Herbalife Distributor Compensation Plan

Herbalife Compensation Plan for Distributors

Are you interested in becoming a Herbalife distributor, but want to get some details before proceeding? No problem, below is a quick breakdown of compensation provided by Herbalife. Note that, I didn't cover all compensations, because there are additional ones given to higher level distributors.

Herbalife Distributor Levels

When you become an Herbalife distributor, you are a basic "Distributor" and can earn your way towards 50k President level. It may take many years to get to that level. I was able to make "World Team" status in my first year and I am still at that level after two years. It is relatively simple to become a "Supervisor" level distributor. You gain levels by selling products and gaining volume points. volume points for most products equal to the MSRP of the product. Below are the levels of distributorship starting with where you start, ending with the top level.

Distributor
Senior Consultant
Herbalife Advantage Plan Distributor (HAP)
Success Builder
Supervisor
Active Supervisor
World Team
Active World Team
Global Expansion Team
Millionaire Team
Presidents Team
20k President
30k President
50k President

Distributor Purchase Discounts (a.k.a. Retail Profits)

You purchase Herbalife products directly from Herbalife, then sell Herbalife products to your customers.
When you purchase your Herbalife products you get a discount based on your Herbalife distributor level.

Distributor Level	Discount %
Distributor	25%
Senior Consultant	30%
Herbalife Advantage Plan Distributor (HAP)	35-50%
Success Builder	42%
Supervisor to 50k President	50%

Wholesale Profits

In addition to purchase discounts, you can receive wholesale profits. These are earned once you sponsor new distributors. These occur in two manners.

You purchase products for your sales and for your sponsored Herbalife distributors. You then keep the difference between your discount rate and your sponsored distributor's discount rate.
Your sponsored distributor purchases directly from Herbalife, then Herbalife calculates the difference and you get a check at the end of the month.

Therefore, your share may be from 0% - 25% wholesale profits, depending if your level and the level of your sponsored Herbalife distributor.

Herbalife Royalties

Once you reach supervisor level, you can start earning royalties for sales of your sponsored chain. This occurs for up to 3 levels of supervisors below you. Your royalties range from 1% - 5% of their volume.

Herbalife Production Bonus

As a Global Expansion Team and above, you get from 2% to 7% production bonus. This is based on your TOTAL downline of distributors. You are also eligible for an annual bonus based on Herbalife's total worldwide sales and is represented in a percentage determined by Herbalife annually.

Vacations and Prizes

Herbalife frequently has contests which allow you to earn prizes or all expense paid vacations. For 2006, I earned a vacation to Honolulu for me and my wife! Also in 2006, I won a iPod 20gb, a Swiss Army Watch, a backpack, shirt, and a few other odds and ends.