The Pros & Cons of Purchasing... Herbalife Products on the Secondary Market © Copyright 2014 by Global Marketing Consultants - All Rights Reserved No portion of this book may be copied, reproduced, or sent electronically without the express written consent of the Copyright Holder. For questions regarding reproduction rights, please contact: SystemsAndTools@gmail.com Disclaimer: The material in this book reflects the thoughts and opinions of its author and publisher. This booklet is not an official Herbalife Publication and the material contained has neither been reviewed or approved by Herbalife International. Introduction Do you want to hear something really bizarre? In a recent update to their Policies & Procedures, Herbalife International added a strange new policy which operators of their popular Nutrition Clubs must abide by. According to this decree, operators of Herbalife Nutrition Clubs must destroy any and all empty product containers before placing them in the trash. Why would Herbalife mandate such a policy? Turns out, many of the Company's Nutrition Clubs were being targeted by professional "Dumpster Divers" who would collect the empty canisters and bottles. Reportedly, these empty bottles and canisters were being refilled with cheap, generic ingredients - and these fake Herbalife products were being sold to unsuspecting buyers on websites such as Craig's List and eBay. Dumpster Diving is an extreme example of the lengths which people will go to profit off the Herbalife brand. However, it is by no means the only way that online bargain hunters are being taken advantage of. The sad fact is, a significant percentage of the Herbalife products that are being sold on popular internet shopping sites are either stale, expired, or counterfeit. To make matters worse, it's virtually impossible for online shoppers to determine which products are "fresh" - and which ones are of "questionable quality". How can you protect yourself? In this booklet, we are going to teach you how to avoid the many pitfalls that cost conscious Herbalife Customers are likely to encounter when shopping online. Armed with this "insider information", you will know how to quickly and conveniently acquire genuine, factory fresh Herbalife products at prices that will keep you coming back for more! Chapter One "Show me the ShakeFax" In the mid 1990s, a Company called CARFAX forever changed the "Used Car Business" when they launched a website which allowed used car buyers to view a vehicle's history report prior to making the purchase. By ordering an inexpensive CARFAX report, prospective purchasers could verify the car's mileage, view the vehicle's accident history and make certain that there were no "issues" with the title. With the help of CARFAX, thousands of crooks, scammers and unethical sellers were put out of business. Wouldn't it be great if something similar to a CARFAX was available for all of our day-to-day purchases? Wouldn't it be great if you could get a "background report" on each bottle or canister of Herbalife product that you were contemplating purchasing from an unknown seller? My guess is, if you could trace the history of the Herbalife products that are available on the "secondary market", you would be reluctant to purchase the majority of them. To demonstrate my point, let's take a quick peek at the information which a background report might turn-up on three identical looking cans of Herbalife's Formula One Shake mix. We will call these hypothetical background reports a "ShakeFax." Canister A Canister B Canister C ShakeFax Report Canister A Product Name: Herbalife Formula One Shake Mix Flavor: Chocolate Date of Original Purchase: 05/04/2013 Product History: 5/4/2013 This product was purchased by an Independent Herbalife Distributor and was shipped to Las Vegas, Nevada. When the product arrived, the purchaser was out of town, and the shipment sat on their front porch for four days. 5/10/2013 The product was moved to a non air-conditioned, metal storage shed in the purchaser's backyard. Daytime temperatures inside the shed typically surpassed 140 degrees. 10/7/2013 Needing to raise some money for an unexpected car repair, the distributor listed his entire Herbalife inventory on Craig's List at deeply discounted prices. The advertisement emphasized that the product was less than six months old. 10/10/2013 The product was purchased off Craig's List by Owner #2 who transported it to San Jose, California. 11/1/2013 Owner #2 listed the Canister on EBay. The listing described the product as being "Genuine" and "Factory Sealed". The seller had a 98% positive feedback rating. 11/6/2013 The Canister was purchased by a bargain hunter from Louisiana who consumed the product and left the seller a "Positive Feedback Rating". Question: Knowing the product's history, would you feel "comfortable" consuming this Canister of Formula One Shake Mix? ( ) Yes ( ) No ShakeFax Report Canister B Product Name: Herbalife Formula One Shake Mix Flavor: Chocolate Date of Original Purchase: 07/08/2012 Product History: 07/08/2012 The product was purchased by a newly enrolled Herbalife distributor as part of their initial start-up order. It was shipped to the purchaser's office in Atlanta. 