Herbalife logo
1980
Founded
US
Main Office
Breakaway
Comp Plan
$5.80 Billion
Est. Annual Sales
Industry Category
Yes
Sales & Transfers

Herbalife Nutrition Ltd. is an American dietary supplement direct-selling company headquartered in Los Angeles, California. The company was started by Mark. R Hughes, in 1980, from his car trunk, after the tragic death of his mother due to an eating disorder, with a simple weight loss supplement. Soon, Hughes gathered up a team of independent sellers and shifted his business model to direct selling, to never look back again.

Over the next 5 years, what started from a tragedy and at minimal resources would become one of America's fastest-growing direct-selling companies, racking over $450 million plus in profits. Right now, the company operates in about 95 countries worldwide, employs more than 9900 people, has 4.5 million plus independent representatives, and has over 5.90 billion in annual revenue.

Although the flagship products from Herbalife are still in the weight loss market, the company has explored almost every health-related category over the years and expanded its circle of consumers. To amplify the brand's voice, Herbalife has sponsored many athletes, most notably Cristiano Ronaldo and Lionel Messi, as well as different Volleyball and Soccer teams.

With effective marketing, countless business opportunities for ordinary people, and marketing that doesn't seem to fail, Herbalife is arguably at the top in the direct selling world, despite the huge number of controversies to its name.

Herbalife has a massive inventory of products for its independent representatives and consumers. Following are some of their most popular categories:

Core Nutrition

This category consists of 3 subcategories, each with products focused on fulfilling the body's micro and macronutrient needs to grow and thrive. Products from each of the three subcategories are often combined for maximum benefits.

Healthy Weight

Healthy Weight is Herbalife's flagship category consisting of personalized weight loss programs, weight loss enhancers, protein supplements, etc. Herbalife makes more than 30% of its profits from this product line since it's the most popular and effective. These products sell like hotcakes.

Specialized Nutrition

Specialized nutrition, as the name suggests, is a particular category that targets very specific areas like digestive health, heart, immune, male, and female health. However, it should be well kept in account that none of those are FDA-approved, so they should be used carefully.

Energy and Fitness

The category consists of several product lines, including fitness, hydration, energy, and sports, and it has everything from workout and fitness drinks to nutritional drinks and anything else you need to stay pumped in the gym and on the field.

Skin and Hair Care

Includes soaps, serums, and creams for daily use and special conditions like acne, etc., to keep the skin healthy, clean, and glowing. While this isn't anything new, the "special" botanical ingredients and less use of chemicals (per the company's claim) make these products effective. 

Herbalife's Compensatin Plan Type is Breakaway

The breakaway plan is used by Herbalife to organize their groups of distributors. In a breakaway plan, also commonly referred to as "a plan within a plan," the Herbalife distributors are paid in two different ways depending on if they have reached a "breakaway rank".

Once a Herbalife leader reaches the breakaway rank, she and her downline form a new unit where she will earn commission based on the rules for her rank. Some compensation plans have multiple breakaway groups that are formed as the distributor hits the rank goals. This is often referred to as a stairstep breakaway plan.

Herbalife Address Info

800 West Olympic Boulevard
Suite 406
Los Angeles CA 90015-1367
US

Herbalife Contact Info

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Considerations when choosing a health and wellness direct selling company

People looking to start working with a health and wellness MLM company should first study the existing trends and focus on a niche they find compelling. Some of the top fields include weight loss, anti-aging, diabetes, reproductive health, and fitness.

But how do you pick the best health and wellness MLM company for you? You can choose from larger businesses whose well-established popularity will help you promote and sell your products more efficiently.

Alternatively, you can opt for smaller but driven companies with substantial potential for growth. That way, you may find it easier to climb the corporate hierarchy and become a leader in your branch.

When choosing a product to sell, pick an option you deeply believe will benefit your customers. Another crucial aspect to consider is the commission. Most health and wellness MLM companies offer 20-40% commission on all sales. Some also provide material bonuses for their top weekly, monthly, and yearly performers.