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Page 1: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

WELCOME Please turn off all cell phones. Have a seat and we will start the presentation shortly.

Page 2: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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Today I will be sharing with you a little bit about Herbalife, from how the company got started 33 years ago, to where the company is today. You will also hear testimonial about Herbalife® products and the business opportunity. You are going to hear about people, sharing with you their personal product or business success story, Herbalife® nutrition products do not diagnose, treat, cure or prevent any disease. They simply provide good nutrition for the body, and the stories you hear should be based on approved product claims. When the body receives good nutrition, it reacts in a positive way. In terms of the business opportunity, some Distributors may share information about how much they earn from their Herbalife businesses. However, those incomes are applicable to those individuals and are not average. You can find average financial performance data in the business opportunity section on www.StartHerbalife.com. Whether you start part time or full time, your success depends on how hard you are willing to work in order to achieve the results you want. Like anything in life, it’s about hard and honest work. Now, let’s get started!

Page 3: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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•  North America has some of the highest obesity rates in the world for adults. The combination of a bad diet and minimal physical activity are the primary causes for obesity.1

•  The average city in North America has an obesity rate of 30 percent or higher meaning that AT LEAST one in three people are obese.2

•  People in North America generally don’t prepare meals and sit down for dinner together as frequently as they did 20 years ago. Moreover, they consume significantly more fast food which is packed with sugars and fats.3

MORE AND MORE PEOPLE HAVE BAD HABITS AND EAT POORLY

1. Oregon Health & Science University website. What is Obesity? 2. Centers for Disease Control and Prevention: Trends by State 1985-2009. 3. Office of the Surgeon General: Overweight and Obesity: Health Consequences.

Page 4: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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BMI TRENDS AMONG U.S. ADULTS

Page 5: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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Fast foods are excessively high in calories and deficient in the nutrients your body needs. High calorie intake and low physical activity creates calorie imbalance, making you gain weight.

Hamburger, fries and soda1

• 1,130 calories • 48 g of fat • 30 g of protein • 75 mg of cholesterol

Two deluxe tacos2

• 460 calories • 22 g of fat • 20 g of protein • 70 mg of cholesterol

EXCESS  FAT,  SUGAR,  WHITE  FLOUR,  SALT,  PRESERVATIVES  1. Meal Builder, http://www.mcdonalds.com/content/us/en/meal_builder.html, accessed April 2013.

2. Full Nutrition Information: All Items, http://www.tacobell.com/nutrition/information, accessed April 2013.

$6.48  

$3.30  

Page 6: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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•  Protein •  Vitamins •  Minerals •  Fiber

•  Amino acids •  Complex carbs •  Phytonutrients •  Water

Optimum Nutrition Excesses

Deficiencies

A balanced diet is essential for providing our bodies with the nutrients required to function properly. Unfortunately, most Americans find making healthy choices a challenge.

The Reality of Our Daily Diet

•  Sugar •  Salt •  Alcohol

•  Tobacco •  Fats •  Pollution: air, water

Page 7: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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AS AN HERBALIFE TEAM MEMBER…

WE OFFER NUTRITION FOR A HEALTHY LIFE!

Page 8: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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Well-balanced, healthy meals provide a variety of essential nutrients. Good nutrition and regular exercise helps you maintain a healthy weight and overall wellness.

Formula 1 Healthy Meal Nutritional Shake Mix* (1  serving  of  Formula  1,  8  oz.  of    nonfat  milk  and  1  oz.  of  strawberries) • 228 calories • 1 g of fat • 18 g of protein • 6 mg of cholesterol

VITAMINS,  MINERALS,  FIBER,  PROTEIN,    AMINO  ACIDS,  PHYTONUTRIENTS,  ANTIOXIDANTS   *Nutrition Information for milk obtained from calorieking.com.

