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Marketing Plan & Recognition 1 Founder’s Circle Chairman’s Club MARKETING PLAN President 50K President 30K President 20K President’s Team Millionaire Team Global Expansion Team + Bonus World Team 50% Supervisor Qualified Producer Success Builder Senior Consultant Distributor 42% 42% 35% 25% 2 1 1 1 1 1 1 1 1 Ways of Earning PROFIT ON RETAIL PROFIT ON WHOLESALE 25% to 50% Up to 25% ROYALTIES BONUS Up to 5% on 3 levels of your Organisation 2 to 7% bonus on the Organisational production 3 Marketing Plan Important concepts: • What are “Volume Points”? – Volume Points (VP) are universal “currency” adopted by our company to indicate a consistent value of the products in different countries around the world. – The more VPs you accumulate during a month, the higher your discount, resulting in higher retail profits when selling products to the customer. Example: 1 F1 Shake = 23,95 volume points 4 Volume Points • Distributors purchase products at 25-50% discount depending on the VP accumulated in the given month and their status in the company. The price list provides information on VP, prices and discounts for all products. • Accumulation of Volume Points (your group’s and your own) will enable you to move up the Marketing Plan. 5 Marketing Plan Distributor to Supervisor Supervisor Qualified Producer Success Builder 4000 VP in 1 month (or 2500 x 2) 5000 VP in 3-12 months 50% 2500 VP in 3 months 42% 1000 VP Senior Consultant 42% 500 VP 35% Distributor 25% 6 Senior Consultant • Senior Consultants can achieve a 35% retail profit in 2 ways: 1. Accumulate 500 VP during the month, 35% discount will apply on the order that brings the Distributor to or above the 500 VP threshold, OR 1. Purchase a 500 Volume Point order at 35% discount • Once you have qualified to become a Senior Consultant, all orders will be placed at 35% discount until you become eligible for a higher discount 7 NEW Senior Consultants – VIP Distributors Welcome up on stage 8 Success Builder • All Distributors and Senior Consultants have an opportunity to place a single order of 1,000 Volume Points purchased at 42% discount – This qualifies them to become a Success Builder • Benefits: – Receive 42% discount on your Success Builder order – Receive 42% discount on additional orders purchased during the same Volume Month 9 NEW Success Builders Welcome up on stage 10 Qualified Producer • All Distributors or Senior Consultants have the choice to qualify as a Qualified Producer (QP) by achieving 2,500 Volume Points in sales within 1 to 3 Volume Months of which 1,500 must be personally purchased from Herbalife (PPV). • Benefits: – Achieve Qualified Producer level and 42% discount beginning 1st of the month following qualification* – Opportunity to receive split commissions from Herbalife, ranging from 7% to 17% on downline purchases – Personally Purchased Volume (PPV) is also counted towards accumulated 5K Supervisor qualification – Use up to 1,000 DLV toward the accumulation of 2,500 Volume Points within one to three consecutive months *Annual requalification required 11 NEW Qualified Producers Welcome up on stage 12 The Next Step, Supervisor! 13 Supervisor Benefits Three basic levels of income: • 50% Retail Profit • 8 - 25% Wholesale Profit • Up to 5% Royalty Overrides Plus eligibility for: • Special Trainings • Promotions • Bonuses & Holidays 14 What is Royalty-Income? Supervisors are the orange circles (SP) – Distributors are Dark Green (DS) Personal Customers SP YOU SP DS DS SP SP YOU SP DS SP 1st level (5%) SP 2nd Level (5%) SP 3rd Level (5%) SP DS DS SP DS DS Example for illustrative purposes only DS DS DS Royalty Income depends on your total volume and the activities of your supervisors in the first 3 levels 15 How to Qualify Supervisor 1. One-month qualification: achieve 4,000 Volume Points in one Volume Month 2. Two-month qualification: achieve 2,500 Volume Points in each of two consecutive months 3. 5K Accumulated Qualification: Accumulate 5,000 Volume Points within 12 Volume Months of which 4,000 must be Personally Purchased Volume (PPV) – Minimum of 3 months is required for this qualification 16 5K Accumulated Supervisor Qualification Using this method, you may use up to 1,000 DLV toward the accumulation of 5,000 Volume Points within three to 12 consecutive Volume months Month Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012 Sep 2012 Oct 2012 Nov 2012 Dec 2012 PPV 400 450 0 550 500 500 0 300 800 500 150 350 DLV 0 0 0 0 0 100 100 125 125 150 200 200 4,000 PPV + DLV = 5,000 5K Supervisor qualification as of January 1st, 2013 17 Buddy System – Line Qualification 3 Buddies 2 Buddies YOU 1,000 VP Distributor A 4,000 VP Total 5,000 VP YOU 1,000 VP OR Distributor A 1,000 VP Distributor B 4,000 VP Total 6,000 VP 18 Distributor Orders YOU 1,000 VP A 500 VP B 500 VP C 1,000 VP D 500 VP E 500 VP Total 4,000 VP 19 NEW Supervisors Welcome up on stage 20 World Team 3 ways To Qualify: •2,500 TV 4 months in a row OR •10,000 TV in one month OR •500 "Royalty" points in one month 21 Active World Team Achieve the following 3 qualification in any consecutive six month period • 2,500 Total Volume Points in each of four consecutive months AND • 10,000 Total Volume Points in one month AND • 500 Royalty Points in one month (500 R/O = 10,000VP from your Supervisor, three lines down) Rewards • Qualifiers receive an exclusive Herbalife Active World Team pin and certificate • First-time Bonus qualifiers receive US$500, plus recognition onstage at the next event 22 Global Expansion Team How to qualify: • Achieve 1,000 Royalty points in 3 consecutive Months Benefits • Earn 2% production bonus on downline • Qualify for vacations and training events (1,000 R/O = 20,000 VP from your Supervisor, three lines down) 23 Millionaire Team How to qualify • Achieve 4,000 Royalty points 3 in consecutive Months Benefits • Earn 2-4% Production Bonus on downline • Qualify for vacations and training events (4,000 R/O = 80,000VP from your Supervisor, three lines down) 24 President’s Team How to qualify • Achieve 10,000 Royalty points 3 in consecutive Months • Earn 2-6% Production Bonus on downline • Qualify for vacations and training events • Qualify for annual bonuses (10,000 R/O = 200,000VP from your Supervisor, three lines down) 25