Transcription
And we have every right to dream heroic dreams, those who say we live in times in which there are no heroes simply do not know where to look for them. My father left before my birth, basically I was raised by my grandparents. Marc's family always had weight problems, particularly his mother. In her eagerness to control her weight, she became addicted to prescription diet pills. I remember seeing her in the hospital, seeing everything that happened to her because of the drugs and what drugs can do to one. When I turned 18, she finally passed away from a drug overdose.
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In search of a way to avoid the type of suffering his mother had gone through, Marc attended a symposium and herbal convention held in the Republic of China. What he learned there convinced him that nutrition and herbalism could be the safe and effective key to weight loss. Since then, he sought the best manufacturer for his products, and from a small office in the prestigious city of Beverly Hills, which also served as a warehouse and distribution center, Marc earned over $23,000 in his first month of business, spreading the word of Herbalife through ads, flyers, and his opportunity meetings on Tuesdays, Thursdays, and Saturdays.
One of the first people to respond was Jeri Ann C. This ad simply caught my attention. It said, "Prisoner, are you tied to your desk? Do you hate having to justify your hours? Look at this ad." And I took it. It was the only one I took. It was the only one I responded to. And Marius answered. Always looking for ways to increase sales, Marc's first promotion was a weekend in Palm Springs, California. Nine individuals qualified, which increased Marc's royalty check to over $2,000. By the end of his first year, Herbalife's sales had reached the incredible sum of $2 million, and the company moved to its new offices and warehouse in Culver City. Quickly outgrowing that space, Marc had to acquire an additional warehouse to supply the incredible amount of product being shipped. And on September 12th, Marc received his first production bonus of $21,000 with sales of $10 million. By the end of the first year, Herbalife began its first international expansion to Canada, with Leslie Stanford leading the way. I remember one day, I was just flying. No, we couldn't believe it. My royalty check had gone from $2,000 to $8,000. $419,500 in three consecutive months. There was nothing Marc wouldn't do, even going door-to-door explaining his concept of using the products, wearing the button, and talking to people. He worked tirelessly, communicating the Herbalife dream across the country. In a period of four weeks, he spoke with over 4,500 people at six corporate rallies across the United States and Canada. Now the time had come to take the company around the world. Herbalife's next step was to reach further, opening the Australian market in April 1983. While at home, the excitement was growing. It has taken us over three years to establish ourselves in this position, but now hundreds of thousands of people know about our products, our company, and know what happens. It wasn't her who involved me. They can determine that she is strong about this. Before, she was a rock star. So I would like to greet you. I have a great advantage over all of you. I have great experience in marketing and business. I have a degree in ceramics. And the business became family fun. As Marc welcomed them to his home for the first big Herbalife party, he also opened his new corporate offices. With sales already exceeding $150 million, the business was growing so fast that Mark was dazzled. I've been waiting for this meeting. Even before the company opened. Tonight, when I entered the auditorium, I couldn't believe what was going to happen tonight. And sitting behind the stage, looking at it, the only thing I can say is that I can't believe what has happened with all of this in the last four years. I can't believe it. The biggest bonus check that night was $125,000. When you have money, you can do a lot for your family and your children. But in the first year with the company, we made $400,000. And now this. I still don't have a credit card. Then, that same year, Herbalife debuted on the air with its communication network, bringing health and opportunity to every home, beginning a new era of television broadcasting.
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Herbalife's message was available to millions of people across the country. And as Herbalife became a national phenomenon in the United States, it also began its expansion into Europe with the opening of the United Kingdom in May 1984. Located in Lawrence, James Caron, Marc always looked for ways to keep the business fun, simple, and magical, like renting two DC-10 airplanes and filling them with distributors, taking them to Sydney, Australia, for the biggest Herbalife meeting to date at the Sydney Opera House. And nothing like it had ever been seen before. I've lost over 20 pounds so far. This is the best. In less than a year in the business, our ninth royalty check was $40,883, and we are excited. I used to drive a truck, and last month I earned $80,000. Do you want to get into this business? No.
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Look at us. Look at us and tell us the truth. Who looks better and why? It will be me.