$1.64  

Page 9: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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START YOUR DAY RIGHT

Formula 1 Healthy Meal Nutritional Shake Mix Herbal Tea Concentrate Herbal Aloe Concentrate

Formula 1 Healthy Meal Nutritional Shake Mix Formula 2 Multivitamin Complex

Formula 3 Cell Activator®

Formula 1 is delicious healthy meal that provides an ideal balance of protein and nutrition to help satisfy your hunger and give you lasting energy. Each shake is packed with 21 vitamins and minerals, fiber, and is an excellent source of antioxidants.† Clinical studies have shown that daily usage of meal replacement shakes is effective for managing weight, along with moderate exercise. †Vitamin A (as Beta Carotene), C & E

Page 10: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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•  In 1980, Mark Hughes started Herbalife at age 23.

•  Mark knew there was a better way for people to get healthy.

•  Mark’s dream is now a reality as Herbalife operates in over 85 countries.

OUR FOUNDATION MARK HUGHES – FOUNDER OF HERBALIFE

1956–2000

Page 11: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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HERBALIFE IS WORLDWIDE – IN OVER 85 COUNTRIES AND CONTINUES TO EXPAND

MARK’S DREAM IS BECOMING A REALITY! USA ITALY AUSTRIA LESOTHO LATVIA ROMANIA GHANA CANADA NETHERLANDS SWITZERLAND NAMIBIA UKRAINE HONDURAS SLOVENIA AUSTRALIA JAPAN BRAZIL SWAZILAND MACAU NICARAGUA URUGUAY UNITED KINGDOM VENEZUELA SOUTH AFRICA JAMAICA ESTONIA GUATEMALA SERBIA NEW ZEALAND DOMINICAN REPUBLIC FINLAND ICELAND SINGAPORE ECUADOR MACEDONIA ISRAEL ARGENTINA NORWAY INDIA LITHUANIA VIETNAM ARMENIA SPAIN BELGIUM GREECE SLOVAK REPUBLIC BOLIVIA PARAGUAY KAZAKHSTAN MEXICO POLAND KOREA CYPRUS HUNGARY ARUBA BOSNIA AND HERZEGOVINA FRANCE DENMARK CHILE PANAMA MALAYSIA BULGARIA MOLDOVA GERMANY SWEDEN THAILAND IRELAND COSTA RICA GEORGIA TRINIDAD AND TOBAGO PORTUGAL PHILIPPINES TURKEY COLOMBIA PERU BELARUS CZECH REPUBLIC RUSSIA INDONESIA CHINA EL SALVADOR LEBANON HONG KONG TAIWAN BOTSWANA CROATIA ZAMBIA MONGOLIA

Page 12: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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2M

1980 1984 1996 2004 2006 2010 2011

423M

1.2B

2.1B 3.1B

6.4B 5.4B

4.3B

2012

CONSISTENT YEARLY SALES GROWTH 33 YEARS IN BUSINESS OVER $6.4 BILLION SUGGESTED RETAIL SALES IN 2012 $1 BILLION SUGGESTED RETAIL SALES GROWTH FROM 2011 TO 2012

Page 13: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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•  Named chief executive officer of Herbalife in 2003 and chairman in 2007.

•  Under his direction, suggested retail sales have increased over 238 percent – from 2003 of $1.9 billion to $6.4 billion in 2012.

•  Has strengthened Herbalife’s product development and manufacturing as part of the Seed to Feed strategy.

•  Chairman of the Herbalife Family Foundation. •  Fitness enthusiast and accomplished

cyclist.

OUR LEADERSHIP MICHAEL O. JOHNSON CHIEF EXECUTIVE OFFICER

Page 14: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

14 *Titles  are  for  iden>fica>on  purposes  only.  The  University  of  California  does  not  endorse  specific  products  or  services  as  a  maFer  of  policy.  

†The  Nobel  Founda>on  has  no  affilia>on  with  Herbalife  and  does  not  review,  approve  or  endorse  Herbalife®  products.  

