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Statement of Average Gross Compensation of U.S. Supervisors in 2003

HerbalifeoffersitsDistributors anopportunity toachievealifetimeofbetterhealth throughitsscientifically advancedweight-managementandnutritionproducts.While manyofourDistributorsjointheHerbalifefamilysimplytoenjoyourlife-changing products,otherswanttosharetheirresultsandtakeadvantage ofthemanyincome benefitsourbusinessopportunity provides.WithHerbalife,youcanworkparttime andearnasupplementalincomeorfocussolelyonyourHerbalifeDistributorship andincreaseyourfinancialpotential.It’scompletelyuptotheindividualhowmuch heorshewantstoachieve!

 

ADistributorearnsprofitsbybuyingHerbalifeproductsatwholesaleandreselling thematretail.IftheDistributorwantstoincreasehisorherinvolvement inthe businessandenjoythepossibilityofhigherlevelsofincome,heorshemaysponsor othersintothebusinessanddevelopanorganization.

 

Over25%ofDistributors reachtherankofSupervisorandabove(“Leader”), qualifyingthemforadditionalcompensationwhichispaidbyHerbalifebasedupon the salesproductionof thosethey havesponsoreddirectlyandindirectly.Theannual grosscompensation paidbyHerbalifetoLeadersduring2003averaged approximately$2,400. Over40%ofSupervisors are“Active”(definedasthosewho generated atleast2,500pointsofvolumein2003afterbecoming Supervisor). The annual gross compensation paid by Herbalife to Active Leaders during 2003 averagedapproximately$5,600.

 

LEADERSHIP LEVEL
EARNING LEVEL %OFTOTAL LEADERS %OFACTIVE LEADERS AVERAGE- GROSS COMPENSATION
President’s Team 0.2% . 0.4% $ 617,983.00
MillionaireTeam 0.5% 1.1% $ 103,277.00
GET 1.9% 4.4% $   22,960.00
WorldTeam 2.8% 6.5% $     5,657.00
Supervisor 94.7% 87.6% $         561.00
Total(AllLeaders) 100% N/A $    2,382.00
Total(AllActive

Leaders)

N/A 100% $    5,604.00

 

The amountsaboveare inadditiontoand donot includeprofitsearnedontheresale ofproductstoconsumersorotherDistributors.

 

Thefiguresstatedabovearenotaguaranteenoraretheyaprojection ofatypical Distributor’searningsorprofits.Likeanyotherindependent business,the achievementorfailureofaDistributordependsuponhisorherskillset,commitment anddesire tosucceed.AtHerbalife,theopportunitytoearnmoreisalwaysavailable toeachandeveryDistributor.