Sales and Marketing Plan Induction Training

Sales and Marketing Plan Induction Training

May 2024 Education & Training, E&A

Training flow

Introduction

Preferred Customers

• Our history • Herbalife At - A - Glance • Our Principles • CEO

On-line Tools • Member’s andHN employees’ communication Websites

Members

Compensation Plan • 1st area of income – Retail Profit • 2nd area of income – Wholesale Profit / Split Commission

• Herbalife Member Pack (HMP) • Membership Application & Agreement, GSGs • Use, Wear, Talk • Official Country List • Volume • Member’s Hierarchy

• 3rd area of income Royalty Override • 4th area of income – Production Bonus • 5th area of income – Mark Hughes Bonus

Introduction

Our history

Herbalife Nutrition was built upon the vision of its Founder and First Distributor Mark Hughes (1956 – 2000) to bring good nutrition and an unrivaled business opportunity to people around the world.

We are a global leader in nutrition with over 40 years of experience in developing best-in-class meal replacement shakes and dietary supplements. We are also one of the world’s leading direct-sales brands with network of Independent Distributors that spans across the globe.

Mark Hughes Story

Company History

To explore more about Herbalife please visit: https://www.herbalife.com/

Herbalife At A Glance

Who we are A Global Nutrition Company Committed to Helping People Pursue Healthy, Active Lifestyle.

Financials

GLOBAL

Our Products

USD $5.1 Billion Total Net sales in 2023

Fit & Active

Healthy Weight Wellbeing

5,800.9 Billion Volume Points in 2023

E&A USD $1.068 Billion Total Net sales in 2023

New York Stock Exchange (NYSE: HLF) Share Price: $9.72 (as of May 6 th , 2024)

1,222.9 Billion Volume Points in 2023

https://ir.herbalife.com/

Herbalife Family Foundation (HFF)

Play Video HERE

HFF Raises Over $1.4 Million at 30th Anniversary Gala Fundraiser

HFF site HERE

Supporting the Brand

Our athletes HERE

• Mr. Johnson served as CEO of Herbalife Nutrition from 2003 to 2017, Chairman from 2007 to early 2020 and interim CEO from 2019 to early 2020.

• During his prior tenure with Herbalife Nutrition, the Company quadrupled sales and expanded its operations around the world from 58 to 95 markets.

• Under his leadership, Herbalife Nutrition’s product portfolio and R&D function significantly increased, by bringing approximately 65% of all product manufacturing in-house, including the development and introduction of the Herbalife24 line of sports nutrition products.

• In addition, he drove many of the Company’s key marketing initiatives, including the sponsorship of more than 200 athletes and teams around the globe.

• Prior to Herbalife Nutrition, Mr. Johnson was President of Walt Disney International for 17 years.

Terminology & Abbreviations

Annual Membership Services Fee

AMSF

Recruit, Retail, Retain

3 R’s

Matching Volume

MV or MCH VOL

Royalty Override

R/O

Millionaire Team

MILL or MT

Daily Methods Of Operation

DMO’s

Sales Order

S/O

Notice to Ship

NTS

Member

MB

One Month

OM

Second Month

SM

First Month

FM

Organizational Volume

OV or ORG VOL

Senior Consultant

SC

Fully Qualified Supervisor

FQS

Success Builder

SB

Personal Volume

PV

Global Expansion Team

GET or GT

President Team

PRES or PT

Supervisor

SP or FQS

Group Volume

GV

Production Bonus

PB

Success Training Seminar

STS

Herbalife

HRBL or HL/HLF

Promotional/Promote

PROMO

Supervisor Qualification Form SUPPAPP

Qualified Producer

QP

Herbalife Broadband Network

HBN

Qualifying Supervisor

QS

Top Achievers Business Team

TAB TEAM

Herbalife Opportunity Meeting

HOM

International Business Opportunity

IBO

Total Volume

TV

More abbreviations HERE

Volume Points

VPs

Herbalife Member Pack

HMP

MB Subtypes Definitions HERE

Members

Herbalife is a Direct Selling Company

Direct Selling/Network Marketing (NM)

In a Direct Selling/Network Marketing company the responsibility for the sales support function, particularly recruiting, training and motivation, are in effect delegated to independent direct sellers (HN Independent Distributors / Members).

