Kevin Thompson, MLM Attorney, just posted this to Facebook …
“Here we go again. Bill Ackman, another notorious short seller, announces his short position on Herbalife, alleges them to be a pyramid. This is a great response from Herbalife’s CEO, Michael Johnson.” http://ow.ly/gg6Y1
Note one of the key questions asked by Kate Kelly at 1:45 …
“Are the sales of your products confined to your own distribution network, or is it broader than that?”
Regulating agencies want at least two thirds of sales to be to customers who are not also distributors. If only distributors are buying, the business model begins to look like a money swap with no retailing going on. Michael Johnson has an excellent reply that 90% of Herbalife’s sales are to non-distributors.
We believe that network marketing is just another way to deliver goods and services to the end consumer, and we must do everything in our power to ensure that this is true. If each distributor gathers just two customers, this goal is achieved. The company becomes more solid, the distributor’s business will sustain itself, and the authorities will smile kindly upon us!
To learn more and to protect yourself from pyramid scams, you’ll want to read the free report Big MLM Truths.