AnnuAl RepoRt 2013 - ronnierobinsononline.com Files/2013 Annual Report.pdf · business system to...

AnnuAl RepoRt 2013

This is an extremely exciting time for Market America | SHOP.COM as we enter a brand-new era. We’re a new company with even greater opportunities after reaching some breakthroughs in our expansion model this past year that are nothing short of remarkable. With all the right technology, programs and people now in place, Market America is evolving from an international company into a global business.

It’s important to know the difference between the two, because it is a very significant one. For a corporation to be international, it simply means they have an operational facet to their business somewhere outside of their home country. But for a corporation to be a global force, they operate everywhere.

The new GLOBAL.SHOP.COM and Emerging Markets Program will allow just that — by bringing Market America’s products and proven business system to all corners of the world.

It’s a new beginning for UnFranchise Owners and customers, with broader horizons than we’ve ever seen before. Even though the following pages of the 2013 Annual Report outline and reflect on our revenue over the past year, it’s in my nature to stay focused on what lies ahead. And I couldn’t be more excited about our future, especially if 2012 is any indication of what we have to look forward to.

Our trend of increasing total sales from one year to the next continued. Market America | SHOP.COM saw worldwide sales top $506 million in 2012, which is up 5.9 percent over the previous year’s total of $478 million. Based on our global expansion efforts hitting stride and our products reaching entirely new customer bases, we can confidently project an 8.7 percent increase for sales during 2013.

That increase in total sales translates into more commissions and retail profits for our UnFranchise Owners during this past year. In total, UnFranchise Owners earned $116 million in commissions during 2012, up from the previous year. Estimated retail profits earned by UnFranchise Owners also saw growth, as they topped off at $124 million, a substantial spike from 2011.

The bottom line here is that Market America has generated over $2.7 billion in estimated retail profits and commissions for our UnFranchise Owners since the company’s inception. As more and more entrepreneurs realize the true power of the UnFranchise Business, this number will continue to multiply exponentially.

According to Goldman Sachs, a global investment banking and securities firm, web sales worldwide will reach nearly $1 trillion before this year is up. Market America | SHOP.COM is in the perfect position to capitalize on these staggering increases in e-commerce.

To coincide with our growth — both in revenue and in global expansion — we’ve continued to streamline and simplify all areas of managing the UnFranchise Business so it remains consistent and duplicatable across all markets.

The Fast Start Program has been a huge success, providing everything someone needs to establish their UnFranchise Business. In addition, we’ve placed a lot of emphasis on introducing a variety of product kits to support retailing efforts and building share of customer for UnFranchise Owners.

With global unification, we’re tying BV and IBV banks from different regions into one synergistic line of sponsorship for your businesses. In other words, operating globally will seem more like operating locally.

In addition to the brand-new functionality and redesign of SHOP.COM, we unveiled a completely new interface for the UnFranchise Business Account that is powered by the most advanced technology available. The enhanced functionality allows you to get an entire overview

of what’s going on in your business with a single glance. It’s customizable, better organized and optimized for your success.

MeetON.com has made distance a thing of the past as UnFranchise Owners on the other side of the country can get a front row seat to some of the most compelling speakers and critical information presented at regional conventions and other NMTSS events. Plus, the broadcasting channels on MeetON have been opened up to all UFOs, so it’s easier to connect with partners and customers throughout the world.

Combine all that with some revolutionary new products launched earlier this year — like DNA Miracles and Lumière de Vie, which open up entirely new multibillion-dollar markets while offering customers even more of what they need.

Market America | SHOP.COM is changing the way that people shop and changing the economic paradigm so everyone can become financially independent by creating their own economy.

I believe in you. Keep growing.

