Herbalife Review – Do They Really Get Complaints From Their Distributors?

A lot of people think about when reviewing Herbalife the very first time, “Is Herbalife a scam?” and for good reason. Sadly, the home business world can be seriously affected by inaccurate as well as totally bogus statements of individuals earning substantial amounts of money with apparently no expertise, time or work needed, so it really is critical to perform your research when examining Herbalife or another business to work with to make sure that it’s a legitimate business.

Is Herbalife a Scam or Respectable Business?

Herbalife was initially started in 1980 by Mark Hughes who started the business by simply marketing its original weight loss products from the trunk of his vehicle. Mark had gained his drive and determination to spread what would turn into Herbalife’s weight-loss concept from the unforeseen death of his mom, which he blamed on an eating disorder and an poor approach to slimming down.

From those humble origins, this company continues to grow to a publicly-traded (NYSE: HLF) mlm giant with over $4.3 billion in revenue for 2010 and 2.1 million independent distributors throughout seventy-five countries worldwide. As you can see, Herbalife is really a completely legitimate business which is publicly-traded and does billions of dollars in sales throughout the world. As great as those figures are, it might also be among the driving reasons behind a tiny, yet vocal group which are convinced that Herbalife is a scam, but I will get to that in a moment.

Overview of The Herbalife Compensation Plan

With Herbalife, there are actually five different ways that people generate income as distributors:

– Retail profit between 25%-50% for marketing Herbalife products to end consumers.

– Wholesale profit as high as 25% between the difference of what you purchase these products, determined by your rank in the company, and what your organization purchases them for.

– Monthly TAB Team Bonus of an additional 2%-7% on the entire sales volume within your Herbalife business.

– Monthly override payment as high as 5% on the personal sales volume of your “supervisors” in your initial three generations.

At the end of the day, the company claims to shell out as much as 73% of their revenue with the aim of having one of the most generous compensation plans inside home business industry. Initially, I was doubtful about those statements, but at up to a 73% payout at the top levels of the Herbalife comp plan, that is definitely actually pretty good. Most mlm companies design their targeted payout range around the mid sixties or so as a percentage of product sales, so when it is possible to possibly earn in excess of 70% of your sales which you personally make, you are doing pretty well – if you’re personally doing a lot, that is. Why is it that the majority of active leaders in the company make under $825 annually on average? Is that why quite a few past distributors are claiming Herbalife is a scam?

Why Do Some Former Distributors Claim Herbalife Is a Scam?

When it comes right down to why somebody is going to express something unfavorable about Herbalife, or really just about any home-based business, you generally have to drill down a little bit deeper to find out why they’re suggesting Herbalife is a scam. When somebody states that that a mlm company is a scam, it’s frequently because they failed to make any money or they didn’t generate millions their first few weeks and made a decision to call it quits. That’s simply what it boils down to.

What you must remember with this particular industry is that you’re really only paid to perform two simple (not 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.

Although it’s not necessarily Herbalife’s fault if a rep doesn’t make any money because they choose to invest all of their time checking email and staring at the product catalogue instead of speaking to people about buying their weight loss products or becoming a distributor themselves, they’re not totally off the hook either. Like a lot of other MLM’s today, their training is centered around developing a list of your friends and family, getting them to a hotel meeting, and signing them up. It’s not that technique which is necessarily bad, since numerous successful businesses have been built doing exactly that, but it presents brand new Herbalife distributors with the challenge of not being aware of what to do if their best buddy and brother-in-law doesn’t want to enroll in their home business.

With no other prospects to speak to, these individuals quit and say “Herbalife is a scam” when all they really required was an MLM recruiting program and some innovative marketing coaching to give them an avalanche of potential customers that would love to hear about their business.

Herbalife is NOT a Scam

With over 30 years in the mlm industry and positive track record of handling complaints, I feel it’s safe to say that Herbalife is not a scam. Now it’s up to you to find out whether it’s the very best business for you and your loved ones, or if you should look at working with a different MLM company herbalife 副作用

Disclaimer: I am NOT connected with Herbalife in any way and am giving my opinion based on my time spent in the mlm industry and my understanding of the company.

 

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