07/10/2012 Since this product's original purchaser was reluctant to tell his spouse about his new business endeavor, the product was stashed in the trunk of his car where it remained for nearly one year. 06/5/2013 The product was placed in the "Collection Bin" outside an Atlanta area Salvation Army Thrift Store. 06/11/2013 The Canister was purchased from the Thrift Store by an entrepreneur who was looking for products that he could "flip" on EBay. 06/14/2013 The Canister was listed on EBay by a seller with a 100% Positive Rating. The listing described the product as being "Genuine" and "Factory Sealed" . 06/21/2013 The Canister of Shake Mix was purchased by a Bargain Hunter from Orlando, Florida who gave the seller a "Positive Feedback Rating". Question: Knowing the product's history, would you feel "comfortable" consuming this Canister of Formula One Shake Mix? ( ) Yes ( ) No ShakeFax Report Canister C Product Name: Herbalife Formula One Shake Mix Flavor: Chocolate Date of Original Purchase: 03/11/2014 Product History: 03/11/2014 This product was purchased by an Herbalife distributor who was planning an advertising campaign in his local newspaper. It was originally shipped to Portland, Oregon. 03/16/2014 When the advertising campaign didn't produce the anticipated results, the distributor was left with some excess inventory. Needing to quickly recoup his money, the purchaser immediately asked his brother- in-law to list the product on EBay. The listing described the product as "Genuine" and "Factory Sealed". 03/17/2014 The product was purchased and consumed by a Bargain Hunter in Seattle, Washington. The seller was given a "Positive Feedback Rating". Question: Knowing the product's history, would you feel "comfortable" consuming this Canister of Formula One Shake Mix? ( ) Yes ( ) No How do your answers compare with other respondents? If you are like most health conscious consumers, you checked the "NO" box on Canisters #1 and #2 - and the "YES" box on Canister #3. Canister's #1 and #2 are usually deemed "unacceptable" because they were not stored in a "cool dry place" as the Company recommends. Canister #3 is usually considered "OK" - because there is nothing "negative" in the product's history. If you were able to purchase Canister #3 at a good price, you would have found yourself a true bargain. Here lies the problem... It has been estimated that up to 50% of the Herbalife products that are listed on popular Auction Style Websites have a history which would make them "undesirable" if the true facts were known. This means that purchasing Herbalife products from popular Auction Sites is like "rolling the dice". No matter how careful you are, and no matter how reliable the seller seems to be sooner or later you're going to receive products of questionably origin. If all the facts were known, you would probably not want to put them in your mouth. Mind you, it's unlikely that you will become "sick" or "ill" from consuming stale or expired items. However, you certainly won't get all the "benefits" that you have come to expect from fresh, unadulterated Herbalife products. Chapter Two What About sites like Amazon? Amazon.com is a popular place to buy a wide variety of merchandise. The prices are great and so is the service! But Amazon.com is NOT the best place to buy Herbalife products. That's because many of the same problems and pitfalls that apply to buying Herbalife products on Auction Sites also apply to online retailers like Amazon. To understand why, let's examine the three "purchasing options" that you are likely to encounter when shopping for Herbalife products on Amazon. Option #1: Third Party Sellers To many people's surprise, Amazon doesn't actually "own" or have "physical possession" of much of the merchandise that is listed for sale on its website. Instead, Amazon allows "third party sellers" to display their goods on the Amazon.com website. When an Amazon Customer places an order for this "third party merchandise", Amazon collects the money and transmits the purchaser's shipping information to the seller. The "third party seller" then fulfills the order from their own inventory. As compensation, Amazon keeps a percentage of the sales price. The problem with this practice is that neither you, nor Amazon have any way of knowing where this "third party seller" obtained their Herbalife inventory. Furthermore, neither you nor Amazon has any way to ascertain the age of the product or how it has been stored. For all we know, the "third party seller" on Amazon - could have purchased the merchandise from a seller on EBay - who picked it up off an advertisement on Craig's List. Without the benefit of our hypothetical "ShakeFax", there is no way to protect yourself. Option #2: Fulfillment by Amazon Some of the Herbalife products listed on Amazon.com state that the "order fulfillment" will be handled directly by Amazon. In some instances, Amazon Prime Members get free shipping! To the untrained eye, it may appear that Amazon itself has purchased products directly from Herbalife, and is reselling them on their website. This illusion might give unsuspecting buyers a "false sense of security". Don't be fooled! If Amazon is fulfilling the order, it simply means that the "product's owner" has sent their inventory to an Amazon Distribution Center, and Amazon is collecting a fee for warehousing the product and fulfilling the orders. In such instances, neither you nor Amazon have any way of knowing the product's