An AmAzing pAst ... An even brighter future

JR RidingerPresident & Chief Executive Officer

ANTHONY AKERSVICE PRESIDENT OF COMMUNICATIONS

EDDIE ALBERTYVICE PRESIDENT OF STRATEgIC PARTNERShIPS

STEVE ASHLEYVICE PRESIDENT OF MOBILE & SOCIAL PRODUCTS

MICHAEL BRADY ChIEF INFORMATION OFFICER

BETH COXVICE PRESIDENT OF hUMAN RESOURCES

CLEMENT ERHARDTgENERAL COUNSEL JEREMY FENNEMADIRECTOR OF INTERNET SERVICES & TRAININg

VINCE HUNT ChIEF OPERATINg OFFICER, ShOP.COM

BRANDI QUINNVICE PRESIDENT OF OPERATIONS

SAMANTHA RITCHIEVICE PRESIDENT OF RESEARCh & DEVELOPMENT

KIRK WALLChIEF FINANCIAL OFFICER

EUGENE WALLACEChEIF TEChNOLOgY OFFICER

ANDREW WEISSMANEXECUTIVE DIRECTOR OF FIELD DEVELOPMENT

JIM WINKLER VICE PRESIDENT OF SALES

DIXON HUGHES GOODMAN LLP gREENSBORO, NC

LOREN RIDINGER

SENIOR VICE PRESIDENT

JR RIDINGER

PRESIDENT & CEO

MARC ASHLEY

ChIEF OPERATINg

OFFICER

MARTY WEISSMAN

EXECUTIVE VICE PRESIDENT

DENNIS FRANKSEXECUTIVE

VICE PRESIDENT

JOE BOLYARD

EXECUTIVE VICE PRESIDENT

OF INTERNATIONAL DEVELOPMENT

KEVIN BUCKMANVICE PRESIDENT

OF TRAININg & FIELD

DEVELOPMENT

DEEDRAMASON, ND

DIRECTOR OF CLINICALEDUCATION & RESEARCh

MARKLANGE, Ph.D.

DIRECTOR OFQUALITY CONTROL

ROBERTBLAIR, Ph.D.

STRATEgIC RESEARCh SCIENTIST

MARkET AMERICA WORLDWIDE

eXeCutive bOArD

mAnAgement teAm

meDiCAL & sCientifiC AffAirs

AuDitOrs

WOrLD COrpOrAte heADQuArters

Market America | SHOP.COM saw worldwide sales top $506 million in 2012, which is up 5.9 percent over the previous year’s total of $478 million.

2012 FinancialsEstimated retail sales*: $506 millionUFO estimated retail profits* and commissions: $240 million

2013 Projections Retail sales of $550 million 8.7 percent increase

Market America1302 PLEASANT RIDgE ROADgREENSBORO, NC 27409-9326MARkETAMERICA.COM

Market America (Mexico)C.A.P. COAhUILA D.F., COAhUILA 5, ROMA NORTE, CUAUhTéMOC, MéXICO, D.F. 06703, APARTADO POSTAL h-048MX.ShOP.COM

SHOP MA, Inc.21 LOWER RAgSDALE DRIVEMONTEREY, CA 93940ShOP.COM

Market United KingdomSOUThBANk hOUSEBLACk PRINCE ROADLONDON, SE1 7SJUk.ShOP.COM

*Estimated retail profits and sales are based on suggested retail price

Market Australia 1/1 TUCkS ROADSEVEN hILLS, NSW 2147AU.ShOP.COM

Market Taiwan 14 F NO.101, FUXINg N ROAD, SONgShAN DISTRICT, TAIPEITAIWAN, R.O.C.TW.ShOP.COM

Market Hong Kong UNIT 1615-1620 LEVEL 16, TOWER II gRAND CENTURY PLACE 193 PRINCE EDWARD ROAD WEST MONgkOk, kOWLOON, hONg kONg hk.ShOP.COM

gLObALAt A gLAnCe

1 Annual Report 2013 shop.com | marketamerica.com shop.com | marketamerica.com Annual Report 2013 2

United Kingdom2012 FinancialsEstimated retail sales*: $607,000 USDUFO estimated retail profits* and commissions: $191,500 USD

Taiwan 2012 FinancialsEstimated retail sales*: $212 million USDUFO estimated retail profits* and commissions: $70 million USD

Australia2012 FinancialsEstimated retail sales*: $7.5 million USDUFO estimated retail profits* and commissions: $3.8 million USD

Hong Kong2012 FinancialsEstimated retail sales*: $19.2 million USDUFO estimated retail profits* and commissions: $10.4 million USD

*Estimated retail sales and estimated retail profits are based on suggested retail price.

