Bill Ackman is a Selfish Jerk who is Hurting the Entire Network Marketing Profession with his Attacks against Herbalife
DISCLAIMER: Please note that I am not affiliated with Herbalife in any way but I am a proud distributor of another network marketing (multi level marketing) company.
Network Marketers Must Stick Together
Leaders in the MLM profession realize who our REAL competitors are.
The competitors are NOT other network marketing companies because we are in the same profession.
Rather, they are all the distractions that would divert your prospect’s attention to the benefits of network marketing.
Does that make sense?
It is like the National Basketball Assocation (NBA) which I used to work for before I became an entrepreneur. The NBA’s competitors are NOT really other basketball leagues. If someone is interested in another basketball league, chances are he will become interested in the NBA as well. So that is not the competition.
Instead the competition are other sports or entertainment that distract potential fans from playing basketball or watching the NBA.
For example, many kids nowadays are more interested in video games or extreme sports such as skateboarding and would spend their time in those activities instead of basketball. That is the NBA’s competition. Not other basketball leagues.
And the same applies to network marketing.
If your prospect is in another company, that is a GOOD thing because he is already OPEN to the idea of network marketing and will never be negative or give you the “pyramid scheme” objection.
That is why you should never attack another MLM company because we are in the SAME profession.
If you say another company is bad, then you are basically saying the entire profession is bad.
Your real competitor is the perception of a “secure job” and people who attack the network marketing profession.
And lately, a huge 9 headed monster who is a big jerk and enemy to network markteing has emerged.
And his name is Bill Ackman.
The Disadvantages of Being Publicly Traded
One of the benefits of being in a network marketing company that is publicly traded is that it gives you credibility when you prospect.
It is also a sign of stability that increases your belief and your prospect’s belief in the business.
However, there are downsides to being publicly traded and one of the big negatives is that once every few years, some jerk in the financial industry will start an all out public media blitz to attack a company.
These jerks may disguise themselves as “good ” but the reality is the only reason they attack a company is because they are shorting a stock and want to profit when the stock goes down.
But the reality is that they intentionally harm the profession and hurt the businesses of millions just so that they can make some money.
Who is This Jerk Bill Ackman?
Bill Ackman is the CEO and Founder of a Hedge Fund called the Pershing Group who is starting an all out media war against Herbalife just so the stock price will go down and he can profit.
If you haven’t heard about the negative things he has said about Herbalife and network marketing yet, in a nutshell, he is claiming Herbalife is a pyramid scheme that does not have legitimate product sales, etc, etc.
It is the same arguments that have been brought up and disproved over and over again. But people have short memories and Ackman hopes to scare investors to sell off Herbalife shares so that the stock will drop.
And the more the stock drops, the more money Ackman will make.
How much will Ackman make?
How about $1 BILLION USD!
Ackman has ONE BILLION DOLLARS on the line!
Yes… $1 BILLION USD!
And now you can see why he is going all out to take down a company.
Lately, he now claims that all the proceeds of his profits will go to charity.
A good question to ask him is, how about donating the proceeds to the families of the Herbalife employees and distributors that he is hurting?!
His intentions are disgusting.
I applaud the guy who took a full page ad in the New York Times to tell Bill Ackman to “get a life”
Bill Ackman is Hurting All Network Marketing Distributors
Bill Ackman is creating all this negative press that has not only hurt Herbalife distributors but others in the MLM profession as well.
He is creating negative perceptions about the great profession of network marketing and he is hurting millions of distributors for his own PERSONAL SELFISH GAIN.
Definition of “Shorting a Stock”
So how is Ackman going to make all this money?
He is “shorting” the stock and when people “short stocks”, the more the stock drops, the more money they make.
The official definition from Wikipedia:
In finance short selling (also known as shorting or going short) is the practice of selling securities or other financial instruments that are not currently owned, with the intention of subsequently repurchasing them (“covering”) at a lower price. In the event of an interim price decline, the short seller will profit, since the cost of repurchase will be less than the proceeds received upon the initial (short) sale.
So the more the the stock of Herbalife drops, the more money Ackman will make.
History Repeats Itself
The claims against Herbalife that Ackman are making is nothing new.
It is the same old claims against network marketing and every time it has happened, they have been disproved.
The first thing to realize is that the MLM profession is one of the most highly regulated industries by the FTC.
Also, many of the claims against Herbalife are the same claims against Amway in their landmark Supreme Court case in 1979.
Amway won that case and proved that network marketing (or multi level marketing) is a legitimate business model and not a pyramid scheme.
So Ackman has nothing to prove.
He just wants to scare investors who own Herbalife stock. People often have short memories or lack the full understanding of how network marketing works and tend to react and sell shares when they hear negative news.
These finance jerks like Ackman appear every few years.
Back in 2007, there was an similar attack against USANA by a convicted felon named Barry Minkow.
Barry Minkow pretended to be a Robin Hood type of whistleblower and owned the now defunct “Fraud Discovery Institute.” Minkow came out with similar arguments as Ackman and did successfully make millions of dollars as USANA’s stock price temporarily droppped.
But USANA and fellow network marketing distributors got the last laugh.
Thousands of USANA distributors became successful and achieved their dreams.
USANA’s stock recovered and the company is doing better than ever.
As for Barry Minkow?
He is back in jail for the second time and this time it is for stealing funds from a church that he was pastoring at!
Yes… these are the type of jerks that we are dealing with.
Network Marketing is just Like Every Profession
I realize that the MLM profession is not perfect and that there are many distributors who fail.
But does that make it any different than other industries?
If you take a closer look, network marketing is just like any other profession.
Every day people are deceived into joining a gym thinking they will will get in shape but only to stop going after a few weeks.