How introduced to Herbalife

Why interested in becoming a Herbalife Member?

• Existing Customer via their Member (typically becomes their ‘Sponsor’)

• Circle of Influence

• Button, flyer, internet

• Referred to an existing Herbalife Member o Herbalife Office o Member Services / Call Centre • Lead Referral Programme A potential Customer or Member, not knowing any existing HN Member yet can use the ‘Find a Member’ option on www.herbalife.com and after leaving contact details, will be referred to an existing Memberwho has qualified for this Programme by meeting certain requirements which are determined locally.

• Customer who wishes to get a Discount

• Customer who wishes to sell the products to friends and family to earn an extra income

• Someone who wishes to build a business either locally, nationally or internationally …

For more information on the Programme check the Q&A.

Herbalife Member Pack (HMP)

Pre-printed HN ID Number

To become a Member, you must purchase a Herbalife Member Pack (approx. ₤40)*. The pack includes F1 shake (Vanilla), Shaker, Measuring Scoop, Literature, Promotional Items and the Application Form to sign up.

New Members may apply online via MyHL**.

Existing Herbalife Sponsor’s Name and ID number are required in order to apply online. Once all steps have been completed online, the New Member will be created in our internal system.

HN Sponsor’s ID Number

* N/A in Turkey and India.

** Online Application is not available in all countries currently, list HERE.

Gold Standard Guarantees (GSGs)

• The GSGs are six advisories that a new Member will be required to acknowledge prior to placing their first order with HN. To show that the new Member has read and understood our Gold Standards, we require that they check the box under each acknowledgement. • All newly “Reinstated” and “Transferred” Members will be required to acknowledge the GSGs if they have not done so already, regardless of their application date. • When applying using the Online Contract, if the applicant does not acknowledge the Gold Standards, they will not be able to proceed with submitting their application and agreement. • GSGs are required for paper applications as well. The Member is required to check off all advisories on this acknowledgements page and return to HN along with the Member Application for processing.

More info HERE

Use, Wear, Talk

• Mark ’s marketing tools were simple – the product, the Marketing Plan and the “Lose Weight Now, AskMe How” button

Use, Wear, Talk

Ordering Process 3-way calls

Tools and Training

• His limitless imagination, boundless energy and enthusiasm, and his unwavering belief in the products and the opportunity, captured the spirit of everyone who wanted to be part of Herbalife

Role of a Sponsor

Goals

90 Day Plan

Protection of Sponsor and their Downline

Tell, Show, Try, Do

• He may have had the dream, but it was his Members that helped him turn his business into a multibillion-dollar international company

Member Trainings and Meetings

Help and support

Members’ Initiatives & Business Strategies

•

Independent

Herbalife Opportunity Meetings

Nutrition Clubs

•

USE, WEAR, TALK

Weight Loss Challenge

Talking / Word of Mouth

•

Part Time or Full Time

• Changing People’s Lives

•

100% Commission based

Trial Packs

Skin Care Parties

Everything works if you work

• Recruiting, Retailing and Retention

• Ambassadors of Herbalife and their organisations

Shake Parties

Sampling

• Responsible for training and support of their organisations

Healthy Breakfast

Wellness Evaluation

Healthy Active Clubs

• Member Initiatives and Strategies

Our Members - what they want from Herbalife

• High quality products delivered on time

• Their earnings paid on time

• Brand Confidence

• Recognition

• Support , motivation and inspiration for them & their organisations

• Questions answered – correctly and timely

• Quality of service

• Follow up

Official country list around the world

Product cannot cross borders

1. USA

Feb 1980 Oct 1982 Apr 1983 May 1984 Nov 1988 Jul 1989 Jul 1989 Sep 1989 Nov 1989 Sep 1990 Nov 1990 Aug 1992 Oct 1992 Oct 1992 Dec 1992 May 1993 May 1994 Jun 1994 Jul 1994 Aug 1994 Sep 1994 Oct 1994 Oct 1994 Dec 1994 Apr 1995 Jul 1995 Jul 1995 Aug 1995 Sep 1995 Sep 1995 Dec 1995 Dec 1995

65. ZAMBIA 66. ROMANIA 67. HONDURAS 68. NICARAGUA 69. GUATEMALA 70. ECUADOR 71. VIETNAM 72. PARAGUAY 74. BULGARIA 75. GEORGIA 76. BELARUS 77. LEBANON 78. MONGOLIA 73. ARUBA