United States2012 FinancialsEstimated retail sales*: $240 million USDUFO estimated retail profits* and commissions: $140.57 million USD

Canada2012 FinancialsEstimated retail sales*: $26.5 million USDUFO estimated retail profits* and commissions: $14.86 million USD

Mexico2012 FinancialsEstimated retail sales*: $417,000 USDUFO estimated retail profits* and commissions: $176,500 USD

mArket AmeriCA WOrLDWiDeAT A GLANCE AT A GLANCE

2013 ProjectionsRetail sales of $1.4 million USD131 percent increase

2013 ProjectionsRetail sales of $236 million USD11 percent increase

2013 ProjectionsRetail sales of $8.1 million USD7.5 percent increase

2013 ProjectionsRetail sales of $20.2 million USD5 percent increase

2013 ProjectionsRetail sales of $255 million USD6.25 percent increase

2013 ProjectionsRetail sales of $29 million USD9.43 percent increase

2013 ProjectionsRetail sales of $650,000 USD56 percent increase

emerging mArkets prOgrAm (emp)In a digital age where the only borders are the limits of one’s imagination, the company is poised for explosive growth with a brand-new way to expand globally. The Emerging Markets Program (EMP) is a simplified, streamlined and modular strategy designed specifically for pre-launching new markets around the world.

The EMP will help build a foundation in a new country or region by leveraging personal consumption through GLOBAL.SHOP.COM, thereby building toward becoming a ‘market’ country (i.e., Market America, Market Taiwan).

Market America Worldwide is divided into three geographic regions: The Americas, Europe and Asia-Pacific. Current EMP countries within The Americas include Colombia, Panama, Ecuador and Dominican Republic — each has access to Market America products. Currently within the European region is Spain which has access to Market United Kingdom products.

EMP UnFranchise Owners participate in the same MPCP as their region and can sponsor in any other EMP or ‘market’ country within that region. Commissions from sales through GLOBAL.SHOP.COM are still based on the MPCP criteria and earned the same way as any ‘market’ country.

Growing an EMP organization is as simple as business can be. Now that the program is gaining momentum, more and more new countries will be added soon. Singapore, New Zealand and the Philippines will be the next additions. As each new EMP country opens, that’s an entirely new market to reach, and now every UnFranchise Owner has the means to reach it.

Welcome to a new era of entrepreneurism, as Market America | SHOP.COM is creating a true global economy.

market Countryemerging markets Country

shop.com | marketamerica.com Annual Report 2013 4 3 Annual Report 2013 shop.com | marketamerica.com

teChnOLOgy tO LeAD e-COmmerCeSHOP.COM’s Home Advisor combines convenience with the power of demonstration, showing users exactly how much they can save and earn by switching from current brands to Market America’s exclusive quality brands. The Home Advisor guides customers through a virtual home, room by room, identifies which products they could benefit from most and shows why Market America brands

are superior. Convert spending into earning with the Home Advisor.

Coming to SHOP.COM in All MarketsTo remain a leading e-commerce site, it’s important to always work at improving the user experience and constantly develop innovative tools that benefit consumers. The following are some unique features that will support the growth of our UnFranchise Owners’ businesses and provide real value to customers worldwide.

ShopBuddy®, the newest innovation for SHOP.COM in the United States and the United Kingdom, reflects the latest technology available for the web. Able to instantly identify deals and coupons specific to a Partner Store as soon as customers visit them, ShopBuddy is an absolute must-have plug-in for any web browser. The goal is to further develop and adapt this tool for SHOP.COM websites in our other markets.

eGifts electronic gifts are the perfect present in a pinch. It allows someone to create a custom group of products available on SHOP.COM; then send the collection to a recipient via email so they can select the gift they like most. The chosen item is shipped to the recipient and the sender’s credit card is charged. Great for last-minute gifts.

Market America integrates cutting-edge technology with the latest social networking tools in the pursuit of revolutionizing the way people shop.

Through SHOP.COM, UnFranchise® Owners are instantly able to offer millions of products, allowing customers to find anything they want, anytime they want it. SHOP.COM provides access to thousands of popular retailers, as well as hundreds of exclusive Market America-branded products. With its intuitive search and comparative shopping feature, customers can find the best prices on more than 40 million products.

