Discover the

Herbalife Opportunity

Sales & Marketing Plan

India - Sales & Marketing Plan Page 1 of 26 Revision: May 2023

SALES & MARKETING PLAN
Overview
Herbalife’s Sales & 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 & Marketing Plan pays a high percentage of product revenues to Associates in the
form of Retail and Wholesale Profits, Volume Rebate 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 Associate. Each
Associate’s success is dependent on two primary factors:

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

These two factors raise the importance of an Associate’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 Associates for their efforts and enhance their success.

Becoming an Associate – The Important First Step

There is no required purchase in order to become an Herbalife Associate and the sign up is free. You must compete
and submit a Herbalife Associateship Application and Agreement in order to receive an Herbalife Identification
Number and purchase products.

Registration
You officially become an Herbalife Associate when your properly completed Application has been processed and
accepted by Herbalife. The quickest and easiest method of completing your registration is online at
https://www.myherbalife.com/en-in/. You may also e-mail your Application or submit original application at walk-in
centers; 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
Associate.

Customers and Downline Associates

There are two type of customers:

• Preferred Customer – Anyone who submitted a Preferred Customership Application and Agreement and
is entitled to purchase Herbalife products for their household’s personal consumption at a discount directly
from the company.

• Retail Customer – Anyone who is not an Herbalife Associate or Preferred Customer who purchases
Herbalife products from a Associate.

Retail Customers and Preferred Customers may not sell products, recruit or sponsor others, or receive
compensation under the Sales & Marketing Plan.

A downline Associate is anyone who you introduced to the business opportunity and who has submitted their
Associateship Application and Agreement, which has been accepted by Herbalife, you become their sponsor, and
they become your downline.

Downline Levels
Your First Level Downline are those Associates you personally sponsored. When Associates in your First Level
sponsor other Associates, those new Associates become your Second Level. When your Second Level, in turn,
sponsors others, those they sponsor become the Third Level in your Herbalife organization.

Every Associate starts at the same place on the Herbalife Sales and Marketing Plan and each level has specific
qualifications, income opportunities and associated benefits to reward Associates for their sales.

India - Sales & Marketing Plan Page 2 of 26 Revision: May 2023

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

Immediate Retail Profit

The amount of profit that a Associate earns on a retail sale.
• Retail Profit is the difference between the price at which the Associate sells the product to the Retail
Customer and the Associate Price.
• Selling Price minus Associate Price = Retail Profit

Wholesale Profit (also known as Commissions)

When a Associate qualifies for a higher Discount Percentage than a Preferred Customer, or a Associate in their
downline, then the Upline Associate may earn a Wholesale Profit
• Wholesale Profit is equal to the Earn Base value of the product times the difference between the Upline
Discount Percentage and the Downline Discount Percentage.
• Earn Base x (Upline Discount Percentage minus Downline’s Discount Percentage) = Wholesale Profit

Monthly Volume Rebate Income

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

India - Sales & Marketing Plan Page 3 of 26 Revision: May 2023

 STEPS TO SUCCESS
Senior Success Qualified
Associate Supervisor World Team
Consultant Builder Producer

500 Volume 1,000 Personally 2,500 4,000 Volume 2,500 Volume

Points or more Purchased accumulated Points (VP) in 1 Points (VP) in
accumulated in Volume Points Volume Points month or 4,000 each of 4
1 to 2 months or more in one accumulated in accumulated consecutive
order* 1 to 6 months, over 2 months or
all orders must consecutive 10,000 VP at
be purchased months (with a 50% in 1 month
directly through minimum of or 500 Volume
Herbalife * 1,000 of those Rebate Points in
VP 1 month
Unencumbered)
or 4,000
accumulated VP
within 12 months
of which a
minimum 2,000
is PPV

Global Global Millionaire 15K 20K

Expansion Millionaire Team President’s
Expansion President’s President’s
Team Team 7,500 Team
Team 2,500 Team Team

1,000 Volume 2,500 Volume 4,000 Volume 7,500 10,000 Volume Gold & 20,000 Volume
Rebate Points Rebate Points Rebate Points Volume Rebate Points Diamond Rebate Points
in 3 in 3 in 3 Rebate in 3 Cufflinks & in 3
consecutive consecutive consecutive Points in 3 consecutive Earrings consecutive
months months months consecutive months months
months 15,000 Volume
Rebate Points in
3 consecutive
months

30K 40 K 50K 60K 70K 80K 90K

President’s
Team President’s President’s President’s President’s President’s President’s
Team Team Team Team Team Team

30,000 Volume Herbalife - 50,000 Volume White Gold and White Gold and White Gold and Piaget
Rebate Points Branded Rebate Points in Diamond Diamond Signet Diamond Ring Herbalife -
in 3 consecutive Movado 3 consecutive Necklace and Rings and Earrings branded
months Watches months Cufflinks Diamond
70,000 Volume 80,000 Volume Watch and
40,000 Volume 60,000 Volume Rebate Points in Rebate Points in White Gold
Rebate Points Rebate Points in 3 consecutive 3 consecutive Diamond Logo
in 3 consecutive 3 consecutive months months Bracelet
months months
90,000 Volume
Rebate Points in
3 consecutive
months

*It is not necessary to become a Senior Consultant, Success Builder or Qualified Producer before qualifying as Supervisor. For
complete qualification details, visit https://www.myherbalife.com/en-in/.
*Actual watch model may vary based on availability at time of qualification.

India - Sales & Marketing Plan Page 4 of 26 Revision: May 2023

 PRESIDENT’S TEAM PLUS AWARDS
AND RECOGNITION
1 Diamond 2 Diamond 3 Diamond 4 Diamond 5 Diamond

Executive Senior Executive International Chief Executive Chairman’s Club

President’s Team President’s Team Executive President’s Team
President’s Team

1 first-line, Fully 2 first-line, Fully 3 first-line, Fully 4 first-line, Fully 5 first-line, Fully
Qualified President’s Qualified President’s Qualified President’s Qualified President’s Qualified President’s
Team member* in Team members* in 2 Team members* in 3 Team members* in 4 Team members* in 5
any line of your separate lines of separate lines of separate lines of separate lines of
organization your downline your downline your downline your downline
organization organization organization organization

6 Diamond 7 Diamond 8 Diamond 9 Diamond 10 Diamond

Chairman’s Club Chairman’s Club Chairman’s Club Chairman’s Club Founder’s Circle

7 first-line, Fully 8 first-line, Fully 9 first-line, Fully 10 first-line, Fully

6 first-line, Fully Qualified President’s Qualified President’s Qualified President’s Qualified President’s
Qualified President’s Team members* in 7 Team members* in 8 Team members* in 9 Team members* in
Team members* in 6 separate lines of separate lines of separate lines of 10 separate lines of
separate lines of your downline your downline your downline your downline
your downline organization organization organization organization
organization

Baume & Mercier Gold and Diamond Piaget Gold and Piaget Diamond
Watches† Marquis Rings Diamond Watches† Watches†

250,000 Volume Rebate 500,000 Volume Rebate 750,000 Volume Rebate 1,000,000 Volume
Points in 12 consecutive Points in 12 consecutive Points in 12 consecutive Rebate Points in 12
months (calendar year) months (calendar year) months (calendar year) consecutive months
(calendar year)

*For complete qualification details, visit https://www.myherbalife.com/en-in/.

