Herbalife System Reviewed

Last Update of “Herbalife System Reviewed”: 23 March 2016

Herbalife system – a short overview

A recent email from a prospective new Herbalife Member has prompted me to write this brief overview about the Herbalife system. I trust that it is comprehensive enough, yet simplistic enough, to provide you with the necessary knowledge you need in order to make a decision to join Herbalife or not.

Becoming a Herbalife Member

When you join Herbalife, you first become a Herbalife Member by purchasing a Herbalife Member Pack (previously known as a International Business Pack or IBP). This is a starter kit and contains some products for you to try, all your training manuals, dvd’s and most importantly, your Herbalife Member Application Form.

You can purchase a Herbalife Member Pack directly from another Herbalife Member who becomes your Sponsor, or you can use your Sponsor’s Herbalife Details to enrol Online to become a Herbalife Member, where after Herbalife will deliver your Member Pack to you.

Nobody makes any profit on the Herbalife Member Pack, and you do not get paid commissions just because you sponsor new Herbalife Members. The cost of the Herbalife Member Pack is less than $100 (US) in all of the more than 90 Herbalife countries.

Once a Herbalife Member, you have the right to do two main things:
1. Buy the Herbalife products at a minimum discount of 25%; and
2. To sponsor other Herbalife Members into your own Herbalife team.

There are no minimum product order requirements. You only buy products as and when you need to and want to.

Volume Points

All the Herbalife products carry a different volume point value. The volume point value of a product is the same all over the Herbalife world and is more or less equal to $1 US. The reason for this is to create equality all over the Herbalife world.

A person who buys 500 volume points in the UK will pay for it in pound sterling. A person in Australia will pay Australian dollar, but in the end, the product value will be the same. For example, a Herbalife Shake (Formula 1 shake) has a volume point value of 23.95 all over the Herbalife world.

Herbalife uses monthly volume points to calculate the monthly Royalty Commissions and Product Bonuses. It is therefore important that you understand Herbalife volume points.

The Herbalife compensation plan (marketing plan) pays over 73% back to the distributors. It’s structured as follows:

Total of 50% towards Retail and Wholesale Profits
Total of 15% towards Royalties 3 Supervisor levels deep
Total of 6% towards Production Bonus Payments
Total of 1% divided amongst top President’s Team according to performance
Total of 1% as a yearly bonus pot, shared amongst the top President’s Team members who have at least one President’s team member in their team.

Herbalife have a stair-step-system.

Each Herbalife member has the same opportunity to climb this ladder of success as slow or as fast as he wishes, or not at all.

Herbalife System – The different levels:

Herbalife Member (buys products at 25% discount)
When you become a Herbalife member, you are automatically on this minimum discount.

Senior Consultant (buys products at a minimum of 35% discount)

Qualified Producer (buys products at a minim of 42% discount)

Supervisor (buys products at a minimum of 50% discount)
Supervisors are eligible to earn between 0% and 5% Royalty Commissions on ALL the business of the Supervisors in their team, three Supervisor levels deep.

In order to earn the full 5% Royalties for a particular month, the Supervisor must have 2,500 personal volume points.

If he has between 0 – 499 personal volume, he receives 0% Royalties.

If he has between 500 – 999 personal volume, he receives 1% Royalties.

If he has between 1000 – 1499 personal volume, he receives 2% Royalties.

If he has between 1500 – 1999 personal volume, he earns 3% Royalties.

If he has between 2000 – 2499 personal volume, he earns 4% Royalties.

If he has more than 2500 personal volume, he earns the full 5% Royalties.

World Team

Global Expansion Team
Eligible to earn a 2% Production Bonus on his entire team, infinitely deep. In order to qualify for this bonus, The GET team member must have 5,000 personal volume for the particular month and his Organizational Volume (Volume of all his Supervisors and their distributors in his first 3 levels) must be more than 20,000.

Millionaire Team
Eligible to earn a 4% Production Bonus on his entire team, infinitely deep. In order to qualify for this bonus, The GET team member must have 3,000 personal volume for the particular month and his Organizational Volume (Volume of all his Supervisors and their distributors in his first 3 levels) must be more than 80,000.

Presidents Team
Eligible to earn a 6% Production Bonus on his entire team, infinitely deep. In order to qualify for this bonus, The GET team member must have 2,500 personal volume for the particular month and his Organizational Volume (Volume of all his Supervisors and their distributors in his first 3 levels) must be more than 200,000.

Initial capital outlay

Your initial capital outlay to become a Herbalife Member is the price of a Herbalife Member Pack (HMP) in your country. There are no minimum product inventory requirements. You decide with how much product inventory you want to start your business.

It is important to note that there are no profits to be made on the HMP’s. You do not make money when you sponsor new Herbalife members. Herbalife do not pay for recruitment.

You will only profit from your team members’ efforts if you yourself produce and if they produce.

Tip: If you are wondering whether something is a scam or a legitimate business opportunity, see if they pay for recruitment. If they do, it is most probably an illegal pyramid scheme. The other tip is to look whether or not they sell a product or service of real value. If not, they are most likely an illegal pyramid scheme.