Owning a SHOP.COM website puts entrepreneurs in the perfect position to capitalize on the largest shopping migration since Walmart opened 50 years ago. Consumers all over the world are realizing the endless benefits to buying online.

The Benefits of SHOP.COM Customers earn Cashback for every qualified purchase made through SHOP.COM, from the same stores they already love and trust. Getting paid to shop is a great reward, but it’s just the start.

SHOP.COM Direct is a new wholesale provider that allows Market America | SHOP.COM to offer top consumer goods at the lowest possible price. Find electronics, office supplies and more with higher Cashback and IBV.

Here are some advanced features that led to SHOP.COM’s latest rank of 57 among Internet Retailer’s top 500 online businesses:

AutoShip is a great advantage to SHOP.COM sites, ensuring that customers never run out of their favorite exclusive company brands. Customers can set the frequency at which they want to receive regular shipments so they’ll never have to worry about taking the time to reorder — it’s the ultimate in convenience. In addition, shoppers who add items to AutoShip receive an instant 5 percent discount on their orders.


OneCart® multi-merchant checkout allows customers the convenience of a single transaction, even when several products from a variety of Partner Stores are included in the purchase.

With such advanced features and a program that pays people to shop, it’s easy to see why SHOP.COM is a top online retailer.

Moving with m-commerceAs shopping trends continue to migrate to the web, a big chunk of those sales are already spilling over into mobile platforms as consumers rely more and more on convenience with the use of smartphones and tablets.

Smartphone adoption is growing so rapidly, that by the year 2014, more than half of the 49.6 billion visits to the Internet Retailer Top 500 e-retailers will stem from smartphones, a Branding Brand study finds.

What exactly does that mean? It means that by next year, more people will be shopping on their phones than on their computers.

Market America is revolutionizing the way the world shops with the SHOP Mobile app, placing the best technology and access to millions of products in the palm of consumers’ hands. A brand-new SHOP Mobile site is in development that will offer most all of the functionality of the main site.

As the company moves forward with an emphasis on m-commerce, other markets will begin to see more progress on the development and release of mobile features and functionalities.

With the SHOP Mobile app, customers have access to:

• 40 million products on SHOP.COM• Barcode scanning feature • Increased Cashback deals• Coupon codes• Custom deal notifications• And more!

gLObAL.shOp.COm AnD e-COmmerCe

As the world becomes more connected through the Internet and social media, people constantly find themselves with contacts and potential customers all around the world.

GLOBAL.SHOP.COM helps UnFranchise® Owners service those customers now, providing shoppers nearly anywhere in the world with access to the company’s exclusive brands such as Isotonix®, Motives® and Lumière de Vie®, among others.

GLOBAL.SHOP.COM not only supports multiple languages like English, Traditional Chinese and Spanish, but will automatically detect both the language of the person visiting the site and the country from where they are browsing the site. If either of those preferences needs to be changed, there’s a simple navigation at the top of the screen that allows the visitor to easily modify both with the simple click of a button.

These aspects of GLOBAL.SHOP.COM let UnFranchise® Owners of both ‘market’ countries and EMPs develop a customer base in nearly any country around the world. But there is another major benefit for those UnFranchise Owners and their customers in countries that participate in a Personal Consumption program like Australia or Canada.

The new GLOBAL.SHOP.COM opens up all new opportunities and taps into the trend of explosive e-commerce growth everywhere. Online sales are growing at more than 19 percent throughout the world. Total worldwide web sales will reach nearly $1 trillion this year, predicts Goldman Sachs. Now, every UnFranchise Owner has the chance to capitalize on that growth!

unfrAnChise.COm


Sure, it’s important for UnFranchise® Owners to be able to offer customers a public-facing platform that has the latest technology, best functionality and cutting-edge convenience with SHOP.COM. Equally as important is to make operating their UnFranchise Business simple, yet sophisticated. That’s where the brand-new UnFranchise Business Account comes in.

Market America rebuilt the back-end business site from the ground up. It’s designed to be more user-friendly and was built on completely new technology. The new “dashboard” design allows entrepreneurs to customize their dashboard (or homepage) — adding, moving and removing widgets at any time using the “Edit Dashboard” function.

