A REWARDING BUSINESS OPPORTUNITY EUROPEAN Compensation Plan Update January 1, 2006.

A REWARDING BUSINESS OPPORTUNITY

EUROPEAN Compensation Plan

Update January 1, 2006

Our Goal

Our mission is to be a force for good throughout the world by empowering people to improve lives with rewarding business opportunities, innovative products, and an enriching and

uplifting culture.

Our vision is to become the world’s leading direct selling company

by generating more income for distributors than any other company.

EUROPEANCompensation Plan

Our Compensation Plan

•Our compensation plan is recognised as one of the most generous in the industry, rewarding distributors for hard work, long-term commitment, and leadership.

•Our compensation plan is seamless. Distributors can build sales organisations globally, assured of the same high-quality products throughout the globe, and receive one pay cheque in their local currency.


5 Basics of Success

How does it work?

There are 5 basic principles of success with Nu Skin Enterprises (NSE):

1. Retail products

2. Sponsor people who use the products/retail

3. Build an organisation of people who use the products/retail

4. Become a leader (train and motivate others)

5. Help others become leaders


€PROFIT

€100 €143 €43

Purchase products at Distributor Purchase

Price

Sell at Suggested Retail Price:

+ 43%

Retail Products


Sponsor

Each product you purchase contains a point value, Personal Sales Volume (PSV).

Your PSV + PSV of downline distributors = GSV (Group Sales Volume)

Compensation is based on points and accrued on a monthly basis. (In the examples 1 PSV = 1 Euro. Actual monthly compensation plan payout converts points to commissions by using a set rate established by NSE [Exchange Rate Multiplier -ERM]. The current ERMs as of January 2006 for the European region are: Euro countries x 0.83; DK x 6.15; HU x 200; IS x 69.50; NO x 6.75; SE x 7.4; UK x 0.57.


Activity Bonus - Level 1

Level 1 = 6% of all PSV on your first level

= 100 PSV + 1 personal ADP

RETAIL CUSTOMER DISTRIBUTOR

DISTRIBUTOR DISTRIBUTOR PREFERRED CUSTOMER

When you have 100 PSV and a personal Automatic Delivery Programme (ADP)* order, you earn:(*ADP order must qualify with 50 PSV before discount)


Distributor Example

For example: €43 (Retail Profit)

+ €18 (Level 1) = €61DISTRIBUTOR

100 PSV

DISTRIBUTOR

100 PSV

DISTRIBUTOR

100 PSV

YOU

6% on all PSV on Level 1

6% x 300 = €18

100 PSV+ ADP400 GSV

RETAIL CUSTOMER


Become a Leader

Executive Qualification

Become an Executive and maximise your compensation potential

Letter Of Intent (LOI) Month = 100 PSV and 1,000 GSV

Qualifying Executive Month 1 = 100 PSV and 1,500 GSV

Qualifying Executive Month 2 = 100 PSV and 2,000 GSV


Bonus Doubler

During the LOI and Qualifying Executive months you can earn more!

Level 1 = 12% of PSV For example:€43 (Retail Profit)

+ €120 (Level 1) = €163

This incentive is automatically paid to all LOI & Qualifying Executives who meet Level 1 & qualification requirements.


Qualifying Executive Bonus Pool

• Distributors in Qualifying Executive Months 1 or 2 will receive shares based on the following criteria:

• 5 new first level actives w/ ADP* = 1 share

• 1 Distributor in LOI month** = 1 share

* A new active must be a European ID# with 100 PSV and a qualified ADP in the sign up month or the following month. The ADP must be a European order with a minimum of 50 PSV before the available discounts are applied (or 2 NTC VitaMeal donations). The new active with ADP will count as a share in the month the account has 100 PSV and the first order from the ADP contract is successfully placed in the order system.

** A Distributor in LOI month must meet the GSV requirement independent of the volume from any other circle group LOIs. Volume will count for the uplines according to the Who Counts Whom chart, but shares for the pool will only be allocated based on unencumbered volume. Depending on organisation structure, the LOI may count for both a Qualifying Executive and Executive.


Qualifying Executive Bonus Pool

• Conditions:

– The company will reserve 0.25% of the European region’s monthly commissionable sales for this bonus pool.

– The revenue will be divided by number of shares and each Qualifying Executive will be compensated based on their number of shares.

– Qualifying Executives cannot participate in the pool during a grace month.

– Qualifying Executives must have a minimum of 2 shares to participate in the pool.


Building an Organisation

Increase volume and your cheque increases!

€532 + Bonus Pool!

