g n i t e k r a M & Sales s t n e m e c n a Plan Enh
Confiden'al and Proprietary
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
Launch
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SALES & MARKETING PLAN ENHANCEMENTS:
TOPICS
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SUPERVISOR QUALIFICATION/REQUALIFICATION LAUNCH
Nov 2014
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FIRST ORDER PROGRAM
Feb 2015
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FIELD SALES RELATING EXPERIENCE QUALIFICATION
Feb 2015
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TRANSITION PERIOD
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SENIOR CONSULTANT COMMISSIONS
Nov 2014 – Feb 2015 Dec 2014
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SALES & MARKETING PLAN ENHANCEMENTS:
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LAUNCH on NOVEMBER 15, 2014!
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SUPERVISOR QUALIFICATION - 4,000 VOLUME POINTS IN ONE MONTH or TWO MONTHS or 3 to 12 MONTHS
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QUALIFIED PRODUCER – up to 1,500 Downline Volume
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The New Supervisor one and two month qualifications will exclude any field sales from the Supervisor sponsor
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On November 15, Members will be updated to Supervisor as of November 1 if they achieved the new TWO month or 3-12 month Supervisor Qualifications by the end of October 2014 based on purchases with Herbalife! 3
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS:
One Month Qualification: Accumulate 4,000 Volume Points in one month with at least 1,000 Unencumbered Volume
Accumulate 4,000 Volume Points in one month with at least 1,000 Unencumbered Volume
Two Month Qualification: Accumulate 2,500 Volume Points in two consecutive months, with at least 1,000 Unencumbered Volume in each month
Accumulate 4,000 Volume Points over two consecutive months, with at least 1,000 Unencumbered Volume
3−12 Month Qualification: Accumulate 5,000 Volume Points in three to twelve months, with at least 4,000 PPV
Accumulate 4,000 Volume Points in three to twelve months, with at least 2,000 PPV 4
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR REQUALIFICATION:
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The one-month requalification method remains the same
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The two-month requalification method will be changed to match the new two month Supervisor qualification criteria
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The twelve month accumulated 4,000 and 10,000 Volume Point requalification methods remain the same
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
QUALIFIED PRODUCER QUALIFICATION:
Accumulate 2,500 Volume Points in one to three months of which at least 1,500 is PPV
Accumulate 2,500 Volume Points in one to three months of which at least 1,000 is PPV
Qualified Producer Requalification:
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Changed to match the new qualification criteria 6
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
FIRST ORDER PROGRAM:
A New Member is limited to 1,100 Volume Points maximum in their first order. The Member may accumulate personally purchased orders (including the initial order) up to 3,999 Volume Points in 10 days.
Objective/Benefits: To help a Member have product experience and begin developing retail activity. This is also intended to help discourage financial expenditures without that experience.
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
FIELD SALES/VOLUME TRANSFERS:
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To be counted toward Supervisor Qualification, all volume must be purchased directly from the company (both PPV & DLV). Sales from Supervisor to Members will not count toward Supervisor Qualification.
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Benefits: – Allow volume that counts toward Supervisor Qualifications to be tracked by Herbalife
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SALES & MARKETING PLAN ENHANCEMENTS:
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Launch in February 2015 Order Month!
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First Order Program
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Field Sales NO longer eligible for Supervisor Qualifications. Sales must be purchased by Members in order to count for Supervisor Qualification.
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
TRANSITION PERIOD
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During the transition period of November 2014 through January 2015, the existing One and Two Month Supervisor Qualifications (using field sales) will still be available.
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Beginning February 2015, only the new Supervisor Qualifications will apply.
