Business Plan Resources
Distributor – A person, pr couple, who is registered as a Herbalife Distributor. Being registered as a distributor does not require the distributor to actually distribute. It signifies that the person is registered on the Herbalife computer and so is qualified to receive a 25% discount on purchases.
Distributor Application Form. - This is the form that allows you to register as a Herbalife distributor. The Distributor Application must be filled out with your details and the details of the existing Herbalife distributor who is sponsoring you. Once that is submitted and accepted by Herbalife you will be registered in every country where Herbalife is trading.
Consultant – A distributor who is receiving 25% discount.
Discount Customer – A distributor who does not distribute but only purchases product for personal and family use.
Senior Consultant – A distributors who has qualified for higher discounts than the base 25% but who is not yet supervisor.
Supervisor – A distributor who has qualified for the Supervisor discount of 50%. A supervisor is also entitled to receive Wholesale profit on the business they produce and Royalty income for the business under supervisors in their business. Supervisors are the core building block of the Herbalife company.
World Team – A distributor who has achieved the Qualification of World Team. This is someone who has shown the signs of being a leader and is on the path to qualifying as one of the Herbalife Leadership team, The Tabulator Team (Tab. Team). First step in the TAB Team is GET Team.
Tab Team – The Tabulator Team. The Tab. Team is the distributors who have built an organization of their own and are qualified to receive the 2% leadership bonuses. 2% bonuses are paid out at each of the leadership levels of GET Team, Millionaire Team and President Team.
GET Team - Global Explanation Team. As the name suggests this is the leadership base who are actively growing their businesses and expanding Herbalife across the globe. GET Team members tend to be making good money and may be working with Herbalife full time. The focus of their activity to this point has been mainly on building their personal wholesale and retail business and a small team of distributors to “do what they did” and establish their own business with the team.
Millionaire Team – Millionaire Team is based on the distributor doing annually around a Million Volume Points of business that they are paid their 2% leadership bonus on. The Millionaire Team are generally making enough money not to need to work in any other area if they chose not to. They will generally be focusing their activity on helping others in their business to “Do what they did” themselves and to build a business that will set them free financially. The only way for a Millionaire Team member to progress to President Team is to help others in their group become successful so the Millionaire Team in Herbalife tend to focus a sizable portion of their activity on training and supporting their key people and the balance of their time on supporting retail customers and assisting new distributors they personally sponsor to get started.
President Team – The President Team are the main leaders in the Herbalife company. They are generally earning in excess of US$40,000 a month though top incomes are in excess of $500,000 a month. These leaders have a direct involvement in setting the plans, promotions and policies for the country they are in. While Herbalife has a basic structure of ethical standard and keeps the market plan the same world wide, the style of training and running of the corporate events are overseen by the President Team members.
Executive President Team – Once a President Team member has a member of his own business also become a President Team member then he/she becomes an Executive President Team member and can qualify for addition bonuses that Herbalife pay of their world wide business.
Chairman’s Club – When a President Team members has 5 separate lines of his/her business that have President Team members in them then they join the Chairman’s Club which forms a global Think Tank that Herbalife works extremely closely with to develop the company globally.
Founder’s Circle - When a President Team members has 10 separate lines of his/her business that have President Team members in them then they join the Founder’s Circle as the Founder of Herbalife, Mark Hughes, was the first distributor to achieve this. The Founder’s Circle is an extremely elite group with Herbalife and is totally based on the distributor’s activity in achieving the qualification.
Market Plan Terms
Volume Points – Volume points are the way Herbalife tracks and compares it’s business world wide. An individual health product can be purchased in USA for American Dollars, in Malaysia for Ringgits, in Europe for Euros, in Zambia for Kwacha. When you have an international business and you are doing business in all these countries at the same time then it is difficult to track. Herbalife places a volume point value on each product and that becomes the effective “International Herbalife Currency”. This is used to measure all qualifications for Herbalife. Converting the volume points back to money is the job of the Herbalife computers so your business is tracked with volume points but you are paid on local business in your local currency and on international business payment is generally in American dollars.
