Why A Herbalife President Team Member Resigned His Six-Figure Income



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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.

Robert Ford

Ever wish you knew how to use Google Adwords... Discover PPC and dominate your market!

 

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About the Author: Robert Ford

Member Since: 03/13/2008

Company: TimeandFreedom.com

Industry: Marketing and Advertising

Primary Web Site: http://www.TimeandFreedom.com

Comments



Herbalife.

I tried it once.  I choked on the horse pills and almost threw up.  Thankfully I found liquid vitamins that didn't taste like a barium enema (anyone remember KM by Mattol?  yuck)

Everyone has their own supplementation.  most go to Wal-Mart.  they like to save money.

Sure, there are a few medical miracles out there unapproved by the FDA.  I'll continue to take my liquid supplement from Sam's Club that already has mangosteen, acai, wolf berry, this berry that berry every where a berry berry with an ORAC value of 10,000.  It keeps me going, keeps me happy.  I don't need to sell it.  All is well with the world.

Technology and service industry beats selling each and every time.  Does Mike Dillard keep pushing Xango to this day?  No.  hmmm.  if everyone wants to "be like Mike" maybe they should take a better look at what he's doing.  some of you are and that is awesome.  I only hope the others will follow suit.

Good for you getting out of Herbalife!  Right on brother!  It's time for new school, not old school.

David Dutton's ... — Thu, 02/05/2009 - 3:03am

Thank You

I have to say I am over whelmed by all of the positive feedback by the BN community. In reality I have my father to thank because he really belived in living yur life by your word and how you traet other people. This will be an on going story and some of the most exciting parts are about to happen. I will keep you posted...

 

Robert Ford

Robert Ford — Fri, 02/06/2009 - 11:35pm

Thank You

I have to say I am over whelmed by all of the positive feedback by the BN community. In reality I have my father to thank because he really belived in living yur life by your word and how you traet other people. This will be an on going story and some of the most exciting parts are about to happen. I will keep you posted...

 

Robert Ford

Robert Ford — Fri, 02/06/2009 - 11:35pm

Once a Leader, Always a Leader

Wow Robert,

You're truly a champion of the industry and I thankyou for sharing that experience. It certainly will reverberate around this community for months to come. I keenly soaked up every word you wrote and have just now visited your blog to read your review of the 7 Greatest Lies.  And it's interesting to note, that while I have always been attracted to the promises of Network Marketing and the residual income, it's been these 7 Greatest Lies that I had been fed also, is what set about the procrastination and ceased my efforts in attempting to build an organization.

It's truly hard to make decent friendships in the first place without destroying it with attempting to prospect them as well.

I've jumped from a couple of companies.  I tried Hebalife and 4 Life and am currently an active customer with Melaleuca (but Melaleuca is not the business I choose to build).  I guess I was searching for a leader, not an extravert with success from "Old School Network Marketing Success". 

I never found that leader I was looking for. So that's why I decided to become the leader I didn't have. One that would learn what's currently successful and then apply it to their business.  And now that I've found Mike Dillard and others, I have realized to help others without want.  Use my internet marketing skills to "find" that market and give them the exact same tools that have worked for others.

Your story is truly amazing and it's evidence of the doubt that people have when you prospect.  "What if ?"  

It's like swimming up stream and then taking a rest, only to find out that you've lost ground.  How can a company truly survive on a business plan like that.  I guess it's like many fish in the sea.  Some make it upstream, while many many don't. 

It sounds like you're onto a winner now.  Frank Vandersleuth is a true champion and leader and by discarding the "Old School" methods, you're sure to succeed in no time with their system.

I wish you all the very best and I also look forward to reading more from you.

Have Yourself the Best Day Ever.

Best Regards,

Steve

Steve Metcalfe — Sun, 02/08/2009 - 4:35pm

Accepting Your Own Resignation ?

