The compensation plan is a stair-step breakaway. My purpose is not to enter into much details on this type of compensation plan, but just to point out that with this model only a few top distributors will come out ahead. As shown on the Herbalife official website, in the Herbalife Compensation plan, only about 1% of active leaders make more than $80,000 a year, and 2% more than $18,000 per year.

Every single day I get inquiries from Herbalife reps from different countries who are struggling and can’t figure out how to be successful in their Herbalife business. There is no doubt that Herbalife is a very reputable company with high quality products. So why are so many Herbalife distributors struggling and failing?

It might well be because times have changed. The MLM industry is changing fast, the promises of MLM and “life-long” residual income are gone for the average person. And uplines are still teaching reps old methods that do not work anymore: the old-school techniques are dead and will get you nowhere. Forget chasing friends and family, buying leads, cold-calling, spending hours on the phone qualifying prospects; forget hotel meetings and handing out flyers in supermarkets. This might have been efficient when we were not living in the internet age. But this is 2009 and our cyber world.

The new generation of internet marketers has already understood this. Today’s top marketers have a totally different way to look at their business that completely changes their results. They learn how to understand and leverage the power of the internet, they learn how to position themselves as leaders, they learn how to bring value to the market and the industry so that they can attract an endless stream of prospects to them.

If you want to make money in your Herbalife business in 2009 and have a chance to be successful, you’ll have to learn how to build your business like the top producers in this industry.