Jul 2007 Jun 2008 Oct 2008 Oct 2008 Oct 2008 Nov 2008 Nov 2009 Nov 2009 Feb 2010 Nov 2010 Feb 2011 Jul 2011 Sep 2011 Sep 2011 Dec 2011 Jan 2012 Feb 2012 Jun 2012 Jun 2012 Aug 2012 Oct 2012 Nov 2012

33. GREECE 34. KOREA

Jul 1996 Nov 1996 Mar 1997 Jun 1997 Mar 1998 Sep 1998 Nov 1998 Nov 1998 Nov 1998 Nov 1998 Feb 1999 Jun 1999

2. CANADA

Members may only sell HN products that are approved for sale in that country and may not export/ship products to other countries. Regulations vary from country to country in which we are open. Such regulations govern the formulas and types of products that are sold in each country. A Member may sell products to a customer in another country by placing an International HN Order - ISS - International Sponsoring Sale .

3. AUSTRALIA

35. CHILE

4. UNITED KINGDOM 5. NEW ZEALAND

36. THAILAND 37. TURKEY 38. INDONESIA 39. BOTSWANA 40. LESOTHO

6. SPAIN 7. JAPAN 8. MEXICO 9. ISRAEL 10. FRANCE 11. GERMANY 12. PORTUGAL

41. NAMIBIA

42. SWAZILAND

43. JAMAICA 44. ICELAND

13. CZECH REPUBLIC

45. INDIA Nov 1999 46. SLOVAK REPUBLIC Nov 1999 47. CYPRUS May 2000 48. PANAMA May 2000 49. IRELAND Jun 2000 50. COLOMBIA Jun 2001 51. CHINA Nov 2001 52. CROATIA Nov 2001 53. LATVIA Mar 2002 54. UKRAINE Sep 2002 55. MACAU Sep 2002 56. ESTONIA Feb 2003 57. SINGAPORE Apr 2003 58. LITHUANIA Sep 2003 59. BOLIVIA Aug 2004 60. HUNGARY May 2005 61. MALAYSIA Jan 2006 62. COSTA RICA Mar 2006 63. PERU Dec 2006 64. EL SALVADOR Feb 2007

14. HONG KONG

15. ITALY

79. GHANA

16. NETHERLANDS 17. VENEZUELA 18. DOMINICAN REP.

80. SLOVENIA 81. URUGUAY

82. SERBIA

19. ARGENTINA 20. BELGIUM 21. POLAND 22. DENMARK 23. SWEDEN 24. PHILIPPINES

83. MACEDONIA

84. ARMENIA

85. KAZAKHSTAN

86. BOSNIA

87. MOLDOVA Nov 2012 88. TRINIDAD &TOBAGO Dec 2012 89. CAMBODIA Nov 2013 90. KYRGYZ REPUBLIC Nov 2013 91. AZERBAIJAN Dec 2013 92. MONTENEGRO Dec 2014 93. KOSOVO Feb 2015 94. MALTA Feb 2016 95. UZBEKISTAN Aug 2020

25. RUSSIA 26. TAIWAN 27. AUSTRIA

28. SWITZERLAND

ISS manual HERE; FAQ HERE

29. BRAZIL

30. SOUTH AFRICA

31. FINLAND 32. NORWAY

E&A, RSM, India, Israel & Ukraine

Legal age to become a Member / PC is set by Government not Herbalife . Examples: The United Kingdom: Adult  18 Minor  14 to 17 Agreement signed by legal guardian or parent

*These are the name for the Regional Head.

57 Countries in total

Minor Policy HERE

Legal age to become a Member/PC country list HERE

Annual Membership Services Fee (AMSF)

All Members are charged an Annual Membership Services Fee (AMSF)*

The Fee is taken for Herbalife Nutrition computer processing and services like maintaining discount rates, lineage records and qualification status.

• It must be received from a specific Member and may not be paid by any other Member

• Members are notified via e-mail and notifications on MyHerbalife of the deadline for payment 60 days prior to their fees becoming due

• Members will have a 90-day grace period post anniversary date

• If the Fee has not been paid after grace period, the Membership will become expired, and Member will be placed in Deleted Status and all lineage will be moved to the next upline Sponsor. • Members deleted for non-renewal with more than one year of AMSF due will only be required to pay one year’s AMSF to become reinstated. By paying one year’s fee, all past due fees will be waived and brought current, giving them no less than one full year before their next AMSF is due.