Personal Volume – Volume points ordered where your distributorship was the first active supervisor (that means your own orders and any orders placed by any of your distributors anywhere in the world that you are paid wholesale profit on.
Group Volume – When someone in your group is qualifying as a Supervisor and they achieve 50% discount status and order additional volume in their qualifying month at 50% then you do not receive any wholesale profit on the order. To ensure that “Those who do the work get the pay” Herbalife still pay you on that volume but it is paid as a 5% royalty income and called Group or Trapped volume.
Total Volume – Personal Volume plus Group volume.
Organizational volume – The volume points that you are paid the 5% Royalty Override bonus on. (This is also sometimes referred to as Royalty volume)
Royalty Volume – The volume points that you are paid the 5% Royalty Override bonus on. (This is also more correctly referred to as Organizational volume)
Royalty income - is an ongoing payment based on the value of the work you did earlier, like the royalty authors are paid on their books every time someone buys one, or music artists. The songs the Beatles recorded back in the 1960’s still generate royalty income evey time one is played on the radio.
Royalty Override Points – If you have 10,000 volume ordered by supervisors in your group and you are to receive your 5% royalty on that business then 5% of 10,000 volume is 500 royalty override points
Production Bonus – The 2% leadership bonuses that are paid to the Tabulator Team are called Production Bonuses.
Infinite level bonus – This refers to the Tabulator Team Bonuses (Production Bonus). For example the President Team earns an additional 2% on the business they have built. Effectively Herbalife, from their half of the money from sales, set aside 2% of the retail value of all products sold. This 2% is taken up the sponsorship line and given to the first qualifying President Team member. There is no limit on how far this goes so if there are 101 layers of sponsorship between the sale and the first President Team member then it is taken there. (In Herbalife that separation is rarely more than 5 or 6 layers.
Roll Ups on royalty – If a supervisor in your group does not qualify for their full 5% in royalty. bonuses then the unclaimed percentage “rolls up” to the supervisors above.
Front line distributor – Personally sponsored distributor.
3 Layers deep – The three layers of active supervisors that you are paid the Royalty override 5% on.
IBP - The term IBP refers to an International Business Pack. An IBP is the only way to obtain a Distributor Application Form. This is the form that allows you to register as a Herbalife distributor. The Distributor Application must be filled out with your details and the details of the existing Herbalife distributor who is sponsoring you. Once that is submitted and accepted by Herbalife you will be registered in every country where Herbalife is trading. The IBO also contains rules and regulations on how Herbalife functions and details about doing business in your country.
HOM – Herbalife Opportunity Meeting. A short meeting that tells the Herbalife story and gives an overview of products and business. It will normally include testimonials from the room of people who have used the products telling their personal stories and people in the business talking about the results they have achieved.
STS – Success Training Seminar. Full training of all the products and how they work and detailed information on how to do business in your area, from the way the market plan works, through how to make and support retail sales on to how to build a team of your own within your business.
Extravaganza – International Training normally held over a weekend with leadership training on preceding days. This is a large event and held once a year in each region of the world.
Flier – A small advertisement that can be put into a letterbox or handed to people who may be interested in products or business
Pull Tab – a sheet, normally A4, that has an advertisement on it for product or business and also has a line of pull off tags with your name and phone number on it so that interested people can “pull” of a tag and telephone you later.
Three way calling – A way of using a phone to connect 3 people. Normally this is used when a distributor needs assistance and asks a sponsor to get on the phone with both them and their prospect so the 3 cal talk together. This answers the question for the prospect and trains the distributor at the same time.
NRG – NRG is the targeted nutrition product, Nature’s Raw Guarana.
Sponsor – The person or couple who sponsored you to allow you to join Herbalife.
2nd, 3rd sponsor – The sponsor of your sponsor and then their sponsor. That is the sponsors above the one on your distributor form. 2nd & 3rd layer sponsors earn royalty override on the half of the money that Herbalife keeps from your personal volume. This means they are important as they want to see you success as your success is also their success. They are a good source of information and support.
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