Herbalife is a renowned health and wellness company that was founded by Mark Hughes in 1980. It is one of the handful companies that has traded on a major stock exchange. The company has presence in more than 80 countries with a global network of more than 2 million representatives (Herbalife Independent Distributors). There has been a lot of internet talk, both positive and negative, concerning joining Herbalife as a way to make money. The best practice is to have a comprehensive review of the business background, before investing into it. However, the truth stands out that this company is not a scam. Should it be a scam, it could have collapsed many years ago.
The Herbalife International is a 30-year-old multi-billion dollar company. The company manufactures wellness and nutritional products including protein shakes, energy drinks, snacks and fitness drinks. It also makes vitamins and dietary supplements for skin and hair care. You can’t purchase any product from the store. The only way to make the purchases is via a distributor.
The Herbalife Compensation Plan
Like many other established MLMs, the company uses “stairstep breakaway” compensation plan. Here is a simple analysis of the program.
– To become a distributor, you pay around $50 for startup fee. Being a distributor, you are entitled to a 25 percent discount on product purchases.
– A distributor may be promoted to become a senior consultant, and this requires a purchase of $300 worth of products. A senior consultant can be promoted to Success Builder after making a purchase worth $580.
– A success builder can be promoted to become a supervisor. This requires making a purchase worth $1450 over two months or $2320 over one month. Supervisors get a 59 percent discount on all product sales.
The company has adopted a common yet old strategy of encouraging distributors first to get the customers have the products they desire, and then talk to friends and family talk about how they benefited from the product. This is an area that has proved to be hard for new distributors to build a successful business along. As a result, many new distributors have been forced to place unpleasant pressure on their family and friends to make their success.
– The company’s compensation plan is one of the most generous in the direct selling industry.
– As a Herbalife distributor, you shall have the advantage of being trained in marketing and customer relations
– The company had succeeded in creating a Multi-Level Networking company that has managed to advance health and wellness products for over 30 years.
– Bigger earning come from assisting others to succeed. The multi-level compensation system means you make money for both personal sales and referrals.
– New distributors have expressed concern about the marketing approach of winning friends which is a bit too tacky.
– The company products can be more expensive than similar herbal products sold on the market
– It takes some time to build a successful business and equally takes time to train people to join
– You have to pay fees to become a distributor.
Herbalife presents a legitimate business opportunity for anyone to excel. There may be no guarantee of return on your investment, but then again even with other start-up businesses, there is no any assurance of success either. With Herbalife, the more you sell, the bigger your personal organization grows and the more you earn. You need to begin with people you already know so as to practice safely. To build the business, you will need to expand your network and connect with others, and definitely success will follow.