Launched in 1980 there is a lot to be said about this company in fact if you just Google Herbalife you will find any number of sites telling you the good the bad and the ugly. Chances are a Google search is what got you to my review, maybe you are someone who is thinking about joining Herbalife Network Marketing and you are doing your due diligence seeing what you can find out about the company before you join, well hopefully you will find this review unbiased and of value to you.
Just let me start by sharing with you that I am not a Herbalife distributor nor have I been, I am however a successful Network Marketer and I have been in the industry for just over 10 years, I love this Industry and I love it when people decide to live the life that they deserve and they choose to do it through the Network Marketing Industry. Don’t worry I am not going to attempt to get you to take a look at what I do, in fact I am not even going to tell you what company I am with, my objective here is to help you make the best informed decision you can make, so if you do decide to join Herbalife or any other company, you will go on to be another success story in the Network Marketing industry and all of us will benefit from that.
So now let’s take a look at Herbalife is it a scam or opportunity? The company was launched in 1980 by its founder Mark Hughes who died just shortly after the company’s 20 year anniversary, in the year 2000. In 2002 the company was acquired by J. H. Whitney & Co., LLC, and Golden Gate Capital, Inc. and is privately held. Herbalife reported a net sales volume of $2.7 billion in 2010 and is reported to have approximately 2.2 million distributors, and they currently operate in 76 countries around the world.
The Herbalife Products
Originally the Herbalife focus was on weight management products, Formula 1, Formula 2 and N.R.G. It is reported that Mark Hughes founder of the company, initially sold the products from the boot of his car, until he started to build the original distributor group.
The slogan that was heavily promoted to gain attention to the Herbalife brand was, “Want to lose weight now? Let me show you how”! Some distributors even had this written on their cars or they wore badges or T-shirts with the slogan printed across the back. One other strategy that was initially in place and still is in many cases, is local newspaper ads, posters and flyers, saying wanted 15 – 20 people who want to lose 10 kilos now, maybe you have seen these ads, some distributors even stick them on lamp posts and notice boards in supermarkets.
The Herbalife range has expanded its product portfolio over the years and it now includes a range of personal care products and nutritional supplements. There have been many reports and testimonials about the products with many people sharing great stories about their weight loss results. I think it only fair to mention here that there is also a lot of comments made about the cost of the products, compared to what’s in the market place, so this is something you may need to check out. The products can be ordered directly from the company by becoming a distributor, however most distributors do carry stock so if you are wanting to check out the products first you can also buy the products directly from a local distributor.
The Business Opportunity:
To start your Herbalife business you will need to pay a joining fee which may vary from time to time, however the usual membership fee is commonly between $100 – $300 plus an additional sum of around $40 a month for your company website. Commissions are earned on retail sales, wholesale sales, monthly royalty overrides (to those who qualify) monthly production bonuses (to those who qualify) and there is an annual bonus system for top performers. approx 87% of all commissions are paid out to the top 15% of distributors, according to company data the average income across the distributor base is marginally less than $300 per month. I think it is really important here to remember that in most businesses this ratio pretty much applies. Just take a look at any of the business giants, for instance the banking Industry whilst the average maybe slightly higher than $300 per month, bank staff are employees not entrepreneurs and they contract to work when they are told to.
One of the strengths of Network Marketing is that you can start your business working it part time which allows you to maintain your regular income until you deem you are earning enough to work it full time. Don’t let the words part time fool you into thinking you can do a little bit here and there, to build a successful Herbalife business you must take consistent action, but you can do it on a part time basis.
Herbalife have adopted a common yet somewhat outdated strategy of encouraging distributors to become customers first, get their desired “product” result and then talk to friends and family about how they have benefited from the products. This has been an area that has caused a lot of concern for new distributors and many have failed to build a successful business as result of it, because in many cases it has placed some unpleasant pressure on family and friend relationships, so this is one area you need to check out thoroughly, if you decide to join the company you will need to ask the person who is sponsoring you, what system is in place to attract people to you and to help you find customers other than simple recommendations.
No doubt when you go online you will find lots of negatives about Herbalife as you read them, to help you keep things in perspective, understand that most people will tell a bad news story before the tell a good one. So read the good the bad and the ugly and form your opinion on what feels right for you not just on the maths that there may be more negative comments than positive ones
Network Marketing can be an incredibly valuable part of your life, you will however need to understand that the secret to your success will come down to your willingness and ability to market your business and to teach those that join you how to do the same. Creating duplication is without exception the key factor to true long term success.
So let’s start with the fact that every business needs customers and every one of your team members will need customers, the best way I have found to generate quality leads, who are potential customers, is to use attraction marketing techniques, which simply means having people come to you.
There is one system that has been in the market place for a number of years now as the number one lead generation programme that you can use no matter what company you are with and that is My Lead System Pro. This is a turnkey system that really can help you rapidly increase your income from the get go.
In summary is Herbalife an opportunity or a scam or is it in fact the right company for you? The right answer to that question has to come from you and this will come from doing some sound due diligence and also remember to take into account how you feel about a company because if your hearts not in it. you will find difficult to keep your head in it. Joining any Network Marketing company is not about simple selling goods it is all about taking value to the market place and the more value you give the more money you will make. So make sure you maximise your results by becoming an excellent marketer and then teach others to do what you do.
Yours in Success
PS Click here for the Herbalife statement of earnings