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SALES COMPENSATION PLAN PRESENTATION SALES COMPENSATION PLAN EMEA Nu Skin® is THE DIFFERENCE. DEMONSTRATED. By partnering with you, we continue to distinguish ourselves as the true leaders in global compensation. Our vision is perfectly clear – to become the world’s leading direct sales company by generating more income for our Distributors than any other company. This presentation is an overview only. Complete details are available online by visiting our website (www.nuskin.com) and clicking on Opportunity. step 1 GETTING STARTED IMPORTANT TERMS TO UNDERSTAND PSV and CSV: which is which? • Personal Sales Volume (PSV) is the monthly point value of the products and services you and your retail customers purchase from the company. • Group Sales Volume (GSV) represents the total PSV in your Circle Group, including your own PSV, for a given month. • Commissionable Sales Value (CSV) is the value used to calculate monthly commissions. It is equal to the wholesale price of a product or service minus any taxes, Fast Start Payments (FSP) and discounts (ADR, web, etc.). step 1 GETTING STARTED IMPORTANT TERMS TO UNDERSTAND • Each product is assigned a PSV and a CSV. • You fulfil Executive Maintenance Requirements and other qualification requirements using PSV and GSV. • You will be paid on CSV, utilising the principles of the Wealth Maximiser Sales Compensation Plan. step 1 GETTING STARTED BEGIN BUILDING YOUR CONSUMER AND DISTRIBUTOR NETWORK EARNING POTENTIAL As a Distributor* you can earn: • A margin on the sales you make to your customers. RETAIL CUSTOMER YOU RETAIL CUSTOMER • A commission of up to 30% profit on retail customer sales**. • Earn an L1 Bonus of 5% based on the monthly CSV of all personally sponsored Distributors and Preferred Customers. • Earn Fast-Start Payments (Payment from the sale of Fast-Start Product Packages). LEVEL 1 (L1) DISTRIBUTOR DISTRIBUTOR PREFERRED CUSTOMER Note: Commissions and sales bonuses are paid only to active Distributors. See glossary in Sales Compensation Plan for explanation of Active Requirements, including retail sales requirements. * The only requirement to become a Distributor is a registration fee. There are no bonuses paid for recruiting. All bonuses are paid only when products are sold. ** You are free to set your own resale prices. step 1 FAST-START PAYMENTS MAXIMISE YOUR EARNINGS* Fast-Start Product Packages are designed to get new Distributors off to a flying start: • They contain a selection of the best-selling Nu Skin Enterprises products at an attractive price. • Additionally, they offer extra earning potential. As a Distributor you can earn: Example: • Up to 30% profit on retail customer sales. • L1 Bonus of 5% based on the monthly CSV of all personally sponsored Distributors and Preferred Customers. • Fast-Start Payments (Payment from the sale of Fast-Start Product Packages). • • • • €250 Price of the Product Package 200 PSV 150 CSV €50 Fast-Start payment * The content, price, Personal Sales Volume (PSV) and Fast-Start Payment may vary between countries. Please contact your local office for details. The purchase and retailing of Fast-Start Product Packages is optional. step 2 LEADERSHIP DEVELOPMENT EXECUTIVE QUALIFICATION PROCESS Build your organisation to become an Executive leader and see your earnings multiply.** YOU RETAIL CUSTOMER 3-MONTH EXECUTIVE QUALIFICATION MONTH 1 (LOI) 100 PSV + 1,000 GSV* MONTH 2 (Q1) PREFERRED CUSTOMER DISTRIBUTOR DISTRIBUTOR PREFERRED CUSTOMER 100 PSV +1,500 GSV MONTH 3 (Q2) 100 PSV + 2,000 GSV PREFERRED CUSTOMER EARNING POTENTIAL During Executive Qualification you can earn: • A margin on the sales you make to your customers. • Up to 30% profit on retail customer sales. • L1 Bonus of 5% based on the monthly CSV of all personally sponsored Distributors and Preferred Customers. • Fast-Start Payments (Payment from the sale of Fast-Start Product Packages). DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR * GSV or Group Sales Volume represents the total PSV in your Circle Group, including your own PSV, for a given month. ** For a summary of earnings/bonuses paid to Distributors at all levels within the Sales Compensation Plan, please visit our website (www.nuskin.com) or contact your local Account Manager. step 2 LEADERSHIP DEVELOPMENT INCREASE YOUR BONUS POTENTIAL EARNING POTENTIAL EXECUTIVE BONUS Your GSV 2,000-2,999 GSV 3,000-4,999 GSV 5,000-9,999 GSV 10,000-14,999 GSV 15,000-24,999 GSV 25,000-49,999 GSV 50,000+ GSV You earn 9% 10% 11% 12% 13% 14% 15% As an Executive you can earn: • The same as during Executive Qualification. PLUS • A monthly Executive Bonus (EB) on your total circle group CSV. • The opportunity to participate in the EMEA Executive Duplication Bonus. Note: Executive Maintenance Requirements are a minimum of 100 PSV and 2,000 GSV. step 2 EXECUTIVE LEADERSHIP EARNINGS WHO COUNTS WHOM? The following chart explains who in your downline you may count towards your GSV requirement as you proceed through qualification and for additional bonuses. Volume/points generated by Preferred Customers in your Circle Group will always be included in your GSV. DOWLINE TITLE YOUR TITLE Distributor LOI (month 1) Q1 (month 2) Q2 (month 3) Executive Provisional Executive Distributor * * * * * * LOI (month 1) * * * * * * Q1 (month 2) * * Q2 (month 3) * * Executive Provisional Executive NU SKIN®’S REVOLUTIONARY WEALTH MAXIMISER step 3 ENSURES THE MAXIMUM PAYOUT FOR YOU WEALTH MAXIMISER MAXIMISE YOUR BONUS POTENTIAL WEALTH MAXIMISER VOLUME MAXIMISER: DEPTH MAXIMISER: OR EEB Bonus + DBLG1 Bonus EXTRA EXECUTIVE BONUS (EEB) MIN. GSV BONUS % 3,000 5% on your CSV Breakaway Executive Bonus TITLE GOLD 1 2 DOUBLE G1 BONUS (DBLG1) MIN. GSV BONUS % 3,000 10% on your CSV 3 4 5 Volume Maximiser: Earn an Extra Executive Bonus PLUS a Double G1 Bonus. LAPIS RUBY EMERALD DIAMOND BLUE DIAMOND Number of G1 Breakaway Executives 1 + Increase your earning potential as Nu Skin® pays you the maximum commission possible. 6 2,3 4,5 6,7 8,9,10,11 12 5% EARNING POTENTIAL With Wealth Maximiser earn: • Commissions from Steps 1 and 2, PLUS 5% 5% 5% 5% 5% Depth Maximiser: Earn up to 5% commission on the CSV of every Breakaway Executive in your organisation up to six generations deep. • The method that pays you the most from the 2 Wealth Maximiser calculations. step 3 NU SKIN®’S REVOLUTIONARY WEALTH MAXIMISER AUTOMATICALLY PAYS THE CALCULATION THAT EARNS YOU THE MOST VOLUME MAXIMISER DEPTH MAXIMISER DBLG1 at 10% €900 G2-G6 at 0% €0 TOTAL €1,012.50 G1 at 5% €450 G2 at 5% €225 TOTAL €675 RUBY EXECUTIVE (YOU) 100 PSV, 3,000 GSV, 2,250 CSV EXECUTIVE 3,000 GSV, 2,250 CSV € 675 €1,012.50 WEALTH MAXIMISER GOLD EXECUTIVE 3,000 GSV, 2,250 CSV GOLD EXECUTIVE 3,000 GSV, 2,250 CSV EXECUTIVE 3,000 GSV, 2,250 CSV EXECUTIVE 3,000 GSV, 2,250 CSV EXECUTIVE 3,000 GSV, 2,250 CSV G1 - TOTAL CSV: 9,000 €112.50 G2 - TOTAL CSV: 4,500 OR EEB at 5% EXECUTIVE MAINTENANCE REQUIREMENTS MONTHLY EXECUTIVE MAINTENANCE REQUIREMENTS: To earn commissions and to receive the Executive bonuses: a minimum 100 PSV and 2,000 GSV are needed. What happens if an Executive fails to maintain the maintenance requirements? Maintenance requirements: What happens? Title: Payout: Not reached in May Pin Title Grace Month (available once per 12month period) Executive L1 Bonus (if Executive has 100 PSV. FastStart Payments and retail profits, but not the Executive bonuses) Again not reached in July Provisional Executive status for up to 3 months (available once per Executiveship) Provisional Executive* (counts as a Breakaway Executive for upline) L1 Bonus (same as above) Reached in September Promotion in September Executive Paid as Executive Not reached in October Demotion in October Demoted Executive L1 Bonus (if Distributor has 100 PSV. FastStart Payments and retail profits) Re-entry** Executive (if achieve within 6 months, original Breakaway Executives are regained) Paid as Executive Distributor completes qualification process again * Allowed once per Executiveship, however, Distributor must wait 12 months after the completion of the Provisional Executive cycle before using it again. ** Executives who enter Executive Re-entry to retain their previous Executiveship, will not be eligible to reuse Provisional Executive status. EXECUTIVE DUPLICATION BONUS* EARN A SHARE OF THE EMEA SUCCESS Executives and above with 3,000 monthly GSV can qualify to earn a share of the EMEA monthly commissionable sales volume through the Executive Duplication Bonus**: EMEA Executive Duplication Bonus Pool Criteria Passing Qualifying Executive Month 2 (Q2) 1 Share New Executive Month 1 with 3000 GSV 1 Share New Executive Month 2 with 3000 GSV 2 Shares New Executive Month 3 with 3000 GSV 3 Shares Note: The Qualifying Executives and Executives must be from one of the EMEA markets in order to count as a share for the upline. * The Executive Duplication Bonus is a temporary incentive and is not a part of the Sales Compensation Plan, it may be modified or discontinued at any time with 30 days notice. ** In order to qualify, Distributors must meet the minimum bonus and sales criteria in effect at the end of each commission period and fulfil the Active Requirements of the Sales Compensation Plan. THANK YOU