Marketing Plan Enhancements QUESTIONS & ANSWERS

General Information:

Q1: What are the new enhancements to Herbalife’s marketing plan?

A1: To help everyone achieve even greater success from Herbalife’s business opportunity,
we are introducing:
• the level of Qualified Producer;
• a new method to qualify to Supervisor by accumulating 5,000 Personally
Purchased Volume Points on orders you are placing with the company within
12 months (with a minimum of 3 months required); and
• a simplified Distributor Discount Scale
With these enhanced marketing methods and incredible momentum leading up to our
30th anniversary celebration in 2010, there’s never been a better time than right now
for your Herbalife success.

Q2: What date will the marketing plan enhancements launch?

A2: The enhancements to our marketing plan are effective as of November 1, 2009, but
you can begin your qualifications towards Qualified Producer and the 5,000 VP
accumulated Supervisor Qualification by using Volume Points from orders you place
with the company in October 2009 Volume Month!
*Note: Distributors in countries where the 5000 VP accumulated SP Qualification was test
piloted may use PPV from the past 12 months towards their 5000 VP Supervisor
Qualification only – not towards their QP Qualification.
The countries are Russia & CIS, Israel, Chile, South Africa, Botswana, Lesotho, Namibia,
Swaziland and Zambia.

Q3: What is Personally Purchased Volume?

A3: Personally Purchased Volume (PPV) is the Volume from the orders you have placed
directly from the Company using your own Herbalife Identification Number. Personally
Purchased Volume is the Volume on which the Qualified Producer and the
accumulative 5,000 VP Supervisor Qualifications are based.

Q4: Will the Volume I’ve accumulated from purchases made directly from my
Sponsor or Supervisor (field orders) count towards my qualification for
Qualified Producer or the accumulative 5,000 VP Supervisor Qualification?
A4: Unfortunately, field orders purchased by you from your Sponsor or Supervisor will not
contribute towards the Qualified Producer or the accumulative 5,000 VP Supervisor
qualifications. To qualify for Qualified Producer and the accumulative 5,000 VP
Supervisor method, the order volume must come from the orders you have placed
directly from the Company using your own Herbalife Identification Number.
Marketing Plan Enhancements Qualified Producer:
Q5: What is a Qualified Producer?
A5: When you buy directly from Herbalife and achieve 2,500 Volume Points within 1-3
months, you become a Qualified Producer.
As a Qualified Producer:
• You will be eligible for a 42% discount which you will be able to maintain as long
as you retain your Qualified Producer status;
• You will earn an immediate 42% retail profit when you sell at the suggested retail
price;
• You will be eligible to receive split commissions on purchases with Herbalife made
by any downline Distributors made at 25% or 35% discount.
*Note: Qualified Producers earn split commission down to the next downline Qualified
Producer.

Q6: What are Split Commissions?

A6: Split Commission is the commission earned from a downline Distributor below a
Qualified Producer who is purchasing at less than 42% discount. A commission of 7%
or 17% is first paid to the first upline Qualified Producer and the remaining 8% is paid
to the first upline Fully Qualified Supervisor.

Q7: As a Qualified Producer, will I be required to purchase a certain amount of

Volume to maintain my 42% discount every month?
A7: No, once you have achieved Qualified Producer status you will be at a 42% discount.
However you do need to requalify annually to maintain your Qualified Producer status.
Marketing Plan Enhancements Q8: Do I need to requalify my Qualified Producer status annually?
A8: Yes, you must requalify your Qualified Producer status annually. The requalification
period is from February 1st – January 31st of the year following your qualification. You
will have no less than 12 months to requalify your status.
To requalify your Qualified Producer status, you must accumulate 2,500 Personally
Purchased Volume Points within 1-3 consecutive months during your requalification
period. The Volume Points must come from orders you have placed directly from the
Company using your own Herbalife Identification Number.

Q9: What happens if I do not requalify my Qualified Producer status?

A9: If you do not requalify your Qualified Producer status, the following will occur:
• You will return to Senior Consultant at a 35% discount;
• You will no longer be eligible to receive a split commission check from Herbalife.
*Note: Qualified Producers that do not requalify will not lose lineage.

Q10: Is there a minimum amount I have to earn before a payment will be

issued?
A10: Yes, you must have a minimum of $25 USD (or local equivalent) before Herbalife
issues local earnings payment. A minimum of $50 USD must be met before Herbalife
will issue your OC earnings payment. This applies to all payment methods (check,
direct deposit, wire transfer, etc.). Once your accumulated earnings reach this
threshold, your earnings will be issued.