Every day people are deceived into trying a new diet with the hope they will lose weight only to give it up after a few weeks.
Every day people are being deceived to enroll in colleges with the hope of a brighter future but only to drop out after a few semesters.
Does the fact that people “failed” make these industries a scam or bad?
No!
In each case, it is the individual who chose to quit and “fail.”
And the same goes for network marketing.
People fail in network marketing because they chose to quit and fail. It is not the profession’s fault. It is the fault of the individual.
The fact that there are success stories in network marketing proves that the profession works.
If no one makes any money, then you can say maybe the profession is a scam. But since there are millions of distributors who already earn consistent income in multilevel marketing, it proves that the profession is legitimate and works.
How Ackman is Stealing People’s Fortunes
Not only is Ackman tarnishing the reputation of MLM and hurting millions of distributors, he is also stealing the fortunes of people who have invested in Herbalife stock.
Ackman claims that distributors are being deceived to join Herbalife and the “poor” are being robbed.
Perhaps Ackman should look at his own industry.
Every day, millions of people are being “robbed” of their fortunes by being deceived to invest in stocks, mutual funds or hedge funds that lose money. Just look at what happened in the financial crisis in 2008.
It is interesting to note is that if you add up all the money that is being “robbed” by Herbalife distributors , it is only a small percentage of what Ackman will EARN with this $1 Billion Dollar Short.
When Ackman brings up scams and pyramid schemes he should look at his own backyard. His hedge fund industry is one of the least regulated industries and had the BIGGEST SCAM and PONZI SCHEME of all time (Bernie Madoff).
Other Investors are Betting Against Ackman
The interesting thing with Ackman is that other people in finance are choosing to bet against him!
Regardless of Ackman’s accusations against Herbalife, other fund managers are betting against him and buying up Herbalife shares.
Ackman is hoping Herbalife tanks so that he can make money while others are hoping Herbalife’s stock increases so they can profit.
The big news last week was when the notorious Carl Ichan and Bill Ackman were live on air on CNBC and fighting each other.
If you want entertainment and watch how billionaire act like little kids and fight, go watch this video.
Much of Wall Street stopped working when it aired and watched this verbal catfight. You can hear them cheering in the background!
The fact that investors in the hedge fund industry are taking sides just shows that Ackman’s claims are ridiculous and on one cares.
Big shots in the finance world are simply using Herbalife as a pawn to make money.
You Must Help Others in Network Marketing
Network Marketing is not perfect because it is man’s invention and man is not perfect. Only God’s creations can be perfect.
So is has areas it can improve on…
But Network Marketing is still the BEST opportunity for an average person to start a career as an entrepreneur.
Network Marketing has done a lot for me and I’m eternally grateful. Not only has it created a life that I can choose and control but more importantly it has taught me valuable lessons that I have been able to apply in my personal and business life.
Network Marketing also has created many moments of happiness and satisfaction as I help other distributors achieve their dreams.
In Ackman’s world of investing, you make money when others lose money.
In network marketing, we ONLY make money when we help others make money and that was one of the reasons I chose a network marketing career.
I had read Purpose Driven Life by Rick Warren and learned that God’s purpose for me was to “have a positive impact on as many lives as possible.”
Network marketing has allowed me to help thousands of distributors and the success stories is what motivates me every morning to keep working.
What We Must Do Next
As distributors in network marketing, our best revenge againt Bill Ackman is to stay focused and continue to build our business.
Don’t let Ackman’s claims distract you from your long term goal.
Stay focused and keep building!
That was the best revenge USANA associates had against convincted felon, Barry Minkow.
Minkow may have had a short term victory and made some money by shorting USANA’s stock but he is now back behind bars.
On the other hand, hard working USANA distributors continued their USANA businesses and achieved their financial dreams.
Since Minkow’s attacks in 2007, there has been new Million Dollar Club earners, Star Diamond Directors, Diamond Directors, etc while Minkow sits in jail.
USANA distributors got the last laugh.
So keep building!
Go Make Someone’s Life Better
Our profession is already 50 years old and let’s continue to grow and make the next 50 years even better.
And unlike Ackman who steals from others to benefit himself, let’s take the higher road and go make someone’s life better instead.
Sincerely,
Simon Chan
DISCLAIMER: Please note that I am not affiliated with Herbalife in any way but I am a proud distributor of another network marketing (multi level marketing) company.
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Deb Dutcher says
Good job, Simon! I was with the company you are with when Barry Minkow attacked us. We told our teams and prospects that the products worked, the business worked and they should decide for themselves. And here we are, six years later, all doing well. I would have just one comment, people are not “deceived” into joining gyms or trying new diets, they convince themselves it could work for them. Then, they do not take the proper steps and keep the effort going. That is what happens when people fail in network marketing. They join because they like the products and business opportunity, but they fail to take the right steps and keep the effort going. You are a shining star for all network marketing. Thank you for your voice.
Ruben Garcia says
Good stuff
Laura Sterling says
Hi Simon! Great blog and thanks for sharing.
Just the fact that these guys are openly “sharing” the fact that there will be money made for the hedge fund as Herbalifes stock value goes down as historically happens when a “public company” has very bad press.
I remember a story of Dr Wentz wishing to take the company back private and the challenges our company has faced. Nope, not a perfect company and since people make companies and people aren’t perfect then neith are companies perfect.
We have to have a good intent and Faith in our partners.
Glad you alerted me of the issue, what can we do to keep Herbal Life and her partners from facing those losses?
God Bless O:)
a says
I delight in, lead to I found just what I used to be looking for.
You’ve ended my four day long hunt! God Bless you man.
Have a nice day. Bye