Herbalife

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Rating:

Level of Review: Observed in family members, Researched.

Overview: Classic MLM in the personal care/supplement industry. Products have a good reputation, business program does not.

Product: Herbal Supplements, Dietary Aids, Diet Foods, Personal Care Products. This is also a growing company which increases its product line all the time.

Costs: Very High. Cost for startup is high, renewal is also high, and product pricing is dependent on how much you have purchased that year. To get the best price you have to purchase $5000 per year in product, and you have to requalify on a yearly basis (which means you don't get the first $5000 in product at a very good price). You also must pay the company for your sales materials, at their price, and you must pay them if you want a website, to use the Herbalife logo, and more.

Compensation: You get paid a percentage on products you sell, you also get paid a smaller percentage of sales from people under you for a couple of levels. The company provides sales literature which shows income, but does not adequately explain what expenses come out of it.

Conclusion: This company undoubtedly produces great products. The products are very high priced though, and most people who use them do not use them long term because they cannot afford to. Many distributors get into it feeling they will use products and save by being a distributor, but the yearly qualification amounts are so high that unless you are using several hundred dollars per month in the products you will not ever qualify for the lower prices. This company also will not allow you to use their logo or even their product names in your advertising unless you are selling a huge amount per month in product or paying them for it. If you want business cards with the logo on them you are required to order them through the company at a fairly high price. They conceal their identity in their presentation, and make the same suggestion that you approach family and friends, which does not work, even if you have a lot of fat relatives! Distributor percentage on product can be 50% of the total product cost, and the company is also paying your upline something, so most people know that they can get something that will work almost as well at Wal-Mart for 1/4 the price or less.

Can it work? Yes, it can. But it relies on the same things as Amway does to make it work. You need to be able to sell, have a fairly high amount of money that you can invest, and a good deal of scepticism about the money charts they show you, as they do not take your expenses into account. You also need someone upline who wants to help you succeed.

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