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Global Monopoly It’s Time To Answer the Question… What is the Greatest Business in the World?
Global Monopoly What’s the Greatest Business In the World? A MONOPOLY A MONOPOLY A Dennis Bryson Brent & Georgia on & Sheryl Wardrop Franchise Owner Subway an & Marilyn Mc. Cormick Clifton Steve & Melyn Campbell Riffle Peggy Elite Paige Krock Team Real Estate Sales - Team Elite College Dropout / & Consultant/ University Professor - Team Entrepreneur Tennis Court Speech Pathologist/Dancer. Elite Nutritionist -Team Elite Construction - - Team Elite Stockbroker Team Elite Nathan Ricks & Family Real Estate Sales - Team Elite
Monopoly Defined Global Monopoly [muh-nop-uh-lee] noun. n The market condition that exists when there is only one seller n Exclusive control of a commodity or service in a particular market n Exclusive privilege to carry on a business granted by a government
What’s the Best Monopoly? Global Monopoly The Best Monopoly in the World is the One You Own!
Monopolies Protected by Patents Global Monopoly “Patents are responsible for some of the earliest and largest monopolies” 1984
Market Position Monopolies Global Monopoly “The best monopoly opportunities are situational, often soft and intangible. For the customer there is no one but you…”
An Unfair Advantage! Global Monopoly Our Monopoly takes advantage of Patent Protection, Market Positioning or both
Monopoly #1 Global Monopoly MEASURES ¾ 18 Carotenoid Antioxidants in Real Time ¾ Personal Score shows Level of Protective Antioxidants ¾ Multiple International Patents & Patents Pending ¾ No One Else in the World can Use Light to Measure Carotenoid Antioxidants ¾ 1 st Nano Technology Supplements on the Market Products Guaranteed to Raise Your Score
Monopoly #2 Global Monopoly Pro. Derm Skin Analyzer Advanced Imaging POD Technology provides Instant Evaluation of how your Skin is Aging ANALYZES ■ Skin Texture ■ Pore Size ■ Lines & Wrinkles ■ Skin Discoloration Award winning 180 Program Anti-Aging Skin Therapy “Decide today to look younger next week”
Monopoly #3 Global Monopoly ¾ No Buffering ¾ No Waiting ¾ No Downloading ¾ No Plug Ins Just TV on your PC
Our Vitality Monopoly Global Monopoly Baby boomers … don’t want to grow old… Today, 50 is the new 30 And 80 is the new 50. Boomer demands are COMPLETELY PREDICATBLE!
Personal Stories How… Global Monopoly These Products will Change your Life!
This Monopoly… Global Monopoly Awarded Most Innovative Company at the 2005 American Business Awards
This Monopoly Publicly Owned Global Monopoly ■ 23 Year Track Record ■ D&B 5 A-1 Rating ■ Operating in 46 Countries ■ Over $600 Million in Assets ■ Publicly Traded on the NYSE (NUS)
Nu Global Monopoly System Global Monopoly ¾ Anyone Can Play ¾ We Present (DVD’s, Live Calls) ¾ We Train (Conf Calls, Maxcast, Websites, Events) ¾ We Pay
Our Monopoly Pays BIG! Global Monopoly Last year NSE paid it’s distributors Approx $500 Million Dollars! OVER $5 BILLION PAID OUT SINCE THE COMPANY’S 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 -487 -1000 or see the end of this presentation.
Avg. Yearly Incomes 2005* Global Monopoly Paid 2 times>> 1 Gold 2 3 Lapis 4 5 Ruby 6 7 8 Emerald 1 $7, 908 2 $16, 056 3 $35, 376 4 $73, 128 5 $133, 164 6 7 9 10 11 12 13 14 15 Diamond Blue Diamond Team Elite $490, 872 Can’t Say! $5 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 -487 -1000 or see the end of this presentation.
Build Your Own Monopoly Global Monopoly Place and Use Your Scanners & Maxcast & Watch Your Monopoly Grow
How To Get Started Global Monopoly • Products @ wholesale • 20% to 30% rebates • Free Rescans • Referral Bonuses • Earn from $100 - $500 per month • Limited Scanner Access DISTRIBUTOR CASUAL PLAN $250 • Earn $13 K in 60 • Place 4 Days and Long. Qualifying Term Income Executive Orders in 1 month and • OTG Team, qualify to lease Resources & an S 2 Scanner Proven System • Qualify for S 1 Scanner • Qualify to purchase a Pro. Derm QUAL. EXEC. ORDER $1250 The only required purchase to become a distributor is a $2 not for profit Business Kit. All product purchases are optional. There are no bonuses paid for recruiting. All bonuses are paid only when products are sold 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.
Monopoly System Schedule Global Monopoly n Maxcast Opportunity Broadcasts on Tuesday & Thursday nights n MTC* Training call / Maxcast Saturday 9 AM n Focus calls Monday 9 AM n Getting Started Maxcast 24/7 n Art of Inviting on Maxcast 24/7 n First Saturday of Month – Organization Scanning Meeting Millionaire Training Circle refers to a program wherein individual distributors are taught by Million Dollar Circle members and/or other distributors how they may be able to achieve the greatest success possible. Million Dollar Circle Member refers to those independent distributors who are members of the Million Dollar Circle having earned over one million dollars in commissions over the life of their involvement with Nu Skin. There are, however, no guarantees of success. Not all distributors make money. 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.
Personal Stories How… Global Monopoly This Business will Change Your Life
What Our Monopoly Offers You Global Monopoly n Favorable Market Trends n Rock Solid Company n Unmatched Products n Leverage for Time and Income n Perfect Timing, Timing!
