Mark Hughes(1956-2000), an inspirational visionary, founded Herbalife in the 1980. He started selling his Herbalife program from the trunk of his car and begins rewriting the Network Marketing history. Through the 30 years of operations, it has opened its office in 70 countries through its network of 1.9 million independent distributors.
It’s sales revenue amount to $3.8 billion in 2008.
Recently, it has taken a traditional marketing approach by sponsoring athletes teams and sports events. This has certainly helped the company to raise its brand name awareness in its industry and hopefully helps its distributors in its sales.
Herbalife is focused in weight management, health and beauty products. One of the more popular product includes the Formula 1 Nutritional Shake Mix, which replaces 1- 2 of your daily meals, which should provide the essential nutrients your body needs for weight management. There were some “love or hate it” comments from those who have tried them, especially the weight loss programs.
Well, US alone spend $40 billion a year on weight-loss programs and products, what better industry to be in?
Other Health product includes Cell-U-Loss, Aloe Vera Drink, and Joint Support., etc Another product range is the Nourifusion, which takes care of the external Beauty, such as Cleanser, Toner, Moisturizer, Moisture Mask, and Exfoliating Scrub, etc…
Sales Compensation Plan
It offers up to 73% of its wholesale and retail profits to its distributors, which is quite a generous plan according to the industry standard. As a distributor, you will earn up to 50% of profit for a direct sale; and a 25% profit from your downlines. So other than being a good sales person and recruiter yourself, you will need to teach your downline to be as good as you. That is what MLM is after all, choose 1 hour of work by 24 people or 24 hours of work by 1 person; this is the power of leverage.
“How do I sell the products?” One of the questions in one of Herbalife’s FAQ document. Here is the answer found:
Quote: “As Herbalife’s founder and first Distributor Mark Hughes always stressed, use the products, wear the button and talk to people. You will develop your own selling style which might include talking to your circle of influence, Distributing flyers, conducting surveys and/or participating in seasonal promotions. Your Sponsor has the field experience to provide you with the proper training.
Wear the Button
o You become a walking advertisement
o Wear or use or any Herbalife item that will attract people to talk to you-this makes conversation easy
Talk to People
o When they ask, tell your weight-management success story or your income success story
o Explain the products and business opportunity
o Explain how they can improve their health and also make immediate profits
o Who do you know
o Talk to everyone
Unfortunately this is probably one of the oldest techniques that was being used and have proven to be successful for about 3% of the Network Marketers in history. There must be a better way to market the product. Does Internet Marketing sounds better in these modern days?
Herbal life is an awesome company targeting the Health Market at the right time. Products are fulfilling the demands of this generation. Compensation plan is generous and rewarding. However the company should spend more effort to revise its marketing plan to meet the challenge of this Internet age, which will benefit their 1.9 million distributors worldwide.