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
ADDITIONAL ENHANCEMENT:
– Senior Consultant will receive Split Commissions
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SC, QP, QS, SP will now share in Commissions on downline activity (based on final discount % at the end of the month)
Programming to be implemented in December 2014
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
First Order Program
12
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
THE FIRST ORDER PROGRAM:
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A Member is limited to a maximum of 1,100 Volume Points on their first order
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The Member may accumulate personally purchased orders (including the initial order) up to 3,999 Volume Points in 10 days
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To help a Member have product experience and begin developing retail activity. This is also intended to help discourage financial expenditures without that experience
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This also helps to discourage financial commitment without that experience
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Launch
First Order Program
Supervisor Qualification
SUPERVISOR QUALIFICATION WITH FIRST ORDER PROGRAM EXAMPLE 1: ONE MONTH QUALIFICATION
July 8
550 Volume Points @ 35%
July 11
750 Volume Points @ 35%
July 20
2,000 Volume Points @ 42%
July 27
700 Volume Points @ 42%
Confiden'al and Proprietary
Temporary 50% as of July 27 4,000 Volume Points qualifies as Supervisor 1st of following month 14
Launch
First Order Program
Supervisor Qualification
SUPERVISOR QUALIFICATION WITH FIRST ORDER PROGRAM EXAMPLE 2: ONE MONTH QUALIFICATION
July 8
1,050 Volume Points @ 42% Success Builder order
July 10
550 Volume Points @ 42%
July 21
2,000 Volume Points @ 42%
July 26
400 Volume Points @ 42%
Confiden'al and Proprietary
Temporary 50% as of July 26 4,000 Volume Points qualifies as Supervisor 1st of following month 15
Launch
First Order Program
Supervisor Qualification
SUPERVISOR QUALIFICATION WITH FIRST ORDER PROGRAM EXAMPLE 3: TWO MONTH QUALIFICATION
July 8
550 Volume Points @ 35%
July 11
750 Volume Points @ 35%
July 22
1,500 Volume Points @ 42%
July 30
500 Volume Points @ 42%
Aug 8
700 Volume Points @ 42%
Confiden'al and Proprietary
Temporary 50% as of Aug. 8 Qualifies as Supervisor 1st of following month 16
Launch
First Order Program
Supervisor Qualification
SUPERVISOR QUALIFICATION WITH FIRST ORDER PROGRAM EXAMPLE 4: TWO MONTH QUALIFICATION
July 8
1,050 Volume Points @ 42%
July 10
550 Volume Points @ 42%
July 22
1,000 Volume Points @ 42%
July 30
500 Volume Points @ 42%
Aug 8
900 Volume Points @ 42%
Confiden'al and Proprietary
Temporary 50% as of Aug. 8 Qualifies as Supervisor 1st of following month 17
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
THE FIRST ORDER PROGRAM – FAQ Q1: I've heard about a First Order Program. Can you explain to me what it is? A1: The First Order Program permits a Member to place a single order of up to 1,100 Volume Points in their first order. The Member may accumulate personally purchased orders (including the initial order) up to 3,999.99 Personally Purchased Volume in 10 days. Note: Exis'ng First Order Program countries that have a First Order Program period of 20, 25 or 30 days will retain the same number of days following worldwide implementa'on. Q2: My country has a First Order Program, but the Volume Point amount is more than 1,100 and the period of days is also longer. Will this be changing? A2: Yes, all markets will be aligned to the limit of 1,100 Volume Points on their first order, with the exception of Venezuela. Venezuela will retain their current Volume Point limits of 1,030 for the first order and a limit of 2,530 Volume Points for the First Order Program period. Additionally, countries that already have the program in place will retain the current number of days for their First Order Program period of 10, 20, 25 or 30 days. 18
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
THE FIRST ORDER PROGRAM – FAQ Q3: Will the First Order Program be worldwide? A3: Yes, the plan is to implement the First Order Program globally. Q4: Why is the First Order Program 1,100 Volume Points? A4: This allows a new Member the opportunity to purchase 1,000 Volume Points or more and become a Success Builder at 42% discount. Q5: In North America, if a Member can show proof of having sold or consumed their first order they may order in excess of 4000 Volume Points within 10 days? A5: Yes. This is correct. You must declare that you have consumed or sold your first order. This will be actioned by calling the NAM Member Services team; procedures to manage this are currently being determined.
