GOLD STANDARD PROTECTIONS INTRODUCTION As Herbalife Nutrition continues to grow, we are proud to provide our Distributors with the Gold Standard in consumer protection. It is important you integrate these Gold Standards into your business and in your Customer interactions every day; to protect yourself and the Herbalife Nutrition brand for the years to come. TABLE OF CONTENTS • Gold Standard Guarantees • U.S Statement of Average Gross Compensation 2018 • Business Tools and Other Optional Expenses • The Herbalife Nutrition Satisfaction Guarantee GOLD STANDARD GUARANTEES HERBALIFE NUTRITION PROVIDES THE GOLD STANDARD GUARANTEES 1. There are no minimum purchases required and start-up costs are low. 2. There is a fully refundable, 12-month money back guarantee for the cost of the International Business Pack if Distributorship is canceled for any reason, including the shipping cost to return the Pack. To obtain a refund, Herbalife Nutrition Independent Distributors may call Herbalife Nutrition at 866-866-4744 or submit the refund form available at MyHerbalife.com (http://hrbl.me/InventoryRefund). 3. There is a 100% refund guarantee on unopened products, including taxes and handling costs, that were purchased in the previous 12 months if Distributorship is canceled for any reason. The cost of shipping, both the initial delivery and return shipping, will also be refunded. To obtain a refund, Distributors may call Herbalife Nutrition at 866-866-4744 or submit the refund form available at MyHerbalife.com (http://hrbl.me/InventoryRefund). 4. There is no requirement to purchase any sales and business tools to start up or succeed in your Herbalife Nutrition Distributorship. 5. We clearly define the benefit of each product and appropriate method of use directly on the product label–we want to make absolutely sure that the right products are taken the right way to achieve realistic results. We provide realistic expectations of the business opportunity and the effort required to succeed at all levels. 6. We provide clear, accurate and timely disclosures to prospective Distributors regarding potential income. Herbalife Nutrition and our Distributors are committed to the highest standards of ethical behavior. If you become aware of any unapproved claims related to Herbalife Nutrition products, representations relating to the business opportunity that are not aligned with Herbalife Nutrition Statement of Average Gross Compensation, or other questionable behavior by another Distributor, please contact Herbalife Nutrition at 866-866-4744. Back to Top What shouLd i knOw AbOut beinG an HeRbaLiFe NuTRition indePendeNt diStributoR? As an Herbalife Nutrition Distributor, you can participate in three ways: • You can buy Herbalife Nutrition products at a discount for your own or household use. • You can sell Herbalife Nutrition products to make a retail profit. How can I participate? • You can recruit others who want to consume or sell Herbalife Nutrition products. If your only purpose in joining Herbalife Nutrition is to receive a discount on the products, you have the option to join as a Preferred Member. Most people join Herbalife Nutrition as Preferred Members at a cost of $34.95 and do not participate in the business. A Preferred Member may convert to Distributor and build a business at any time by buying a Conversion Pack for $59.95 and completing the required Distributor training. • There are no required purchases other than the initial Distributorship kit also known as the International Business Pack ($94.10) or International Business Pack - Super Starter ($124.10). • Distributors enjoy setting their own schedule and choosing how and when to work. What should I know about • Most people start their Herbalife Nutrition business by working part-time and selling to people they know or the business opportunity? people they meet as a way to make a little extra money. • There are no guarantees that you will earn money. Like all business people, some Distributors will succeed, while some will not. • Building a successful Herbalife Nutrition business takes skill, hard work, and time. You can earn money by selling Herbalife Nutrition Suggested Retail price $41.20 products that you buy at a discount. Your initial Distributor price – $31.42 discount is approximately 25%. The more you sell, the higher your discount, up to a maximum of 50%. (with initial discount and before shipping and tax) For example, the initial discount on Formula 1, ______________________________ How can I earn money? Herbalife Nutrition’s best-selling product is shown Potential profit $ 9.78 on the right: • If you buy at this initial discount and sell 10 canisters at the Suggested Retail Price, passing along shipping and taxes, you would make $97.80 before expenses. • You can also earn money from the sales of people you sponsor. • You cannot earn money by only recruiting or only sponsoring