I do appreciate the analysis and the message of the post that the total sales can mask problems, however neither of the examples are failures. Herbalife may expand to other products instead of additional companies. Amway, probably the most successful implementer of Herbalife's multi level marketing scheme, is over 50 years old and worth $11+ billion. Even the fictitious waffle shop can adjust by selling other products. In short, creating a large distribution chain and reaching to many customers is tremendously valuable. The company can leverage that base and move to a sustainable model. If you're as successful as Groupon, you'll have plenty of runway to try different things.

Even the ficticious waffel