“Is There Life After Herbalife?”
The edited-and-with-NO-commercials-interview of Kim Klaver by her old colleague and friend, John Milton Fogg (The Greatest Networker In the World author).
“Herbalife International of America, Inc., Herbalife International,Inc., and Herbalife, Ltd have agreed to fully restructure their U.S. Business operations and pay $200 million to compensate consumers to settle Federal Trade Commission charges that the companies deceived consumers into believing they could earn substantial money selling diet, nutritional supplement and personal care products.” See here.
This restructuring has created humungous changes for the money that Herbalife can pay its top recruiters. Because as of this moment, only ONE THIRD of a distributor’s check can come from overrides earned on the orders of distributors in their downline. TWO-Thirds must come from retail and preferred customer sales – customers who buy, and who are NOT ALSO selling it (who are NOT signed up as distributors in the company).
Top recruiters in any American MLM company might want to start getting some customers that are NOT also distributors. Would the FTC spend 2-3 years on this, and work out such a completely detailed “how to run your MLM business” plan if they didn’t intend this to be the law of MLM-Land in the USA?
This is just mind boggling – for current top recruiters and top earners in Herbalife (and others in the USA?): 2/3 of any check issued to any distributor must be from verifiable retail and preferred customer product sales – real customers, NOT distributors All customer sales throughout the downline count. (Some distributors only order product to stay qualified to get paid). Check where your money is coming from. Customer getters? You’re safe right now, but check your percents. May as well be ready. 🙂
Best skill to develop right now? Build You Inc. Learn to Sell. Market. Promote. And do that so they Come. To. You.
Hi Kim, Thank you for sharing this. I am so pleased that our company launched into this new Social Retail customer-focused model. We are now encouraged to share product benefits with others for genuine customer growth! I feel great about our comoany’s corporate leadership. Thank yiou, Kim! Viola
So Kim, if I’m getting paid on my downline of say 1,000 are you saying that I would also need 2,000 customers?
If you read the FTC order for Herbalife, it talks about the volume. Reps can get paid on their downline orders to the company, but most of the volume that they are allowed to be paid on, has to be from customer orders. So if a rep has volume of $100K in a pay period, and if the rep has no customer volume – orders from customers who were not signed up in the downline also, the rep could be paid on 1/3 of that volume. That’s how I read it. They could not be paid on the rest because it’s not customer orders volume. Make sense? And that assumes that the entire company total volume is 80% from non-affiliated customers. So the recruiter pay drops 2/3 if not more, if they don’t have customers to make up the difference.
Kim, you always make so much sense, and I love the way you convey your message with such passion. I never tire of listening to you!