US/Puerto Rico Earnings and Total Volume Acknowledgement
On May 1st 2017, there will be significant changes in the U.S. & Puerto Rico (PR).
These changes will affect you if you place an order in the United States or PR and are relying on the volume for your qualification to earn, worldwide earnings, discount advancement, Sales & Marketing Plan levels, promotions, etc.
What is the change?
Effective May 1st 2017, if you plan to rely on U.S./PR volume for your qualification to earn or for any other qualification, you must ensure that the U.S./PR volume is “Documented.”
What is Documented Volume (DV)?
DV includes profitable, receipted sales to customers in the U.S./PR, purchases by Preferred Members, and purchases in other countries by you and your downline Distributors.
Purchases in the U.S./PR for personal consumption and purchases for retail sale where a receipt was not generated will NOT count as Documented Volume.
There are six ways to accumulate Documented Volume:
Profitable retail sales supported by valid receipts submitted to Herbalife.
Orders placed directly with Herbalife by your downline Charter Preferred Members and Preferred Members.
Your personal purchases outside the United States and Puerto Rico (if this is your normal purchasing habit).
Your downline’s profitable retail sales that contribute to your Personal Volume and are supported by valid receipts submitted to Herbalife.
Orders placed directly with Herbalife by your downline’s Charter Preferred Members and Preferred Members.
Your downline Distributors’ purchases made outside the United States and Puerto Rico (if this is their normal purchasing habit).
If you are relying on this volume to qualify to earn on both your U.S./PR and Worldwide earnings, these new rules could potentially impact your qualification if your U.S./PR purchases are not documented. As a result, we have decided to place certain limits on the ability of International Distributors to place an order in the U.S. & Puerto Rico.
There are two major reasons for this change:
To support the U.S./PR requirement to attain 80% Primary Rewardable Volume. We must achieve this 80% threshold under the FTC Order in order to pay out 100% on the Sales and Marketing Plan. This is an absolute must.
To protect the income of International Distributors with U.S. business, whose earnings could be adversely impacted by U.S./PR product purchases without the proper receipts.
Effective April 28th 2017, International Distributors who do not have a U.S. or PR address on Herbalife’s records will only be able to place the following orders to support their customer sales:
Customer Direct orders with the creation of a receipt with this order*
Customer orders via the Distributor’s GoHerbalife website (if applicable)
*If the order is being shipped directly to your customer in the U.S. or Puerto Rico, you will be asked to provide the customer’s information and the price you charged the customer. The receipt will be generated and submitted automatically if you include the required information.
We will no longer accept personal consumption orders or retail inventory orders in the U.S. for any International Distributor; this includes orders when at events or when visiting the U.S. or Puerto Rico.
We thank you for your understanding and your support as we work together to ensure a successful implementation of the FTC order in the U.S./PR.
How do I submit receipts to Herbalife?
Place a customer direct order that is shipped to your U.S./PR customer (direct ship order). The receipt will be generated and submitted automatically if you include the required information.
What if I don’t live in the U.S./PR?
It doesn’t matter if you don’t live in the U.S./PR. What matters is where you or your downline are placing the orders. If you or your downline are placing orders in the U.S. or PR, these rules apply.
This may affect your qualification to earn (earning percentage) on both your U.S./PR and worldwide earnings.
If you have 2,300 VPs outside of the U.S./PR and 200 Volume Points within the U.S./PR, the 200 Volume Points will only count toward your 2,500 qualification to earn if it is documented
If the 200 Volume Points is not Documented Volume, the volume will NOT count toward your worldwide qualification to earn and you will only have 2,300 DV and only earn 4% Royalty Override and ZERO Production Bonus (if applicable)
This 4% Royalty Override percentage level of earnings and ZERO Production Bonus will also apply to your WW RO and PB