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**Trademark of Herbalife International of America, Inc.
Herbalife International of America, Inc.
Copyright Jeffrey Babener www.mlmlegal.com
Editor's Note:
Welcome to MLMLegal.Com Company Profiles at www.mlmlegal.com. Here you will find brief summaries of pertinent information about hundreds of MLM, Direct Selling, Direct Sales, Network Marketing and Party Plan Companies. As a general matter, the summary information is derived from Company published information, generally posted at Company websites, public information releases or posts at industry trade sites .*
Founding Story
Herbalife International of America is a global network marketing company that was established in 1980.
The founder (www.mlmlegal.com) of the company is Mark Hughes. He studied health and herbs in China and returned to the United States to work with health experts to create the company’s product line. He was not only the founder, but the first distributor of the company. He was so influential that Herbalife International of America helped establish the Mark Hughes Cellular and Molecular Nutrition Laboratory at UCLA in 2003.
A brief timeline includes:
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1982- Herbalife goes international.
1986- The Company opens trading on the NASDAQ exchange.
1988- Herbalife expands further internationally.
1992- The launch of cutting-edge products.
1994- Hughes unveils the Herbalife Family Foundation.
1996- The Company reaches the $1 billion milestone.
1998- The Company launches 19 new products.
2000- Herbalife celebrates their 20 th anniversary.
2002- Herbalife goes private with major investors.
2003- Herbalife sales exceed $1.8 billion.
2004- The Company launches ShapeWorksTM and goes public.
2005- Herbalife's Silver Anniversary.
Impact on the Industry
Herbalife International of America is a member of the Direct Selling Association and supports the Herbalife Family Foundation and its Casa Herbalife program that works to bring good nutrition to children. The company sponsors sporting events and work to support community social efforts.
Discussion of Products
Herbalife International of America sells Core Products as well as products in specific categories, such as Heart Health, Women’s Solutions, Men’s Solutions, Children’s Health, Healthy Aging, Digestive Health, Immune Solutions, and Stress Management. It also sells personal care items for various skin types, Anti-Aging, Body Essentials, Hair Essentials, Fragrances, and Skin Revitalizers.
Discussion of Opportunity
Over 25-percent of (www.mlmlegal.com) distributors reach the rank of supervisor and higher. The annual gross compensation paid to distributors during 2006 averaged $2,200. Active leaders earned annual gross compensation of $5,100 during 2006.
The company offers distributor training, which includes the following:
- Training that supports growing your business through Distributor calls and events, along with advanced marketing materials and tools, including a helpful, easy-to-use Distributor website.
- An opportunity to take charge of your life by learning the skills that can help you run a successful and profitable business.
- Simple, easy-to-duplicate business programs that are continually redeveloped and refined.
- Support that requires the application of the highest standards of business ethics, conduct and accountability to all Herbalife Independent Distributors.
The company states the following regarding its compensation plan:
- A lucrative compensation plan, paying out up to 73 percent of product revenues to Distributors. In 2007, Herbalife Supervisors received $2.4 billion in commissions, discounts, royalties and bonuses.
- Earn retail and wholesale profits, plus income through royalties and bonuses.
- Repeat orders from satisfied customers experiencing ongoing success with the products leads to higher Distributor incomes.
- Herbalife pays Supervisors and above directly. The money you receive from royalties and bonuses is all yours – there’s no need to cut
checks back to people in your organization.
Herbalife also offers the following income (www.mlmlegal.com) information:
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For more information, one must contact the company.
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Discussion of Distributor Base and Sales Volume in U.S.
Herbalife International of America has more than 2.3 million independent distributors in more than 75 countries and record retail sales of $4.3 billion in 2010. Some of the countries in which the company operates in include: United States, Argentina, Australia, Austria, Belgium, Bolivia, Botswana, Brazil, Canada, Chile, China, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, El Salvador, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Latvia, Lesotho, Lithuania, Macao, Malaysia, (www.mlmlegal.com) Mexico, Morocco, Namibia, Netherlands, New Zealand, North Korea, Norway, Panama, Peru, Philippines, Poland, Portugal, Puerto Rico, Russian Federation, Singapore, Slovakia, South Africa, Spain, Swaziland, Switzerland, Taiwan, Turkey, Ukraine, and United Kingdom.
Company website: www.herbalife.com
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Jeffrey A. Babener, principal attorney in the Portland, Oregon, law firm Babener & Associates, represents many of the leading direct selling companies in the United States and abroad.
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