Hi Robert,

Thanks for that eye opening account of your ex-company.  It must have been quite a decision to turn your back on what you had worked so hard to build (and the income). 

It does make an interesting twist to the "I fired my boss today" story when you were the boss ;)

All the best,
Dean.

 

freemoney (not verified) — Wed, 02/11/2009 - 4:37pm

I am brand new to this forum.

I am building a wonderful Herbalife  business. Herbalife went from 3.5 billion in 2007 to 4 billion in 2008. Hence the term No Recession Here! I am sorry it was a difficult venture for you. I have been in other MLM's and am very pleased and excited about my current business. I don't care if there are only 1000 or 10 Prez Club members. I believe in the 80/20 rule. 80% of people will do 20% of the work and 20% will do 80%.

I know that all the ground work in Herbalife was done by people like you. I totally appreciate all that you did to help it to be the company it is today. I am also thankful that I have never had to hang a sign. I only hand out 25-50 invites a day 3 days a week and our clubs revenue doubled last month.

We have Nutrition Clubs popping up in 70 countries worldwide and it is exciting to be on the groundfloor of this opportunity. Yes we are still working out the bugs so to speak. I have clients that prefer to be wholesale buyers and not future Prez Team members, but each club that opens in my team will put $500-$1000 in my pocket every month. If it takes me 5 years to grow from the 4 I have in my team since I opened last March to the 40 I'd like to have who cares. People are being seen, personal programs are being designed and nutrition coaches are being trained daily and we are getting great results and loving it. I have a club member who has lost 150 lbs in 1 year and 3 months. I have members off anti-depressants, acid reflux meds, allergy meds, no longer diabetics, no longer testing autistic, no longer high blood pressure and no longer high cholesterol to name just a few. People come everyday to have a perfect meal for breakfast and lunch. It is exciting to say the least.

I joined this site recently to get some insight as to how to build my online portion of my business. I want to develop an online club to be able to continue to service my clients when I move back home to Oregon to open my next club. I am very interested in learning how to master that. I will never give up my club environment to just spend my time at a computer again. I need to be around people and more active than that. I was a bookkeeper in the back office for far to long! Appreciate any advice out there to help me create my online club model.

Just thought you'd be interested to know that Herbalife is alive and well in the wellness industry. I am grateful for all it has become since Mark Hughes began to sell the first Herbalife products out of his trunk in 1980. I also appreciate getting pharmaceutical grade 100% products at a reasonable price instead of the food grade 30% products at value pricing in drugstores and supermarkets.

 

Sandra Morales — Thu, 02/12/2009 - 12:55am

Herbalife: The Aftermath...

Hey Robert,

I bet if I wrote an Ebook with that title and sold it on Clickbank, I could recover my expenses incurred by the Herbalife MLM. Actually, it is not Herbalife, it is the Online Business Systems that is just awful. Thanks for the truthful and disappointing story about your experience with Herbalife. I got roped in and bought my way in to being a Supervisor. My upline is a Nanny and she treated all of us like children. I had a prospect that I found without buying the leads. My upline insisted on being on the sales call and she ran roughshod over me and my prospect. My prospect was interested in becoming a Distributor, however, the Nanny conned her into buying over $200.00 of product, which she canceled the next day. She found another Herbalife Supervisor to work with and I was left holding with nothing but a damning voicemail which I promptly distributed to the Nanny, the Coach, and the President team guy. I never heard from any of them again.

I quit Herbalife in August, and I received my Supervisor pins and certificate in January of this year!! I just shook my head and tossed the stuff in the trash.

I am a huge fan of Ann Sieg and am working with Renegade University/Marketing Merge. Having worked in the Internet sector since it became commercialized, I have an excellent understanding of technology and marketing analytics. I was never involved in sales or affiliate programs, etc. I am learning and I really love the Renegade University and 'Attraction Marketing.'

So, that is my Herbalife saga. Live and learn...

Thanks for sharing!