†
Actual watch model may vary based on availability at time of qualification.

India - Sales & Marketing Plan Page 5 of 26 Revision: May 2023

 ACHIEVEMENT AWARDS AND
ANNIVERSARY PINS
1 Million Lifetime 2 Million Lifetime 3 Million Lifetime 4 Million Lifetime
Achievement Award Achievement Award Achievement Award Achievement Award

1 Million Volume Points 2 Million Volume Points 3 Million Volume Points 4 Million Volume Points
Lifetime Achievement Lifetime Achievement Lifetime Achievement Lifetime Achievement
Awards are given to Awards are given to Awards are given to Awards are given to
Associates who have Associates who have Associates who have Associates who have
achieved 1 million achieved 2 million achieved 3 million achieved 4 million
Volume Points or more Volume Points or more Volume Points or more Volume Points or more
during their Herbalife during their Herbalife during their Herbalife during their Herbalife
career* career* career* career*

1-Year 3-Year 5-Year 7-Year 10-Year

Anniversary Anniversary Anniversary Anniversary Anniversary

1-year anniversary 3-year anniversary 5-year anniversary 7-year anniversary 10-year anniversary
are awarded to are awarded to packages are packages are packages are
Associates in Associates in awarded to awarded to awarded to
recognition of their recognition of their Associates in Associates in Associates in
contributions and contributions and recognition of their recognition of their recognition of their
longevity with longevity with contributions and contributions and contributions and
Herbalife Herbalife longevity with longevity with longevity with
Herbalife Herbalife Herbalife

15-Year 20-Year 25-Year 30-Year 35-Year 40-Year

Anniversary Anniversary Anniversary Anniversary Anniversary Anniversary

35-year 40-year
15-year 20-year 25-year 30-year anniversary anniversary
anniversary anniversary anniversary anniversary packages are packages are
packages are packages are packages are packages are awarded to awarded to
awarded to awarded to awarded to awarded to Associates in Associates in
Associates in Associates in Associates in Associates in recognition of their recognition of their
recognition of their recognition of their recognition of their recognition of their contributions and contributions and
longevity with longevity with
contributions and contributions and contributions and contributions and
Herbalife Herbalife
longevity with longevity with longevity with longevity with
Herbalife Herbalife Herbalife Herbalife

*For complete qualification details, visit https://www.myherbalife.com/en-in/.

India - Sales & Marketing Plan Page 6 of 26 Revision: May 2023

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 Manual Order
Template and price lists for exact information). Official Herbalife 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.

Explanation of Volume Month

Definition of Volume Month
Volume is assigned to and accumulated on a Volume Month basis. The Volume Month begins on the first business
day of the month and ends on the last business day of the month. Herbalife reserves the right to modify the Volume
Month as it deems appropriate.

Determination of Volume Month

Volume is assigned to the Volume Month in which the order is both placed and full payment is received by Herbalife.

Add-On Volume
The following conditions must be met for an order to be accepted as Add-On volume:

1. Order must be placed no later than the designated last order day of a Volume Month

2. Full payment must be made, or initiated, on the same last order day of the month. For example if payment is
mailed, the postmark must be stamped the designated last order day of a volume month. If the payment is a wire
transfer, direct deposit or other bank transaction, then it must be initiated on the last order day of a volume month.

3. Full payment must be received by Herbalife no later than the 5th day of the following month. If the 5th of the
month falls on a weekend or a holiday, then the payment must be received by the last business day before the 5th.
If for any reason, a payment is not accepted or received, then the order will be canceled and the Volume will not be
applied.

There are a number of ways volume is assigned in the Herbalife Sales & Marketing Plan. The following definitions
and examples illustrate these:

Personally Purchased Volume (PPV)

Personally Purchased Volume is the volume on orders purchased directly from Herbalife using your Herbalife
Identification Number.

Downline Volume (DLV)

Downline Volume is achieved on orders placed by your Preferred Customers, and non-Supervisor downline directly
from Herbalife.

Downline Volume Example

Purchases/ Discount % Downline Volume

A 2,500 Volume Points

= *
Supervisor @ 50% discount

B 500 Volume Points 900 Volume Points

=
Senior Consultant @ 35% Discount (C&D’s Volume)

C 500 Volume Points 400 Volume Points

=
Senior Consultant @ 35% Discount (D’s Volume)

D 400 Volume Points

= 0
Associate @ 25% Discount

*For Fully Qualified Supervisors, Downline Volume is counted towards Personal Volume or Group Volume.

India - Sales & Marketing Plan Page 7 of 26 Revision: May 2023

Personal Volume (PV)
As a Fully Qualified Supervisor, Personal Volume is achieved from your own purchases and purchases made by
your Preferred Customers, and non-Supervisor downline, down to your first Fully Qualified Supervisor.

As a non-Supervisor Associate you may purchase directly from Herbalife, from your Sponsor or your first upline
Fully Qualified Supervisor. Please note that purchases made from your Sponsor or first upline Fully Qualified
Supervisor may not be used for Supervisor Qualifications, only orders placed with the Company count towards
these levels.

Therefore, if you are a Fully Qualified Supervisor, all of your own orders purchased at 50% as well as all orders
purchased by your Preferred Customers and Associates, at 15% to 42% discount count as your Personal Volume.

Personal Volume Example

Purchases/Discount % Personal Volume

1,000 Personally Purchased Volume

A 1,000 Volume Points + 1,800 Downline Volume Points (B,
=
Supervisor + B, C & D’s Volume C & D’s Volume)
= 2,800 Personal Volume

1,100 Personally Purchased Volume

1,100 Volume Points
B + 700 Downline Volume Points (C &
+ C & D’s Volume =
Success Builder D’s Volume)
@ 42% Discount
= 1,800 Volume Points

300 Personally Purchased Volume

300 Volume Points
C + 400 Downline Volume Points (D’s
+ D’s Volume =
Senior Consultant Volume)
@ 35% Discount
= 700 Volume Points

D 400 Volume Points

= 0
Associate @ 25% Discount

Group Volume (GV)

Group Volume is the volume on orders purchased at a temporary 50% discount by Qualifying Supervisor(s) during
the qualifying month.

This Temporary 50% Volume is accumulated as Personal Volume for the Qualifying Supervisor who is purchasing,
and it is Group Volume for the first upline Fully Qualified Supervisor. As a Fully Qualified Supervisor you will earn
Volume Rebate on Group Volume if all other Volume Rebate requirements are met. (Refer to the “Qualifying as a
Supervisor” and “Temporary 50%” sections of this book for complete details.)

Group Volume Example

Purchases/ Discount % Personal Volume

6,500 Personal Volume

A 2,500 Volume Points
= + 1,000 Group Volume
Supervisor + B & C’s Volume
= 7,500 Total Volume

1,000 Personally Purchased Volume

B 1,000 Volume Points
+4,000 Downline Volume
Qualifying @ Temporary 50% Discount =
Points_____________
Supervisor + C’s Volume
= 5,000 Volume Points

C 4,000 Accumulated Volume

= 4,000 Volume Points
Associate Points

India - Sales & Marketing Plan Page 8 of 26 Revision: May 2023

Total Volume (TV)
Total Volume is the sum of Personal Volume plus Group Volume. (See “Group Volume Example” for Supervisor A’s
Total Volume.) Total Volume is the factor on which some qualifications are based.

