Disclaimer These materials have been produced by Brian and Melanie Fischer, Arbonne Independent Consultants, and are not official materials prepared or provided by Arbonne International, LLC. Arbonne makes no promises or guarantees that any Consultant will be financially successful as each Consultant’s results are dependent on his or her own skill and effort. Actual financial results of all Arbonne Independent Consultants for the preceding year are contained in Arbonne’s Independent Consultant Compensation Summary, which is included with these materials. You may also view the Independent Consultant Compensation Summary on Arbonne’s official website at www.arbonne.com/company/iccs.asp 1
Independent Independent Consultants Consultant Brian NVP & Melanie Jerry Fischer Conti, 8/5/06 2/17/06
Four Pillars of Wealth Your Pathway to Financial Freedom
If something of knowledge or value is given to you, you are obligated to share it with others – ancient proverb
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1.
Expanding Markets
2.
Consumable Products
3.
Timing and Trends
4.
Ability to Leverage
Independent Independent Consultants Consultant Brian NVP & Melanie Jerry Fischer Conti, 8/5/06 2/17/06 Brian & Melanie Fischer, Independent Consultants 8/5/06
Introducing Arbonne International l
Founded by Petter Mørck a Norwegian entrepreneur in 1980.
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A research & development company (AIRD). They help formulate the highest grade products based on botanical principles that are pure, safe & beneficial.
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Owned by Harvest Partners Inc, Private equity Investment firm with approx $1 billion under management.
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Member of the Direct Selling Association (DSA).
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Privately held successful company for 25+ years.
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240,000 Sq. Ft. infrastructure in Irvine, California to handle expected growth.
3 Independent Consultants Brian & Melanie Fischer 8/5/06 Brian & Melanie Fischer, Independent Consultants 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Arbonne’s Management Team
Robert Henry CEO
Stian Mørck Executive VP 4
Rita Davenport, President
Candace Keefe Sr. Vice President Product Development and Field Events
Carol Hukari Sr. VP, Operations
Mark I. Lehman CFO Independent Consultants & Melanie Fischer 8/5/06 Brian & Melanie Fischer, Brian Independent Consultants 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Introducing Arbonne’s Institute of Research & Development l
AIRD is located in Sion Switzerland and is run by Director, Pierre Bottiglieri.
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Pierre has been a member of the Swiss Society of Cosmetic Chemists (Swiss SCC) since 1972 and served as President from 1990 until 2000.
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All of Arbonne's premium Swiss Skin Care products are meticulously formulated in Switzerland and made in the U.S.A, where each individual product has a proprietary formula that is never compromised.
5 Independent Consultants Brian & Melanie Fischer 8/5/06 Brian & Melanie Fischer, Independent Consultants 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Introducing Arbonne’s Product Line l
Nutrition
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Weight Loss
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Anti-Aging Skin Care
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Personal Care
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Aromatherapy
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Cosmetics
6 Brian Independent & Melanie Consultants Fischer, Independent Brian & Melanie Consultants Fischer 8/5/06 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Pillar 1 – Expanding Market Baby Boomers l
Baby boomers are those born between 1946 to 1964. (41 to 59 years old)
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They represent 1/3 of the United States population and control over 65% of the spending.
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There are over 1 billion baby boomers world-wide.
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Latino Market…
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Canadian Market…
Source: Brilliant Compensation Video
7 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Arbonne’s Opportunity Meets all 5 leading trends l
Trend #1- Baby boomers don’t want to age!
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Trend #2- Baby boomers need more money for retirement.
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Trend #3- Every 6 seconds a home-based business starts in America.
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Trend #4- Health & Wellness industry will experience a 500% growth over the next 5 years.
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Trend #5- Consumers are health conscious and want natural products that work.
8 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Pillar 2 – Consumable Product According to Dr. Charles King, renowned professor of business practices, the second business principle necessary for a successful business - unique, high quality, valuepriced consumable products.
