Let me guess you met a Herbalife distributor who shared the famous weight-control meal replacements and wanted you to join the business? You think about the opportunity and ask yourself many times “Should I Join Herbalife?”
Am I right? You are in the right place!
First of all, I am not a distributor of Herbalife, so you won’t see me selling any products or request you to click a “BUY IT NOW!” button. What I am sharing today is my discoveries from Herbalife’s business model and the compensation plan and evaluating it suits me or not.
Secondly, you came to my website to know more about this company, and I think you are doing your homework well. This is also important to avoid being scammed online. You definitely deserve a big HUG on this.
Let’s find out more untold truth of Herbalife, shall we?
What is Herbalife?
-Summary of Herbalife-
Product Name: Herbalife
Founders: founded by Mark Hughes in 1980
Product Type: Health, Wellness, and Skin Care MLM
Price: International Business Pack ($94.10) or International Business Pack – Super Starter ($124.10)
Rating: 30 / 100
Herbalife is founded by Mark Hughes in 1980. He was a born salesman. Before he created Herbalife, he has joined some MLMs until they went out of business. Then he started to sell his weight-control shakes out of his trunk in Los Angeles.
Besides the famous nutrition supplements, Herbalife expands the product lines to include skin care and hair care products. In 2018, the annual sales revenue exceeds USD$4.89 billion with more than 4.5 million independent distributors and members in 94 countries.
What’s inside Herbalife?
You probably have used Herbalife in the past, so it doesn’t need more explanation about Herbalife’s nutrition/supplement products. As for the skincare/haircare lines, there are no big differences between the products we get from the supermarket or online, except for the overpriced cost.
I won’t go through every product in this article, otherwise, it will digress the main intent – Herbalife’s business opportunity. I will only talk about the products that I am interested in or the products I want to sell to anyone if I join Herbalife. Deal?
- Core Products: Formula 1 Healthy Meal Nutritional Shake Mix, Formula 2 Multivitamin Complex, and Formula 3 Cell Activator
- Heavy Weight: Weight-control products including meal replacements, protein bites, shakes, snacks, etc.
- Specialized Nutrition: Nutrition solutions for all ages that give you the right balance of essential nutrients.
- Energy & Fitness: This is my favorite part since I work out regularly, and I took some supplements too. The product in this category – Herbalife24 delivers key nutrients for faster recovery and optimal athletic performance. (I would like to try it!)
- Skin & Haircare: cleanser, moisturizer, acne kit, mask, shampoo, body wash, body cream, etc.
Does Herbalife Product Work?
It depends. I never used Herbalife’s products, so I cannot tell you my firsthand experience. Based on my research, the meal replacement did work on people who want to lose weight with persistence.
For some products, Herbalife faced many claims that using its products would cause long-term health problems including lead poisoning, liver damage, and hepatitis. In 2019, an Indian woman used Herbalife products for two months only and it caused the fatal liver failure then she passed away.
You might take both good and bad sides into your consideration before you try Herbalife’s products, or you should consult with your doctors on this. For other similar weight-control programs, you are welcome to check my FULL reviews of Beachbody and Now Lifestyle.
How Does Herbalife Work?
The nature of any MLMs is the same. You have two options to make money and get extra bonuses:
- Sell Herbalife products and earn retail commissions.
- Recruit more people to become your downlines for extra bonuses.
Before we dive deep Herbalife compensation plan, let’s see what you can get once you register as a distributor.
To start your Herbalife journey, you need to find your sponsor(AKA upline). Then pick up an International Business Pack ($94.10) or International Business Pack – Super Starter ($124.10)
Third, fill out and the Herbalife Membership Application and Agreement & Get approved by Herbalife. Once all the above is done, you are ready to go.
The Compensation Plan
Herbalife’s compensation plan is very complicated and confusing, but I will try my best to explain it simpler for an easy understanding. As a Herbalife distributor, there are six ways you can generate your potential earning.
