MLM Blog – Network Marketing Blog

Herbalife Sponsors Indy 500 Entry

Posted on 02. Mar, 2010 by Dan Mitchell.

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Herbalife, a global nutrition and direct-selling company, announced today that the company will serve as the primary sponsor for the No. 99 Sam Schmidt Motorsports/Chip Ganassi Racing entry in the 2010 edition of the Indianapolis 500-Mile Race driven by Herbalife-sponsored athlete Townsend Bell.

Bell, 34, of San Luis Obispo, Calif., comes back to the "Greatest Spectacle in Racing" in the bright green HERBALIFE SSM/CGR Dallara Honda open-wheel car after recording a sensational charge at the famed Indianapolis Motor Speedway in finishing fourth behind the wheel of the Herbalife machine in the 2009 running of the world's biggest auto race.

"Bringing Herbalife on board for this year's Indy 500 is very exciting for our effort in 2010," said Schmidt, a three-time Indy Lights champion team owner. "A worldwide nutrition company such as Herbalife gives our SSM/CGR program a strong foundation to prepare a winning machine for Townsend. Again partnering with Chip's operation puts us in a position to qualify well and race for the ultimate motorsports prize, the Indianapolis 500. We have an excellent team led by Chris Griffis and I am very proud to enter a solid effort for the Indy 500."

Source: Market Watch

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Food and Drug Administration Official Joins Herbalife

Posted on 20. Jan, 2010 by Dan Mitchell.

Herbalife Ltd. (NYSE:HLF) today announced that Vasilios H. Frankos, M.S., Ph.D., will retire from the FDA in March and join the company as senior vice president, product compliance and safety, effective April 2010. Frankos is currently the director, division of dietary supplements programs, Center for Food Safety and Applied Nutrition (CFSAN), at the Food and Drug Administration. He will report to the company's General Counsel Brett Chapman.

Frankos, one of the country's foremost authorities on dietary supplements, has more than two decades experience in creating policies and standards for safe and effective dietary supplements and ingredients, and led efforts in developing good manufacturing practices (cGMPs) and Serious Adverse Events Reporting.

"Bill Frankos exemplifies Herbalife's commitment to providing science-based nutritional supplements of the highest quality available in the marketplace," said Michael O. Johnson, Herbalife chairman and CEO.

Source: Business Wire

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Network Marketing Compensation Plans Part 1: The Stair-step Breakaway

Posted on 18. Jan, 2010 by Ty Tribble.

Stair-step Breakaway Plan

Company examples: Amway, Arbonne, Nuskin, Avon, Pre-paid Legal, Herbalife.

History and definitions:

The stair-step breakaway is the oldest of the compensation plans and was created by Amway in the 50's. Most early Network Marketing companies copied the plan and based on the fact that these companies have been around for a very long time, the largest companies in the industry typically have a stair-step breakaway plan.

The stair-step breakaway allows for an unlimited number of people to be personally enrolled on your front line and pays in a volume based stair-step manner. For example if you enroll 3 people who do $100 of volume, those 3 people might qualify for a 3% bonus on the the $100, where you would have a total of $300 on your team, you would qualify for 6%. The company would pay you the difference between 6% and 3%. This % "stair-steps" up so as your volume grows your % gets higher and you make a larger % difference.

The breakaway part of the plan is that when a person gets to a certain level, they will "break away" from you, causing you to earn less money on the volume that person creates.

Commentary: Problems with the breakaway plan are numerous. Most of the time the issue starts with the company and what % they pay back to the distributors. Amway has averaged a payout of roughly 30% back to it's distributors which is about 40 to 50% less than the fastest growing companies in the industry today which pay 40 to 45%. In other words to get paid the same in Amway vs. many other companies today, you would have to create 150% more volume.

The other major issue with the breakaway plan is the actual breakaway. You could put your blood, sweat, tears, hundreds of hours and money into one of your teams and then if they match your level ( in other words you help them succeed), your income will drop significantly once they "breakaway".

Stair-step breakaway plans are also back end weighted but it usually takes some additional maneuvering to make a large income. You will hear about tools and training system income, distributor pools where distributors have multiple positions and share the revenues and other shenanigans that offer the appearance of large incomes even though the largest producers are making a fraction of what they portray.

The Bottom Line: Stair-step Breakaway plans are like a used car:  Folks can get attached to them but new cars outperform them in every category. The fundamentals of this plan were developed in the 1950's and there is a reason why you rarely see a new company using a breakaway.

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Herbalife Presents at the 12th Annual ICR XChange Conference

Posted on 10. Jan, 2010 by Dan Mitchell.

Herbalife Ltd. (NYSE:HLF) Chief Financial Officer John DeSimone : , and Amy Greene, vice president, investor relations, will participate in the 12th Annual ICR XChange Conference on Wednesday, January 13 at 2:40 p.m. PST at the St. Regis Hotel in Dana Point, Calif.

 The audio portion of the presentation will be webcast live, and a replay will be available until Friday, February 12, 2009 on the investor relations section of Herbalife’s Web site at www.ir.herbalife.com

Source: PR-Inside

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Herbalife Does The Corporate Shuffle

Posted on 17. Dec, 2009 by Dan Mitchell.

Herbalife Chairman and CEO Michael O. Johnson today announced three promotions on his executive management team that are effective January 1, 2010.

Des Walsh is being promoted to president, from his role as executive vice president, worldwide operations and sales. A member of the executive team since he joined in 2004, Walsh is responsible for the growth of our business by working closely with distributors to achieve greater access to and deeper penetration of Herbalife products throughout the world. He oversees all distributor-facing functions in each region where the company conducts business, including marketing, promotions, sponsorships, events, and distributor communications. Walsh has worked with Johnson for more than 14 years including while serving as vice president of The Walt Disney Company’s Buena Vista Home Entertainment.