Organizational Volume (OV)

Organizational Volume is the accumulated Volume amount on which a Supervisor earns Volume Rebate. (See the
“Organizational Volume Example” that follows.)

Organization Volume Example

A Supervisor 2,500 Volume Points

1st Level 10,000 Total

Supervisor Volume Points

2nd Level 10,000 Total = 30,000

Supervisor Volume Points Organization Volume

3rd Level 10,000 Personal

Supervisor Volume Points

Encumbered and Unencumbered Volume

Encumbered Volume
Encumbered Volume is volume being used by your downline to qualify for Supervisor.

Unencumbered Volume
Unencumbered Volume is volume not being used for Supervisor qualifications by your downline.

The example that follows illustrates the use of Encumbered and Unencumbered Volume for each of the Associates.

Encumbered and Unencumbered Volume

A 2,500 Total Volume Points 2,500 Unencumbered for A

=
Supervisor + B & C’s Volume 5,000 Encumbered for A

B 1,000 Total Volume Points 1,000 Unencumbered for B

=
Qualifying Supervisor + C’s Volume 4,000 Encumbered for B

C 4,000 Accumulated
= 4,000 Unencumbered for C
Qualifying Supervisor Total Volume Points

India - Sales & Marketing Plan Page 9 of 26 Revision: May 2023

ASSOCITE BENEFITS

Understanding Retail and Wholesale Profit

Throughout this document we refer to retail and wholesale profit as some of the Associate benefits. Please review
the material below to better understand these terms and how retail and wholesale profits are calculated:

Maximum Retail Price (“MRP”):

• Maximum Retail Price is the maximum price at which Associates can sell Herbalife Products to their
customers. MRP is printed on each Product and is inclusive of all taxes.

Selling Price:
• Each Associate is free to set their own selling price to their customers, which may be equal to or less than the
MRP.

Retail Price:
• This is the price set for all Associates as per the price lists approved from time to time (Before Taxes) from
which the Discount Amount is reduced.

Earn Base:
• This is the monetary value assigned to each Herbalife Product on which all discount and earning calculations
are based.

Discount Percentage:
• This is the percentage of discount on the Earn Base that an Associate is entitled to, based on their purchase
performance and their qualification level in the Marketing Plan.
• The Discount Percentage may range from 25% to 50%.
• The Discount Percentage is always applied to the Earn Base to determine the Discount Amount.
Discount Amount:
• This is the absolute amount of the discount calculated on Earn Base and is reduced from the Retail Price.
• Discount Percentage x Earn Base = Discount Amount.

Purchase Price:
• This is the price that an Associate pays for purchase of Herbalife Products after applying Discount Amount.
Purchase Price includes Delivery Charge and Taxes.
• Purchase Price = Retail Price – Discount Amount + Delivery Charges + Taxes

Retail Profit:
• This is the amount of profit that an Associate earns on a retail sale.
• Retail Profit is the difference between the price at which the Associate sells the product to the customer (i.e.
Selling Price) and the Purchase Price.
• Selling Price – Purchase Price = Retail Profit
• Retail Profit percentage is not the same as the Discount Percentage because:
a. Each Associate can set their own selling price to their customer subject to the cap of the Maximum
Retail Price (“MRP”).
b. Discount Percentage is calculated on Earn Base, which is lower than Retail Price.
• GST payable varies based on whether the associate is registered or not. Please consult your tax advisor for
ascertaining your respective tax liability.

Wholesale Profit (Commissions)

• When an Associate qualifies for a higher Discount Percentage than an Associate in their downline, then the
Upline Associate may earn a Wholesale Profit.
• Wholesale Profit is equal to the Earn Base value of the product, times the difference between the Upline
Discount Percentage and the Downline Discount Percentage.
• Earn Base x (Upline Discount Percentage – Downline’s Discount Percentage) = Wholesale Profit.
• Hence, the wholesale profit represents commission/ allowance paid to the Associates

India - Sales & Marketing Plan Page 10 of 26 Revision: May 2023

Retail and Wholesale Profit Example

FORMULA 1
• Volume Points: 21.75
• MRP: INR 2,276
• Retail Price: INR 1,928
• Earn Base: INR 1,668

Retail Profit Example:

Arun is a Supervisor, with a Discount Percentage of 50%. Arun orders 10 Units of Herbalife Formula 1.

• Arun’s Discount Amount is INR 8,340. The Discount Amount is calculated by taking the Earn Base ( 1668)
x Discount Percentage (50%) x No. of Units of Purchase

• Arun’s Purchase Price is INR 12909. This is calculated by taking the Retail Price (INR 19,280 ) – Discount
Amount (INR 8,340 ) + Delivery Charges (NIL) + Taxes (INR 1,969)

Earn Discount Discounted Delivery Purchase Retail

Retail Taxes* MRP
Base (C) = Retail Charges Price Profit*
F=
G=
(A) (B) B x 50% D = A-C E= (D+E) (H) (H-G)
(D+E+F)
x18%
(Flat INR
100 for
Shipments /
Ecom Drop
points order
less than
100 VP)

19,280 16,680 8,340 10,940 NIL 1,969 12,909 22,760 9,851

* Please consult your tax advisor for ascertaining your GST liability.

• Assume that Arun sells 10 Units of Formula 1 to customers at MRP (INR 22,760). In that situation, Arun’s
Retail Profit is INR 9,851. Retail Profit is calculated by taking the MRP (INR 22,760) – Purchase Price (INR
12,909)

Wholesale Profit Example:

Arun’s downline (Santosh) is a Senior Consultant at a 35% Discount Percentage who also sells 10 Units of Herbalife
Formula 1

• Santosh’s Discount Amount is INR 5,838. The Discount Amount is calculated by taking the Earn Base (INR
1,668) x Discount Percentage (35%) x No. of Units of Purchase

• Santosh’s Purchase Price is INR 15,862. This is calculated by taking the Retail Price (INR19,280) – Discount
Amount(INR5,838) + Delivery Charges (NIL) + Taxes (INR 2,420)

Earn Discount Discounted Delivery Purchase Retail

Retail Taxes* MRP
Base (C) = Retail Charges Price Profit*
F=
G=
(A) (B) B x 50% D = A-C E= (D+E) (H) (H-G)
(D+E+F)
x18%
(Flat INR
100 for
Shipments /
Ecom Drop
points order
less than
100 VP)

19,280 16,680 5,838 13,442 NIL 2,420 15,862 22,760 6,898

* Please consult your tax advisor for ascertaining your GST liability.

• Since Arun’s Discount Percentage is 50% and Santosh’s Discount Percentage is 35%, Arun also earns a
Wholesale Profit on Santosh’s sale/order
• Arun’s Wholesale Profit is INR 16,680 x 15% (50%-35%) = INR. Earn Base x (Arun’s Discount Percentage
– Santosh’s Discount Percentage) = Wholesale Profit

India - Sales & Marketing Plan Page 11 of 26 Revision: May 2023

SENIOR CONSULTANT
Improve Your Profits With the Discount Scale
As you and your non-Supervisor Downline sell more Herbalife products, your Total Volume increases and you may
reach the next level of Senior Consultant. As such, you become eligible to purchase products at a 35% or 42%
discount off the Earn Base, giving you a greater profit margin.

