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Herbalfe (HLF) could reportedly end its relationship with one of its top 49 salesmen as the...

Herbalfe (HLF) could reportedly end its relationship with one of its top 49 salesmen as the company tightens its sales-generation rules amid controversy about its business model and how sales leads are made. A sources says the development is a serious one, although Herbalife downplays it.
Comments (7)
  • Douglas Brooks
    , contributor
    Comments (44) | Send Message
     
    The NY Post reports that the distributor in question is Shawn Dahl, who runs a lead generation system called Online Business Systems. http://bit.ly/VSSvME

     

    This is exactly the kind of development I predicted in my article about Herbalife's problem with high level distributors making deceptive earnings claims: http://seekingalpha.co...

     

    Herbalife needs distributors like Dahl to sustain its recruiting; but it cannot afford to be perceived as endorsing the extremely deceptive tactics employed by Dahl and his colleagues.
    22 Feb 2013, 07:32 AM Reply Like
  • LouisRenault
    , contributor
    Comments (127) | Send Message
     
    The New York Post?

     

    I also believe everything I read in the papers, specially from such a fine high quality publication, owned by.....Rupert Murdoch!! - That name rings a bell - where have I heard that name before?

     

    Judging from his presentation I now see where Ackman got his research. Thank you for the enlightenment Douglas
    22 Feb 2013, 09:56 AM Reply Like
  • jimgutner
    , contributor
    Comments (68) | Send Message
     
    I've seen how these people operate and how they influence others to make bad decisions based on bogus claims. One of my friends has thrown away his time, energy and money because he, unfortunately, had some initial success in a MLM. It went all downhill from there and now he's still hoping and hoping. At one point they were passing around a chart of someone's pay over one year and saying that legally they were not supposed to be doing that. They also had a non company sponsored website that had testimonials supporting benefits for every type of condition you can think of. It's one of the reasons why MLMs use the distributor model. Somewhat less liability for what the distributor says to influence people.

     

    That said, I'm not sure this leads to zero, but I really hope it leads to the FTC reigning in MLM practices and claims. And the overseas emerging markets that haven't been exposed to MLMs are ripe for these unknown and unregulated practices.
    22 Feb 2013, 08:09 AM Reply Like
  • LouisRenault
    , contributor
    Comments (127) | Send Message
     
    Jim thanks for your anecdotal comment about your unsuccessful friend.

     

    If you are looking for more empirical evidence direct yourself to HLF's 4th Quarter results. Growth in net sales of 20%, in a regulated market using known sales practices for the last 32yrs. The Market in question? - the USA.

     

    May I suggest you seek more successful associates?
    22 Feb 2013, 10:09 AM Reply Like
  • watdahek
    , contributor
    Comments (11) | Send Message
     
    If Herbalife ends its relationship with a distributor, then it's because the distributor wasn't following the rules. It has departments that deal with this, which is not influenced by current attentions on the company. OLS, is responsible for themselves.
    22 Feb 2013, 11:51 AM Reply Like
  • MTStrategies,LLC
    , contributor
    Comments (29) | Send Message
     
    zzzzzzzzzzzzzzzzzzzzzz...
    25 Feb 2013, 12:57 PM Reply Like
  • nshape
    , contributor
    Comment (1) | Send Message
     
    98% of todays Herbalife distributors are NOT practicing like Shawn Dahl!
    26 Feb 2013, 05:23 AM Reply Like
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