Many people rather wrongly believe that Herbalife is not a ponzi scheme. If they follow their method of business or business model then they could understand their ponzi scheme. This is what written by a Herbalife member.
Herbalife has 4 very attractive income streams.
The first being retail sales and is very quick to put in place? Basically when you join the company you are given a discount on the products and supply your family and friends the products at retail price.
Your discount range is between 25–35–42 and 50 percent, these discounts increase the more work you do.
The second part of the business is wholesale payment direct from Herbalife themselves, this is where you introduce someone to the company and teach them about the business, Herbalife will pay you for the work they do, the amount you are paid depends on your discount level and their discount level.
The third way is also another direct payment from Herbalife called royalties, to qualify for this payment you must help team members qualify for supervisor and you will receive a 5% payment for the work of them AND their team.
The fourth and final payment is called bonus, this is when you get into the higher levels of Herbalife you are paid an additional income from your supervisors ranging between 2% to 6%.
By this description of the business model one could understand the ponzi scheme of Herbalife. Mind everyone that Herbalife is also a member of Indian Direct Selling Association like Amway, Tupperware, Forever Living Products, Avon, and others.