Q11: Are Qualified Producers required to pay the Annual Processing Fee (APF)?
A11: Yes, all Distributors are required to pay the Annual Processing Fee. As a Qualified
Producer, you will pay the non-Supervisor fee of $15 USD (or local equivalent).

Q12: As a Qualified Producer, what will happen if I do not pay the APF on time?
A12: It’s important to pay your APF on time so that no interruption of your business occurs.
If your APF is not paid on time, your Distributorship will be deleted. After deletion, if
you decide to pay your fee and become reinstated, you will be a Senior Consultant at
35% discount.
*Note: Any loss of lineage would not be reinstated.
Marketing Plan Enhancements 5000 VP Accumulative SP Qualification:

Q13: How do I qualify to Supervisor using the accumulative 5,000 VP Supervisor

method?
A13: Beginning with October 2009 Volume, you may qualify to Supervisor using this
method by accumulating 5,000 Personally Purchased Volume Points within 12 months
with a minimum 3 months required.

Q14: Can I still qualify to Supervisor using the One Month or Two Month
methods?
A14: Yes, you may still qualify to Supervisor using the One Month and Two Month
Supervisor Qualification methods. The accumulative 5,000 VP Supervisor Qualification
is an additional option for achieving your Supervisor Qualification.

Q15: If I qualified to Supervisor using the 5,000 accumulative VP method, what

will I need to do to requalify?
A15: All Supervisors must requalify their status annually between February 1st and January
31st of every year by achieving one of the following:
• One Month Qualification: Achieve 4,000 Volume Points in one Volume Month (with
a minimum of 1,000 of those 4,000 Volume Points Unencumbered*).
• Two Month Qualification: Achieve 2,500 Volume Points for two consecutive months
(with a minimum of 1,000 of those 2,500 Volume Points Unencumbered* for each
month).
• Accumulate 4,000 Unencumbered* Volume Points.
* Unencumbered Volume is Volume that is not being used by anyone in your downline
for qualification or Requalification purposes.
*Note: If you requalify using the 4,000 Unencumbered cumulative Volume Point
method, your downline lineages that contain Supervisors below you will be moved to
your upline Supervisor.

Q16: Does the accumulative 5,000 VP Supervisor Qualification method replace

the 4,000 accumulative Supervisor Requalification method?
A16: No, the Supervisor Requalification methods will remain the same. The 5,000 PPV
method is to qualify for Supervisor level, the 4000 VP unencumbered method is to
maintain this level, however you will not retain and Supervisor legs you have in your
downline via this method.
Marketing Plan Enhancements Q17: I am a Distributor and I have a downline who has placed orders directly
with Herbalife. Can I use this Volume to qualify to Supervisor also using the
5,000 Supervisor Qualification method?
A17: To qualify to Supervisor using the 5,000 Accumulated method each Distributor must
place their own orders and you must accumulate 5,000 Personally Purchased Volume
Points within 12 months with a minimum 3 months required.

Q18: I am a Distributor and I have a downline who has placed orders directly
with Herbalife. Can I use this Volume to qualify to Supervisor also using the
One Month or Two Months method?
A18: Yes, the qualification for the One Month and Two Months methods remain unchanged
and are the following:
• One Month Qualification: Achieve 4,000 Volume Points in one Volume Month (with
a minimum of 1,000 of those 4,000 Volume Points Unencumbered*).
• Two Month Qualification: Achieve 2,500 Volume Points for two consecutive months
(with a minimum of 1,000 of those 2,500 Volume Points Unencumbered* for each
month).
*Note: PPV placed by NON Supervisors and used for the Qualified Producer and 5,000
Accumulated Volume Points qualification are not considered Encumbered to the upline
Supervisor.

Q19: I have just achieved 5,000 accumulative Volume Points. Am I now eligible
for a Temporary 50% discount?
A19: In order to be eligible to purchase at a Temporary 50% discount, you must
accumulate 4,000 Volume Points in one Volume Month. Once you do, at the
beginning of next month you will be updated to a Fully Qualified Supervisor and you
will be eligible for 50% discount. This remains unchanged.

