A technical question on Herbalife for Mikeo: What happens to distributorships on the death of the distributor?

This is a question for those who have spent too much time thinking about good versus not-so-good multi-level marketing schemes. 

I apologise in advance for the very narrow subject matter.

@mikeo188 is an anti-Herbalife account on Twitter. (S)he is very well informed seeming to know the news from the anti-Herbalife camp before it is public.

As someone who is long Herbalife (and has done considerable work) I still take Mikeo seriously. It is Bronte’s policy to seek out opponents of our views so we can test their arguments.

Mikeo asked me if I had seen the ESPN piece on Advocare. Sure.

Then asked me what the difference between Advocare and Herbalife was. I said plenty if you looked on the ground (and I have looked on the ground).

But I want to ask a question in response.

Herbalife and Advocare have very different policies as to what happens to the ownership of a distribution business on the death of a distributor.

Here is the Advocare policy:

It is in the full document somewhat more complicated – but the sentiment is that a distributorship ends at the death of the distributor and the upline distributor then gets the income. It is very hard to maintain a distributorship even with an active will.

And here is the Herbalife rule which allows a period of distributor inactivity in which continuity rules do not apply:

The Herbalife rules are designed to ensure the continuity and inheritability of the business.

To the people who claim to have done all this research into Herbalife – can they please explain why Herbalife has such different rules?

John