Herbalife have produced an income statement which has been picked to shreds by someone named Christine on a forum called ‘seeking alpha’. I found out about it from this blog.
mlmtheamericandreammadenightmare.blogspot.fr/2018/01/christine-richard-explains-how.html?showComment=1517300975637#c4399961682971629541
The following is a summary-
“The article was written for the investor platform, 'Seeking Alpha,' and conforms to the platform's editorial rules
In brief, Christine explains that the 'Herbalife' mob has, in contravention of the FTC's ruling, published misleading gross-'earnings' figures for its transient adherents in the USA - conveniently excluding the vast majority of these persons (approximately 470 000) by arbitrarily defining them as 'preferred members (who had no intention of making money).'
Of the approximately 215 000 transient American 'Herbalife' adherents who are arbitrarily defined as 'distributors (who signed with the intention of making money)' only approximately 40 000 have been paid some gross-commission or appeared to have made some profitable retail sales. The approximately 170 000 so-called 'distributors' who weren't in receipt of gross-commission and who didn't make some profitable retail sales, have been ignored - allowing 'Herbalife' falsely to imply that '90% of its distributors have earned income in 2017)'
In 'Herbalife's' distorted gross-'earnings' statement there is no reference made to the adherents' operating expenses or the churn rate of adherents.
Behind the mystifying 'Herbalife' fairy story, the reality is that, of all persons under contract to 'Herbalife' in the USA during June to September 2017 (685 000), only around 300 received gross-commission payments and appeared to make some profitable retail sales and were declared as having earned in excess of $14 000 gross during this period.
Therefore, the actual % of American 'Herbalife' adherents (no matter how they were arbitrarily defined in their contracts) who managed to generate any net-income from their so-called 'businesses,' is almost too small to calculate, let alone be of significance.
Since the 'Herbalife' racket was first instigated in 1980, it has been estimated that a never-ending chain currently comprising more than 60 millions persons have signed annual contracts with its front companies around the world. The overwhelming majority of these transient persons were arbitrarily defined in these reality-inverting documents as 'distributors/independent business owners.' “