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Au concept to_success

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YOUR CHANCE TO CHANGE LR Health & Beauty Systems Pty Ltd – Australia & New Zealand Unit 1& 2, Keilor Park Drive Tullamarine Victoria 3043 Australia www.LRworld.com Art. Nr.: 92503-001 AU
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Page 1: Au concept to_success

YOUR CHANCE TO CHANGE

LR Health & Beauty Systems Pty Ltd – Australia & New ZealandUnit 1& 2, Keilor Park Drive Tullamarine Victoria 3043 Australia

www.LRworld.com

Art

. N

r.: 9

2503

-001

AU

Page 2: Au concept to_success

CONCEPT TO SUCCESS

TIPS FOR YOUR lR BUSINESS lR MaRkE TINgPlaN

Page 3: Au concept to_success

Dear LR Partner,Congratulations!

With your decision to become an LR partner, you’ve taken the first step in seizing a great opportunity. The chance to change your life. The chance to make your dreams come true. With our business concept, which has proven itself over a period of 25 years, countless individuals have realised both small and large dreams.

Independent of previous experience or professional training, LR offers everyone the opportunity to achieve what they wish to achieve.

At LR, success can be planned.

Our business concept rewards your dedicated efforts in a fair and transparent way. You are currently holding in your hands our “Concept to Success” and are therefore about to take the second step in your LR career. The Concept to Success, presents our business concept with the aid of case studies. It is a brochure that we’ve put together to support your success.

Take advantage of the opportunities that LR can offer you. Make your dreams come true. You’ve already taken the first steps!

We wish you maximum success!

Sincerely,

Dr. Jens M. AbendChief Executive Officer

Thomas HeursenGlobal Sales Director

Page 4: Au concept to_success

Your Partner LR 4 – 13

The Industry 4 – 5The LR Success Story 6 – 7LR Values 8 – 9LR Success Factors 10 – 11The Vision 12The Business Model 13

The LR Marketing Plan 14 – 27

Bonus for Personal Sales and Group Sales 14 – 15Leader Bonus 16 – 17Special Bonus 18 – 19Depth Bonus 20 – 21Top Depth Bonus 22 – 23Annual Bonus 24 – 25LR Career Ladder 26 – 27

Recognition through LR 28 – 33Training and Seminar Bonus 28 – 29LR Car Plan 30 – 31LR Trips 32 – 33

1. The First Steps with LR 34– 37

Requirements & Qualifications 34 – 35List of Names & Appointments 36 – 37

Service 38 – 49

Contacts &LR Locations Worldwide 38 – 39Questions & Answers 40 – 41Glossary 42 – 44Terms of Delivery & Payment 45Success Planner 46 – 47

Page 5: Au concept to_success

The Industry

“Direct sales is a business segment that, in comparison to other sales channels, has enormous growth potential.”(CEO Dr. Jens M. Abend)

Globally, around 70 million people are actively involved in direct sales; together they generate sales of over 120 billion US$ annually. A trend that is sharply on the rise.

It’s no wonder that direct sales is a globally booming industry. The idea behind it is as simple as it is ingenious: Products or services are sold by independent business partners. That saves cost-intensive advertising measures, expensive licences and fees for distributors: money that is invested by LR in the development of top-quality, innovative products, and in the compensation and training of its business partners.

The LR product range is perfectly suited to direct sales: Exclusive consumables for growing markets that are easily sold, and that require no storage. More and more people are enjoying the benefits of direct sales and thereby a trend that is steadily growing.

Advantages for end-consumers:• Independence from business and store hours• Comfort aspect of home shopping• High quality of advice and support

Advantages for LR partners, among other factors:• Long-term additional or principle income• Flexible working hours• Minimal start-up capital for founding a

commercial enterprise

The LR product range: innovative and prize-winning merchandise

Your Partner LR 4

Page 6: Au concept to_success

Number of business partners worldwide

Around ¾ lock-in a solid extra income. ¼ have succeeded in becoming fully independent.

Sales trend figures worldwide

Sales trend comparison

Direct sales – Retail

Dynamic growth in direct sales as opposed to stagnation in retail

Source: Branchenreport Direktvertrieb, 2009

5

70

60

50

40

30

20

10

01988 1991 1993 1995 2000 2004 2007

Sales trend figures worldwide in billion US$

Percentages

160

150

140

130

120

110

1001995 2000 2004 2007

120

100

80

60

40

20

01988 1991 1993 1995 2000 2004 2007

People in millions

Your Partner LR

Page 7: Au concept to_success

The LR Success Story

LR Health & Beauty Systems is one of the world’s most successful direct sales enterprises

25 years of continuous growth, market presence currently in 31 countries, and market leader in many of these – factors that clearly indicate the uniqueness of LR’s performance.

