Tuesday, June 4, 2013

Why Did Herbalife Have Third-Party Marketing Organizations, When It Already Has Affiliates?

Ever heard of "incomeathome.com"? No? Okay, that's all right.

If you listen to a lot of talk radio, such as Glenn Beck, Sean Hannity, Dr. Laura... these names should be familiar to you. What do they have in common besides that they are radio personalities?

They all endorse this thing called "Income At Home", which is remarkably vague about what it really it.

Now do you recall anything about it? I'm sure one of those personalities read some ads about it. In fact, they all did.

All it says is start your own business at home, earn income quickly and legitimately, on your own terms, blah blah blah. And getting started is remarkably simple: pay the $9.95 for this "Internet Business Starter Pack".

Guess what this starter pack contains? 12 brochures, and one very short sales DVD, that does NOT tell you what exactly you're supposed to do with this "business".  And it does NOT cost $9.95, but $49.95.

Turns out this entire "income at home" thing is really one guy's attempt to feed his Herbalife downline churn.

Turns out this $9.95 pack has a caveat on it. $9.95 is only for shipping and handling. You can "try" this kit for 14 days, at the end of which, if you have not yet returned it, you are charged $39.95 (additional).

One guy, Barron Hansen, was intrigued enough to buy this "pack" as he's a fan of Glenn Beck. He was disgusted by the lack of content in the pack, and fascinated by who's really behind it, so he started digging. What he found was not what he expected. He found a network of virtually identical sites, variations of the same name, all promoting this $9.95 pack. Then he discovered a parallel network, also selling the same thing, but goes by the name "Online Business System". What they have in common is they all refer to a "Centurion Media Group", based in Barbados.

If this hadn't turned you off yet (foot in door technique!) you are encouraged to join for real... to the tune of $400 (note: Herbalife's own enrollment is about $100 or less)  What does the $300 extra get you? Access to Online Business System's exclusive tools (selling a website just like the one that drew you in, $70 a month) and exclusive leads (the ones that typed referral code and paid $9.95, like Barron Hansen did, up to $100 per lead)

And NONE of them will tell you it's Herbalife unless you threaten to hang up on them if they don't tell you.

But there's more... Who's really behind the whole thing? For that, you'll need to read the Verge Article.


But wait, you ask, what does this have to do with anything?

Ah, but I remind you of the various "Amway Support Organizations" that existed to keep the members in line using cult tactics. That the distributors not only make money from their downline, they also sell them leads and training material and 'sales aids' that obviously, gets NO REFUND (unlike the product that can be returned to Herbalife for a 90% refund).

And Herbalife itself saw the problem. In February 2013 it specifically issued orders telling affiliates NOT to use Online Business Systems. NYPost, who posted the article, specifically named Shawn Dahl as the owner of Online Business Systems.

Shawn Dahl often mentioned that he owes his financial independence to his wife's parents, who introduced him to Herbalife and he never looked back.

What he didn't tell you is his mother-in-law, who ran Global Online Systems, used the SAME tactics (i.e. an intro kit, mysterious "home income opportunity", etc.) to feed her leads for her own Herbalife biz downline, and plead guilty in 2004 in Canada for "pyramid selling", and was fined $150000.

So, did Shawn Dahl simply took over the business from his mother-in-law with a slight name change?

That, you have to answer for yourself.

Does this prove that Herbalife is a scam? Of course not.  (edited 31-AUG-2013)

Does this prove that Herbalife is absolutely, positively, without a doubt, smoking gun proof, a scam? Of course not.

Does this prove that Herbalife has shady people working for it?

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