Cost: $35 yearly membership – one time membership package fee $50 – $95
Founder: Mark Hughes (deceased)
Going into the new year, everyone’s focus is health. Herbalife is an MLM company that sets its focus on health and healthy living, so I can assume many of you are wondering about Herbalife and its business opportunity.
Herbalife is a global nutrition company that I have set my sites on reviewing since, again it’s the “New Years Resolution” time, as well as a long-standing company that has some interesting aspects to it.
In my Herbalife review I’ll talk about what Herbalife really is, as well as what kind of products they sell. I’ll then help you understand the process and costs behind signing up as a distributor, and what kind of compensation can be made as a Herbalife distributor.
The most important aspect of joining an MLM is its support and tools, which I’ll highlight towards the end of my review along with what I felt Herbalife does really well, and what they have some room for improvement on.
Join me in reviewing this Herbalife business opportunity!
(However, if you’d like to go straight to my #1 Recommended Program, click here!)
What Exactly Is Herbalife??
As I mentioned above, Herbalife is a global nutrition company developed to run as a direct selling or MLM type company. What this means is that they rely on independent distributors (people like you and I) to find a passion behind selling these products for the company. In return, we receive a type of commission back from products sold.
Some MLM company’s are actually worth investing time and energy into, others not so much!
The purpose of Herbalife is to make the world a healthier and happier place by offering high-quality, science-backed products. All the Herbalife products are produced in company operated facilities.
Herbalife operates in more than 90 countries, and employees over 8000 employees worldwide! In addition, Herbalife is traded on the New York Stock Exchange with net sales of approximately $4.5 billion in 2016.
Originally founded in Los Angeles California back in 1980 by Mark Hughes, Herbalife has been a long-standing company that has both succeeded and failed in many ways.
What Does Herbalife Sell?
Herbalife sells a variety of nutritional drinks, bars, shakes, and supplements. Their most popular being their protein and meal replacement products.
The core products sold are the Formula 3 Cell Activators, the Formula 2 Multivitamin Complex and the Formula 1 Healthy Meal Nutritional Shake Mix.
The Formula 3 Cell Activator supports normal mitochondrial function with Alpha Lipoic acid and may help the body’s absorption of micro nutrients with Aloe Vera (in case you were wondering, because I was!).
The categories that you see to the side range from healthy weight, to specialized nutrition and energy, as well as fitness and skin and hair care.
Herbalife is most well-known for their shakes, with the Herbalife Formula 1 healthy meal nutritional shake being the most popular. They also have:
- Herbalife Kids Shake;
- Herbalife Personalized Protein Powder;
- Protein Drink Mix; and
- Herbalife Formula 1 Express Meal Bar.
Of course, these come in various flavors such as:
- Mint Chocolate;
- French Vanilla;
- Cookies and Cream;
- Dutch Chocolate;
- Orange Cream;
- Dulce De Leche;
- Vanilla Non-GM ingredients;
- Vanilla Alternative Proteins;
- Wild Berry;
- Pumpkin Spice;
- Pina Colada;
- Cafe Latte;
- Kosher Vanilla.
Unfortunately, the tastes could be improved, as a lot of complaints about products range in the flavor category.
How To Get Started As A Herbalife Distributor?
In order to become a distributor, you’ll have to either have a sponsor that suggested or convinced you to sign up, as well as has given you their sponsor information. OR, you have to be willing to give Herbalife the information to have someone contact you to be your sponsor.
With many, if not all of MLM companies, you’ll be required to have a sponsor as many bonuses and compensation drive from recruitment. In addition, your main source of support will come through your sponsor (if you have a dedicated and committed sponsor).
Great thing about Herbalife is that there is no minimum purchase required to maintain your distributor status. However, you’ll need to purchase a business starter kit.
Membership packages will come with a few different books, some informational DVD’s, as well as some sample products and basic information about the company, the products, and your role within the company.
Cost To Join Herbalife
As mentioned above, there isn’t a minimum purchase requirement. However, you are required to purchase a starter kit which will range between $50 – $95 depending on if you get the smaller kit or larger kit. Each kit will have roughly the same products, but the bigger package will come with more variety.
After purchasing the kit, you’re free and clear of any more payments up until your year mark. Once you’ve been a distributor for a year you’ll have to pay a yearly membership fee of $35 dollars for those still under the “supervisor” rank, and $50 dollars for those above or in the “supervisor” rank.
(Want to join a program that will cost you NOTHING to get started? Take a look!)
Herbalife Compensation Plan
There are several ways to earn money through being a Herbalife Distributor. But first, let’s talk about the ranks.
You’re main goal as a beginner is to achieve the “supervisor” rank. At this point you’re earning as much as you can by simply just selling products for a retail commission. At supervisor rank, you’ll be earning a 50% margin (profit) off of products sold.
To move any further into what is considered the “TAB Team” you’ll have to begin to grow out your team or recruit (if you haven’t already). At this point it’s all about recruiting.
In order to reach supervisor, you’ll need to accumulate $4000 in total volume in one month, or a $2500 volume in each two consecutive months.