ADVISORS TODAY, HERBALIFE HAS A GREAT TEAM OF PAID ADVISORS, INCLUDING:

David Heber, M.D., Ph.D., F.A.C.P., F.A.C.N. Chairman, Herbalife Nutrition Institute Chairman, Nutrition Advisory Board Director, Center for Human Nutrition, UCLA* Professor, UCLA* Department of Medicine Director, UCLA* Clinical Nutrition Research Unit Lou Ignarro, Ph.D. Nobel✝ Laureate in Medicine

Member of the Editorial and Nutrition Advisory Boards of the Herbalife Nutrition Institute Distinguished Professor of Pharmacology at the UCLA* School of Medicine  

Page 15: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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Julián Álvarez García, M.D., Ph.D.Spain

Florisa Barquera, M.D. Mexico

Pedro Barreda Muñoz, M.D.Chile

Joaquim Caetano, M.D. Portugal

Banu Cayci, M.D. Turkey

Marco De Angelis, M.D. Italy

Marion Flechtner-Mors, Ph.D.Germany

Jorge Dominguez, M.D.Venezuela

Yubin He, M.D. China

Linong Ji, M.D. China

Jaime Orrego Gaviria, M.D.Colombia

Patricio Kenny, M.D.Argentina

Carel Le Roux, M.D., Ph.D.United Kingdom, Ireland

Jenny Kim, M.D., Ph.D.United States

Roman Malkov, M.D.Russia

Felipe Melgar, M.D.Bolivia

Jacque Manic, M.D.France

Anoop Misra, M.D. India

Jose Reinhart, M.D.Ecuador

Cecilia Solis-Rosas, M.D., FACPPeru

Nataniel Viuniski, M.D. Brazil

Jonathan Yarom, M.D.Israel

NutriEon  Advisory  Board  

Page 16: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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GLOBAL SPONSORED TEAMS AND EVENTS

Page 17: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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Herbalife24 is the first comprehensive performance nutrition line empowering athletes 24 hours a day. •  For active lifestyles from professional

athletes to youth sports •  Modular, customizable program for all

sports nutrition needs •  Third-party tested for banned

substances

SPORTS NUTRITION

Page 18: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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TOTAL NUTRITION

Page 19: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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•  Heart Health •  Stress Management •  Men’s Health •  Women’s Health •  Digestive Health •  Immune Benefits •  Children’s Health •  Healthy Aging •  Energy & Fitness

33 YEARS OF CHANGING PEOPLE’S LIVES USING TOTAL NUTRITION

Cellular  NutriEon  

Page 20: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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INCREDIBLE PRODUCT RESULTS

Page 21: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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An extensive questionnaire generated responses from more than 200 U.S. Herbalife Independent Members about their weight-loss programs and results. They reported weight loss ranging from 4 pounds to 167 pounds and a reduced body mass index (BMI) of 1.5 points to 24.1 points, suggesting that consumption of Herbalife® products is associated with weight loss and improvement in BMI in those ranges.

WEIGHT-LOSS CLAIM

Page 22: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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INCREDIBLE PRODUCT RESULTS

Page 23: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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GREAT PRODUCTS. GREAT BUSINESS.

Page 24: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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•  Use the products. •  Help family and other Members get

results on the products. Daily Methods of Operation

•  Teach other Members to do the same.

AS A MEMBER, YOU HAVE THE OPPORTUNITY TO:

Page 25: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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BUSINESS SUCCESS RESULTS

Page 26: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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STATEMENT OF AVERAGE GROSS COMPENSATION PAID BY HERBALIFE TO UNITED STATES MEMBERS IN 2012

