1. Compensation Plan • Allied Global Network
This is an in-depth presentation of the Nu Skin compensation plan. It is intended to provide distributors a comprehensive overview of their commission structure.
Compensation Plan • Allied Global Network

2. Basic Compensation Terms
ADR
Automatic Delivery Rewards
Monthly automatic delivery with the opportunity to earn reward points
Distributor
A person engaged in the distribution of Nu Skin’s products
Distributors purchase products at wholesale price
Active Distributor
A distributor with an active ADR and minimum 100 PSV per month
Eligible to receive commission checks from Nu Skin
Retail Customer
A person who purchases products at retail price
Preferred Customer
A person who purchases products at wholesale price by maintaining an active ADR PV
Point Value
The point value assigned to a product
Approx 1 PV = 1 Wholesale Dollar
PSV
Personal Sales Volume
The total point value of purchases by you and your retail customers
GSV
Group Sales Volume
The total sales volume of all the customers and distributors in your group
PSV is included in your GSV
Now before I go into the details of Nu Skin’s compensation plan, you must first understand these basic terms.
The first term is PV, which stands for Point Value. A point value is assigned to every product that the company offers. Typically with Nu Skin products, $1 Wholesale dollar = 1 point
The next term is PSV Personal Sales Volume. The Personal sales volume is the total point value of the products that you and your retail customers purchase from the company.
The next term is GSV, which stands for Group Sales Volume. Your group sales volume is the total sales volumes of all the customers and distributors in your group. Your Personal Sales volume is included in your Group sales volume.
ADR. ADR stands for Automatic delivery rewards. ADR is a monthly auto-ship delivery of products. It was designed to give real value to the consumer. Your ADR order will ship on the same date each month. The benefits of an ADR include Discounted Packages and Shipping, Flexibility, meaning you can change the products in your ADR at any time. These changes can be made online or by phone. There are also no binding contracts so you are free to cancel your ADR at any time as well. One of best benefits of ADR is the rewards program. Nu Skin will give 20% of your ADR’s wholesale value back to you through ADR Points. Basically, if you spend $100 through ADR, you will receive 20% back in ADR points, which means you will have 20 ADR Points. Now, 1 ADR point is equal to $1 and you can use these points towards any of Nu Skin product. So basically, if I spend $100 every month for ADR, I will receive $20 in free product credits.
Compensation Plan • Allied Global Network

3. How are Distributors Paid?
Retail Markup
Mark up from Retail Customers (up to 30%)
Example
AgeLoc Vitality
Retail = $66.50
Wholesale = $50.00
_____________________
= $16.50 paid to Distributor
Fast Start Bonus
Earn a bonus each time you sell a fast-start product package
Example
Galvanic Spa Package
Retail = $450
Wholesale = $360
You will receive a $50 bonus for the sale of this package.
If sold at retail price, you will earn an additional $90 in retail profits
5% of L1 Sales
5% commission on all
Level 1 Sales Volume*
*MUST be an active distributor to earn commissions (min 100PSV plus participate in ADR)
YOU
100 PSV
ADR RC RC
So to summarize:
When you build a sales network and qualify, you are eligible to receive commissions. The amount of commission your are paid is based on your performance and your network’s performance.
When you first start your business you are considered a distributor. After meeting requirements of 100 points or 100 wholesale dollars of purchases by you and your customers you can earn 5% on wholesale sales from people that you personally sponsor. Plus retail markup from your retail consumers.
You can qualify to earn larger commissions by becoming an Executive Distributor. An Executive earns 9% - 15% of their entire networks sales volume.
When someone in your sales team becomes an executive they breakaway and you then are paid 5% of their total network sales volume. You can qualify to be paid on 6 levels of executive distributors. L1 D D D PC D PC D
RC = Retail Customer
PC = Preferred Customer
D = Distributor
Compensation Plan • Allied Global Network

