WalletPop

Are you comparing Herbalife with LOTTO!!! That´s Business like others where WHO DON´T WORK, Do not earn!

This statistics are very wrong. The most "distributors" are simple customers that sign-up the IBP(registered to buy with 25% of discount) and are not WORKING to make sales: just buying the products directly with discount(loyal customers) every month and this "minimum volume" reflect the number of so many distributors.

Before you talk, go to Mexico and Latin America and even Los Angeles to see tha LATINOs really working in their Nutrition Clubs and making money happy and helping so many people with just US$ 3 / day for nutrition... It´s the reason of the BOOMING in the Herbalife´s revenue.

To judge the ENTIRE organization(that is helping people) for the mal-conduct of a very few is the same that judge calling assassins all humankind because the few serial killers that unfortunately exists...

There is many industries that sells less "remedies" when the people become healthier... And I guess that "devil matters" are sponsoring false prophets to blame this company. (or buying more stock at lower price :-)

But what do not kill, make us stronger!!! Thanks for all that we are with more integraty each day and removing the "harmful grass" from our garden.

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Your reading the Average Gross Compensation incorrectly.

Note that the amounts of money listed in that file are compensations paid by the company to distributors above and beyond the amount that the distributor makes through normal business operations of selling nutritional products.

Those are bonuses, not full income.

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Regarding: "There is little to no profit to be had from trying to sell these products." Err... yes there is from 25% to 50%. All a person has to do is take it to the market place and sell it, which I do and I receive the profit.

Regarding: "..almost all purchases of Herbalife products are purely for the purpose of distributors meeting their minimums". Err... a company can't survive for 29 years if that was true.

Regarding: "...retail market for this trash." Err... Same as above - i.e. no company can survive 29 years selling trash.

All blindingly simple stuff really...

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yep Herbalife will not work, the real problem is the Dist. want to sit on their lazy ass and earn $10,000 a month without working. that the same person that thinks the state schould send tham a check.

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LOL - I'm not interested in pretending that Herbalife is anything but a pyramid scheme. A long-running pyramid scheme for sure, but a pyramid scheme nonetheless. 10 customers a month? A game that is played so we can pretend there are significant retail sales. I understand the cult mentality that keeps MLMs alive. I really do. You pledge your blind loyalty to the company and the product, and that keeps you buying and recruiting. Almost no one turns a profit from these "businesses." Doesn't that trouble you?

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Tracy no one is asking you to pretend anything, Networking has always and will always be about a lot (1.7 million) doing a little, most Distributors will register simply to buy products for themselves at a discount and supply a few family members.

Other distributors will do a lot more and therefore earn a lot more just like any type of business or job for that matter!!!

For the record most traditional businesses don't make money which is why so many go out of business in the first 3 years!

At least with Networking someone can develop some basic skills in a low risk enviroment that will stand them in good stead for the rest of thier lives.

Why would we need to pretend we have Retail customers, it's not a difficult product to sell, I have friends that have well in excess of 100 retail customers, some of them happen to be in our network.

As for pledging blind loyalty and cult mentality I find your comments bizzare, I would understand them if the products didn't produce such consitant results and anyway what qualifies you to make such strange comments and why do you have such a problem with Herbalife?

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Where did I say no one wants to make any money Majority of people get involve to make an extra £250 to £500 per month.

You say ALL the websites and ALL the recruiting events promote "all the money you can make"

We run 7 website and 1 event a month and your comments are quite simply untrue, none of them focus
completly on the money, Have you even ever been to one? (I doubt it!!)

Zaks post mentioned the form on Herbalifes own website I hardly think

An extra $500
An extra $1,000
An extra $2,000
The sky's the limit!

Is promoting all the money you can make!!

He then goes on to take various information out of context as the figures He talks about are Royalty payments and not retail profit made.

So if very few people are selling product to legitimate end users (3.5 Billion 2007!) Tracy where is all this product going?

All I know is product comes into us each month and we have to keep re ordering as it seems to be going somewhere and oh look people keep giving us money to take it away and then we make a profit on it, simply business really.

So are we pretending we have customers then?

I'd be interested in your explanation and understanding of Pyramid selling Tracy.

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This type of multiple choice question is a common way of goosing the audience's enthusiasm. Maybe it is not actually misleading, but I find it extremely annoying, and it is a red flag that they are trying to get you to respond with your emotions instead of using logic.

I signed up for one of those "get paid for mailing letters from your home" scams once, just to see how it worked. Of course they asked me this question, and the actual answer I wanted to respond was "I would be satisfied in the unlikely event that I make even one dollar". Of course I never saw a dime.

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I've been using the products for 14 years as a tool to stay in great shape and feel good; and it's very convenient. I became a distributor and supervisor to get a discount on products for personal use. Recently at my full-time job I helped only 8 people lose weight through the products, and now they all are coming back for more each month. They thank me and tell me how much more energetic they feel and they look better and better each week that goes by. This is the biggest reward for me.