- Retail Profit: You sell your customers with retail price and only pay Herbalife the wholesale price, so the differential price gaps are your retail profit.(25% to 50%)
- Wholesale Profit: You need to move up at least one level in the system and have some downlines. Wholesale Profit is based on the difference between your higher-level discount and your downline Distributor’s lower level discount. For example, you get a 40% discount while your downlines get a 25% discount. Then the 15% gap is your wholesale profit. (Up to 25%)
- Royalty Overrides: Once you become a supervisor and have other supervisors in your downlines, you can earn 1-5% commissions on your first three levels of downlines.
- Monthly Production Bonus: Once you join Global Expanse Team(GET), you can earn an extra 2%-7% monthly production bonus.
- Annual Bonus(Mark Hughes Bonus): This is only for top distributors! It includes 1% of the entire company’s revenue and one $2M check for the top distributor.
- Others: Cash rewards, paid vacations, training events, etc.
For details, you are welcome to check the official 126-page document HERE or watch the YouTube video below.
How Much Do You Need to Sell to Stay Active?
If you are just a member of Herbalife, there is no minimum requirement you need to purchase. You may purchase only the products you need and only when you like.
If you are a distributor, there is still no monthly requirements other than the International Business Pack ($94.10) or International Business Pack – Super Starter ($124.10) you get when you first start your Herbalife journey!
Pros & Cons
TOP#1 Long History of Success!
You may know that 5 out of 10 new companies can’t last 5 years, so Herbalife’s 40-year business operations are something we should praise. Besides the famous weight-control products, Herbalife is also good at marketing.
If you are a football fanatic, the below photos should be no foreign to you. But if you are not, you might get my points.
Herbalife sponsored(spent lots of money) football stars to wear the jersey & promote its products. This makes people think athletes take Herbalife to become stronger and energetic, so the products should work on them too.
This marketing strategy worked out very well!
TOP#2 A 12-month Money-back Guarantee
For all distributors, Herbalife offers a 12-month money-back guarantee if you are not satisfied for any reason. But, the products you purchased should maintain unopened for a full refund. This is the longest money-back policy I’ve reviewed in the MLM industry.
For customers and preferred members, you may return it within 30 days from receipt for a full refund or product exchange.
Just like many other companies, Herbalife Nutrition Foundation is founded by Herbalife to help kids with nutrition issues. They serve over 120,000 children every year, and it’s better to see there is a charity than no charity from Herbalife.
Here are the types of support that Herbalife provided to the kids & family in need:
- 54%: Food Subsidy/Security
- 33%: Nutrition Education
- 2%: Capital Support
TOP#1 Low Income Potential
By this official document from Herbalife, we know the ugly truth that 86% of US contributors didn’t receive earnings in 2016. Usually, there is only 2% of members can become the highest-ranking in the direct selling industry and earn enough income, so I am not surprised about Herbalife’s numbers.
Another interesting number to see is that 50% of the first-year distributors earn more than $95 per month, top 10% earn more than $740, and the top 1% earn more than $2,690.
I believe you won’t quit your daily job when you only make an extra $95 per month, right?
The federal minimum wage in 2020 is $7.25 per hour. If you have a part-time job in Mcdonald’s(let’s say 20 hours per week), you can earn $7.25*20*4=$580 per month. It’s even higher than 50% of Herbalife’s first-year distributors!
But, we cannot ignore that some work their butt off to reach the top 1% and earn more than $2,690 per month. It’s safer to quit your job once you achieve this stage and start to have a nice and decent Herba-LIFE.
TOP#2 Many Lawsuits
As I mentioned in the previous paragraphs, customers have a life-time liver damage, leading poisoning, and hepatitis after they used Herbalife’s products. This causes Herbalife many lawsuits.
In 2014, the Federal Trade Commission(FTC) sued Herbalife as a pyramid scheme that only recruits people to join the system without offering actual products. This drama ends in 2016 that FTC agreed a $200 Million settlement against Herbalife for a deceptive and unlawful act.
