​Is Herbalife a pyramid scheme?

No, Herbalife is not a pyramid scheme. Herbalife is a global direct-selling company that has been in existence for over 45 years and operates in more than 90 markets around the globe. We develop and sell nutrition products and dietary supplements through a network of Herbalife Independent Distributors, most of whom started out as customers that achieved their health and wellness goals. These Distributors in turn offer personalized support and guidance to help their friends and families, providing real-world and practical advice that is often lacking in retail or online. There are millions of people involved in this sales model around the globe.

What is a pyramid scheme?

A pyramid scheme is an illegal enterprise that relies on recruiting new participants to fuel its existence. Pyramid schemes are destined to collapse when they run out of new people to recruit. Such schemes typically do not sell real products that are in demand and instead focus on recruiting more participants, charging high joining fees, requiring  further investment and depending on false information and perceived urgency. Here are the reasons why Herbalife is not a pyramid scheme:

Compensation based on product sales

Herbalife Independent Distributors earn income only from selling its high-quality products, including the #1 protein shake in the world.* We do not compensate Distributors for recruiting others. With over 40 years of experience in direct selling, Herbalife has strict policies in place to help Distributors build sustainable businesses.

*Source: Euromonitor; CH2025ed, protein shake as sports protein powder, sports protein RTDs, meal replacement, supplement nutrition drinks & protein supplements; combined % RSP share GBO for 2024.

Low start-up costs and no minimum purchase requirements

There are no monthly minimum purchase requirements to become a Distributor. The Digital Starter Kit, which provides access to online training and a personalized website, is available at a low cost with no additional fees and provides valuable training and other benefits to new Distributors.

12-month refund guarantee  

Herbalife follows a Gold Standard Guarantee, which includes a 12-month, 100% money-back guarantee on unopened products and unused U.S. corporate event tickets. If a Distributor decides to leave the business, they can return their Digital Starter Kit or International Business Pack for a full refund within 12 months, including taxes and shipping costs.

No requirement to buy in bulk

New Distributors are not required to purchase large amounts of inventory. Herbalife discourages bulk purchasing and has safeguards in place to prevent excessive orders.

Investment in research and development

Herbalife has invested more than $300 million in research, product development, manufacturing and technology over the past decade. Our state-of-the-art labs and manufacturing facilities ensure high-quality products that meet industry standards.

Commitment to transparency and ethical business practices

Herbalife provides clear and accurate information about potential earnings and the effort required to succeed. We uphold the highest ethical standards, ensuring that all claims about our products and business opportunity align with company policies. Any concerns about misleading statements can be reported to Herbalife at 866-866-4744.

Direct selling – How does it work?

Herbalife Independent Distributors work on their own, utilizing our diverse product range as their preferred business opportunity. Meaning they keep the freedom to run a business on their own terms.

According to the DSA official website, 89% of direct sellers decide to work part-time, looking for an opportunity to earn a supplemental income alongside their day-to-day work.

The Herbalife business model allows Distributors to work on their own schedule, at their own pace, and offers the opportunity to connect with like-minded individuals. Direct selling is hard work. There is no shortcut to making money, no guarantee of success.

Is Herbalife a Ponzi scheme?

No, Herbalife is not a Ponzi scheme. A Ponzi scheme is an illegal scam that pays returns to earlier investors using money from new ones, with no real product or service. Herbalife is a legitimate direct-selling company where Distributors earn commissions from product sales, not recruitment. With over 45 years in business, Herbalife follows strict regulations and ethical practices to ensure a transparent and sustainable business model.