As far as my profits are concerned: In total I work my Herbalife business about 5 hours/week (mostly on lunch breaks following up with existing customers). In the last 3 months I earned an extra $1200. That's averaging $400/month. To some this isn't much (and it's negligible to me), but I earn what I work for (5 hours/week doing retail only). My sponsor is GET team and she earns over $5000/month. I've seen her royalty cheques for $4000+.

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well, I use Herbalife. I have seen people grow with that business. Now they even make more money then me. Besides it has nutritional values that we need for our bodies. We just don't have the time to prepare us healthy food. Always in a rush, no? There is more good into herbalife if you dig a bit more.

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Murilo said:

"Are you comparing Herbalife with LOTTO!!! That´s Business like others where WHO DON´T WORK, Do not earn!"

>>> Yes, I think he is, and Ithink there are strong similarities between MLM/Pyramid Schemes and Lotto. At least when the possibilities of winning money and put side by side and compared.

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"This statistics are very wrong. The most "distributors" are simple customers that sign-up the IBP(registered to buy with 25% of discount) and are not WORKING to make sales: just buying the products directly with discount(loyal customers) every month and this "minimum volume" reflect the number of so many distributors."

>>> Those are not statistics. Those are real values. Released by Herbalife.
And how much was it that they PAYED to be able to "buy the products 25% cheaper"?

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"Before you talk, go to Mexico and Latin America and even Los Angeles to see tha LATINOs really working in their Nutrition Clubs and making money happy and helping so many people with just US$ 3 / day for nutrition... It´s the reason of the BOOMING in the Herbalife´s revenue."

>>> Lets go to Mexico then. According to the 2007 SEC report, Herbalife has been free-falling in Mexico for the past 3 years. Now THAT's a BOOOM.

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"To judge the ENTIRE organization(that is helping people) for the mal-conduct of a very few is the same that judge calling assassins all humankind because the few serial killers that unfortunately exists..."

>>> Hmmm... if 99% are dropping out or loosing money with Herbalife, how does that make them "very few"? Maybe taking money away from them can be considered a modern form of social justice (Herbalife is actually "helping them").

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"There is many industries that sells less "remedies" when the people become healthier... And I guess that "devil matters" are sponsoring false prophets to blame this company. (or buying more stock at lower price :-)"

>>> What remedies are you talking about here? And what products from Herbalife are remedies substitutes?

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Larry,

"Your reading the Average Gross Compensation incorrectly.

Note that the amounts of money listed in that file are compensations paid by the company to distributors above and beyond the amount that the distributor makes through normal business operations of selling nutritional products.

Those are bonuses, not full income."

>>> SO, WHERE ARE THE NUMBERS FOR FULL INCOME? MAY WE TAKE A LOOK AT THEM? OR IS THERE SOMETHING ELSE HERBALIFE IS NOT DISCLOSING, LIKE FOR INSTANCE: BUSINESS ACTIVITY COSTS...

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Paul,

"In the UK Herbalife have many distributors that only retail making 1000's every month that are not involved in building a network business at all."

>> How many? How many make less? Where is this data available to consult either than your words?

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"What everyones seems to have ignored is the simple fact that the products work and people keep coming back for more and whilst this situation exists you have a solid business."

>> Ignored? Coming BACK for more? If you have a 80% to 90% drop-out rate every year, how can there be a "come-back" ideia around? The only ones who "come back" are those inside the network. All the others are NEW recruits who are not aware of the pitfall.
The only one ignoring something in here is you.

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"As for Barry Minklows comments about having saturated 80% of the world, Is the guy totally nuts, Herbalife has been operating in the UK for 25 years and we speak to peolple every day that have never heard of Herbalife!!!(maybe 5% have and they always know of someone that lost weight and did really well)"

>>> Again, those are your words. And Y don't really see you rebating ANY of Barry's facts and figures (you only go around calling him nutso).

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"Perhaps Tracy should do her homework as durring the last 2 years of being involved in Herbalfe the message both from corporate and the distributor leadership has always been a balance between Retail, Recruitment and Retention and by law we have to submit a document every month to say we have sold 70% of any stock to Retail or Wholesale customers and that we have at least 10 retail cutomers!!"

>>> OH come ON!!!! "70% to retail OR WHOLESALE customers" *equals* "I don't really have to sell anything to anybody, I just have to make sure my donwline orders stuff"

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"For the record most traditional businesses don't make money which is why so many go out of business in the first 3 years!"

>> Lets see your sources on that!


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"So if very few people are selling product to legitimate end users (3.5 Billion 2007!) Tracy where is all this product going?"

>>> "Legitimate end users" in this context, are Herbalife members.