4. How Do I Become an Executive?
3 Month Qualification Program
Month 1 (LOI)
Month 2 (Q1)
Month 3 (Q2)
PSV 100
ADR
GSV 1000 min
GSV 1500 min
GSV 2000 min
Executive Qualification Fast-Trak
1 Month Executive Qualification = GSV 4500 in one month
2 Month Executive Qualification = GSV 4500 in 2 months.
(First month (LOI) – must have minimum of GSV 1000)
So, how does one become an executive. As explained in the previous slide, in order to earn higher levels of income, you must become an executive. There is a 3 month executive qualification period and there are 3 requirements that must be fulfilled. If you are an active distributor, you have already fulfilled 2 of the 3 requirements which is to have 100 PSV and 1 ADR. The 3rd requirement is a minimum GSV.
In Month 1, you must meet the basic activity requirements of 100 PSV and 1 ADR plus generate at least 1,000 GSV. This means that your entire network sales must be a minimum of 1,000 GSV. This is considered your LOI month.
In Month 2 you must again meet the basic activity requirements of 100 PSV and 1 ADR plus generate at least 1,500 GSV. This is considered your Q1 month.
In the third and final month, you must again meet the basic activity requirements of 100 PSV and 1 ADR plus generate at least 2,000 GSV. This is considered your Q2 month.
For people who want to become an executive quickly there are fast tracks to Executive qualification. If you add the GSV requirements for LOI, Q1, and Q2, you’ll notice that the total GSV when added together is 4500 points. Now, if you can generate 4500 GSV in less than three months, you can fast track your qualification. This program simply compresses 3 months into 1. You have to simply generate 4,500 GSV in one month. Similarly, for a 2 month fast track, you simply generate 4500 GSV in 2 months. However, in this scenario, you must have 1000 GSV in your first month since you must be in LOI in order to qualify. So in essence, you would be combining your Q1 and Q2 months.
Once you have completed all the requirements of qualification, you will be recognized as an executive in the following month. In order to maintain your executive status each month, you must have 100PSV, 1 ADR and 2,000 GSV.
Executive Monthly Maintenance: PSV 100, ADR, GSV 2000
Compensation Plan • Allied Global Network

5. How are Executives Paid? 9%-15% of Entire Group VolumeB
Circle Group
Retail Customers
Preferred Customers
Distributors
Qualifying Executives
9%-15% of Entire Group Volume
9% =2,000-2,999 GSV
10% = 3,000-4,999 GSV
11% = 5,000-9,999 GSV
12% = 10,000-14,999 GSV
13% = 15,000-25,000 GSV
14% = 25,000-49,999 GSV
15% > 50,000 GSV
Breakaways
Downline Executives
So, we’ve discussed how to become an executive and as we all know, higher levels of income are generated once you reach executive status.
So, how are executives paid? There are two different groups that you will receive compensation from and it is important that you understand the difference between them. Imagine that there are 2 rooms of people.
Room A is filled with all your distributors, active distributors, qualifying executives and customers. This is also known as your circle group and the total volume of everyone in your circle group is your GSV.
Auditorium B is filled with all your downline Executive Distributors.
Compensation Plan • Allied Global Network

6. How are Executives Paid?
Circle Group
Executive Breakaways
$2,000 9%
$3,000
10%
$5,000
11%
$10,000
12%
$15,000
13%
$25,000
14%
$50,000
15%
YOU
YOU
Generation 1 (G1)
EXEC
5% of GSV
So Room A is everyone in your circle group and they make up your GSV. Again, this circle group consists of your distributors, active distributors, qualifying executives and customers. You are paid 9-15% commission on your entire circle group volume, or GSV…. from your first level to infinity. Executives are not allowed in Room A.
Right now, I don’t have any executives in my organization so everyone is in Room A. Now let’s say, this person completes qualification and next month, he will become an executive. That means, he will take his entire circle group and move to Room B. Once this person became an executive, he took his entire circle group and left my circle group to go to Room B. So my circle group is now smaller…that’s not fair is it? Well, to make up for that, I will now earn 5% from this person’s entire GSV.
So I continue to earn 9-15% of my GSV, which is all the volume in my circle group. And in addition, I will earn 5% from this executive GSV. The income generated from Room A and Room B is how you will earn money through Nu Skin’s compensation plan. This is it!
Circle Group Volume = GSV
You are paid 9-15% on your GSV
You are paid up to 5% on each Executive’s GSV
Example: GSV 4000 x 10% = $400
Minimum GSV 3000 to earn 5%
Less than GSV 3000 earns 2.5%
Compensation Plan • Allied Global Network

