Introduction

Herbalife Sales and Marketing Plan offers you unique opportunities which can lead to various levels of success; the plan was developed by Herbalife’s founder, Mark Hughes. The result is arguably the best Sales & Marketing Plan in the industry.

Herbalife’s Sales and Marketing Plan pays a high percentage of product revenues to Distributors in the form of Retail and Wholesale Profits, Royalty and bonus income and incentives. This tested, proven business plan is designed to maximize rewards for effort and provide substantial and ongoing income.

The Herbalife business opportunity and the Sales & Marketing Plan are identical for every Distributor. Each Distributor’s success is dependent on two primary factors:

• The time, effort and commitment put into the Herbalife business and
• The product sales made by a Distributor and their downline organization.

These two factors raise the importance of a Distributor’s responsibility to train, support and motivate their downline organization.

The following pages describe the different levels of Herbalife’s Sales & Marketing Plan. Each level has specific qualifications and associated benefits to reward Distributors for their efforts and enhance their success.

Table of Contents

1. Sales & Marketing Plan
2. Steps to Success
3. President’s Team Plus Awards and Recognition
4. Achievement Awards and Anniversary Pins
5. Understanding Volume
6. Distributor Benefits
7. Royalty Override Income
8. President’s Team Plus
9. TAB Team Production Bonus Payout Guidelines
10. Glossary of Terms
11. Ordering Procedures

Becoming a Herbalife Distributor – The Important First Step

The only required purchase in order to become an Herbalife Distributor is the International Business Pack (IBP). Each IBP contain the Herbalife Distributorship Application and Agreement, which you must complete and submit in order to receive an Herbalife Identification Number and purchase products.

Registration

You officially become an Herbalife Independent Distributor when your properly completed Application has been processed and accepted by the Herbalife Corporate Office. The quickest and easiest method of completing your registration is online at www.MyHerbalife.com.

You may also mail your Application; however, this process might take a few days. Once your Application has been accepted, your contract with Herbalife becomes effective immediately, giving you all the rights, responsibilities and privileges of an Herbalife Independent Distributor.

Income Opportunities

The Herbalife Sales & Marketing Plan provides many opportunities to earn income and other rewards.

Immediate Retail Profit

25% to 50%
The profit from direct sales to customers.

Wholesale Profit (also known as Commissions)

Up to 25% of Earn Base value. The difference between what you pay for products and what Distributors in your personal organization pay for products.

Monthly Royalty Override Income

As a Supervisor, you can earn up to 5% on the Earn Base value of the sales from your three active levels of dowline Supervisors.

Monthly Production Bonus

TAB Team can earn an extra 2% to 7% Production Bonus.

Mark Hughes Bonus

A bonus that eligible President Team members and above may qualify to earn in recognition of outstanding performance.

Understanding Volume

Throughout this manual, we use the term volume extensively. Volume is a key element in the Sales & Marketing Plan and is the basis for qualifying and working your way to higher levels.

Each Herbalife® product has a Volume Point value assigned to it that is equal in all countries (see order forms and price lists for exact information). Official International Business Packs (IBP), literature items and sales tools do not count as volume. As you order products, you accumulate Volume Points that are applicable to the products ordered. These accumulated Volume Points become your sales production and are used for purposes of qualifications and benefits.

Volume is assigned to you in various ways depending on who purchased the product, their status and discount, your own status and other factors of the Herbalife Sales & Marketing Plan. Volume is calculated on the accumulated Volume Point value of products ordered in a Volume Month.