MLM Network Marketing Training-Evolution of MLM and Network Marketing-Part 4

 

Key To Herbalife’s Success:

The key to Herbalife’s extraordinary success was

Hughes’s magnetic, inspirational personality:

 

“At rally after rally–many of which were broadcast as

Infomercials over the USA Cable Network and by TV stations across

The country–Hughes projected a boyish enthusiasm and

charisma . . . Hughes’ appearances were part revival meeting, part

Richard Simmons-style pep talk, part the Apostle Paul finding

his vocation as a missionary. . . .Hughes could deliver his

rags-to-riches tear-jerker . . . so that it resonated with just about anyone who

wished to lose weight–or dreamed of becoming fabulously rich like

him. ‘Against all odds, he made it big,” says one Herbalife distributor.

‘It was one of the things that drew people to him. He turned his life

around. Maybe we could do it too.’ “

 

*****

But Herbalife hit troubled waters which crested in

June of 2000, when Hughes was found dead. Cause of death? An overdose, and interaction, of alcohol and anti-depressants. See a June, 2000 CNN report reprint at the Rick Ross Institute.com: ckross.com/reference/herbalife/herbalife5.html

 

Herbalife was struggling before Hughes’s death, due to

other bad publicity. See “Herbalife Faces Struggle After Death

of Founder Mark Hughes,” reported by Bloomberg News, August 11, 2000:

http://www.rickross.com/reference/herbalife/herbalife8.html

“After sales grew at a compound annual rate of 18

percent from 1996 to 1999, they were up just 7 percent in the first

quarter. Since the Class B stock hit a 52-week high of 16 1/4 on Jan. 18,

it has fallen 40 percent after Hughes’ failed effort to bring

Herbalife private in a leveraged buyout. . . .”

 

“There are also new problems: ephedrine, used in

Herbalife weight loss pills, has been linked to cardiac arrests, strokes and

deaths by the Food and Drug Administration. . . . Hughes’ own image

of clean living has been tarnished by evidence he smoked cigars and

died after a four-day drinking binge.

 

” ‘It’s very much a cult of personality,’ said David

Stewart, professor of marketing at the Marshall School of

Business at the University of Southern California . ‘When you begin to

hear things that are inconsistent with the image, that can cause all

kinds of problems.’ “

 

*****

Herbalife managed to hang on and, in 2003, appointed

Michael Johnson (formerly with the Disney Corporation) as chairman: http://www.qualityoflife4you.com/michael_johnson.htm

And read more about him in this April 2003 edition of

Business Center News: tp://www.businesscenternews.com/workfromhome/e_article000141505.cfm

See the article “Herbalife Puts Weight Behind New

Push,” from a June 2003 edition of Brand Week, announcing the company’s

plans to launch its first TV ad campaign in over a decade: tp://www.brandweek.com/brandweek/icopyright_display.jsp?vnu_content_id=1917312

 

Herbalife is now also involved in a strategy of

affiliating/conglomerating MLMs: “Heavy Hitters in the Millionaires Club –

Kmiglobal.com, multilevel marketing,” written by Debbie Selinsky and published in the October 1, 2000 issue of Success:

http://articles.findarticles.com/p/articles/mi_m3514/is_5_47/ai_65301851

 

“Kmiglobal’s [Kmiglobal is an amalgam of top MLM

companies] list of company officers and distributors reads like a “Who’s

Who” of network marketing: David Sage, Gil Kim, Judy

Kim, Dwight Johnson, and several other million-dollar babies from

companies such as Herbalife, National Telephone & Communications

(NTC), and National Safety Associates (NSA). . .

 

“Kmiglobal.com was formed as the online division of nutrition/lifestyle organization KareMor International . .

Independent business owners can sign up for $25 and

qualify for their position by generating $250 in purchases and bringing

on two people who’ve sold $250. ‘That means you can earn up to

$1,000 in your first paycheck,’ ‘Through this plan, people

can truly do what multilevel marketing was intended to help them

do–earn full-time pay for part-time work.'”

 

*****

I had trouble finding comprehensive articles about

Herbalife online If you want, you can search for these articles at your

library. (If the paper copies aren’t archived there, you may be able to

access them via the library’s computer system. Just tell the librarian

their in EBSCO’s “Business Source Premier” section.)

The April 4, 2003 edition of “The Wall Street Journal”

contains a profile of Johnson.

 

The October 20, 1997 issue of Forbes features the

article “BUT WHERE ARE THE DISTRIBUTORS’ YACHTS?

When U.S. customers for Herbalife’s dubious elixirs

got scarce, Mark Hughes went trolling for suckers overseas,” by Steve

Lubove. “The Power of Simplicity,” an interview with Mark

Hughes,” by Duncan Maxwell Anderson, was published in the May 1997 issue of Success Magazine.

 

The Nov. 1, 1999 issue of Business Week: “It’s a Wonderful Herbalife,”

a profile of Hughes, written by Kathleen Morris. Another MLM giant:

 

Mary Kay Cosmetics:

Regent Business Review: tp://www.regent.edu/acad/schbus/maz/busreview/issue6/bookshelf.html

features a review of “More Than a Pink Cadillac: Mary

Kay Inc.’s 9 Leadership Keys to Success,” by Jim Underwood

(McGraw-Hill, 2003) From the review written by Diane Wiater, Ph.D., Associate

Professor and the Assistant Dean of the Regent Graduate School of

Business:

“Rather than being a work about Mary Kay the woman,

it’s really about how focusing on others and valuing them will both

improve people and make a business successful. It’s not a ‘just for

women’ book; it’s a ‘just for managers who want to be great’ book.

 

“Underwood presents the nine leadership keys

practically, with significant anecdotal support that they’ve worked

because Mary Kay walked the ‘Golden Rule’ talk. And he explains that

payback was far more than financial. Mary Kay changed lives. She

provided women with a sense of destiny while encouraging the priorities of

God first, family second, and career third.”

 

In fact, Ashe’s impact can’t be overestimated: When

she began her company in 1963, not only did she make the women who

worked for her feel deeply appreciated, she provided them with a (at

that time) rare opportunity to build a career,and one in which they

controlled their own destiny, at that; there was no glass ceiling at

Mary Kay Cosmetics.

 

Mary Kay established the most famous blueprint ever

for MLM success; her legendary “Nine Leadership Keys”:

 

“Create and maintain a common bond.

. Shape the future (think and act strategically).

. Make me feel important (value people).

. Motivate others with recognition and celebration.

. Never leave your values.

. Innovate or evaporate.

. Foster balance (God, family, career).

. Have a higher purpose.”

tp://www.alicepirola.com/inspiration/More_than_a_pink_cadillac

 

 

Blessings…

doug Firebaugh / PassionFire Intl http://www.passionfire.com

© 2005 PFI / all rights reserved

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