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2018
NU SKIN ENTERPRISES, INC. DISTRIBUTOR COMPENSATION SUMMARY
Compensation
There are two fundamental ways in which a Brand A liate can earn money:
• Byresellingproductspurchasedfromthecompanytoconsumers;and
• Through sales compensation (sometimes called bonuses) for product sales by the Brand A liate and others on their Team.
As with any other sales opportunity, sales compensation earned by Brand A liates varies signi cantly based on factors such as goals, ambition, time, commitment and skills. There is no cost or purchase requirement to become a Brand A liate. People become Brand A liates for various reasons. Many people become Brand A liates simply to enjoy the Company’s products at discounted Member Prices. Some join the business to improve their skills or to experience the management of their own business. Others become Brand A liates, but for various reasons, never engage in Business Activities. Consequently, many Brand A liates never qualify for payment of sales compensation.
Generating meaningful sales compensation as a Brand A liate requires considerable time, e ort, and commitment. This is not a get rich quick program. There are no guarantees of nancial success.
Retail Markup
Brand A liates can buy products from the Company at Member Prices and resell the products to customers. The di erence between the price at which they resell the product and the Member Price is their retail markup. As Brand A liates set their own pricing on resales of product, the Company does not provide an estimate of average income from product resales by Brand A liates or include it in this Sales Compensation Summary.
Sales Compensation
Brand A liates can also earn sales compensation for product sales by the Brand A liate and others on their Team in all countries where the Company does business, with the exception of Mainland China. No sales compensation is paid for sales of promotional materials.
In 2018, the Company paid approximately $126,892,539 in sales compensation to Brand A liates residing in the United States.
The following table shows the average sales compensation paid in 2018 to U.S. Brand A liates at various levels in the Company’s Sales Compensation Plan, including the average percentage of total Active Brand A liates and the average percentage of Brand Representative and above Brand A liates that earned commissions at each level.
The average sales compensation paid to U.S. Active Brand A liates each month was $151.34, or $1,816.10 on an annualized basis. In 2018, the average monthly sales compensation paid to U.S. Brand A liates who earned a sales compensation payment was $786.40, or $9,436.79 on an annualized basis. Note that these gures do not represent a Brand A liate’s pro t, as they do not consider expenses incurred by a Brand A liate in the promotion of his/her business. On a monthly basis, an average of 19.38% of U.S. Active Brand A liates earned a sales compensation payment. For purposes of this summary, an “Active Brand A liate” is a Brand A liate who placed an order for products, promotional materials or services during the most recent three-month period. In the United States, the Company had an average of 69,871 Active Brand A liates during 2018. Active Brand A liates represented an average of 27.30% of total Brand A liates.
If you have any questions concerning this information, please contact the company at (800) 487-1000.
|
TITLE |
Monthly Average Commission Income at Each Level for 2017 |
Annualized Commissions 1 |
Average Percentage of Active Distributor 2S |
Average Percentage of Executive-and- above level Distributors |
|
Active Brand A liate Receiving Commissions (Non-Brand Representative) |
$37 |
$444 |
11.51% |
n/a |
|
Qualifying Brand Representative |
120 |
1,440 |
1.55% |
n/a |
|
Provisional Brand Representative |
64 |
768 |
0.36% |
n/a |
|
Brand Representative |
515 |
6,180 |
3.37% |
56.46% |
|
Gold Partner |
903 |
10,836 |
1.14% |
19.17% |
|
Lapis Partner |
1,632 |
19,584 |
0.77% |
12.88% |
|
Ruby Partner |
2,592 |
31,104 |
0.15% |
2.49% |
|
Emerald Director |
4,727 |
56,724 |
0.20% |
3.36% |
|
Diamond Director |
8,754 |
105,048 |
0.12% |
2.06% |
|
Blue Diamond Director |
37,596 |
451,152 |
0.21% |
3.57% |
1 These numbers are calculated by taking the monthly average sales compensation and multiplying by twelve.2 hese percentages are calculated by taking the average of the total monthly Brand A liate/Brand Representative payee count at each level and dividing it by the total number of monthly Active
Brand A liates.
3 This number is calculated by adding the average percentage of Active Brand A liates in the above table.
4 This percentage is obtained by taking the total average of monthly Active Brand A liates and dividing it by the total average of Brand A liates on a monthly basis. “Total Brand A liates” includes all U.S. Brand A liate accounts currently on le, irrespective of their purchasing products, promotional materials or services or earning commissions. “Brand A liate” numbers do not include customer or Member accounts.