history. For all we know, some of the product that is being fulfilled by Amazon could have sat in the trunk of someone's car for six months prior to being sent to Amazon. Option #3: Order Fulfillment by Herbalife Occasionally, an enterprising Herbalife distributor will advertise products on Amazon that they have not yet purchased from Herbalife. In the product's description, the Distributor/Seller will state that the merchandise will be shipped directly from an Herbalife warehouse. When you place an order for this Seller's merchandise, Amazon will collect your money and provide the Distributor/Seller with the details of your order. The Distributor/Seller will then instruct Herbalife where to ship the products. On first thought, this may sound like the perfect option! You can save yourself some money. Plus, since the product will be coming directly from an Herbalife warehouse, its guaranteed to be genuine and fresh. Unfortunately, Herbalife strictly prohibits its Distributors from using this sales tactic, and their "Corporate Compliance Department" constantly monitors sites like Amazon for distributors who are violating the rules. This means that if an Amazon Seller is stating that your order will be drop shipped to you from an Herbalife warehouse, they are blatantly violating their Herbalife distributor agreement - and it's only a matter of time before Herbalife's Compliance Department will suspend or terminate their distributorship. That's bad news for buyers because if you place an order through such a seller, and if that seller's Distributorship is terminated prior to the time that your order is processed by Herbalife, you will NOT receive your merchandise! Thankfully, Amazon will eventually refund your money. But, that may take some time. And while you are waiting for your refund to arrive, your money will be tied-up, and you will have no product to show for it. For all these reasons, we cannot recommend buying Herbalife products on Amazon.com. The potential pitfalls far outweigh the benefits. Chapter Three What about Google? When looking for a place to purchase Herbalife products online, many people simply punch the words "Herbalife" or "Herbalife Products" into their favorite internet search engine. Doing a Google Search will typically generate tens-of-thousands of websites and stories relating to Herbalife. Located above and to the right of the search engine's findings will be numerous "Paid Advertisements". Ironically, Amazon and eBay are two of the biggest purchasers of these "paid advertisements". You will also find advertisements which have been paid for by legitimate Herbalife distributors who are looking to expand their customer base. When you click on an Herbalife distributor's "paid listing", you will be redirected to their personal Herbalife website. Search Engine Advertisements can be a convenient place to find a legitimate Herbalife Distributor who is selling genuine Herbalife products. My biggest concern would be, "Are the products fresh?" This is a valid concern because some legitimate Herbalife distributors have large amounts of inventory on hand, and it can sometimes set on their shelves for a lengthy period of time. The good news is, there's an easy way to protect yourself! Any time you are considering purchasing products from an Herbalife Distributor's Website, you can insist that your order be drop-shipped to you directly from an Herbalife Corporate Distribution Center. If the Distributor is agreeable, you are guaranteed to get factory fresh products. If they are unwilling to honor your request, you can simply take your business elsewhere. The biggest drawback to purchasing products from websites that are being advertised on the search engines is "Price". In order to recoup their advertising expenses, these websites will often times charge a premium. If you are accustomed to paying eBay or Amazon prices, you may be in for some "sticker shock". If you would a prefer a more attractive alternative, pay close attention to the strategy which is outlined in Chapter Four. Chapter Four Where is the Best Place to Shop? Now that you are aware of the pitfalls that you may encounter when purchasing Herbalife products online, let's talk about how you can safely and securely get genuine, factory fresh Herbalife products at prices that will satisfy even the most cost-conscious consumer. While gathering information for this booklet, we came across a multitude of Herbalife Distributor websites which were offering products at a wide range of prices. In some instances, we found genuine, factory fresh products at better prices than what products of questionable origin were selling for on eBay and Amazon. This means that if you are a cost-conscious consumer, and if you are intent on finding a bargain, you don't have to resort to buying your products from "questionable sellers" on the secondary market. Instead, you simply need to "shop around". Unfortunately, "shopping around" is a bit more complicated than what it sounds. That's because Herbalife's policies and procedures strictly prohibit legitimate Herbalife Distributors from posting their prices on WebPages that are not "pass code protected". This means that if you want to compare prices, you must first establish communication with the individual Distributors who are operating the various sites that you want to compare. Once