• Members are reinstated at their current level and discount (i.e., Qualified Producers are reinstated at the QP level with a 42% discount).

• Should a requalified Supervisors fee remain unpaid 90 days after requalifying, the Supervisor is placed on hold (Can’t Buy & Do Not Pay). If after this initial 90 days they do not do this, they will be given an additional 90 days to do so. If After this period the fee remains unpaid their distributorship will be deleted and they will permanently lose their lineage, which rolls up to their current sponsor.

Non Supervisor

£ 7.47 (€10.98) ( SKU 9909) £ 53.89 (€79.30) ( SKU 0909)

AMSF info and Q&A HERE

Supervisor

*Note: The following countries do not have an Annual Distributorship Services Fee: Korea, Uzbekistan, Vietnam, Turkey, and China.

Example of non-payment of AMSF

(Member LEVEL: Member, Senior Consultant, Qualified Producer)

Fee is Due for Member B

Fee not paid by Member B - Lineage Change

FQS

FQS

MB A

MB A

MB B

MB C

MB D

MB B

MB E

MB C

MB D

MB E

Monthly business

Month-to-Month Herbalife operates on a Month-to-Month basis.

Volume Month or Order Month Period of time where Members can place orders/business in order month qualification. End of Month (EOM) The last day of the month to place an order to count towards the current month’s volume.

Dual Month End When the last day of the month falls on a weekend or holiday, there may be an extension to the order month to the 1, 2, 3rd of the following month. Volume may be applied to the previous order month or current.

Volume Points

A Volume Point value is assigned to each Inner and Outer Nutrition product to ensure that equal recognition is given for equal sales effort, regardless of the difference in retail price or local currency. As a Distributor accumulates Volume Points, their discount can increase up to a maximum 50% discount on the *Earn Base of each product. Higher discounts can potentially result in higher Retail Profits, when selling products to Customers.

Wholesale Profit (Split Commission)

Retail Profit

Royalty Overrides

Potential Income & Incentives

Vacations

Production Bonus

*Earn Base Value: The value assigned to a product, in local currency, on which discounts and earnings are calculated .

Annual Mark Hughes Bonus

Promotions

Member’s Hierarchy - overview

TAB Team Top Achievers Business Team

Production Bonus

Royalty Overrides

President’s Team

Wholesale Profit

Millionaire Team

Global Expansion Team (GET)

Discount & Retail Profit

World Team

Supervisor

Millionaire Team 7,500 †

Qualified Producer *

Success Builder*

GET 2,500 †

Senior Consultant*

Active World Team †

Member

Active Supervisor †

*It is not necessary to become a Senior Consultant, Success Builder or Qualified Producer before qualifying as a Supervisor. † Active Supervisor, Active World Team, GET 2,500 and Millionaire Team 7,500 are recognition levels, not earnings levels in the Sales & Marketing Plan Active Supervisor Promotion Reference Materials

Member’s Hierarchy - overview

Founder’s Circle

Chairman’s Club

90 K President’s Team

10+ Diamonds President’s Team

80 K President’s Team

70 K President’s Team

60 K President’s Team

50 K President’s Team

40 K President’s Team

30 K President’s Team

20 K President’s Team

15 K President’s Team

President’s Team

5-9 Diamonds President’s Team

1-4 Diamonds President’s Team

Steps to success

Anniversary Awards Contributions and longevity with HN

1 Million Lifetime Achievement Award 1 Million Volume Points achieved

2 Million Lifetime Achievement Award 2 Million Volume Points achieved

3 Million Lifetime Achievement Award 3 Million Volume Points achieved

4 Million Lifetime Achievement Award 4 Million Volume Points achieved

5 Million Lifetime Achievement Award 5 Million Volume Points achieved

Member Discount Scale

MEMBER LEVEL

MONTHLY VOLUME

DISCOUNT

ELIGIBILITY

MEMBER

0 – 499 Volume Points

25%

Until you become eligible for a higher discount.