other Distributors. In 2018, about 136,000 U.S. Distributors ordered products for resale from Herbalife Nutrition in one or more months and about 125,000 of them earned money from their sales and the sales of those they sponsored. In a typical month, about 62,000 earned money, including those making supplemental income. Here is what they earned in a typical month, before expenses. First year Distributors (about 20,000) All other Distributors (about 42,000) (about half earned in 6 or more months in 2018.) (about half earned in 8 months or more in 2018). How much can I earn 50% (about 10,000) earned more than $170 50% (about 21,000) earned more than $265 in a typical month? Top 10% (about 2,000) earned more than $900 Top 10% (about 4,200) earned more than $3,200 Top 1% (about 420) earned more than $14,270 Top 1% (about 195) The Top 1% of Distributors are typically earned more than $2,940 President’s Team members. The time it took them to reach President’s Team typically ranges between 5 and 11 years. Requires skill, consistent work and dedication. • You can cancel your Distributorship at any time. If you are in your first year, you can cancel and receive a full refund of your International Business Pack. What if it doesn’t • If you cancel your Distributorship, you can return unopened products you purchased within the last year for a work for me? full refund. We even pay for shipping. • Please contact 866-866-4744 for more information. U.S. STATEMENT OF AVERAGE GROSS COMPENSATION 2018 Back to Top Published: July 18, 2019 BUSINESS TOOLS AND OTHER OPTIONAL EXPENSES One of the great things about being an Herbalife Nutrition Distributor is that you can choose for yourself how to pursue the Herbalife Nutrition opportunity. The only thing you need to buy is an International Business Pack (IBP), and all other purchases are completely optional. Before you make any additional expenditures, please ask yourself questions such as these: Debt Should I take on debt to pursue the Herbalife Nutrition opportunity? Because there are no minimum purchases required and start-up costs are low, you do not need to borrow money or take out loans for your Herbalife Nutrition business. We strongly discourage taking on debt in connection with your Herbalife Nutrition business. Please see Rule 1.1.2 Debt Discouraged for more information. Business Tools Should I buy services, products, software or systems that might help me run my Herbalife Nutrition business? “Business Tools” are third party services or products that may help you promote, grow, and/or manage your direct sales business. They can be geared toward getting Customers, recruiting other Distributors, communicating with Customers or Distributors, or financial management, among other things. Whatever the purpose, Business Tools are not required to start, progress or succeed as a Distributor or to receive training and support from your Sponsor and upline. No one should tell you that Business Tools are required or pressure you to buy them. Retailing Herbalife Nutrition products to Customers is the core of a successful Herbalife Nutrition business, and Business Tools might distract you from this focus. Herbalife Nutrition offers comprehensive business management tools for free or at a nominal cost. Our tools are designed to meet your needs and help you run a successful and compliant Herbalife Nutrition business. We strongly advise that you only buy Business Tools if you decide, after a reasonable amount of time as a Distributor, that their cost is justified by their expected benefit to your business, in light of your actual earnings from Herbalife Nutrition. Please also keep in mind that if you buy Business Tools, you will be responsible for how you use them and for their compliance with Herbalife Nutrition’s Rules of Conduct and the law. In addition, because they are not produced or endorsed by Herbalife Nutrition, we take no responsibility for them. However, if you have a dispute over Business Tools you have purchased with a seller who is a Distributor, please contact Herbalife Nutrition at 866-866-4744 and we will attempt to assist. Back to Top BUSINESS TOOLS AND OTHER OPTIONAL EXPENSES Please see Rules of Conduct 1.1.1 Restrictions on Purchase Requirements, 1.1.2 Debt Discouraged, 3.3 Business Tools and 5.1.1 Training for more information. Product Inventories Should I buy a large product inventory? Buying a large product inventory is not required. Through MyHerbalife.com, Distributors can have products shipped directly to their Customers, and GoHerbalife.com allows Customers to order products themselves. This means that you don’t need to hold a large product inventory to meet your Customers’ needs. However, if you choose to keep a limited product inventory to sell to Customers or serve in your Nutrition Club, please make sure you only purchase what you know you can resell within a reasonable amount of time.