Preferred Member

Frequently Asked Questions

Q1: What are the benefits of becoming a Preferred Member?

A1: Preferred Members have the following benefits:

• Access to MyHerbalife.com website for ordering of product and personal profile

information, including accumulated Points and status
• Access to an upline Herbalife Nutrition Independent Distributor/Wellness Coach
• Access to an exclusive rewards program, HN Rewards. Whenever Preferred
Member shops Herbalife Nutrition® products, they will earn Rewards Points* to
redeem toward exciting prizes.
• Receive communications that support product usage and inform you about
special promotions to support product results and purchase loyalty
• Access to exclusive content like product announcements, specialized recipes,
fitness tips and more on MyHerbalife.com or in The Scoop, a monthly email
newsletter just for Preferred Members
• Sales tax on Preferred Member’s actual purchase price after discount, instead of
the product’s Suggested Retail Price (SRP)†
• 30-day, money-back guarantee on product purchases
• Achieve higher product discounts based on Points accumulated from prior
purchases
• No requalification required to maintain discount levels achieved
• If a Preferred Member decides to become a Distributor, they will maintain their
discount only for Personal Consumption purchases while purchases for retail
sales will start at the 25% level

Q2: How quickly will a Preferred Member receive their benefits?

A2: A Preferred Member can receive their benefits once their enrollment form is signed
and a Preferred Member unique ID number has been assigned.

Q3: Is there an age requirement to become a Preferred Member?

A3: Legal age requirements may apply based on local requirements. Please refer to
your Preferred Member application for details.

Q4: Can a Preferred Member add their spouse to their account?

A4: Adding a spouse to the Preferred Member account is not permitted. The Preferred
Member may purchase product for their entire household.

Q5: Will a Preferred Member have an upline Sponsor?

A5: Yes. All Preferred Members will have a Sponsor who is an Herbalife Nutrition
Independent Distributor.
Q6: What happens if the upline Sponsor of a Preferred Member leaves the
business?
A6: If the Preferred Member’s Sponsor leaves the business, their next upline Sponsor
will automatically become the Preferred Member’s new Sponsor.

Q7: How does a Preferred Member place an order?

A7: A Preferred Member can place an order directly on MyHerbalife.com, over the
phone with Member Services, or using any of the available ordering methods in their
country.

Q8: Can a Preferred Member order directly from Herbalife Nutrition or do they
need to contact a Distributor?
A8: Preferred Members can order directly from Herbalife Nutrition. A Preferred Member
may also order product directly from a Distributor; however, the Points associated with
the order will not accumulate toward the Preferred Member’s total Points or next
discount level.

Q9: Can a Preferred Member purchase Herbalife Nutrition® product in any

country?
A9: Preferred Members may only purchase product in the country where they reside
and only in the country covered by their Preferred Membership agreement.

Q10. What will the process be if a Preferred Member moves to another country
that also has the Preferred Member program available?
A10. If a Preferred Member moves to another country where the Preferred Member
program is also available, they will need to complete a new country-specific Preferred
Member agreement for the country they are moving to, as some of the policies may
differ by market. Their Preferred Member ID number will remain the same.

Q11: What is the Preferred Member qualification scale to achieve higher

discounts on product purchases?
A11: Qualifications may vary by country. Please refer to your account on
MyHerbalife.com to see the discount levels and requirements available in your country.

Q12: Does a Preferred Member (PM) need to requalify to keep their discount
levels?
A12: Preferred Members are not required to requalify to keep their discount levels.

Q13: Where will the Preferred Member Points be displayed?

A13: Points achieved will appear on MyHebalife.com when you log in to your account.

Q14: Is a Preferred Member required to pay an Annual Fee?

A14: Yes, in most countries there is an annual renewal fee for Preferred Membership
renewal.
Q15: When is the Annual Fee due and what happens if the Annual Fee is not
paid?
A15: The annual renewal fee is due on the one-year anniversary of the original
application date and every year thereafter. If the fee is not paid, then the Preferred
Membership will be terminated and all benefits will cease.

Q16: Can the Preferred Membership be terminated?

A16: Yes, the Preferred Member agreement may be terminated by either the Preferred
Member themselves or by the company.

Q17: Can Preferred Members sell or retail product?

A17: Preferred Members are only allowed to place orders for Personal Consumption
and may not retail the product they purchase. If they are interested in retailing the
product, they should speak to their upline Sponsor about converting to a Distributor.

Q18: Can a Preferred Member recruit?

A18: Preferred Members are not allowed to recruit new downline Distributors nor refer
new Preferred Members.

Q19: Are Preferred Members able to receive compensation, such as Commissions

or Royalties?
A19: Preferred Members are not eligible to receive any form of compensation from
Herbalife Nutrition, including Commissions or Royalties.

Q20: How can a Preferred Member change their upline Sponsor?

A20: Sponsor changes are not permitted for Preferred Members. A Preferred Member
may wait their Period of Inactivity (POI) and sign up as a new Preferred Member under
a new Sponsor, which will require the purchase of a new PM Pack.

Q21: What is the Period of Inactivity for a Preferred Member?

A21: The Period of Inactivity is normally 180 days. This means that a Preferred Member
must be inactive (no orders placed directly with Herbalife Nutrition) for a period of 180
days before they can request a change in their upline Sponsor by signing a new
agreement.

Q22: Can a Preferred Member convert to a Distributor?

A22: Yes, the Preferred Member will need to purchase a Conversion Pack. Converting
from Preferred Member to Distributor will also require that a new agreement is signed.

*HN Rewards Points have no cash value and can only be redeemed for rewards within the HN Rewards Store. Subject to Terms
and Conditions at MyHerbalife.com.
†This is not intended to constitute tax advice. If you have any questions, we suggest that you consult your qualified tax advisors.