I JOINED A MULTI-LEVEL MANAGEMENT SCHEME
- FOR A LAUGH.
A loosely termed investigatory journalism piece by Charles Reeve.
More casually referred to as MLM’s, Multi-Level management schemes are a notoriously vilified business tactic in which a direct sales company, uses existing distributors to find and recruit new distributors to sell their products, offering
incentives as they advance through the levels. For the sake of banter, and to see what all the hype was about, I thought there’s no better idea than to dive head first into one.
The Inspiration
or a while I had become spoilt for choice across my social media platforms. An influx of people within my DMs and timelines could be seen wheeling and dealing all sorts of goods – from holidays to scents and fragrances. One of the more common varieties of flogged goods was powdered shakes and smoothies, those peddling them usually reciting the same old spiel that your life could be improved in all manner of ways once consumed. From weight loss to contributing to a more active and healthy lifestyle.
After a small bit of research I realised that these new salespeople had all bought into a multi-level management scheme. A scheme which doesn’t fall too far from the tree of the dreaded pyramid. A scheme which you pay to be part of, receive discounted stock, and then continue to sell at a marked up price, whilst also trying to recruit new members to also sell the same stock. The naked idea seemed simple, so I thought why not? Putting my predispositions aside, I dug into my pocket, forked out the £42.61 and for the sake of banter, began my business journey with Herbalife.
The Plan of Action
I’d decided I’d give the business a 30 day trial run. 30 days where I’d try the products myself and 30 days where I’d try and hawk the products off to my friends and acquaintances. This would also be in keeping with the businesses refund policy, where within 90 days you could claim your start-up fee back and surrender your role as a distributor.
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I waited with anticipation for my start-up package to arrive, keeping an open mind with my new business venture. In all the excitement I simply googled Herbalife, just to see what the world was saying about the company. The initial results were disheartening to say the least. Headlines linking the products to long term health problems such as liver failure, hepatitis and even lead poisoning. Labelling the brand as “cult-like” and even discovering that the only way that the company narrowly avoided the pyramid scheme label was after agreeing to pay a $200 million fine to the US federal trade commission.
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But this wasn’t going to dampen my spirits. I was lured in by the chance of running my own business, creating a secondary income alongside my non-existent main one and to shed a few kilos in 30 days by replacing one of my meals with one of Herbalife’s very own vanilla shakes
Credit: The Sun
The Equipment Arrives
So on the 8th of April 2021, after missing the delivery man on the 7th, my Herbalife starter pack arrived. The parcel came well equipped, the meal replacement shake, a bottle for said shake, a couple of seemingly quite self- assertive badges and a load of booklets – some even with Cristiano Ronaldo’s face on, came encapsulated in a nifty Herbalife bag. Everything I needed to begin my MLM journey was there and I was ready for it.
Starting my Herbalife Journey
From days 1 to about 5 I wore my “lose weight now” and “personal wellness coach” badges with pride. Mainly around my house and a couple of times to the local shop. A technique which I had seen a few other fellow Herbalife distributors undertake themselves. Unfortunately the tactic didn’t seem to coax in any potential customers from neither my housemates or my Sainsbury’s chums. I blamed my poor results on social distancing, I persisted to pile pressure onto my housemates into buying something for the remaining week. My tally on sales closed on day 7 and profits remained at £0.00 (technically it was actually minus -£42.61.)
By the end of week one I had also completed my first week of beginning my new diet and trialling out the vanilla meal replacement shakes, and much like the marketing it had also resulted in slightly shitty circumstances. Before the 30 day challenge I had weighed myself just in case there would be a massive difference in my weight change during the course of the new diet. However despite all the new trips to the toilet, I remained at 11 stone 8lbs going into the next week.
