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How does the market plan work (in detail)?
The Herbalife market plan is incredibly generous. They pay 73% of the retail price of the products back to the distributors! How do they do that? Does it sound excessive? It is interesting when you look at it. When you go into a retail shop and buy a lamp, or a table or an electric fan the manufacturer who made the product will be very lucky if they are getting 30% of the sale price. First there is the manufacturer. They sell the product to an international distributor. There are export agents and import agents. Normally there is a national distributor who buys the product to distribute around the country. Finally there is a retailer. By the time everyone puts a margin on the product the difference between the manufacture price and the retail price is huge. As I sit and type this there has been an article on the television about farmers complaining that they are having to sell their produce for 60c a Kilo at the farm gate but when it is resold to the public in the vegetable section of the supermarket they are having to pay between $4,70 and $6.00! The farmer is getting between 10% and 15% of the retail price. Herbalife is holding 37% and doing very well with it. How does it work? First there is a retail profit for doing the work of representing the company and selling the products. This starts with an initial discount of 25% as a consultant The Herbalife market plan is based on “Those who do the work, get the pay” When you do higher volume you get a higher discount. This is called a Senior Consultant The next level of the market plan is when you qualify at the first level of leadership in the company and become a supervisor. As a supervisor you receive a personal discount of 50% on your purchases and qualify to earn wholesale income on the volume of people who are working with you that you have recruited and are training. When you have other supervisors in your business then you can earn royalty income on the business you have helped to create and you are beginning to create passive income (income that will happen without you having to do everything yourself) As you build your business you will be able to achieve the leadership levels that we refer to as our Tabulator Team and qualify to earn infinite level bonuses. At the very top of the market plan there are bonuses for the people who help others achieve the top level. This is a very small percentage with only 1% of sales allocated to it but in a multi Billion dollar company that is a lot of cash and they hand it out as an annual bonus, all on one night. I will not distract you with the bonuses now and how to qualify for Herbalife holidays around the world. The thing we need to focus on now is that you can earn 25% to 50% discount on products you purchase (50% discount is the same as a 100% markup on your purchase price). This gives you a chance to create cashflow quickly and to always be able to generate cash to pay your bills. The second area to concentrate on is what royalty income means to you. Here is a Herbalife chart of income produced from building an organization of distributors and helping them to be successful themselves.
It is a nice way to make a living. Immediate Retail Profit (25%-50%) Daily Wholesale Profit (8% - 25%) Monthly Royalty Override Income (Up to 5%) Monthly Production Bonuses (2%, 4%,6% to 7% on your organizational volume) Annual Bonuses Qualify for Special Vacation and Training Events
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