25 years of success are reflected in the following figures:

Since the founding of the company in 1985, year for year growth in sales

* Based on SRP

1985turnover0.4 M €

1994turnover120 M €

1997turnover141 M €

2002turnover175 M €

2005turnover308 M €

*

*

*

*

*

4

Page 8: Au concept to_success

7

… more than 25,000,000 shipped packages! Lined up together, they form a bridge from LR Headquarters in Ahlen to the subsidiary in Manila

… more than 6,000,000 kilos of glass used for perfume bottles! With this amount of glass, the entire Frankfurt skyline can be freshly glazed

… more than 40,000,000 sold bottles of eau de parfum!Enough perfume to completely flood LR Headquarters in Ahlen

… more than 30,000,000 Aloe Vera Drinking Gels sold!A row of these bottles would be enough for a bridge from Ahlen to New York

… more than 2,000,000 litres of honey processed!More honey than the Olympic swimming pool in Athens can hold

… more than 750,000,000 € bonuses paid out!

2008turnover335 M €

Your Partner LR

2009turnover371 M €

*

*

Page 9: Au concept to_success

LR Values

LR’s success is based on clear-cut values:

Passion

Trust

Responsibility

Page 10: Au concept to_success

At LR, people are the focal point. All of the operations and activities in our company revolve around the success of our partners.

LR has turned its passion into making other people successful.

The truly successful LR partners have recognized: LR isn’t about work – LR is a way of life.

LR is a completely trustworthy partner. LR is fair, transparent and honest.

LR doesn’t conduct business on the backs of people, but together with and for people.

At LR, everyone has the chance to be number 1 through commitment and determination.

LR is a sustainable enterprise. LR products are certified and fulfill the highest standards.

Although an international company, LR nevertheless thinks locally, and has a sense of responsibility for the people and countries in which it is active.

With the LR GLOBAL KIDS FUND, LR has also taken on its share of responsibility in providing support for local charity projects.

Your Partner LR 9

Page 11: Au concept to_success

LR Success Factors

– in a growing range of categories, with extensive certification from independent institutes, developed in close cooperation with the LR Science Advisory Board.

– for many years now, a convincing advertising factor at LR, also representing a singular mark of confidence. Stars work closely with LR and are members of the LR family.

Quality products “Made in Germany”

Cooperative ventures with top names and artists

These values determine LR’s business practices throughout the world. They combine with the 5 success factors to make LR unique.

Marcus Schenkenberg & Leona Lewis

Page 12: Au concept to_success

– which has existed for 25 years now and has only been changed to the advantage of LR partners. Every single bonus is paid on time. The “Concept to Success” embodies the marketing plan.

– starting with the LR Polo in recognition of first success, and which proceeds from there with a broad selection from the Mercedes Benz car fleet for leaders, reaching its pinnacle with the LR Porsche for the most successful LR partners.

– are written in capital letters at LR. The company’s own LR Academy accompanies you individually and professionally, from one career step to the next. LR service is exemplary: from speedy package delivery to answering individual questions, andmuch, much more.

Fair, transparent marketing plan

Unique car concept

Training and service

11Your Partner LR

Page 13: Au concept to_success

The Vision

Based on the LR Values and carried by the 5 Pillars of Success, the LR Vision is born:

The LR Vision is to become, through enduring passion and the values

that we live by, the leading direct sales enterprise worldwide.

Top quality Made in Germany

Cooperative ventures with top

names and artists

Fair, transparent marketing

plan

Unique car concept

Top training and service

Passion

Trust

Responsibility

Page 14: Au concept to_success

The Business Model at a glance

LR business activities offer LR partners a full spectrum of advantages: Recognition, flexibility, independence and, a solid income.

The LR Business Mode

The individual bonus are explained on the succeeding pages with examples.

Difference Bonus 21.00 %

Leader’s Bonus 3.00 %

Special Bonus 10.00 %

Depth Bonus 3.00 %

Top depth Bonus 3.00 %

President’s Bonus 1.20 %

Annual Bonus 2.50 %

Total Bonus up to 43.70 %

13Your Partner LR

Page 15: Au concept to_success

Bonuses for Own Sales and Group Sales

What is it?A reward for developing the business.

Who is eligible?Every partner who reached at least 100 point value in Personal Sales in a month’s time, and at least 250 Point Value in Total Sales.

How does it work?LR Health & Beauty Systems offers sales-related bonuses. The values of the Business Volume (BV) and Point Value (PV) are significant for the calculation of bonuses and indispensable for the international commission calculation. To determine the bonus level, all sales transacted within a calendar month are added together. The bonus you receive is for the attained business volume of a calendar month, the percentage level of which is determined through the total PV turnover of your sales organization.

