32925240-100-points-to-success

8/9/2019 32925240-100-Points-to-Success

1/23

100 Points Towards Success


2/23

Basic Compensation Terms

The point value

assigned to a product

or service

Usually 1 PV = 1

Wholesale Dollar

Point ValuePV

The monthly point

value of the products

and services you and

your retail customers

purchase from the

Company

Personal Sales

Volume

PSV

Monthly deliveryof products of your

choice.

Automatic

Delivery Rewards

ADR

Cumulative sales

volume of PSV,

ADR Customers,

and Distributors in

your sales

organization.

Global Sales

Volume

GSV


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Basic Activity Requirements

100 PSV

This is achieved by generating

100 PSV either from your own

purchases or a combination of

your own and your customers

purchases

You need to be an active distributor toreceive a check from Nu Skin.

LOI and above need to have monthly

ADR order


4/23

3 Ways to Be Paid

5% down

6 levels

Paid as a

leader

9-15% of group

sales volume

5% on

first level volume

Retail markup fromyour retail

consumers

BreakawayExecutiveDistributor

This is a simplified explanation of the compensation plan. See NSE Compensation Plan for complete details.

Wealth Maximizer allows you to earn even

more!


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How to qualify as an Executive

1 to 3 month qualification program

100 PSV

1 ADR2000 GSV

100 PSV

1 ADR1500 GSV

100 PSV

1000 GSV

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

Executive Monthly Maintenance

100 PSV; 2,000 GSV; 1 ADR

3,000 to maximize breakaway commissions


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How an Executive is Paid

Imagine 2 Auditoriums

Circle GroupNon-Executives,

Qualifying Executives and

Customers

A BExecutivesBreakaways


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Auditorium A: Your Circle Group

Includes First Level Through Infinity!

Non-Executives

Qualifying Executives

Customers

$2000 9%

$3000 10%

$5000 11%

$10,000 12%

$15,000 13%

$25,000 14%

$50,000 15%

You Are Paid

9% - 20%

Sliding Scale


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Auditorium A:

Your Circle GroupAuditorium B:

Executive Breakaways

You are paid 5% on each

Executive, 6 Levels Deep


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The Power of the Nu SkinCompensation Plan


10/23

Leverage

6 Levels Deep


11/23

Pays the highest percentage of sales

revenue in commissions of all direct

selling companies traded on the NYSE.

Has paid more than $7B

illionCommissions to date


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*The stated bonus commissions do not represent a distributors profit, as they do not consider expenses incurred by a distributor in the promotion of his/her business. Y ou 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.

2008 Average Annual Incomes

1 2 4 8 12

$9 KPart-Time

$16 KPart-Time

$34 KPart-Time

$114 KFull Time

$512 KFull Time

6

$67 KFull Time


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Worldwide Networks of

Satisfied Consumerswho re-order productsmonth after month

Create Long Term Income Through


14/23

6 Month Theoretical Model

Each Month Enroll 3 Distributors

100 Points Volume

Duplicate Every Month

100 PV100 PV

100 PV100 PV

100 PV100 PV

100 PV100 PV

100 PV

100 PV 100 PV 100 PV

100 PV100 PV100 PV

100 PV

Month 1

Month 2


15/23

6 Month Theoretical Model

L6

L5

L4L3

L2

L1

$20,475

# Dist.

Volume

5% $75$15

1,500300

153

9

63

21month month

3

$315

6,300

63

27

27

9

month

4

$1,275

25,500

255

81108

54

12

month

5

$5,115

102,300

1,023

243

405270

90

15

month

6

409,500

4,095

729

1,458

1,215540

135

18

month


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Results of 6 Month Theoretical Model

$20,475409,500

4,095

729

1,458

1,215

540

135

18

L6

L5

L4

L3

L2

L1

Total distributors

Total volume

5% Commission $233,2754,665,500

56,655

15,625

18,750

9,375

2,500

375

30

3 People 5 People

What If Only

25% Worked?$58,318$5,118

The difference?