Arbonne’s products meet this critical requirement • NutriMinC® RE9 Anti-Aging Systems • Figure 8™ Weight Loss • Nutritional Supplements • Personal Care • Aromatherapy • Cosmetics 9 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Arbonne’s Revolutionary NutriMinC® RE-9
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An advanced system of products that combines plant-derived nutrients, beneficial vitamins in an advanced liposome delivery system
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Highly active form of vitamin C plus the Bio-Hydria® Complex
NutriMinC® RE9 Anti-Aging
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U.S. Swiss patent-pending
Skin Care System
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9 Result-Oriented Elements to combat the visual signs of aging
10 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Arbonne’s Figure 8™ Weight Loss Program 4 Products Make it Simple l Go Easy Protein Shake l Just Go Orange Fiber Shake l Going, Going Gone Dietary Supplement l On the Go Weight Loss Chews 8 Dietary Elements Make it Work l High protein l Low carbohydrate l Low Fat / No saturated fat l No cholesterol l No artificial sweeteners, colors or flavors l No animal product/by products (vegetarian) l Suppresses appetite l Boosts metabolism / increases energy
11 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Pillar 3 – Timing & Trends Did You Know? l
Only 4% of the American population makes more than $100,000 per year.
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Each day in the U.S. more than 3,100 jobs are lost due to downsizing.
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47% of the companies that made up the Fortune 500 companies in 1980 are no longer in operation today.
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33% of the American workforce has a second job.
Source: Census 2000, U.S. Department of Labor
12 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
The American Dream Out of all retired people in America only 2% are financially free…
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45% Are dependent on relatives. 30% Are dependent on charity.
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23% Are still working.
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Out of those 2%... l l l l
1%- Are movie stars, rock stars and professional athletes. 5%- Are top sales leaders. 10%- Are high level business executives. 10%- Are Doctor’s and Lawyers. Source: U.S. Department of Labor
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74%- Own their own business!
13 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Home Based Business “It is anticipated that by the year 2005, 50% of households in the United States will be involved in a home based business” Newsweek Magazine l
Tax advantages (ask your tax adviser)
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Passive income
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Work for yourself & have no boss
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No traffic, set your own hours
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Phenomenal potential success
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Helping other people
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Doing what you want, when you want
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Stay home with your children
14 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
4 Stages of a Company Stabilization
Occasionally when a Network Marketing company distributes approximately $50 million in annual product sales, the company tends to move vertically.
Concentration
Popular Growth
Critical Mass
$50 Million in Sales
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Formulation Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Arbonne’s Timing & Growth • 70.6% growth in 2002 over 2001 • 111.8% growth in 2003 over 2002 • 98.2% growth in 2004 over 2003 • 164.0% growth in 2005 over 2004
Critical Mass $50 Million
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1980
April 2003 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Pillar 4 – Ability to Leverage I would rather have 1% of 100 people’s effort, than 100% of my own.. J. Paul Getty The 40-40-40 Plan l Most people work 40 hours l For 40 years of their life l To retire on 40% of their income This just doesn’t work! 95% of Americans at the age of 65 are either dead or dead broke.. (U.S Department of Labor)
You don’t have to be one of them!
17 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
The NutriMinC® Re-9 Fast Track
Your first month your sponsor will help you find 4 people who want Financial and Time Freedom! You help them find 4 people
You help them find 4 people
You would have 84 consultants in your organization
If you and each Consultant works 10 hours per week, you would be paid on 850 hours of productivity. It is unrealistic that any organization will develop this way.
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This illustration is for demonstration purposes only. Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Corporate America vs. Network Marketing The Pyramid Myth Corporations
CEO President
Vice Presidents Middle Management
Employees
Network Marketing
Many Distributors
Many Distributors Many Distributors
19 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
What Are Your Choices? 1. You can start a small business- It will cost you from $20K to $100K to start. 2. You can start a franchise- You will need excellent credit and from $50K to $1 million in capital. 3. You can become an investor…in the Stock Market, Real Estate, etc…You will need capital, expertise, time and there are no guarantees. …Or you can start your own business
with a minimal start up cost and devote 7-15 hours per week… 20 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
The Power of Network Marketing Arbonne International Distribution System Network marketing is simply a distribution system, or form of marketing, which channels goods or services from the manufacturer to the consumer through a "network" of independent distributors. It's a wonderfully effective system that cuts out the "middleman" found in most industries.
