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Statement of Average Gross Compensation of U.S. Supervisors in 2005

Herbalife offers its Distributors an opportunity to achieve a lifetime of better health through  its scientifically advanced weight-management and nutrition products. While many of our Distributors join the Herbalife family simply to enjoy our life-changing products, others want to share the irresults and take advantage of the many income benefits our business opportunity provides. With Herbalife, you can work part-time and earn a supplemental income or focus solely on your Herbalife Distributorship and increase your financial potential. It’s completely up to the individual how much he or she wants to achieve! A Distributor earns profits by buying Herbalife products at wholesale and reselling them at retail. If the Distributor wants to increase his or her involvement in the business and enjoy the possibility of higher levels of income, he or she may sponsor others in to the business and develop an organization.

Over 25% of Distributors reach the rank of Supervisor and above (“Leader”), qualifying them for additional compensation which is paid by Herbalife based upon the sales production of those they have sponsored directly and indirectly. The annual gross compensation paid by Herbalife to all Leaders during 2005 averaged $2,200. Over 42%of Supervisors are “Active” (defined as those who generated at least 2,500 points of volume in 2005 after becoming Supervisor).   The annual gross compensation paid by Herbalife to Active Leaders during 2005 averaged approximately $5,100.

 

 

 

ACTIVELEADERS

Earning

Level

%ofTotal

Leaders

%ofActive

Leaders

Average

Earnings(USD)

 

President’sTeam MillionaireTeam GET

WorldTeam

Supervisor

 

 

Total

 

0.2%

0.5%

1.9%

3.5%

36.4%

 

 

42.4%

 

0.4%

1.2%

4.5%

8.2%

85.8%

 

 

100.0%

 

$       567,899

$        98,225

$        21,990

$          4,683

$             472

 

 

$          5,196

 

 

The amounts above are in addition to and do not include profits earned on the resale of products to consumers or other Distributors.

 

The figures stated above are not a guarantee nor are they a projection of a typical Distributor’s earnings or profits. Like any other independent business, the achievement or failure of a Distributor depends upon his or her skillset, commitment and desire to succeed. At Herbalife, the opportunity to earn more is always available to each and every Distributor.