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Herbalife versus Amway

Do you know that Herbalife is a competitor of Amway? Now, how do they compare in their details, managers, position among the top 100 MLMs, products, number of countries where they do business, business models, annual sales, pros and cons, legal issues, and our views of them?

 

Herbalife nutrition with words 'Ipen up a world of opportunity' to signify Herbalife vs Amway
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                                                             VERSUS

 

Amway premiumquality products to signify Herbalife vs Amway
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That’s what we’re going to see using the 10 factors we draw on to write our MLM reviews.

That said, let’s dive in to see the first one.

Year of creation / Number of years of companies and other details

HERBALIFE

Herbalife was founded in 1980.

They are incorporated in the Cayman Islands and have established their world headquarters in Los Angeles, California.

If there’s something all Herbalife distributors seem to agree on it is that they work for the best company in the MLM niche. They claim the company’s products are the best on the market.

The total number of the company’s independent distributors is over 2.3 million strong.

 

AMWAY BUSINESS AND AMWAY BUSINESS OPPORTUNITY

Amway was established in 1959.

Since they wanted to manufacture their very own product to sell, Amway contracted a scientist from Chicago to design an all-purpose cleaner for them. They acquired the rights to that cleaner and gave it the name liquid organic cleaner or LOC for short.

From there, Amway designated a company called Atco Manufacturing which made their product. Eventually they bought 50% of the Atco stock and changed the company’s name to Amway Manufacturing Corporation.

With that under their belt, the company started expanding into other countries. And they were well on their way to becoming one of the most successful MLM companies in the world, actually attaining the number one position of the top 100 MLM list in the world!

Soon the company had established lines of products such as household cleaners, cosmetics, artistry, Nutrilite, epring, and XS under many different divisions.

Sponsorships

Amway has taken it upon itself to become sponsors of many different commercial entities. The DeVos family actually owns the Orlando Magic who play their games nowhere else but in the Amway Arena!

The company also sponsors Los Angeles Sol of Women’s Professional Soccer, San Jose Earthquakes Major League Soccer, and the Detroit Red Wings.

What else the company is also very active in is politics. In this wise, they support the Republican Party and have even had a distributor back in 1994, Sue Myrick

One of the company’s main mottos is, “Christian Morality and free enterprise!” This is because they are very Christian based and use biblical quotes in many of their training sessions.

Amway are very set in their ways and it would be wise to share their values and ideals to really be able to excel in the company. But a person could become very successful regardless as they are set up for success!

 

Founder(s) and/or Director(s) of the company

HERBALIFE

The company was founded by Mark Hughes.

Mr. Hughes started Herbalife by selling products out of the trunk of his car. With that, he managed to build an empire in a few short years.

All founder started the business with was a protein shake that he claimed would change the nutrition habits of the world. He got driven by this theory by watching his mother struggle with weight problems throughout her life.

Soon Mr. Hughes realized there was strength in numbers. So, he started recruiting independent distributors to help move his products on the market.

The founder set these distributors up on a direct sell multi-level marketing program.

In 2000 Mr. Hughes died of an accidental overdose. He was aged just 44. Since then the company has gone through many changes. It has even been slowly buying its stock back from the shareholders.

AMWAY

Amway on its part was formed by two gentlemen: Richard DeVos and Jay Van Andel.

It is based out of Ada, Michigan.

This company has an interesting story. In effect, Richard and Jay had been friends and business partners since childhood. They first got into the line of selling products through a company they founded and called Nutrilite.

The gentlemen started with themselves as distributors for the company. Through that, they built up a force of over 50000 distributors.

The pair introduced the multi-level marketing aspect of commissions by not only giving profits from sales to their distributors, but also a piece of the distributors’ sales below them in the pyramid.

In 1959 Richard and Jay changed the name of the company to American Way or Amway for short.

 

Position among top 100 MLM companies in the world

HERBALIFE 

Herbalife is the number three highest-grossing MLM company in the world.

AMWAY BUSINESS AND AMWAY BUSINESS OPPORTUNITY

Amway on the contrary is the number one rated multi-level marketing company in the business.

 

Products and/or services offered

HERBALIFE

Herbalife develops and sells personal care products, weight management products, dietary products, and sports nutrition products.

Their original protein shake has been the lifeblood of the company. So much so that even up to this day it accounts for over 30% of their total sales.

Billed as a replacement for meals, the protein shake is soybean-based. Now they call it a formula one protein shake.

Herbalife later on added other products to their product line. These included protein bars, aloes, vitamins, teas, and personal care products. Also available is a line of vegetarian and halal products.

The company undertakes the manufacturing of its own products in 5 facilities spread over China and the United States. It also calls on a couple of third-party manufacturing facilities around the world.