Rich Goudis, who joined the company as CFO in 2004, is being promoted to chief operating officer with responsibility for building and sustaining an infrastructure that allows the company to achieve its growth goals. His functional responsibility includes worldwide operations, human resources, and information technology, along with the back office functions in all the regions. Prior to Herbalife, Goudis was chief operating officer at Rexall Sundown and also had responsibility for General Nutrition Center (GNC) operations.

John DeSimone is being promoted to chief financial officer. Having joined Herbalife in November 2007, DeSimone first served as SVP, finance, and since 2008, distributor operations as well. His accomplishments include leading the company’s acquisition of its first manufacturing facility, spearheading new country openings, and overseeing strategic planning, forecasting and budgeting. DeSimone previously served as CFO at Rexall Sundown.

Source: BusinessWire

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Herbalife Thailand Aims For Top 5 In Direct Sales

Posted on 11. Dec, 2009 by Dan Mitchell.

Tim Sanson, the new general manager of Herbalife International (Thailand), is making it a priority to build a solid foundation for the business and support growth in local distributors. His goal is to make Herbalife one of the top five direct-sales companies in the Kingdom in terms of sales.

Sanson, who is also vice president for Southeast Asia of parent company Herbalife, said he would also work for a regional strategy and provide new country support for Thailand.

"We [the local unit] are in the top 10 of direct-sales firms in Thailand, but we want to improve our ranking here to the top 5 under my term," said Sanson, who took over the Thai operation this year.

He said he wanted to improve Herbalife (Thailand) in terms of both business volume and its ranking in the parent's global network.

"We want to make sure we can offer the right infrastructure to support our distributors and that our products are being sold through the right distribution channel," said Sanson.

As vice president for Southeast Asia, Sanson oversees Herbalife's business in Australia and New Zealand, as well as in Thailand. Sanson joined Herbalife in April 2002 as general manager of the Australian distribution centre. Since then, his responsibilities have grown to include several key markets in the Asia-Pacific.

Source: The Nation

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Herbalife Herbal Products Linked To Toxic Liver Disease?

Posted on 21. Oct, 2009 by Dan Mitchell.

Source: Psychology Today

Here's an interesting article from Psychology Today by Dr. Paul D. Blanc, M.D., M.S.P.H.

A few months ago, I consulted on the medical case of a young man with an extremely low platelet blood cell count. The problem, which could have caused life-threatening bleeding, was suspected to be a medication side-effect. The patient had been diagnosed with inflammatory bowel disease and recently started on a standard and widely-used medication for that condition. But the issue was not so straightforward. At the same time that the treating doctors prescribed the drug, the patient also began self-medicating with a Chinese, multi-herbal preparation.
A check of medical databases quickly revealed a strong connection between a Chinese five-herbal concoction called "Jui" and dangerously low platelet counts. But we had no idea what our patient's herbal mix contained and whether its ingredients overlapped with Jui. When we finally obtained a list of the multiple plant materials that made up the brew, we found that one of its twelve herbal ingredients indeed did overlap with Jui.
Both the prescription medicine and the herbal treatment were stopped immediately and the patient pulled back from the brink. We'll never be certain which substance was the culprit, because that would require deliberately giving one and then the other medication to see what would happen. That includes, unfortunately, a drug that would otherwise have been his treatment of choice.
This type of problem is made all the more complicated by the frequent use of multiple combinations of herbals and various other "natural" complimentary therapies taken together, rather than use of a single substance. Nor is this practice limited to traditional Eastern regimens. Beginning in 2007, a series of cases, first from Switzerland and Israel and later from in Spain and Argentina, all linked Herbalife products to liver disease consistent with toxic injury.

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Herbalife Establishes Casa Herbalife Program in Croatia

Posted on 25. Sep, 2009 by Dan Mitchell.

Source:Business Wire

The Herbalife Family Foundation has established a Casa Herbalife program at the Dom Tuskanac charity (Children and Youth Home) in Zagreb, Croatia, to help support the center to provide good nutrition to children.

The Children and Youth Home provides accommodation for children who suffer from moderate mental or learning disabilities which prevent them from staying with their families. The center has been caring for children for 64 years and currently accommodates 66 young people. One of the major tasks of the Home is to prepare the young people for independent life and work after they have completed their education and integration into the community.

This is the 45th Casa Herbalife program to be established worldwide. After an initial grant from HFF, local Herbalife independent distributors and employees will support the program through volunteerism and fundraising.

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Herbalife Earns Leadership in Energy and Environmental Design (LEED) Certification

Posted on 18. Sep, 2009 by Dan Mitchell.

Source: Business Wire

Herbalife (NYSE: HLF), a global nutrition and direct selling company, announced that it earned Leadership in Energy and Environmental Design (LEED) certification for the environmentally friendly design of its offices at L.A. Live in downtown Los Angeles. The LEED rating system was designed by the U.S. Green Building Council to measure the sustainability of buildings.

Designed by HOK, the space was created to minimize the company`s footprint through careful use of materials and design. The effort was part of the company`s commitment to the 3Rs - Reduce, Reuse, Recycle. The company`s downtown location is a destination showplace for its independent distributors who visit from around the world. The space is stylish, yet was created using recycled and rapidly renewable materials.

The company earned credits for its efforts in specific areas, namely Sustainable Sites, Water Efficiency, Energy and Atmosphere, Materials and Resources and Indoor Environmental Quality.

Herbalife works on an ongoing basis to encourage its employees and independent distributors to `Live Green` through a variety of programs and education.

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