MLM Companies
Herbalife Review 2026
Global nutrition MLM — FTC settlement led to restructured compensation
Last updated: March 26, 2026
What 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
Potential for ongoing passive income
Simplicity
2.0
Easy to understand and execute
Transparency
2.0
Clear about costs, requirements, and income
Community & Support
3.5
Quality of training and community
Value for Money
3.5
Worth the investment
Overall Rating
2.2
Frequently 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.