People become Herbalife Members for a number of reasons. The majority (73%)(1) primarily join us to receive a wholesale price on products they and their families enjoy. Some wish to earn part-time money, wanting to give direct sales a try and are encouraged by Herbalife’s low start-up costs (at their option, a Mini Herbalife Member Pack [HMP] at $57.75 or full HMP at $89.55) and money-back guarantee(2). Others are drawn to Herbalife because they can be their own boss and can earn rewards based on their own skills and hard work. Whatever the motivation, an Herbalife Membership is something like a gym membership: results vary with the time, energy and dedication you put into it. Anyone considering an active Membership needs to understand the realities of direct selling. It is hard work. There is no shortcut to riches, no guarantee of success. However, for those who devote the time and energy to develop a stable base of customers and then mentor and train others to do the same, the opportunity for personal growth and an attractive part-time or full-time income exists. Moreover, unlike other businesses, there are minimal start-up costs in beginning your Herbalife Membership. There is no need for a Member to spend significant amounts of money on sales aids or other materials. In fact, Herbalife’s corporate policy discourages the use of such sales aids, especially in the first few months of a Membership. The majority of Herbalife’s Independent Members (71%) have not sponsored another Member and are therefore “single-level” Members. Single-level Members benefit from buying Herbalife® products at a preferred price for their consumption and that of their families, and for many this is the only benefit they seek. Some may also be retailing products for a profit and this profit is not included in any of the compensation figures below. Some Members (29%) have decided to sponsor others to become Herbalife Members. In that way, they may seek to build and maintain their own downline sales organizations. They are not paid anything for sponsoring new Members. They are paid solely based on product sales to their downline Members for their own consumption or for retail to others. This multilevel compensation opportunity is detailed in Herbalife’s Sales & Marketing Plan, which is available to all Members online at www.MyHerbalife.com. For potential Members to make an informed decision, we offer the following chart to show the different ranges of average gross compensation that Herbalife pays to its Members. The figures below do not include any retail/wholesale profit that a Member makes from selling Herbalife® products to others nor do these figures include expenses incurred by a Member in the operation or promotion of his or her business. Such business expenses can vary widely. They might include advertising or promotional expenses, product samples, training, rent, travel, telephone and Internet costs, and miscellaneous expenses. The compensation received by the Members in this chart is not necessarily representative of the gross compensation, if any, that any particular Member will receive. These figures should not be considered as guarantees or projections of your actual gross compensation or profits. Success with Herbalife results only from successful product sales efforts, which require hard work, diligence and leadership. Your success will depend upon how effectively you exercise these qualities.

Page 27: WELCOME [212teambuilders.com] · started Herbalife at age 23. • Mark knew there was a better way for people to get healthy. • Mark’s dream is now a reality as Herbalife operates

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The compensation chart below indicates that 434,125 Members (88%) received no payments from Herbalife during 2012. However, this chart does not include amounts earned by Members on their sales of Herbalife products to others.

Additionally, this chart does not include the benefit to Members buying Herbalife products at a preferred price for their consumption and that of their families. Based on the company’s survey, 73%(1) of individuals became Members primarily for this benefit.

51.0% of all sales leaders as of February 1st, 2011, requalified by February 1st, 2012 (including 34.3% of first time sales leaders).

The majority of those Members who earned in excess of (USD)100,000 in 2012 had reached the level of Herbalife’s President’s Team. During 2012, 47 US Members joined the level of President’s Team. They averaged 9 years as an Herbalife Member before reaching President’s Team, with the longest being 20 years and the shortest being less than three years.

STATEMENT OF AVERAGE GROSS COMPENSATION PAID BY HERBALIFE TO UNITED STATES MEMBERS IN 2012

51.0% of all sales leaders as of February 1, 2011, requali!ed by February 1, 2012 (including 34.3% of !rst-time sales leaders).

The majority of those Members who earned in excess of (USD)100,000 in 2012 had reached the level of Herbalife’s President’s Team. During 2012, 47 US Members joined the level of President’s Team. They averaged nine years as an Herbalife Member before reaching President’s Team, with the longest being 20 years and the shortest being less than three years.

