Comments on: What is Herbalife doing? http://www.themlmattorney.com/what-is-herbalife-doing/ Premium services from an MLM attorney Thu, 02 Feb 2012 15:11:39 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Kevin Thompson http://www.themlmattorney.com/what-is-herbalife-doing/comment-page-1/#comment-18 Kevin Thompson Tue, 23 Feb 2010 13:05:14 +0000 http://www.themlmattorney.com/?p=47#comment-18 David, If Herbalife is not able to dismiss the case on procedural or legal grounds, there's no way this case is being tried in California. I'm wondering if the attorneys for Ford would consider filing a class action against Herbalife if they prevail in their current case. They could make the same arguments. David,

If Herbalife is not able to dismiss the case on procedural or legal grounds, there's no way this case is being tried in California. I'm wondering if the attorneys for Ford would consider filing a class action against Herbalife if they prevail in their current case. They could make the same arguments.

]]> By: David Steadson http://www.themlmattorney.com/what-is-herbalife-doing/comment-page-1/#comment-17 David Steadson Tue, 23 Feb 2010 11:13:54 +0000 http://www.themlmattorney.com/?p=47#comment-17 Interesting stuff - the problem Herbalife has is the <i>incentives</i> inherent in the plan to inventory load. It's quite significant that you *permanently* lose a downline if they qualify supervisor before you. In the Amway model if someone qualifies supervisor (or any other level) before you, there's usually no significant loss, and even in the rare circumstance where there is, it's not permanent - the downline is never permanently removed. So there's really quite strong incentive there for a Herbalife distributor to purchase products not for the products, but to qualify as a Supervisor. Not good. Interesting stuff – the problem Herbalife has is the incentives inherent in the plan to inventory load. It's quite significant that you *permanently* lose a downline if they qualify supervisor before you. In the Amway model if someone qualifies supervisor (or any other level) before you, there's usually no significant loss, and even in the rare circumstance where there is, it's not permanent – the downline is never permanently removed.

So there's really quite strong incentive there for a Herbalife distributor to purchase products not for the products, but to qualify as a Supervisor.

Not good.

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