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“With self-disciplinemost anything ispossible.”Theodore Roosevelt26th Presidentof the United StatesSALES & MARKETING PLAN. . 3U.S. AND PUERTO RICO SUPPLEMENTAL RULES OF CONDUCT:ORDERING PROCEDURES. . . 29CERTAIN WAYS OF DOING THE BUSINESS. . 109SAMPLE FORMS. 43ENFORCEMENT PROCEDURES. . 140U.S. AND PUERTO RICO RULES OF CONDUCT . . . 71PRIVACY AND DATA PROTECTION. . . 142Sales &Marketing Planand Business Rules
SALES & MARKETING PLANOverviewHerbalife’s Sales & Marketing Plan offers you uniqueopportunities which can lead to higher levels of success andto great achievement. The plan was developed by Herbalife’sfirst Distributor and founder, Mark Hughes. The result isarguably the best Sales & Marketing Plan in the industry.Herbalife’s Sales & Marketing Plan pays a high percentageof product revenues to Members and Distributors in the formof Retail and Wholesale Profits, Royalty and bonus incomeand incentives. This tested, proven business plan is designedto maximize rewards for effort and provide substantial andongoing income.The Herbalife business opportunity and the Sales & MarketingPlan are identical for every Herbalife Member. Each Member’ssuccess is dependent on two primary factors: The time, effort and commitment put into the Herbalifebusiness and The product sales made by a Member and their downlineorganization.Income OpportunitiesThe Herbalife Sales & Marketing Plan provides manyopportunities to earn income and other rewards.Immediate Retail Profit25% to 50%The profit from direct sales to customers.Daily Wholesale ProfitUp to 25% of earn baseThe difference between what you pay for products and whatMembers in your personal organization pay for products.Monthly Royalty Override IncomeUp to 5% on the sales of all your SupervisorsAs a Supervisor, you earn up to 5% on the earn base value ofall of your Supervisors, three active levels of downline.Monthly Production BonusesTAB Team members can earn an extra 2% to 7%Organizational Production Bonus.These two factors raise the importance of a Member’sresponsibility to train, support and motivate their downlineAnnual Bonusesorganization.A bonus to Top Achievers in recognition of outstandingThe following pages describe the different levels of Herbalife’sSales & Marketing Plan. Each level has specific qualificationsand associated benefits to reward Members for their effortsand enhance their success.Becoming a Member – The Important First StepThe only required purchase in order to become an HerbalifeMember is the Mini Herbalife Member Pack (Mini HMP), orperformance.Qualify for Special Vacations and Training EventsMembers who qualif y are rewarded for consistentperformance and efforts in building their business.Plus other special promotions and bonusesthroughout the year.at your election, an Herbalife Member Pack (HMP). The MiniHMP (as well as the larger version) contains the HerbalifeMembership Application and Agreement, which you mustcomplete and submit in order to receive an HerbalifeIdentification Number and purchase products.RegistrationYou officially become an Herbalife Member when yourproperly completed Application has been processed andaccepted by the Herbalife World Operations Home Office.This process takes only a few days, but in the meantime, youare entitled to purchase Herbalife products from or throughthe Herbalife Sales Order Department, your Sponsor or firstupline Fully Qualified Supervisor at the applicable discount.Once your Application has been accepted, your contract withHerbalife becomes effective immediately, giving you all therights, responsibilities and privileges of an Herbalife Member.3
50K President’s Team50,000 Royalty Override Pointsin 3 consecutive months40K President’s TeamHerbalife-brandedMovado Watches†40,000 Royalty Override Pointsin 3 consecutive months4,000 Royalty Override Pointsin 3 consecutive months1,000 Royalty Override Pointsin 3 consecutive months70,000 Royalty Override Pointsin 3 consecutive monthsWhite Gold andDiamond Signet Rings70K President’s Team80,000 Royalty Override Pointsin 3 consecutive monthsWhite Gold andDiamond Ring and Earrings80K President’s Team20,000 Royalty Override Pointsin 3 consecutive monthsGold and DiamondCufflinks and Earrings15,000 Royalty Override Pointsin 3 consecutive months20K President’s Team4,000 Volume Points (VP) in 1 monthor 2,500 in each of 2 consecutivemonths (with a minimum of 1,000of those VP unencumbered eachmonth), or 5,000 accumulatedVP within 12 months, with aminimum of 3 months requiredSupervisor15K President’s Team2,500 accumulated Volume Pointsin 1 to 3 months, all orders must bepurchased directly through Herbalife*Qualified Producer90,000 Royalty Override Pointsin 3 consecutive monthsPiaget Herbalife-brandedDiamond Watch† and WhiteGold Diamond Logo Bracelet90K President’s Team30,000 Royalty Override Pointsin 3 consecutive months30K President’s Team2,500 Volume Points (VP) in each of4 consecutive months or 10,000 VPat 50% in 1 month or 500 RoyaltyOverride Points in 1 monthWorld Team*It is not necessary to become a Senior Consultant, Success Builder or Qualified Producer before qualifying as Supervisor. For complete qualification details, refer to your HMP.