(1) Based on a Member research survey conducted in the USA by Lieberman Research Worldwide, January 2013, with a margin of error of +/- 3.7%. (2) 90 days on the return of the HMP and one year on the return of resalable inventory, upon leaving the business. © 2013 Herbalife International of America, Inc. All rights reserved. Printed in USA. #19513-USEN 04/13

Single'Level*Members*(No*Downline)

EconomicOpportunity

Members*

The*economic*rewards*for*single5level*Members*are*the*wholesale*pricing*received*on*products*for*consumption*by*the*Member*and*his*or*her*family*as*well*as*the*opportunity*to*retail*product*to*non5

Members.*Neither*of*these*rewards*are*payments*made*by*the*company*and*therefore*are*excluded*from*this*schedule.

Number %

� Wholesale*price*on*product*purchases

351,065 71%� Retail*profit*on*sales*to*non5

Members

Non'Sales*Leaders***With*a*Downline

EconomicOpportunity

Members

product*purchases*made*directly*with*Herbalife.

Number %In*addition*to*the*economic*rewards*of*the*single5level*Members*above,*which*are*not*included*in*this*chart,certain*non5sales*leader*Members*with*a*downline*may*be*eligible*for*payments*from*Herbalife*on*downline

� Wholesale*price*on*product*purchases

60,333 12%� Retail*profit*on*sales*to*non5

Members2,466*of*the*4,449*eligible*Members*earned*such*payments*in*2012.The*average*total*payments*to*the*2,466*Members*was*(USD)104.

� Wholesale*profit*on*sales*to*another*Member

Sales*Leaders***With*a*Downline

EconomicOpportunity

Members All*Sales*Leaders*with*a*Downline

This*chart*does*not*include*amounts*

earned*by*Members*on*their*sales*of*

Herbalife®*products*to*others.

Number % Average*Payments Number*of*Members

%*of*Total*Grouping

Average*Gross� Wholesale*price*on*product*

purchases

82,464 17%

From*Herbalife Payments(USD) (USD)

� Retail*profit*on*sales*to*non5Members

>250,000 194 0.2% 724,030

100,001*5*250,000 452 0.5% 148,808

� Wholesale*profit*on*sales*to*another*Member

50,001*5*100,000 539 0.7% 68,912

25,001*5*50,000 1,136 1.4% 35,581

� Multilevel*compensation*on*downline*sales

10,001*5*25,000 1,940 2.4% 15,538

5,001*5*10,000 2,552 3.1% 7,008

� Royalties 1,001*5*5,000 11,307 13.7% 2,216

� Bonuses 1*5*1,000 39,151 47.5% 292

0 25,193 30.6% 0

Total 82,464 100.0% 4,485

**30,621*of*the*351,065*single5level*Members*are*sales*leaders*without*a*downline.

***Sales*leaders*are*Members*that*achieved*the*level*of*Supervisor*or*higher.*See*details*on*Herbalife’s*Sales*&*Marketing*Plan*at* www.MyHerbalife.com.

Asociados*De*Un*Nivel*(Sin*Línea*Descendente)

Oportunidad*EconómicaAsociados*

Las*recompensas*económicas*para*los*Asociados*de*un*nivel,*es*el*precio*al*mayoreo*de*los*productos*recibidos*para*el*consumo*por*parte*del*Asociado*y*su*familia,*así*como*la*oportunidad*de*vender**

productos*al*menudeo*a*las*personas*que*no*sean*Asociados.*Ninguna*de*estas*recompensas*son**pagos*realizados*por*la*compañía*y*por*lo*tanto*quedan*excluidos*de*esta*tabla.*

Número %

� Precio*al*Mayoreo*de*compras*de*producto

351,065 71%� Ganancia*al*Menudeo*de*ventas*a*personas*que*no*sean*Asociados

No'Líderes*de*Ventas***Con*Línea*Descendente

Oportunidad*EconómicaAsociados Además*de*las*recompensas*económicas*de*los*Asociados*de*un*nivel*mencionados*arriba,*que*no*están*

incluidos*en*esta*tabla,*algunos*no5líderes*en*ventas*con*una*línea*descendente*pueden*ser*elegibles*parlos*pagos*de*Herbalife*por*compras*de*producto*hechos*por*su*línea*descendente*directamente*

con*Herbalife.

