A Venture Expert’s Advice

A Venture Expert’s Advice www.neverbedownsized.com Dr. Charles King… • He has a doctorate in business from Harvard • Marketing professor at the University of Illinois • A strategic planning consultant • 25 years of research in entrepreneurial ventures • An expert on the network marketing industry What do we need to know about the Company itself? www.neverbedownsized.com Look at the sales history: • Is the company in rapid growth, or has it reached a plateau? • Is it successfully creating new products and diversifying? What do we need to know about the Company itself? www.neverbedownsized.com The company should be: • Financially stable, and ideally, debt free • A track record of three to five years’ operation • Be a member of the Direct Selling Association (DSA) without current regulatory problems. What do we need to know about the Company itself? www.neverbedownsized.com On compensation: • The ideal plan allows you to recruit as many people as you can onto your front line. • Better plans also pay commissions on five or more levels • Each additional level can geometrically increase your income How should people analyze a particular company? www.neverbedownsized.com Thousands of companies have come and gone in the past 20 years. The failures happen because of weak products, weak management, and not enough capital. 4100+ Companies Have Come and Gone There are 202 companies currently listed with the Direct Selling Association 152 are Multi-level Compensations 29 Companies Annual Revenue 100 Million+ ACN Shaklee Sunrider Arbonne Usana Amway WMA Forever Living Herbalife Xango *Cambridge* Mannatech *Equinox* Melaleuca NSA *Excel* Nature’s Sunshine *Matol* New Vision Int’l *Morinda(Noni)* Nikken *Quorum Noevir * Rexall Nu Skin *Sky Biz *United Science Of America Pre-Paid Legal Primerica * 9 Red are no longer in business NSE Has Produced More Millionaires than All the Companies Combined!! With Only 1.2 Billion In Annual Revenue!!! Only 4 of 29 Annual Revenue’s over 1 Billion All use Matrix not Binary Comp Plans Nu Skin 24 yrs 48 countries 800,000 Distributors (13%USA) 1.16 Billion Annual 2007 Forever Living 29yrs 8.75 Million Distributors 120 countries Multi-Billion Annual Herbalife 27yrs 64 countries 1.5 Million Distributors 2.1 Billion 2007 Amway 48yrs 80 countries Excel* 3 Million Distributors 6.8 Billion Annual 2007 Long Distance Company Compare Potential Market Growth: * Largest Distributor Force * Countries outside USA * Largest Annual Revenue * Longest Time In Business Mega Momentum Companies AMWAY 45yr Historical Snap Shot 1959 Opening 20 YEARS 1979 $1 Billion 12 YEARS 1991 13 YEARS 2004 $5 Billion 2 Billion Japan $6 Billion 80 Countries NSE 1984 Opening Most of the NSE’s revenue is off shore; only 13% is generated from the USA market. 20 YEARS 2004 $1 Billion 53% Japan 12 YEARS 2008 2016 13 YEARS 2029 $5+ Billion 48 Countries 1.2 Billion From Big To Giant This is a Big Business Because . . .  NSE has invested heavily in Patented HIGH TECHNOLOGY in all its brands. We have Exclusive Products that work! Our Timing in the market is Impeccable. We are a Solid, Financially Sound Company. Leverage & Exponential Growth: OPT + OPM = Time & Financial FREEDOM!     Other peoples’ time (your GSV network) & Other peoples’ money (NSE’s cash and infrastructure) Compensation Fast Start Profits Your Referral Thank You Business-in-a-Box (LOI) – $1,425 • Pays $250 to Sponsor/Referring Dist • $60 Commission Customer Package – $350 Retail • Pays $50 to Sponsor/Referring Dist • $10 Commission Must be on Direct Deposit to receive FSP on a weekly basis Customer 1 Spa Kit Customer Retail: $350 Business Builder Business Builder Wholesale: 5 Spa Kits $1425 (You: Place 4 Retail Kits = $1400) Do you know 4? You $285 Then your kits go out the Door! Unopened – 365 days – 90% MBG • • • $250 Thank you $50 Commission (5%) Earn $300 per Business Builder (i.e.5-kit order) $50 Thank you $10 Commission (5%) $60 $50 Mo.1 : Find 4 people who buy 5-kits (i.e. Business Builders) and you earn $1175* Mo. 2: Help these 