"Lose weight now, ask me how" was the familiar slogan you
may have seen around town in years past. What you may not
have known was that this catchy phrase was really
advertising Herbal Life products. The company has survived
litigation and the tragic death of its founder Mark Hughes
in 2000, twenty years after he started it. Since then, the
business has recovered and continues to grow worldwide
under new leadership. That it continues is a testimony to
the resilience of those involved in the company and the
ever expanding global opportunities that weight loss
industry offers; Americans alone are estimated to spend $50
billion a year on shedding pounds, and the forecast is for
continued growth.
Yet for all its ability to rebound and expand, this company
still has its share of doubters. Obviously it is not a
complete scam, or it would not exist today. But its
marketing tactics have led to past and present legal action
for misrepresentation and other unethical practices up the
line. On the other hand, there are more legal protections
in place because of the company's missteps, and it could be
that they have learned from the error of their ways.
Here's what the business looks like currently. The
compensation for these distributors follows the stair-step
breakaway plan. According to the company website, the
percentage of distributors that become supervisors is about
25 percent. These supervisors earned an average of $549 in
the year 2006 on top of their profits from selling the
products themselves. But how much do people typically earn
selling the products as distributors? That information is
not as easy to find. It seems that more than 90% of
distributors leave the business in the first year. Also,
supervisors must make an investment of several thousand
dollars to attain that rank, which the average supervisor
will not recover with $549 in income from the distributors
under them. So they too would need to sell the products
just to break even. The starting discount for the products
is 25%, which would be your commission if you sell them at
full price. The more you sell, and/or the higher your
rank, the greater your discount.
But how much a distributor can earn is not always clear and
reportedly subject to change. In at least one of the
lawsuits against the company, distributors alleged that the
company reduced the amount they would pay them without
clear reasons. They complained that the company was
showing favoritism and misleading them as to how much they
could earn. Such complaints are not uncommon.
The lesson seems to be that Herbal Life has learned how to
be one of the most resilient companies around. Throughout
its 28-year history there have been numerous complaints
about it misrepresenting itself to draw people to join the
sales team. The ways the company markets its opportunity
seem to be more transparent than before, but complaints
about distributors and investors being misled have not
slowed significantly. Thus it seems to still be a company
on ethically shaky ground. Anyone about to join the team
should be cautious, try to get clear written agreements,
and be prepared to take legal action if promises are broken.
----------------------------------------------------
Jayne Manziel is a successful Entrepreneur coach and has
helped hundred's of people build their business for over 20
years. She devotes the time, energy, and effort into her
team and mentors them to ensure their success. To learn
more visit Jayne's Making Money Online website at
http://www.freecashcoach.com . A proven leader, she offers
a Sales and Marketing Strategy for all of her team members
in achieving financial success.
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