Example 1: Personal sales only:

Purchase for $ 400.00Sales for $ 560.00

Profit margin fromProduct sales $ 160.00

$ 400 net purchase price =400 BV = 400 PV

400 PV 3 % bonus3% bonus on 400 BV $ 12.00

Total earnings: $ 172.00

Example 2: Higher personal sales, i.e. through product sales to friends and relatives

Purchase for $ 1,000.00Sales for $ 1,400.00

Profit margin fromProduct sales $ 400.00

$ 1000 net purchase price = 1000 BV = 1,000 PV

1,000 PV 9 % Bonus9% bonus on 1000 BV $ 90.00

Total earnings: $ 490.00

12,000 PV 21 %

8,000 PV 16 %

4,000 PV 14 %

2,000 PV 11 %

1,000 PV 9 %

500 PV 6 %

250 PV 3 %

Bonus table:

The LR Marketing Plan

All examples are calculated before tax.To simplify the calculations we assume that $1 = 1BV = 1PV and 40% margin.

Page 16: Au concept to_success

A

B C

D E

1515The LR Marketing Plan

Example 3: Development of a small sales organization

Instead of selling LR products to friends, family members and colleagues, you can also offer them the possibility of becoming LR partners themselves and thereby profit from the chances that the LR business has to offer.

What’s in it for you?When you sponsor a new partner, you increase your LR business prospects enormously, since you also have a stake in their sales: You can achieve a turnover of 1,000 PV per month, which is equal to 1,000 BV.

Your earnings:

Profit margin $ 400.00Bonus (9% from 1,000 BV) $ 90.00

Total $ 490.00

If you were to acquire 4 partners, each of whom also achieves 1,000 PV in a month, your account would look a bit different:

Notes:• A has achieved group sales of 5,000 PV. By

so doing, A has reached the 14% bonus level; without B, C, D and E he would have remained in the 9% level.

• B, C, D and E each achieved 9%. As A is in the 14% bonus level, there is a 5% difference between A and each of his partners. A receives this supplementary 5% as a difference bonus to the respective turnovers achieved by B, C, D and E.

Total earnings:

Profit margin $ 400.00Bonus (14% from 1,000 BV) $ 140.00Bonus difference for B,C,D,E(4 × 5% from 1,000 BV) $ 200.00

Total $ 740.00

5% difference = $ 50 5% difference = $ 50

5% difference = $ 505% difference = $ 50

14%1,000 PV

1,000 BV

9%1,000 PV

1,000 BV

9%1,000 PV

1,000 BV

9%1,000 PV

1,000 BV

9%1,000 PV

1,000 BV

15

Page 17: Au concept to_success

A

B

D

F G

H I

C

E

What is it?A reward for the excellent support provided for the sales organization, and an incentive on the way to becoming a manager.

Who is eligible?Every bonus eligible partner with at least 8 bonus lines and:

• 16,000 PV Group Sales or

• with 1 direct 21%er line and 12,000 PV side volume or

• minimum of 2 direct 21%er lines

How does it work?The leader bonus is intended as a reward for the support of the structure and to help with the development of “healthy” lower tiers. Therefore, the leader bonus is paid on the basis of the entire lower tiers, but not on own sales. The leader bonus is clearly achievement-oriented, and increases in proportion to turnover.

Example 4: Leader bonus without direct 21%er

7% difference= $ 280

14%4,000 PV

6%500 PV

4,000 BV

14%5,000 PV

5,000 BV

21%1,000 PV

1000 BV

6%500 PV

3%250 PV

500 BV

250 BV

14%4,000 PV

4,000 BV

14%4,000 PV

4,000 BV

7% difference= $ 280

7% difference= $ 280

7% difference= $ 350

15% difference= $ 75

1. Personal Bonus of 21% on 1000 BV = $ 210.002. Difference Bonus = 3 × $ 280 + $ 350 + 3 x $ 75 + $ 45 = $ 1,460.003. Leader Bonus of 3% on 18,750 BV = $ 562.50

Total earnings (without profit margin) = $ 2,232.50

15% difference= $ 75

15% difference= $ 75

18% difference= $ 75

6%500 PV

500 BV

5000 BV

Leader Bonus

Page 18: Au concept to_success

171717The LR Marketing Plan

Page 19: Au concept to_success

Special BonusWhat is it?A reward for the development of direct 21% levels and for the motivation of new leaders.

Who is eligible?Every bonus eligible partner who fulfills the criteria (see below)

How does it work?All direct levels receive difference bonus, the amount of which is calculated from the difference between one’s own bonus level and the bonus level of the direct levels. For the development of a direct 21%er you will receive special bonus up to the next partner who is eligible for special bonus. The special bonus as well is staggered, as demonstrated in the following table:

Number of direct 21% levels

Side Volume Special bonus

1 < 4,000 PV No special bonus

4,000 – 11,999 PV 7.00% on the side volume

≥ 12,000 PV 7.00% on the 21%er sales

2 – 3 < 4,000 PV No special bonus

4,000 – 11,999 PV 7.50% on 50% of the 21%er sales

≥ 12,000 PV 7.50% on the 21%er sales

4 – 6* 8.00%

7 – 9* 8.50%

10* 9.00% on the 21%er sales

12* + 1 Million PV sales or 3 Silver levels 9.50%

12* + 2 Million PV sales or 2 Platinum Lines 10.0%

* if the side volume is less than 12,000 PV the lack of sales to 12,000 PV will be deducted from special bonus-eligible volume (based on the BV).