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
Supervisor Qualification
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALICATION:
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There are 3 methods to qualify for Supervisor – 4,000 Volume Points may be accumulated in one month or over two months or over three to twelve months
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Accumulated volume includes volume purchased from Herbalife by you and any of your downline non-‐Supervisor Members
– The one and two month methods must include at least 1,000 Unencumbered Volume – The three or more month method requires at least 2,000 Personally Purchased Volume (PPV) 21
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS: One Month Qualification
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B – Accumulated 4,000 Volume Points during one month by personally purchasing product in multiple orders
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B – Becomes Supervisor the 1st of the following month
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B – Accumulated 4,000 Volume Points during one month by combining B’s PPV with the PPV of downline C
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B – Has 4,000 Unencumbered Volume since C is not comple'ng a Supervisor Qualifica'on this month
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B – Becomes a Supervisor the 1st of the following month 22
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS: Two Month Qualification
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B – Accumulates 4,000 Volume Points over two months (with at least 1,000 unencumbered). This volume may be in any amount in either month.
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All 4,000 volume is unencumbered since no other Member is qualifying for Supervisor.
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS: One Month And Two Month Qualification Within A Line
• • • • • •
C – Achieves 4,000 PPV in a one month. This is all Unencumbered Volume. C – Becomes Supervisor 1st of following month B – Does not have any Unencumbered Volume in month one B – Accumulated 4,000 Volume Points in month one but all is encumbered B – Achieves 1,000 PPV in month two. B now has 1,000 unencumbered as no one else is using this volume in month two B – Becomes Supervisor 1st of following month
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS: One Month And Two Month Qualification Within A Line
• • • •
B – Achieves 4,000 PPV in one month (all Downline Volume, DLV) and this is all unencumbered since no one is qualifying for Supervisor B – Becomes Supervisor 1st of following month C and D both achieve 4,000 Volume Points over two months Both C and D become Supervisor 1st of following month
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS: One Month And Two Month Qualification Within A Line
• • • • •
Month 1 – No Supervisor qualifica'on Month 2 – D achieved 4,000 PPV in two months. Becomes Supervisor 1st of following month C – Does not have 4,000 in two months B – Has accumulated 7,500 in two months and 4,000 is encumbered with 3,500 unencumbered B – Becomes Supervisor 1st of the following month
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS: One Month And Two Month Qualification Within A Line
• • • •
Month 1 – No Supervisor qualifica'on Month 2 – C and D each have achieved 4,000 Volume Points in two months. C and D become Supervisor 1st of following month B – Has accumulated 8,000 DLV but all Volume is encumbered for C and D’s Supervisor qualifica'on B – Retains 2,000 DLV (the maximum DLV requirement) towards the 3-‐12 month Supervisor qualifica'on 27
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS – FAQ Q1: What are the new enhancements to the Herbalife Sales & Marke;ng Plan? A1: Members can qualify to Supervisor by using one of the three methods listed below: 1 Month Qualifica'on: 4,000 Volume Points of which at least 1,000 Volume Points is Unencumbered Volume which can be PPV or DLV within the qualifying lineage. 2 Month Qualifica'on: Accumulate 4,000 Volume Points over 2 consecu've months of which 1,000 accumulated Volume Points is unencumbered and may be PPV or DLV within the qualifying lineage. 3 to 12 Month Qualifica'on: 4,000 Volume Points accumulated between 3 to 12 months of with at least 2,000 PPV. Q2: Will the new enhancements be implemented worldwide? A2: The enhancements to the Sales & Marke'ng Plan will be available in all countries where the Herbalife worldwide Sales & Marke'ng Plan is in place. Q3: Do I need to con;nue to submit a Supervisor Applica;on form to the company? A3: This will no longer be required as all orders for Supervisor Qualifica'on purposes must be placed directly with Herbalife. Our system will be able to apply the Qualifying Supervisor (QS) and Fully Qualified Supervisor (FQS) status automa'cally once the qualifica'on is achieved. 28 Note: See Q11 for excep'on cases
