Building Your
Herbalife Business to Last Forever This covers the O'Connell's personal rise to success and overview of how it works and why it works. The basic objective of any distributor who wants a six-figure income is to develop these three groups until they have at least 10 fully qualified members of each of the 3. That's right, it's so simple a strategy that it sounds farcical, but If you want to reach not only the President Team, but the Chairman's Club, you only need 10 qualified members of each group on your first line. To give you an idea of just how well this strategy works, Kurt and Cindy O'Connell have 7 members of each group and are on the Chairman's Club and earn around US$2m/year! PREPARE TO SUCCEED when you use the step by step mentoring process 2 through to 13. If your sponsor cannot help you or is in another country, take responsibility for your own success and go through the process and apply it to yourself so you are equipped for building your own solid organisation and great success. Cindy O'Connell (President Team member --> Chairman's Club member in 2001 ) Their income (monthly) history - Feb. 1999 ............................................ $1,704.84 (residual income) They didn't have much of a team to teach at that time. They were finding a team to teach. Had been static for quite awhile and realized they were not taking their new recruits through the initial basic steps to get going that is so important. Put the Mentoring Programme together with amazing results. Aug. 1999 (6 mos. later)........................ $4,230.22 (10-12 supervisors) They got an excited team at that time. Feb. 2000 (finished Mil. Team )............ $10,465.51 (Mil. Team bonus not yet kicked in ) $20,355.58 (when Mil. bonus kicked in) Aug. 2000 (finished President Team) ... $27,692.18 (Pres. Team bonus not yet kicked in) In Sept. 2000 ... more than double ........ $58,103.94 (when Pres. bonus kicked in) Feb. 2001 ........................................... $65,257.42 March 2001 (qualified for 20K bonus)..... $85,219.95 per month!!! They said they couldn't imagine when the 30K bonus kicked in!!! End of 2001 ---> Chairman's Club!!! In the beginning of their plan, they found 18 1st-line to work with. Out of that, 10 wanted to go somewhere. Because what has happened to them, they teach effectively --> Stress others to do the same! The O'Connells, " Are Your Dreams Alive! " Your willingness to put forth your ACTIONS to your dreams, and help others to do the same is what it takes. Here is the O'Connell's personal story as it unfolded- They got married 16 yrs ago. Kurt, paper boy for 18 yrs. $5/hr. Their entertainment budget was $25 per month, driving a $600 beat up Toyota. Cindy - kept going for plasma donation just to supplement their income. Kurt - always dressed very poorly...never owned a suit. But they have BIG DREAMS! It took Cindy 3 weeks to make a $30 decision (for her Herbalife products) The first STS, they drove down to Chicago and stayed at the Motel 6. They had worked part-time for 11 months until Kurt went full-time. 6 months later hit GET. But for 4 1/2 yrs, they were stuck at GET. They literally stopped the business for a few months and analyzed what were the missing ingredients. Realized it was the mentoring process that was clearly lacking. They went from 3,000 rp per month to hit a 5 figure income or more per month in less than 1 yr! Kurt: "The #1 mistake people make is NOT INVESTING IN YOUR #1 ASSET ===> YOU by educating yourself and learning the skills. We have the best products and the best compensation plan. The most important asset is YOU . Kurt: You have to understand the environment of your fish (the market place). Offer solution of the problem. We have the product (Work-At-Home opportunity) of what the public is badly looking for. We have the best Work-At-Home opportunity . We have the best products out-performing other products in the market place. Without the products, we can't present with confidence. Cindy, "More fatal heart attacks occur at 9am, Monday morning than at any other time in the week." That means "People would rather die than go back to work!" Here is the Million $ Secret unfolded. Three things we each must do - # 1. Use the Products - Use all the products. The more passion we have, the more we'll be able to teach. Something powerful in that! It's your personal products use. Then add gradually more products...shifting your spending from your competitors to your own store. Shop from your own shop (shampoos, hand cream etc.) and teach your team to do the same. # 2. Create Personal Volume By doing the 1 and 2 ( Use the Products & Create Personal Volume) - fantastic potential for good supplemental income .) #3. Teach Others to Do the Same - Teach them #1 How to Use the Products. Teach them #2 How to Create Personal Volume . Teach them #3 How to teach others. --> How to Use the Products, How to Create Personal Volume & How to Teach Others to ---> How to Use the Products, How to Create Personal Volume & How to Teach Others --> on & on...) The Magic Word is DUPLICATION - The O'Connells, "We are in business of DUPLICATION, not just a retailing and recruiting business. Successful Duplication --> Royalty Income You do need some form of advertising. They all work, no secret. Kurt & Cindy started out locally with a very limited budget... a lot of flyers and pull-tabs and Work-At-Home posters/signs and some ads later on. Total Plan is also a way of working with limited budget. They gave out only the CONCEPT not detail of methods when recruiting. According to the O'Connell's, the details are available at the STS's and various Herbalife trainings. Determine how much time and money you have. No money, pound the pavement. Just find something that is going to fit you. Here is where the Use, Wear & Talk come in - * Use (Use all the products as stated above) * Wear (Your Advertising Plan) To build your business, you have to have an advertising plan. (If you have a method that is working well, teach downlines the same way!) * Talk (presentation) Keeping things standard makes them go faster. (Show them different entry levels...pro's & con's (cost & value)…….the three groups Tell them that the most important investment is in themselves: trying the products and getting educated (STS). Now for Your Herbalife Business "Most people overestimate what they can do in 3 months and underestimate what can be achieved in 3 years."