Herbalife is an MLM company that makes over 4.43 billion US dollars in the dietary supplement, weight management, personal care product, and sport nutrition niches.
Company name: Herbalife Nutrition Ltd.
Key people: Michael O Johnson, Chairman& CEO
Products: dietary supplements, sports nutrition, personal care, and weight management
How does Herbalife Nutrition company earn money?
Herbalife earns money using Independent Nutrition distributors who sell dietary supplements and services worldwide. Distributors reach individuals outside the network and sell them products.
Herbalife company is a member of the Direct Selling Association.
Herbalife company has a few stages
Nutrition clubs are places to recruit new members and sell products, ar a lower price. These clubs are in densely populated areas, usually at the storefront shops. Sponsors lure newcomers who do not have experience in business and believe promises to become rich. The training does not prepare to run a business.
What it is funny that people who start running a new club cannot use words Herbalife, smoothies, or shake. They cannot have an open/closed sign.
You would ask, how does it work?
If you invite people to join the so-called Nutrition club, you need to sell a membership. It costs 5-7 dollars per day. Members can shake, usually Formula 1, a cup of aloe water, and tea.
Strangely, patrons cannot leave the club with these products. You need to consume inside.
I guess that Starbuck does better. What do you think?
Of course, looking from the point when you want to meet similarly minded people, it is an excellent way to share experiences, make new friends.
Besides Nutrition clubs there are :
- Success builders
- Qualified producers
- World team
- Global expansion team
- Millionaire team
- Presidents team
- Chairman club
- Founders circle
How do club owners make money if they cannot sell products directly inside?
Individuals sell Herbalife business opportunity. What does it mean? Clubs organize meetings where new people could be recruited to work as distributors and club owners.
Unfortunately, it is slime chances that somebody would climb to the top.
According to the factsaboutherbalife.com, “ninety of new Herbalife producers fail each year.” Approximately two million people start and leave business each year.
Main Herbalife products are Formula 1 Nutritional Shake Mix, Cell Activator, and Formula 2 Multivitamin Complex. Vegetarians can use protein drinks from rice, pea, or quinoa. Shales come in different flavors.
Healthy weight products are Formula 1 Healthy Meal Nutritional Shake, Caffeine metabolism enhancers, and Total Control tea. Herbalife offers a three-day trial pack with six packets of Formula 1 Cookies’n Cream nutritional shake and vanilla on-the-go protein drink mix packets.
Specialized nutrition consists of Joint Support Advanced, Herbal Aloe Concentrate, and women’s daily booster products.
Herbalife offers Digestive Health and 21-day Herbal Balancing programs too.
Fitness and energy line products provide support for athletes that recover and want to increase endurance. These products are green tea supplements, fitness drinks, and protein powders.
Skin and hair care products help to combat wrinkles, dry skin, and acne blemishes.
Is Herbalife Nutrition company worth to work?
Sales depend on the amount of recruited people and sold products. Herbalife Nutrition Ltd is an MLM company that uses a building downline for financial success.
It is a pyramid scheme when you recruit people under yourself and get payments when they sell products. More people are under you, more money you will earn.
At first, it seems a pretty easy way to earn money. However, the reality is a different thing. To recruit people, you need to convince them that these particular products are worth using. The price of the products is pretty high.
People who start as new members need to buy products at first. It does happen in so-called Nutrition clubs. However, these earings come from recruiting unique individuals. People who are above them will make money too. It could be a pressure to market as fast as possible because of investment and wish to get a payment.
Herbalife Nutrition Independent Distributors claim that products are great and help with weight management. Cute pictures of athletes suppose to make an impression and persuade to buy more products as possible.
Most of the multi-level marketing companies use this strategy for new members. Plenty of newcomers want to make money as soon as possible and do not research all subtle details used to promote products. They try hard to persuade future clients to buy. and can be in trouble because of uncertainty when Herbalife products create problems
What do I mean?
Everybody can tell that their product is the best on the market. However, you need to present real facts and proof.
Unfortunately, there have been reports on what some Herbalife products are harmful to the liver.
Of course, distributors can find people who do not know these facts. However, it is a risk that somehow individuals who use these products can experience problems.
The website states that
Upon analysis, all of the sourced Herbalife products contained high levels of heavy metals, and 75% of the samples contained undisclosed toxic compounds, while 63% of the samples contained bacterial deoxyribonucleic acid. Upon RNA analysis, multiple bacterial communities were discovered in Herbalife products—” including highly pathogenic species.”
How much money get distributors paid?
In 2018 Herbalife states that turnover is 68%. Some websites teel different numbers, such as 73%.
Unfortunately, there some pitfalls. Only 1%, which consists of 199 people, are paid 250 000 per year and more. The rest of the distributors use products from Herbalife to consume themselves. It is known that retail profits not reported for the other six streams of revenue. If you want to use them, you need to buy a minimum of Herbalife products every year regularly.
Seven streams of revenue at Herbalife
Cash promotions. It happens when Herbalife gives $500 to individuals who reach the Active World Team.
Sales at discount price. If you are a Herbalife distributor, you can buy products at discount prices and sell to friends or other people. However, it is not easy.
Herbalife products online can be 40% cheaper.
Entry-level distributors cannot compete with higher-level sellers who have more significant discounts.
Herbalife products are overpriced compared with similar products.
Wholesale recruiting. People who are higher sell products at more significant discounts to individuals who are below. Herbalife pays the difference.
Royalties. People who want to climb to a higher level of becoming a supervisor must spend $3000 for 4000 so-called volume points. In this way, they can be eligible to receive royalties. It depends on the amount sold by downline. Shortly, higher people are more chances to earn more money.
Production bonuses. When people reach the GET team, they eligible for 2-7% earnings from the total volume under them.
Vacations. Herbalife runs several promotions during the year. The threshold is 3-4 months. During this time, upline distributors try to persuade downline distributors to buy more products. It seems like the carrot dangling under the horse nose without the chance to reach it.
Mark Hughes bonus. Rewards are enormous, about 2,000,000 dollars. There are a few exceptions; however, 1% of the entire company gets this type of bonus. People who have been with company 15-20 years are top winners. They started earlier and could use various methods of promotions and persuasion, which are not legal nowadays.
What do I like about Herbalife?
I like that people start to think for themselves how to earn money and to take care of their wellbeing. They can get support from peers, meet new people, and get some nutrition from Herbalife products.
What do I not like about Herbalife?
- Product prices are high when people start at the beginning.
- It is a long way to become a higher level distributor.
- It is not easy to recruit new people.
- The number of people who leave every year is about 2 million. It means that distributors need to continually work recruiting unique individuals without guarantee how long they will stand with the company.
- Company foundation is downline, which works hard their butts of.
- There are plenty of products and programs which help to lose weight.
There is a youtube video where ABC team explores secrets of Herbalife:
Herbalife Nutrition company is a multi-level marketing company. Only 1% of people earn a substantial amount of money. The rest of the distributors experience high turn over and struggles to recruit new people. People need to spend more money without the guarantee that they will get it back and will succeed. The company has distributors around the whole world. Some of the starters are people with low income and promises to get the rich sound appealing.
To recruit people and climb stairs takes patience, plenty of money, and time. Are you ready for it?