FTC will use the money to send checks to former 350,000 distributors who lost money when running Herbalife business.
TOP#3 Recruit, Recruit, And Recruit
To get the most earning from Herbalife’s compensation plan, you need to have as many downlines as possible to boost your income. This requires you to do lots of recruitment and it depends on lots of face-to-face meetings.
I know it’s the nature of any MLMs in the industry, but I am not that kind of person who likes to spend the weekend to convince people how good Herbalife’s business opportunity is. I also don’t like to make money by recruiting people as much as possible instead of sharing a good product that I find helpful and healthy.
I would share my alternative to make money online in one minute!
Who’s Herbalife For?
People who have weight-control issues and want to lose weight and make money by purchasing & selling Herbalife’s products. If you like the products and find it work for you, I think you could go for a try.
Can You Make Money Selling Herbalife?
Yes, definitely. You can scroll up to see the income disclosure I attached. There are people(1%) earn more than $2,690, and they are just starting their first year.
For all the other successful distributors(1%), they can get $14,175 monthly income by Herbalife. But, it takes 3-35 years to achieve this status. The averaged years shown on the same document is 13 years.
So, ask yourself!
Can you put up with Herbalife more than 13 years to achieve a $14,175 monthly income in the long run? The truth is that 86% of distributors didn’t get any earning from Herbalife in 2016. If they do, the average monthly income could only be $95.
Should I Join Herbalife? Is It A Scam?
I think it’s your call to decide whether you should or should not to join Herbalife. I’ve provided you lots of proofs in this article, and I believe you could make a good choice.
Herbalife is not a scam or pyramid scheme. This is 100% for sure. But, you need to remember three things that I don’t like much from its history and business model:
The low income potential, you may be only earn $95 per month if you are lucky in the first year.
The second, Herbalife faced many lawsuits in the past and ever agreed a $200 million settlement.
The last, you need to do lots of recruitment and make them become your downlines.
If you have one “Nah!” for the above, you might be interested in my alternative way to make money online:
My Alternative Way to Make Money Online
My alternative way to make money online is through Affiliate Marketing instead of promoting Herbalife product in person and do lots of recruitment. But, I am not saying you cannot succeed with Herbalife. It’s just my preference, and you are free to decide by all the proofs that I attached in this article.
Once I imagine myself talking about Herbalife’s products to my family, close friends, or neighbors, I feel blushed immediately. Doing affiliate marketing can save me and you from that:
- You don’t even need to buy any physical or digital products and sell to someone face to face.
- You also don’t need to convince people to join you as you downlines to build a team.
- You are not restricted to only promote Herbalife products. You can promote anything you like!
You only need to create a website or YouTube channel with quality content that makes people trust you then purchase them through your links.
The platform I am using currently is Wealthy Affiliate. The reasons for “Why Wealthy Affiliate?” are for all the training courses, every Friday night LIVE training courses, 24/7 sitesupport, and the most friendly community.
For more details or top secrets about Wealthy Affiliate, you could check my full review in the below link.
Wealthy Affiliate Income Proof
Here are some of the most active members from Wealthy Affiliate. Each of them did succeed in generating a sustainable income to replace their 9-5 jobs. You are more than welcome to check their stories HERE.
- I Made Over $1 Million With Affiliate Marketing.
- Can someone make a full time income promoting WA? You bet they can!
- What Does $1000 Per Day Look Like?$
- 40,000 In One Weekend
- A Very Humbling $12,803.26 Month – August Progress Report
- It’s Getting Better: $500+ in 2 Days
- Newbies Pay Attention! $5,195.20 Affiliate Check for June: Thanks WA!
- Joined the 10K Per Month Club. January Earnings $13,481.39
- New Record: $1,300+ Per DAY! Affiliate Marketing Works & Rocks!
- Made $7,395 in a WEEK: First Black Friday Results!
I hope you enjoy this review and you are more than welcome to share ideas or leave your comments below. I will reply as soon as I can, thanks.