Why A Herbalife Distributor (A Herbalife President Team Member) Would Resign A Six-Figure Income
Wednesday, January 14, 2009 at 10:52AM I’m Robert Ford. In this article I will share how I became a top earning Herbalife Distributor.
I will discuss what I discovered after sacrificing 11 years of my life building a Herbalife business. And why I resigned a six-figure income and started my networking career over.
Achieving the Top One Percent As a Herbalife Distributor
Three years after getting started (when Herbalife International was 15 years old) I had one of the fastest growing distributorships in America.
One of the most common questions I am asked is: “How did you build your business so fast?”
The short answer is massive marketing action. Now remember, when I did this it was in the late 90’s and “Old School MLM” was all there was.
What Did I Do to Succeed as a Herbalife Distributor?
What do I mean by massive action? Here was my method of operation or what I did to get my phone to ring off the hook:
•15 classified ads per week
•25 pole signs per week
•1,000 business cards per day, 6 days a week (I wore out two pair of Nike running shoes)
Was it easy to do? Absolutely not.
Did it work in building a Herbalife business at that time? Absolutely yes.
After three straight years of this level of commitment and work ethic my wife and I achieved Herbalife’s prestigious President’s Team status. As a Herbalife distributor we were on cloud nine.
We were in the top 1/2 of 1% of all Herbalife Distributors. Our Royalty and Production Bonus checks hit over $32,000.00 a month.
The Allure of Residual Income With Network Marketers
Let me digress... I really like network marketers. We are a very unusual group…
We are self-motivated.
We are willing to work hard to achieve our goals.
We are willing to step out of the box to achieve our dreams.
We are an unusual and special group, that’s why I like network marketers!
It is my opinion that most of the people who are attracted to this industry are attracted because of the promise of Residual Income. The promise of building a stream of income that can last a lifetime.
Does the Herbalife Business Opportunity Work?
So when our income had exceeded $25,000.00 a month my wife and I thought we had the world by the tail. We thought that because we had been told, “Once you hit the Herbalife President Team you will be set for life financially.”
Instead of experiencing that financial security, at the very top of our Herbalife career the true nature of the Herbalife business model began to raise it’s ugly head.
Our organizational volume began falling. Our distributors couldn’t get and retain loyal retail customers. Our Herbalife checks began dropping.
I thought as a Herbalife distributor I wasn’t training my people enough, or I wasn’t working hard enough, or maybe I didn’t have the right leads to work. I thought I was the problem. I never thought to question the Herbalife business model.
What Opened My Eyes About the Herbalife Business Model?
Then I read “The 7 Greatest Lies of Network Marketing”. It was like the scales fell from my eyes. Suddenly I could look at my Herbalife business objectively.
So let’s say our long-term goal is to build reliable residual income, OK? That was my goal when I started as a Herbalife distributor. Here is why I resigned my Herbalife President Team business…
If the goal is long-term income don’t we need customers that are using products month in month out, long term? Of course we do.
Is that what happens with the Herbalife business model, let’s look at this...
Question: Do you or most of the people you know purchase what they would consider to be a luxury product month after month?
Answer: Of course not.
Question: Are Herbalife weight loss products a luxury or a necessity?
Answer: Well perhaps we could have some disagreement here, granted. But here is what I know from real world experience. When someone losses the 15 to 20 pounds they wanted to lose they stop buying weight loss products. So from their perspective they must be luxuries.
The Four Reasons Why I Resigned a Six-Figure Herbalife Income...
Question: How can you build long-term residual income around a product that is not used by retail customers’ long term?
Answer: It is obvious, you can’t with retail customers.
Herbalife has some great weight loss products.
1. The problem is Herbalife weight loss products are expensive. There are two problems with this:
If the products are perceived to be expensive it is harder to get retail customers. And
If the products are perceived to be expensive the lifetime value of your customers will be shorter because the customers will not choose to be long term customers.
2. The next challenge a Herbalife distributor has is their sales quota. Most people are building their network marketing businesses on a part time basis.
The problem with the Herbalife distributor sales quota is it is set so high that most part timers can’t meet the quota. So they don’t get their full Royalty Commission check, it goes to their upline.
So here you have a part time networker who does the best he can to retail the Herbalife products yet they can’t get a full Royalty Commission check. So he either quits or he turns to recruiting.
3. The end result of this business model is you end up having a few people (builders) all focused on recruiting. So there is no real retail consumption of the product. It really is a few people all focused on bringing other people into their recruiting business.
4. Another major flaw, in my opinion, with the Herbalife business model is the fact that you can only sponsor your people front. This line creates a very top-heavy compensation plan. You end up having more people at the top of the compensation plan than at the bottom.
This is exactly opposite from what we are told about MLM. The business is supposed to duplicate, it gets wider as you go in depth. All I know is that did not happen in my experience or in any of the other top income earners in Herbalife that I know.
If you are seeing wild swings in your network marketing income you may want to really examine your company’s business model if your goal is long-term reliable residual income.
I Had To Quit Herbalife To Achieve My Goal Of Reliable Income
I am finally experiencing the benefits of reliable residual income. I had to quit Herbalife to start over but it has been worth it. My business is built around necessity products, it is based on bringing real value to my customers, it is a lot of people doing a little not a few doing a lot, it is based on real people using and consuming products and I am seeing real geometric growth as my business builds depth.
These components, allow any networker an opportunity to build a reliable stream of future income, do you have these components in your current network marketing business? If not give me a call at 770-205-7330
To read my letter of resignation to Michael O. Johnson, CEO Herbalife International






