Cash Flow Potentials

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In Business Since: 1980

Comments: This is a weight management and/or nutritional company that is international and has had longevity. Everyone is looking for a way to get better health, get in shape and fix all the damages from poor eating habits and lack of exercise. Consumers are demanding quality from nature herself. This is where Herbalife has come to be an opportunity to provide these products for the consumers and a business opportunity.

Everyone is looking for a way to get better health, get in shape and fix all the damages from poor eating habits and lack of exercise. This has become a thing of the present and the future, the marketing of nutritional supplements. Consumers are demanding quality from nature herself. This is where Herbalife has come to be an opportunity to provide these products for the consumers and a business opportunity as well.

Herbalife has been around as long as I can remember. The interesting thing about this company is that a 24-year-old man, Mark Hughes in 1980, founded it. He tells the story of how he was inspired by his mothers struggle to manage her weight. She had tried everything, even amphetamines. So, he began selling products for weight control from the trunk of his car. Only 8 years later, Herbalife hit its million dollars in sales.


Advantages: Great product. Solid company. Operating in over 50 countries.

Disadvantages: Herbalife is a 20 year old, billion dollar company. Consequently, a large number of people have been exposed to the opportunity, you may run into lots of people, particularly in the U.S., who are no longer open to the Herbalife opportunity. Herbalife's compensation plan is also one of a relatively few comp plans, called breakaways, that are utilized by older companies, such as Amway, Nuskin, NSA, Shaklee, and others. Most startups of recent years have stayed away from breakaway plans and have opted to use unilevels and binaries plans.

Even though the products are of excellent quality and from great resources, they are quite expensive and cannot compete with the well-known brands you can get at the health food stores at a much lower price. It is your drive and your personality that will make this business work for you. You need to decide "Why" you want to do Herbalife. Is it the products or the marketing plan? Is this plan better than the others you have looked at? Is this something you feel that you can sell?

If you plan to make money in this business, you need to prepare to recruit as many distributors as you can and sharpen up your sales techniques. As they break away, you will basically be starting over. So keep your contact list loaded and handy. You need to make a decision and commit to it.

Entities:
Transferable     Saleable     Willable     Structure as Corporation Entity
Yes                  Yes            Yes           Yes

Financial Strength: Strong

Management:

• Michael O. Johnson - Chairman and Chief Executive Officer
• Brett R. Chapman -  General Counsel
• Richard P. Goudis - Chief Financial Officer
• Y. Steve Henig, Ph.D. -  Chief Scientific Officer
• Des Walsh -  Executive Vice-President, Worldwide Operations and Sales

Online Training & Support: Herbalife has good online support, but what I would like to see is the ability of ALL their distributors to order products online. Currently, only qualified Supervisors in the U.S. can order products online. Herbalife has one of the best field training and support in the industry. This is usually available through company and leadership sponsored events regionally, nationally, and internationally.

Field Training & Support: They will provide you with the training you need and help in achieving your goals. They now have over 1.5 million distributors and growing in over 64 countries.

Motivational Support: Available.

Products/Services: Herbalife is a company that provides natural vitamin supplements, beauty and weight loss products. There is a special line for women’s nutritional needs. They focus on Wellness products that have quite a few testimonials on the benefits. The consumers claim more energy, weight loss, relief from headaches, arthritis and relief from other inflammatory diseases.

Compensation Plan: Stair step breakaway. They have a business plan that works as a stairstep-breakaway compensation plan. This plan is easily confused and very hard to explain. When a distributor reaches a certain point of qualification, then he breaks away from his original sponsor. The original sponsor will now only get a certain percentage of that breakaway groups volume. Your share of the compensation plan can be anywhere from nothing to 25% from the profits of yourself and your group.

Health Insurance Plan Available: Unsure

Territories: Operating in over 50 countries - U.S., Canada, Argentina, Australia, Austria, Nederland, Botswana , Chile China, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, El Salvador, Estonia, Finland, France, Germany, Greece, Guatemala, Honduras, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy , Jamaica, Japan, South Korea

Disclaimer and special notes: Please note that the opinions and statements expressed in this report are ours and do not necessarily represent the opinions of others or the company we are reviewing. All information found herein is believed to be accurate at the time of publication, but errors may exist.