The purpose of this article is to provide an independent review of the Herbalife business. As a quick disclaimer, I am not a Herbalife distributor, but I do use their products from time-to-time. In addition, the name is a registered trademark. All views in this article are my opinion.
About Herbalife
When it comes to network marketing, Herbalife is one of the big boys. In fact, Herbalife is one of only a handful of network marketing businesses to exceed the $1 billion mark in annual sales. And exceed that they do. In fact, net sales for 2012 were just over $4 billion, with a net income of just over $477 million, a net growth of almost 18% from the previous year.
The company was founded by Mark Hughes in 1980. During the past 30+ years, they have experienced phenomenal growth. They currently have 2.3 million distributors in more than 75 countries.
Initially, the company was privately owned, but it went public in 1986. For some time, it was traded on the NASDAQ, but it is currently traded on the New York Stock Exchange. In addition, the company sponsors nearly 15 different sports teams, such as the L.A. Galaxy.
According to the company’s website, their mission statement is to “change people’s lives by providing the best business opportunity in direct selling and the best nutrition and weight-management products in the world.” Overall, I think Herbalife is a great company. Like I mentioned earlier, they are one of only a few companies to stand the test of time in this industry and pass the billion dollar sales mark.
One thing I really respect about the Herbalife business is Mark Hughes. He was an extraordinary entrepreneur with a huge vision. Sadly, Mark passed away in 2000, at only 44 years of age. If you’ve never heard him speak before, please visit YouTube and watch some of his speeches. He is a very inspirational guy.
The Herbalife Products
Herbalife manufactures high quality health, nutrition and weight loss products. They also offer shampoos, skin care items and household products. I’m not sure of the exact amount of products in their product line, but I’d guess it’s somewhere between 75 and 100 products, maybe more.
Herbalife is best known for its weight loss products. They offer everything from shakes to pills to vitamins. They have several different weight loss programs to choose from. My favorite product is the Formula 1 Chocolate Shake. Some of their most popular products include:
• Formula 2 Multi-Vitamin®
• Formula 3 Cell Activator®
• Florafiber®
• Thermo-Bond®
• Snack Defense®
I believe the Herbalife products are fairly priced and good quality. You can search the internet and find thousands of success stories of people who have used the products to regain their health and lose weight. The best story I found was of a guy who lost more than 400 lbs with the products. Most importantly, all products come with a money-back guarantee, so you can buy them with complete confidence.
Herbalife Compensation Plan
How do you make money with a Herbalife business? Actually, it’s quite simple. You start out by finding retail customers: lots of customers. These are people who purchase the products from you at the suggested retail cost. You keep the wholesale-retail difference, which puts immediate profits in your pocket.
Typically, this retail profit ranges from 25% to 50%, depending upon your qualification level. There are many distributors who earn $500 to $5,000 per month, just with retail customers. In Herbalife, there is a strong emphasis on acquiring customers. That’s one thing I really admire about the company.
The next way to make money with Herbalife is to sponsor other distributors into the business. When you build a team, you earn overrides and commissions from their sales. Depending upon your qualification level, this can be a 10% to 25% override. As your team grows, you can also earn leadership bonuses, cash incentives and trips. I believe the company does a great job recognizing its top distributors. There’s also plenty of opportunity for the “little guy” to make money.
I’ve found that the most successful distributors in Herbalife focus on both activities. They have 10-20 personal retail customers and a large team of downline distributors. What I like most about the compensation plan is that you can make as much or as little as you want. You can fit the business around your busy schedule. You can do the business part-time or full-time.
Some people sell enough products just so they can get their products for free. And other distributors build six and seven figure incomes by building large teams of distributors. Obviously, there is no guarantee of success. Individual results will vary, based upon goals, work ethic, marketing skills, recruiting skills and sales skills. I do believe it is possible to earn an extra few hundred to few thousand dollars per month with Herbalife, or to replace your full-time salary.
Herbalife Success Stories
If you do an Internet search, you will find plenty of people who have achieved financial success with Herbalife. Some of the top distributors include:
- Enrique and Graciela Varela
- John Peterson
- Susan Peterson
- Carol and Alan Lorrenz
- Chris Carley
- Geri Cvitanovich
- Joost Goovaerts
- Leon and Irana Waisben
- Stephan and Gaura Gratziani
- Blake Morgan
- Janifer Cohn
- Leslie Stanford
- Trina and Donte Andry
This list of Herbalife Success Stories might change from time-to-time. Sometimes people leave the company or get terminated. If you know of any changes to my list, or any names to add to it, just contact me.
Final Thoughts
In conclusion, I believe the Herbalife business is a viable business opportunity for anyone interested in direct selling. They have a proven, 30+ year track record, exceptional products, a fair compensation plan, and exceptional training. Please know that this is not some get rich quick type of business. Like any legitimate business, you need to develop a marketing strategy, find customers, and focus on expanding your business. In addition, you will need to invest time and money to get your business going.
Although some people make no money with Herbalife, others earn six and seven figures with the company. Ultimately, your success is determined by your ability to sell the products and build a team. If you don’t do those two activities, you won’t make any money with Herbalife. In addition, please note that many people join Herbalife simply to get a discount on the products.
In my humble opinion, the Herbalife business is positioned for future growth inside the U.S. and globally. They have strong financial backing, large market share, and a very loyal sales force to keep growing the company. And their products are great, reasonably priced, and are consumable. It’s like the best of both worlds.
If you were previously or currently are a distributor for Herbalife, I would love to hear your story. Please share your experiences with the company and with the products. Tell us when you joined the company, what type of results you experienced, and how the products helped you lose weight or improve your wellness. Just fill out the web-form on the bottom of this page to get started. Thanks for reading my Herbalife business review.
References & Links
Disclaimer: Once again, I am in no way affiliated with the company. Herbalife is a registered trademark, owned by the company. All views are my opinion. Sources are provided in the reference section.
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I’ve been with Herbalife almost 15 years now and haven’t had a job for the last 10 years. I love this company and love what I do!
Good for you Frank. I think Herbalife is a great company myself. No, it’s not for everyone. And no, it’s not easy to build a big and profitable business. But for someone who is passionate about nutrition, who likes network marketing, who wants a Plan B, and who isn’t scared to work hard for a few years, this is a REALLY good option. The products are great. The margins are good. And the residual is good!
While I enjoy the Herbalife products, I don’t think very much about the company. To many people have lost money with the company. And some of the people at the top try to scam new distributors out of money with all the tools and systems. It seems as if Herbalife will become the next Amway!
Hannah,
Thanks for the comment. Many people lose money in every business model. The truth is, building a successful and profitable business in any business model is hard work. More than 9 out of 10 businesses fail in every business model. I’m sorry to hear you had a bad experience, but I am glad that you enjoy the Herbalife products.
Thanks for the comment. I’ll have to respectfully disagree with you. I admire Herbalife and think they have a viable business opportunity for the right person.
I think the Herbalife business is a little bit outdated. Their compensation plan is outdated with the 10 customer rule, the huge buy in, and ongoing requirements. Yes, the products are great and priced fairly, but I think it would be a much wiser move just to be a customer than a distributor.
This type of problem can come in a traditional business just as easy. It sounds to me you just got involved with the wrong people, and I doubt the people who run Herbalife at the top levels would allow these things to happen. It is hard to completely control everything people do in a company so large. I have had issues with large corporations that run traditional stores, but it wasn’t the company, it was the employees. I believe that if you had an issue with Herbalife, you should have went to someone higher up the ladder.