Herbalife is a nutrition and health product company based in the United States. They fulfill product orders placed by customers. In addition to products, Herbalife also offers customers and the general public the opportunity to market and distribute their products as independent distributors. This Herbalife review will discuss the company structure as well as how distributors are paid.
Herbalife International is a public company traded on the New York Stock Exchange under the symbol ‘HLF’. The company has roughly 4500 employees world wide. Herbalife’s product line include nutrition and skin care products. These range from vitamins and supplements to protein shakes and weight-loss aids.
Founded in 1980, the company has grown to $2.7 billion in net annual sales and is active in 76 countries globally. The company uses a multi-level marketing model. The company has around 2 million independent distributors world wide. These distributors then market the product to the end consumer.
The Pay Plan
The Herbalife pay plan is structured similarly to other network marketing organizations. Each distributor receives a portion of the purchase price of each product as a commission. Distributors may also recruit new distributors. When these recruits, also called “down-line distributors”, sell products the distributor that recruited them receives a commission. The new distributors often rely on the recruiting distributor, also called an “up-line”, for training and support. This process repeats for several generations. So any sales made create commissions for the distributor, the distributor who recruited them and the distributor who recruited them.
Distributors are independently responsible for their marketing and recruiting efforts. Some distributors have been accused of falsely representing potential earnings and other unscrupulous business practices. This is where “Herbalife Scam” accusations arise. New distributors should take care to not only understand Herbalife as a company but also how their up-line can support them. Herbalife reviews can help in this process.
Herbalife International is a network marketing based nutrition company. They allow their distributors to sell and recruit other distributors. This strategy has enabled Herbalife to grow into a multi-billion dollar company.