The debate over Ackman's short thesis is in my opinion largely over. Who is out there in the investment community who has any stature is saying that Ackman has a prayer of prevailing? It is settled. The questions of the day are how high? and how fast?
While the guests have begun to arrive at the party, the band hasn't started playing yet. I'm as impatient as the next guy to hear the music.
There is also a demand for second incomes. Most "distributors" are only in that role for personal discounts. But many truly are distributors on a small scale. HLF thrives on this model and has for decades. This model and the pay structure is FAR from a pyramid.
Another thing people are missing - Some say it's an overpriced product to begin with compared to others and the discount still doesn't save them much. People who try Herbalife and like it can reduce the cost of their product by simply introducing it to friends/family. After bragging about the product to family/friends which in turn become customers - reduces their cost tremendously making it cheaper if not free.
You don't have to like the idea, just telling you how it is. There's nothing illegal about it.