Sales and Marke,ng Plan Part 1. November 2017

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1 Sales and Marke,ng Plan Part 1 November 2017

2 The Herbalife Sales & Marke,ng Plan The Herbalife Sales & Marke9ng Plan offers Independent Herbalife Distributors the opportunity to earn income and other rewards. As they document their Customer sales, Distributors can move up through the Sales & Marke9ng Plan to earn addi9onal income, vaca9ons and other rewards. There s self-directed upward mobility within our company!

3 SALES & MARKETING PLAN HIGHLIGHTS TAB TEAM (Top Achievers Business Team) This level and up **$237,247 *** $0 high 6 figures **$92,339 **$23,990 *** $0 - $234,218 *** $0 - $106,628 Posi:on Determines Income **$2,744 ***$0 - $75,026 Global Expansion Team (GET) Millionaire Team President s Team Chairman s Club Founder s Circle World Team Distributor - Supervisor 2016 income range $0 - $5,463 Supervisor Success Builder Senior Consultant Distributor Qualified Producer Ac9ve Supervisor* Ac9ve World Team* GET 2,500* Millionaire Team 7,500* *Ac9ve Supervisor, Ac9ve World Team, GET 2,500 and Millionaire Team 7,500 are recogni9on levels, not earnings levels in the Sales & Marke9ng Plan. See your Sponsor for more informa9on. For complete qualifica9on details, refer to your IBO Career Books. ** Incomes listed are the median income for the largest percentage of Distributors qualified to earn at that level in *** In 2016, the income ranges for distributors earning at this level of the marke9ng plan. 3

4 KEYS TO GROWING YOUR BUSINESS Ac,ve Distributor Promo,on ü Build a Strong Customer & Preferred Member Base 2 Night Getaway DISTRIBUTOR ACTION PLAN (DAP): Vaca,on! 5-7+ New Clients + 2 New Distributors Each Month ARract! Retain! Mentor! Loyal Customers, Chartered Preferred Members & Preferred Members Distributors we sponsor will follow the DAP, too! ü Build a Strong Distributor Base of Distributors that are immediately ready to: Build a Strong Customer & Preferred Member Base Build a Strong Distributor Base BONUS CASH GIFT CARD!

5 Distributor! 2 Terms to Know What is Earn Base? Earn Base is the value assigned to a product, in local currency, on which discounts and earnings are calculated. As a Distributor, you may purchase Herbalife products at a wholesale discount of 25% to 50% on Earn Base value. What is Documented Volume (DV)? Documented Volume (DV) is volume from ALL sales made to Customers and Preferred Members that is submiced via valid receipts to Herbalife. Documented Volume is used towards your qualifica,on to: ü Earn Commissions, Royalty Overrides & Bonuses (earning %), ü Achieve Higher Discounts ü Advance in the Marke9ng Plan ü Achieve promo9ons.

6 Interna,onal Business Pack (IBP) = Distributor 25% Receive 25% discount and poten9al Retail Profits from selling the products.* Opportunity to sponsor other Distributors. A Sponsor is a Distributor who brings another individual into Herbalife. $25 Retail Profit $25 Retail Profit Just 4 clients! $25 Retail Profit $25 Retail Profit > 400 PPV DV $100 Retail Profit * All sales must be Documented to Herbalife **ALL Distributors must complete the ini9al Required Distributor Training to be able to earn and sponsor.

7 STEPS TO BE ELIGIBLE TO EARN* STEP 1: Qualify to Earn by Documen9ng Your Sales = Documented Volume (DV) STEP 2: AFTER you have Qualified to Earn, THEN you are Eligible to Earn: Retail Profits, Wholesale Profits, Royalty Overrides, Produc9on Bonuses, Vaca9ons, Other Compensa9on AND Move up the Marke9ng Plan.* * ALL Distributors must complete the ini9al Required Distributor Training to be able to earn and sponsor. Eligibility is also based on you reaching the corresponding qualifica9ons for each earning s area.

8 Ways to Document Volume to Qualify to Earn Yours and Your Downline s Documented Volume from: 1. Profitable retail sales supported by a valid submiced receipt 2. Charter Preferred Members and Preferred Members purchases from Herbalife at 25%, 35%, and 42% 3. Purchases made outside the US Note: Foreign transac6ons will be reviewed for their validity NOTE: Product purchases for: Personal Consump9on; providing Samples anywhere; Charitable Contribu9ons; and Gijs to Anyone including Sports Teams, Family, etc. are not Profitable Retail Sales and therefore will NOT contribute to Documented Volume.

