Compare and contrast the Herbalife financial model to that of one of the multi-level companies

A Financial Case History

Multi-level marketing companies often rely on complex financial models in order to build their business. The financial structure is often what distinguishes between a legal multi-level marketing organizations from illegal pyramid schemes.

Research the company Herbalife and their financial model.

Write a two page paper in which you respond to the following questions:

• Is Herbalife a legal multi-level marketing company or an illegal pyramid scheme? Cite evidence regarding their financial model to support your answer.
• Compare and contrast the Herbalife financial model to that of one of the multi-level companies in this week’s Discussion Question in terms of overall structure, legality, and ethics.
• Why does Herbalife appeal to prospective entrepreneurs?

Solution: