What is MLM?

MLM means "Multi-Level Marketing". There has been alot of negative conotation associated with this term. Mostly due to money hungry individuals who have attempted to hijack the internet with "get-rich" schemes that don't work.

Herbalife on the other hand is a multi-national enterprise serving health products in 61 different countries. Their #1 rated compensation plan is setup in an MLM format or pyramid.   Although not a pyramid scheme, you can read more about pyramid here.

This compensation plan benefits you and allows you to better prepare for future advancement in the company to President's Team.  There you may be asked to hold seminars to help train new distributors.

Here's a diagram of what your organization can look like. 

Note: Your volume points (VP) are calculated down three levels of supevisors below you.  A supervisor is a "rank" within the Herbalife Distributor organization.  To attain this level you must have sold either 4000 VP in one month, or 2500 VP in two consecutive months.  You only have to do this once.

Herbalife Compensation Plan

Herbalife uses a series of compensation levels.  The ones that apply to Herbalife Distributors at "World Team" level and below are:  Wholesale profit, and Royalties.  These are both based off of volume points.

As an example of how volume points are calculated, below is a little math to go along with the above graph. Imagine the following scenarios:

Herbalife Wholesale Profit

This is calculated as the difference between your discount rate and your downline's individual discount rates.  For instance, assuming you are a supervisor and your downline is a regular distributor, your wholesale profit would be 25%.  Therefore, based on the above, you could be making up to 25% profits on the downline!

Herbalife Royalties

As a supervisor, you have the ability to earn royalties ranging from 1-5% every month. These royalties originate from your "supervisors" personal volume; not counting their downline's.  Now assuming that the volume in the above table represent the "personal" volume of your supervisors, lets compute that based on the above scenarios.*

Your potential revenues from royalties alone would be the amounts indicated above.  You would receive these in the form of a check every month.  This does not include the wholesale profit that would also come in a check every month.

The above scenario is why Herbalife MLM compensation plan is the best in the health industry and one of the best in all direct sales businesses.

* The above figures and calculations are fictitious and do not represent any guarantee.