2 Compensation Plan Our Goal EUROPEANCompensation PlanOur GoalOur mission is to be a force for good throughout the world by empowering people to improve lives with rewarding business opportunities, innovative products, and an enriching anduplifting culture.Our vision is to become the world’s leading direct selling companyby generating more income for distributors than any other company.
3 Compensation Plan Our Compensation Plan EUROPEANCompensation PlanOur Compensation PlanOur compensation plan is recognised as one of the most generous in the industry, rewarding distributors for hard work, long-term commitment, and leadership.Our compensation plan is seamless. Distributors can build sales organisations globally, assured of the same high-quality products throughout the globe, and receive one pay cheque in their local currency.
4 Compensation Plan 5 Basics of Success How does it work? EUROPEANCompensation Plan5 Basics of SuccessHow does it work?There are 5 basic principles of success with Nu Skin Enterprises (NSE):Retail productsSponsor people who use the products/retailBuild an organisation of people who use the products/retailBecome a leader (train and motivate others)Help others become leaders
5 € Compensation Plan Retail Products €100 €143 €43 EUROPEANCompensation PlanRetail Products€Purchase products at Distributor Purchase PriceSell at Suggested Retail Price: + 43%PROFIT€100€143€43
6 Compensation Plan Sponsor EUROPEANCompensation PlanSponsorEach product you purchase contains a point value, Personal Sales Volume (PSV).Your PSV + PSV of downline distributors = GSV (Group Sales Volume)Compensation is based on points and accrued on a monthly basis. (In the examples 1 PSV = 1 Euro. Actual monthly compensation plan payout converts points to commissions by using a set rate established by NSE [Exchange Rate Multiplier -ERM]. The current ERMs as of January 2006 for the European region are: Euro countries x 0.83; DK x 6.15; HU x 200; IS x 69.50; NO x 6.75; SE x 7.4; UK x 0.57.
7 Compensation Plan Activity Bonus - Level 1 EUROPEANCompensation PlanActivity Bonus - Level 1When you have 100 PSV and a personal Automatic Delivery Programme (ADP)* order, you earn:(*ADP order must qualify with 50 PSV before discount)Level 1 = 6% of all PSV on your first level= 100 PSV + 1 personal ADPRETAIL CUSTOMERDISTRIBUTORDISTRIBUTORDISTRIBUTORPREFERRED CUSTOMER
8 Compensation Plan Distributor Example For example: €43 (Retail Profit) EUROPEANCompensation PlanDistributor Example6% on all PSV on Level 16% x 300 = €18100 PSV+ ADP400 GSVRETAIL CUSTOMERYOUFor example:€43 (Retail Profit)+ €18 (Level 1) = €61DISTRIBUTOR100 PSVDISTRIBUTOR100 PSVDISTRIBUTOR100 PSV
9 Compensation Plan Become a Leader Executive Qualification EUROPEANCompensation PlanBecome a LeaderExecutive QualificationBecome an Executive and maximise your compensation potentialLetter Of Intent (LOI) Month = 100 PSV and 1,000 GSVQualifying Executive Month 1 = 100 PSV and 1,500 GSVQualifying Executive Month 2 = 100 PSV and 2,000 GSV
10 Compensation Plan Bonus Doubler EUROPEANCompensation PlanBonus DoublerDuring the LOI and Qualifying Executive months you can earn more!Level 1 = 12% of PSVFor example:€43 (Retail Profit)+ €120 (Level 1) = €163This incentive is automatically paid to all LOI & Qualifying Executives who meet Level 1 & qualification requirements.
11 Qualifying Executive Bonus Pool EUROPEANCompensation PlanQualifying Executive Bonus PoolDistributors in Qualifying Executive Months 1 or 2 will receive shares based on the following criteria:5 new first level actives w/ ADP* = 1 share1 Distributor in LOI month** = 1 share* A new active must be a European ID# with 100 PSV and a qualified ADP in the sign up month or the following month. The ADP must be a European order with a minimum of 50 PSV before the available discounts are applied (or 2 NTC VitaMeal donations). The new active with ADP will count as a share in the month the account has 100 PSV and the first order from the ADP contract is successfully placed in the order system.** A Distributor in LOI month must meet the GSV requirement independent of the volume from any other circle group LOIs. Volume will count for the uplines according to the Who Counts Whom chart, but shares for the pool will only be allocated based on unencumbered volume. Depending on organisation structure, the LOI may count for both a Qualifying Executive and Executive.
12 Qualifying Executive Bonus Pool EUROPEANCompensation PlanQualifying Executive Bonus PoolConditions:The company will reserve 0.25% of the European region’s monthly commissionable sales for this bonus pool.The revenue will be divided by number of shares and each Qualifying Executive will be compensated based on their number of shares.Qualifying Executives cannot participate in the pool during a grace month.Qualifying Executives must have a minimum of 2 shares to participate in the pool.