Be well,

Elle

 

Ellen-Cathryn Nash — Thu, 02/12/2009 - 10:07am

Ann Sieg, the Greatest

Hi Robert,

Just want to say that since I last commented here on your post, I had visited your blog and read your review on The 7 Greatest Lies of Network Marketing  (  aside note ...  ah ha, I almost wrote ...  The 7 Greatest Lies of Internet Marketing )

Anyway, I went onto buy The Renegade Network Marketer  and read it enthusiastically over the next 2 days.  Actually, I didn't want to put it down, but had to to get some decent sleep before my next shift.

This is absolutely brilliant stuff here and so glad I read your post and then your blog.

So thanks again for the story and also including the links to this valuable information.

Also, if someone passed by those links that Robert had to his blog here they are again. 

     "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."

Best regards,

Steve

Steve Metcalfe — Fri, 02/13/2009 - 10:57am

Thank You So Much

Thank you so much for shareing your experiences.

I looked at a few MLM companies before joining ACN for all the reasons you shared.

Again thank you for sharing and good luck with your new endevouir.

Scott

Scott Wainwright — Wed, 02/18/2009 - 12:53pm

What a Great Story!

Hello Robert,

Thanks for sharing this inspiring story. I read your letter to Michael O Johnson with interest.

I believe at the end of the day it is your business and you choose what is right for you. I am sure all the experience and learning that you got from Herbalife will help you with all your future business endevours.

Wishing you Success

Damayanthi

 

 

Damayanthi Jaya... — Wed, 02/18/2009 - 4:30pm

Too bad...

It is a really sad thing when one person has a bad experience and writes the whole company off. If that was the case, I would never be able to shop at any store anymore! Everyone has their bad eggs, that is why attraction marketing is soo much better. Find someone you trust and respect, THEN join their team.
Wish you the best!

Samantha Cook — Thu, 02/19/2009 - 6:02pm

Ex - Herbalife Distributor

Hi Robert,

Thank You so much for your article.  It was very insightful and interesting being that 8 years ago, I was introduced to network marketing through becoming an Herbalife distributor.  I learned as I worked and only ended up with a pile of debt and lots of product on my shelf.  The spark of residual income and living a debt free life was born though...and shortly after that, I met my husband who introduced me to Mannatech.

We went to a National event and met the corporate people and the founders....I was blown away by the Integrity and Strength of the company and seeing results in my own life, we went head on into sharing the technology with others.  In 3 years, we grew our business to a top level in the company and continue to share this technology with others.  I believe that you have to be passionate about what it is you represent and with a strong focus on helping others and Integrity of those in corporate, you can do it!

Thank You so much for your article!  It was very insightful and a blessing.  Best of Success to you in your new ventures. 

God Bless,

Amy Jo

 

 

 

 

 

 

 

Amy Jo McMorrow — Thu, 03/05/2009 - 7:35pm

Leaving a 6 figure income at Herbalife

 Excellent article Robert and thank you for sharing. You really broke it down honestly and fairly regarding Herbalife. What I got most out of this article was that part-timers should be able to be successful too and if that is not able to happen then you really need to look and see if one will truly create residual income. Thanks again. 

http://llclady.magneticsponsoringonline.com

Simone Hardy — Tue, 03/24/2009 - 5:48pm

Leaving Six Figures takes guts

Hi Robert,

Great article. I can't imagine doing all that stuff in order to be successful, but can certainly understand. The old school methods are not something the average person can do part time. You must have spent thousands of hours doing this.

Your honesty and frankness about what you went through to achieve that kind of success is refreshing. I have heard it so many time how someone achieved success, but your story rings so true. How many countless others have a similar story? I'll bet they are all over, in almost every MLM.

I know my struggles for the first 5 years and know I'm not alone. That's why, when the Renegade came out after reading The 7 Great Lies, I was so excited. Now, people everywhere are finding success they were promised, but they are finding it by coming to the Internet, not by continuing in the "old school" methods. It's a new age and the Internet is center stage, so to speak. This is right where we need to be.