Accumulation of 500VP in 1-2 months, 35% discount will apply on the order that brings the MB to or above the 500VP threshold OR purchase a 500VP order@ 35%. All orders will be placed at 35% discount until MB becomes eligible for a higher discount. Once accumulate 2000 Volume Points in 1-2 months, MBs are eligible to a 42% discount for the threshold order and the discount remains till the end of that Volume Month. The accumulation of 1000 PPV* in 1 month entitles MBs to a 42% discount on the threshold order and all orders for the remainder of the Volume Month plus the next month. After reaching the required threshold, MB becomes Qualified Producer and is entitled to a 42% discount on every order until becomes eligible for a higher discount.

Achieve 500 Volume Points or more

35%

SENIOR CONSULTANT

Achieve 2000 Volume Points or more

42%

SUCCESS BUILDER 1000 Personally Purchased Volume accumulated in 1 month

42%

QUALIFIED PRODUCER

Accumulate 2500 Volume Points within 1-6 months of which 500 must be PPV*.

42%

Achieve 4,000 Volume Points in One Month, over Two Months or within 3-12 Months (refer to the Supervisor Qualification requirements) 1.One Month: Achieve 4,000 Volume Points in one month (with a minimum 1,000 of those 4,000 Volume Points unencumbered) 2. Two Months: Achieve 4,000 Volume Points over two consecutive months (with a minimum of 1,000 of those 4,000 Volume Points unencumbered over the same two-month period) 3. Accumulated: Accumulate 4000 Volume Points within 3-12 months of which 1,000 must be PPV*.

QUALIFYING SUPERVISOR

Temp 50%

Once qualifying Volume Points are achieved, additional orders will be purchased at a Temporary 50% discount.

As a Supervisor MBs are entitled to a 50% discount on every order. Must requalify annually.

SUPERVISOR

50%

* Volume accumulated by personally enrolled Preferred Customers will contribute to the Personally Purchased Volume (PPV) requirement. This volume is referred to as My Preferred Customer Volume (MPCV).

❖ The Marketing Plan Harmonization updates will not apply to US/US Territories, Venezuela or China. ❖ Countries that currently do not have a PPV requirement will not introduce the PPV requirement.

Preferred Customer

Preferred Customer Programme in E&A

Preferred Customer in a nutshell:

• Herbalife Nutrition’s Customer - uses products for a personal consumption at a discounted price • Must purchase a Herbalife Preferred Customer Pack (PC Pack) This is a Digital Welcome Pack in most countries and a physical pack for France, including some products. • Must submit a Preferred Member or Conversion Application • Purchases at a discount of 15%, 25%, 35% (25%,35%,42% in Italy) • Cannot retail or recruit In the countries with the Referral Programme in place, an existing PC may refer a friend/family to become a PC.

• Free Shipping for online orders over 40 Points (over 100 Points for TU and N/A for IT)

PCX around the world: E&A: Italy, Turkey, Romania, Germany, Austria, France, Belgium, Poland, Portugal, South Africa, Switzerland, UK, Czech Republic, Norway, Ireland; Ukraine, Israel

• Order in different country for product consumed in that country If that country has a PCX Programme.

RSM: Russia, Belarus, Kazakhstan, Mongolia

• End consumer • 30-day money back guarantee • 90-day full refund for Member Kit (N/A for Turkey)

Other regions: Brazil, Colombia, Chile, Peru, India, USA/PR, Mexico, Hong Kong, Ecuador, Costa Rica, Guatemala, Panama, Argentina, Honduras, El Salvador, Japan, Philippines, Thailand, Taiwan Upcoming launches in E&A: SK, NL, DK, SE, GR, IS, SP, LS, BW, NA, ZM.

Customer, PC and Member differences

Member

Preferred Customer

Customer

• Herbalife’s Customer •

• Herbalife’s Customer •

• Member’s Customer (purchases from Member) • No need to purchase a Herbalife Member Pack (HMP) • No Membership Application & Agreement • No Discount • End Consumer • 30-day Money Back Guarantee

Depending on a country, must or may not purchase a Herbalife Member Pack (HMP) Must Submit Membership Application & Agreement Purchases at a discount (between 25% - 50%) May retail Herbalife product if they choose May recruit new Members if they choose 30-day Satisfactory Exchange Guarantee 90-day Full Refund for HMP ( N/A for Turkey)

