Bidnessetc.com conducted a survey and the results are promising. They explain below:
Herbalife Ltd. (NYSE:HLF) stock has dropped 51.18% year-to-date (YTD), due to weaker-than-expected financial results for its past two quarters and rising concerns of the company running a pyramid scheme.
To get some insight into the demand for Herbalife’s products and the company’s business model, Bidness Etc conducted a survey of Herbalife’s distributors.
The results of our survey support the argument that real demand for Herbalife’s products exists, distributors remain largely satisfied with the company, international regions like South Africa remain strong drivers of growth for the company, and company sales are continuing to grow in both developed and developing markets.
The survey was conducted from December 16 — December 19, on 26 Herbalife distributors from the US and 25 distributors from international markets, including China, South Africa, Germany, the Middle East, and India.
After analyzing the survey results, we have shortlisted seven eminent themes for Herbalife Ltd., which are as follows:
Strong Growth In Demand For Products
According to most respondents, from both US and international markets, sales for Herbalife products are growing at a high rate. 92% of the US respondents said their sales of Herbalife products have increased compared to last month, while 96% of international respondents stated the same.
Distributor Janet Gayle from
Tag Archive for pyramid scheme
Hot Business News Today
SEC On Lookout for Web-Based Pyramid Schemes
by Tina Williams • • 0 Comments
The Wall Street Journal released the following article:
Illustrated by a sack full of dollar bills, the online pitch was simple: an “amazing and irresistible” opportunity to join a global direct-sales travel company, recruit others and enjoy a share of the profits.
The company, GoFunPlaces Inc., was going to go viral via Facebook and YouTube, making it easy for “Joe Average [and] Suzy Average” to earn money.
“You can win here! You can win!” a 2012 video said. “The longevity is going to be here.”
Within a year, GoFunPlaces closed its U.S. operations and faced scrutiny from the Federal Bureau of Investigation and the Securities and Exchange Commission over whether the company was a pyramid scheme or involved in other fraud, according to people close to the probes.
The SEC this fall shut down a company that owned half of GoFunPlaces, alleging it was a fraudulent $129 million pyramid scheme.
A lawyer representing GoFunPlaces didn’t respond to requests for comment and the company itself couldn’t be reached. GoFunPlaces hasn’t been accused of any wrongdoing by the government.
Direct-sales is more popular than ever: A record 16.8 million Americans—representing about one in every seven U.S. households—worked in the industry last year, most for companies that employ networks of
Hot Business News Today
Herbalife Wins Court Approval For Class-Action Lawsuit
by Tina Williams • • 0 Comments
Herbalife Ltd won preliminary court approval of its $15 million settlement of class-action litigation accusing the maker of weight loss and nutritional products of being a “pyramid scheme” that misleads distributors about how much money they can make.
In a decision dated Tuesday, U.S. District Judge Beverly Reid O’Connell in Los Angeles called the accord “fair, reasonable, and adequate,” a standard often used to assess class-action settlements.
The accord also requires Herbalife to provide up to $2.5 million to distributors who return unused products.
In addition, Herbalife agreed to change some corporate policies, including over how it defines distributors and handles shipping charges on returned products, for at least three years.
The Los Angeles-based company did not admit wrongdoing. O’Connell scheduled a May 11, 2015 hearing to consider final approval of the accord. About $5.25 million of the settlement funds could go toward attorney’s fees.
Herbalife has long been under attack by short-sellers like billionaire hedge fund manager William Ackman, who has accused it of inflating results that depend more on its ability to recruit new distributors than its ability to sell products.
Authorities such as the FBI, the U.S. Federal Trade Commission, and some state attorneys general have also been probing Herbalife’s activities.
Herbalife has denied being
Hot Business News Today
“Pyramid Scheme Or Not, Herbalife Is Tanking”
by Tina Williams • • 0 Comments
The LA Times released the following article today, making a bold prediction about industry giant, Herbalife:
In December 2012, Hedge fund investor Bill Ackman painted a huge bull’s-eye on the back of Herbalife, labeling the Los Angeles nutritional supplements company an illegal pyramid scheme and placing a $1-billion short bet against its shares.
Ackman supported his bet with a 334-slide PowerPoint presentation that eviscerated the company in heroic detail. Whether Herbalife’s business model is illegal — ongoing investigations by federal and state authorities have that issue, and others, under scrutiny — much of what Ackman said at the time appears well-taken today.
So far this year, Herbalife’s shares are down about 43% — including a roughly 20% drop Tuesday (as of this writing) after the company shocked investors with a bad quarterly report and a pessimistic view of the future Monday. Its shares are currently trading below $45. Ackman, whose short bet is thought to have been made at about $50 a share, appears to be back in the black, after having faced a hefty loss when the stock reached the low $80s earlier this year.