4 find 4 Business Builders and you could earn another $5,100* $500 $5000 * The stated bonus commissions do not represent a distributor’s profit, as they do not consider expenses incurred by a distributor in the promotion of his/her business. You should always use good judgment in determining the amount of product you purchase. Your expenditure for products should not exceed what you can afford and what you believe you can resell or consume during any given month. For a complete summary of distributor earnings/bonuses paid to distributors at all levels within the Sales Compensation Plan, please contact the company at 800-487-1000 or see the end of this presentation or visit www.nuskinenterprises.com. 1 $7,800 2 $15K 4 $36K 8 $125K 12 $505K No Guarantee of Income – Based on 2007 Average Annual Incomes A “Franchise” Model As a Distributor you are part an Executive’s Store: • You earn 5% on your customers • You earn 5% on 1st levels distributors you sponsor but not on who they sponsor You Become Executive and You Own the Store: • You Make 14-25% on what you sell • You make 9-20% on what others sell out of your store while they learn [paid down to infinity] Teach Others to be Executive Stores: • You Make 5% on what they sell (up to 6 Executive levels deep) Become an Executive [$4500 GSV in 1, 2, or 3 Months] TEST Personal Sales Volume (PSV) Group Sales Volume (GSV) Month 1 Month 2 Month 3 Month 4 Qualifying Period Executive (Maintenance) 100 100 100 100 1,000 1,500 2,000 3,000* *can be maintained at 2000 GSV earning only 2.5% vs. 5% on Executive Breakaway Bonuses Wealth Maximizer *can be maintained at 2000 GSV earning only 2.5% vs. 5% on Executive Breakaway Bonuses Mega Bonus Pool 1.5% Earn a prorated share (points) in 1.5% of the total America’s and Europe monthly commissionable sales! • An “Incentive Based Profit Sharing Plan” paid to productive distributors • All Qualifying Executives and Executives can earn points! Total Sales You Earn Points When You Teach Others to Pass the “Test” each Month TEST Personal Sales Volume (PSV) Group Sales Volume (GSV) *can be maintained at 2000 GSV earning only 2.5% vs. 5% on Executive Breakaway Bonuses Month 1 Month 2 Month 3 Month 4 1 Point 1 Point 1 Point Qualifying Period Executive (Maintenance) 100 100 100 100 1,000 1,500 2,000 3,000* Six (6) New Personal ADRs = 1 Point Where the Money Comes From Front Distributor – Q-Exec Middle Executive (Help Others Qualify) GROUP TEST TEST TEST Back Duplicate Leadership – Executives TEST You TEST You = You = EX TEST TEST 30% Retail 5% on First Level EX MEGA 9-15% on Entire Group 1 Gold 2 Lapis 4 Ruby 6 5% 5% 5% 5% 8 12 Blue Emerald Diamond Diamond MEGA Bonus Pool 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Bonus Pool $100,000 Check Up to $1,000 $4,000 $95,000 Individual results will vary. Success takes time and hard work and is not guaranteed. 30% The Big Picture Gold Lapis Ruby Emerald Diamond Blue Diamond 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 12 x $3,000 = $36,000 x 5% = 24 x $3,000 = $72,000 x 5% = 48 x $3,000 = $144,000 x 5% = 96 x $3,000 = $288,000 x 5% = $1,800 $3,600 $7,200 $14,400 $28,800 $57,600 192 x $3,000 = $576,000 x 5% = 384 x $3,000 = $1,152,000 x 5% = $113,400.00 PER MONTH! How Do I Make Money? If you want to make $10,000 a month RESIDUALLY • Then you need $200,000 in organizational volume at 5% = $10,000 month • If each Executive does $3,000 in volume, that equals 67 Execs Lead by Example: 3 – 3s, Attend all Meetings, TEU & Events, Be on the Calls Do What the Leaders are Doing! Avg. Yearly Incomes 2007* 2 times>> Paid 1 Gold 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Diamond Blue Diamond Team Elite Lapis Ruby Emerald 1 $7,884 Can’t Say – Paid 10%! 2 $15,372 3 4 5 6 $36,576 $78,408 $125,532 $506,100 $6 Billion Paid in Commissions Since Inception For a complete summary of distributor earnings/bonuses paid to distributors at all levels within the Sales Compensation Plan, please contact the company at 800-4871000, see the end of this presentation, or visit www.nuskinenterprises.com.