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Struggle to get out of bed in the morning, can’t function without your morning coffee fix, mid afternoon slump sees you reaching for sugary snacks and drinks to get you through the day… sound familiar?
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WELCOME Please turn off all cell phones. Have a seat and we will start the presentation shortly.
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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!
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WE
IGH
T M
ANAGEMENT OUTER NUTRITIO
N
F ITNESS
“The IHRSA also reported that the total
revenue in the fitness industry reached$21.8 billion in 2012.
”
Data source: International Health, Racquet, and Sportsclub Association (IHRSA), May, 2013.
“In 2012, U.S. skin care
sales reached $11.7 billion. By 2016, U.S. men’s grooming sales will reach $5.8 billion.
” Data source: Euromonitor International, 2013.
“Over the past 30 years,
prevalence of obesity has tripled. More than half of
U.S. adults are actively trying to lose weight.
” Data source: Partnership Capital Growth, LLC, 2010.
STATISTICS SHOW A RISE IN CONSUMER SPENDING FOR BODY IMAGE CONCERNS.
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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.
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BMI TRENDS AMONG U.S. ADULTS
1990
2010
BRFSS, 1990, 2000, 2010(*BMI >30, or about 30lbs. overweight for 5’4” person)
2000
Source: Behavioral Risk Factor Survelliance System, CDC
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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
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• Protein • Vitamins • Minerals • Fiber
• Amino acids • Complex carbs • Phytonutrients • Water
Optimum Nutrition Excesses
Deficiencies
A balanced diet is of Our essential for providing our bodies with the nutrients required to function properly. Unfortunately, most Americans find making healthy choices a challenge.
The Reality Daily Diet
• Sugar • Salt • Alcohol
• Tobacco • Fats • Pollution: air, water
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AS AN HERBALIFE TEAM MEMBER…
WE OFFER NUTRITION FOR A HEALTHY LIFE!
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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
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START YOUR DAY RIGHT
“Herbalife market share in the meal replacement category for 2010, 2011 and 2012 respectively was 24.5%, 26.8% and 28.5%, making Herbalife the brand leader in this category.” Source: Euromonitor international.
Formula 1 is delicious healthy meal that provides an ideal balance of protein and other important nutrients 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.
The depicted fruits and vegetables contain other nutrients not present in Herbalife® Formula 1 Nutritional Shake Mix. Herbalife recommends consumption of Formula 1 as part of a regimen that also includes fruits and vegetables. An Herbalife® Formula 1 shake made with nonfat milk has only 180 calories and 18 g of protein, 15 mg Vitamin C, 7.5 IU Vitamin E, 3 g of fiber, 350 mg calcium, and 1750 IU Vitamin A.
† Vitamin A (as beta-carotene), C & E
NUTRIENT-PACKED. HEALTHY. BALANCED.
PROTEINAs much protein as 3 large eggs
VITAMIN CAs much Vitamin C as 2 small peaches
VITAMIN EAs much Vitamin E as 25 pieces of whole almonds
FIBERAs much fiber as1 small apple
CALCIUMAs much calcium as1.5 cups of cottage cheese
VITAMIN AAs much Vitamin A as ! cup of cooked broccoli
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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
MARK HUGHES (1956–2000), Herbalife’s Founder and First Distributor
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HERBALIFE IS WORLDWIDE – IN OVER 90 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 CAMBODIA CZECH REPUBLIC RUSSIA INDONESIA CHINA EL SALVADOR LEBANON KYRGYZSTAN REPUBLIC HONG KONG TAIWAN BOTSWANA CROATIA ZAMBIA MONGOLIA REPUBLIC OF AZERBAIJAN
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1980 1984 1996 2004 2006 2010 2011 2012
2M 423M
1.2B
2.1B
3.1B
4.3B
5.4B
6.4B
CONSISTENT YEARLY SALES GROWTH Over 3 decades in business
Over $6.4 billion suggested retail sales in 2012
$1 billion suggested retail sales growth from 2011 to 2012
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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
MICHAEL O. JOHNSON Chief Executive Officer
15 *Titles are for idenGficaGon purposes only. The University of California does not endorse specific products or services as a maMer of policy.
†The Nobel FoundaGon has no affiliaGon 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, 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
Distinguished Professor of Pharmacology at the UCLA* School of Medicine
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NUTRITION ADVISORY BOARD The NAB is comprised of leading experts around the world in the fields of nutrition and health who educate Herbalife Members and, in China, sales employees, on the principles of nutrition, physical activity and healthy lifestyle.
Nutrition Advisory Board Nutrition Advisory Board Nutrition Advisory Board
Nutrition Advisory Board
Nutrition Advisory Board
Nutrition Advisory Board Nutrition Advisory Board
Nutrition Advisory Board
Nutrition Advisory Board Nutrition Advisory Board
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Sponsored Athletes
Sponsored Events
Sponsored Teams
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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
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TOTAL NUTRITION
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Changing people’s lives since 1980 using TOTAL NUTRITION • Weight Management • Digestive Health
• Heart Health • Stress Management
• Immune Health
• Women’s Health • Healthy Aging
• Men’s Health • Children’s Health
• Energy & Fitness • Outer Nutrition
Cellular Nutrition
PERSONALIZED NUTRITION
Good health through Herbalife® CELULAR NUTRITION • Our body is made up of
over 100 trillion cells
• Cells form tissues • Tissues form organs
• Organs form body systems • The systems working together
make up a human being
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INCREDIBLE PRODUCT RESULTS
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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
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INCREDIBLE PRODUCT RESULTS
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GREAT PRODUCTS.