Monopoly Executive Order Global Monopoly What do I do to get started RIGHT NOW? Purchase Order # 01103407 for $1, 250 Retail Value $1, 950
It’s Time To Play Monopoly Global Monopoly n Get Your Monopoly Exec. Order #01103407 n Start Using the Products n Hold Your Launch Meeting n Tune into Training
Distributor Earnings Global Monopoly n n n NU SKIN ENTERPRISES, INC. DISTRIBUTOR COMPENSATION SUMMARY Company Overview Nu Skin Enterprises, Inc. (together with its affiliates, the “Company”) is a global direct selling company that operates in more than 40 countries throughout North and South America, Asia and Europe. The Company operates in three divisions: (1) the Nu Skin division markets premium quality skin care and personal care products; (2) the Pharmanex division is a science-based developer of nutrition products; and (3) the Big Planet division markets and distributes Internet, technology, ebusiness tools and digital photography products. Distributors The Company markets its products through a network of independent distributors. For purposes of this summary, an “Active Distributor” is a distributor who placed an order for products, promotional materials or services or renewed their distributorship during the most recent three-month period. In the United States, the Company had an average of 49, 267 Active Distributors during 2005. Compensation There are two fundamental ways in which a distributor can earn compensation: Through retail markups on sales of products purchased at wholesale prices; and Through commissions (sometimes called bonuses) paid on one’s product sales and the sales of other distributors in one’s downline sales network. As with any other sales opportunity, the compensation earned by distributors varies significantly. The cost to become a distributor is very low. People become distributors for various reasons. Many people become distributors simply to enjoy the Company’s products at wholesale prices. Some join the business to improve their skills or to experience the management of their own business. Others become distributors, but for various reasons, never purchase products from the Company. Consequently, many distributors never qualify to receive commissions. Generating meaningful compensation as a distributor requires considerable time, effort, and commitment. This is not a get rich quickly program. There are no guarantees of financial success.
Distributor Earnings Global Monopoly n n Retail Markups Distributors can buy Nu Skin, Pharmanex and Big Planet products from the Company at wholesale prices for resale to customers or for personal consumption. Some Big Planet products are services, such as Internet access, on which there is no retail mark-up earned by distributors. In addition, some Big Planet products are lower margin products offered through Internet mall affiliates. Consequently, lower levels of commissions are paid on the sale of such products. The Company’s suggested retail markup is 30% on most of its personal care and nutrition products. However, distributors are free to set their own selling price and may personally consume some of the products they purchase. As a result, the Company currently neither provides an estimate of average income from retail sales nor includes distributor retail income in its average commission information. n n  These numbers are calculated by taking the monthly average commissions and multiplying by twelve.  These percentages are calculated by taking the total monthly Distributor/Executive count and dividing by the total number of monthly actives. One must then add the average percentage of Active Distributors at each level for each month during 2005 and divide by twelve.  This number is calculated by adding the average percentage of Active Distributors in the above table.  This percentage is obtained by taking the total average of monthly actives and dividing by the total average of Distributors on a monthly basis. “Total Distributors” includes all U. S. Distributors who either signed an agreement or renewed their distributorship during 2005 irrespective of their purchasing products, promotional materials or services or earning commissions.  These numbers are calculated by taking the monthly average commissions and multiplying by twelve.  These percentages are calculated by taking the total monthly Distributor/Executive count and dividing by the total number of monthly actives. One must then add the average percentage of Active Distributors at each level for each month during 2005 and divide by twelve.  This number is calculated by adding the average percentage of Active Distributors in the above table.  This percentage is obtained by taking the total average of monthly actives and dividing by the total average of Distributors on a monthly basis. “Total Distributors” includes all U. S. Distributors who either signed an agreement or renewed their distributorship during 2005 irrespective of their purchasing products, promotional materials or services or earning commissions. n n n
Distributor Earnings Global Monopoly n n n n Commissions Distributors can also earn commissions based on the sale of products by a distributor and his/her downline of sponsored distributors in all markets where the Company does business. The Company also sells promotional materials that do not generate commissions to distributors. In 2005 the Company paid approximately $497, 421, 000 in commissions and sales compensation globally. In the same period, the Company paid approximately $81, 239, 947 in commissions to distributors residing in the United States. The following table shows the average commissions paid in 2005 to U. S. distributors at the various levels of the Company’s Sales Compensation Plan, the average percentage of total Active Distributors and the average percentage of Executive-and-above distributors that earned commissions at each level. These figures do not include retail markup income. Title. Monthly Average Commission Income at Each Level for 2005 Annualized Commissions Average Percentage of Active DistributorsAverage Percentage of Executive-and-above level distributors. Active Distributor Earning a Check (Non-Executive)$ 39. 00$ 468. 008. 56%N/A%Qualifying Executive 154. 001, 848. 001. 44 N/AExecutive 361. 004, 332. 003. 7964 Gold Executive 659. 007, 908. 001. 0117 Lapis Executive 1, 338. 0016, 056. 00. 6010 Ruby Executive 2, 948. 0035, 376. 00. 173 Emerald Executive 6, 094. 0073, 128. 00. 091 Diamond Executive 11, 097. 00133, 164. 00. 102 Blue Diamond Executive 40, 906. 00 490, 872. 00. 203 The average commission paid to U. S. Active Distributors each month was $137. 36, or $1, 648. 36 on an annualized basis. In 2005, the average monthly commission paid to U. S. Active Distributors who earned a commission chck was $859. 00, or $10, 306. 00 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 promotion of his/her business and do not include retail markup income. On a monthly basis, an average of 15. 96% of U. S. Active Distributors earned a commission check  Active Distributors represented an average of 34. 79% of Total Distributors.  If you have any questions concerning this information, please contact Distributor Support at (800) 487 -1000.