Discount Scale
As a Associate you may purchase at a 25% discount on all orders until you become eligible for a higher discount
by achieving the Senior Consultant level. Thereafter, your discount on purchases will be determined by the Discount
Scale as indicated below at no less than a 35% discount.

A Senior Consultant is eligible to:

• Purchase at 35% or 42% immediately after qualifying for this status
• Earn a 35% or 42% Retail Profit
• Earn up to 27% Wholesale Profit (Commissions) on the Earn Base value from purchases made by your downline
Associates at a 25% or 35% discount, or Preferred Customers between 15% - 35% discount

Volume Points accumulate either from orders placed by you directly with Herbalife, which are referred to
as Personally Purchased Volume, or from orders your Preferred Customers and Associates place with
Herbalife, which are called Downline Volume. Both types of volume may be used to achieve Senior
Consultant Level at a 35% or 42% discount.

Level Monthly Volume Discount Eligibility

Senior Achieve 500 All orders will be placed at 35% discount until
35%
Consultant Volume Points in 1-2 months you become eligible for a higher discount.

Once you have achieved 2,000 Volume

Senior Achieve 2,000 Points, you are eligible to place this order and
42%
Consultant Volume Points in 1-2 months all orders for the remainder of the Volume
Month at a 42% discount.

Your own Personally Purchased Volume order

Minimum 1,000
Success of 1,000 Volume Points or more entitles you to
Volume Points 42%
Builder a 42% discount on this order and all orders for
(One Order)
the remainder of the month.

As a Qualified Producer you are entitled to a

42% Discount on every order until you
become eligible for a higher discount.
Volume can be achieved with PPV or
Achieve 2,500
Qualified utilizing up to 1,500 Downline Volume
Personally Purchased 42%
Producer Points, with the remaining 1,000 as
Volume (PPV) in 1-6 months
Personally Purchased Volume.
Volume Points accumulated by your Personal
Preferred Customers will contribute to your
Personally Purchased Volume requirement.

- Achieve 4,000 Volume Points in one

volume month with a minimum 1,000
Volume Points Unencumbered or
- Achieve 4,000 Volume Points over
two consecutive months, with a Temporary Once Qualifying Volume Points are achieved
Qualifying
minimum 1,000 Volume Points additional orders are purchased at a
Supervisor 50%
Unencumbered or Temporary50% discount.
- Accumulate 4,000 Volume Points
within 12 months with a minimum of 3
months and 2,000 Personally
Purchased Volume required

3 ways to qualify: As a Supervisor, you are entitled to a 50%

Supervisor See section “Qualifying as a 50% discount on every order.
Supervisor” for details (Must requalify annually).

India - Sales & Marketing Plan Page 12 of 26 Revision: May 2023

Note:
Your Personal Volume, plus your downline’s Volume, count as your Total Volume. Once you are on the Discount
Scale, your discount will never be less than 35% for as long as you remain an active Associate and/or until you
become eligible to a higher discount. The more you sell, the greater your profit potential. Remember that each
Volume Month you begin again at a 35% discount and can work your way up to 42% and 50% discount.

Success Builder
As an Herbalife Associate, you have an opportunity to purchase a single order of 1,000 Volume Points directly from
Herbalife at a 42% discount. This qualifies you to become a Success Builder. As a Success Builder, you will be able
to order at a 42% discount for the remainder of the Volume Month.

Associates (non-Supervisors) who do not achieve Success Builder are able to order at a 42% once they have
accumulated 2,000 Volume Points in one to two months or have achieved the Qualified Producer level.

• The Success Builder level is a Personally Purchased Volume qualification; Downline Volume may not be used
toward this discount opportunity.

Qualified Producer
You have the opportunity to achieve Qualified Producer status by accumulating 2,500 Volume Points within 1-6
months of which 1,500 points can be from Downline Volume with the remaining 1,000 as Personally Purchased
Volume. Volume Points accumulated by your Personal Preferred Customers will contribute to your Personally
Purchased Volume requirement. All volume achieved towards this qualification must be from orders purchased
directly from Herbalife.

You will automatically receive the 42% once the qualification has been achieved; and will be updated to this status
on the 1st of the month following the month your qualification volume was achieved.

A Qualified Producer is eligible to:

• Purchase at 42% immediately after qualifying for this status
• Earn a 42% Retail Profit
• Earn up to 27% Wholesale Profit (Commissions) on the Earn Base value from purchases made by your downline
Associates at a 25% or 35% discount, or Preferred Customers between 15% - 35% discount.

Once you achieve Qualified Producer status, all purchases will be at a discount of no less than 42% as long as your
Annual Services Fee remains current and paid.

Fully Qualified Supervisor

At the Supervisor status you will earn the highest discount of 50%, plus Retail and Wholesale Profit, and become
eligible to earn Volume Rebate (VR).

A Fully Qualified Supervisor is eligible to:

• Earn a 50% Retail Profit
• Earn up to 35% Wholesale Profit (Commission) on the Earn Base value from purchases made by your downline
Associates at a 25% - 42% discount, or Preferred Customers between 15% - 35% discount
• Earn VR of 1% to 5% on their first, second and third-level active Supervisor
• Attend special workshops and training sessions
• Qualify for special Supervisor recognition

Associates who achieved the level of Supervisors are often referred to as Associates or Herbalife Independent
Associates.

As a Supervisor, purchases may only be made by you directly from Herbalife.

Qualifying as a Supervisor
There are three ways to qualify as a Supervisor:
• One-Month Qualification: Achieve 4,000 Volume Points in one Volume Month (with a minimum 1,000 of those
4,000 Volume Points Unencumbered).
• Two-Month Qualification: 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.
• Accumulated Qualification: Achieve 4,000 Volume Points within 12 months (of which a minimum of three months
is required). You can use up to 2,000 Downline Volume Points with the remaining 2,000 as Personally
Purchased Volume. Volume Points accumulated by your Personal Preferred Customers will contribute to your
Personally Purchased Volume Point requirement.

India - Sales & Marketing Plan Page 13 of 26 Revision: May 2023

For all methods of Supervisor Qualification, once achieved, you are automatically updated to Supervisor status on
the 1st of the month following completion of your qualification.

Qualifying Supervisor
Eligibility for Temporary 50% Discount
Once you have achieved the required Volume Points toward Supervisor Qualification you will be considered a
Qualifying Supervisor until the 1st of the following month, when you will become a Fully Qualified Supervisor.
As a Qualifying Supervisor, you are eligible for a temporary 50% discount for the remainder of the Volume Month
in which your qualifying Volume Points were achieved.

Orders purchased at a 50% discount must be purchased directly from Herbalife.

The Volume from orders purchased at a Temporary 50% is considered Personally Purchased Volume for the
purchaser and Group Volume for the Fully Qualified Supervisor.

Matching Volume
Matching Volume is the Personal and Total Volume a Supervisor must have in order to validate the Supervisor
qualifications in your downline.

