Sales & Marketing Plan - PowerPoint Presentation

Slide1

Sales & Marketing

Plan Enhancements

Confidential and ProprietarySlide2

1

Launch

First Order Program

Supervisor

Qualification

Launch

Confidential and ProprietarySlide3

2

SALES & MARKETING

PLAN

ENHANCEMENTS:

TOPICS

SUPERVISOR QUALIFICATION/

REQUALIFICATION LAUNCH Nov 2014

FIRST ORDER PROGRAM Feb 2015

FIELD SALES RELATING EXPERIENCE

QUALIFICATION

Feb 2015

TRANSITION PERIOD Nov 2014 – Feb 2015

SENIOR CONSULTANT COMMISSIONS Dec 2014

Confidential and Proprietary

First Order Program

Supervisor

Qualification

LaunchSlide4

Confidential and Proprietary

SALES & MARKETING

PLAN

ENHANCEMENTS:

LAUNCH on NOVEMBER 15,

2014

!

SUPERVISOR QUALIFICATION

- 4,000 VOLUME POINTS IN ONE MONTH or TWO MONTHS or 3 to 12 MONTHS

QUALIFIED PRODUCER – up to 1,500

Downline

Volume

The New Supervisor one and two month qualifications will exclude any field sales from the Supervisor sponsor

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

!

First Order Program

Supervisor

Qualification

Launch

3Slide5

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Launch

SUPERVISOR QUALIFICATIONS:

One

Month Qualification

:

Accumulate 4,000 Volume Points in one month with at least 1,000

Unencumbered

V

olume

Two

Month Qualification:

Accumulate 2,500 Volume Points in two consecutive months, with at least 1,000

Unencumbered

Volume in each

month3−12 Month Qualification:

Accumulate 5,000 Volume Points in three to twelve months, with at least 4,000 PPV

Accumulate 4,000 Volume Points in one month with at least 1,000

Unencumbered

V

olume

Accumulate

4,000 Volume Points over two consecutive months, with at least 1,000

Unencumbered

V

olume

Accumulate

4,000 Volume Points in three to twelve months, with at least 2,000 PPV

4Slide6

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Launch

SUPERVISOR REQUALIFICATION:

The one-month

requalification

method remains

the

same

The two-month

requalification

method

will be changed to match the new two month Supervisor qualification

criteria

The twelve month accumulated 4,000 and 10,000 Volume Point requalification methods remain the same

5Slide7

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Launch

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

Changed to match the new qualification criteria

Qualified Producer Requalification:

6Slide8

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Launch

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.

7Slide9

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Launch

FIELD SALES/VOLUME TRANSFERS:

Benefits:

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.

– Allow volume that counts toward Supervisor Qualifications to be tracked by Herbalife

8Slide10

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Launch

Launch in February 2015 Order Month!

First Order Program

Field Sales NO longer eligible for Supervisor Qualifications. Sales must be purchased by Members in order to count for Supervisor Qualification.

SALES & MARKETING

PLAN

ENHANCEMENTS:

9Slide11

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Launch

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.

Beginning February 2015, only the new Supervisor Qualifications will apply.

TRANSITION PERIOD

10Slide12

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Launch

ADDITIONAL ENHANCEMENT:

SC, QP, QS, SP will now share in Commissions on

d

ownline

activity (based on final discount % at the end of the

month

)

Programming

to

be implemented in December

2014

– Senior Consultant will receive Split Commissions

11Slide13

First Order

Program

First Order Program

Supervisor

Qualification

Launch

Confidential and Proprietary

12Slide14

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Launch

A Member is limited to a maximum of 1,100 Volume Points on their first order

The Member may accumulate personally purchased orders (including the

initial order) up to

3,999 Volume Points

in 10 days

To help a Member have product experience and begin developing retail activity. This is also intended to help discourage financial expenditures without that experience

This also helps to discourage financial commitment without that experience

THE FIRST ORDER PROGRAM:

13Slide15

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Launch

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%Temporary 50% as of July 274,000 Volume Points qualifies as Supervisor

1st

of following month

14Slide16

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Launch

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%

Temporary 50% as of July 264,000 Volume Points qualifies

as

Supervisor

1

st

of following month

SUPERVISOR QUALIFICATION WITH FIRST ORDER PROGRAM

EXAMPLE 2: ONE MONTH QUALIFICATION

15Slide17

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Launch

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%Temporary 50% as of Aug. 8Qualifies as Supervisor 1

st of following month

SUPERVISOR QUALIFICATION WITH FIRST ORDER PROGRAM

EXAMPLE 3: TWO MONTH QUALIFICATION

16Slide18

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Launch

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%Temporary 50% as of Aug. 8Qualifies as Supervisor 1

st of following month

SUPERVISOR QUALIFICATION WITH FIRST ORDER PROGRAM

EXAMPLE 4: TWO MONTH QUALIFICATION

17Slide19

Launch

First Order Program

Supervisor

Qualification

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: Existing 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 implementation.