Potential profits

Retail Profits
You buy products from Herbalife at a discount and you sell it to Herbalife customers at the recommended retail price. The difference is your Retail Profits. For e.g. you are at a 25% discount level. You will pay $75 for a product that retails for $100. When the customer pays you the $100, you make $25 profit. If you have 10 customers, you make $250 profit.

If you are at the 35% discount level, that same product will cost you $65 and your profit will be $35. For the same 10 customers, your retail profit will now be $350, instead of $250.

If you are at the 50% discount (maximum discount level), that same product will cost you $50; hence you will make $50 profit. For the same 10 customers, your retail profit will now be $500.

You can have as many customers as you wish.

Wholesale Profits
To earn wholesale profits, you must be on the 35% discount level or above. If you now sponsor a Herbalife Member, he will purchase the products at a 25% discount.

The difference between his discount and your discount level, is your wholesale profit. If he therefore sells a product for $100, he will make $25 profit and you will make $10 profit.

If however you are at the 50% discount level, your wholesale profit on that sale will be $25 instead of $10. If your new Herbalife member makes 10 sales of products retailing for $100 each, he will make $250 as retail profit, and you will also make $250 as wholesale profits.

You can sponsor as many Herbalife members as you wish.

Royalty Commissions
Once you are at the Supervisor level (50% discount) and you have team members who are also at that level, you will become eligible to earn a 5% commission on their, and their whole teams’ production for the month. You will earn these royalty commission three supervisor levels deep.

Production Bonusses
By building an ever growing distribution team, of Herbalife members who use and sell the Herbalife products, and who sponsor other Herbalife members who use and sell the Herbalife products, you can qualify to the Global Expansion Team (2%), Millionaire Team (4%) and President’s Team (6%), whereafter you will receive these additional monthly bonusses infinitely deep, on all the production in your team.

Conclusion

Once you understand the Herbalife marketing and the potential it holds, most people desire to be at the Supervisor level as soon as possible. In itself, there is nothing wrong with that.

You can qualify as a Supervisor by purchasing 4,000 volume points of products by yourself in one month (you will get it at 42% discount, as this is your qualifying volume and all products purchased thereafter will be at the 50% discount, even if it is in the same month). However, unless you already have customers waiting to buy the products from you, it is probably not the best way for you to qualify to the Supervisor level.

It is much better to qualify to the Supervisor level with the help of your team.

If for example you have 7 team members and you each purchase 500 volume points of products in the same month, you will each do so at 35% discount, but the total will give you 4,000 personal volume for the month, qualifying you as a Supervisor, eligible to purchase at the 50% discount from then on. There are a few different methods to qualify to the Supervisor level. For example, if you have 2000 personal volume points for two consecutive months, you also qualify. That means if you have only 3 members in your team, and the four of you order 500vp each in two consecutive months, you will be a fully qualified Supervisor at the start of the 3rd month.

My advice:
Do not stretch to buy 4,000 personal volume points of products yourself. This will put unnecessary stress on you and you will then in all likelihood only focus on retail to get your money back and not focus on building your team at all. In the long run, you need a balance between retail and sponsoring new Herbalife members.

If at all possible, start at the Senior Consultant level by purchasing 500 volume points of products at a 35% discount in one go. This is enough product for you and your family to use and sell and will last you from 1-3 months, depending on how much you retail or not.

Remember, there are no have to’s. You don’t have to retail the product. If you do however retail the product, you will earn a handsome profit. All happy customers will inevitably want to become Herbalife members themselves and are a hot source for new team members.

Focus on sponsoring as many people as you possibly can to become Herbalife Members, as that will entitle them to a permanent minimum 25% discount. Some of them will just want to be wholesale customers, and that’s okay.

Those who also want to earn extra money with Herbalife will want to qualify to the Supervisor level. Explain the advantages of the Senior Consultant level to them.

Having a focussed team building strategy is much more effective than a broad approach.

My focussed strategy is no doubt this Senior Consultant strategy. I nicknamed it the Family Customer Plan, as 500 volume points can easily be consumed on a monthly basis by a family of 4 or more people.

The same goes for retailing the products. Stay focussed. Below this article I will put a link to a page where our strategy is explained more fully, with the help of a few short videos.

In the end, the Herbalife dream of the late Mark Hughes (founder of Herbalife) is realised daily in the amazing Herbalife products that are being consumed all over the world.

No longer is it necessary to use drugs or prescription diet pills (like Mark’s mom did and which caused her death) to try and lose weight, or go for liposuction or gastro band surgery. Now you can use healthy, safe and effective nutritional supplements to provide your body with all the nutrients it need to be at optimum health, burn excess fat and provide you with much needed extra energy.

Looking for sports nutrition? Herbalife leads the way.

If you choose to become a Herbalife Member, you choose to become as healthy as you possibly can become.

As a matter of fact, your job description is to become a product of the products.

Become the healthiest you that you can be.

Your own product testimonial will be your best tool in sponsoring new Herbalife members into your team and building your business.

To your happiness, health and prosperity!

p.s. Other readers also liked:

Does Herbalife Work?
Can you make money with Herbalife?

p.p.s Here is a link to our Team Building Strategy page, called:

Your 90 Day Run to Freedom with Herbalife

Tags: herbalife compensation plan review, herbalife marketing plan, herbalife marketing plan overview, herbalife review, herbalife system, herbalife system review, how to join herbalife