Sales & Marketing Plan Modular Training

Compensation Plan: Royalty Overrides

3 rd Area of Income:

MARY

Royalty Overrides: A payment ranging from 1%-5% made to Fully Qualified Supervisors on the Monthly Volume of their three levels of Active* Downline Supervisors.

JOHN (500+ TV)

JOE (500+ TV)

* Active Downline Supervisors are those who have 500+ VPs in their PV or TV. If the Downline Supervisor’s Volume is less than 500 VPs, they are considered inactive, but the Upline FQS is eligible to earn R/O on these inactive Supervisors as well.

This is paid on Earn Base, on the 15th of every month for previous months orders.

MARIA (500+ TV)

LEE

Example: As a Supervisor Joe purchases at 50% discount.

• Joe earns 1-5% Royalty Override on purchases made by John, Maria, Anna* & Pat (*Anna being inactive Downline Supervisor)

ANNA (0-499 TV)

CUSTOMER A

CUSTOMER B

Note: As a Supervisor Joe purchases at 50% discount and is eligible to earn 50% retail profit when selling to customers A & B. Also, Joe may potentially earn 8% - 25% wholesale profit (Split Commission) when Lee purchases from Herbalife.

PAT (500+ PV)