Betting on Zero Page #4

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be a supervisor,

But you'll have

five supervisors under you

Who'll have five supervisors

underneath them

Who'll have five supervisors

under them.

That's 155 supervisors.

And if they're each doing

about 2,000 to 2,500

volume points a month,

You're gonna be making

somewhere in the neighborhood

of $42,000 a month.

Keep:
In fact, building

the downline and product

purchases are required

In order for you

to be eligible for income.

So, only about 17%

of all distributors

Are eligible to earn anything

from herbalife.

According to herbalife's

earning statements,

of those 17%,

We know for sure,

30% or so will earn zero.

And approximately

48% will earn

$1,000 or less gross

earnings for the year.

Once we deduct expenses,

And consider the fact that

they have to maintain

a purchase volume,

The net income is negligible.

Ackman:
You're deceived

into believing that this is

a good business opportunity

When, in fact,

you're selling a shake

For three or four times

the price of slimfast.

People can buy that

in their supermarket.

And those $3,000, $4,000,

$8,000 inventory purchases,

Inventory that's sitting

in your garage

that you can't sell,

Are fueling paychecks

for people

At the very, very top

of the pyramid

Who have hundreds of

thousands of people

beneath them.

The top 50

herbalife distributors make

Three, five, seven,

10-plus million dollars

a year.

Hence it is robin hood

in reverse.

Wapner:
But he claims today,

He has hundreds of

hours of video, audio,

Documents to support

his claims.

On some level,

you must be worried.

Desimone:
I'm not worried

about the substance

of what he has.

This is anecdotal,

it's very propaganda based.

What he's missing is that,

fundamentally,

We've got

millions of customers

that enjoy the product,

That use the product,

that's indisputable.

We actually had a release

today from a former ftc...

Keep:
What we don't really

have good information on is,

Do herbalife purchases

translate into sales

To customers

who are not also distributors

of herbalife?

Or are herbalife purchases

a mechanism

for sustaining recruitment

And sustaining commissions

that have little to do

with outside customers.

What the research shows is

that the majority

of our distributors

Come and become distributors

Because of their affinity

with the product,

And they want to achieve

a product discount.

So, effectively,

what they want to do

Is become distributors

almost like members, right?

Club members,

just like in costco.

The lack of evidence,

In terms of

what portion of products

Ever leave herbalife's

distribution channel,

Is part of the criticism

And part of the wonder

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