Source www.arbonne.com
Over $29 billion in goods and services are sold through network marketing / direct sales companies in the U.S. Source DSA
21 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
What are leaders saying? The greatest entrepreneurial opportunities will be in distributing, rather than manufacturing health & wellness products and services” Paul Zane Pilzer, Economist & Author Best Selling Book Unlimited Wealth
"While poor people are looking for a secure job, rich people are building a network!" Robert Kiyosaki, Author of Best Selling Book -Rich Dad, Poor Dad
“I think network marketing has come of age. It's become undeniable that it's a viable way to entrepreneurship and independence for millions of people” Dr. Stephen R Covey, Interview with Network Marketing Lifestyles, April 1999 22 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
The Perfect Business l l l l l l l l
No Boss! No Employees! No Income Restrictions! No Complex Tax Returns! No Extensive Paper Work! No Large Overhead! No Warehousing! No Geographical Limitations In United States or Canada!
23 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
How Are You Compensated? 4 levels you can achieve in Arbonne… 1. District Manager (GRV $2,500) 2. Area Manager (GRV $10,000) GRV = Group Retail Volume
3. Regional Vice President (GRV $40,000) 4. National Vice President (GRV $160,000) For more details please refer to pages 26 & 27 in this presentation for the 2006 Independent Consultant Compensation Summary (ICCS)
24 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Stepping Up in Management National Vice President $1000 Mercedes-Benz Cash Bonus Additional 1% + bonuses
Regional Vice President $800 Mercedes-Benz Cash Bonus Additional 3% + bonuses
Area Manager .
Additional 6% + bonuses
District Manager Consultant 35% commissions on all retail sales + 4% on personally sponsored consultants + bonuses
$8% + bonuses
THERE ARE NO GUARANTEES REGARDING INCOME, AND THE SUCCESS OR FAILURE OF EACH INDEPENDENT CONSULTANT, LIKE ANY OTHER BUSINESS, DEPENDS ON EACH INDEPENDENT CONSULTANT’S OWN SKILLS AND PERSONAL EFFORT. YOU SHOULD NOT RELY ON THE RESULTS OF OTHER CONSULTANTS AS AN INDICATION OF WHAT YOU SHOULD EXPECT TO EARN. ARBONNE IS A PRODUCT-DRIVEN COMPANY THAT STRONGLY ENCOURAGES CONSUMERS TO USE ITS PRODUCTS BEFORE ATTEMPTING TO BUILD A BUSINESS.
25 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Independent Consultant Compensation Summary Company Overview Arbonne International, LLC (the “Company”) is a direct selling company that operates in the United States and its territories. Arbonne markets an exclusive line of high quality skin care, color cosmetics, nutrition and aromatherapy products based on natural and botanical principles.
Our Independent Consultants Arbonne markets its products exclusively through a network of Independent Consultants. The Company had an average of 365,348 registered, Independent Consultants during the four quarters in 2005. A “Registered Consultant” is: (a) one whose Arbonne Consultant Application or Renewal has been accepted by Arbonne within the preceding 12 calendar months; or (b) one who has a Consultant application on file and has placed an order for products or promotional materials with Arbonne within the preceding 12 calendar months.
Arbonne’s Compensation Plan There are two basic ways in which an Arbonne Independent Consultant can earn compensation: Through retail profit on sales of products purchased at wholesale prices from the Company Through overrides and bonuses paid on a Consultant’s product sales volume and the sales volume of other Consultants on their team … also known as their downline. As with any other sales opportunity, the compensation earned by Arbonne Independent Consultants varies significantly. The cost to become a Consultant is very low and people become Consultants for various reasons. Most notably, people become Consultants because it allows them to purchase our products at the lowest possible price. Others join to earn extra part-time income, while others join on a full-time professional basis. Generating meaningful compensation as an Arbonne Independent Consultant requires considerable time, effort, and commitment. This is not a get-rich-quick program and there are no guarantees of financial success. It is an opportunity that is shared by thousands who have chosen to embrace the Arbonne products and/or business. The success or failure of each Arbonne Independent Consultant, like any other independent business, depends on each Independent Consultant’s own skills and personal effort. Arbonne is a product-driven company that strongly encourages people to try our products as customers before building a business.
Consultant 35% Wholesale Discount Independent Consultants can buy Arbonne products from the Company at wholesale prices for resale to Clients or for personal use. The Company’s Suggested Retail Price for items reflects a 53.8% retail profit potential for Consultants (because they purchase at a 35% discount). However, Consultants are free to set their own selling price as they see fit. Most Consultants personally use the products in addition to retailing them. As a result of these different scenarios, Arbonne does not provide an estimate of average or actual Consultant income from retail sales in this compensation summary.