The dashboard gives a complete snapshot of a particular UnFranchise Owners’ business so they can easily see the most important aspects of running the business with just a glance. The Sales Volume Widget can show the sales volume without an additional click. The Quick Order Entry Widget allows UnFranchise Owners to purchase products at Distributor Cost with more convenience than ever before. And there are so many others to choose from.

The site is more intuitive in every aspect. Those in the U.S., Canada, Mexico and EMP countries have already experienced the dramatic difference. This same technology will be coming to businesses in Taiwan, Hong Kong, the United Kingdom and Australia next.

For the ultimate in convenience, the UnFranchise Business Account has gone mobile.

Find all the features and functionality needed to run a business on the go through UnFranchise Mobile.

Visit www.unfranchise.com from your phone’s web browser to experience it today.


buiLt On prODuCt

Built on Product. Powered by People.® It is scripted in our logo; it is spoken at our events. It defines our past and secures our future. This phrase has become more than just a tagline for Market America — it is our purpose, our commitment, and our promise to provide the highest-quality, science-based, market-driven products with the most personal customer service available anywhere.

A Strong FoundationIt all starts here. Market America believes that excellence in quality must be built into a product as a design requirement.

Our quality control process involves dedicated scientists, strategic relationships with manufacturers, and a rock-solid commitment to customers. Product excellence is more than one department or group of people assuring quality — quality involves every individual at Market America. The company oversees all stages of the process, from product concept to manufacturing and delivery.

The Best Ingredients Make the Best ProductsIngredients are sourced from only the most trustworthy suppliers. The raw materials used in every company-branded product undergo a comprehensive evaluation by the manufacturers to ensure that they meet stringent purity and potency requirements. Verification and approval by a Certificate of Analysis (COA) is required for each raw material. Approved raw materials are subject to laboratory confirmation of physical characteristics and material potency.

Each product is then carefully prepared following a written master manufacturing record and every batch is reviewed and approved by the manufacturer’s highly trained quality control personnel. Products are also inspected at Market America’s warehouse for damage, label accuracy, appearance, taste and identity prior to release.

Quality and science take precedence over popular and trendy. Market America products are made with ingredients backed by clinical research. The company finds suppliers of ingredients that have the clinical studies backing up their application in a formulation.

As a product broker, not a manufacturer, Market America can act as an independent quality inspector between the manufacturer and the customer. If something doesn’t satisfy the standard, it’s returned to the manufacturer for replacement. Every product is scientifically engineered and must be manufactured consistently with regard to purity, performance, strength and uniformity.

The company forms long-lasting relationships with vendors and manufacturers, and unlike some companies, doesn’t just shop around for the best price. Instead, Market America prefers to develop a relationship and stay with the same manufacturers who will produce consistent quality products from year to year.

Good Manufacturing PracticesObviously, good quality control involves high standards. Market America not only has them, but holds its manufacturers to the same. For example, all Isotonix® health and nutrition products are produced under Good Manufacturing Practices (GMPs). GMP is a recognized standard for dietary supplements. Therefore, Market America’s exclusive Isotonix manufacturer carries a current GMP certificate by an independent auditor. In addition, manufacturers are audited by our Quality Control unit. A typical audit includes reviewing batch records, laboratory test results, training records, label control, sanitation procedures and ingredient control records.

The Importance of TestingMarket America’s world headquarters in Greensboro, N.C. has an excellent in-house laboratory with ever-expanding capabilities that can perform such testing as microbiological contamination, isotonic range, presence of gluten allergens, pH, microscopic analysis and spectroscopic analysis. Every shipment received into the warehouse must be inspected and approved before it can go out to the customers.

Understanding what happens behind the scenes gives a better sense of how much Market America emphasizes quality. This is the company’s commitment — Market America will not ship anything that falls short of superior quality.

Being GMP compliant means complying with regulatory Standard Operating Procedures (SOPs), which provide details about keeping the manufacturing process under control to produce a consistent product that meets all specifications. Some examples of topics that lend themselves well to the SOP format include inventory procedure for raw materials, facility security, vendor qualification, employee training, and so on.

All manufacturing equipment that comes in contact with our products must be cleaned according to mandated procedures between production runs and verified to ensure sanitation has been performed prior to use. Product samples are collected at various stages of production for chemical and microbiological analysis to ensure consistency and purity. Lot code confirmation, weight checks, label and material checks are performed according to exact written procedures.

