business fundamentals (maximizing your earnings) corey lindley, evp & cfo
TRANSCRIPT
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
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.
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: $2,275 (Only considers Fast Start and Unilevel)
Value of a New Consultant(The power of retention)
1. Only 28% of enrollments come with LRP.
2. Enrollees with an LRP generate 3.2 times more volume in the first year than enrollments without an LRP.
3. Enrollees with an LRP generate more first year volume than enrollments with a large initial kit purchase.
4. Enrollees with an LRP are 6 times more likely to become an Elite or a Silver level IPCs than an initial enrollment without an LRP.
5. Enrollees with an LRP and a small order are 50% more likely to hit Elite or Silver ranks than if they have a large enrollment order (> 300 PV) and no LRP.
LRP Research
dōTERRA’s Compensation Plan“Unilevel Plus”
Unilevel
Fast Start
Power of 3
Pools Founders Club
Other benefits: - Loyalty Rewards - Preferred Customer - Dynamic Compression - Payout increase w/depth - Minimal leg requirements
Generous / Balanced
Signup
Unilevel/PoolsPower of 3Fast Start
Time / Rank
Com
mis
sion
s ($
)
• 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!