Compensation Plan Compensation Plan Allied Global Network.

Compensation Plan • Allied Global Network

Compensation Plan

ADRAutomatic Delivery Rewards

• Monthly automatic delivery with the opportunity to earn reward points

Distributor• A person engaged in the distribution of Nu Skin’s products • Distributors purchase products at wholesale price

Active Distributor• A distributor with an active ADR and minimum 100 PSV per month• Eligible to receive commission checks from Nu Skin

Retail Customer • A person who purchases products at retail price

Preferred Customer• A person who purchases products at wholesale price by maintaining an active ADR

PVPoint Value

• The point value assigned to a product • Approx 1 PV = 1 Wholesale Dollar

PSVPersonal Sales Volume

• The total point value of purchases by you and your retail customers

GSVGroup Sales Volume

• The total sales volume of all the customers and distributors in your group• PSV is included in your GSV

Basic Compensation Terms



Retail Markup

Mark up from Retail Customers (up to 30%)

ExampleAgeLoc Vitality

Retail = $66.50- Wholesale = $50.00 _____________________= $16.50 paid to Distributor

Fast Start Bonus

Earn a bonus each time you sell a fast-start product

package

ExampleGalvanic Spa Package Retail = $450Wholesale = $360

You will receive a $50 bonus for the sale of this package.

If sold at retail price, you will earn an additional $90 in retail profits

5% of L1 Sales

5% commission on all Level 1 Sales Volume*

*MUST be an active distributor to earn commissions (min 100PSV plus participate in ADR)

How are Distributors Paid?

YOU100 PSV

ADR

D D PC

RC

RC = Retail CustomerPC = Preferred CustomerD = Distributor

RC

D PC D

DL1

3 Month Qualification Program

Executive Qualification Fast-Trak

• 1 Month Executive Qualification = GSV 4500 in one month

• 2 Month Executive Qualification = GSV 4500 in 2 months.(First month (LOI) – must have minimum of GSV 1000)

How Do I Become an Executive?

Month 1 (LOI) Month 2 (Q1) Month 3 (Q2)

PSV 100 PSV 100 PSV 100

ADR ADR ADR

GSV 1000 min GSV 1500 min GSV 2000 min


Executive Monthly Maintenance: PSV 100, ADR, GSV 2000

Circle Group

Retail CustomersPreferred Customers

DistributorsQualifying Executives

B Breakaways

Downline Executives

How are Executives Paid?


9%-15% of Entire Group Volume

9% =2,000-2,999 GSV

10% = 3,000-4,999 GSV

11% = 5,000-9,999 GSV

12% = 10,000-14,999 GSV

13% = 15,000-25,000 GSV

14% = 25,000-49,999 GSV

15% > 50,000 GSV

$2,000 9%

$3,000 10%

$5,000 11%

$10,000 12%

$15,000 13%

$25,000 14%

$50,000 15%

Circle Group Volume = GSVYou are paid 9-15% on your GSV

You are paid up to 5% on each Executive’s GSV

YOU

EXECGeneration 1 (G1) 5% of GSV

How are Executives Paid?

Circle Group Executive Breakaways

Example: GSV 4000 x 10% = $400Minimum GSV 3000 to earn 5%Less than GSV 3000 earns 2.5%


YOU

Method 1: Depth MaximizerStandard Calculation

Room A

Room B

Room A“Extra 5% Bonus” + 5%

Room BOnly pays on G1

“Double G1 Bonus”

10%

Wealth Maximizer

Nu Skin calculates your commission in 2 ways and pay you the higher amount.

Method 2: Volume Maximizer* must have minimum GSV 3000


$2,000 9%

$3,000 10%

$5,000 11%

$10,000 12%

$15,000 13%

$25,000 14%

$50,000 15%

$2,000 9%

$3,000 10%

$5,000 11%

$10,000 12%

$15,000 13%

$25,000 14%

$50,000 15%

Compensation Plan Summary


Distributor

Retail Mark Up

Fast Start Payment

5% of All Level 1 Sales

Executive

Room A9%-15% of GSV

9% =2,000-2,999 GSV

10% = 3,000-4,999 GSV

11% = 5,000-9,999 GSV

12% = 10,000-14,999 GSV

13% = 15,000-25,000 GSV

14% = 25,000-49,999 GSV

15% > 50,000 GSV

Breakaway

Room ABreakaway Bonus

5% ofExecutive Breakaway’s

GSV

(payable down to 6 Generations)

Company Statistics


Nuskin has paid over $7.5 Billion in commissions to date.

More than 800 Executives have earned over $1 Million in commissions.

Every 5 days, another Executive joins the Million Dollar Circle.

10% of all Executives will make it to Ruby.

50% of Rubies will make it to Blue Diamond.

On average, it takes 3 years to reach Blue Diamond.

95% of those who continue in the business for 10 years make it to Blue Diamond.


TitleMonthly Average

Commission Income at Each Level for 2009

Annualized CommissionsAverage Percentage of

Executive-and-Above Level Distributors

Active Distributor Earning a Check (Non-Executive) $65.00 $778.00 N/A

Qualifying Executive 224.00 2,683.00 N/A

Executive 467.00 5,607.00 57.19%

Gold Executive 832.00 9,980.00 19.78

Lapis Executive 1,344.00 16,133.00 12.08

Ruby Executive 2,681.00 32,170.00 4.45

Emerald Executive ,4665.00 55,980.00 1.98

Diamond Executive 10,342.00 124,104.00 1.65

Blue Diamond Executive 44,606.00 535,276.00 2.87

The following table shows the average commissions paid in 2009 to U.S. distributors at the various levels of the Company’s Sales Compensation Plan, including the average percentage of total Active Distributors and the average percentage of Executive-and-above distributors that earned commissions at each level. These figures do not include retail markup income.The average commission paid to U.S. Active Distributors each month was $125.71, or $1,508.53 on an annualized basis. In 2009, the average monthly commission paid to U.S. Active Distributors who earned a commission check was $843.46, or $10,121.52 on an annualized basis. Note that these figures do not represent a distributor’s profit, as they do not consider expenses incurred by a distributor in the promotion of his/her business and do not include retail markup income. On a monthly basis, an average of 14.90% of U.S. Active Distributors earned a commission check. Active Distributors represented an average of 34.13% of total distributors.

Compensation Plan Compensation Plan Allied Global Network.

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