Great seeing you here. Now, I'm heading over to your blog.

Have a great weekend!! :-)

Michelle Moseley

Michelle Moseley — Fri, 06/05/2009 - 4:52pm

Robert. Hi! Would you be so

Robert. Hi!
Would you be so kind and provide me with your direct link to Maleleuca?

AburtoMiranda (not verified) — Tue, 06/09/2009 - 2:13pm

Mark Hughes

Hi Robert. All that I know about Herbalife is that Mr. Hughes brought the Ephedra- Ma Hung herb from china and sales literally skyrocketed to like over 40 Million a month, till the F.D.A banned it on '04.

Did you know that 1 company has had Ephedra back on the market for a year now? You can check it out Http://www.theximostore.com It's the Re-Introduction of Ephedra back into America. 1 company. Please check it out and let me know your thoughts. I feel that the timing in this industry is perfect. All knowledgable insight is appreciated. Sincerely, Tim Kilgore

Tim Kilgore — Tue, 06/09/2009 - 5:00pm

Merci !

A big MERCI from France for this article, Robert!

In your response to a comment, you summed up why we decided to leave Herbalife :

"When I realized that over 90% of the people I introduced to the company would end up losing a sizable amount of money it just wasn't something I could continue doing."

We may not have been anywhere close to your rank nor your income level, but it wasn't looking good where we were either. We still use some of the products, but product quality is not really the issue here. For us, it was the business model and company/group culture that pushed people to lose a lot of money. People WE brought into the system.

Sure, they should have been personally responsible for their own businesses and budgets. No one put a gun to their heads. But when you tell someone who trusts you/your group/the company, that truly successful people are motivated and always find ways to make that huge Volume Points quota at the end of the month, some become reckless and indebted, while others lose confidence and self-worth.

One of the reasons why we were seduced by network marketing was its real opportunity to earn money while helping others enjoy the good stuff, too. But after seeing people we truly cared about get into financial trouble and all sorts of emotional states, we had to stop what we were doing. Besides, we were not far from the brink as well. We walked away feeling like complete and utter failures.

We swore off network marketing but soon after, we saw that with other companies, the business models and compensation plans were totally different. So here we are again! Wounded but wiser.

We look forward to more of your articles and we thank you for your leadership and integrity!

Bienetrevenu France — Thu, 06/11/2009 - 9:50pm

I Love to Hear These Old School Stories

Robert..what a fantastic story! Credit over to you.
Network marketing is taking a massive shift over.
Thanks so much for sharing that with us.
And it's so true Peter of how you mentioned "a business that WE ourselves own (not the companies)"

Regards

Erle

Erle Freeman — Fri, 06/12/2009 - 7:26pm

Fantastic Article

Robert,

You have explained it very well the challenges of traditional network marketing. I shall follow your blog to learn more about how to take this business on to the Internet.

Cheers
Jackie
http://findhomebusiness.weebly.com

Jackie Khor — Mon, 07/13/2009 - 6:12am

Brave Man

Robert you are courageous to see the big picture and take a different course of action. Your story shows the world that you are no longer a six figure thinking man...you have expanded to billionaire status wtih many more options to inject into to your "success" life.

You show the community when integrity rules you still can be rewarded for your actions and enjoy living your life daily. The Power os association reenforces the decisions you and your wife made to transition into your next chapter.

Eileen Burns — Wed, 08/05/2009 - 10:24am

Hats off to you my

Hats off to you my friend.
You are a true inspiration for those of us who are looking to follow the great leaders in our industry.

Jayne Cambra — Sun, 08/30/2009 - 8:22am

Residual Income

Thanks for sharing your insights and experiences about your "Success" in Herbalife.
I know people in this business and some do good, but it's true it gets harder to keep up with a business model like this and a compensation plan that seems to only work for the upline.