13 Building an Organisation EUROPEANCompensation PlanBuilding an OrganisationIncrease volume and your cheque increases!Retail Profit: 400 points of your PSV x 43% markup = €172500 PSV + ADP5000 GSVLevel 1: 3,000 points x 12% = €360Level 13,000 PSVLevel 21,500 PSV€532 + Bonus Pool!
14 Compensation Plan Executive Bonus EUROPEANCompensation PlanExecutive BonusAfter successfully completing Qualification, you receive from 9 to 15% on your GSV*Executive Maintenance requirements = 100PSV & 2,000 GSVRetail Profit = 43% markupLevel 1 = 6% of all PSV on L1Executive Bonus = 9 to 15% of all Distributor PSV
15 Compensation Plan Executive Bonus €952 commission cheque! For example: EUROPEANCompensation PlanExecutive BonusFor example:Retail Profit = €172 (43% markup)Level 1 = €180 (6% of all PSV on L1)Executive Bonus = €600 (9 to 15% of allDistributor PSV)€952 commission cheque!500 PSV + ADP5,000 GSV
17 Help Others Become Leaders EUROPEANCompensation PlanHelp Others Become LeadersBy helping others in your organisation complete the Qualification process, they become “Breakaway” Executives.YOURETAIL CUSTOMERBreakaway teamLevel 1DISTRIBUTORDISTRIBUTORLevel 2DISTRIBUTORDISTRIBUTORDISTRIBUTORDISTRIBUTORDISTRIBUTOR
18 Help Others Become Leaders EUROPEANCompensation PlanHelp Others Become LeadersBreakaway Executives are no longer part of your GSV.You are now paid Breakaway Bonus on the GSV of their organisation.When your GSV is 2,000 – 2,999, you are paid 2.5%When your GSV is 3,000 or more, you are paid 5%
19 Compensation Plan Breakaway Bonus Levels paid EUROPEANCompensation PlanBreakaway BonusNumber of first level breakawaysGoldLapisRubyEmeraldDiamondBlue DiamondLevels paid
20 Compensation Plan Executive Bonus Pool EUROPEANCompensation PlanExecutive Bonus PoolExecutives and above will receive shares based on the following criteria:5 new first level actives w/ ADP* = 1 shareDistributor in LOI Month** = 1 shareDistributor in Qualifying Executive Month = 1 share(LOIs and Qualifying Executives do not count as a share when they are taking a grace month)* A new active must be a European ID# with 100 PSV and a qualified ADP in the sign up month or the following month. The ADP must be a European order with a minimum of 50 PSV before the available discounts are applied (or 2 NTC VitaMeal donations). The new active with ADP will count as a share in the month the account has 100 PSV and the first order from the ADP contract is successfully placed in the order system.** A Distributor in LOI month must meet the GSV requirement independent of the volume from any other circle group LOIs. Volume will count for the uplines according to the Who Counts Whom chart, but shares for the pool will only be allocated based on unencumbered volume. Depending on organisation structure, the LOI may count for both a Qualifying Executive and Executive.
21 Compensation Plan Executive Bonus Pool Conditions: EUROPEANCompensation PlanExecutive Bonus PoolConditions:The company will pay 1.5 % of the European region’s monthly commissionable sales for this bonus pool.The net revenues will be divided by number of shares and each Executive will be compensated based on their number of shares.Executives must have a minimum of 4 shares to participate in the pool.
22 Executive with Breakaway Example EUROPEANCompensation PlanExecutive with Breakaway ExampleRetail Profit: 400 points x 43% markup = €172Level 1: 3,000 points x 6% = €180Executive Bonus: 12% x 5,000 = €600Breakaway Bonus:5% x 5,000 = €250€1,202 plus Executive Bonus Pool!
23 Earn up to €31,500! Compensation Plan Leadership Advancement Bonus EUROPEANCompensation PlanLeadership Advancement Bonus(LAB)Earn up to €31,500!The bonus is paid after achieving and maintaining the new Pin Level for a period of two consecutive months without taking a grace month.An additional retention bonus is paid if a new Pin Level is maintained for a period of six consecutive months from being awarded the new level without taking a grace month.
25 DUPLICATION is the key! Compensation Plan Review Set your Goals Retail EUROPEANCompensation PlanReviewDUPLICATION is the key!Set your GoalsRetailSponsorHelp others Retail & Sponsor
26 We take pride in the viable, flexible opportunity that we offer. EUROPEANCompensation PlanReviewWe take pride in the viable, flexible opportunity that we offer.Ultimately, through our seamless compensation plan, entrepreneurs are empowered to improve their financial freedom and security.