Many individuals question when reviewing Herbalife the very first time, "Is Herbalife a scam?" and even for good reason. Click here for some unbiased information from an MLM veteran who's NOT involved Herbalife.
Many individuals question when reviewing Herbalife the very first time, "Is Herbalife a scam?" and even for good reason. The fact is that, the home business community is overloaded by misleading or simply downright phony claims of people generating massive amounts of income with supposedly zero capabilities, time or effort required, so it really is vital for you to complete your research when examining Herbalife or any other business to partner with to make sure that it's really a legit opportunity.
Is Herbalife a Scam or Legit Home Business?
Herbalife was launched in 1980 by Mark Hughes who started the business through marketing its original weight-loss products from the trunk of his vehicle. Mark had gained his drive and motivation to spread what would become Herbalife's weight loss message from the untimely death of his mom, which he blamed on an eating disorder as well as an unhealthy approach to losing weight. Through those humble origins, this company continues to grow to a publicly-traded (NYSE: HLF) network marketing giant with more than $4.3 billion in sales for 2010 and 2.1 million independent representatives throughout seventy-five nations worldwide.
Obviously, Herbalife is a entirely legit corporation that is publicly-traded and does billions of dollars in revenue around the world. As fantastic as those statistics are, it could also be one of the driving factors behind a small, yet vocal group of people which are convinced that Herbalife is a scam, but I will get to that in a moment.
Review of The Herbalife Compensation Plan
With Herbalife, there's five different ways that individuals earn money as representatives:
- Retail earnings between 25%-50% for reselling Herbalife products to end customers.
- Wholesale earnings up to 25% between the difference of what you purchase the products, depending on your rank within the company, and what your downline buys them for.
- Monthly TAB Team Bonus of an extra 2%-7% on the overall product sales within your Herbalife group.
- Monthly override payment up to 5% on the personal product sales of your "supervisors" inside your initial three generations.
At the end of the day, the company claims to pay out up to 73% of their gross sales with the aim of having one of the most generous payment plans within the multi-level marketing industry. At first, I was doubtful about those claims, but at up to a 73% payout at the top levels of the Herbalife pay plan, that is definitely actually not bad. Most network marketing companies structure their targeted payout range in the mid sixties or so as a percentage of product sales, so when it is possible to potentially receive in excess of 70% of the sales which you personally produce, you are doing pretty well - if you happen to be personally doing a lot, that is.
Why is it that the majority of active leaders within the company generate below $825 per year typically? Is that the reason quite a few past distributors are claiming Herbalife is a scam?
So Why Do Some Former Distributors Say Herbalife Is a Scam?
When it comes down to exactly why somebody is going to say something negative about Herbalife, or really any home-based business, you usually have to drill down a little bit deeper to determine why they're saying Herbalife is a scam.
Whenever somebody states that that a network marketing company is a scam, it's often because they didn't make any money or they didn't generate millions their first month and decided to call it quits. That's simply what it amounts to.
What you have to keep in mind with this particular industry is that you are really only compensated to perform two simple (never to be confused with easy) things: You are paid to sell a product or service, and you're paid to sponsor and teach people to do the same. That's all.
Even though it?s not necessarily Herbalife's mistake if a distributor doesn't make any money simply because they choose to invest all of their time checking email and staring at the product catalogue instead of speaking with people about buying their weight loss products or becoming a rep themselves, they're not totally off the hook either.
Like so many other MLM's today, their training program is focused around building a list of your family and friends, getting them to a hotel meeting, and signing them up. It's not that approach that is necessarily wrong, since thousands of successful businesses have been built doing simply that, but it presents new Herbalife recruits with the challenge of not being aware of what to do if their best friend and brother-in-law doesn't want to join their business.
With no other prospects to approach, these people quit and say "Herbalife is a scam" when all they really required was an MLM recruiting process and some up-to-date marketing training to give them an avalanche of leads that would love to hear about their home business.
Herbalife is NOT a Scam
With more than 30 years in the network marketing industry and favorable track record of resolving complaints, I feel it's safe to say that Herbalife is not a scam. Now it's up to you to determine whether it's the best business for you and your family, or if you need to consider working with another MLM company.
Please note: I am NOT associated with Herbalife in any respect and am giving my impression based on my own time spent in the network marketing field and my understanding of the company.
I hope that this information has helped you determine that there is no great "Herbalife scam" going on, but instead that it's a real business that takes work if you want to make a full-time income. If your sponsor doesn't currently have an automated recruiting system in place to help you bring in 4-15 leads daily from sites like Twitter, Facebook and Google for your business, visit this website right now for some high quality online marketing training from Brian Rakowski.