best nutrition base.

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