9 Ways to Document Volume to Qualify to Earn Valid Sales Receipt Components Is submired to Herbalife automa9cally or manually Is a profitable retail sale including cost of product, tax and freight. Contains the Customer s first and last name Contains 2 of the following 3 items: Customer s Address Customer s Phone Customer s Paper Receipt must also have: Date Signature

10 Go to MyHerbalife.com Use the Tools - Click on "My Office - Click on "My Volume - Click on "Bizworks - Click on "Linear View PLUS - Click, Click, Use, Use

11 Poten,al to Earn 25% to 50% Retail Profit off the Earn Base from your Customer Receipts 1. New, Repeat, and Loyal Customers IMMEDIATELY DOCUMENT your sales to your Customers 1. Have customers order on your GoHerbalife.com website. 2. Choose the Customer Direct op9on when you are placing your customers orders through MyHerbalife.com website. 3. Create and Manage Receipts in the Customer area on MyHerbalife.com. 4. Use the Point of Sale (POS) App to Create a New Sale or Document a Previous Sale. 5. Send in paper copies of your customer receipts with the required informa9on. Note: When determining your final retail price, consider shipping costs, sales taxes and addi9onal selling expenses, if any.

12 Earn 7% to 25% Wholesale Profit There is NOT a Documented Volume requirement to Qualify to Earn You need to be at a HIGHER discount than your downline How you earn wholesale profit from your downline s documented volume is explained in detail in the Qualify to Earn and What You Earn On PPT trainings on myherbalife.com. $25 Wholesale Profit 50% $15 Wholesale Profit 100DV = $35 Retail Profit 50% 35% $8 Wholesale Profit 100DV = $42 Retail Profit 50% 42% 17% $17 Wholesale Profit 50% 42% 35% 8% 7% 10% $8 Wholesale Profit $7 Wholesale Profit $10 Wholesale Profit 100DV = $25 Retail Profit 25% 25% 100DV = $25 Retail Profit

13 Senior Consultant - 35% Qualifica,on: Achieve 500VP Documented Volume (DV) in 1-2 months (Up to 500VP may be from your Downline s Documented Volume) Eligible Benefits: Buy products at a 35% discount off the Earn Base. Ø Receive a discount Rebate on all purchases the month you qualify Earn Retail Profits on sales to customers (40% Increase in Retail Profit!) Earn Wholesale Profits on orders placed by your downline at a lower discount All orders must be purchased directly through Herbalife Ex DV + 0DV + 0DV = 500DV $175RP + $0WP + $0WP = $175 Ex DV + 100DV + 300DV = 500DV $35RP + $10WP + $30WP = $75 Ex 3. 0DV + 0DV + 500DV = 500DV $0 Ex DV + 200DV + 300DV = 1000DV $175RP + $20WP + $30WP = $225

14 Success Builder - 42% During Qualifica,on Month Qualifica,on: Personally achieve 1,000VP of Documented Volume in 1 month Shake Party! $420 Eligible Benefits: Receive a 42% discount on orders the remainder of the month you qualify* Receive a discount Rebate on all purchases made the month you qualify (turn $250 into $420!) Earn Retail Profits on sales to customers (68% Increase in Retail Profit!) All orders must be purchased directly through Herbalife * Discounts will revert to 35% the next month un9l a higher discount qualifica9on is achieved

15 Qualified Producer - 42% Qualifica,on: Achieve 2,500VP of Documented Volume in 1-6 months (No limit on use of Downline s Documented Volume!) Eligible Benefits: Receive a 42% discount on orders Ø Eligible to receive a discount Rebate on all purchases made the month you qualify Earn Retail Profits on sales to customers Earn Wholesale Profits on orders placed by your downline at a lower discount All orders must be purchased directly through Herbalife

16 ATTRACT 5-7 NEW Customers, Retain Exis,ng: PPV x and Mentor 2 Distributors to ATTRACT 5-7 Customers Min 1,500 + VP from personal sales + 1,000 + VP DLV from customer sales

17 Supervisor - 50% Qualifica,ons: Achieve 4,000VP of Documented Volume in 1 month* OR Achieve 4,000VP of Documented Volume within 2 consecu9ve months* OR Achieve 4,000VP of Documented Volume within 3-12 months* (No limit on use of Downline s Documented Volume!) OR Achieve 5,000VP of Documented Volume within 1-2 months with 2 distributors and BOTH achieve the Supervisor status* All orders must be purchased directly through Herbalife * Refer to Career Book in IBO for more details

18 Building A Sustainable Business PPV x 3 (+DLV) 5,000+VP = Supervisor = 50% PROFIT

19 SUPERVISOR: My Retail/Wholesale House Distributor Ac,on Plan Set a goal of: Achieving 4,000 + DV sold, documented and consumed every month!