GREAT BUSINESS.
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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:
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BUSINESS SUCCESS RESULTS
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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, plus applicable sales tax, shipping and handling) 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.
(1) Based on a Member research survey conducted in the USA by Lieberman Research Worldwide, January 2013, with a margin of error +/- 3.7%.
(2) 90 days on the return of the HMP and one year on the return of resalable inventory, upon leaving the business.
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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 1, 2011, requalified by February 1, 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 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.
Single-Level Members (No Downline)
Economic OpportunityMembers*
The economic rewards for single-level 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 non-Members. Neither of these rewards are payments made by the company and therefore are excluded from this schedule.
Number %
351,065 71%
Non-Sales Leaders** With a Downline
Economic OpportunityMembers
In addition to the economic rewards of the single-level Members above, which are not included in this chart, certain non-sales leader Members with a downline may be eligible for payments from Herbalife on downline product purchases made directly with Herbalife.
2,466 of the 4,449 eligible Members earned such payments in 2012.The average total payments to the 2,466 Members was (USD)104.
Number %
another Member
60,333 12%
Sales Leaders** With a Downline
Economic Opportunity
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 from Herbalife (USD)
Number of Members
% of Total Grouping
Average Gross Payments
(USD)
another Member
downline sales
82,464 17%
>250,000 194 0.2% 724,030
100,001-250,000 452 0.5% 148,808
50,001-100,000 539 0.7% 68,912
25,001-50,000 1,136 1.4% 35,581
10,001-25,000 1,940 2.4% 15,538
5,001-10,000 2,552 3.1% 7,008
1,001-5,000 11,307 13.7% 2,216
1-1,000 39,151 47.5% 292
0 25,193 30.6% 0
Total 82,464 100.0% 4,485
*30,621 of the 351,065 single-level 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.StartHerbalife.com.
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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 and Profit Potential
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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Your Marketing Plan
*For complete qualification details, refer to your IBO. †It is not necessary to become a Senior Consultant, Success Builder or Qualified Producer before qualifying as a Supervisor. For complete qualification details, refer to your IBO.
Founder’s Circle
Chairman’s Club
President’s Team
Millionaire Team
Global Expansion Team
World Team
Supervisor
Qualified Producer
Success Builder
Senior Consultant
Member
10 first-line, Fully Qualified President’s Team members* in 10 separate lines of your downline organization
5 first-line, Fully Qualified President’s Team members* in 5 separate lines of your downline organization
10,000 Royalty Override Points in 3 consecutive months, all of the benefits of a Supervisor PLUS 2% to 6% Organizational Production Bonus, qualify for special Vacation and Training Events
4,000 Royalty Override Points in 3 consecutive months, all the benefits of a Supervisor PLUS 4% or 2% Organizational Production Bonus, qualify for special Vacation and Training Events
1,000 Royalty Override Points in 3 consecutive months, all the benefits of a Supervisor PLUS 2% Organizational Production Bonus, qualify for special Vacation and Training Events
2,500 Volume Points in each of 4 consecutive months or 10,000 Volume Points at 50% in 1 month or 500 Royalty Override Points in 1 month
2,500 accumulated Volume Points in 1 to 3 months, all orders must be purchased directly through Herbalife, 42% Retail Profit, 7% or 17% Wholesale Profit†
Receive a 42% discount on a 1,000 Volume Point order and on additional orders during the same Volume Month†
Minimum 500 Volume Points in 1 month, 35% or 42% Retail Profit, 7% or 17% Wholesale Profit†
25% Retail Profit, Member HAP; 35% to 42% Retail Profit
4,000 Volume Points (VP) in 1 month or 2,500 in each of 2 consecutive months (with a minimum of 1,000 of t hose VP unencumbered each month), or 5,000 accumulated VP within 12 months, with a minimum of 3 months required, 50% Retail Profit, up to 25% Wholesale Profit, earn up to 5% Royalty Override on three levels
TAB Team: Top Achievers
Business Team
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HERBALIFE GIVES BACK
Helping children around the world.
Over 90 CASAs in 50 countries.
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GET STARTED WITH AN HERBALIFE 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 others • Do business in over 85 countries • Opportunity for personal and financial growth • Change lives!
ALLOWS YOU TO:
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GREAT PRODUCTS! GREAT BUSINESS!
Products MarketingPlan
YOU
Your past doesn’t determine your future!
• In Business Over 3 Decades
• Open In Over 85 Countries
• Us$5.4 Billion Suggested Retail Sales In 2011
• Over US$6.4 Billion Suggested Retail Sales In 2012
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• A) Get started on the products ✓ Look better and feel better
• B) Start part time to supplement your income ✓ Work around your current schedule
• C) Run your business as a full-time occupation
YOUR NEXT STEP – Make a decision on your ultimate goals:
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3 GLOBAL MEGATRENDS
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© 2013 Herbalife InternaGonal of America, Inc. All rights reserved. USA. BUS19656-‐USEN-‐00 12/13