Depending on a country, must or may not purchase a Herbalife Preferred Customer Pack (PC Pack) Must Submit Membership Application & Agreement Purchases at a discount (depending on a country, between 15% - 42%)

•

•

•

•

•

•

May not retail Herbalife product

•

May not recruit new Members - Referral Program in some countries

•

•

30-day Money Back Guarantee

•

•

90-day Full Refund for PC Pack (N/A for Turkey)

•

Online Tools

Introduction to Herbalife Online

General Public • Herbalife.com • I’m Herbalife •

Members •

MyHerbalife.com

•

BizWorks (within MyHL)

Investor Relations

•

Herbalife Events

•

Herbalife Nutrition Foundation

•

Herbalife Extravaganza

•

Herbalife Active

•

HBN (video library)

•

Herbalife24

•

HBN (photos)

•

Herbalife SKIN

•

Go Herbalife

•

Social Media – FB, Instagram, Twitter etc.

•

Weight Loss Challenge

MyHerbalife.com

‘One Stop Shop’ for Members

• Password protected

• Training, account, event and product information

• Inner pages beyond the password protected security gate

• Quick links to the latest news and marketing campaigns

MyHerbalife Experience for Preferred Customers

My Herbalife.com

Track My Points

Welcome Journey, Newsletter, Emails

• Track accumulated Points and Progress towards next level • Review Current and Next level Benefits and Qualification requirements

• Simple Ordering - Shop by Goal • Black-navigation menu and content targeted for a PC • 500 PPV Alert per month (Italy: 530)

• Preferred Customer receive further communication and tips from Herbalife Nutrition regarding promotions and special rewards

MyHerbalife.com/BizWorks

• BizWorks Plus is a digital platform on MyHL to which the Members can subscribe to more effectively manage their independent business by tracking Volume and activities of their organization.

Some benefits of BizWorks PLUS:

✓ 6 useful reports to track Member organization’s earnings & growth via MyHL ✓ Adapted to mobiles ✓ Interactive and with options to personalize the searches ✓ Easily identify top Independent Distributors and those who needs support ✓ It has a simple language and communication made easy

• New BizWorks Plus Mobile App (launched at Extravaganza 2021 for E&A)

It helps track, manage & grow downline business by providing near real time business insights/reports to enable timely & targeted actions / communications. The app will be available in both iOS and Android devices and free to download for all Bizworks subscribers.

Exciting New Features:

✓

RO Estimator

✓

AI Insights

✓

Push Notifications

✓

Social Media messaging and more..

Compensation Plan

Compensation Plan: Retail Profit

1 st Area of Income

Retail Profit:

The difference between the discounted product price paid by a Member and the retail price paid by a customer.

Example:

Joe purchases at 25% - 42% discount Joe will earn 25% - 42% retail profit when selling to customers A & B

MARY

JOE

CUSTOMER A

CUSTOMER B

Compensation Plan: Wholesale Profit

2 nd Area of Income:

MARY 50%

Wholesale Profit (Split Commission): The difference between the discounted product price paid by a Member and price paid by their Downline Member or Preferred Customer.

JOE 25%- 42%

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

LEE 25%- 42%

CUSTOMER A

CUSTOMER B

Example: Lee purchases at 25% - 42% discount.

• Joe can earn 7% - 17% wholesale profit (commission) when Lee purchases from HN. • Joe can earn 7% - 27% wholesale profit (commission) when a PC purchases from HN.

PC 15%- 35%

Note: Joe is still eligible for the Retail profit, as he purchases products at 25%-42% discount and can earn 25%-42% Retail Profit when selling to Customers A & B.

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

* 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

ANNA (0-499 TV)

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

CUSTOMER A

CUSTOMER B

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

PAT (500+ TV)

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 HN.

Royalty Overrides Sliding Scale

Total Volume Points

R/O Earning Percentage

0 – 499

0%

500 – 999

1%

1,000 – 1,499

2%

1,500 – 1,999

3%

2,000 – 2,499

4%

2,500 or more

5%

Royalty Override % is determined by FQS Total Volume

The Royalty Override scale shows the Total Volume (Personal + Group) requirements that a Supervisor must meet every month to earn Royalty Override .

If a Supervisor produces less than 500 TV, then no Royalty Override scale are earned in that month.

