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©2006 ARBONNE INTERNATIONAL® LLC . ALL RIGHTS RESERVED. 9400 JERONIMO ROAD, IRVINE, CA 92618 | 1.800.ARBONNE | WWW.ARBONNE.COM
A R B O N N E I N T E R N AT I O N A L ®
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What I will share with you
✓ A little about my background ✓ Our industry ✓ Our company and our products
A R B O N N E I N T E R N AT I O N A L ®
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A little about me… What brought me here Why I chose Arbonne Why I wanted this opportunity My Arbonne story… “I joined Arbonne because I saw the freedoms that Arbonne has to offer me — freedom to choose when I work, how hard I work and how much I get paid. I love being the one in control of my family’s future!” Independent Consultant, National Vice President Carol Egleston; Broken Arrow, OK A R B O N N E I N T E R N AT I O N A L ®
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What is important to you…
Spending time with family? Helping other people? Being debt-free? Owning your home? Retirement savings? Taking vacations/traveling the world? Freedom to live how you choose? Where do you see yourself in five years? A R B O N N E I N T E R N AT I O N A L ®
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According to current trends People are looking for… Job security Debt-free lifestyle Financial security Freedom to make choices Wellness and a healthy lifestyle People want more money and more time
A R B O N N E I N T E R N AT I O N A L ®
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How can you get more money and more time?
Creating wealth is the solution… Ownership is a key to creating wealth
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Ownership options 1) Start your own company 2) Purchase a franchise 3) Go back to school and become a professional All of these require financial and time risks that most cannot afford
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Another option... network marketing a viable alternative Most can afford to start a network marketing business Minimal start-up costs Ability to leverage your time with the efforts of others Can be built alongside your current profession Providing the opportunity to make money and the flexibility to choose the time that works best for you A R B O N N E I N T E R N AT I O N A L ®
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Additional benefits of network marketing Unlimited income potential Hands-on way to sell product one-on-one Face-to-face selling builds tremendous long-term Client loyalty Business that impacts your life directly with rewards and compensation A R B O N N E I N T E R N AT I O N A L ®
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Network marketing 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 Consultants. It’s a wonderfully effective system that cuts out the “middleman” found in most industries. traditional manufacturer retail
wholesaler
network manufacturer marketing
independent consultant
warehouser
advertiser
retailer consumer
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The network marketing industry: larger than you may think U.S. retail sales have nearly doubled since 1993 — $14.9 billion to $29.73 billion in 2004 $29.73 billion dollars in direct sales each year 13.6 million salespeople in the United States 54 million distributors worldwide
Source: Direct Selling Association, Fact Sheet World Federation of Direct Selling Associations, Worldwide Direct Sales Data, January 12, 2006 A R B O N N E I N T E R N AT I O N A L ®
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Choosing a network marketing company When choosing a network marketing company there are four key factors to look for: 1) Market demand 2) Consumable products 3) Timing and trends 4) Leveragability Source: Dr. Charles King, renowned professor of business practices
✓ Arbonne meets all four key factors A R B O N N E I N T E R N AT I O N A L ®
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Market demand = sales Although Arbonne has products that target all age groups, baby boomers are the largest target market Born between 1946 and 1964 Represent nearly 1/3 of the U.S. population Control nearly 2/3 of the U.S. spending Over 32 million over the age of 50 Source: U.S. Census Bureau 2002
✓ Arbonne’s REvolutionary anti-aging philosophy extends through all our product lines and meets the demands of this expanding market
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Consumable product Everyday use = Repeat sales Arbonne offers pure, safe, beneficial product lines including: - Pure Swiss skin care formulated in Switzerland, made in the United States - Color cosmetics - Nutrition - Weight loss - Aromatherapy
✓ All Arbonne products are consumable — most are used every day!
