Herbalife Leadership Development Weekend April 2011
Average Cost of a Traditional Small Business
- Average cost to open a small business is $88,000
– 90% FAIL in the 1st year
– 10% take 3 years to brake even
- Business monthly expense average $10,000 – $20,000 +
- Responsible for implementing business procedure, accounting, training, support and much more…
Leadership Development Weekend April 2011
Herbalife is The Average Person’s and Smartest Person Best Way to Reach Financial Freedom
- Herbalife takes the responsibility researching and developing our cutting edge state of the art incredible products
- Herbalife manages the employees that serve us
- Herbalife will participate in training your organization
- Herbalife does the big Promotions we have to do the little ones
- Herbalife insures that we get paid every month and even 2 times a month!
Treat Your Business Like a Multimillion Dollar Business
- Stretch your thinking and Imagine what it will be like to a successful
- To have a serious business you have to treat it seriously by doing the following: NUTRITION CLUB
– Personal Invitations (see what everyone is talking about)
– Track your business using gauges
– Work your plan and plan your work
– Discipline, Skill set and beliefs
Doran’s Vision Financial Matrix Model
– The ability to leverage cash flow is what allowed Doran to get to the Chairmans Club in 7 Year
– The business model illustrates the importance of changing our thinking from a mom and pop business to a multimillion dollar business.
– Life time value of a Nutrition Club vs the Cost of Starting one
How is your Herbalife business similar to a traditional company in Corporate America?
It’s not just YOU alone in your Herbalife business
– Traditional companies have employees
– Those employees have duties and responsibilities
– How those duties are performed (good or bad) will ultimately affect the company’s bottom line.
Traditional Companies have a “Chain of Command”, your Herbalife business has a “Marketing Plan”
Know what that Chain of Command is and how IT works. (Corporate America)
- Vice President levels
- Division Managers
- Regional Managers
- District Managers
- Ground level managers
– Income: Salary, Hourly, Yearly increases, possible wage freezes, lay offs and down sizing
– YOU have no control!
Understand the Marketing Plan and how it works FOR YOU! (Herbalife)
Common Reasons For Failure
Change the plans too frequently (90 days)
- Not consistently doing all 4 steps
- Not reinforcing enough
- Not walking the walk
- Not recruiting first line yourself
The Key To Success is Knowing and Applying the Basics
Use the Products: Gain a belief and passion for the results!
- Buy from your own store
- Never buy from the competitor
- Inspire your team to adopt the same
Retail the Products: Understand what role retail plays in your business.
- Retail produces cash flow
- Use the cash flow to fund operating expenses
- Use cash flow to fund your advertising for recruiting
- Re-invest in your business to grow your income
Page 15 Title: Recruit Distributors: Understand what role recruiting plays in your business
- Recruiting produces Customers, Distributors, Supervisors
- Customers produce retail profit through reorders
- Distributors produce wholesale profit (volume producers)
- Supervisor produce royalties 5%
- Royalties move you up the marketing plan which earns production bonuses 2%, 4%, 6%
A Healthy Business:
- Designates retail and wholesale profit to fund the expenses of the business
- Uses Royalties as your salary!
- Save your Production bonuses
- Maintains a Balance between retail and
- YOU are in control of your INCOME and your FUTURE!
- Make a decision to run your business like a business
- Assume the Risk of your Herbalife Business