 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

V

olume

P

oints for the

F

irst

O

rder

P

rogram

period.

Additionally,

countries that already have the program in place will retain the current number of days for their

First

O

rder

P

rogram

period of 10, 20, 25 or 30 days.

Confidential and Proprietary

THE FIRST ORDER PROGRAM – FAQ

18Slide20

First Order Program

Supervisor

Qualification

Launch

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 V

olume 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.

Confidential and Proprietary

THE FIRST ORDER PROGRAM – FAQ

19Slide21

Supervisor Qualification

First Order Program

Supervisor

Qualification

Launch

Confidential and Proprietary

20Slide22

Launch

Confidential and Proprietary

First Order Program

Supervisor

Qualification

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

Accumulated volume includes volume purchased from Herbalife by you and

any of your

d

ownline

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)

SUPERVISOR QUALICATION:

21Slide23

Launch

Confidential and Proprietary

First Order Program

Supervisor

Qualification

SUPERVISOR QUALIFICATIONS:

One Month Qualification

B – Accumulated 4,000 Volume Points during one month by personally purchasing product in multiple orders

B

– Becomes Supervisor the 1

st

of the following month

B – Accumulated 4,000 Volume Points during one month

by combining B’s PPV with the PPV of

downline

C

B – Has 4,000 Unencumbered Volume since C is not completing a Supervisor Qualification this month

B – Becomes a Supervisor the 1

st

of the following month

22Slide24

Launch

Confidential and Proprietary

First Order Program

Supervisor

Qualification

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.

All 4,000 volume is unencumbered since no other Member is qualifying for Supervisor.

SUPERVISOR QUALIFICATIONS:

Two Month Qualification

23Slide25

Launch

Confidential and Proprietary

First Order Program

Supervisor

Qualification

C – Achieves 4,000 PPV in a one month. This is all Unencumbered Volume.

C – Becomes Supervisor 1st of following

monthB – Does not have any Unencumbered Volume in month

oneB – 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

v

olume in month twoB – Becomes Supervisor 1st of following month

SUPERVISOR QUALIFICATIONS:

One Month And Two Month Qualification Within A Line

24Slide26

Launch

Confidential and Proprietary

First Order Program

Supervisor

Qualification

B – Achieves 4,000 PPV

in one month (all Downline Volume, DLV) and this is all unencumbered

since no one isqualifying 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 1

st

of following month

SUPERVISOR QUALIFICATIONS:

One Month And Two Month Qualification Within A Line

25Slide27

Month 1 – No Supervisor qualification

Month 2 – D achieved 4,000 PPV in two months. Becomes Supervisor 1

st

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 unencumberedB – Becomes Supervisor 1st of the following month

Launch

Confidential and Proprietary

First Order Program

Supervisor

Qualification

SUPERVISOR QUALIFICATIONS:

One Month And Two Month Qualification Within A Line

26Slide28

Launch

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Month 1 – No Supervisor qualification

Month 2 – C and D each have achieved 4,000 Volume Points in two months. C and D become Supervisor 1st

of following monthB – Has accumulated 8,000 DLV but all Volume is encumbered for C and D’s Supervisor qualificationB – Retains 2,000 DLV

(the maximum DLV requirement) towards the 3-12 month Supervisor qualification

SUPERVISOR QUALIFICATIONS:

One Month And Two Month Qualification Within A Line

27Slide29

Launch

Confidential and Proprietary

First Order Program

Supervisor

Qualification

Q1

: What are the new enhancements to the Herbalife Sales & Marketing Plan?

A1: Members can qualify to Supervisor by using one of the three methods listed below:

1 Month Qualification:

4,000

V

olume

P

oints

of which at least

1,000 Volume Points is Unencumbered Volume which can be PPV or DLV within the qualifying lineage.2 Month Qualification: Accumulate 4,000 Volume Points over 2 consecutive months of which 1,000

accumulated Volume

Points is unencumbered and may be PPV or DLV within the qualifying lineage.

3 to 12 Month Qualification: 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 & Marketing

P

lan

will be available in all countries

where the Herbalife worldwide Sales & Marketing

P

lan

is in place

.

Q3: Do I need to continue to submit a Supervisor Application form to the company?