20 Eligible Benefits of Supervisor and Above Retail + Wholesale = 4000DV Monthly Royalty Overrides Example $320-$2000 RW 7% 25% Wholesale Profit Up to 50% Retail Profit 1% 5% Royalty Overrides Potential Income Sources* 2% 7% Production Bonus Promotions YOU Up to 5% Up to 5% Up to 5% Supervisor Level 1 Mary Supervisor Level 2 John Supervisor Level 3 Lisa 4000DV $ DV $ DV $250 $750 RO Punta Cana, DR Vacation Promotions Annual Mark Hughes Bonus Earnings payouts are based on Earn Base Values $1070-$2750/mo 1%

21 Earn Royalty Overrides and Produc,on Bonuses from: 1. Supervisors in your first 3 ac9ve levels, including roll-ups 2. Pla9num (50%) Chartered Preferred Members Royalty Points for Rewards and Earnings Qualifica9ons are calculated based upon the Documented Volume por9on of organiza9on volume each month How you Earn is explained in detail in the Qualify to Earn and What You Earn On PPT trainings on myherbalife.com.

22 My Retail/Wholesale House Ac,ve Supervisor Qualifica,on: Achieve 2,500VP Documented Volume (DV) in 3 consecu9ve months Qualifiers Receive: Ac9ve Supervisor pin Cer9ficate of Achievement Set goal* of: Achieving 4,000 + DV sold, documented and consumed every month! PLUS Stone-Pin Qualifica,on 3, 5, 7 or 10 Fully Qualified Supervisors in your first line also achieve 2,500vp DV in the same 3 consecu9ve months. Stone-Pin Qualifiers Receive: Corresponding 3-, 5-, 7- or 10-stone pin Cer9ficate of Achievement Note: Active Supervisor is a recognition level, not an earnings level in the Sales & Marketing Plan. See your Sponsor for more information. *A Supervisor will only be recognized the first time they complete the qualifications.

23 Go for Your Goals DECIDE where YOU want to be. DESIGN your plan to get there. WORK YOUR PLAN. Your success is only limited by your own imagination and your hard work. MARK HUGHES ( )! Herbalife Founder and First Member!

24 Sales and Marke,ng Plan Part 2 November 2017

25 The Herbalife Sales & Marke,ng Plan The Herbalife Sales & Marke9ng Plan offers Independent Herbalife Distributors the opportunity to earn income and other rewards. As they document their Customer sales, Distributors can move up through the Sales & Marke9ng Plan to earn addi9onal income, vaca9ons and other rewards. There s self-directed upward mobility within our company!

26 SALES & MARKETING PLAN HIGHLIGHTS TAB TEAM (Top Achievers Business Team) This level and up **$237,247 *** $0 high 6 figures **$92,339 **$23,990 *** $0 - $234,218 *** $0 - $106,628 Posi:on Determines Income **$2,744 ***$0 - $75,026 Global Expansion Team (GET) Millionaire Team President s Team Chairman s Club Founder s Circle World Team Distributor - Supervisor 2016 income range $0 - $5,463 Supervisor Success Builder Senior Consultant Distributor Qualified Producer Ac9ve Supervisor* Ac9ve World Team* GET 2,500* Millionaire Team 7,500* *Ac9ve Supervisor, Ac9ve World Team, GET 2,500 and Millionaire Team 7,500 are recogni9on levels, not earnings levels in the Sales & Marke9ng Plan. See your Sponsor for more informa9on. For complete qualifica9on details, refer to your IBO Career Books. ** Incomes listed are the median income for the largest percentage of Distributors qualified to earn at that level in *** In 2016, the income ranges for distributors earning at this level of the marke9ng plan. 2 6

27 World Team Qualifica,ons: Achieve 2,500VP* DV each month for 4 consecu9ve months as a Fully Qualified or Qualifying Supervisor OR Achieve 10,000VP* DV in 1 month ajer becoming a Fully Qualified or Qualifying Supervisor OR Achieve 500 Royalty Points* in 1 month * All VP and RO must be documented Eligible Benefits All the benefits of a Supervisor. Acend special planning and training sessions targeted to accelerate your progress to TAB Team.

28 Ac,ve World Team Qualifica,ons: Achieve all 3 qualifica9ons below in any 6 consecu9ve months: 2,500VP DV in each of 4 consecu9ve months AND 5,000VP DV in 1 month AND 500 Royalty Points* in 1 month Eligible Benefits Be able to acend higher level leadership trainings. First-Time (non-tab) Qualifiers Receive: An exclusive Herbalife Ac9ve World Team pin and Cer9ficate of Achievement A $500 Special Bonus (non-tab) Requalifying* Ac,ve World Team Distributors Receive: Yearly Ac9ve World Team pin (non-tab or TAB) and Cer9ficate of Achievement * All VP and RO must be documented Note: Active World Team is a recognition level, not an earnings level in the Sales & Marketing Plan. See your Sponsor for more information.