Side VolumeSpecial Bonus7%-10%

6%21%

21%

9% 12%

Page 20: Au concept to_success

B

D

F GH I

C

E

A

B

D E

C

F

A

19The LR Marketing Plan

Example 6: Special Bonus for two direct 21%er

Example 5: Special Bonus for direct 21%er

1. Personal Bonus of 21% on 1,000 BV = $ 210.002. Difference Bonus = $ 200 + $ 420 + 4 x $ 75 = $ 1,200.003. Leader Bonus of 3% on 16,000 BV = $ 480.004. 7% Special Bonus on 21%er sales (12,000 BV) = $ 840,00

Total earnings (without profit margin) $ 2,750.00

21%12,000 PV

12000 BV

11%2,000 PV

2000 BV

14%4,000 PV

4000 BV

14%6,000 PV

6000 BV

21%1,000 PV

1000 BV10% difference

= $ 2007% difference =

$ 280

7% difference = $ 420

7% special bonus

b) if D + E + F together achieve sales of over 12,000 PV: 7.5% special bonus on the cumulated sales of direct 21%er, i.e. 7.5% on 24,000 BV = $ 1,800.00

Special Bonus for A:a) if D + E + F together achieve sales of

4,000 PV, but less than 12,000 PV: 7.5% special bonus on 50% of the cumulated sales of direct 21%er, i.e. 7.5% x 50% x 24,000 BV = $ 900.00

4 x 6%er with total of 2000 PV

2000 BV

4 x 15% Difference = 4 x $ 75

You will also receive: + Personal Bonus + Difference Bonus + Leader Bonus (in case of 8 Bonus Lines) + Training and Seminar Bonus (with 12,000 PV Side Volume for 2 direct 21%er)

21%12,000 PV

12,000 BV

21%12,000 PV

12,000 BV

21%1,000 PV

1,000 BV

Page 21: Au concept to_success

What is it?A reward for the successful development of leaders.

Who is eligible?Every organization leader who has achieved at least 4 X direct 21% lines.

How does it work?Entitlement for a depth bonus exists in the respective month in which the organization leader has achieved and upheld the set amount of direct 21% lines, as specified in the table.

Depth Bonus

Type of Depth Bonus Direct 21% lines Percentage of Depth Bonus

Silver Bonus 4 2.0 %

Platinum Bonus 10 1.0 %

The Depth Bonus is paid on all indirect 21% lines (exception: there is no Depth Bonus on indirect 21% lines into which special bonuses has been paid through to the direct 21% lines of the next Organization Leader with commensurate Depth Bonus qualification).

Example 7: Depth Bonus with 4 direct 21% levels

Depth bonus for ASilver bonus entitlement on 80,000 PV, that is 2.0% on 80,000 BV = $ 1,600.00

Depth bonus = $ 1,600.00

80,000 PV

A(SOL)

B20,000 PV10,000 BV

F20,000 PV10,000 BV

C20,000 PV10,000 BV

G20,000 PV10,000 BV

D20,000 PV10,000 BV

H20,000 PV10,000 BV

E20,000 PV10,000 BV

I20,000 PV10,000 BV

You will also receive: + Personal Bonus + Difference Bonus + Leader Bonus (in case of 8 bonus lines) + Special Bonus (with required side volume)

Page 22: Au concept to_success

The LR Marketing Plan 21

Depth bonus for ASilver bonus entitlement on 200,000 PV, that is 2.0% on 200,000 BV = $ 4,000.00Platinum bonus entitlement on 200,000 PV, that is 1.0 % on 100,000 BV = $ 2,000.00

Depth bonus = $ 6,000.00

A(POL)

200,000 PV

Example 8: Depth bonus with 10 direct 21% levels

Organization leaders who are fully qualified to be President will receive each month in which they are qualified a supplementary Depth Bonus as per table below:

President Bonus

* President Bonus

** President Bonus

*** President Bonus

**** President Bonus

***** President Bonus

0.2% 0.2% 0.2% 0.2% 0.2% 0.2% = 1.2%

0.2% 0.2% 0.2% 0.2% 0.2% = 1.0%

0.2% 0.2% 0.2% 0.2% = 0.8%

0.2% 0.2% 0.2% = 0.6%

0.2% 0.2% = 0.4%

0.2% = 0.2%

U20,000 PV10,000 BV

K20,000 PV10,000 BV

L20,000 PV10,000 BV

M20,000 PV10,000 BV

N20,000 PV10,000 BV

O20,000 PV10,000 BV

P20,000 PV10,000 BV

Q20,000 PV10,000 BV

R20,000 PV10,000 BV

S20,000 PV10,000 BV

T20,000 PV10,000 BV

B20,000 PV10,000 BV

C20,000 PV10,000 BV

D20,000 PV10,000 BV

E20,000 PV10,000 BV

F20,000 PV10,000 BV

G20,000 PV10,000 BV

H20,000 PV10,000 BV

I20,000 PV10,000 BV

J20,000 PV10,000 BV

You will also receive: + Personal Bonus + Difference Bonus + Leader Bonus + Special Bonus (with required side volume)

Page 23: Au concept to_success

Top Depth Bonus

What is it?A reward for the successful development of managers.

Who is eligible?Every Organization Leader who has developed at least 12 bonus lines, at least 4 of which are direct 21% lines and who has a partner in his/her downline who receives Depth Bonus.

How does it work?Silver and Platinum is differentiated in the same way as the Depth Bonus. The top depth bonus is paid for levels where partners already receive Depth Bonus (Silver and Platinum Bonus) through the next organization leader with commensurate top depth bonus qualification. If the partner has adequate qualification (starting with platinum organization leader) for Top Silver and Top Platinum Bonus, he/she receives of course both Top Depth Bonuses (Silver and Platinum Top Bonus)

Qualificationdirect 21%

linesPercentage of Silver Bonus

Percentage of Platinum Bonus

12 2.00% 1.00%

12 2.00% 1.00%

12 2.00% 1.00%

12 1.75% 1.00%

12 1.50% 1.00%

12 1.25% 0.75%

12 1.00% 0.50%

10 0.75% 0.25%

7 0.50%

4 0.25%Silver-OL

Gold-OL

Platinum-OL

Vice-President

President

*Star President

**Star President

***Star President

****Star President

*****Star President

Page 24: Au concept to_success

The LR Marketing Plan 23

Example 9: Organization leader with 4 direct 21% and amongst has an organization leader with 4 direct 21% lines in the downline

Example 10: Organization leader with 10 direct 21% lines and amongst has an organization leader with 10 direct 21% lines in the downline

Silver Bonus for A on 80,000 PV2% bonus on 80,000 BV = $ 1,600.00+ Top Silver Bonus on 180,000 PV(J, K, L) 0.25 % on 180,000 BV = $ 450.00

Total depth bonus = $ 2,050.00

Silver Bonus + Platinum Bonus for Aon 200,000 PV, 3% on 200,000 BV = $ 6,000.00+ Top Silver Bonus on 180,000 PV, 0.75 % on 180,000 BV = $ 1,350.00+ Top Platinum Bonus on 180,000 PV, 0.25 % on 180,000 BV = $ 450.00

Total depth bonus = $ 7,800.00

180,000 PV

200,000 PV

A (SOL)

80,000 PV

180,000 PV

A(POL)

C(SOL)

L40,000 PV20,000 BV

B20,000 PV10,000 BV

D20,000 PV10,000 BV

E20,000 PV10,000 BV

F20,000 PV10,000 BV

G20,000 PV10,000 BV

H20,000 PV10,000 BV

I20,000 PV10,000 BV

J80,000 PV40,000 BV

K60,000 PV30,000 BV

Your recieve also + Personal Bonus + Difference Bonus + Leader Bonus (in case of 8 bonus lines) + Special Bonus (with required side volume)

B(POL)

C20,000 PV10,000 BV

D20,000 PV10,000 BV

E20,000 PV10,000 BV

F20,000 PV10,000 BV

G20,000 PV10,000 BV

H20,000 PV10,000 BV

I20,000 PV10,000 BV

J20,000 PV10,000 BV

K20,000 PV10,000 BV

L20,000 PV10,000 BV

M20,000 PV10,000 BV

N20,000 PV10,000 BV

O20,000 PV10,000 BV

P20,000 PV10,000 BV

Q20,000 PV10,000 BV

R20,000 PV10,000 BV

S20,000 PV10,000 BV

T20,000 PV10,000 BV

U20,000 PV10,000 BV

V80,000 PV40,000 BV

W60,000 PV30,000 BV

X40,000 PV20,000 BV

You will recieve also + Personal Bonus(with enough + Difference Bonusside volume): + Leader Bonus (in case of 8 bonus lines) + Special Bonus

Page 25: Au concept to_success

Annual Bonus

What is it?A reward for successful work in a calendar year and a kind of additional “Christmas Bonus”.

Who is eligible?Every organization leader who meets the following requirements:1.) Achieving a minimum of 1,000,000 PV + total sales2.) The strongest lines accounts for max. 60%

of the Total Sales or at least 1,000,000 PV sales without the strongest line

3.) Achieving minimum 250,000 PV side volume within a calendar year

4.) Still remains LR partner by at least 31st of March of the subsequent year

How does it work?