Matching Volume is how Herbalife verifies and validates the qualification of new Supervisors. Whenever a
Supervisor sponsors an Associate to the Supervisor position, the sponsoring Supervisor’s Total Volume must be at
least the same as the Total Volume of their downline Associate (s) qualifying within that same month. Without
adequate Matching Volume, the new Supervisor will be moved to the next upline Supervisor.

The following Matching Volume example illustrates the amount of Personal Volume and Total Volume that must be
achieved by the sponsoring Supervisor for the downline Associates who are qualifying for Supervisor. In this
example, “A” (the sponsoring Supervisor) must have at least 4,000 Personal Volume Points and at least 1,000
Group Volume Points in the month that “B” and “C” are qualifying for Supervisor. This volume obligation for the
Supervisor is considered to be their Matching Volume requirement.

Matching Volume Example

Matching Volume Requirement for Supervisor “A”
A
4,000 Personal Volume
Sponsoring
+ 1,000 Group Volume
Supervisor
= 5,000 Total Volume

B
1,000 Volume Points 1,000 Group
Qualifying =
@ Temporary 50% Discount Volume for “A”
Supervisor

C
4,000 Accumulated 4,000 Personal
Qualifying =
Volume Points Volume for “A”
Supervisor

Insufficient Matching Volume

As the first upline Fully Qualified Supervisor, if you do not have enough Volume in the qualifying month(s) to
substantiate your donwline’s Supervisor qualification you will be “short” Matching Volume. Herbalife will notify you
of the insufficient Volume and allow you to place a Matching Volume Order for the amount you are short. The
Member Services Department will be authorized to accept the Matching Volume Order for the appropriate month.

To place this volume, the order must be clearly identified a “Matching Volume Order for Month of ______________.”

Matching Volume Order

To receive proper credit for the Matching Volume Order, the order must be clearly identified as Matching Volume
Order for the appropriate month and year, with full payment included. A Matching Volume Order can only be
accepted by Herbalife if the Company has identified a Matching Volume problem and notified you accordingly, and
has authorized the Member Services Department to accept the order from you as the sponsoring Supervisor. This
order will be applied to the Volume Month specified.

India - Sales & Marketing Plan Page 14 of 26 Revision: May 2023

Appropriate adjustments will be made on Matching Volume order to your upline Volume Rebate and Production
Bonus receiving Supervisors. However, Volume Rebate points and TAB Team production Bonuses percentages
will not be adjusted when a Matching Volume Order is placed after the Volume Month in question. If multiple
occurrences of Matching Volume take place, as the Sponsoring Supervisor, you will not be paid the Volume Rebate
earnings for up to four months on the qualifying line and this earning will be paid to the next upline Volume Rebate
receiving Supervisor.

Failure to Match Volume

In order to avoid a penalty, you must place the Matching Volume Order once you have received notification from
Herbalife.

If you are short volume and fail to place an order to match that Volume, a Matching Volume Penalty will be assessed.
The penalty is that you will permanently lose the Supervisor who qualified the month in question and that
Supervisor’s downline.

Failure to Qualify as a Supervisor

If your sponsored downline becomes a Fully Qualified Supervisor before you do, you will have one year from the
date of your downline’s qualification to also become a Fully Qualified Supervisor.

If you do not become a Fully Qualified Supervisor within the one year following your downline’s Supervisor
qualification, you will permanently lose that downline to your first upline Supervisor at the end of your downline
Supervisor's first requalification year.

Example:

February 2014
Sponsor loses
08/01/2012 Qualified Downline
Downline Supervisor’s is Sponsor hasn’t
Qualification Month become a Fully
Qualified Supervisor

08/01/2012 – 01/31/2014

Sponsor’s Opportunity to Qualify for Supervisor

Supervisor Requalification
Once you become Supervisor status and above you must requalify your Supervisor status annually between
February 1 and January 31 to maintain your rights and privileges. The requalification requirements for this are
described below.

• One-Month Qualification: Achieve 4,000 Volume Points in one Volume Month (with a minimum 1,000 of those
4,000 Volume Points unencumbered).

• Two-Month Qualification: 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.)

• Twelve-Month Requalification: Accumulate 10,000 Unencumbered Total Volume Points over the 12-month
Requalification period.

Or,

• Accumulate 2,000 Unencumbered Total Volume Points over the 12-month requalification period.

When requalifying by accumulating 2,000 Unencumbered Volume Points between February 1 and January 31 you
will retain your Supervisor status and 50% buying privileges. However, any downline lineage that includes a
Supervisor will be lost and moved to your next upline Fully Qualified Supervisor.

You will automatically requalify as a Supervisor each year if the volume requirements are met during the qualification
period. As a reminder, you have the advantage of receiving a 50% discount on your requalification orders.

India - Sales & Marketing Plan Page 15 of 26 Revision: May 2023

If you do not complete your Supervisor Requalification you will lose all rights and privileges of a Supervisor, including
the loss of any lineage that includes a Supervisor. In this case, the entire downline lineage will be moved to your
next eligible upline Fully Qualified Supervisor.

As a Supervisor if you fail to requalify each year by January 31 you will be demoted to the position of Qualified
Producer.

Three Levels of Success

The people you personally sponsor as Herbalife Associates are known as your First Level. They may be friends or
family or business associates, or even people you have just met. You can personally sponsor as many people as
you want in any country in which Herbalife officially operates. When these Associates in your First Level sponsor
other Associates those new Associates become your second level. When your Second Level, in turn, sponsor
others, those they sponsor become the third level in your Herbalife organization.

By training your Associates and encouraging them to follow your example, some may choose to set their goals and
qualify at the Supervisor level. As a Supervisor with Fully Qualified or Qualifying Supervisors in your first three
levels, you may qualify to earn Volume Rebate between 1% to 5% of your Organizational Volume.

India - Sales & Marketing Plan Page 16 of 26 Revision: May 2023

VOLUME REBATE INCOME
Payment of Volume Rebates
Your Volume Rebate percentage is based on your Total Volume for each month, if your Volume Points are less
than 500 Volume Points, then no Volume Rebates are earned. If you produce 2,500 Volume Points or more, then
a maximum 5% is earned on three active downline levels. The following Volume Rebate scale shows the volume
requirements that you must meet as a Supervisor every month to earn Volume Rebates.

Volume Rebate Scale

Your Total Volume Rebate

Volume Points Earning %

0 – 499 0%

500 – 999 1%

1,000 – 1,499 2%

1,500 – 1,999 3%

2,000 – 2,499 4%

2,500 plus 5%

Volume Rebates are paid as follows:

In the following example, at the maximum 5%, your Volume Rebate is calculated on 30,000 Organizational Sale
Volume, which gives you 1,500 Volume Rebate Points. Volume Rebate Points are used for qualification purposes.
Keep in mind, earnings are calculated on the Earn Base value of the products in the country from which the product
is ordered. In certain countries, these Volume Rebate earnings are converted to your local currency.