Número % a

� Precio*al*Mayoreo*de*compras*de*producto

60,333 12%� Ganancia*al*Menudeo*de*ventas*

a*personas*que*no*sean*Asociados

2,466*de*los**4,449*Asociados*elegibles*ganaron*tales*ingresos*en*el*2012.El*promedio*total*de*pagos*a*los*2,466*Asociados*fue*de*(EUA)104.

� Ganancia*al*Mayoreo*de*ventas*a*otro*Asociado

Líderes* de* Ventas***Con*Línea*Descendente

Oportunidad*EconómicaAsociados Todos*los*Líderes*de*Ventas*con*Línea*Descendente*

Esta*tabla*no*incluyelas*cantidades*ganadas*por*

Asociados*en*sus*ventas*de*productos*

Herbalife*a*otros.*

Número % Promedio*de*Pago* Número*de*Asociados

%*de*Grupo*Total

Promedio*de� Precio*al*Mayoreo*de*compras*

de*producto

82,464 17%

por*Herbalife Pagos*Brutos(EUA) (EUA)

� Ganancia*al*Menudeo*de*ventas*a*personas*que*no*sean*Asociados

>250,000 194 0.2% 724,030

100,001*5*250,000 452 0.5% 148,808

� Ganancia*al*Mayoreo*de*ventas*a*otro*Asociado

50,001*5*100,000 539 0.7% 68,912

25,001*5*50,000 1,136 1.4% 35,581

� Compensación*de*multinivel*de*ventas*de*línea*descendente*

10,001*5*25,000 1,940 2.4% 15,538

5,001*5*10,000 2,552 3.1% 7,008

� Regalías 1,001*5*5,000 11,307 13.7% 2,216

� Bonos 1*5*1,000 39,151 47.5% 292

0 25,193 30.6% 0

Total 82,464 100.0% 4,485

**30,621*de*los*351,065*de*Asociados*de*un*nivel*son*líderes*de*ventas*sin*línea*descendente.*

******Los*líderes*de*ventas*son*Asociados*que*lograron*el*nivel*de*Supervisor*o*superior.*Ver*detalles*en*el*Plan*Ventas*y*Mercadeo*Herbalife*en* www.MiHerbalife.com.****

STATEMENT OF AVERAGE GROSS COMPENSATION PAID BY HERBALIFE TO USA MEMBERS IN 2012

People become Herbalife Members for a number of reasons. The majority (73%)(1) primarily join us to receive a wholesale price on products they and their families enjoy. Some wish to earn part-time money, wanting to give direct sales a try and are encouraged by Herbalife’s low start-up costs (at their option, a Mini Herbalife Member Pack [HMP] at $57.75 or full HMP at $89.55) and money-back guarantee(2). Others are drawn to Herbalife because they can be their own boss and can earn rewards based on their own skills and hard work.

Whatever the motivation, an Herbalife Membership is something like a gym membership: results vary with the time, energy and dedication you put into it. Anyone considering an active Membership needs to understand the realities of direct selling. It is hard work. There is no shortcut to riches, no guarantee of success. However, for those who devote the time and energy to develop a stable base of customers and then mentor and train others to do the same, the opportunity for personal growth and an attractive part-time or full-time income exists. Moreover, unlike other businesses, there are minimal start-up costs in beginning your Herbalife Membership. There is no need for a Member to spend signi!cant amounts of money on sales aids or other materials. In fact, Herbalife’s corporate policy discourages the use of such sales aids, especially in the !rst few months of a Membership.

The majority of Herbalife’s Independent Members (71%) have not sponsored another Member and are therefore “single-level” Members. Single-level Members bene!t from buying Herbalife® products at a preferred price for their consumption and that of their families, and for many this is the only bene!t they seek. Some may also be retailing products for a pro!t and this pro!t is not included in any of the compensation !gures below.