Revolutionary anti-aging skincare line designed to support skin on the cellular level

Uses clinically tested and powerful ingredients to help anyone look as young as they feel

Scientifically engineered to protect, hydrate and support normal repair of the skin while promoting a rebirthing effect

Everything needed to turn an ordinary shower routine into a luxurious spa experience

Each product is enhanced with vitamins, protein and natural botanical extracts

From gentle shampoos to silky lotions specially formulated to meet a diverse range of needs

Enhanced with Matrixyl® complex and Argireline to help reduce the appearance of wrinkles, skin discoloration and stretch marks

Features an advanced formula that penetrates into the fine layers of skin for maximum results

An all-in-one beauty wonder treatment that supports beautiful skin to last a lifetime

A line of solution-oriented, personal care products created for men and women

Superior products that contain specialized ingredients for instant hair and skin therapy

Contains argan oil — a rich source of a powerful antioxidant well-known for combating the aging process

Pentaxyl font: SF Grandezza

NOTE:

Contains advanced ingredients to promote overall cardiovascular health

Co-Q10 energizes the body’s cells and supports the immune system

Sytrinol® helps maintain normal cholesterol levels

Contains 150 percent of aloe in four delicious flavors

IASC-certified (International Aloe Science Council), ensuring aloe content and purity

Promotes normal digestion and supports a healthy immune system

*These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure or prevent any disease.

The next generation of skincare, proven to promote the natural healing process of all skin types

Utilizes the power of the sea and the earth for revitalized radiance, improved clarity and younger-looking skin

Acts as first aid for the skin

Specialty line of body care and wellness products designed especially for babies, children and expectant moms

Formulated with the highest-quality ingredients

From gummy vitamins to diaper creams, hydrating lotions and delicate foaming baby wash

mArket AmeriCA’s eXCLusive brAnDsAs a product brokerage company, Market America identifies the highest quality market-driven products and services. By moving with the marketplace, Market America does not rely solely on the sales of any single product or service.

Without the costly burdens of manufacturing, mass marketing and advertising, greater resources are

placed in product development and quality assurance, which guarantees that every Market America product is backed by substantial science, rigorous testing and peer-reviewed research.

With hundreds of exclusive products and services, UnFranchise® Owners can capitalize on numerous multibillion-dollar industries including health and nutrition, cosmetics, anti-aging, weight

management, home and garden, baby and children’s care, pet care, auto care, website solutions, financial services and more.

UnFranchise Businesses do not rely on the sale of any single product or service, resulting in short-term and long-term stability and profitability. Whatever the trend, Market America is in a position to capitalize on it.

Isotonix® products offer the fastest and most efficient delivery system of nutraceutical supplements. Since Isotonix products are isotonic-capable and taken in liquid form, the digestion process is shortened, allowing nutrients to arrive in higher concentration for fast absorption. When used as directed, Isotonix will provide the precise quantity of nutrients the body needs to receive maximum results.

Motives® by Loren Ridinger is the award-winning cosmetics line defined by its creator — a trendsetter who has changed the face of the beauty industry. Simple to use and sexy to wear, Motives cosmetics provides an amazing color payoff, a flawless look, and a luxurious feel and finish. With the trendiest colors and industry-leading ingredients to give eyes, cheeks, lips, face and nails a beautiful look and feel, Motives cosmetics — like Loren Ridinger — is changing the face of cosmetics.

Most weight management programs only target one aspect of weight loss, which is why most people don’t achieve their goals, or they regain the weight. TLS® Weight Loss Solution teaches you about low-glycemic eating and how to identify new favorite foods, resulting in new, healthy behaviors. This leads to improved body composition, which gets the metabolism operating in high gear. Plus, with the help of support materials, tools, and specially-formulated TLS supplements, anyone can find their fit in no time.


The examples of income shown are not intended to be representative of any specific class of Market America Independent Distributor, nor are they intended to represent that any given Independent Distributor will earn income in that amount. Rather, the income figures testify to the results, which have been accomplished by Independent Distributors who have devoted time, talent, hard work and a willingness to follow the proven UnFranchise® business plan in building their Market America business. Do not be misled by claims that huge income is easily achieved. The success of any Market America Independent Distributor will depend on the amount of hard work, talent and dedication he or she devotes to the building of his or her Market America business.