…..Jim Rohn.It's hard for new distributors to think long term when they first start their Herbalife journey. People are often short of money and under pressure by the time they come to us, and that is never a conductive environment under which to build a business. The trick is to help everyone you sign up to see the long term vision and to set them on the correct track right away. There are a few basic principles for you to remember about the Herbalife business: 1. it's a business just like any other. We market a range of weight-loss, healthcare and personal products, as well as a home business program that has a real value and demand in the marketplace. People want what we offer and are willing to pay for it. This is a proven business model with almost 25 years of success stories to prove its stability and economic stamina. 2. Real businesses are not built overnight. It takes a few years to build the goodwill and customer base of any business to the point where it becomes stable and highly profitable. (Anything that works quicker than that is either a scam or highly unstable. There is no such thing as quick easy money, and the sooner you accept that, the sooner you will knuckle down to the real work of building your distributorship without distractions). 3. A six figure income (i.e.: more than 100,000/year) is possible within 18-24 months in Herbalife provided you are consistent in applying the Basic skills. Consistency and personal belief applied to the correct strategy and a commitment to personal development is all that is required. What's not required is special skill or talent. 4. ANYONE can do this, but not everyone will. Why not? As Jim Rohn says “I really don't know, it's a mystery and we aren't paid to solve mysteries." If you will just exercise some discipline, work hard and consistently on yourself and on your Herbalife business with the correct strategy for 24 months then you can enjoy a lifetime of economic freedom. This is not up to your sponsor or your parents or even your downline. It's up to you. In order to succeed, you will need to take personal responsibility for your own success. Ok. So what is the correct strategy to use to reach the goal of a six-figure income in 24 months? That's simple. You need to learn how to build your groups. Herbalife Groups Before you build your own personal first line groups with consumers, volume producers and business builders, you first need to determine where you fit in. L ook at the categorisation form that we send out to new recruits if you are already in Herbalife and have not done this yet. First, let's define what each of these three groups are: Consumers / Volume producers A &B / Business Builders Consumers They are regular users of the Herbalife nutritional and personal care products. These people have no interest in the Herbalife business opportunity, but simply love the products. Volume Producer B: These are distributors of the company's products who consistently produce retail and wholesale volume. They do not however do the work that is required to generate a large productive organization and are essentially only focused on earning income from retail and wholesale, or even retail only. This is a person who wants to do the business but has low level expectations and a limited commitment. Typically this person will do anything from a few hundred volume points per month up to 2,500. Most Volume Producer B's love the products and tend to retail to their centre of influence. Volume Producer B's often don't qualify as supervisors, and realize that with a limited time and money investment comes a limited return. Volume Producer A: This is the most common category for a new distributor to fall into. These are very often distributors who want to ultimately make a full time career out of their own home based business. They are however more constrained by their available time and money, and can't become business builders until they have more resources at their disposal. Typically, they often can't go supervisor immediately but they agree to make up any lack of capital they have with extra time and effort. Business Builders: This is a rarer bird. Business Builders can only qualify to be in training once they have done 5,000 volume in one month @50%. However, some people are Business Builder material from day 1. They are prepared to invest both the time and the money right from the outset to get their business off the ground. They will buy a supervisor order, plus embark on a big 90-day plan as soon as they can. In addition, Business Builders are not afraid to talk to their centre of influence or do whatever it takes to get the job done. They are those people that have both the desire and the work habits to reach the President team. They aggressively and consistently follow their 90 day plan, learn the basic skills quickly and are proactively involved in building their 3 groups and teaching these principals to their first line business builders. So let's discuss now how you would go about recruiting and qualifying members of these three groups: If you don't yet have people to work with, you need to break as many supervisors per month as you can, so that you build an organization. It all starts and ends with you, and when you make up your mind to be successful and pay the price, you can. The first step is to learn the basic skills you need as a Herbalife Distributor. Which I am going to cover just now. Then you need to have these 2 lists in front of you (I have a whiteboard in my office) Then when you speak to your new distributor you need them to tell you which group they fit into. The key thing is to make certain that your new recruits into the business know what is expected of them if they wish to become a qualified business builder or volume producers and not just trainees. Once your new recruits have received their IBP's its time to explain the 2 categories of Volume Producers and Business Builder to them. It's up to them to decide into which of the 2 groups they would prefer to fit, based upon their business objectives. The part time supplemental income people would be Volume Producers in training and the full time career potential income people would be Business Builders in training. The key thing is that they are only trainees until they have done what it takes to qualify from your trainee list to your graduation group. The same principal applies to your assessment of the retail recruits you get. They only move from your trainee consumer list to the graduation list once they qualify. Explain to each new recruit the qualification process so that they can understand their first business objective very clearly. This means that you will have 2 sets of lists to help you keep track of your business. The first is your trainee list for Consumers, Volume Producers and Business Builders, and the second is the same 3 group lists as graduation lists for those who have qualified. Let's discuss the qualifications that you ought to have in order to move new recruits from the trainee lists to the graduation lists. 