Why A Herbalife President Team Member Resigned His Six-Figure Income
I’m Robert Ford. In this article I will share how I became a top earning Herbalife Distributor.
I’ll talk about what I discovered after sacrificing 11 years of my life building a Herbalife business. And why I resigned a six-figure income with Herbalife to start a networking career all over.
Reaching the Top Half of One Percent As An Herbalife Distributor
Three years after getting started in Herbalife (when Herbalife was 15 years old) I had one of the fastest growing Herbalife 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. Keep in mind, this was the late 90's and "Old School MLM" was all there was.
What do I mean by massive marketing action? Here was my method of operation. This is 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 network marketing business at that time? Absolutely yes.
After this level of commitment and work ethic for three straight years my wife and I achieved Herbalife's prestigious President's Team status. 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 Marketing and Reaching Herbalife “President” Team
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. That's why I like them! I’ve made great relationships in this business.
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.
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 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.
Then I read "The 7 Great Lies of Network Marketing". It was like the scales fell from my eyes. Suddenly I could look at my Herbalife business objectively.
Here is Why I Resigned as A Six-Figure Herbalife Distributor
So let's say our long-term goal l is to build reliable residual income, OK? That was my goal when I started building my Herbalife business. Here is why I resigned a six-figure income...
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 analyze 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 weight loss products a luxury or a necessity?
Answer: Perhaps we could have some disagreement here. 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.
Question: How can you build long-term residual income around a product that is not used by retail customers’ long term?
Answer: The answer is obvious… you can’t do it around retail customers.
Herbalife has some great products. The problem is they tend to be expensive.
There are two problems with the expense of the Herbalife products:
1) If the product is perceived to be expensive by your market it is harder to sell to retail customers.
2) If the product is perceived as expensive the life time value of your customers will be less because they will not choose to be long term customers.
A Problem with the Herbalife Compensation Plan i.e. Herbalife Sales Quotas
The next challenge with the Herbalife business model is sales quotas. Most people are building their network marketing businesses on a part time basis.
The problem with Herbalife's sales quotas is they are 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 retailing yet can't get a full Royalty Commission check. So he either quits or he turns to recruiting.
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.
Another Flaw with the Herbalife Business Model
You can only sponsor your people front 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.
Reliable Residual Income – I Had to Quit Herbalife
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.
And now, what I am excited about is applying Internet Network Marketing to my business to see it go to a whole another level. It is, indeed, a great time to be involved with network marketing.
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