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"All I know is product comes into us each month and we have to keep re ordering as it seems to be going somewhere and oh look people keep giving us money to take it away and then we make a profit on it, simply business really."

>>> Well, Paul, maybe "we" are consuming it, or maybe "we" are giving it away for free to family members, or maybe "we" are burying it in the back-yard. Maybe "we" are only ordering it so that "we" can earn the downline "sales" bonuses...

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"So are we pretending we have customers then?"

>> Yes, that's exactly what you are doing. At least a great majority of "yous" are, as downline recruits don't qualify as "Customers".


Best Regards,

Pedro

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Hello again,

Sorry about the "typos"... My primary language is not english, so, please frogive my "rebates"...

Best Regards

Pedro

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Let's look at the facts as Herbalife has published them and as referred to in your article linking to the Average Gross Compensation Chart:

http://www.herbalife.com/US/en/pdf/AverageGrossCompensation_EN.pdf

Let's do the math:

Herbalife has 1,700,000 Distributors as per it's own statement.

25% are Supervisors or higher Leaders, that's 425,000 people who are between Supervisor and President.

43% of all Supervisors and above are active, that's 182,750 people who are active leaders.

The annual Gross Compensation paid to ACTIVE Leaders was of $5100 or roughly $450 per month.

Now it's getting tricky:

87.5% of the Active Leaders were Supervisors, that's 159,906 people who averaged an annual Gross Compensation of $549 or $45.75 per month.

This leaves us with 22,844 people who are World Team up to Presidents.

5.8% of Active Leaders are World Team or 10,599 people and they received an average Gross Compensation of $4,219 or $351 per month.

Next is GET.

5.3% of all Active Leaders are GET, that's 9,686 people who received on average an annual Gross Compensation of $24,455 or $2037 per month.

Still not enough to feed your family and to make your dreams come true, send your kids to university, buy your Helicopter, Yacht and Ferrari.

1% of all Active Leaders are in the Millionaire Team, that's 1827 people who got an annual Gross Compensation of $111,444 or $9287 or Euro 5,915, which after taxes would end up being about Euro 4000
before deducting the running cost for the business.

0.3% of Active Leaders are Presidents that's 548 people, averaging a Gross Annual Compensation of $611,094 or $50,924 per month.

Now here it's getting more interesting.

Let's look at your chances to feed your family with the Herbalife Business Opportunity:

Out of 1,700,000 Distributors, the Presidents and Millionaires can feed their families, that's 1.3% the active Leaders or 2,375 people or roughly 0.5% of all Leaders or 0.125% or all distributors.

Usually it is said that in MLM only 5% of the involved people are successful. We see here that it is 40 times less and I would guess this corresponds pretty much to other MLM Companies' Compensation profiles.

But how do MLM earnings in general, and Herbalife Compensations in particular compare to other Business models?

MLM Recruiters often claim that the living from MLM is better and success easier to achieve than from ordinary jobs.

Let's face it, when Henry Ford put thousands of people on the chain to assemble Ford A Models, he was feeding every single person working with him.

At Herbalife, 75% of the Distributors don't get Compensation and from the remaining 25% almost 90% (or 87.5%) cannot even afford a basic Herbal Nutrition pack per month from their Gross Compensation.

Or, looking at the total of Presidents, Millionaires and GET: that's 12,061 people who are making money, while 1,687,939 are not being able to feed themselves not to speak about their families.


Or for every earner there are 140 registered distributors, of which 25% leaders, that's 45 of which about 20 Active Leaders.

Conclusion: if you want to earn money with Herbalife, just recruit 140 distributors of which 20 active Supervisors. Simple, no?

What are your chances of making money?

Here is the answer: 1:140.

What ever you have learned or studied, how are your chances to feed your family with your profession or activity?

Better or worse than 1:140?

In any case, Herbalife is a better bet than Roulette :-).

How does the Herbalife Opportunity compare with other opportunities?

Opportunities such as eBay seem to have similar low success rates.

But then, you have not seen the better part of the Herbalife opportunity and that's the small group of Chairmen and Founders who have even better arrangements and who are shareholders in the Company as are some presidents.

Just a little example:

http://www.secinfo.com/duwTa.u24y.htm

Markus Lehmann, a German Herbalife Chairman held in 2007, 312,000 common shares in Herbalife whereof 300,000 indirectly through his Liechtenstein Corporation, Markus Lehmann Sales Consulting Establishment, as per above SEC form. Plus he held options. 312,000 common shares at $47, that amounts to in excess of $14 Million.

Can your job provide you with similar potential?

Yorgo



About the Author: Yorgo has been an online only Marketing Professional since 2001. His Books and Publications deal with online Marketing, Affiliate Marketing and Networking in particular. Amongst the various Publications: http://YORGOOpublishing.com.
Yorgo is training at Ycademy, the Online Education Center for Successful Networkers.

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