Ben GinderFIELD PRESIDENT

Earnings of $80,000 - $99,999 in four weeksRED LION, PA.

Joanne HsiINTERNATIONAL FIELD PRESIDENT

Earnings of $100,000 - $124,999 in four weeksNEW YORk, N.Y.

Frank & Gingie KeeferSENIOR EXECUTIVE FIELD VICE PRESIDENT

Earnings of $63,000 - $79,999 in four weeksQUEENSTOWN, MD.

Dolly KuoSENIOR EXECUTIVE FIELD VICE PRESIDENT

Earnings of $63,000 - $79,999 in four weeksWALNUT, CALIF.

Tony & Pam BowlingEXECUTIVE FIELD VICE PRESIDENT

Earnings of $45,000 - $62,999 in four weeksLUTz, FLA.

Victor &Alice ChiouSENIOR EXECUTIVE FIELD VICE PRESIDENT

Earnings of $63,000 - $79,999 in four weeksMILPITAS, CALIF.

Marian &James KuoFIELD PRESIDENT

Earnings of $80,000 - $99,999 in four weeksARCADIA, CALIF.

Tina ChenEXECUTIVE FIELD VICE PRESIDENT

Earnings of $45,000 - $62,999 in four weeksLIVINgSTON, N.J.

Nina HaleEXECUTIVE FIELD VICE PRESIDENT

Earnings of $45,000 - $62,999 in four weeksCOVINA, CALIF.

Min LiuSENIOR EXECUTIVE FIELD VICE PRESIDENT

Earnings of $63,000 - $79,999 in four weeksOAkLAND gARDEN, N.Y.

Patrick Hsieh & Alice ChenSENIOR EXECUTIVE FIELD VICE PRESIDENT

Earnings of $63,000 - $79,999 in four weeksBURNABY, B.C.

Norm & Mary RothEXECUTIVE FIELD VICE PRESIDENT

Earnings of $45,000 - $62,999 in four weeksBROOkFIELD, WIS.

Julie SchollEXECUTIVE FIELD VICE PRESIDENT

Earnings of $45,000 - $62,999 in four weeksChARLOTTE, N.C.

Vikki LeeEXECUTIVE FIELD VICE PRESIDENT

Earnings of $45,000 - $62,999 in four weeksLONg BEACh, CALIF.

Market America has been responsible for creating hundreds of millionaires since the company’s inception in 1992. Overall, individuals have earned more than $2.7 billion in commissions and estimated retail profits.*

pOWereD by peOpLeElizabeth WeberINTERNATIONAL FIELD ChAIRMAN

Earnings of $125,000 - $149,999 in four weeksMELROSE, MASS.

Roger & Annie WuEXECUTIVE FIELD VICE PRESIDENT

Earnings of $45,000 - $62,999 in four weeksCOVINA, CALIF.

Jacki & David BlaskoFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksChETEk, WIS.

Mary Beth DocosFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksOSWEgO, N.Y.

Phil & Sue GuidoFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksDIX hILLS, N.Y.

Arlene LowyFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksPITTSBURgh, PA.

Stacy TungEXECUTIVE FIELD VICE PRESIDENT

Earnings of $45,000 - $62,999 in four weeksNEW TAIPEI CITY, TAIWAN

Karri WuFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksVANCOUVER, B.C.

Wan Rong YuanFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksCOLLEgE POINT, N.Y.

Kwei Fang LiuFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksBURNABY, B.C.

Kenneth & Tara BeckFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksCECIL, PA.

Andy DocosFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksOSWEgO, N.Y.

Lisa & Edward GrantFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksSTAMFORD, CT.

Ying ZhaoFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksOAk hILL, VA.

Lou ManfrediFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksYORk, PA.

Lisa Lieberman-Wang & Yardley Wang FIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksWEST MILFORD, NJ.

Emily ChengFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksARCADIA, CALIF.

Keith & Kim DoyleFIELD VICE PRESIDENT

Earnings of $36,000 - $44,999 in four weeksYORk, PA.

