Compensation Strategies for Growth Presented by: Dan Jensen & Andi Sherwood 1

Danger! Don’t Copy a Plan Great plans are designed and precisely calibrated for:  Selling approach  Party plan  Autoship emphasis  One-on-one selling  MLM buying club  Product line  Payout target & budget  Sales force culture  Training programs 2

Know Who You Are Who you are must be a “stake in the ground.” Decisions should support your business model and product strategy 3

Career Path CAREER PATH PAYOUTS Do This Get That 4 A

Career Path is Your Key to Growth Backbone of a comp plan Payouts cannot fix gross defects Each title is a stepping stone Each title demonstrates more competency Design 2+ future titles to be released later Leader volume matches 5+ year revenue forecast Career Path = Game plan for recruit & mentor Basis of field recognition 5 A

Career Path Hobbyist Start Business Builder Ramp Up Leads a Small Team Team Manager Focuses on Rising Stars Leader Transition Zone 1 Passive to Business Transition Zone 2 Full Time 6

Good Design = Sustainable Growth Team Manager Strong Selling & Recruiting Team Building Building Managers Building Leaders The mix of behaviors evolve as a person advances up the career path

Focus on the Behaviors Selling Recruiting Building Managers Building Leaders Retention Five Golden Behaviors 8 A

Payout Types = Behaviors SellingRecruiting Building Managers Building Leaders Retention Selling Profit Uni-Level Step Level Generation Check Match Binary 9

Payout Types = Behaviors SellingRecruiting Building Managers Building Leaders Retention Selling Profit Uni-Level Step Level Generation Check Match Binary 10

How much should you pay? Design now for future payout Pay more, get more behavior Payout stabilizes at maturity ($100m/year) 11 A

How much should you pay? Mark-up to Retail3x4x5x6x7x8x COGS % of Retail Retail Commission25 Overhead Costs15 Profits81315 Other incentives Overrides (% of Retail) Total Paid (% of Retail) Customer Biased Model / Party Plan at $100m / Year, Percent of Retail Volume 12

How much should you pay? Mark-up to Wholesale4x5x6x7x8x10x COGS % of Wholesale Retail Commission Overhead Costs20 Profits1620 Other incentives Downline Overrides (Paid on Wholesale) Self Consumption / MLM Model at $100m / Year, Percent of Wholesale Volume 13

ww.danjensen-consulting.com Winners of the 2007 DSA Partnership Award Dan JensenAndi SherwoodBrian Jensen