8. Compensation Plan • Allied Global Network
Wealth Maximizer
Nu Skin calculates your commission in 2 ways and pay you the higher amount.
Method 1: Depth Maximizer
Standard Calculation
Method 2: Volume Maximizer
* must have minimum GSV 3000
$2,000 9%
$3,000
10%
$5,000
11%
$10,000
12%
$15,000
13%
$25,000
14%
$50,000
15%
$2,000 9%
$3,000
10%
$5,000
11%
$10,000
12%
$15,000
13%
$25,000
14%
$50,000
15%
Room A
Room A
“Extra 5% Bonus”
+ 5%
Room B
10%
Room B
Only pays on G1
“Double G1 Bonus”
Compensation Plan • Allied Global Network

11. Compensation Plan Summary
Distributor
Retail Mark Up
Fast Start Payment
5% of
All Level 1 Sales
Executive
Room A
9%-15% of GSV
9% =2,000-2,999 GSV
10% = 3,000-4,999 GSV
11% = 5,000-9,999 GSV
12% = 10,000-14,999 GSV
13% = 15,000-25,000 GSV
14% = 25,000-49,999 GSV
15% > 50,000 GSV
Breakaway
Room A
Breakaway Bonus
5% of
Executive Breakaway’s
GSV
(payable down
to 6 Generations)
So to summarize:
When you build a sales network and qualify, you are eligible to receive commissions. The amount of commission your are paid is based on your performance and your network’s performance.
When you first start your business you are considered a distributor. After meeting requirements of 100 points or 100 wholesale dollars of purchases by you and your customers you can earn 5% on wholesale sales from people that you personally sponsor. Plus retail markup from your retail consumers.
You can qualify to earn larger commissions by becoming an Executive Distributor. An Executive earns 9% - 15% of their entire networks sales volume.
When someone in your sales team becomes an executive they breakaway and you then are paid 5% of their total network sales volume. You can qualify to be paid on 6 levels of executive distributors.
Compensation Plan • Allied Global Network

12. Company Statistics
Nuskin has paid over $7.5 Billion in commissions to date.
More than 800 Executives have earned over $1 Million in commissions.
Every 5 days, another Executive joins the Million Dollar Circle.
10% of all Executives will make it to Ruby.
50% of Rubies will make it to Blue Diamond.
On average, it takes 3 years to reach Blue Diamond.
95% of those who continue in the business for 10 years make it to Blue Diamond.
So to summarize:
When you build a sales network and qualify, you are eligible to receive commissions. The amount of commission your are paid is based on your performance and your network’s performance.
When you first start your business you are considered a distributor. After meeting requirements of 100 points or 100 wholesale dollars of purchases by you and your customers you can earn 5% on wholesale sales from people that you personally sponsor. Plus retail markup from your retail consumers.
You can qualify to earn larger commissions by becoming an Executive Distributor. An Executive earns 9% - 15% of their entire networks sales volume.
When someone in your sales team becomes an executive they breakaway and you then are paid 5% of their total network sales volume. You can qualify to be paid on 6 levels of executive distributors.
Compensation Plan • Allied Global Network

13. Compensation Plan • Allied Global Network
Title
Monthly Average Commission Income at Each Level for 2009
Annualized Commissions
Average Percentage of Executive-and-Above Level Distributors
Active Distributor Earning a Check (Non-Executive)
$65.00
$778.00
N/A
Qualifying Executive
224.00
2,683.00
Executive
467.00
5,607.00
57.19%
Gold Executive
832.00
9,980.00
19.78
Lapis Executive
1,344.00
16,133.00
12.08
Ruby Executive
2,681.00
32,170.00
4.45
Emerald Executive ,
55,980.00
1.98
Diamond Executive
10,342.00
124,104.00
1.65
Blue Diamond Executive
44,606.00
535,276.00
2.87
The following table shows the average commissions paid in 2009 to U.S. distributors at the various levels of the Company’s Sales Compensation Plan, including the average percentage of total Active Distributors and the average percentage of Executive-and-above distributors that earned commissions at each level. These figures do not include retail markup income.
The average commission paid to U.S. Active Distributors each month was $125.71, or $1, on an annualized basis. In 2009, the average monthly commission paid to U.S. Active Distributors who earned a commission check was $843.46, or $10, on an annualized basis. Note that these figures do not represent a distributor’s profit, as they do not consider expenses incurred by a distributor in the promotion of his/her business and do not include retail markup income. On a monthly basis, an average of 14.90% of U.S. Active Distributors earned a commission check. Active Distributors represented an average of 34.13% of total distributors.
Compensation Plan • Allied Global Network