Herbalife Stock Down 24% on Friday

A 24% plunge in Herbalife Ltd.’s stock Friday, after the supplement maker’s announcement that it expected slower sales growth in Mexico, illustrates the rising importance of foreign markets to the bottom line of U.S. direct-sales companies.

Direct-sales or multilevel marketing has been used for decades to peddle goods as diverse as plastic containers and cosmetics. Century City-based Herbalife, for example, sells nutritional supplements directly to customers, who in turn help sell them to acquaintances, friends and family in exchange for commissions and discounts.

A world of risk for direct sales - Los Angeles Times