Mark Hughes started Herbalife in 1980 at the age of 23, he also developed their Compensation Plan. Herbalife has some amazing products. Distributors make a lot of money with Herbalife products.
Mark was the founder and the company’s first distributor.
Michael Johnson has been the CEO and chairman since 2007.
Herbalife Ltd is a global nutrition company and has distributors in over 90 countries.
Herbalife claims that they payout up to 73% of product revenues to its distributors.
There are 6 main ways of earning from the comp plan.
1. Immediate Retail Profit
This is a payment from the sales made to your customers.
It is the difference between the retail price and the discount awarded to your position.
Starts from 25% for a distributor up to 50% for a supervisor.
2. Daily Wholesale Profit
This is the difference between what distributors in your downline pay for products against what you pay for products.
AS a supervisor with a 50% discount and a distributor getting 25% discount, you will make 25%.
3. Monthly Royalty Override Income
As a supervisor, you earn 5% on the personal volume of all of your downline supervisors. This only goes three levels down though.
4. Monthly Production Bonuses
An extra 2% – 7% Organizational Production Bonus can be earned by Top Achievers Business(TAB) team members.
To obtain TAB Team member status, you must be a member of 3 different teams listed below.
A. Global Expansion Team(GET) – Achieve 1,000 Royalty Points each month for 3 consecutive months
B. Millionaire Team – Achieve 4,000 Royalty Points each month for 3 consecutive months
C. President’s Team – Achieve 10,000 Royalty Points each month for 3 consecutive months
5. Annual Bonuses
Only the Top Achievers get recognized here.
6. Qualify for Special Vacation and Training Events
You get rewarded for consistent high performance and efforts in building your business.
The company has special promotions and bonuses throughout the year.
Diamond Rings and gold and Diamond Watches are given to distributors when they accumulates a certain amount of volume.