Volume Rebate Example

2,500 Your Total Volume Rebate
YOU =
Volume Points 1,500 Volume Rebate Points

First-Level 10,000
= 5% = 500 Volume Rebate Points
Supervisor Volume Points

Second-Level 10,000
= 5% = 500 Volume Rebate Points
Supervisor Volume Points

Third-Level 10,000
= 5% = 500 Volume Rebate Points
Supervisor Volume Points

Additional Requirements
As a Supervisor who meets the specified requirements to earn Volume Rebates you must also comply with
Herbalife’s 10 Retail Customers Rule and the 70% Rule, to earn and receive both Volume Rebates and Production
Bonus. You must confirm your adherence to these requirements by submitting the Earnings Certification Form each
month. If you fail to comply with either of these rules, the Volume Rebates and Production Bonus will not be paid to
you.

Volume Rebate Roll-Up

As a Supervisor, you also have the opportunity to earn Volume Rebate Roll-Ups. Volume Rebate Roll-Ups are paid
to the appropriate qualified upline Supervisor(s) when any downline Volume Rebate contributing Supervisor earns
less than the maximum 5% payout. This “roll-up” percentage is the difference between the 5% maximum Volume
Rebate and the actual percentage earned by the downline Volume Rebate contributing Supervisor.

To be eligible for Volume Rebate Roll-Ups, as a Supervisor you must be at the maximum 5% earning level, based
on the Volume Rebate Sliding Scale. You may not earn more than 5% Volume Rebate on any order.

India - Sales & Marketing Plan Page 17 of 26 Revision: May 2023

 Volume Rebate Roll-Up Example
Earns 5% Volume Rebate
2,500
On First, Second and Third-Level Supervisors
YOU Total Volume Points =
5% Volume Rebate Earns 4% Volume Rebate Roll-Up on Fourth-Level
Supervisor

2,500
First-Level Earn 5% Volume Rebate
Total Volume Points =
Supervisor On Second, Third and Fourth-Level Supervisors
5% Volume Rebate

2,500
Second-Level Earn 5% Volume Rebate
Total Volume Points =
Supervisor On Third and Fourth-Level Supervisors
5% Volume Rebate

500
Third-Level Earn 1% Volume Rebate
Total Volume Points =
Supervisor on Fourth-Level Supervisor
1% Volume Rebate

1,000
Fourth-Level Supervisor does not have downline to earn Volume
Total Volume Points
Supervisor Rebates
No Volume Rebate

World Team
Qualifying as a World Team member is an important step in your Herbalife business. You have demonstrated your
success by qualifying for this prestigious team. World Team is your launching pad to move on to qualifying for the
TAB Team.

To Qualify:
• Achieve 10,000 Total Volume Points in one Volume Month after becoming a Qualifying Supervisor or a Fully
Qualified Supervisor.

• OR As a Fully Qualified or Qualifying Supervisor, achieve 2,500 Total Volume Points, each Volume Month, in
four consecutive months.

• OR Achieve 500 Volume Rebate Points in one Volume Month.

Providing you have achieved your Supervisor qualification, after achieving the required Volume or Volume Rebate
Points you will be updated to World Team status on the first of the following month.

You Receive:
• All the benefits of a Supervisor
• A World Team pack, containing a personalized World Team Certificate and a World Team pin

Plus You Become Eligible to:

• Attend special planning and training sessions targeted to accelerate your progress to TAB Team

TAB Team
Successful Supervisors have the opportunity to proceed to the higher scale of the Herbalife Sales & Marketing Plan,
which is the Top Achievers Business (TAB) Team. There are three levels within the TAB Team: Global Expansion
Team (GET), Millionaire Team and President’s Team.

Achieving TAB Team status is a prestigious recognition within the Herbalife Sales & Marketing Plan. TAB Team
status indicates that the Supervisor has developed a strong, active downline Supervisor base and has demonstrated
a willingness to take a leadership role. Upon achieving TAB Team status you will be eligible to receive additional
benefits and earn leadership status. Reaching each new level enables you to participate in advanced training, earn
generous Production Bonuses and qualify for exceptional awards and incentives.

India - Sales & Marketing Plan Page 18 of 26 Revision: May 2023

TAB Team Production Bonus
As a TAB Team, you have the potential to receive 2% to 7% Production Bonus on your entire downline
organization’s activity on a monthly basis. It is necessary to submit a completed TAB Team Production Bonus
Acknowledgment Form and also comply with Herbalife’s 10 Retail Customers Rule and the 70% Rule to be eligible
for Production Bonus payments. The TAB Team Production Bonus is, in part, a reward for your leadership and
undivided loyalty. (Please refer to the “Sample Forms” section of this book.) The Acknowledgment Form must be
accepted and approved by Herbalife in order to receive payments; the form will be sent to you by Herbalife during
your qualification period. (See individual team qualifications for specific Production Bonus qualifications.)

Annual Bonus
A bonus payment representing up to a percentage of Herbalife’s worldwide sales is distributed annually among
Herbalife’s eligible President’s Team members in recognition of their outstanding performance in advancing sales
of Herbalife products. (Refer to “Mark Hughes Bonus Award Rules” distributed to President ‘s Team members, and
available online at https://www.myherbalife.com/en-in/.)

Vacation and Training Events

Reward, recognition and training are of the utmost importance at Herbalife. As an Herbalife Associate you have the
opportunity to be eligible to qualifying for various Vacation and Training Events (when offered). Vacations and
Training Events are both fun and informative and are held in exciting locations around the world; these events will
teach you how to meet your goals, increase your earning power and build an international business. You’ll learn all
this while enjoying an exciting, adventurous vacation.

TAB – The following levels represent both recognition and earning

levels within the TAB team.

Global Expansion Team (GET)

To Qualify:
Achieve 1,000 Volume Rebate Points each month for three consecutive months; the first of the following month you
will be updated to Global Expansion Team (GET)

Benefits
• All the benefits of a Supervisor
• A Global Expansion Team Recognition Certificate and pin
• Eligible to immediately earn up to 2% monthly TAB Team Production Bonus on your downline organization’s
volume. (Please refer to the “TAB Team Production Bonus Payout Guidelines” section in this book.) Upon
completion of your qualification, you will receive a detailed communication that further specifies your monthly
TAB Team Production Bonus earning requirements
• Eligible to qualify for Company training event promotions.
• Eligible to participate in special advanced trainings.
• Eligible to participate in special conference calls.

Millionaire Team
To Qualify:
Achieve 4,000 Volume Rebate Points each month for three consecutive months; the first of the following month you
will be updated to Millionaire Team.

Benefits
• All benefits of a Supervisor
• A Millionaire Team Certificate and pin
• After a waiting period of 2 months, you will be eligible to earn up to 4% monthly TAB Team Production Bonus
on your downline organization’s volume. (Please refer to the “TAB Team Production Bonus Payout Guidelines”
section in this book.) Upon completion of your qualification, you will receive a detailed communication that
further specifies your monthly TAB Team Production Bonus earning requirements
• Eligible to qualify for Company training event promotions.
• Eligible to participate in special conference calls.

India - Sales & Marketing Plan Page 19 of 26 Revision: May 2023

President’s Team
To Qualify:
• President’s Team: Achieve 10,000 Volume Rebate Points in three consecutive months. After a waiting period
of three months, earn a 2% to 6% Production Bonus.