Amber YangEXECUTIVE FIELD VICE PRESIDENT

Earnings of $45,000 - $62,999 in four weeksBAYSIDE, N.Y.

Jim & Lisa WinklerEXECUTIVE FIELD VICE PRESIDENT

Earnings of $45,000 - $62,999 in four weeksOkAUChEE, WIS.

Total estimated retail profits earned*:

$1,355,492,044 Total commissions earned:

$1,344,853,605Total Distributor earnings:

$2,700,345,649†+ =

*Estimated retail profits are based on suggested retail price. †As of December 31, 2012.

shop.com | marketamerica.com Annual Report 2013 14 13 Annual Report 2013 shop.com | marketamerica.com shop.com | marketamerica.com Annual Report 2013 14 13 Annual Report 2013 shop.com | marketamerica.com

WOrLDWiDe COmmissiOns AnD estimAteD* retAiL prOfits

*Estimated retail profits are based on suggested retail price.

WOrLDWiDe sALes grOWth

2012

Sales $309,530,088Cost of Sales 98,496,641

Gross Profit 211,033,447

Selling ExpensesCommissions 116,172,346

General and Administrative Expenses 74,620,769

Income From Operations 20,240,332

Other Income 507,734

Income Before Taxes 20,748,066

Income Taxes 3,499,969

Net Income $17,248,097Year ending

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TOTAL DISTRIBUTOR & UNFRANChISE® OWNER EARNINgS

Year ending

TOTAL DISTRIBUTOR & UNFRANChISE® OWNER RETAIL PROFITS

Year ending

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2011 2012

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TOTAL DISTRIBUTOR & UNFRANChISE® OWNER COMMISSIONS

In 2012, Independent Distributors and UnFranchise Owners were paid over $116 million in commissions.

Since the company’s inception in 1992 to the end of calendar year 2012, the total amount of commissions paid was over $1.3 billion.

In 2012, Independent Distributors and UnFranchise Owners earned an estimated $124 million in gross retail profits.

Since the company’s inception in 1992 to the end of calendar year 2012, the total amount of gross retail profits earned by Independent Distributors and UnFranchise Owners was over $1.3 billion.

In 2012, Independent Distributors and UnFranchise Owners earned over $240 million in commissions and estimated gross retail profits.

Since the company’s inception in 1992 to the end of calendar year 2012, the total amount of commissions and estimated gross retail profits earned by Independent Distributors and UnFranchise Owners was over $2.7 billion.

MARkET AMERICA WORLDWIDE, INC. AND AFFILIATES CONSOLIDATED STATEMENTS OF INCOME FOR YEAR ENDED DECEMBER 31, 2012

WORLDWIDE COMPANY SALES

Sales (Wholesale) Sales (Retail)

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MARkET AMERICA WORLDWIDE, INC. AND AFFILIATES

COnsOLiDAteD bALAnCe sheetsDECEMBER 31, 2012

Assets 2012

Current AssetsCash $69,416,009Interest receivable 143,547Accounts receivable – trade 1,784,324Inventories 20,505,638Other current assets 14,062,760

Total Current Assets 105,912,278

Property and Equipment, Net 28,640,951

Goodwill and Intangible Assets, Net 4,631,202

Other Assets 6,215,971

Total Assets $145,400,402

Liabilities And Stockholders’ Equity 2012

Current LiabilitiesCurrent portion of long-term debt $133,333Current portion of capital lease obligations 139,601Accounts payable – trade 5,932,859Commissions payable 4,668,845Sales tax payable 915,774Income tax payable 1,584,339Other accrued liabilities 5,802,112Unearned revenue 7,155,379

Total Current Liabilities 26,332,242

Notes Payables 566,668

Stockholders’ EquityCommon stock, $0.01 par value;1,000,000 shares authorized; 15,710 sharesissued and outstanding at December 31, 2012 157Additional paid-in capital 73,336,636Retained earnings 43,300,306Accumulated other comprehensive income:Foreign currency translation adjustments 1,864,393

Total Stockholders’ Equity 118,501,492

Total Liabilities and Stockholders’ Equity $145,400,402

MARkET AMERICA WORLDWIDE, INC. AND AFFILIATES

COnsOLiDAteD bALAnCe sheetsDECEMBER 31, 2012

Continued


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