Herbalife was founded in 1980 and with products its products tailored to nutrition, weight-management and personal care markets. It has since grown its business to over 75 countries using its network of more than 2 million independent distributors to date. The phenomenal growth can be attributed to its
referral marketing strategy/network marketing. The departure from the convectional way of doing business through long marketing and distributor channels means that Herbalife significantly cuts its marketing and distribution costs and passes the same to its independent distributors. This now brings me to how you can become a Herbalife representative.
How to Become a Consultant
To become a representative, otherwise known as a distributor you have to buy a starter kit. You could either get referred by somebody manually or you could sign up online. Either way the person that introduces you into the business is called a sponsor. It is advisable to sign up under a sponsor who can offer you guidance and support during in business. Most sponsors are willing to help because their interest is aligned to yours as you are now part of their team. I will come to this later when explaining how the compensation plan works. However, if you don’t have a supportive sponsor it shouldn’t be a problem as the company offers trainings for the new distributors as well as for the experienced ones. The starter kit contains essential materials like brochures, reading manuals, application forms and a sample of products. The starter kit currently costs $56 and it automatically puts you into the first compensation level that entitles you to 25% discount. This is very good value for money considering you can recoup your initial investment by selling a few products.
How much can you earn with Herbalife?
To answer this you first have to understand how the compensation plan works. Firstly, distributors make a profit on their product sales by buying them at a discount. The discount given to the distributors depends on their compensation level and it ranges from 25% for a new distributor to 50% for a ‘supervisor’ level and above. In addition to making a profit from the purchase discounts distributors can also earn money through what is called wholesale profits. Distributors will earn wholesale profits when they are levels above (in the compensation heirachy) their recruits. The profit is calculated by taking the difference in discount entitlements and therefore ranges from 0 – 25%. Other than retail profits and wholesale profits distributors above the supervisor level earn a royalty. They earn 1% to 5% of the volumes made my their sponsored chain three levels down. This is now passive income unlike the retail profits where you had to to move products. Your income therefore solely depends on how much products you sell and the people you sponsor in the business and their level of activity. Therefore there is no cap on your earnings and solely depends on your efforts.
To be successful in any network marketing requires passion and dedication as it is always a numbers game and the same applies to Herbalife. To create a solid customer base first start with your warm market, mainly friends and relatives. Sell them the benefits of the company products and get them to try them. Some will like them and others will dismiss them but all in all remember to ask for referrals. Referrals are people who they know who might be interested. Keep the chain going on by even getting the referrals of the referrals you were given. You will need a diary to store contacts and to schedule appoints so that appear professional to manage your business well. Make sure you know how to present the business well as well as people who showed interest in the products might well be interested in the business. You will grow your business faster by being a good sponsor as the new distributors will soon be replicating your efforts.