President’s Team Earning levels

• 20K President: Achieve 20,000 Volume Rebate Points in three consecutive months. After a waiting period of
three months, earn a 2% to 6.5% Production Bonus.
• 30K President: Achieve 30,000 Volume Rebate Points in three consecutive months. After a waiting period of
three months, earn a 2% to 6.75% Production Bonus.
• 50K President: Achieve 50,000 Volume Rebate Points in three consecutive months. After a waiting period of
three months, earn a 2% to 7% Production Bonus.

The first of the month following completion of your qualification, you will be updated to the appropriate President's
Team level based on your qualification.

Benefits
• All benefits of a Supervisor
• A prestigious President’s Team Certificate and pin
• After a waiting period of three months, you will be eligible to earn up to 7% TAB Team Production Bonus based
on your qualification level. (Please refer to the “TAB Team Production Bonus Payout Guidelines” section in this
book.) Upon completion of your qualification, you will receive a detailed communication that further specifies
your monthly TAB Team Production Bonus earning requirements.
• Eligible to qualify for a special President’s Team vacation and training event even promotions.
• Eligible to participate in special conference calls and advanced trainings.

Awards Policies
Herbalife delivers recognition awards (such as, but not limited to) pins, plaques, and jewelry in a timely manner to
Associates that have achieved such recognition.

In the event an award is not received, the Member Services Department should be contacted in writing (via email
or at the postal address below). The request must be received by Herbalife no later than six (6) months after the
qualification date associated with the Award.

Awards Replacement and/or Repair Policy:

Herbalife strives to provide the highest quality awards available. In the event that an award was received defective
or otherwise damaged, you may return the item(s) for free replacement within six (6) months of the original
qualification date associated with the award.

After this six-month period, you may return damaged item(s) to be professionally refurbished or repaired which shall
be at their cost paid through an earning deduction form. Any deviations from this policy shall be at the sole and
absolute discretion of Herbalife.

Request may be submitted by phone or in writing to:

HERBALIFE INTERNATIONAL INDIA PVT. LTD

RMZ Pinnacle, No. 15 Commissariat Road
Bangalore – 560025, Karnataka

or

+91-080-40311444.

India - Sales & Marketing Plan Page 20 of 26 Revision: May 2023

PRESIDENT’S TEAM PLUS
President’s Team Plus Awards and Recognition

Executive President’s Team

One Diamond To qualify you must have one first-line, Fully Qualified
President’s Team member in any line of your downline
organization

Senior Executive President's Team

Two Diamonds To qualify you must have two first-line, Fully Qualified
President's Team members in two separate lines of your
downline organization.

International Executive President's Team

Three Diamonds To qualify you must have three first-line, Fully Qualified
President’s Team members in three separate lines of your
downline organization.

Chief Executive President’s Team

Four Diamonds To qualify you must have four first-line, Fully Qualified
President’s Team members in four separate lines of your
downline organization.

Chairman’s Club
Five Diamonds To qualify you must have five or more first-line, Fully Qualified
President’s Team members in five or more separate lines
of your downline organization

Founder’s Circle
Ten Diamonds To qualify you must have 10 or more first-line, Fully Qualified
President’s Team members in 10 or more separate lines of
your downline organization.

Presidential Plus Awards

The Presidential Plus Awards are based on production (January through December Volume Months).

Baume & Mercier Watch 250,000 Volume Rebate Points

Marquis Diamond Ring 500,000 Volume Rebate Points

Piaget Gold and Diamond Watch† 750,000 Volume Rebate Points

Piaget Diamond Watch† 1,000,000 Volume Rebate Points

†
Actual watch model may vary based on availability at time of qualification.

India - Sales & Marketing Plan Page 21 of 26 Revision: May 2023

Qualifications by Team Level
Following is an easy-to-understand graph of qualifications for each team level.

Qualifications Waiting and Earning Periods

Achieve
required
Volume Rebate
Waiting
Team Points each Earning Period
Period
month for 3
consecutive
months

Global Expansion Team (GET) 1,000 None 12 months from Fully Qualified/Requalified Date

Millionaire Team (MILL) 4,000 2 months 12 months after waiting period is complete

President’s Team (PRES) 10,000 3 months 12 months after waiting period is complete

President's Team20K (20K) 20,000 3 months 12 months after waiting period is complete

President's Team30K (30K) 30,000 3 months 12 months after waiting period is complete

President's Team50K (50K) 50,000 3 months 12 months after waiting period is complete

Production Bonus Earning Percentage Requirements

Once you have qualified and/or requalified for a particular TAB Team earning percentage level, the following must
be achieved in each of the earning months to receive a TAB Team Production Bonus (“PB” on the following table)
during your earning period:

Volume Volume Volume Volume Volume Volume

Rebate Rebate Rebate Rebate Rebate Rebate
Max Total
Points Points Points Points Points Points
Earning Volume
Required Required Required Required Required Required
% Level Points for for for for for for
Required Max 2% Max 4% Max 6% Max 6.5% Max 6.75% Max 7%
PB PB PB PB PB PB

2% 3,500 1,000

4% 3,000 1,000 4,000

6% 2,500 1,000 4,000 10,000

6.5% 2,500 1,000 4,000 10,000 20,000

6.75% 2,500 1,000 4,000 10,000 20,000 30,000

7% 2,500 1,000 4,000 10,000 20,000 30,000 50,000

India - Sales & Marketing Plan Page 22 of 26 Revision: May 2023

TAB TEAM PRODUCTION BONUS
PAYOUT GUIDELINES
To help you better understand the TAB Team Production Bonus [Production Bonus] Payout, we’ve put together the
following guidelines.

• When a TAB Team in your downline earns a Production Bonus at a lower % level than you, you will earn the %
difference on their downline. For example, if you earn a Production Bonus at the 6% level and your downline
TAB Team earns a Production Bonus at the 2% level, you will earn 6% on that TAB Team and the remaining
4% Production Bonus on their downline organization down to the next Production Bonus earner. Your
Production Bonus earnings below those downline Production Bonus earners will depend upon the earning % of
each Production Bonus earner.
• When a downline TAB Team earns Production Bonus at the same % level as you, you will earn on that TAB
Team but you will be unable to earn a Production Bonus on their downline. This is commonly referred to as
“Cut-Off”.
• When a downline TAB Team earns a Production Bonus at a higher level than you, you will be unable to earn a
Production Bonus on that downline and their organization. This is commonly referred to as “Blocking”.
• Remember, to be eligible to receive the Production Bonus, your completed TAB Team Production Bonus
Acknowledgment Form must have been accepted and approved by Herbalife, and all other terms and conditions
must be met.

Production Bonus Eligibility Period Examples

Qualification Period Global Expansion Team (GET)

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

1,000 1,000 1,000

Volume Volume Volume
Eligible to earn 2% PB from April to March
Rebate Rebate Rebate
Points Points Points

Requalification Period from April to March

Qualification Period Millionaire Team

AP
JAN FEB MAR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
R

4,000 4,000 4,000

Volume Volume Volume Waiting
Eligible to earn 4% PB from June to May
Rebate Rebate Rebate Period

Points Points Points

Requalification Period from April to March

Qualification Period President’s Team

AP
JAN FEB MAR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
R

10k, 20k, 30k, 50k Waiting Period Eligible to earn 6% PB from July to June
Volume Rebate Points
Requalification Period from April to March
x 3 months

Production Bonus Requalification

To continue earning your Production Bonus, you need to requalify at your team level or above. Here’s how you do
just that:

Requalification
To remain at your earning level, simply achieve three consecutive months of Volume Rebate Point requirements
(same as original qualification) every year during your requalification period.