Making Money With Herbalife
Immediate Retail Profit
This is the profit earned from making sales to your customers and is the difference between retail price sold and discount awarded to your position. You start by earning a 25% discount, all the way up to a 50% discount as supervisor.
Daily Wholesale Profit
This is the difference between what distributors in your down line (your team of recruits) pay for products against what you pay for products. As a supervisor with the 50% discount, and one of your distributor getting 25% discount, you’ll make 25% of all sales.
Monthly Royalty Override Income
This is awarded to a supervisor where you can earn 5% of the personal volume of all your down line supervisors. This only goes 3 levels down.
Monthly Production Bonuses
This is an extra 2% – 7% of your organization production bonus (the amount your organization is making). This is given to those in a Global Expansion team, Millionaire Team, or President’s team who maintain those ranks for 3 consecutive months.
These bonuses are given out to Top Achievers. Those building their team the fastest and earning the quickest.
Special Vacations and Training Events
If you have a high performance and have put great effort into building your business, the company has special promotions and bonuses throughout the year. In addition, diamond and gold rings, as well as diamond watches are given to Distributors when they accumulate a certain amount of volume.
Training, Support, and Tools
Unlike many MLM companies, Herbalife has a mandatory training course that all distributors are required to take before officially commencing their business. This course is completed on the “Learning Centre” once you’ve signed up.
During the training you’ll learn to use Herbalife tools to document retail sales, create business budgets, and manage income and expenses. You’ll learn to make appropriate claims and be taught about Herbalife and it’s products.
As I mentioned before, your Herbalife sponsor will be the bulk of any support your receive after the training. Herbalife has offices worldwide, but if you need to contact them they offer email, calling during business hours for specific offices, and plain snail mail.
What Do People Say About Herbalife
It’s so important that while looking for the right program for you, you’ll want to look at what people are saying about Herbalife. This will give you a good understanding whether or not you want to support and promote this business.
If the company doesn’t have a good reputation, you’ll struggle to bring on customers and build your team.
It’s so hard to find real facts on MLM type companies because 90% of the comments you see on reviews, posts, and professional websites such as indeed.com or glassdoor.com as people who are already distributors.
However, the number one complaint seen from Herbalife (that I can claim to be legit and not a distributor) are saying that many distributors only want to recruit you. Once your part of the team you lose almost all contact with your sponsor. Herbalife has a certain aspect of their ranking system that only allows you to continue moving in ranks if you recruit.
Once distributors hit that certain rank, they lose all focus of “helping” the customers. This is an extremely common occurrence with MLM and direct selling companies.
Although all businesses, especially businesses within the supplement industry, get put under scrutiny quite often, Herbalife has most recently been suspected of running a pyramid scheme. In 2014 many distributors were promised money from recruitment of customers, where they actually were not paid for recruitment, but only for purchasing and selling product. Almost none of this compensation was paid out and Herbalife was forced to send over $200 million dollars worth of checks to distributors who were effected by the deceptive earnings claims.
Script from the Better Business Bureau –
Because of this, Herbalife has had to revamp their compensation plan, as well as make a clear definition between what a “Preferred Member” is and what a “Distributor” is.
Herbalife is not BBB accredited however, the BBB has rated Herbalife a B+.
What I Like About Herbalife
- Fulled Refundable 90-day money-back guarantee for cost of Herbalife Member starter kit;
- 100% refund guaranteed on product plus shipping costs for return of all products purchased prior to 12 month membership cancellation;
- Only required to pay for membership kit to get started.
What Herbalife Could Do Better
- 90% of Herbalife distributors drop out in the first year;
- Eliminate the need to move up past a certain rank by recruitment only;
- Company isn’t forthright about having to pay an annual membership fee;
- Some flavors of the products are not great;
- Products are similar if not the same to products purchased at any health/nutrition store.
While researching and trying out a new program, I quickly start to realize whether this is a program I support, or one that instantly makes me suspicious.
Unfortunately I was instantly suspicious of Herbalife. Why? Because it was so gosh darn difficult to look into.
If a program or company is excited about what they offer, believes that what they offer holds value, and cares about the people they are targeting, then they would be open and honest about everything regarding their opportunity.
There were several things that were red flags for me. First being that while signing up, the first screen you look at outlines all the wonderful aspects of becoming a Herbalife distributor. Within that outline is says that no minimum purchases will be required, however, it doesn’t indicate that you have to purchase a starter package. I would consider that a minimum purchase requirement, no?
Second being that it wasn’t until a week after looking into signing up for Herbalife that I noticed I would be charged an annual membership fee. Why wasn’t that information presented during the sign up process? I would have been working along for a year and the presented with a “pay this or lose all your progress”. That would frustrate me.
Third, once I hit Supervisor ranking, I am forced to advance solely on the premise of recruitment rather than sales. What if I don’t want to recruit? What if I’d rather continue to sell the products instead?
There are more than enough reasons for me to be unable to support or suggest to my MLM friends that they invest in this business opportunity. Although it may be for some, it’s most definitely not for me 🙁
Please feel free to leave your comments, questions or feedback below!