I have been researching Herbalife nutrition clubs and the model is interesting but confusing. Distributors open physical locations that serve Herbalife shakes and teas, but they cannot technically call them restaurants because the products are not registered for commercial food service in many areas. Some club owners reportedly make good money, but others have invested $20,000+ in setup costs only to struggle. The FTC settlement specifically addressed nutrition clubs. For anyone who has run or visited a Herbalife nutrition club - what is the real experience like?
I have been researching Herbalife nutrition clubs and the model is interesting but confusing. Distributors open physical locations that serve Herbalife shakes and teas, but they cannot technically call them restaurants because the products are not registered for commercial food service in many areas. Some club owners reportedly make good money, but others have invested $20,000+ in setup costs only to struggle. The FTC settlement specifically addressed nutrition clubs. For anyone who has run or visited a Herbalife nutrition club - what is the real experience like?
My biggest piece of advice - never recruit someone who cannot afford to lose their investment. If a person is living paycheck to paycheck, you are potentially putting them in a worse financial position. Be ethical about who you bring into the business.
If you are going to do MLM, track EVERY expense from day one. Most people have no idea how much they are actually spending versus earning. Create a spreadsheet with every product purchase, sample, event ticket, gas, and tool subscription. The numbers will tell you the truth.
The comparison between MLM failure rates and traditional business failure rates is misleading. When a traditional business fails, the owner usually has assets, inventory, and equipment they can sell. When an MLM distributor fails, they have nothing but overpriced products in their garage.
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