India - Sales & Marketing Plan Page 23 of 26 Revision: May 2023

Please note: When you qualify for any Team status, you retain that status regardless of your Production Bonus
earning % level (unless you achieve a higher TAB Team status or are demoted as a Supervisor).

If you don’t requalify for any Production Bonus earning % level during your last requalification period and later
qualify for the same level, you will need to observe the waiting period before you start earning at that level.

Requalification Period
To allow you ample time to requalify and continue to earn your Production Bonus, you have a 12-month time frame
from your last Team qualification/requalification date.

India - Sales & Marketing Plan Page 24 of 26 Revision: May 2023

GLOSSARY OF TERMS
The following terms are used throughout this text. Some have specific Herbalife connotations, so please become
familiar with them and make them a part of your vocabulary as quickly as possible.

Blocking: As a Production Bonus earner, when you have a Production Bonus earner below you earning at a higher
Production Bonus earning percentage, you will be “blocked” from earning on that Production Bonus earner as well
as their downline organization.

Commission (Wholesale profit): The difference between the discounted price paid by the Sponsor and the price
paid by the downline. It is also known as Wholesale Profit.

Customer: Anyone who is not an Herbalife Associate who purchases Herbalife products at retail price.

Cut Off: As a Production Bonus earner, when you have a downline earning an equal Production Bonus percentage,
you will be able to earn your eligible Production Bonus on the sales activity down to and including that earner, but
will not earn Production Bonus on any lineage below.

When you have a downline earning a lower Production Bonus percentage, you will earn your eligible Production
Bonus on the sales activity down to and including the earner plus you will earn the percentage difference on their
downline.

Discount Scale: An earned discount of 35% to 50% which is allowed after reaching specified sales goals.

Associate: Any Herbalife Independent Associates *.

* Associates may be referred to as Distributors in some countries.

Downline: All Preferred Customers and Associates personally sponsored by you as well as all other persons
sponsored by your Associates.

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

First-Level Associate: All Associates you personally sponsor are considered your First Level.

Fully Qualified Supervisor: A Associate who has met all the requirements for Supervisor qualification and is now
entitled to all Supervisor privileges.

Lineage: All Preferred Customers and Associates who are part of one organization as a result of sponsoring or
being sponsored.

Associate: Anyone who submits to Herbalife a valid and complete Associateship Application and whose Application
has been accepted by Herbalife.

Personal Preferred Customer: All Preferred Customers you personally refer are considered your Personal
Preferred Customer.

Preferred Customer: Anyone who submitted a Preferred Customer Application and Agreement and purchases
Herbalife products for their household’s personal consumption at a discount directly from the company. Preferred
Customers cannot sell products, sponsor Associates or engage in the Herbalife business in any way. However,
Preferred Customers may convert to Associates.

Production Bonus: A bonus of 2% to 7% earned on your entire downline organization's activity paid to eligible
TAB Team.

Profit, Retail: The difference between the discounted product price paid by a Associate and the retail price paid by
a Retail Customer.

Profit, Wholesale: The difference between the discounted price paid by the Sponsor and the price paid by the
downline. Also known as Commission.

Qualified Producer: A Associate who accumulates 2,500 Personally Purchased Volume Points within 1 to 6
months and is entitled to purchase at a 42% discount. This status can be reached by utilizing up to 1,500 Downline
Volume Points, with the remaining 1,000 as Personally Purchased Volume.

Qualifying Month: The month in which a Associate meets the requirements for a specific qualification.

Qualifying Supervisor: A Associate who has achieved the required Volume Points toward Supervisor Qualification
in their qualifying month. Assuming that all qualifications are met, they will be recognized as a Fully Qualified

India - Sales & Marketing Plan Page 25 of 26 Revision: May 2023

Supervisor on the first of the following month. A Qualifying Supervisor is eligible to purchase from Herbalife at a
temporary 50% discount.

Volume Rebate: A monthly payment ranging from 1% to 5% made to Fully Qualified Supervisors on the sales
activity of their three levels of active downline Supervisors.

Volume Rebate Points: Used for qualification purposes, this is the sum of a Supervisor’s Organizational Volume
times their Volume Rebate earnings percentage.

Volume Rebate Roll-Ups: Herbalife pays Supervisors the full 5% for each of three active downline Supervisor
levels. Volume Rebate Roll-Ups are paid to the appropriate upline Supervisor(s) when a downline Supervisor earns
less than the maximum 5% Volume Rebate payout per level. In these instances, the difference between 5% and
the Supervisor’s earning percentage (1% to 4%) results in the Volume Rebate Roll-Ups.

Senior Consultant: A Associate who has qualified to purchase at 35% or 42% discount.

Split Commission: The commission earned from a downline who is purchasing at a lower discount than your
discount at the end of the volume month. A commission of up to 25% will be split amongst the eligible Senior
Consultant, Qualified Producer, Qualifying Supervisor and Fully Qualified Supervisor in the purchasing Associate’s
upline.

Sponsor: A Associate who brings another individual into Herbalife.

Success Builder: A Associate who places an order of 1,000 Volume Points at 42% discount.

Supervisor’s Personal Organization: Includes all Associates in the Supervisor’s downline who are Preferred
Customers and Associates.

TAB Team: A Associate who has met all the requirements for GET, Millionaire Team or President’s Team.

10 Retail Customers Rule: A Associate must make sales to at least 10 separate Retail Customers each month to
qualify and receive Volume Rebates and Production Bonus.

The 70% Rule: In any given month, a Associate must sell at least 70% of the total value of Herbalife products they
purchased each volume month in order to qualify to earn and receive Volume Rebates and Production Bonus for
that month’s business.

Upline Organization: Your Sponsor and their Sponsor and their Sponsor’s Sponsor, and so on.

Volume, Downline: Volume achieved on orders placed by your Preferred Customers and non-Supervisor downline
directly from Herbalife.

Volume, Encumbered: Volume being used by your downline for Supervisor qualification purposes.

Volume, Group: Orders purchased at a temporary 50% discount, by Qualifying Supervisor(s) in a Supervisor’s
personal organization.

Volume, Matching: The Total Volume a sponsoring Supervisor must have in a given month to equal or exceed the
volume achieved by their downline Associate (s) who are qualifying for Supervisor.

Volume, Organizational: The accumulated volume amount on which a Supervisor earns Volume Rebates.

Volume, Personal: The volume from orders purchased by you as a Fully Qualified Supervisor and all others in your
downline organization, excluding any 50% orders by Qualifying or Qualified Supervisors.

Volume, Personally Purchased: The volume from orders purchased directly from Herbalife using your Herbalife
Identification Number.

Volume, Total: The combined total of Personal Volume plus Group Volume.

Volume, Unencumbered: Volume not being used by your downline for Supervisor qualification purposes.

Volume Point: A point value assigned to each Herbalife product that is equal in all countries.

India - Sales & Marketing Plan Page 26 of 26 Revision: May 2023