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In 1985, the momentum stopped. The U.S. Food and Drug Administration, encouraged by the pharmaceutical industry, launched an investigation of the industry in the United States. This caused a nationwide panic, taking Herbalife with it. There will be more articles coming out about this company, and not all of them will be positive. Some of them will be very, very negative. Do you understand? They are going to throw some punches at us. They are going to say some bad things about our products and some of the ingredients. You put this protein powder in, and it makes you feel alive, and at the same time, they criticize you for doing it. I think the criticism comes when you have so many people doing so well. I'm asked questions like, "How can so many people be doing so well?" And I think the same applies to money. The company, as announced on the program, has revenues of $500 million. Why don't you? You have many partners with whom you have to share that amount. There are approximately one million distributors out there. How much of that will reach them for selling the product? 66 percent. 66 percent of it goes to the people. Distributors were asked, with the support of thousands of distributors, to march in Washington. D.C. Marc testified before the U.S. Senate in what was his battle for his dream. For six days of arduous, televised testimony, during which Herbalife was the main focus, Marc's confidence in his products and his dreams never wavered. They asked to bring those people instead of those so-called nutrition experts. I think if they are such experts in weight loss, why are they so fat? It seems to me, and I'm not trying to make a joke, that they should use our products. I would like to say a few words. First, I think the main question in this room for the last two days has been, "Are Herbalife products safe?" And it has been clear in these meetings for the last two days that they invariably are. And I am happy to announce that after a year and a half of many discussions with the Food and Drug Administration, the Attorney General of California, and the State Department of Health, these three agencies have independently determined that Herbalife products have been and continue to be safe for the American public. Furthermore, all claims, labels, and marketing materials are in accordance with the spirit and letter of federal and state laws.
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In the last three weeks, I have lost 32 pounds. I can't believe I'm losing weight. In seven months, I have lost 208 pounds. It has been so exciting. I have lost 228 pounds. Ladies and gentlemen, normal, dignified. Before Herbalife, I only dreamed of being thin. I only dreamed of it. Thanks to Herbalife, I am now thin. Looking to the future, Marc brought Jim Rohn on full-time. The only obstacle to becoming successful with Herbalife is simply your self-imposed limitations, with no limitations imposed by Marc or any distributor. All the production bonus winners from around the world came to Los Angeles to celebrate Herbalife's seventh anniversary.
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From the Wiltern Theatre, the event was broadcast live via satellite to three continents. The message was the same as always: the dream, the products, and the opportunity.
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The eighth anniversary was celebrated in grand style, with Marc gifting a Rolls-Royce to the number one distributor live on stage in San Antonio, Texas. Then it was time to go to the United Kingdom for a majestic celebration at the Royal Albert Hall.
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The next stop was Sydney, Australia, for a hot day at the Centrepoint Theatre, where New Zealand was officially welcomed into the Herbalife family.
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And finally, to Toronto, Canada.
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As the 80s closed, Japan, Israel, and neighboring Mexico were added to the family. Another Rolls-Royce was presented to the number one distributor, and Europe opened its doors to Herbalife, with the business moving into Spain. And as the world celebrated the fall of the Berlin Wall and the collapse of communism in Eastern Europe, a wave of hope carried Herbalife into the 90s. With 10 years of experience, Marc and the distributors could look to the future and intensify their efforts to build the business locally and globally. The 90s began with good fortune, as the European market expanded with the openings of France and Germany, while at home, a new program was launched, establishing a new business and new leaders. What we are going to do now is present to you what you will receive when you get your new box of the studies program. I know that you will not only be happy but that you will also make a lot of money, as we are doing right now, which is $40,290.67 in just one month. 1991 would change the course of Herbalife's history. First, the company adopted a completely new image, and then Marc made a major change to the marketing plan with the introduction of the 246 and shifting the focus from the distributor to their organization. Sales increased, in some cases doubling income. Spain and France were competing with the United States for the number one sales position in the company. Portugal, the Czech Republic, Italy, and Hong Kong jumped on board. Marc united the world in Long Beach, California, to set the course for the year. The only thing Herbalife was missing was that product that would grab the world's attention. And with Marc having a trick up his sleeve, the introduction of Thermo Jetics Green and Beige. And 1992 was nothing short of incredible. In its first year, U.S. sales tripled. All you have to do is take one of these three, two of these, twice a day, and you will lose weight like crazy.
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The stage was set for a celebration like never before seen at Herbalife. All countries united in Paris, and again in Barcelona, changed Herbalife forever in Europe. To this day, those who attended the extravaganza in Barcelona remember those days in February that changed their lives forever. Italy is in process, and Holland was welcomed into the Herbalife family. In 1993, worldwide sales jumped from $405 million to $700 million. Herbalife was on its way to becoming a billion-dollar company. In business, leaders gathered in Maui and Cannes to set the course, mixing fun with business. Mark developed a new plan for the future. In 1994, Argentina and Venezuela were the first South American countries in the business, and the Dominican Republic opened Central America. Poland, Denmark, Belgium, and Sweden were added in Europe, and the Philippines in the Pacific Rim.