Possessing their own botanical gardens, Herbalife grows and extracts all of their ingredients for their products.

In addition, the company invented a diet plan that has been winning awards in several countries. This boasts an A rating from the Better Business Bureau.

Talking of clubs, they have many different types of them, including weight loss clubs.

AMWAY

The designing, manufacturing and selling of their first product called LOC put Amway well on their way.

Then they started adding new products to their product line. It didn’t take long for them to grow that line into one of the most successful ones of wholesale products available anywhere.

From there it was smooth sailing for them to have a lock on the market that they enjoy up to this day.

Amway now prides themselves on having well over 450 different products that are manufactured all over the world.

Wikipedia says that, “Amway brands include Artistry, Atmosphere, Body Blends, Bodykey, Body Works, Clear Now, eSpring, Glister, and iCook.”

Others are “Legacy of Clean, Nutrilite, Peter Island, Perfect Empowered Drinking Water, Personal Accents, Ribbon, Satinique, Artistry Men and XS.”

One last thing to note about them here is that they also have all of the original products in addition to the company of Nutrilite as it has gone on to be a force all by itself in the MLM niche.

 

Number of countries in which the companies do business

HERBALIFE

Herbalife operates in 95 countries with over 2.3 million independent distributors.

AMWAY

Amway expanded into other countries, becoming one of the most successful MLM companies on earth, which actually pushed them up to position number one on the list of MLM companies in the world!

 

Business model / Compensation plan

HERBALIFE

Back in the early 80’s Amway’s founder Mark Hughes set up a compensation plan for his distributors. This revolutionized the MLM niche.

In effect, he stressed selling products first and then recruiting fellow distributors to build a downline.

Under the plan, Mr. Hughes’ distributors bought the products wholesale, sold them retail and kept the difference. They also got paid from sales made by their downlines. Finally they also benefitted from many other incentive programs the company offers.

This was a new twist to the MLM compensation plan. It took the pyramid scheme out of the picture which was a good thing as any company that relies directly on recruiting without a quality product will eventually collapse. The bankruptcy comes from the fact that the former situation leaves the few members at the top financially healthy and their numerous downline broke.

We found the many reviews available online on Herbalife’s products as well as on their business model as mostly positive. Many people swear this company is the number one pick for getting involved with MLM programs. This comes from the fact that there is a 100% potential to make huge profits, and that is a huge boast!

AMWAY

Like most MLM companies, Amway rewards people for both direct sales and for recruiting new distributors they call Independent Business Owners or IBO’s for short.

They pay on several levels which include sales performance bonuses and incentives.

Amway has a whole lot of companies under its chief brand. This opens up different marketing strategies for its IBO’s. They can get into individual circles for each subdivision and create a downline over and over. This increases the potential for no cap profits.

The company also offers insurance for their distributors and all kinds of sales incentives.

Amway also organizes many different training sessions both online and live. In addition, they have conventions all over the world.

 

Annual sales

HERBALIFE 

Their sales exceed 4.5 billion.

AMWAY

Here, however they are 8.8 billion dollars.

 

Pros and cons

HERBALIFE

Pros

  • Products are intended to help people maintain healthier lifestyles
  • The weight-loss plans are fairly simple to follow
  • The shakes, protein bars, snacks and supplements are easy to take with you on the go
  • Careful monitoring of your fat and caloric intake help retrain you on how to eat and live better
  • Starting your own Herbalife business is a relatively easy feat

Cons

  • The products sold by representatives can be very expensive.
  • Products with same ingredients may be purchased at significantly lower prices at health food stores
  • Not enough scientific evidence to support the claims that taking Herbalife will make you lose weight
  • a lawsuit seeking class action status and filed on behalf of 8,700 former and current distributors as of that time & alleged that the company was merely a pyramid scheme

AMWAY

Pros

  • You won’t have to worry too much about stability with this one.
  • Their product quality is mostly outstanding.
  • A high rating from the Better Business Bureau.
  • As the most well-established network marketing company, Amway offers top-notch training materials and events for their IBOs.


Cons

  • On the business opportunity side, Amway’s reputation is all but in the crapper.
  • Throughout the decades, the company has been the target of numerous FTC investigations.
  • Being the original MLM, it’s not surprising that IBOs are heavily pressured to sell products like crazy and buy more for personal use.
  • The over-the-top Amway meetings and cult-like culture turns many people off.

 

Bans / Complaints / Legal issues

HERBALIFE

The company has had to grapple with quite a number of legal issues from the beginning.

In effect, they have been sued time and time again by several different federal agencies for making false claims on their products.

One of the court actions was that Herbalife had high levels of lead in some of their products. According to the statement, this was causing liver problems in people using their products. This allegation was however pretty much discredited in the courts as untrue.