Q20: Can I use Personally Purchased Volume from my QP qualification towards

the accumulative 5,000 VP Supervisor qualification?
A20: Yes, if you’ve already achieved your Qualified Producer qualification, keep going! The
personally purchased volume that you have used towards your QP qualification can
contribute to your accumulative 5,000 PPV VP Supervisor qualification as long as it is
within a 12 month period.
Examples:
Marketing Plan Enhancements Q21: Can I achieve 5,000 VP Supervisor Qualification in line with my downline?
A21: In-line qualifications with your organization are not possible for the 5,000 VP
Supervisor method as this is a qualification that is achieved from the orders you are
placing directly from the company using your own Herbalife Identification Number.
However, the unencumbered volume from your downline may still be used towards
the One and Two month Supervisor qualification methods.
OCTOBER NOVEMBER

4000 PV (A+B+B1)
FQS 0 GV FQS
4000 TV

FQS A is now a fully qualified

A Supervisor as of November 1st.
2000 PPV + 2000 unencumbered A
2000 PPV VP from B+B1 can be used towards: 2000 PV (B+B1)
- One Month Supervisor qualification 0 GV
2000 TV

B B1 B B1
1000 PPV 1000 PPV 1000 PPV 1000 PPV

1000 PPV can be used towards: 1000 PPV can be used towards: Distributor B has now accumulated Distributor B1 has now accumulated
- Qualified Producer qualification - Qualified Producer qualification 2000 PPV (October and November) 2000 PPV (October and November)
- 5000 Accumulated Supervisor - 5000 Accumulated Supervisor that can be used towards: that can be used towards:
qualification qualification - Qualified Producer qualification - Qualified Producer qualification
- 5000 Accumulated Supervisor - 5000 Accumulated Supervisor
qualification qualification

Q22: I understand that matching volume is not required for the 5,000 VP
accumulated Supervisor Qualification. Is this correct?
A22: Yes, that is correct since most Distributors qualifying with this method will be part time
daily consumption Distributors. Due to the length of the qualification (up to 12 months)
and the fact that they will have relatively low volume each month, the chances of this
volume being utilized for the traditional Supervisor qualification methods is low. Due to
this, the volume will remain unencumbered to the FQS.
Remember, only the volume purchased by a Supervisor or by a downline Distributor in
the same line can be used to qualify a Distributor via the One Month or Two Consecutive
Month Supervisor qualification method.
When a Distributor purchases directly from Herbalife using their ID#, this is considered
Personally Purchased Volume (PPV) to the Distributor and it is considered Personal
Volume for their first upline Supervisor.
To qualify for the Qualified Producer (2500 PPV within 1 to 3 months) or 5K Supervisor
Qualification (5000 PPV within 12 months, with a 3 month minimum required), all orders
must be placed directly with Herbalife. The volume for these (QP and 5K SP)
qualifications is considered unencumbered volume to the first upline Supervisor.
Matching Volume requirement will be applied only to the one month (4000 volume points)
and two month (2500 volume points in 2 consecutive months) Supervisor qualifications.
Marketing Plan Enhancements Distributor Discount Scale:
Q23: With the marketing plan enhancements, what discounts will remain?
A23: Beginning November 1, 2009, regardless of the volume month, we will streamline our
discount scale to four discounts:
• 25%
• 35%
• 42%
• 50%

*Note: Once you have qualified for Senior Consultant the following Monthly Discount Scale
will apply:
35% = 0 – 1,999 Volume Points
42% = 2,000 – 4,000 Volume Points
42% = 1,000 in One order = Success Builder

Online Tools and Support:

Q24: Will there be a tracking site online to track my Qualified Producer or 5,000
VP qualifications?
A24: Yes, you may track your own qualification towards Qualified Producer and 5,000 VP
Supervisor Qualification at MyHerbalife.com in the My Account “Overview” and “Volume”
sections.
Marketing Plan Enhancements My Account - Overview

My Account - Volume

Q25: How can I tell if my downline is close to achieving Qualified Producer or

5,000 VP Supervisor Qualification?
A25: As of November 1st, Supervisors who subscribe to BizWorks Downline or Complete
package can track their downline’s qualifications and receive real time reports with the
information of their downline who are close to achieving Qualified Producer qualification
or 5,000 VP accumulated Supervisor Qualification.
• From the BizWorks Overview page, under “Your Organization Activity” you can
access the report titled “Distributor Organization Milestone Report”.
*Note: Your Distributor Organization will include only those Distributors in your
personal lineage who contribute to your Total Volume.