My business model rewards team work and personal organization growth. We focused on values and teach people by example, we don't sell them products, instead we educate them in how to use better ones for their needs and health. And this what i like about this model, a business model that lets you build truth instead of "customers".

This is why there is connection with your points of view.

Jhonny Serrano — Sun, 08/30/2009 - 10:32am

Way to Go Robert!

I loved your story and am very happy for you. I left Herbalife in 2006 as well, much the wiser but poorer financially from trying to buid my business. My experience with a duplicitous upline lead me to FINALLY do my homework and learn about this challenging but fascinating industry.

All the Luck to You!

Tony Lauria — Sun, 08/30/2009 - 9:05pm

Excellent!!!

Hi Robert,

In 2006 I started in Herbalife, and soon I discovered what took you years to discover: That people consider it a luxury. I spent a lot of money buying products that people only bought me once or twice. It was very difficult, even more when they could find similar products for less at the supermarket. I am happy I was able to discover that on time and I didn't renew.

After that, I didn't join any other company until 1 month ago and now I'm trying to learn how to use the internet in my MLM business. I'm excited with my products and the compensation plan of my company. I will visit your blog frequently to learn from you.

After reading you, I felt a relief: I was not wrong.

Carmen

Carmen Masironi — Fri, 10/02/2009 - 4:00pm

Maybe you missed what Herbalife really stands for...

Hi, i just come across you page, and although i have been in Herbalife for almost 18 years, i have never heard your name. In my early years i knew all of the pres team, most of them even personally. I was a personal friend of Mark. My pictures were in his book. In Herbalife you build a network, not just retail, and together with my wife we turnover about 250.000$ / year own, personal volume/sales. Then of course we have build a network of succesful distributors who became leaders of their own organisation, where we get paid Royalties and bonusses for.
Herbalife is very easy and simple to do, as long as you keep it that way, and build a group of people where everybody has fun and do what THEY want to do, not what YOU want them to do.
I'm pretty proud to say that my supervisor retention is over 90%,AND that i also had to learn how to do that. It was not like that in the beginning, when i lost my distributors and my retention was very low. I just learned how to do that.
And it is easy.
And do we grow? Of course we do! This running year(september now) the group has grown almost 60% in numbers since Newyear.
And this is the truth.
i have fun because i make sure there's no pushing or hyping to do volume. It just grows organic, and that is how it should be to my belief.
Yours in health & wealth,
Raf
www.rafrottiers.com

Raf Rottiers — Fri, 09/10/2010 - 7:09am

Really?

Completely untrue!

If your delivering 1000 lyers at aproximatel 100/hour you would be delivering for 10 hours per day. Your legs and feet would experience AGONY!

SECONDLY - if you have enough money to adevertise in classified each day to that extent, print 7 K flyers per week etc , your not exactly strapped for cash as those things cost money - coupled with..

THE TIME it would take for you to do the follow ups on those responding - when would you be doing that? on your one day off from flyering while your legs were suffering from nervous shock??

If you did any thing at at like this 'low budget low tech marketing strategy' it would have involed paying school kids or pensioners to drop 200 leaflets a day - or standing in a shopping centre handing them out or giveing them to shop keepers.
Classified? copy and paste to websites I expect.

How would you have found time to ell the priduct.

And how is it that the link on the first 'comment' is your own affiliate link?

Ann Campbell — Thu, 06/30/2011 - 4:33pm

come on man!

luxury. hhhmmm. there are 150,000 millionaires in the UK alone let alone folks making 6 figures a year so loads of affordability. Now think about the USA and beyond for potential customers.

plenty of folks in herbalife had their cheques go down so they worked it out and built it more. your story seems to be one of 'bugger, this is too hard, I'm off' because you built it once and thought that would be job done. No business is job done man!

not a fan of the negative story leading to another offering.

cant believe how many folks like this story. Its not inspiring at all.

strange.

Jay Roberts — Sun, 07/31/2011 - 5:15am


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