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debstaats's comment on Online Business Systems ...
Online Business Systems not upfront about Herbalife and/or expenses
I started with Online Business Systems (ie. online Herbalife Marketing) 3 months ago. The initial DP/Decision Package ($9.95) has several CDs and a 4 page folder to get you amped about doing business with a company sold on the NYSE, with nearly 4 billion in sales last year. It does not mention any relation to Herbalife.
After you view this you receive a phone call from your Personal Coach (who has paid for your lead and interest, and is trying to get you to sign on); you are then asked to invest $399 to join, and receive a sampling of Herbalife products. If you do not return the DP you are charged an additional $39.95, and if you do return the DP you are only charged the initial $9.95.
As an Independent Distributor, you do receive 25% of your retail sales. However you are not told upfront that in order to become verified and use the OBS website (that you must be able to access for training, to place and process orders, receive your 800#, your own website, etc), it will cost an additional $100 the first month and $49.95/month thereafter. You then need to invest ~$50 to set up a Merchant Account to process Credit Card payments, and that is an additional ~$25/month. Then you need to tackle advertising expenses.
The next push is to get you to advance from Distributor to Supervisor. At the Supervisor level you do receive 50% of retail sales + 25% of your Distributors (that you have recruited) sales; however to get there you need to sell or purchase $4000 in product retail and/or recruitment in ONE month. At 42% off, that is only $2320+S/H/taxes. There is a 7% handling fee on all products shipped, not including shipping. Overall, it is far better to be at a Supervisor level, with this great return on retail, royalties + 8-25% wholesale profit, and other benefits. However, as an Independent Distributor, doing retail only (without buying leads - which start at ~$500), has been difficult. At first I thought no problem... GREAT products (and I do give the products an A+, with variety, doctor developed and tested, safety, 30 years in the making. Nutritional supplements for health or Weight Control; Energizers; Cardiac, Digestive and other Targeted Nutrition products; Skin and Hair products; Fragrances, etc. No household cleaners as mentioned in another article) I can sell these like candy! Well, on my own with ~$100 spent on advertising + ~$700 invested for start up, I have made only $200+/3 months. You have to invest in "your business" to get the sales and recruit new folks for your credit. In reality, if you have $3,000-$6,000 to invest initially, I DO Believe this is a GREAT Business Opportunity! As you climb the ladder within OBS/Herbalife the rewards are great (receiving a cut of everyone 3 levels below you, other bonuses, there are dozens of people making 10-20K/month. Albeit, they are reinvesting a portion of that to advertising to keep up those sales). Ahhh, I still believe you need to know the whole scoop up front, which they do not advocate or train for (via prewritten scripts for recruiting with their Supervisor on a 3 way call with the recruitee).
The product training IS excellent, and there are live calls at least 4 days weekly, webinars, as well as recorded info. You do not have to reinvent the wheel on printed Product info, etc. My Personal Coach quit a few days ago, returning to a CEO position. I will have her coach now, and perhaps she will be more forthright (however I get the big picture now).
I will continue with OBS as I attain more operating $$$ for my own success. I only wish I had known upfront exactly what it was going to take investment-wise to make the best choice at the time. I do not have an extra $3000 right now to invest in my business. If you do, then I say "go for it"! Otherwise, I would say to hang on to your initial ~$600-700, as OBS is not going to tell you the real deal.
Deb Staats, PA-C (yes I am a Physician Assistant and that is partly why I have such faith and respect for the Herbalife products).