Retail Profit: 400 points of your PSV x 43% markup = €172

Level 1: 3,000 points x 12% = €360

Level 21,500 PSV

Level 13,000 PSV

500 PSV + ADP5000 GSV


Executive Bonus

After successfully completing Qualification, you receive from 9 to 15% on your GSV*Executive Maintenance requirements = 100PSV & 2,000 GSV

Retail Profit = 43% markup

Level 1 = 6% of all PSV on L1

Executive Bonus = 9 to 15% of all Distributor PSV


Executive Bonus

For example:

Retail Profit = €172 (43% markup)

Level 1 = €180 (6% of all PSV on L1)

Executive Bonus = €600 (9 to 15% of all

Distributor PSV)

€952 commission cheque! 500 PSV + ADP5,000 GSV


Executive Bonus

Your GSV % paid on your GSV Example:

2,000 9% € 180

3,000 10% € 300

4,000 11% € 440

5,000 12% € 600

10,000 13% € 1,300

25,000 14% € 3,500

50,000 15% € 7,500


Help Others Become Leaders

By helping others in your organisation complete the Qualification process, they become “Breakaway” Executives.

Level 2

Level 1

Breakaway team

DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR

YOU RETAIL CUSTOMER

DISTRIBUTOR DISTRIBUTOR

DISTRIBUTOR DISTRIBUTOR


Help Others Become Leaders

• Breakaway Executives are no longer part of your GSV.

• You are now paid Breakaway Bonus on the GSV of their organisation.

– When your GSV is 2,000 – 2,999, you are paid 2.5%

– When your GSV is 3,000 or more, you are paid 5%


Breakaway Bonus

Number of first level breakawaysGold Lapis Ruby Emerald Diamond Blue Diamond

Lev

els

pa

idEUROPEAN

Compensation Plan

Executive Bonus Pool

Executives and above will receive shares based on the following criteria:

• 5 new first level actives w/ ADP* = 1 share• Distributor in LOI Month** = 1 share• Distributor in Qualifying Executive Month = 1 share(LOIs and Qualifying Executives do not count as a share when they are taking a grace month)

* A new active must be a European ID# with 100 PSV and a qualified ADP in the sign up month or the following month. The ADP must be a European order with a minimum of 50 PSV before the available discounts are applied (or 2 NTC VitaMeal donations). The new active with ADP will count as a share in the month the account has 100 PSV and the first order from the ADP contract is successfully placed in the order system.

** A Distributor in LOI month must meet the GSV requirement independent of the volume from any other circle group LOIs. Volume will count for the uplines according to the Who Counts Whom chart, but shares for the pool will only be allocated based on unencumbered volume. Depending on organisation structure, the LOI may count for both a Qualifying Executive and Executive.


Executive Bonus Pool

Conditions:– The company will pay 1.5 % of the European region’s

monthly commissionable sales for this bonus pool. – The net revenues will be divided by number of shares

and each Executive will be compensated based on their number of shares.

– Executives must have a minimum of 4 shares to

participate in the pool.


Executive with Breakaway Example

Level 1: 3,000 points x 6% = €180

€1,202 plus Executive Bonus Pool!

Retail Profit: 400 points x 43% markup = €172

Executive Bonus: 12% x 5,000 = €600

Breakaway Bonus:5% x 5,000 = €250


Leadership Advancement Bonus

(LAB)

Earn up to €31,500!• The bonus is paid after achieving and maintaining the

new Pin Level for a period of two consecutive months without taking a grace month.

• An additional retention bonus is paid if a new Pin Level is maintained for a period of six consecutive months from being awarded the new level without taking a grace month.


Leadership Advancement Bonus

(LAB)

* Values are in Euros.

• Executive = 250 + 250

• Gold = 500 + 500

• Lapis = 1,000 + 1,000

• Ruby = 2,000 + 2,000

• Emerald = 3,000 + 3,000

• Diamond = 4,000 + 4,000

• Blue Diamond = 5,000 + 5,000

LAB* LAB Retention*


Review

DUPLICATION is the key!

• Set your Goals

• Retail

• Sponsor

• Help others Retail & Sponsor


Review

• We take pride in the viable, flexible opportunity that we offer.

• Ultimately, through our seamless compensation plan, entrepreneurs are empowered to improve their financial freedom and security.


A REWARDING BUSINESS OPPORTUNITY

EUROPEAN Compensation Plan

Update January 1, 2006

A REWARDING BUSINESS OPPORTUNITY EUROPEAN Compensation Plan Update January 1, 2006.

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Transcript of A REWARDING BUSINESS OPPORTUNITY EUROPEAN Compensation Plan Update January 1, 2006.