you have done so, they can then share their pricing information with you. Typically, these Distributor websites will contain a form which you can use to initiate a conversation. When doing price comparisons, it's important to note that each time you request information, you become "fair game" for that distributor to pursue as a Customer. Like it or not, you could get multiple phone calls and emails from them. They may even pass your contact information on to other members of their distributor organization. To make matters worse, if you want to compare prices on a dozen different sites, you could end up with a dozen different people pursuing you as a Customer. While I can't speak for you, I personally wouldn't want to have that many people hounding me to buy products. The good news is, there is a simple solution to this problem! While researching the content for this booklet, our team of investigators corresponded with the owners of countless Herbalife websites. If a Distributor's website appears on the first 100 pages of Google results, it's likely that we talked to them. As a result of this investigation, we know which websites "cost conscious" Consumers will find the most attractive. We also know which ones have the most Customer Friendly terms and conditions. We even went so far as to "rank" the top sites. The site which currently tops our list does so for a variety of reasons. They understand the importance of "pricing". All product orders are drop shipped from the nearest Herbalife Distribution Center. This means that you are guaranteed to receive genuine, factory fresh products. All products come with a 100% money back guarantee. In addition, the owners of our Top Ranked Site also make the following promises: Unless you specifically request otherwise, they promise not to contact you by telephone. They promise that they will make no attempt to enroll you as an Herbalife Distributor. They promise not to bombard you with emails. At most, you will receive an Order Confirmation, a Thank You note, and an occasional email newsletter (which you can opt out of at any time.) They promise not to share your email address or contact information with any third party. In other words, our Top Ranked Site offers cost conscious customers the perfect shopping experience! You get all the benefits that might be associated with shopping on eBay or Amazon, without the downside risks. Plus, no one is going to "pester you" to order more products - and no one will "pressure you" to become an Herbalife distributor. What's the name of our #1 Ranked site? Our original intention was to reveal the top ranked website in this booklet. However, since a new website could pop-up tomorrow, and since it could theoretically rank even higher, we chose not to include the list in this publication. Instead, we decided to reveal the latest rankings on a website that could be updated on a moment's notice. To see which Herbalife Website is our current "Top Pick" - and to learn who to contact for specific pricing information - visit our website. The url is: www.inside411.com The information that you are looking for will be prominently displayed on the Home Page. Summary In this booklet, you were shown how to keep from getting "ripped off" when purchasing Herbalife products online. Following is a summary of the most important points that were discussed: A significant percentage of the Herbalife Products that are being sold on popular internet shopping sites are either stale, expired or counterfeit. Purchasing Herbalife products from popular Auction Sites is like "rolling the dice". No matter how careful you try to be, sooner or later you are going to receive products that - if the facts were known - you would probably not want to put in your mouth. Many of the same problems and pitfalls that apply to buying Herbalife products on Auction sites also apply to online retailers like Amazon. If you use Google to search for Herbalife products, a variety of "Paid Advertisements" will typically accompany your search results. In order to offset their advertising costs, the sites which are being heavily advertised tend to charge "higher prices" than what you might find on sites that don't advertise. When you purchase products from an Herbalife Distributor's website, the only way to guarantee yourself that the products are "Fresh" is to insist upon having the products dropshipped to you from an Herbalife Distribution Center. Herbalife Distributors can only display their prices on WebPages that are pass code protected. To receive an Access Code, you must personally correspond with the sites' owner. As part of our research for this booklet, our team corresponded with the owners of dozens of different websites. Based on the information which was uncovered, we then ranked the various sites based on criteria that a typical cost conscious Customer would find important. If you would like to see which site tops our rankings, this information is available on our website: www.inside411.com In closing, we would like to thank you for taking the time to review this book. Herbalife has awesome products, and our hope is that with the help of this information, you will always endup with genuine, factory fresh merchandise - at prices that will allow you to "steer clear" of the unscrupulous sellers that are often times lurking on the secondary market.