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Earning Overrides and Bonuses Consultants can also earn commissions, referred to as overrides and bonuses, based on their own sales of products and the sales of their downline of sponsored Consultants in the U.S. and Canada. Arbonne also sells promotional materials — known as Business Aids — that do not generate overrides and bonuses to Consultants because these are sales support tools, not products. During 2005, the Company paid in excess of $147 million in overrides and bonuses to Independent Consultants in the US. These payments are reflected in the table below:
Title
Consultants4
Total Average Quarterly Overrides & Bonus
Average Quarterly Overrides & Bonus1
Average % of Total Registered Consultants2 Receiving an Override/Bonu s
Average % of all Consultants at Managers & VP Ranks
Average number of months to promote to designated rank3
$837,726
$222.15
1.03%
NA
NA
District Managers
$5,784,685
$875.01
1.81%
73.24%
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Area Managers
$8,507,626
$4,654.06
0.50%
20.25%
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Regional Vice Presidents
$9,225,271
$20,319.98
0.12%
5.03%
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National Vice Presidents
$12,601,931
$94,044.26
0.04%
1.48%
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The average override and bonus paid to all Registered Consultants in the U.S. was $101.16 per quarter and $404.63 on an annualized basis. During the four quarters in 2005, an average of 12,798 Registered Consultants (3.50% of all Registered Consultants) received an override or bonus check from Arbonne. The average quarterly override and bonus paid to Registered Consultants in the U.S. that qualified for an override and bonus check was $2,887.74 or $11,550.94 on an annualized basis. Note: These figures do not represent Consultants’ profits, as they do not consider expenses incurred by consultants in the promotion of their business and do not include retail profit. THERE ARE NO GUARANTEES REGARDING INCOME, AND THE SUCCESS OR FAILURE OF EACH INDEPENDENT CONSULTANT, LIKE ANY OTHER BUSINESS, DEPENDS ON EACH INDEPENDENT CONSULTANT’S OWN SKILLS AND PERSONAL EFFORT. YOU SHOULD NOT RELY ON THE RESULTS OF OTHER CONSULTANTS AS AN INDICATION OF WHAT YOU SHOULD EXPECT TO EARN. ARBONNE IS A PRODUCT-DRIVEN COMPANY THAT STRONGLY ENCOURAGES CONSUMERS TO USE ITS PRODUCTS BEFORE ATTEMPTING TO BUILD A BUSINESS. 1
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Since not all Registered Consultants earn overrides and bonuses, these numbers represent the average quarterly override and bonuses paid to the individuals who did. 2 These percentages are calculated by taking the average number of people qualified for each level during an entire quarter, adding all four quarters up and dividing by four. 3 Average number of months to promote to designated ranks is based on all promotion results for 2005. 4 These are the individuals who are at the Consultant rank and received an override or bonus check. 5 These numbers were attained by dividing the Total Average Quarterly Overrides and Bonus paid by the quarterly number of average Registered Consultants.
Training & Support We will provide for you… l l l l l l l l l
How to present the Arbonne business… How to present the products… How to find customers & business consultants.. How to develop leaders… Private 1 on 1 coaching.… Weekly training calls... Online web-based training… Local & national business meetings… National training conferences…
28 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
The Timing is Right for Arbonne Is the Timing Right For You? l
Solid 25 year old successful company.
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Positioned in front of the baby boomers with products they demand.
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Latin division is an incredible ground floor opportunity.
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In a huge momentum phase with 500K active Independent Consultants.
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$400 Billion industry predicted to go to $1 Trillion over the next 5 years.
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Every 6 seconds someone starts a home based business in America.
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You have a team of professionals to train and support you, every step of the way
29 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Getting Started with Arbonne 1.
Client- And receive excellent customer Service
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Independent Consultant- Your cost is $29-Save 35% to 50% off the retail price. This is a great way to create a profit center for medical practice or an appointment based business or to make extra money.
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Business Builder- Your cost is $29 and we suggest you purchase a Spa Package and or one of our Getting starting packages that range from $500 to $2000.
All Products have a 45 day Money Back Guarantee.
30 Independent Consultants Brian & Melanie Fischer 8/5/06 Independent Consultant NVP Jerry Conti, 2/17/06
Four Pillars of Wealth Your Pathway to Financial Freedom
Thank you for coming
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Independent Independent Consultants Consultant Brian NVP & Melanie Jerry Fischer Conti, 8/5/06 2/17/06