28/12/2016
Founded in Los Angeles in 1980, Herbalife is a global nutrition company with millions of customers and approximately 8,000 employees. We operate our plants and facilities in the United States and China and export our products to more than 90 countries worldwide. We are a publicly traded company on the New York Stock Exchange (NYSE: HLF).
Frequently Asked Questions
Who is Herbalife?
Founded in 1980, Herbalife is a global nutrition company that has been changing people’s lives with great products. Our nutrition, weight-management, energy and fitness and personal care products are available exclusively through dedicated independent Herbalife distributors in more than 90 countries. We support Herbalife Family Foundation (HFF) and its Casa Herbalife programs to help bring good nutrition to vulnerable children. We also sponsor more than 200 world-class athletes, teams and events around the globe, including global soccer superstar Cristiano Ronaldo, the LA Galaxy and champions in many other sports.
The company has 8,000 employees worldwide and net sales of $4.5 billion in 2015. Its shares are traded on the New York Stock Exchange (NYSE: HLF).
What is the customer-distributor relationship?
Herbalife customers successfully attain their nutrition goals when they have someone to guide them through the process. One of the key values of Herbalife is the one-on-one coaching and support that Herbalife distributors provide to their customers. Herbalife customers get much more than a product, they get great support and a plan to meet or exceed their personal nutrition, weight-management and fitness goals.
Why do people become Herbalife distributors?
People become distributors for a number of reasons. About 73% join primarily to receive a discounted price on products they and their families consume and enjoy. Others wish to earn supplementary income through direct sales.
How does Herbalife compensate distributors?
Herbalife pays compensation to distributors based solely on the sale of product.
Like other sales organizations, if certain sales thresholds are met, the company will pay a bonus based upon a percentage of a product’s suggested retail price.
Under the Herbalife marketing plan, it is possible for a new distributor to come in and build a business and ultimately earn more income than those above them.
Does the company have strong protections for the consumer and the distributor?
Herbalife provides the Gold Standard in consumer protection. Details of these guarantees are provided to all distributors through a variety of methods.
The company clearly presents the benefits of distributorship and provides complete information about realistic potential income, which has to be proactively acknowledged by any potential distributor before an application can be signed.
There are no minimum purchases required and there is a low cost of entry.
The costs for becoming a distributor are reasonable: an introductory Mini Distributor Starter Pack costs $59.50 or a Full Distributor Starter Pack costs $92.25. These starter kits contain products with a combined value exceeding their purchase price and are backed by the company’s fully refundable, 90-day money-back Gold Standard guarantee if membership is cancelled for any reason.
For those who choose to pursue the business opportunity, the company provides robust training for distributors, including financial literacy, entrepreneurial “how-tos,” and the importance of avoiding exaggerated or misleading claims about earnings or products.
If a distributor chooses to leave Herbalife for any reason, any unsold products can be returned within 12 months of purchase. Return shipping and handling is paid for by Herbalife.
Does Herbalife have a regulatory compliance infrastructure?
Compliance with all applicable laws and regulations is taken very seriously at Herbalife and promoted and taught to all distributors.
Former Federal Trade Commissioner, Pamela Jones Harbour heads the company’s global compliance department. This global compliance team monitors distributors’ health and product claims and ensures that they comply with all guidelines established by regulators and the company.
If any Herbalife distributor or customer has a complaint, there are confidential hotlines and protocols to ensure their grievances can be highlighted and addressed. These hotline numbers are included in every Herbalife product delivery to ensure all distributors have access.
Herbalife provides distributors with claims guidelines and compliance seminars to encourage best practices.
Herbalife also utilizes a network of mystery shoppers and ambassadors that help coach distributors and ensure compliance with rules.
What quality controls does the company have in place in the manufacturing of Herbalife® products?
How does Herbalife ensure products are safe?
Herbalife® products are based on proven nutrition science, a commitment to nutrition research and development, a rigorous quality assurance program and control of product integrity from Seed to Feed. They are food, not medicine. Herbalife® products do not treat disease or claim to do so.
Herbalife’s Seed to Feed strategy ensures integrity of all products from sourcing of raw materials to delivery of finished product.
Herbalife has rounds of testing at key points in the product manufacturing process to ensure quality and safety.
Herbalife owns four manufacturing facilities around the world that operate to the highest Good Manufacturing Practices (GMP) standards.
Herbalife manufacturing facilities and testing/quality labs are audited by independent organizations and are accredited by ISO and certified by NSF International in the U.S.
Herbalife has an industry-leading post-market surveillance system for adverse event reporting.
Herbalife’s quality assurance is overseen by Vasilios H. Frankos, M.S., Ph.D., a former director of the Division of Dietary Supplement Programs at the FDA’s Center for Food Safety and Applied Nutrition.
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