As Ackman observed, Herbalife’s business model has long been questionable, relying on overhyped products, an almost invisible research-and-development program, and the targeting
Hot Business News Today
Banners Broker’s Accounts Frozen
by Tina Williams • • 0 Comments
Police in Canada have claimed the masterminds of the Banners Broker advertising website, which netted 12,000 investors there, were operating a pyramid scheme which “evolved into a straight Ponzi scheme”.
The Royal Canadian Mounted Police has also claimed that Christopher George Smith, Rajiv Dixit, and “others known or unknown” possessed and laundered the proceeds of crime.
The Mounties have succeeded in freezing a number of accounts in Canada containing hundreds of thousands of dollars and linked to the Banners Broker scheme.
The officer who has led the investigation, Constable Kate Judd, said in an affidavit seeking the freezing of the accounts that the “suspects will or could soon be charged with the following offences”:
-Running a pyramid scheme;
-Fraud over US$5,000;
-Possession of property obtained by crime;
-Laundering the proceeds of crime;
-Making false and misleading representations.
“It is the position of the police that the Banners Broker operation was dishonest and that said dishonesty misled many investors, causing them to part with funds that, had they known the truth about Banners Broker, they would not have parted with,” said Judd.
“It is the position of investigators that this business was a pyramid scheme that, over time, evolved into a straight Ponzi scheme in which new victims were recruited to
Hot Business News Today
SEC Action Against Zhunrize May Effect Dubli
by Ted Nuyten • • 0 Comments
Recently the SEC alleges Zhunrize to drive a Pyramid Scheme and the SEC’s argument is “substantially all of Zhunrize revenue has comes from the sale of memberships (referred to as stores)”.
Dubli is a larger MLM with a simular e-commerce program and cashback shopping mall and has been expanding to the USA.
Dubli’s strategy is very open as it is a public company and has warned in its own report:
“Continuing analysis of the customer subscriptions, the inherent danger Dubli faces is that, in bundling so many subscription vouchers with paid affiliate memberships, there won’t be a significant amount of customers purchasing subscriptions”.
And:
We are subject to the risk that, in one or more markets, our network marketing program could be found not to be in compliance with applicable law or regulations.
Regulations applicable to network marketing organizations generally are directed at preventing fraudulent or deceptive schemes, often referred to as “pyramid” or “chain sales” schemes, by ensuring that product sales ultimately are made to consumers and that advancement within an organization is based on sales of the organization’s products rather than investments in the organization or other non-retail sales-related criteria.
Affiliate membership to Dubli is available at three price-points:
Business License – $594 ($99 +
Hot Business News Today
SEC Action Against Zhunrize May Effect Dubli
by Ted Nuyten • • 0 Comments
Recently the SEC alleges Zhunrize to drive a Pyramid Scheme and the SEC’s argument is “substantially all of Zhunrize revenue has comes from the sale of memberships (referred to as stores)”.
Dubli is a larger MLM with a simular e-commerce program and cashback shopping mall and has been expanding to the USA.
Dubli’s strategy is very open as it is a public company and has warned in its own report:
“Continuing analysis of the customer subscriptions, the inherent danger Dubli faces is that, in bundling so many subscription vouchers with paid affiliate memberships, there won’t be a significant amount of customers purchasing subscriptions”.
And:
We are subject to the risk that, in one or more markets, our network marketing program could be found not to be in compliance with applicable law or regulations.
Regulations applicable to network marketing organizations generally are directed at preventing fraudulent or deceptive schemes, often referred to as “pyramid” or “chain sales” schemes, by ensuring that product sales ultimately are made to consumers and that advancement within an organization is based on sales of the organization’s products rather than investments in the organization or other non-retail sales-related criteria.
Affiliate membership to Dubli is available at three price-points:
Business License – $594 ($99 +
Hot Business News Today
Australian Organization Accuses Lyoness Of Being A Pyramid Scheme
by Tina Williams • • 0 Comments
The Australian Competition and Consumer Commission (ACCC) will today begin its case against Lyoness, alleging it is operating a pyramid scheme.
Tony Zeaiter and Paul Maait each invested $3,000 in Lyoness to become premium members of the Australian arm of the company.
“When it launched in Australia, they said ‘You’ll have a minimum of 500 people under you, and you’ll get a percentage of whatever these people do’,” Mr Maait told the ABC.
“[They told us] ‘You don’t have to go out and sell, you don’t have to go out and recruit people. We will give you 500 people and, you know, you’ve really got it made if you get in at this time’.”
Mr Maait said both he and Mr Zeaiter were impressed with what they saw at the presentation about the company in Sydney.
“There was literally thousands upon thousands of people joining and when they told us like Woolworths were able to get six million people to join their rewards system, it was quite believable that this could actually happen,” he said.
But partnerships with major retailers such as Woolworths and Harvey Norman did not eventuate.
“They haven’t been able to deliver on the promises that they made to people like us in order