For days 7 until 14 I employed a new tactic in the sales realm, adhering to social distancing guidelines I went online and worked from home. Using instant messaging services like Facebook to message friends and acquaintances to see if they would bite at the bait of the Herbalife products. Hogwash results with this was even more immediate than the prior method. Without hesitation a few people told me where to stick my products and others were genuinely more stuck on the surprise that I was trying to flog Herbalife to them, rather than entertain the consideration to even buy a product.
Lovely messages from maybe not potential customers.
Some Success
Just near the break of the 2 week mark I had finally reached some success. A couple of my housemates had finally crumbled to my unrelenting pressure and caved to buying something off of me. One purchasing a meal replacement shake and one buying a post workout protein shake as he was just beginning to work out more regularly.
The total for the order tallied up for me to around £57.75. For my housemates on the other hand I explained that I was trying to make ends meat and that they wouldn’t receive any of the 25% discount I’d already forked out a reasonable chunk of money for something which I was desperately trying to make back. Their total came to £73.85, the RRP given to me by Herbalife.
I was excited. Besides the fact I was already in debt to myself, the prospect of making back nearly £20 seemed like a pretty good start to recovery. I finalised the cart on the Herbalife portal and filled out the details for delivery. Much to my surprise some additional charges appeared on the details of the order. My 25% discount had been subtracted but much to my dismay, taking its spot practically to the decimal place was a shipping and handling fee amounting to £6 and a sales tax of £9.30. Where I was at one point making £16.10 I was now making 80 pence. Bringing my profits tally after 14 days with Herbalife up to -£41.81.
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"A couple of my housemates had finally crumbled to my unrelenting pressure and caved to buying something off of me."
This really did put a massive spanner in the works for mine and Herbalife’s already strenuous relationship. After all the blood, sweat, passion and tears for the brand. To be rewarded with 80 measly pennies?
The fact of the matter was also, me and my housemates/customers actually had praise towards the products. Although my weight wasn’t pouring off of me like I had been led to believe. I did feel more active in myself. Getting up earlier in the mornings, more energy etc. My housemate who had been using the meal replacement shake also had similar results, and was full of satisfaction for the product itself.
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For my other housemate who had the post workout protein shake, apparently it was helping him achieve the “gains” he was desperately searching for. With already a noticeable difference to his workout within just a few trips to the gym. Also, for what it’s worth, it tasted really nice too.
Learning Some Lessons
I was in the process of handing in my resignation when I wanted to find out what someone with a little bit more knowledge in this area of health and wellness thought of the company. In comes Russ Howe, a personal trainer based in South shields. He definitely had a few things to say about the company. In a couple of remarks, he describes the sales reps for Herbalife as “annoying” and “harder to shake off than a bit of shit on a stick.”
But besides the criticisms of the sales tactic. He also made some very good points about the products. “The meal replacement shake states it contains 221 calories,” he says. “221 calories is not a meal. 3 of these per day and you’re up to 663 calories.” “ Of course you’re going to lose weight, you’re fucking starving!”
What Russ had to say did hold true. In the advice given to me on my tub it said to have 2 shakes per day along with a balanced meal and then exercise between to build muscle. However Russ described the amount of protein as “nowhere near enough to support any kind of training.”
What Russ had to say did give me a lot of food for thought. I don’t have any personal training or nutritional certificates, dropped PE when I was 14 and hardly know what I’m doing when I rarely go to the gym. But for just over forty quid I could become a personal wellness coach and a viable source of advice for people to lose weight?
The protein shake somewhat worked for me, yes – I think. But what if I gave some dodgy advice, telling somebody they could gauge themselves on a meal replacement shake for 3 meals a day and then go and exercise and that resulted in a serious illness. Is it worth the seventy pence I made? Probably not mate. I joined the business to see what Herbalife was actually like, and to see if I could actually make something out of it alongside this article. But somebody else who may join may seriously be looking for another source of income. Play the game more perilously than I did. Give out uneducated and potentially harmful advice when they are no more qualified than I was.
You can’t knock someone for having a hustle. But selling Herbalife? Maybe think twice.