2


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Mechanics of Wealth Based

Satisfied Consumers

This Creates

Consistent Volume

Stable, Long Term Incomes


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*The stated bonus commissions do not represent a distributors profit, as they do not consider expenses incurred by a distributor in the promotion of his/her business. Y ou 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


2008 Average Annual Incomes

1 2 4 8 12

$9 KPart-Time

$16 KPart-Time

$34 KPart-Time

$114 KFull Time

$512 KFull Time

6

$67 KFull Time


19/23

How to Make

$3,000+ Per Month

Your Circle Group Your Executive Breakaways

Create 4 Front Line Executives with

5,000 GSV or more.

Create Circle Group of 10,000

10,000 GSV

$1,600

6 Executives

Average 5,000 GSV Each$2,000

TOTAL COMMISSIONS: $3,600


20/23

Would an additional $3,000 per month make adifference for you?

*The stated bonus commissions do not represent a distributors profit, as they do not consider expenses incurred by a distributor in the promotion o f his/her business. You should always use good

judgment in determining the amount of product you purchase. Your expenditure for products should not ex ceed 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 contac t the company at 80 0-487-1000 or see the end of this


Ruby Executive

$34,000 Average Annual Salary in 2008


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Would an additional $40,000 per month make adifference for you?

Blue Diamond

*The stated bonus commissions do not represent a distributors profit, as they do not consider expenses incurred by a distributor in the promotion o f 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 ea rnings/bonuses paid to distributors at all levels within the Sales Compensation Plan, please contact the company at 800-4 87-

1000 or see the end of this presentation or visit www.nuskinenterprises.com.

$512,000 Average Annual Salary in 2008


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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 48 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-baseddeveloper 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 75,710 Active

Distributors during 2008.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 ones

product sales and the sales of other distributors in ones 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 distributorssimply to enjoy the Companys 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 compensationasa distributorrequiresconsiderable

time, effort, and commitment. Thisisnotagetrich quickly program. There

areno guarantees offinancialsuccess.

Retail Markups

Distributors can buy Nu Skin, Pharmanex and Big Planet products from the

Company at wholesale prices for resale to customers or for personalconsumption. 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 Companys 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.

Commissions

Distributors can also earn commissions based on the sale of products by

distributors in 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 2008 the Company paid approximately $529,400,000 in commissions and

sales compensation globally. In the same period, the Company paid

approximately $107,686,324 in commissions to distributors residing in the

United States.

The following table shows the average commissions paid in 2008 to U.S.

distributors at the various levels of the Companys 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 markup income.


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Title MonthlyAverage Commission

Income at Each Level for2008

AnnualizedCommissions1

AveragePercentage of

Active

Distributors 2

AveragePercentage ofExecutive-and-

above level

distributorsActive Distributor Earning a Check (Non-Executive) $62.00 $744.00 7.89% N/A%Qualifying Executive 228.00 2,736.00 1.29 N/A

Executive 441.00 5,292.00 2.96 59.9

Gold Executive 800.00 9,600.00 .93 18.9

Lapis Executive 1,405.00 16,860.00 .53 10.8

Ruby Executive 2,860.00 34,320.00 .19 3.8

Emerald Executive 5,634.00 67,608.00 .09 1.8

Diamond Executive 9,520.00 114,240.00 .08 1.7

Blue Diamond Executive 42,710.00 512,520.00 .15 3.1

The average commission paid to U.S. Active Distributors each month was $118.50, or $1,421.75 on an annualized basis. In 2008, the average monthly

commission paid to U.S. Active Distributors who earned a commission check was $814.50, or $9,774.00 on an annualized basis. Note that these figures do

not represent a distributors 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 14.11% of U.S. Active Distributors earned a commission check. 3Active Distributors represented an

average of 40.71% of total distributors. 4

If you have any questions concerning this information, please contact the company at (800) 487-1000.

1. These numbers are calculated by taking the monthly average commissions and multiplying by twelve.

2. These percentages are calculated by taking the total monthly Distributor/Executive count and dividing it by the total number of monthly Active

Distributors. One must then add the average percentage of Active Distributors at each level for each month during 2008 and divide by twelve.

3. This number is calculated by adding the average percentage of Active Distributors in the above table.

4. This percentage is obtained by taking the total average of monthly actives and dividing it by the total average of Distributors on a monthly basis. Total

Distributors includes all U.S. Distributor accounts currently on file, irrespective of their purchasing products, promotional materials or services or earning

commissions. Distributor numbers do not include customer or Preferred Customer accounts

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