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13,000 distributors enjoyed Richard and Natalie's other extravaganza, and I am so excited. Really, in the second year of doing this job, this company has paid us $1.16 million. At the party of the century, the floor broke, and by accident, it became the party of Domino's Pizza and Dom Perignon. The next day, the cruise with cues. This same year, Marc started the Herbalife Family Foundation, dedicated specifically to helping children in crisis around the world.
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The biggest event in Herbalife's history was the World Extravaganza held in Atlanta. This is where over 35,000 distributors representing 6 continents gathered to launch the personal care product, nutrition for the inside of your body, and now Derma-erics for the outside of it, adding personal care to the already incredible line of nutritional products. Derma-erics was quickly reaching $100 million in its first year. After that, we are going to start with the new Herbalife television network, which will reach your television screens. Here is the TV guide. Now distributors could present their guests with all the best the company had to offer, directly in their homes.
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After a few months in Paris, the six fragrances of Vita-Sounds were launched via a live satellite broadcast around the world, which also served as the official opening of Russia. We are going right now to Red Square. Hello, Marc, how are you? And also with Herbalife. This year, Taiwan, Austria, Switzerland, Brazil, South Africa, Finland, and Norway joined. New corporate offices, Greece, Korea, and the Presidential Summit marked 1996. From around the world, members of the International President's Team from the United Kingdom received $750,000.
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Marc once told me, "You will be more proud of who you become than of the money you achieve." And how true that is for all of us in this room, especially for Caron and me. And along with everyone, I would just like to say that I am very proud to be your friend. Thank you. 1996 marked Marc's first trip to Caracas, Venezuela. Herbalife.com was launched. Marc also visited Taiwan for the first time, and from there, headed to Brazil, where he learned something new.
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We did $1.2 billion. That was the big story of the '97 extravaganza, in addition to the introduction into the prestigious Serman Club. Carli and Henry were achieving the number one position. Lyon and Heroine, please come up. Everything has changed, which is so incredible. Last year, we made over $2.something million, which I don't think is bad. Herbalife opened its doors in Thailand and Chile, followed by something special for the younger generations. Vinnie Kits was introduced. Go ahead, Alex, use the blender. Okay, Dad.
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There is no doubt about it. Herbalife likes to go on tour and stay on tour. Amsterdam had the distinction of being the coldest and wettest event in Herbalife's history, with corporate schools. And this is where Marc used his best trainers on the road, offering an unparalleled support system and a lot of joy. A very successful Serman Club event featured special participation from Kareem Abdul-Jabbar and former President Gerald Ford, who added incentives at the end of the year and boosted sales to the highest summit, $1.5 billion. In 1998, the Serman Club grew to nine members with Kun and Khogai, and Marcus and Andrew, and Paul. At the same time, he made history, running neck and neck with the United States for the title of number one sales country. Just Mark Hughes made his most spectacular entrances at the extravaganzas in Orlando, Barcelona, and Mexico City, where he welcomed the brand-new member of the Chairman's Club, my boy, who was number one in the entire world in personal production with 366,585 volume points. And for achieving that, we are going to give him an additional ten thousand dollars.
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They are the first to receive a million dollars, and Susan Peterson.
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And Turkey, Indonesia, Botswana, Lesotho, Namibia, and Swaziland joined Herbalife. Russia was the first country in the world to receive Color cosmetics. And in November, Marc made his first presentation in front of 20,000 people. My first, incredible, unimaginable time in Russia. The Leadership Weekend featured the 11th member of the Chairman's Club, and one of the most incredible weight loss stories in the company's history. I thought I was 615 pounds. I have been taking these products for 19 months now. I just achieved it. So far, I have lost 402 pounds, and I feel incredible.
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And Herbalife's 20th anniversary was celebrated with the opening of the market in Jamaica, Iceland, India, and the Slovak Republic, giving the world 46 countries. $1,250,000 was awarded to Johnny and Susan Peterson for being number one for three consecutive years. We could never have expected this to happen to us, but we were adding up the bonus figures, without which, in the last four months, currently every three months, we are at a million dollars. The Chairman's Club grew with Tejo Kim Jung Woo, along with Stephen Covey, giving a special presentation. The first trips to South Korea and South Africa by Marc and members of his staff, and the launch of Color in Europe, America, and Mexico, took sales to a new peak. We have the most outstanding colors, and I wear them and love them because they were easy to apply, which is important to me as a mom. Marc brought Green and Beige to Europe, and the Gold Diet was launched in the United States. Here we have this incredible new program, and yet, the case is that Marc maintained the integrity of Herbalife's cellular nutrition. It's just beginning. From the passion of one man to the story of global success, Herbalife continues with Marc's dream as its guide. Let me tell you what we are going to do with a company called Herbalife. We are going to take this company, customer by customer, distributor by distributor, and we will take Herbalife around the world. That is what we are going to do.
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