Starting from 1,000,000 PV Annual Sales

1.00%

Starting from 2,000,000 PV Annual Sales

1.50%

Starting from 3,000,000 PV Annual Sales

2.00%

Starting from 4,000,000 PV Annual Sales

2.25%

Starting from 5,000,000 PV Annual Sales

2.50%

6-digit “Christmas Bonus“ for the best of the best: from left to right: Charalampos Daniilidis, Willi & Renate Fausel, Andrea & Bernd Schlothauer, Marko Riedel, Haiko Nuhn, Holger & Tanja Kunath, Patrik König, Ulrike Paulsen & Jürgen Zinkel, Bernd Vogelhuber, Ilhan Dogan

Page 26: Au concept to_success

The LR Marketing Plan 25

Page 27: Au concept to_success

LR Career Ladder

Organization Leader

Qualification 6 months in succession 12 bonus-eligible lines with 24,000 PV total sales or 12,000 PV residual sales at 1 × 21% lines

BonusSpecial Bonus, Leader Bonus, – bonus on personal sales

ExtrasLR Mercedes Benz Concept Level 1,Organization Leader Academy

Team Leader

Qualification 3 months in succession 6 bonus-eligible lines and 16,000 PV total sales

Bonusleader bonus – bonus on personal sales

ExtrasTeam leader day,

Junior Team Leader

Qualification 12,000 PV group sales, 250 PV own sales and 6 bonus-eligible lines

Bonusbonus manager bonus – bonus on personal sales

ExtrasVW Polo Car Concept Aus $ 300/Nz $ 375Junior Team LeaderAcademy

Manager

Qualification 8,000 PV group sales, 250 PV own sales and 4 bonus-eligible lines

Bonusbonuses on own sales

ExtrasVW Polo Car Concept Aus $ 200/Nz $ 250

Junior ManagerQualification 4,000 PV group sales, 250 PV own sales and 3 bonus-eligible linesl

Bonusbonus on Personal sales

ExtrasVW Polo Car Concept Aus $ 100/Nz $ 125Junior Manager Academy,

11% Qualification 2,000 PV total sales

Bonusbonus on Personal sales and group sales

Extrasextra quick start bonus

3 – 9%Qualification 250 – 1,000 PV total sales

BonusBonus on Personal Sales and Group sales

EstimatedAnnual earnings $ 28,000 to

$ 63,000$ 14,000 to

$ 49,000$ 14,000 to

$ 35,000$ 7,000 to $ 14,000

$ 3,200 to $ 8,200

Page 28: Au concept to_success

27

Star President * to *****

Qualification 6 months in succession 12 × 21%-Lines out of which 3 must beBOL or12 × 21%-Line+ 4,000,000 to 12,000,000 PV Atleast sales of2,400,000 to 7,200,000Sidevolume

BonusPresident bonusTop-Platinum BonusPlatinum BonusTop-Silver bonusAnnual BonusSilver BonusSpecial BonusLeadership Bonus

ExtrasLR Porsche ConceptEvents & Trips

President

Qualification 6 months in succession 12x 21% lines, there from 2 platinum OL lines or 12x 21% lines + 2,000,000 PV sales, therefrom at least 1,200,000 residual group sales

BonusPresident bonus, top platinum bonus, platinum bonus, top silver bonus, annual bonus, silver bonus, special bonus, manager bonus – bonus on personal sales

ExtrasLR Porsche ConceptEvents & Trips

Vice President

Qualification 6 months in succession 12x 21% lines, whereas 3 silver OL lines or 12x 21% lines + 1,000,000 PV sales

Bonustop platinum bonus, platinum bonus, top silver bonus, annual bonus, silver bonus, special bonus, manager bonus – bonus on personal sales

ExtrasLR PorscheConceptEvents & Trips

Platinum Organization Leader

Qualification 6 months in succession 10x 21% lines

Bonustop platinum bonus, platinum bonus, top silver bonus, annual bonus, silver bonus, special bonus, manager bonus, – bonus on personal sales

ExtrasLR Porsche ConceptEvents & Trips

Gold Organization Leader

Qualification 6 months in succession 7x 21% lines + 12,000 PV or 8 and more 21% lines

Bonustop silver bonus, annual bonus, special bonus, manager bonus – bonus on personal sales

ExtrasLR Porsche Boxster orMercedes CLKConcept Level 3

Silver Organization Leader

Qualification 6 months in succession 4x 21% levels + 12,000 PV or 5 and more 21% levels

BonusTop Silver Bonus, Annual Bonus, Special Bonus, Leader Bonus – bonus on personal sales

ExtrasLR Mercedes Benz Concept Level 2

Bronze Organization Leader

Qualification 6 months in succession 2x 21% lines + 12,000 PV residual sales or 3x 21% lines

BonusAnnual Bonus, Special Bonus, leader bonus, – bonus on personal sales

ExtrasLR Mercedes Benz Concept Level 1, Silver OL Academy

above$ 1,200,000

above$ 900,000

above$ 460,000

$ 280,000 to $ 440,000

$ 90,000 to $ 280,000

$ 56,000 to $ 100,000

above$ 1,900,000

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Recognition through LR 29

Recognition– Training and Seminar Bonus

Building and training of Leaders are the alpha and omega for the LR success. As a Leader you’ll get an additional fixed monthly Bonus. The Training and Seminar Bonus!

