Did Herbalife Ltd. Just Confirm it Doesn’t Value Actual Sales?

Did Herbalife Ltd. Just Confirm it Doesn’t Value Actual Sales?

The following has been sent to ValueWalk by a very trusted source on Herbalife

An extremely interesting development with Herbalife Ltd. (NYSE:HLF). They have decided to shut down ALL independently run Herbalife retail websites , effective October 8th.

Some background on internet sales – in the past Herbalife Ltd. (NYSE:HLF) distributors were able to sell on the internet with some rules, such as no one can use auction sites or use paid search terms on google. Despite these limitations, some HLF distributors were able to create/design websites that were highly effective at producing sales.

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From what we hear, this new rule (which is being enacted to “maintain the integrity of the brand” – noticed attached) will suffocate a number of HLF distributors who have found a way to sell directly to consumers that only have an interest in the product, not the business opportunity. These distributors typically sell at huge MSRP discounts and with no shipping. As a result, we hear anecdotally they account for a large percentage of HLF’s total sales and rake in tens if not hundreds of millions of dollars annually.

Some of the HLF distributors are so upset, that they have created on their own a website to highlight and condemn the change: http://www.herbalhappy.com/. These people feel that they created a succe