1. Consumers: whenever you make a retail sale, that customer becomes a consumer in training. Only when that customer has re-ordered twice (ie: placed a total of 3 separate orders for 30 day supplies including the initial order) do they move from the trainee to the graduation list. Your objective is to follow them up and look after them so that they become consumers. If a consumer becomes dormant for more than 3 months, they should be moved back to the trainee list and a new member of the graduation list sought to replace them. 2. Volume Producers: a volume producer can be either a distributor or a supervisor. The qualification to this level is very easy and is only 500 personal volume points or more for 3 consecutive months. That's right, if a distributor or a supervisor does 500 or more volume points for 3 consecutive months, they are qualified to move from your trainee to your graduation list. If a qualified volume producer fails to maintain the 500 volume point level of monthly production for 3 consecutive months, then they should be removed from your graduation list and a qualified replacement should be recruited. 3. Business Builders: these are very important recruits, since they will be the people from whom you principally earn royalties and bonuses, the majority of your income as a business builder. In order to qualify to this level, you need to be doing the job of building a President Team group. There are now 2 ways to ensure you are on track to reach the GET, Mill and ultimately the Pres Team. The 1 st way is to produce 10,000 personal volume in 3 consecutive months and the second is to do 5,000 personal volume in each of 6 consecutive months. As soon as you have done that, you will qualify to the graduated list of Business Builders or those who desire a full time career income from Herbalife. In order to maintain the status of an active Business Builder, a distributor on this list should maintain a minimum volume of 2,500. If he/she fails to do this base volume for 3 consecutive months, then that distributor should be deleted from your list of graduated Business Builders. Your basic goal is to build and maintain 10 fully qualified members of each of these 3 groups. As soon as a member of one of the three groups fails to maintain their status, a replacement should be found to keep your graduation list of 10 active and complete. ( The process of replacing and finding new members for each group is an ongoing one. Nothing in life is static and you should expect to replace graduates on your three lists from time to time. Your regular monthly retail and recruit activity if structured correctly should do that automatically .) How will this process help you to earn $millions if you practice and teach these principals? The answer is simple. You have 2 challenges when you are building your Herbalife business as a Business Builder. The first is to master the production of personal consistent monthly volume. The second is to build an organization of distributors and teach them how to master their own personal monthly production. To better understand this process, let's define personal production. Personal production in Herbalife is measured in volume points. Volume points are generated when retail sales are made, when wholesale customers purchase product and when supervisors qualify. In order to have consistent monthly volumes, the easiest and safest way to build your personal production and that of your organization is to generate volume from all three areas. This means that when one area fails to generate the volume you anticipate in any given month, the other two areas make up for that lack of performance and your personal production is not compromised. This will create a large margin of safety for you so that you can always qualify for events and have no difficulty in doing your basic volumes every single month. Personal Production Results: In an ideal case, you would have 10 members of each of the three groups. In that situation, you would have the following at a bare minimum: 10 Consumers = approximately 1,000-1,500 volume points/month 10 Volume producers. Lets say 5 are supervisors and 5 are still distributors that means 5 distributors X 500 volume minimum = 2,500 volume points. Therefore with no additional recruiting or retail activity, your personal production would be at a bare minimum 3,500 - 4,000 volume points. This volume is very solid and safe because it's generated by 15 different individuals and not one single supervisor order. If one or two people let you down, it's no problem because your personal production will still be way above the 2,500 minimum you need to maintain your status as a Business Builder. Your monthly recruiting and retail activity would also be added to this personal volume tally, making 10,000 volume/month very easy to consistently achieve even if you only recruit one supervisor/month. Organizational Production Results: The development of your organization will depend on how long your Business Builders have been in business and how big their organizations are. For the purposes of illustration, let's assume all 10 are an average of GET team. That would generate enough volume to make you a President Team member. Take 10 Business Builders X 25,000 volume = approx. 250,000 volume The other 5 Volume Producers who are supervisors would contribute a minimum of 2,500 to that organizational volume. That means an organizational total volume of well over 250,000 and an income of over US$25,000/month. I am sure that everyone can see the income benefits of building these three groups just from these rough figures. If you now understand the advantages of building these three groups, how do you start the process? The first thing to do is to fill out your current graduation lists of consumers, volume producers and business builders. See what you have. Then fill out your trainee lists. Then get to work finding your Consumers, Volume producers and Business Builders. And we will see you on the Chairman's Club. |