With 2x21% a minimum side volume of 12,000 PV is required.

with 3 or more 21%er, no side volume is required.

Bonus will be automatically converted into Php and stated on the Bonus

Statement.

The bonus is only applicable for partners with 2 - 9x21%er (Gold OL).

Partner with 10x21% or more are getting Platinum Bonus.

Seminar attendants sheets are required.

2

3

4

5

6

7

8

9

150 €

200 €

400 €

500 €

600 €

700 €

800 €

900 €

21%er Training and Seminar Bonus

••

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LR Incentives – The LR Car Plan

Germany drives LR because successful LR partners participate with the following cars concept according to qualification:

• VW Polo LR special edition

• Mercedes Benz, B-Class, (Level I)

• Mercedes Benz C-Class, (Level II)

• Mercedes Benz CLK, Porsche Boxster (Level III)

• Porsche 911 Coupé, Porsche 911 Convertible, Porsche Cayenne, Porsche Panamera

LR is a key client of Volkswagen, Mercedes Benz and Porsche

Recognition through LR

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Recognition through LR 31

Exclusive for LR Partners

VW Polo LR special edition1) Junior Manager: Aus $100.00/ NZ $125.00, “Car Bonus“, for each month following the qualification to Junior Manager. If one or several lines have achieved the 14% bonus-eligible level or above, the sales outside this level must at least amount to 2,000 PV.2) Manager: Aus $200.00/NZ 250.00 “Car Bonus“, for each month following the qualification to Manager. If one or several lines have achieved the 14% bonus-eligible level or above, the sales outside this level must at least amount to 4,000 PV. If sales outside the 14% level amounts to at least 2,000 PV, the manager is granted Aus $100.00/NZ $125.00 allowance.

Mercedes Benz Level I Organization Leaders will receive Aus $780.00/NZ $ 920.00 “Car Bonus“ each month that they achieve 12 bonus-eligible levels, 24,000 PV group sales and 20,000 PV residual sales with 1 x 21% level or 8,000 PV residual sales with 2 x 21% levels.

Mercedes Benz Level IISilver Organization Leaders will receive Aus $1,250.00/ NZ $1,475.00 “Car Bonus“ each month that they achieve 12 bonus-eligible levels, 4x 21% levels and 20,000 PV residual sales. If this qualification is not achieved but at least the qualification for a Mercedes Benz level I, they will receive Aus $ 780.00/ NZ$ 920.00

Mercedes Benz Level III Gold Organization Leaders will receive Aus $1,750.00/ NZ $2,050.00 “Car Bonus“ each month that they achieve 12 bonus-eligible levels, 7x 21% levels and 20,000 PV residual sales. If this qualification is not achieved but at least the qualification for a Mercedes Benz level II, they will receive Aus $1,250.00/NZ $ 1,475.00

PorschePlatinum Organization Leaders will receive Aus $2,050.00/ NZ $2,420.00 “Car Bonus“, for each month in which they meet the qualification for Platinum Organization Leader. If this qualification is not achieved but at least the qualification for a Mercedes Benz level III, they will receive Aus $1,750.00/ NZ $2,050.00

The above bonus only applies to LR Partners who

participate in the Polo Car Concept.

Note:

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Highlights from previous trips to Bali, Costa Rica and Mauritius as well as with the AIDA

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Recognition through LR 33

LR Incentives – LR Trips

Relaxing in Mauritius or motivation and fun in Southern Spain, LR rewards its successful managers with dream trips.

Conditions of participation

All Organization Leaders are qualified by moving up the next rung of the

Organization Leader ladder, for instance from Organization Leader to Bronze

Organization Leader, from Bronze Organization Leader to Silver Organization

Leader, etc.

Original testimonials from the past few years:

“I still have to smile today when I think about how I sat

atop a camel gently swaying back and forth while travelling

through the sands of the Dubai desert.”

“When I informed my parents that I had decided in favor

of LR, they thought I had lost my mind. Today, they proudly say:

Our boy has already seen half the world.”

Highlights from previous trips to Bali, Costa Rica and Mauritius as well as with the AIDA

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Pre-requisites

2. Using the products yourselfOnly when you use the products yourself you can really inspire others, since what you say will be more authentic and more convincing. Over the course of time, you will discover your favourites in the product range. Make these products the focus of your efforts.

