Watch Betting on Zero

Betting on Zero is a documentary film directed by Ted Braun that dives into the world of multi-level marketing and pyramid schemes. The film revolves around the story of Bill Ackman, a hedge-fund manager who has been publicly crusading against Herbalife, a company he believes is a pyramid scheme. The film opens with a scene from one of Herbalife's extravagant rallies, complete with dancing, cheering, and motivational speeches. However, as the camera pans out, we see the reality of the situation - a mostly empty arena with a few die-hard Herbalife distributors who are living in hope of making it rich. The contrasting images set the tone for the rest of the film, where we see the glittering facade of multi-level marketing tactics and the financial ruin it causes for those at the bottom.

The film then delves into the history of Herbalife and how it has been accused of being a pyramid scheme for decades. The company had been previously investigated and fined by the Federal Trade Commission, which had called for it to restructure its business model. However, Herbalife managed to negotiate a settlement that allowed it to continue operating as long as it made some minor changes.

The main focus of the documentary is Ackman's attempt to take down Herbalife. The hedge-fund manager is depicted as a no-nonsense, formidable opponent who has done his homework on Herbalife's business model. Ackman's theory is that the majority of Herbalife's revenue comes not from selling products but from the recruitment of new distributors. He alleges that the company preys on vulnerable individuals, convincing them that they will make a fortune by joining its network but invariably, many who join end up losing money.

Braun's documentary is not just about Herbalife, but also about the regulatory systems that allow pyramid schemes to operate. The film argues that pyramid schemes are still prevalent because the rules governing them are not clear, and the authorities are not doing enough to protect consumers. Braun interviews former distributors and their families who have lost everything investing in Herbalife, and the stories they tell are both shocking and distressing.

The film also takes the audience into Ackman's world, showing the financial pressure he is under to make his bet against Herbalife pay off. Ackman wagered a billion dollars that Herbalife's stock would crash, a move that put his reputation and his hedge fund's financial stability on the line. Braun highlights the difficulties of short selling, which involves borrowing shares from investors, selling them, and hoping that they will decrease in value, allowing the short seller to rebuy them at a lower price and return them to their original owners, while pocketing the difference as profit.

The documentary builds the suspense, leading up to Ackman's big reveal when he takes his case against Herbalife to the public in a special event in New York City. The event is live-streamed to investors all over the world, and the footage of Ackman delivering his damning verdict on Herbalife's business model is both dramatic and chilling.

However, as the documentary progresses, viewers will realize that the story is not as straightforward as it seems. Braun includes interviews with Herbalife distributors who see the company as a lifeline, giving them hope and providing them with support that is difficult to find elsewhere. These distributors believe that they are offering a valuable product and service to their clients and that their success stories are being overlooked by the media and the authorities.

In conclusion, Betting on Zero is a compelling documentary that raises important questions about the ethics and legality of multi-level marketing companies. Braun's film offers a thorough investigation of Herbalife's business model and shows the impact it has had on people's lives. The documentary also highlights the limitations of regulatory systems, which are often not equipped to deal with the complexities of modern-day financial schemes. Betting on Zero is a must-watch film for anyone interested in the dangers of pyramid schemes and multi-level marketing businesses.

Betting on Zero is a 2017 documentary with a runtime of 1 hour and 38 minutes. It has received mostly positive reviews from critics and viewers, who have given it an IMDb score of 7.2 and a MetaScore of 72.