Other lawsuits were also filed by distributors citing mismanagement of payments for their services. Fortunately the company paid over 200 million out to these distributors as settlement.

Other suits are still pending. Some of them allege that Herbalife is just a glorified pyramid scheme. For that reason, the likelihood of making a living as a distributor for this company is one in five thousand.

Despite all these setbacks, the company is flourishing and has, for the most part, survived the legal issues and is even still growing.

 

Our view of / take on the company

HERBALIFE

After reading countless reviews from many different sources we swathe necessity to give this company a thumbs up.

Of course, the lawsuits filed against Herbalife are a bit disturbing. But the company’s response has been quick and upfront. And for the most part a large number of the suits have been dismissed.

It is true that when you run a company as large as this one, you are bound to have some detractors. But on our side we have not found anything that would keep us from exploring this MLM opportunity.

The diet programs this company proposes have been rated extremely high and effective. And it is soothing to find so many reviews written by people who have had success with one product or the other!

AMWAY

Research for our review found good things about this company. Then our personal experience using Amway’s products growing up speaks volumes about them. And then living next door to a very highly successful Amway independent business owner all make us give this multi-level marketing program a huge thumbs up!

As already said, we know firsthand how the products work and how eco-friendly they are. We also were witnesses to how much our neighbor was constantly flying off here and there on trips and business ventures. What else do we need to be sure of an idea like that?

Amway proposes an outstanding product line. Besides, they back their distributors more than any other MLM company we have reviewed does. It is therefore not surprising that they hold the number one spot on the list of the most successful MLM companies in the world.

 

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You may want to read:

 

How to tell if an MLM company is good to join – From our 2019-2020 Reviews

Is An MLM Business Opportunity Better Off Worked At Home Or What?

Scentsy Review

Market America Review

SunHope

Oriflame Cosmetics Products versus Mary Kay

Independent Herbalife Distributors

Amway versus Avon

Doterra Essential Oils versus Young Living

Arbonne versus Plexus Worldwide

DXN Global versus Vestige Marketing

 

Akoli

Your personal guide to securing your future online

8 thoughts on “Herbalife versus Amway”

  1. A comprehensive breakdown of (2) of the largest MLM opportunities available today. Like many people, I’ve heard of both companies and I’ve even purchased some Herbalife product back in the ’90’s. MLM’s in general are a huge red flag for me, been there, done that and it just wasn’t for me. That said, I’m still friendly with one or two people from the MLM company I was involved in and they’re still at it going strong, so maybe it was just me.I see that you have several MLM reviews, but your most recommended program is not an MLM at all… I think that speaks volumes for the MLM industry

    Reply
    • Hey Bob,

      A comprehensive breakdown of (2) of the largest MLM opportunities available today. Like many people, I’ve heard of both companies and I’ve even purchased some Herbalife product back in the ’90’s. MLM’s in general are a huge red flag for me, been there, done that and it just wasn’t for me. That said, I’m still friendly with one or two people from the MLM company I was involved in and they’re still at it going strong, so maybe it was just me.I see that you have several MLM reviews, but your most recommended program is not an MLM at all… I think that speaks volumes for the MLM industry

      Reply
  2. Hello there, thank you so much for this very detailed and informative review on Herbalife versus amway, I understand that for a post as this a lot of concious, calculated and delibrate effort have been put into this, this will really help one make an investment decision on either harbal life or Amway.

    thanks for sharing.

    Reply
    • Hello Jomata,

      It was my pleasure sharing this review with you. Yes, to write such a piece, one must gather information on either company, and then decide which elements to compare with each other. This, all in an effort to let readers choose between two identical companies.

      Thanks for commenting.

      Reply
  3. Herbalife versus armway. There have been a major arguments and comparison between the Herbalife and Amway. Anyways they are both interesting and result oriented. This article has really opened my eyes to so many features and facts about Herbalife and Amway. I am so glad I saw this. I have been really impacted with knowledge. Thanks

    Reply
    • Hi Sheddy,

      Yes, both Herbalife and Amway have major arguments, and are interesting and result oriented, as you observed. I’m glad that my article has made you see the many features and facts about the two companies. Thanks for your contribution to this conversation.

      Reply
  4. Hey nice article you have there. Herbal life and Amway are two unique companies . The compensation plan and incentive plan set by Herbal life is akey factor to have it’s employees put in more effort to work, because when workers is fully aware that there is a compensation policy in place to compensate them in case of any disaster, they will surely give in their best for a better output. Unlike Amway that rewards base on direct sales and recruiting .

    Reply
    • Hey there,

      Thanks for your appreciation of my article. I agree with you that Herbalife’s compensation plan and incentive plan make their employees work harder quite unlike Amway where the rewards are based on direct sales and recruiting. Thanks for making this clear. It is a valuable contribution to the topic.

      Reply

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