business fundamentals (maximizing your earnings) corey lindley, evp & cfo

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

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Business Fundamentals(Maximizing your Earnings)

Corey Lindley, EVP & CFO

Warwick Castle - England

Warwick Castle - England

Financial Advice

“If you are born poor its not your mistake, but if you die poor, its your mistake.”

- Bill Gates

1. Get a good Tax Advisor 2. Be Charitable 3. Get out of Debt 4. Invest Wisely

1.Tax Advisor----Never missed a tax payment.2.Be Charitable----Healing Hands is stronger than ever.3.Get out of Debt----Free of LT Debt!4.Invest Wisely----dōTERRA’s Investment priorities:

1) Inventories

2) Infrastructure 3) People

How is dōTERRA Doing?

Lemon

Frankincense

Lavender

Cinnamon

Basil

Eucalyptus

Ginge

r

Grapefruit

Hawaiian Sandalwood

Jasmine

Rosemar

y

Wild

Orange

Ylang

Ylang

Cassia

Clove

Clary Sage

Coriander

Cilantro

Peppermint

Rose

Cypress

Black Pepper

Patchouli

Myrrh

Geranium

Oregano Lemongras

s

Sandalwoo

d White Fir

Marjoram

Helichrysu

m

Thyme

Vetiver

Wintergree

n

Birch

Melaleuca

Now more than 1,000 employees

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.

An oil in every home!!!!!

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

1.Tax Advisor----Who is your tax advisor?2.Be Charitable----You are all amazing!3.Get out of Debt----Is debt load increasing or decreasing?4.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 Pools5) Be urgently patient!

How Are You Doing?

RetentionMost Direct Selling

Companies

dōTERRA

INACTIVEORGANIZATION

ACTIVEORGANIZATION

High Retention• 80% over 1 year• 60+% over 4 years!

Value of a New Consultant(The power of retention)

Industry Leading Retention – What is the impact?1. Satisfied customers and IPCs.2. Desire to share products/success with

others.3. Stability for leaders/company.4. Compound growth rates.5. Value to upline leaders.

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?

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

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?

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)

Value of a New Consultant(The power of retention)

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.

LRP Research

Power of Three Bonus

dōTERRA’s Compensation Plan“Unilevel Plus”

Unilevel

Fast Start

Power of 3

Pools Founders Club

Other benefits: - Loyalty Rewards - Preferred Customer - Dynamic Compression - Payout increase w/depth - Minimal leg requirements

Generous / Balanced

Signup

Unilevel/PoolsPower of 3Fast Start

Time / Rank

Com

mis

sion

s ($

)

• dōTERRA pays 50+% (actual)• Balanced reward structure

for new IPCs and leaders• Fast Start & Power of 3• Unilevel & Leadership

Pools

≈$2-3,000 per month - Silver Rank

• Continue to Enroll• Earn $1,500 Po3 Bonus• Earn Leadership Bonus

Signup SILVER

Unilevel/Pools

Power of 3

Fast Start

Time / Rank

Com

mis

sion

s ($

)

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

≈$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 Signup GOLD

Unilevel/Pools

Power of 3

Fast Start

Com

mis

sion

s ($

)

≈$6-8,000 per mo. - Platinum Rank

• Continue to enroll • Keep $1,500 Po3• Earn Leadership Bonus• Find Diamond Leg

Signup PLATINUM

Unilevel/Pools

Power of 3

Fast Start

Com

miss

ions

($)

≈$10-15,000+ per mo. - Diamond Rank

Signup DIAMOND

Unilevel/Pools

Power of 3

Fast Start

Com

miss

ions

($)

• 1% Performance Pool• 1% Global Diamond Pool• Average Total Payout is

approx. $4,000 to $5,500 per month in pools

Blue Diamond Pool Bonus

• 1% Global Pool + 1% Performance Pool

• Avg. of monthly Blue Diamond Pool

Payout ≈ $12,000 to $14,000

• 1% Global Pool + 1% Performance Pool

• Ave. of Monthly Pres. Diamond Shares ≈

$30,000 to $36,000

Presidential Diamond Pool Bonus

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

Quarterly Earnings for New Diamonds

Getting Started

Passion meets Opportunity

Exponential Growth!