World Team

PRES Team

MILL Team

GET Team

Active World Team

Team

World

Supervisor

• • •

3 ways to qualify

Builder

Success

Recognition level only No additional earnings

Senior

• Supervisors must requalify annually in order to retain this status

Consultant

Member

Top Achievers Business Team (TAB Team)

GLOBAL EXPANSION TEAM

MILLIONAIRE TEAM

PRESIDENT TEAM

(GET)

(MILL)

(PRES)

How to qualify:

GET = 1000 R/O Points in 3 Consecutive Months

MARCH 1000 R\O PTS

FEB 1000 R\O PTS

APRIL GET

JAN 1000 R\O PTS

Pres Recognition: • Plaque & Pin •

Same benefits as an FQS Eligible to earn 2-7% PB Qualify for Vacation and Training Events

MILL = 4000 R/O Points in 3 Consecutive Months

• •

JAN 4000 R\O PTS

APRIL MILL

FEB 4000 R\O PTS

MARCH 4000 R\O PTS

Mill Recognition: • Plaque & Pin •

Same benefits as an FQS Eligible to earn 2-4% PB

•

PRES = 10,000 R/O Points in 3 Consecutive Months

GET Recognition: • Plaque & Pin •

APRIL PRES

JAN 10,000 R\O PTS

FEB 10,000 R\O PTS

MARCH 10,000 R\O PTS

Same benefits as an FQS

•

Eligible to earn 2% Production Bonus

Compensation Plan: Production Bonus

Tom

4 th Area of Income:

Sally TAB Team

Edward (500+ TV)

Production Bonus: A payment ranging from 2% - 7% made on the Monthly Volume of all levels of Downline Supervisors to TAB Team Members, who meet certain requirements.

(R/O + PB)

Anna (500+ TV)

(R/O + PB)

This is paid on Earn Base, on the 20th of every month for previous months orders.

Charlie

CUSTOMER A

Kevin (500+ TV)

CUSTOMER B

(R/O + PB)

Example: • As a TAB Team Member, Sally could earn between 2-7% on purchases made by Edward, Ann, Kevin, Jill (All levels of Supervisors)

Jill

(PB Only)

Note: As a Supervisor ( SP ) Sally purchases at 50% discount and earns 50% retail profit when selling to customers A & B. As a Member ( MB) Charlie purchases at 25%-42% discount, Sally may potentially earn 8%-25% wholesale profit (Split Commission) when Charlie purchases from HN. Sally earns 1-5% Royalty Overrides on purchases made by Edward, Anna & Kevin (1st three downline levels of Supervisors) .

(PB on all levels of SP)

Herbalife Honors (Summit)

5 th Area of Income: Mark Hughes's Bonus

1% PAID ANNUALLY (1% on every single order placed directly with the company)

Herbalife sets aside up to 1% of total worldwide company product sales to be paid as a Mark Hughes Bonus Award to President’s Team Members who meet certain requirements.

The qualification period: March 2022 - January 2023 Volume months.

Corporate Criteria: Mark Hughes Bonus Rules plus … • Longevity and loyalty • Being ethical • How many times cut off or blocked • Work on behalf of the company (Calls, STS, Trainings etc.) • Overall organisation production (previous v current year) • 1st line SP’s recruited • Support in Downline achieving GET, MILL

Highlights - Honors 2019: Singapore

Compensation Plan

• 1st Area of Income = Retail Profit from Customers

• 2nd Area of Income = Wholesale Profit (Split Commission) from Members

• 3rd Area of Income = Royalty Overrides from Supervisors (5% on 3 levels)

• 4th Area of Income = Production Bonus paid to Top Achiever’s Business (TAB) Team members

• 5th Area of Income = Mark Hughes Bonus Award paid to President’s Team members and above who qualify

50%

Discount

15%

Royalty Overrides Production Bonus

7% 1%

Mark Hughes Bonus Award

73%

Officials as of Q1 2024

Total PM Count

SP excl. WT, TAB

Region

Total DS

WT

GT

MT

PT

CC

FC Total SP

EMEA

612,965

959,607

116,906

38,947

6,970

1,776

572

15

2

165,188

Worldwide

3,251,483

2,930,454

385,942

154,284

32,756

8,014

2,971

62

11

584,040

*Note: This is for internal reference only; not to be shared.

Latest Financial Results

Thank you!

Quiz Link