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Introduction andFundamentals 2011 Herbalife International of America, Inc. All rights reserved. USA. MRK14844B-USEN 09/11
Introduction and FundamentalsPotential EarningsThe Herbalife Independent Distributor compensation plan, which we referto as Herbalife Marketing Plan, pays out up to 73% of product revenuesto Distributors!As an Herbalife Independent Distributor, you can become eligible toearn from six areas of potential income and incentives Retail Profit Wholesale Profit Royalty Overrides Monthly Production Bonus Annual Bonus (Mark Hughes Bonus) PromotionsIntroduction and Fundamentals1
Introduction and FundamentalsHerbalife Marketing PlanThe more volume you and your downline sell, the more opportunities you may have to increase your earning potential.DistributorQUALIFYINGSUPERVISOR50% DiscountQUALIFIEDPRODUCER42% DiscountSENIORCONSULTANT35% or d TeamGETMillionaire TeamPresident’s TeamRoyalty Overrides (RO)3 Ways to QualifyAchieve1,000 RO Pointsin 3 consecutive monthsAchieve4,000 RO Pointsin 3 consecutive monthsAchieve10,000 RO Pointsin 3 consecutive monthsEligible to Earn2% ProductionBonus onDownline VolumeEligible to Earn Upto 4% ProductionBonus onDownline VolumeYOU(SUPERVISOR)50% DiscountUp to edTrainingUp to 5%2nd-leveldownlineSUPERVISORUp to 5%3rd-leveldownlineSUPERVISOR2 Fully QualifiedSupervisorsachieving 2,500VP a month3 Fully QualifiedSupervisorsachieving 2,500VP a month5 Fully QualifiedSupervisorsachieving 2,500VP a monthWho each retainWho each retainWho each retain2 Fully QualifiedSupervisorsachieving 2,500VP a month3 Fully QualifiedSupervisorsachieving 2,500VP a month5 Fully QualifiedSupervisorsachieving 2,500VP a monthWho each retainWho each retainWho each retain2 Fully QualifiedSupervisorsachieving 2,500VP a month3 Fully QualifiedSupervisorsachieving 2,500VP a month5 Fully QualifiedSupervisorsachieving 2,500VP a monthVP VolumePointIntroduction and FundamentalsEligible to Earn Upto 7% ProductionBonus onDownline Volume2
Introduction and FundamentalsAchieving VolumeMove up the Marketing Plan by accumulating volume in two ways: PPV Personally Purchased VolumeVolume purchased by a Distributor directly from Herbalife DLV Downline VolumeVolume placed by your non-Supervisor downline Distributorsordering between 25% to 42% discountIntroduction and Fundamentals3
Introduction and FundamentalsTracking VolumePPV and DLV can betracked on MyHerbalife.comand BizWorksIntroduction and Fundamentals4
Introduction and FundamentalsRetail ProfitDISTRIBUTORAs a Distributor, you can earn Retail Profit bypurchasing products with your Distributor discount andselling them to customers at their full retail value. A Distributor can purchase 100 of product witha 25% discount and pay 75 The Distributor can sell that product at 100 full retail valueand earn 25 from the sale 25% discount potential 25 Retail ProfitNote: Be sure to consider your additional selling expenses when determiningyour retail price, including shipping costs and sales taxes!Introduction and Fundamentals5
Introduction and FundamentalsWholesale Profit As Distributors move up theMarketing Plan, their discountincreases. If they recruit andretain other Distributors, theycan potentially earn WholesaleProfit on orders by theirdownline Distributors. Wholesale Profit is based on thedifference between your higherlevel discount and your downlineDistributor’s lower level discount.FULLYQUALIFIEDSupervisor: 50%SUPERVISORQUALIFIEDPRODUCERDISTRIBUTORQualified Producer: 42%Distributor: 25% to 42% By moving up the Marketing Planand sponsoring and training newDistributors, you can earn between8% and 25% Wholesale Profit onwhatever they purchase and sell.Introduction and Fundamentals6
The Herbalife Independent Distributor compensation plan, which we refer to as Herbalife Marketing Plan, pays out up to 73% of product revenues to Distributors! As an Herbalife Independent Distributor, you can become eligible to earn from six areas of potential income and incentives Retail Profit Wholesale Profit Royalty Overrides
