Is Herbalife A Pyramid Scheme? ¿Quien Sabe? 88% not retail - distrib-lemmings consuming losses
google it. interesting read. yes - it's been mentioned prior...
Herbalife recently reported - for the first time - similar loss rates among its "participants." According to the company, 88% earned zero commissions in 2012. The significance of that statistic is inextricably tied to the pyramid question which, in turn, is unlocked with information on where Herbalife's revenue ultimately comes from - retail sales made by the distributors or "funds received from new investors" (the distributors themselves). This information is knowable, not a mystery. Regulators will inevitably ask Herbalife to provide it.
If Herbalife's revenue is mostly from the distributors' own purchases, not from their subsequent and profitable retail sales, then Herbalife's promised rewards are, similar to Zeeks', gained from "funds received from new investors."