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS – FAQ Q4: Will there be any changes to the World Team volume requirement or status update? A4: The qualifica'on for World Team and status update will remain the same. Field Sales Q5: Will field sales con;nue to be permiOed? A5: Yes, however for the purpose of qualifying to the Supervisor level all sales must be placed directly with Herbalife. Q6: Will this be implemented worldwide? A6: Yes. Q7: When I have a new Member who would like to buy product immediately, may I sell to them in the field? A7: Yes, however, if this new Member would like to count the volume assigned to this order toward their Supervisor Qualifica'on, they will need to place the same order using their Herbalife ID number directly with the company and have it sent to their Sponsor/Supervisor address (whoever sold to them). The new Member will be credited with the volume and the Supervisor is replenished with their product. 29
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS – FAQ
Q8: Will the volume I’ve accumulated from purchases made directly from my Supervisor (field orders) count toward my qualifica;on for Supervisor? A8: Field orders purchased by you or from your Supervisor will not contribute toward the 4,000 Volume Points Supervisor methods. The volume must come from the orders you have placed directly from the company using your own Herbalife iden'fica'on number.
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Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS – FAQ Line Qualifica;ons Q9: Will line qualifica;ons to achieve Supervisor status be possible with the new enhancements? A9: Yes, line qualifica'ons will be possible; Members will have to accumulate a minimum of 1,000 DLV or Personally Purchased Volume (PPV) in order to be able to qualify in a line, except for the 4,000 accumulated method in which 2,000 PPV are required. Q10: Will the system update Members who achieve Supervisor status using a line qualifica;on? A10: The first upline FQS will need to call the company to review the qualifica'on to ensure the Members are updated to their appropriate qualifica'on. For Example:
FQS will need to contact Member Services to update Member A and B
Member A will require a Manual update
Member B will require a Manual update
Member C will be automa'cally updated by the system 31
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS – FAQ
Split Commission Q11: What does Split Commission mean? A11: Previously, Herbalife paid Qualifying Producers, Qualifying Supervisors and Fully Qualified Supervisors commission payments on orders that their downline placed directly with Herbalife. With this new enhancement, Herbalife will pay Senior Consultants commissions directly. This will be paid based on the final status and discount of a Member at the end of the month. For Example:
Member D will receive 8% commission payment on orders placed by Member A Member C will receive 7% commission payment on orders placed by Member A
Member B will receive 10% commission payment on orders placed by Member A
Member A is at 25% and placed an order with Herbalife 32
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS – FAQ Q12: If a Member places a 1000 PPV @ 42% (Success Builder order (SB)) in November and a downline Member places a 500 PPV 35% SC order, does the SB earn any commission? A12: Yes, the upline Success Builder who is @ 42% at the end of the month would receive a 7% commission. Q13: If the same upline Member from above in December now places a 300 PPV order @ 35% and the downline SC places another 500 PPV order @ 35%, does the upline SC receive any commission? A13: Due to Senior Consultant not retaining the 42% discount he drops back to 35% and would only receive commissions on orders placed @ 25% discount. Q14: Now that commissions will be paid to Senior Consultant will they have to requalify their Senior Consultant status? A14: Once a Member qualifies as Senior Consultant status no requalifica'on will be needed. Q15: Will my downline Members who are at 35%, 42% or temporary 50% at the end of the month, and are eligible to receive commission on their downline’s orders receive their commission directly from Herbalife? A15: Yes, Members who are at 35%, 42% or temporary 50% are eligible to receive split commission on any of the orders placed by their downline Members in which they are the first eligible higher percentage earner. 33
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS – FAQ Q16: I completed my Qualifying Supervisor qualifica;ons at the end of November. Why did I receive commission based on a 42% discount on some orders? A16: The commission percentage for a Qualifying Supervisor will be determined based on the QS Qualifica'on date. For example, any orders placed by your downline from November 5 to November 25 the upline qualifying Member will receive commission based on a 42% discount. The commission percentage will be based on 50% once the Member has achieved the Supervisor volume qualifica'on and is a Qualifying Supervisor. Qualified Producer Q17: Will there be changes to the Qualified Producer qualifica;on? A17: Yes, the amount of downline volume (DLV) permiied for this qualifica'on will go from 1,000 to 1,500 in order to qualify for Qualified Producer. To qualify for QP, achieve 2,500 Volume Points within 1-‐3 months with at least 1,000 Personally Purchased Volume. Q18: Will there be a change to the QP requalifica;on as well? A18: Yes, the requalifica'on will be the same as the change to the qualifica'on, achieve 2,500 Volume Points within 1-‐3 34 months with at least 1000 Personally Purchased Volume.