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Timing and trends People are looking for a way to create an additional income stream 33% of the American workforce does something else for extra money Only 4% of Americans make over $100,000 a year Source: Census 2000, U.S. Department of Labor
“…by the year 2005, 50% of households in the U.S. will be involved in a home-based business.” — Newsweek Magazine
✓ Arbonne’s opportunity meets the timing and trends of today
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Leveragability
With time leveraging, you get paid not only for the hours YOU work, but you get paid for the efforts of others - Work just 10 hours a week - Find 4 people to do the same - Benefit from 50 hours of earning power
✓ Arbonne’s business-building system allows Consultants to leverage their time
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Arbonne International® A tradition of phenomenal products and extraordinary people
A R B O N N E I N T E R N AT I O N A L ®
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About Arbonne International® Established in the United States in 1980 Complete line of pure Swiss skin care products, formulated in Switzerland, made in the USA Color cosmetic, nutrition, weight loss and aromatherapy products Distributed through its network of more than 800,000 Independent Consultants in the United States and Canada Member of the Direct Selling Association (DSA) Industry that shared $29.73 billion in U.S. retail sales in 2004 A R B O N N E I N T E R N AT I O N A L ®
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7 Avenues of Income 1) Retail profit — 35% of suggested retail 2) Pay bonuses — on business-building activities 3) Mercedes-Benz Cash Bonus Program — hundreds on the road 4) Overrides — generous percentages 5) Life insurance benefits — just in case 6) Travel opportunities — for spouses, too 7) Campaigns and incentives — jewelry and more A R B O N N E I N T E R N AT I O N A L ®
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Arbonne’s record-breaking growth 13.5% growth in 2001 over 2000 70.6% growth in 2002 over 2001 111.8% growth in 2003 over 2002 98.2% growth in 2004 over 2003 164% growth in 2005 over 2004
2000
2001
2002
2003
2004
2005
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What is fueling this REvolutionary growth? 1) Arbonne’s REsult-oriented product lines 2) Our proven system to build a business 3) Excellent support and training 4) NutriMinC® RE9 U.S. and Swiss patentpending six-product system for face A R B O N N E I N T E R N AT I O N A L ®
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The Arbonne Difference | Premium Skin Care Products Formulated in Switzerland | Made in the USA
Our proprietary formulas are: - Botanically-based - pH correct - Hypoallergenic - Dermatologist-tested - Never tested on animals - Formulated without animal products or by-products - Formulated without mineral oil - Formulated without dyes or chemical fragrances* *From time to time, Arbonne will incorporate fragrances in specialty bath and body skin care products. This inclusion will be clearly marked as fragrance on the ingredient list. Keep in mind, all products must pass voluntary Repeat Insult Patch Tests to ensure safety to the consumer prior to introduction. A R B O N N E I N T E R N AT I O N A L ®
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NOT-SO-BASICS SKIN & BODY CARE | BEYOND BASICS | ANTI-AGING | BABY
| NOT-SO-BASIC(S) |
| ANTI-AGING |
| AROMATHERAPY |
| NUTRITION |
| WEIGHT LOSS |
ARBONNE INTELLIGENCE ... NOT-SO-BASIC SKIN CARE™ — FACE PRODUCTS
befoRE sun
ARBONNE AROMASSENTIALS AWAKEN
ARBONNE SMART NUTRITIONAL HYBRIDS™
FIGURE 8® WEIGHT LOSS SYSTEM
ARBONNE INTELLIGENCE ... NOT-SO-BASIC SKIN CARE™ — SPECIALTY PRODUCTS
NutriMinC® RE9
ARBONNE AROMASSENTIALS REACTIVATE
ARBONNE BIO-NUTRIA® FITNESS
FIGURE 8® VANISH™
| COLOR |
ARBONNE INTELLIGENCE ... NOT-SO-BASIC SKIN CARE™ — BODY PRODUCTS
NutriMenC™ RE9
| BEYOND BASICS |
ARBONNE AROMASSENTIALS UNWIND
ARBONNE BIO-NUTRIA® LONGEVITY & HEALTH
ABOUT FACE COLOR
| BABY |
| BALANCE |
A R B O N N E I N T E R N AT I O N A L ® ARBONNE INTELLIGENCE ... NOT-SO-BASIC SKIN CARE™ — HAIR PRODUCTS
ARBONNE CLEAR ADVANTAGE
NATURAL BALANCING CREAMS
ARBONNE BIO-NUTRIA® REMEDY
opportunity | u.s. ARBONNE BABY CARE (ABC)
A proven business-building system Teamwork = Results C
Find 4 Business Builders
Average “C” Commission $75.05/month
D
Help 4 Cs Find 4
Average “D” Commission $291.67/month
A
Help 4 Ds
Average “A” Commission $1,551.35/month
R
Help 4 As
Average “R” Commission $6,773.33/month
N
Help 4 Rs
Average “N” Commission $31,348.09/month
(Average commission only applicable to Consultants eligible for commissions — see Arbonne ICCS for details)