Some Members (29%) have decided to sponsor others to become Herbalife Members. In that way, they may seek to build and maintain their own downline sales organizations. They are not paid anything for sponsoring new Members. They are paid solely based on product sales to their downline Members for their own consumption or for retail to others. This multilevel compensation opportunity is detailed in Herbalife’s Sales & Marketing Plan, which is available to all Members online at www.MyHerbalife.com.

For potential Members to make an informed decision, we offer the following chart to show the different ranges of average gross compensation that Herbalife pays to its Members. The !gures below do not include any retail/wholesale pro!t that a Member makes from selling Herbalife® products to others nor do these !gures include expenses incurred by a Member in the operation or promotion of his or her business. Such business expenses can vary widely. They might include advertising or promotional expenses, product samples, training, rent, travel, telephone and Internet costs, and miscellaneous expenses. The compensation received by the Members in this chart is not necessarily representative of the gross compensation, if any, that any particular Member will receive. These !gures should not be considered as guarantees or projections of your actual gross compensation or pro!ts. Success with Herbalife results only from successful product sales efforts, which require hard work, diligence and leadership. Your success will depend upon how effectively you exercise these qualities.

The compensation chart below indicates that 434,125 Members (88%) received no payments from Herbalife during 2012. However, this chart does not include amounts earned by Members on their sales of Herbalife® products to others.

Additionally, this chart does not include the bene!t to Members buying Herbalife® products at a preferred price for their consumption and that of their families. Based on the company’s survey, 73%(1) of individuals became Members primarily for this bene!t.

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Incomes applicable to the individuals (or examples) depicted and not average. For average financial performance data, see the Statement of Average Gross Compensation Paid by Herbalife at StartHerbalife.com.

EARNINGS CLAIMS & TESTIMONIALS

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Position Determines Your Discount

Member 25%

Retail

Purchase HMP

Senior Consultant

35% Retail

500 VP in 1 order/month

Success Builder*

42% Retail

1,000 VP in

1 order

*The Success Builder is a one-month order discount opportunity and not a step within the Marketing Plan

Supervisor 50%

Retail & Wholesale &

Multiple Streams

4,000 VP in

1 month

2,500 VP in 2 consecutive

months

Accumulate 5,000 VP

in 3-12 months

Qualified Producer

42% Retail &

Wholesale

Accumulate 2,500 VP in 1-3

months

*Retail  &  wholesale  profits  are  calculated  on  earn  base.  

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HERBALIFE GIVES BACK

Helping children around the world.

92 CASAs in 50 countries.

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GET STARTED WITH AN HERBALIFE MINI OR FULL MEMBER PACK (HMP)

Full Mini

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•  Earn Member discounts and profits instantly by retailing products

•  Be a part of the Herbalife team •  Access to a personalized training process •  Receive support from your Sponsor •  Sponsor other customers or Members •  Do business in over 85 countries •  Opportunity for personal and financial growth •  Change lives with us!

ALLOWS YOU TO:

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•  In Business 33 Years

•  Open in over 85 Countries

GREAT PRODUCTS! GREAT BUSINESS! •  US$5.4 Billion

Suggested Retail Sales in 2011

•  Over US$6.4 Billion Suggested Retail Sales in 2012

Products   Marke>ng  Plan  

   

YOU

Your past doesn’t determine your future!

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•  A) Get started on the products –  Look better and feel better

•  B) Start part time to supplement your income –  Around your current schedule

•  C) Run your business as a full-time occupation

YOUR NEXT STEP – MAKE A DECISION WHICH WAY YOU WANT TO GET STARTED WITH US:

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3 GLOBAL MEGATRENDS

                 

     

POOR NUTRITION

UNDER- EMPLOYMENT

AGING POPULATION

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©  2013  Herbalife  Interna>onal  of  America,  Inc.  All  rights  reserved.  USA.  BUS19656-­‐USEN-­‐00  06/13