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS – FAQ 2 Month Qualifica;ons Q19: Will there be changes to the 2 month Qualifica;on? A19: Yes, the requirement is to accumulate 4,000 Volume Points over 2 consecu've months of which 1,000 accumulated Volume Points is unencumbered and may be PPV or DLV within the qualifying lineage. Q20: Will there be a change to the 2 month requalifica;on? A20: Yes, the 2 month Supervisor requalifica'on will be the same as the change to the qualifica'on. Accumulate 4,000 Volume Points over 2 consecu've months of which 1,000 accumulated Volume Points are unencumbered and may be PPV or DLV within the qualifying lineage. Q21: Do I have to achieve 2,000 Volume Points in each of 2 consecu;ve months for the new 2 month qualifica;on? A21: There is no specific Volume Point requirement in each of the 2 months. As long as the 4,000 Volume Points are met with a minimum of 1,000 Unencumbered Volume Points within the two months, the requirement will be met. Q22: If I achieved a 42% discount this month, will I be able to con;nue purchasing at 42% discount the following month? A22: Depending on how the 42% discount was achieved. If you qualified as a Senior Consultant by accumula'ng 500 to 2,000 Volume Points within one calendar month or Success Builder by placing a single order of 1,000 Volume Points, your discount will revert back to 35% at the beginning of the next month; however if you achieved Qualified Producer level by achieving 2,500 Volume Points within 1 to 3 months then you will remain at 42% discount* un'l you qualify to Supervisor at 50% discount. *Note: Qualified Producer must requalify annually. 35
Launch
First Order Program
Supervisor Qualification Confiden'al and Proprietary
SUPERVISOR QUALIFICATIONS – FAQ Accumulated Supervisor Qualifica;on Q23: Will we con;nue to have the 5K Supervisor Qualifica;on method? A23: The 5K Supervisor qualifica'on will be discon'nued. The 3-‐12 month qualifica'on will change to 4,000 accumulated Volume Points. Q24: Will the 4,000 Volume Points have to be Personally Purchased Volume? A24: Members will be able to use up to 2,000 Downline Volume Points between 3 to 12 months of which at least 2,000 Volume Points must be PPV. Promo;ons Q25: When does the volume begin to count for a Member who is qualifying for Supervisor toward promo;ons? A25: Aler placing the order in which a Member becomes a Qualifying Supervisor (QS), which is prior to their Fully Qualified Supervisor date, we will allow their Personal Volume to count toward promo'ons. For Example: A Member becomes a QS as of May 15, and is fully qualified as of June 1. Any volume between May 15 and June 1 will be allocated toward any Volume Point qualifica'on for promo'ons, in addi'on to volume aler their FQS date.
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u o Y k Than © 2014 Herbalife Interna'onal of America, Inc. All rights reserved. USA. BUS24003-‐USEN-‐00 10/14 Confiden'al and Proprietary