The average income figures stated in the above chart are not a representation of the income you will, or can expect, to earn as an Independent Arbonne Consultant. Some Consultants will earn more, while others will earn less. Most people who sign up as Consultants never earn any bonuses or overrides. Your success will depend on your own effort and skill. Further details of Consultants’ average bonuses and overrides at the Consultant, District Manager, Area Manager, Regional Vice President and National Vice President ranks are contained in Arbonne’s 2005 Independent Consultant Compensation Summary. (http://www.arbonne.com/company/iccs.asp) A R B O N N E I N T E R N AT I O N A L ®
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2005 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, weight loss 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: 1. Through retail profit on sales of products purchased at wholesale prices from the Company. 2. 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 its 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. 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
United States 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 United States. 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 / Bonus
Average % of all Consultants at Managers & VP
Average number of months to promote to designated rank 3 NA
$837,726
$222.15
1.03%
NA
District Managers
$5,784,685
$875.01
1.81%
73.24%
5
Area Managers
$8,507,626
$4,654.06
0.50%
20.25%
12
Regional Vice Presidents
$9,225,271
$20,319.98
0.12%
5.03%
24
National Vice Presidents
$12,601,931
$94,044.26
0.04%
1.48%
44
The average override and bonus paid to all registered Consultants in the United States was $101.16 per quarter and $404.63 on an annualized basis5. 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 United States 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 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.
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Excellent support & training Support - Field leadership - Corporate leadership Training - Arbonne offers FREE online training - Arbonne conducts Regional and National training conferences throughout the United States
✓ With Arbonne, you are in business for yourself, but not by yourself
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Arbonne has something for everyone Client - Superior products - Excellent customer service and convenient ordering
Consultant - 35% product discount - Earn extra money sharing with family and friends
Business Builder - Be your own boss; create the income you deserve - Find others to work with; build a team “As a former human resources professional and mother of two young children, I previously worked twice as many hours to make half of the income I now enjoy with Arbonne. I also enjoy having the ability to help others potentially obtain their financial and personal goals through Arbonne’s opportunity, and the flexibility it offers to those who want to work around their children’s schedules.” Independent Consultant, Executive National Vice President Karen DiCenzo; Andover, MA A R B O N N E I N T E R N AT I O N A L ®
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What are you looking for… Could you use extra income? Are you willing to invest time working this business to achieve what you desire? You may be asking… what if it doesn’t work? I suggest asking, “What if it does work?” A R B O N N E I N T E R N AT I O N A L ®
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NOW is the time to be a part of Arbonne ®
✓ Right industry ✓ Right company ✓ Right products ✓ Right for you
We would love for you to be a part of our team! A R B O N N E I N T E R N AT I O N A L ®
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Arbonne International THE TESTIMONIALS PRESENTED IN THIS PRESENTATION REFLECT THE ACTUAL EXPERIENCE OF EACH INDIVIDUAL, AND ARE ANECDOTAL ONLY, AND MAY BE ATYPICAL. THE TESTIMONIAL RESULTS ARE NOT BASED UPON ANY SCIENTIFIC STUDY. RESULTS WILL VARY WITH EACH INDIVIDUAL. THE STATEMENTS MADE HAVE NOT BEEN EVALUATED BY THE FDA, AND ARE NOT INTENDED TO DIAGNOSE, MITIGATE, TREAT, CURE OR PREVENT A SPECIFIC DISEASE OR CLASS OF DISEASES. YOU SHOULD CONSULT YOUR FAMILY PHYSICIAN IF YOU ARE EXPERIENCING ANY MEDICAL PROBLEMS. 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. ARBONNE PUBLISHES A SUMMARY OF AVERAGE QUARTERLY COMMISSIONS THAT ARE PAID TO ARBONNE INDEPENDENT CONSULTANTS. THIS INFORMATION IS UPDATED ANNUALLY AND CAN BE VIEWED ONLINE AT WWW.ARBONNE.COM/COMPANY/ICCS.ASP. YOU CAN ALSO OBTAIN A COPY OF ARBONNE’S MOST RECENT INDEPENDENT CONSULTANT COMPENSATION SUMMARY BY CALLING ARBONNE AT 1.800.ARBONNE.
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