HERBALIFE
Advisory Worldwide: June 16, 2011
Rules Update: The 10 Retail Customers Rule & The 70% Rule
With the expansion of daily consumption methods, Herbalife is very pleased to share enhancements to the 10 Retail Customers and 70% Rules.
Effective July Volume Month 2011, Distributors will have additional criteria to use toward compliance with the 10 Retail Customers and 70% Rules.
The rules below reflect the updated content, which will also be incorporated throughout the world
(where applicable) as each Herbalife market republishes their Career Books
Rule 18-B – 10 Retail Customers Rule
A Distributor must personally make sales to at least ten (10) separate retail customers in a given Volume Month to qualify for and receive Royalty Overrides, Production Bonuses, and other bonuses paid by Herbalife. For the purpose of fulfilling the certification requirements of this Rule, a Distributor may count any or all of the following each Volume Month.
• A sale to a retail customer;
• A sale to a first line Distributor with up to 200 personally purchased Volume Points (and no downline Distributors) may be counted as a sale to one (1) retail customer; and
• * A Nutrition Club member who consumed products during ten (10) visits to a Nutrition Club within one Volume month may be counted by the Nutrition Club operator as a sale to one (1) retail customer.
If the Distributor fails to timely certify to Herbalife that they have sold to at least ten (10) retail customers in a given Volume Month, Royalty Overrides, Production Bonuses, and other bonuses will not be paid to the Distributor.
* If a Distributor utilizes Nutrition Club sampling activity towards compliance, the Distributor shall maintain a log of member visits for at least two years, setting forth the name of the member, dates of visits, and contact information, and shall make those records available for verification purposes if requested by the Company
Rules Update: The 10 Retail Customers Rule & The 70% Rule (continued)
Rule 18-C The 70% Rule
In order to qualify for and receive Royalty Overrides, Production Bonuses, and other bonuses paid by Herbalife, at least 70% of the total value of Herbalife products a Distributor purchases each Volume Month must be sold or consumed that month. For the purpose of fulfilling the certification requirements of this Rule, a Distributor may count any or all of the following:
• Sales to retail customers;
• Sales at wholesale to downline Distributors;
• Product used for personal or family consumption; and
• * Product consumed at Nutrition Clubs.
* If a Distributor utilizes Nutrition Club sampling activity towards compliance, the Distributor shall maintain a log of member visits for at least two years, setting forth the name of the member, dates of visits and contact information, and shall make those records available for verification purposes if requested by the Company.
If the Distributor fails to timely certify to Herbalife that they have sold or consumed 70% of the product purchases made that Volume Month, Royalty Overrides, Production Bonuses, and other bonuses will not be paid to the Distributor.
The updated Earnings Certification Form is available through MyHerbalife.com for completion online or easy download, or through Distributor Relations upon request. The updated form will be included in the Sample Forms Section in the upcoming version of the US Career Book (version 23).
Should you have any questions regarding the details in this Advisory please contact your local
Distributor Relations Department at 866-866-4744.
Herbalife would like to take this opportunity to sincerely thank you for all your hard work and continuing to share the message of a healthy, active life and the benefits of Herbalife products.