The herbalife business opportunity review by ericwelke by Eric Welke

Articles from EricWelke.com The Herbalife Business Opportunity Review by Eric Welke

Herbalife is a direct selling company that specializes in nutrition, weight management and personal care products. They started operations in 1980 making them one of the oldest direct selling companies in the industry. Their corporate headquarters is located in Los Angeles, California. The company was founded by Mark Hughes and is an established name in the direct selling industry. They have over 5,000 employees and 3.2 million independent distributors in 88 countries. They are also listed on the New York Stock Exchange. Herbalife Products The products they sell are all developed in-house at their research and development department. New products are introduced regularly after thorough testing and gaining government approval. Their primary product categories are: weight management, personal care products, targeted nutrition, and, energy & fitness. Their original product, a protein shake designed to help with weight loss, is still one of their most recognizable. It has its own section in their catalog called the Core Product. Weight management consists mostly of dietary supplements, shakes and snacks that help a user to reach their target weight.

Targeted nutrition is their line of multi-vitamin and supplements that help keep you healthy at any age. The Energy & Fitness product line is targeted to active people, especially athletes who need key nutrients for faster recovery and performance. Personal care products focus on skin and hair care, useful for maintaining a healthy and youthful appearance.

The Herbalife Business Opportunity You can take advantage of the opportunity by becoming a Herbalife Independent Distributor. Aside from the being eligible for their compensation package, you also get training on their products and business model. Herbalifeâ&#x20AC;&#x2122;s independent distributor network is one of the largest in the world. Several top members are already earning 6 figure incomes. This is of course quite possible for everyone to reach given an ideal scenario, but actual payout percentages depend totally on a distributorâ&#x20AC;&#x2122;s marketing efforts. The compensation plan relies heavily on direct sales and the creation of a sales network. An Independent Distributor needs to find customers, build a team, and mentor its members. Consistency in generating sales will help a distributor rise in the ranks. Income and Rewards The Herbalife compensation plan is pretty straightforward at the entry level. Once you sign up as an independent distributor, you get a 25% discount on their products. You can then earn immediately by selling the products at a recommended price,

potentially giving you a 25% profit from each sale. Here’s a breakdown of the earning opportunities: Immediate Retail Profit – Income from direct sales of products to customers. This can range from 25% to 50% depending on the distributor’s rank. Daily Wholesale Profit – Income from the sale of products to your sponsored distributors. Since you have a higher rank than your distributors, you get a bigger discount on the products. They will then purchase these from you at their designated discount level. Monthly Royalty Override Income – You also earn up to 5% on the total PV (personal volume) sold by all of the distributors you’ve sponsored that have reached Supervisor level. This is up to 3 levels of down line. Monthly Production Bonuses – Herbalife TAB (Top Achievers Business) team members can an extra 2% to 7% Organization production bonus. TAB members are considered the most elite group of independent distributors. Annual Bonuses – This is a bonus given to Top Achievers in recognition of their outstanding performance. Eligibility for Special Vacations and Training Events – This reward is given to achievers who have demonstrated consistent performance and effort in building their business. Newly recruited Independent distributors are entitled to 25% discount on their product purchase. Those who meet certain targets qualify for a corresponding rank. Each rank has a specific level of discount assigned with the supervisor rank getting a huge 50% off their purchases. These discounts allow a distributor to earn more from their sales. If you want to increase your earnings, you’ll need to build a team. This opens up a passive income channel where you earn “royalty overrides” from the sales of distributors you’ve recruited. You earn a 5% commission based on each of your distributor’s monthly sales volume. It’s definitely worth it to build a large team and provide mentoring for new sellers. It is recommended that sales leaders work on getting more of their team to the supervisor rank. There are also other benefits and rewards for top sellers and their teams. There’s even an annual award named for the founder, Mark Hughes. Herbalife Business Opportunity Challenges To be successful, an independent distributor has to be aware of the different ideas people have about multi-level marketing. Potential recruits and customers will likely have their own ideas that were formed based on what they’ve heard from people

they know and what they’ve seen online. It helps to address any questions they have about the compensation plan. Companies the size of Herbalife generally encounter issues during their operations. They’ve been criticized and have gone to court due to allegations of being a pyramid scheme. This is likely due to a misunderstanding of how a multi-level compensation plan works. Other criticisms include massive turnover of distributors. This is true for any type of start-up business. The Herbalife business opportunity is not for everyone. Only those who are hungry enough, totally determined and dedicated will be able to build a team that will achieve the level of success they aim for. They’ve also had some serious studies done on which question the effectiveness of their products. Still, they’ve managed to grow their business in spite of these criticisms. This proves the organization’s strength and staying power.

Here’s a quick summary on the Herbalife Business Opportunity: -

They’re an established company with a popular product line.

They have a global presence and distribute products in at least 88 countries.

They are a member of the Direct Selling Association and its equivalent in several countries. -

It’s easy to sign up as an Independent Distributor

Their compensation plan consists of passive and direct income.

Direct income is derived from directly from profit off direct sales; passive income is earned from a commission on the sales volume of distributors that were sponsored. There is a huge possibility that a potentially lucrative area for marketing Herbalife products is already being served by an existing distributor. This is very likely especially in North American territories.