A3:

This will no longer be required as all orders for Supervisor Qualification purposes must be placed directly with

Herbalife

. Our system will be able to apply the Qualifying Supervisor (QS) and Fully Qualified Supervisor (FQS) status automatically once the qualification is achieved.

Note:

See Q11 for exception cases

SUPERVISOR QUALIFICATIONS – FAQ

28Slide30

Launch

First Order Program

Supervisor

Qualification

Q4: Will there be any changes to the World Team volume requirement or status update?

A4: The qualification for World Team and status update will remain the same.

Field SalesQ5: Will

field sales continue to be permitted? 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 Qualification, 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.Confidential and Proprietary

SUPERVISOR QUALIFICATIONS – FAQ

29Slide31

Launch

First Order Program

Supervisor

Qualification

Q8: Will the volume I’ve accumulated from purchases made directly

from my Supervisor (field orders) count toward my qualification

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 identification number.

Confidential and Proprietary

SUPERVISOR QUALIFICATIONS – FAQ

30Slide32

Launch

First Order Program

Supervisor

Qualification

Line

QualificationsQ9: Will line qualifications to achieve Supervisor status be possible with the new enhancements?A9:

Yes, line qualifications 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 qualification?A10: The

first

upline

FQS will need to call the company to review the qualification to ensure the Members are updated to their appropriate qualification.

For Example:

FQS will need to contact Member Services to update Member

A

and BMember A will require a

Manual update

Member B

will require a Manual update

Member C will

be

automatically updated

by the system

Confidential and Proprietary

SUPERVISOR QUALIFICATIONS – FAQ

31Slide33

Launch

First Order Program

Supervisor

Qualification

Split

CommissionQ11: 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 AMember B will receive 10% commission payment on orders placed by Member A

Member

A is at 25% and placed an order with Herbalife

Confidential and Proprietary

SUPERVISOR QUALIFICATIONS – FAQ

32Slide34

Launch

First Order Program

Supervisor

Qualification

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 requalification 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.

Confidential and Proprietary

SUPERVISOR QUALIFICATIONS – FAQ

33Slide35

Launch

First Order Program

Supervisor

Qualification

Q16: I completed my Qualifying Supervisor qualifications 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 Qualification 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 qualification and is a Qualifying Supervisor.

Qualified

Producer

Q17

: Will there be changes to the Qualified Producer qualification?

A17

:

Yes, the amount of

downline volume (DLV) permitted for this qualification 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 requalification as well?A18

: Yes, the requalification will be the same as the change to the qualification, achieve 2,500 Volume P

oints within 1-3 months with at least 1000 Personally Purchased Volume.

Confidential and Proprietary

SUPERVISOR QUALIFICATIONS – FAQ

34Slide36

Launch

First Order Program

Supervisor

Qualification

2 Month

QualificationsQ19: Will there be changes to the 2 month Qualification?A19: Yes, the requirement is to accumulate 4,000 Volume Points

over 2 consecutive months of which 1,000accumulated Volume

Points is unencumbered and may be PPV or DLV within the qualifying lineage.Q20: Will there be a change to the 2 month requalification?

A20: Yes, the 2 month Supervisor requalification will be the same as the change to the qualification. Accumulate 4,000 Volume

Points

over 2 consecutive 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 consecutive months for the new 2 month qualification?A21: There is no specific Volume Point requirement in each of the 2 months. As long as the 4,000 Volume Points aremet 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 continue purchasing at 42% discount the

following month? A22: Depending on how the 42% discount was achieved. If you qualified as a Senior Consultant by accumulating 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

P

oints within 1 to 3 months then you will remain at 42% discount* until you qualify to Supervisor

at 50% discount.

*Note:

Qualified Producer must

requalify

annually.

Confidential and Proprietary

SUPERVISOR QUALIFICATIONS – FAQ

35Slide37

Launch

First Order Program

Supervisor

Qualification

Accumulated

Supervisor Qualification Q23: Will we continue to have the 5K Supervisor Qualification method?

A23: The 5K Supervisor qualification will be discontinued. The 3-12 month qualification will change to 4,000 accumulated V

olume 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

D

ownline

Volume Points between 3 to 12 months of which at least 2,000 Volume Points must be PPV.Promotions Q25: When does the volume begin to count for a Member who is qualifying for Supervisor toward promotions?A25: After 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 promotions.

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

P

oint

qualification for promotions, in addition to volume after their FQS date.

Confidential and Proprietary

SUPERVISOR QUALIFICATIONS – FAQ

36Slide38

Thank You

Confidential and Proprietary

© 2014 Herbalife International of America, Inc. All rights reserved. USA.

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