Ever since Bill Ackman came out in the accusing of Herbalife of being a pyramid scheme the troubles have began and the stock have been dropping once hot company. Many people use Herbalife and say they made money, But that doesn't mean it's not a pyramid scheme.
What is a pyramid scheme you might ask? Well the pyramid scheme is any business that makes a majority of its money from people signing up opposed to people actually making money off the products.
Bill Ackman came out 2 years ago and claimed that Herbalife was a pyramid scheme. He spent $50M to try and get the company shut down and prove it was fraudulent, but had trouble convincing the government. Until recently. A video has surfaced that shows top distributors at Herbalife talking about how Herbalife is about selling the dream and selling a possibility of making money knowing that the likeliness would not happen.
98% of the people that use Herbalife average about $1. 50 an hour in earnings. The major markets for Herbalife users and distributors are Mexico, Venezuela, Brazil, and Russia
All of their economies are having trouble with the money and a lot of the economy is based off oil strength.
Check out the link below for more information.
http://FactsaboutHerbalife.com
It's not looking good for Herbalife.
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