†Actual watch model may vary based on availability at time of qualification.60,000 Royalty Override Pointsin 3 consecutive monthsWhite Gold and DiamondNecklace and Cufflinks60K President’s Team10,000 Royalty Override Pointsin 3 consecutive monthsPresident’s Team1,000 Personally Purchased VolumePoints or more in one order*500 Volume Points or moreaccumulated in 1 month*Millionaire TeamSuccess BuilderSenior ConsultantGlobal Expansion TeamMemberSTEPS TO SUCCESS
3 first line, Fully Qualified President’sTeam members* in 3 separate linesof your downline organization2 first line, Fully Qualified President’sTeam members* in 2 separate linesof your downline organization†1,000,000 Royalty OverridePoints in 12 consecutivemonths (calendar year)Piaget Diamond Watches†*For complete qualification details, refer to your HMP.Actual watch model may vary based on availability at time of qualification.750,000 Royalty OverridePoints in 12 consecutivemonths (calendar year)Piaget Gold andDiamond Watches†10 first line, Fully QualifiedPresident’s Team members*in 10 separate lines of yourdownline organizationFounder’s Circle10 Diamond5 first line, Fully Qualified President’sTeam members* in 5 separate linesof your downline organizationChairman’s Club5 Diamond9 first line, Fully Qualified President’sTeam members* in 9 separate linesof your downline organizationChairman’s Club500,000 Royalty OverridePoints in 12 consecutivemonths (calendar year)8 first line, Fully Qualified President’sTeam members* in 8 separate linesof your downline organizationChairman’s Club250,000 Royalty OverridePoints in 12 consecutivemonths (calendar year)7 first line, Fully Qualified President’sTeam members* in 7 separate linesof your downline organization6 first line, Fully Qualified President’sTeam members* in 6 separate linesof your downline organizationGold and DiamondMarquis RingsChairman’s ClubChairman’s Club9 Diamond4 first line, Fully Qualified President’sTeam members* in 4 separate linesof your downline organizationChief ExecutivePresident’s Team4 DiamondBaume & MercierWatches†7 Diamond6 Diamond8 DiamondInternational ExecutivePresident’s TeamSenior ExecutivePresident’s Team1 first line, Fully QualifiedPresident’s Team member* inany line of your organizationExecutive President’s Team3 Diamond2 Diamond1 DiamondPRESIDENT’S TEAM PLUS AWARDS AND RECOGNITION
20-year anniversary packagesare awarded to Members inrecognition of their contributionsand longevity with Herbalife15-year anniversary packagesare awarded to Members inrecognition of their contributionsand longevity with Herbalife25-year anniversary packagesare awarded to Members inrecognition of their contributionsand longevity with Herbalife*For complete qualification details, refer to your HMP.30-year anniversary packagesare awarded to Members inrecognition of their contributionsand longevity with Herbalife30-Year Anniversary10-year anniversary packagesare awarded to Members inrecognition of their contributionsand longevity with Herbalife10-Year Anniversary25-Year Anniversary7-year anniversary packagesare awarded to Members inrecognition of their contributionsand longevity with Herbalife20-Year Anniversary5-year anniversary packagesare awarded to Members inrecognition of their contributionsand longevity with Herbalife15-Year Anniversary3-year anniversary packagesare awarded to Members inrecognition of their contributionsand longevity with Herbalife7-Year AnniversaryLifetime Achievement Awards aregiven to Distributors who haveachieved 4 million Volume Points ormore during their Herbalife career*4 Million Volume Points4 Million LifetimeAchievement Award5-Year AnniversaryLifetime Achievement Awards aregiven to Distributors who haveachieved 3 million Volume Points ormore during their Herbalife career*3 Million Volume Points1-year anniversary packagesare awarded to Members inrecognition of their contributionsand longevity with HerbalifeLifetime Achievement Awards aregiven to Distributors who haveachieved 2 million Volume Points ormore during their Herbalife career*Lifetime Achievement Awards aregiven to Distributors who haveachieved 1 million Volume Points ormore during their Herbalife career*3-Year Anniversary2 Million Volume Points1 Million Volume Points3 Million LifetimeAchievement Award1-Year Anniversary2 Million LifetimeAchievement Award1 Million LifetimeAchievement AwardACHIEVEMENT AWARDS AND ANNIVERSARY PINS
