MLM Companies
Herbalife Review 2026
Global nutrition MLM — FTC settlement led to restructured compensation
Residual Income Rating
2.2 / 5Last updated:
March 26, 2026What is Herbalife?
Global nutrition company selling weight management, protein shakes, supplements, and personal care products. Known for Nutrition Clubs where customers consume products on-site. Settled with FTC for $200M in 2016 over business practice concerns, leading to compensation plan restructuring.
Pros
- 45 years in business with no missed commission payments
- Strong global brand recognition
- Real nutrition products with genuine consumer demand
- Nutrition Club model shows real product consumption
Cons
- Low per-customer residual (~$12.50/mo at entry level)
- Rank/rate drops if volume falls below threshold
- $200M FTC settlement (2016) required comp plan changes
- Complex multi-tier structure
Rating Breakdown
Residual Income
2.2 / 5Simplicity
2.0 / 5Transparency
2.0 / 5Community & Support
3.5 / 5Value for Money
3.5 / 5Overall Rating
2.2 / 5Frequently Asked Questions About Herbalife
Is Herbalife a pyramid scheme?
Herbalife is a legal MLM company. The FTC investigated and reached a $200M settlement in 2016, requiring business practice changes but NOT classifying it as a pyramid scheme. The company restructured its compensation to focus more on retail sales.
How much can you make selling Herbalife?
New distributors earn 25% retail profit. Supervisors (50% discount level) can earn up to 50% on retail sales plus royalty overrides on team sales. Per-customer monthly residual is approximately $12.50 at entry level, higher at Supervisor rank.
What happened with the Herbalife FTC settlement?
In 2016, Herbalife paid $200M to settle FTC charges about misleading income claims. The company was required to restructure compensation to ensure distributors are rewarded for actual retail sales, not just recruitment.
Quick Facts
Founded1980
HeadquartersLos Angeles, California
FTC Settlement$200M (2016)
Business ModelMulti-level marketing
Key ProductsFormula 1 Shake, Nutrition Clubs
Public CompanyNYSE: HLF
📖 FREE EBOOK
The Residual Income Shortcut
Tired of MLM math that never adds up? This free guide shows the model that replaced a 600-person team with 24 customers.
No credit card required
Related Companies
Report an Inaccuracy
Spot something out of date or wrong on this page? Tell us and we will check it.