Network Marketing Tips

History of Herbalife

The company was founded by the late Mark Hughes, who developed a successful business plan to sell health and nutrition products through the MLM business model. Mr. Hughes’s attorney, Conrad Klein, assumed control of the business, following Hughes’ death in 2000. Hughes’ legacy, however, continues to drive the business worldwide.

Founded in 1980, Herbalife is a network marketing company that deals in nutrition and weight management products. The company headquarters are located in Los Angeles, California, USA. It has a huge network of 1.9 million independent distributors in 72 countries worldwide. The company drives a majority of its business from the US, Australia, China and the European nations.

In the financial year 2009, net sales of the company exceeded $2.3 billion. Based on these figures, Herbalife is one of the largest network marketing companies in the world. Occasionally, the company has faced lawsuits challenging the safety of its products, including the $2.5 million lawsuit in 2009. However, all the lawsuits have been upheld through 2009.

Product Review

Herbalife’s product line offers the following solutions:

* Weight management * Digestive Health * Personal care * Energy and fitness * Immunity solutions * Heart health

The Formula 1 protein shake, a soy-based beverage, is the flagship product of the company. The companies products are not approved by the FDA. However, private lab reports provided by the company claim that they do not violate Proposition 65 limits.

Compensation Plan

The compensation plan offers huge commission to independent distributors. For every direct sale, the distributor can earn up to 50% of the sale. For product sales through immediate leads, the distributor earns up to 30%. This 3-level active down-line compensation program delivers best results on direct sales. One can also earn bonuses and royalties for registering leads under the network.

Final Thoughts

Herbalife boasts a proven network marketing model that has provided financial freedom to thousands of individuals worldwide. With an impressive range of nutritional products and a generous compensation plan, and the right marketing system, an individual can climb the ladder of success with marketing Herbalife.

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Herbalife review: This company is a giant! Established in 1980, Herbalife has taken MLM out of the shadows. Based in Los Angeles, California, this company markets a large variety of weight loss products, personal and skin care products, and health and wellness products in 70 countries worldwide. In 2008, Herbalife reached $3.8 billion in sales.

The Quality of Herbalife’s Products

Herbalife products are very well known because they have been around for a very long time and also the manufacture premium products for their independent representative to sell to their customers.

Many have noted improvements in their weight management regimen, and many have gained increased stamina and resistance to infections, as well as marked improvements in their overall feeling of wellness. What’s also good is that the company offers customers a 30-day money back guarantee program, as well as provide adequate information with regard to the composition and research regarding their nutrition and wellness products, as well as offer feedback about their weight management programs and other relevant material. This goes to indicate that the company has a lot of confidence in the quality of their products.

A Deeper Look Into Herbalife’s Compensation Plan

Herbalife operates a multilevel marketing business system (MLM), and its business opportunity plan has what is called a stairstep-breakaway compensation system. In a stairstep/breakaway compensation scheme, once an individual distributor reaches a certain qualifying point or level, he or she is allowed to literally break away from their original sponsor or upline, as it’s usually referred to.

Because you upline breaks away based on commissions, he or she will get a small percentage on the distributors total sales volume. Some think this plan is flawed and makes it harder for distributors to make money. Well I got news for you, the stairstep breakaway compensation plan made many people millionaire although they had to recruit more people once someone breaks away from them. This is the reason why people are taught to go wide instead of deep. Wide means your first level, deep means down to your second, third, forth, etc levels.

Herbalife does have a pretty good opportunity package out of all the other network marketing companies that uses the stair-step breakaway compensation plan.

How You Earn Under Their Compensation Scheme

Herbalife pays you a commission on the products that you and your downline sells and consumes. Also Herbalife has a bunch of bonuses that include cars, overseas travel, and other bonuses. The company paid out $2.4 billion in commissions, royalties, and bonuses to their distributors since 2007. This is a ton of money which proves the profitability and viability of the companies compensation plan. If you want those big checks that Herbalife dishes out, then you need to recruit and sponsor a bunch of people that what to achieve and do the same thing your doing.

Pros and Cons Of Buying Herbalife Products

Critics will argue that some of Herbalife’s products, especially the shakes and weight-loss supplements, have not really helped a lot of people lose weight since it may not contain any proven weight loss ingredients. This has caused a lot of negative feedback and comments from unsatisfied customers. For example, Herbalife’s Total Control may or not have the right ingredients to lose weight or it has too many ingredients that may actually reduce its effectiveness.

Herbalife does provide a viable and lucrative opportunity, however I would make sure to do your due diligence before becoming a distributor. There are still too many unanswered questions about this controversy.

Shawn J Taylor has help hundreds of network marketers learn how to market Herbalife & others online. Learn how to generate 50 or more leads a day, by clicking on my link.