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UNDERSTANDING VOLUMEThroughout this manual, we use the term volume extensively.3. Full payment must be received by Herbalife no later than theVolume is a key element in the Sales & Marketing Plan and is5th day of the following month. If the 5th of the month fallsthe basis for qualifying and working your way to higher levels.on a Sunday or a holiday, then the payment must be receivedEach Herbalife product has a Volume Point value assignedby the 4th of the following month.to it that is equal in all countries (see order forms and priceIf for any reason, a payment is not approved for acceptance,lists for exact information). Official Herbalife Member Packssuch as with a credit card, personal check or APS, then the(HMPs), literature items and sales tools do not count asorder will be canceled and the Volume will not be appliedvolume. As you order products, you accumulate credit for theunless another order was placed and paid within the timeamount of Volume Points that are applicable to the productsperiods indicated.ordered. These accumulated Volume Points become your salesproduction and are used for purposes of qualifications andbenefits.There are a number of ways volume is credited in theHerbalife Sales & Marketing Plan. The following definitionsand examples illustrate these:Volume is credited to you in various ways depending on whopurchased the volume, their status and discount, your ownPersonally Purchased Volumestatus and other factors of the Herbalife Sales & MarketingPersonally Purchased Volume is the volume on ordersPlan. Volume is calculated on the accumulated Volume Pointpurchased directly from Herbalife using your Herbalifevalue of products ordered in a Volume Month.Identification Number.Explanation of Sales Volume MonthDownline VolumeDefinition of Volume MonthAs a non-Supervisor, Downline Volume is based on volumeSales Volume is credited to and accumulated by a Supervisorwhich is placed by your downline directly from Herbalifeon a Volume Month basis. The Volume Month begins on theordering between 25% to 42% discount.first business day of the month and ends on the last businessday of the month. If the last day is Sunday, the Volume MonthDownline Volume Examplewill be extended to Monday. Likewise, if the last day of themonth is considered a holiday, the month may be extendedPurchases/Discount %DownlineVolume2,500 Volume Points @ 50% Discount*to the first business day after the holiday. Herbalife reservesthe right to modify the Volume Month as it deems appropriate.ASupervisorDetermination of Volume MonthSales Volume is credited to the Volume Month in which theorder is both placed and full payment is received by Herbalife,except for orders that meet the rules and conditions that applyto Add-On Sales Volume.B500 Volume Points@ 35% Discount 900 Volume Points(C & D’s Volume)SeniorConsultantC500 Volume Points@ 35% Discount 400 Volume Points(D’s Volume)DMember400 Volume Points @25% Discount 0SeniorConsultantUnder no circumstances can volume be placed for a priororder month, with the exception of a Matching Volume order.Add-On Sales VolumeAll of the following conditions must be met for an order to beaccepted as Add-On Sales volume:1. Order must be placed no later than the designated lastorder day of a Volume Month, plusas Personal Volume or Group Volume.Personal Volume2. Full payment must be made, or initiated, by the sameAs a Fully Qualified Supervisor, Personal Volume is the volumelast order day of the month. If payment is mailed, thenpurchased using your Herbalife Identification Number, as wellthe postmark must be stamped the designated last day.as the volume purchased by your non-Supervisor downline,If the payment is a wire transfer, direct deposit or otherdown to your first Fully Qualified Supervisor.bank transaction, a receipt must be supplied to verify thetransaction date was on, or prior to, the last designated order8*For Fully Qualified Supervisors, Downline Volume is creditedday of the month, plusNon-Supervisor Members may purchase directly fromHerbalife, from their Sponsor or their firs
the Herbalife Sales Order Department, your Sponsor or first upline Fully Qualified Supervisor at the applicable discount. Once your Application has been accepted, your contract with Herbalife becomes effective immediately, giving you all the rights, responsibilities and privileges of an Herbalife Member. Income Opportunities
