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Business Fundamentals (Maximizing your Earnings)

Business Fundamentals (Maximizing your Earnings). Corey Lindley, EVP & CFO. Warwick Castle - England. Warwick Castle - England. Financial Advice. 1 . Get a good Tax Advisor 2. Be Charitable 3. Get out of Debt 4. Invest Wisely.

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Business Fundamentals (Maximizing your Earnings)

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  1. Business Fundamentals(Maximizing your Earnings) Corey Lindley, EVP & CFO

  2. Warwick Castle - England

  3. Warwick Castle - England

  4. Financial Advice 1. Get a good Tax Advisor 2. Be Charitable 3. Get out of Debt 4. Invest Wisely “If you are born poor its not your mistake, but if you die poor, its your mistake.” - Bill Gates

  5. How is dōTERRA Doing? • Tax Advisor----Never missed a tax payment. • Be Charitable----Healing Hands is stronger than ever. • Get out of Debt----Free of LT Debt! • Invest Wisely----dōTERRA’sInvestment priorities: 1) Inventories • 2) Infrastructure • 3) People

  6. Sandalwood Birch Oregano Thyme Lavender Lemongrass Rose White Fir Clary Sage Frankincense Peppermint Marjoram Jasmine Cassia Basil Helichrysum Wintergreen Black Pepper Grapefruit Coriander Cypress Patchouli Wild Orange Ginger Hawaiian Sandalwood Lemon Geranium Vetiver Myrrh Eucalyptus Cinnamon Rosemary YlangYlang Cilantro Clove Melaleuca

  7. Now more than 1,000 employees

  8. What is dōTERRA’s Commitment? • Continue to bring nature’s medicine to the world. • Continue to remove roadblocks to success. • Continue to invest in the future.

  9. An oil in every home!!!!!

  10. An oil in every home!!!!! (One Community at a time)

  11. How Are You Doing? • Tax Advisor----Who is your tax advisor? • Be Charitable----You are all amazing! • Get out of Debt----Is debt load increasing or decreasing? • Invest Wisely----How do you invest in your business? 1) Value of an enrollment • 2) LRP focus when sharing 3) Power of Three Bonus • 4) Leadership Pools • 5) Be urgently patient!

  12. Retention Most Direct Selling Companies INACTIVE ORGANIZATION ACTIVE ORGANIZATION dōTERRA • High Retention • 80% over 1 year • 60+% over 4 years!

  13. Value of a New Consultant (The power of retention) • Industry Leading Retention – What is the impact? • Satisfied customers and IPCs. • Desire to share products/success with others. • Stability for leaders/company. • Compound growth rates. • Value to upline leaders.

  14. Value of a New Consultant (The power of retention) • What is a new IPC worth, from a strictly financial perspective? • Discounted Cash Flow model of average PV revenue stream • Company with Low Retention: • Total value to IPC organization?

  15. Value of a New Consultant (The power of retention) • What is a new IPC worth, from a strictly financial perspective? • Discounted Cash Flow model of average PV revenue stream • Company with Low Retention: • Total value to IPC organization? $546

  16. Value of a New Consultant (The power of retention) • What is a new IPC worth, from a strictly financial perspective? • Discounted Cash Flow model of average PV revenue stream • Company with Low Retention: • Total value to IPC organization: $546 • dōTERRA’s High Retention & Powerful Comp. Plan • Total value to IPC organization?

  17. Value of a New Consultant (The power of retention) • What is a new IPC worth, from a strictly financial perspective? • Discounted Cash Flow model of average PV revenue stream • Company with Low Retention: • Total value to IPC organization: $546 • dōTERRA’s High Retention & Powerful Comp. Plan • Total value to IPC organization: $2,275 • (Only considers Fast Start and Unilevel)

  18. LRP Research 1. Only 28% of enrollments come with LRP. 2. Enrollees with an LRP generate 3.2 times more volume in the first year than enrollments without an LRP. 3. Enrollees with an LRP generate more first year volume than enrollments with a large initial kit purchase. 4. Enrollees with an LRP are 6 times more likely to become an Elite or a Silver level IPCs than an initial enrollment without an LRP. 5. Enrollees with an LRP and a small order are 50% more likely to hit Elite or Silver ranks than if they have a large enrollment order (> 300 PV) and no LRP.

  19. Power of Three Bonus

  20. dōTERRA’sCompensation Plan “Unilevel Plus” Fast Start Power of 3 Unilevel Other benefits: - Loyalty Rewards - Preferred Customer - Dynamic Compression - Payout increase w/depth - Minimal leg requirements Founders Club Pools

  21. Generous / Balanced • dōTERRA pays 50+% (actual) • Balanced reward structure for new IPCs and leaders • Fast Start & Power of 3 • Unilevel & Leadership Pools

  22. ≈$2-3,000 per month - Silver Rank • Continue to Enroll • Earn $1,500 Po3 Bonus • Earn Leadership Bonus

  23. Leadership Pool Bonuses • 2% of Global PV • Avg. Value of Shares ≈ $ 150 • Silver, Gold, Platinum shares = 1, 5, 10 Silver $150 Gold $750 Platinum $1500

  24. ≈$4-5,000 per month – Gold Rank • Continue to Enroll • Earn $1,500 Po3 Bonus • Provide incentives for Elite legs to advance (invest) • Earn Leadership Bonus

  25. ≈$6-8,000 per mo. - Platinum Rank • Continue to enroll • Keep $1,500 Po3 • Earn Leadership Bonus • Find Diamond Leg

  26. ≈$10-15,000+ per mo. - Diamond Rank • 1% Performance Pool • 1% Global Diamond Pool • Average Total Payout is approx. $4,000 to $5,500 per month in pools

  27. Blue Diamond Pool Bonus • 1% Global Pool + 1% Performance Pool • Avg. of monthly Blue Diamond Pool • Payout ≈ $12,000 to $14,000

  28. Presidential Diamond Pool Bonus • 1% Global Pool + 1% Performance Pool • Ave. of Monthly Pres. Diamond Shares ≈ • $30,000 to $36,000

  29. Exponential Growth! Passion meets Opportunity

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