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  "docSlug": "886ebab3088d",
  "documentTitle": "Herbalife, Ltd. (HLF)",
  "authorId": "01_Pershing_Square",
  "authorName": "William Ackman",
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  "presentationDate": "2012-12-20 00:00:00",
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  "notes": "The slide uses a pyramid graphic to illustrate the hierarchy and explicitly calls out the requirement for recruitment.",
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      "kind": "callout",
      "text": "Distributors cannot advance past this line w/o recruiting",
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      "text": "It is impossible for a distributor to get to Active World Team or above without recruiting other Sales Leaders – no matter how much they sell at retail",
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      "text": "One VP is approximately equivalent to $1 of \"Retail Sales\". Over time this ratio has increased to greater than 1:1, which is a way for Herbalife to \"increase price\" to its distributors.",
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      "text": "To get to the upper levels of the Herbalife chain, distributors must accumulate a special kind of volume known as Royalty Override Points (\"ROPs\")",
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      "text": "Royalty Override Points can be generated only when a Sales Leader recruits other distributors who also become Sales Leaders",
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      "text": "In order to advance in the Marketing Plan, distributors must accumulate Volume Points (\"VPs\"), a form of \"currency\" created by Herbalife",
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      "text": "How Distributors Move Up the Chain: Volume Points",
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