Stop tarring all MLM companies with the same Brush!! - letter

There has been a lot of debate in the media recently about Multi Level Marketing (MLM) companies, and the authorities here have gone to the extent of advertising heavily on the purported evils of this practice – just because one errant company managed to dupe a lot of Sri Lankans into its scheme.

Since I have been heavily involved in that industry while living in Australia, I felt that it would be timely to give my thoughts on this debate. I will restrict myself only to the company I represented – Herbalife, which is headquartered in Los Angeles, USA. I must stress that this article is merely to present facts on one particular company in the public domain and has no other ulterior motive.

The entry of Herbalife into Sri Lanka (if and when the Government and the company decide it is time) will not only provide additional part-time and full-time self-employment opportunities, but will also uplift the general well-being of the population. Herbalife is a premier nutrition and weight management company, offering life-changing products and an unparalleled business opportunity. Founded 27 years ago by a young visionary called Mark Hughes, it is now present in 64 countries with in excess of 1.5 million Independent Herbalife Distributors (IHD’s), who are extensively trained in what the products do and operate from home around their family and regular work commitments.

In 2004, Herbalife had its Initial Public Offering on the New York Stock Exchange (NYSE:HLF). The company’s turnover in 2006 was in excess of US$ 3 billion!! From 2007 onwards, in addition to sponsoring many other sports events like beach volleyball, triathlons, marathons etc, Herbalife has taken on a multi-million dollar sponsorship of the Los Angeles Galaxy football team, whose star player is David Beckham.

The Herbalife Family Foundation (HFF), first set up in 1994 by the visionary Herbalife Founder Mark Hughes, with the express intention of assisting the worlds’ needy children, now extends to virtually every country in which Herbalife operates in. The Casa (House) Herbalife concept of orphanages continues to spread around the globe. HFF contributes regularly to the Save The Children, SOS Childrens’ Villages and American Red Cross. More than US$6.5 million has been contributed over the years – monies collected from Independent Herbalife Distributors and the corporate headquarters.

The Executive Team is led by Chairman and Chief Executive Officer Michael Johnson, who is an ex-President of Walt Disney International in a career spanning 17 years with that company. He is ably assisted by five senior executives, many of them ex-employees of the Walt Disney Corporation.

So what makes Herbalife unique? Its products of course! They are developed based on extensive research conducted in Herbalife’s labs and are produced under the most stringent quality controls - and they are all herbal-based! Most of Herbalife’s products are PREVENTIVE ones – ie you won’t have to go to a doctor for medication because you are PREVENTING your body getting diseased. The base premise is that our bodies get diseased as a result of “free radicals” damaging our cells. So, if we protect our bodies against these elements, which are present in our diets, lifestyles, environment etc, we have a better chance of avoiding infection.

The range includes weight control products, metabolism boosters, appetite suppressants, nutritional snack options, energy and fitness enhancers, targeted nutrition products like heart health, women’s and men’s solutions, childrens’ health, healthy ageing, digestive health, immune solutions and stress management.

On the business opportunity side, I personally know people in the organisation who are earning in excess of US $ 20,000 per month (in fact I know one or two who earn far in excess of those amounts!). This does not come easily. One has to create both a retail business and a phalanx of distributors who are building organisations under themselves. This is done by careful nurturing and coaching – skills which are imparted at regular training sessions conducted by people who are successful in the organisation.

So, my question to the authorities is that if sixty-four countries (including India, China and Malaysia – which would have been a nightmare to enter) have granted Herbalife permission to do business in their territories, why is Sri Lanka hiding behind one obvious scam organisation’s record here to sully every other bona fide company with the same tarred brush?

We are not only talking a healthy nation, but an increasingly wealthy one achieved with little cost or effort. Over to you Honourable Ministers of Finance and Health!

- Suresh Murugaser