29 Global Expansion Team Qualifica,on: Achieve 1,000 Royalty Points* each month for 3 consecu9ve months RO = $1000 PB = $400 RO = $2500 PB = $1000 Eligible Benefits: Earn up to 2% monthly TAB Team Produc9on Bonus on your downline organiza9on s volume by achieving 1,000 Royalty Points* and 3,500VP* DV each month May qualify for company training event promo9ons Par9cipate in special advanced trainings Par9cipate on special conference calls GET Get 2.5K 8 R/W Houses w/ avg 2500DV/mo 20 R/W Houses w/ avg 2500DV/mo * All VP and RO must be documented GET 2,500: Achieve 2,500 Royalty Points* each month for 3 consecu9ve months. Note: GET 2,500 is a recognition level, not an earnings level in the Sales & Marketing Plan. See your Sponsor for more information.

30 Millionaire Team Qualifica,on: Achieve 4,000 Royalty Points* each month for 3 consecu9ve months Eligible Benefits: Earn up to 4% monthly TAB Team Produc9on Bonus, ajer a 2-month wai9ng period, on your downline organiza9on s volume by achieving 4,000 Royalty Points* and 3,000VP* DV each month Be eligible to qualify for company training event promo9ons Be eligible to par9cipate in special advanced trainings Par9cipate on special conference calls Mill Mill 7.5K 32 R/W Houses w/ avg 2500DV/mo 60 R/W Houses w/ avg 2500DV/mo * All VP and RO must be documented RO = $4000 PB = $3200 RO = $7500 PB = $6000 MILLIONAIRE TEAM 7,500: Achieve 7,500 Royalty Points each month for 3 consecu9ve months. Note: Millionaire Team 7,500 is a recogni9on level, not an earnings level in the Sales & Marke9ng Plan. See your Sponsor for more informa9on.

31 President s Team Qualifica,on: Achieve 10,000 Royalty Points in 3 consecu9ve months. Ajer a wai9ng period of 3 months, earn up to 6% Produc9on Bonus. Eligible Benefits: Earn TAB Team Produc9on Bonuses based on your qualifica9on level Qualify for special President s Team vaca9on and training event promo9ons Par9cipate in special conference calls and advanced trainings Presidents Team 80 R/W Houses w/ avg 2500DV/mo 20K President s Team: Achieve 20,000 Royalty Points in 3 consecu9ve months. Ajer a wai9ng period of 3 months, earn up to 6.5% Produc9on Bonus. 30K President s Team: Achieve 30,000 Royalty Points in 3 consecu9ve months. Ajer a wai9ng period of 3 months, earn up to 6.75% Produc9on Bonus. 50K President s Team: Achieve 50,000 Royalty Points in 3 consecu9ve months. Ajer a wai9ng period of 3 months, earn up to 7% Produc9on Bonus. RO = $10,000 PB = $12,000 20K Presidents Team 160 R/W Houses w/ avg 2500DV/mo 30K Presidents Team 240 R/W Houses w/ avg 2500DV/mo 50K Presidents Team 400 R/W Houses w/ avg 2500DV/mo

32 Chairman s Club Qualifica,on: 5 Fully Qualified President s Team Distributors in 5 or more separate lines of your downline organiza9on Eligible Benefits: All the benefits of a President s Team member. Qualify for special Chairman s Club vaca9on and training event promo9ons. Par9cipate in special conference calls and advanced trainings As a leader, assist with worldwide trainings.

33 Founder s Circle Qualifica,on: 10 Fully Qualified President s Team Distributors in 10 or more separate lines of your downline organiza9on Eligible Benefits: All the benefits of a Chairman s Club member Be eligible to qualify for special Founder s Circle vaca9on and training event promo9ons Par9cipate in special conference calls and advanced trainings As a leader, assist with worldwide trainings

34 Mark Hughes Bonus Herbalife sets aside up to 1% of total worldwide company product/aop Earn Base sales to be paid as a Mark Hughes Bonus Award to eligible President s Team Distributors. The award is distributed annually among eligible President s Team Distributors in recogni9on of outstanding performance in advancing sales of Herbalife products. The qualifica9on period is 12 months, beginning in January and ending in December of the same year. Note: Please refer to the Mark Hughes Bonus Award qualifica9ons and rules document for full informa9on.

35 Go for Your Goals DECIDE where YOU want to be. DESIGN your plan to get there. WORK YOUR PLAN. Your success is only limited by your own imagination and your hard work. MARK HUGHES ( )! Herbalife Founder and First Member!

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