1. GoalsA goal is the target you hope to achieve in the future. A goal must be ambitious, yet also realistic. Goals make work meaningful. Set your goals in such a way that your LR business takes on meaning. Distinguish between short-, middle- and long-term goals.

• Define your goals concretely!

• Establish concrete points in time!

• Fix your goal and visualize its fulfillment!

• Create strategic objectives!

LR can help you with all of these.

The first goal is the fast-starter premium.Every partner who has reached the 11% bonus level in the month in which he/she started or the succeeding month, receives a top quality gift premium in recognition of their efforts. If the partner already has a level with 2,000 PV, then at least a 1,000 PV turnover towards this level is required.

The 2nd goal is a VW Polo Special Edition.For additional information and the exact requirements for this, please refer to page 29.

1. Steps with LR

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1. Steps with LR 35

4. Name listThe name list is the list that contains your future business partners. Meaning that it is of extreme importance. We therefore describe this name list separately on the following pages.

5. Investing timeWhat are you willing to invest in order to reach your goals? As mentioned above, your goal must be realistic. Let’s say, for instance, that your middle-term goal is to earn $ 1,000 per month with LR. Then imagine how it would be if your current employer offered you a raise of $ 1,000 to work an additional 2 hours a day. You would of course accept, wouldn’t you? Well, rather invest these 2 hours in your LR business – because with 10-15 hours per week, you can earn much more that $ 1,000 in the medium-term!

6. TrainingNo one is born a master. Every success on the job is dependent on the right training. Have you ever undergone a training yourself? Have you pursued a course of studies or earned a degree in order to be “successful”? The message that your LR training also carries for you: Learn! That’s why LR offers an excellent seminar programme. In addition to this, you should also take part in seminars offered by LR partners who are already successful. Learn from their accomplishments!

3. Business-like appearanceDon’t forget: you are offering people the opportunity to make a positive change. If you are dressed poorly while you’re talking about the chances for success with LR, you will make a less plausible impression than when you present with a business-like appearance. You don’t get a second chance to make a first impression!

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List of Names & Appointments

Who belongs on your name list? Quite simply: EVERYONE!

On the previous page, we already briefly informed you about the importance of the nameslist. A full name list is your first step on the road to success. In order to reach the highest bonus level, your list needs to contain around 150 names with telephone numbers.

Do you think that’s a lot? It has been statistically proven that a thirty-year old man has already made around 2,000 contacts in his lifetime.

And how do you get those names?There are various “tricks” that can prove helpful:

• Photo albums: Browse through your photo albums.

• CV: Read through your CV and consider who you still know from the various stages of your life.

• First names: Think about who you might know with the names Andre, Anna, Anne, Andy … etc.

• Mobile phone: Search through your contacts.

Purposefully select and write down various names!• Relatives

• People who “live” you for example, hairdresser, baker, car mechanic, newsstand owner, insurance salesperson

• People who you know from associations, clubs, groups, training courses

• People from your neighborhood, including landlord, architects, previous tenants

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1. Steps with LR 37

The names list will first be of great value to you when you actually begin to work with it – and working with it means making appointments.

• In addition to your name list, you need a telephone, a personal organiser and quiet place.

• Run through your telephone call in your mind first. Your call shouldn’t last more than 2 minutes.

• Make sure that your voice brings across the necessary enthusiasm.

• Believe it or not, the person on the other end of the telephone can “see” your smile. So, always smile.

• Talk very naturally, but never loose sight of your goal to set a date for a business presentation.

Correct conversing

• Positive greeting

• Arouse curiosity

• Suggest an appointment

• Invite the partner

Here’s a suggestion on how to start a conversation:

Victor: Hey, Anna, we recently discovered something new, and my wife immediately said: You’ve got to show it to Anna and Peter!

Anna: Hi, sounds exciting. What’s it all about?Victor: I would love to show it to you. What are you guys

doing on Friday evening?Anna: Friday is ok for me but I’ll have to ask Peter. He’s not

here right now, but when he gets home I’ll let you know...

Victor: Great, talk to you then.

Or:

Lena: Hi Meike, I have a surprise for you both. What are you doing on either Wednesday or Friday evening?

Meike: What kind of a surprise?Lena: Well, if I told you now it wouldn’t be a surprise

anymore. So, when do you have time?

Or even like this:

Eva: Hi George, I need your advice.George: Hello. Sure, what’s up?Eva: I have this business idea that almost sounds too

good to be true. I would love to have your opinion. When do you have time this week so that I can go over it with you?

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Contact / LR locations worldwide

AlbaniaLR Health & Beauty Systems Ermou 50 14452 Metamorfosi Attikis GriechenlandT: 0030 211 200 22 31 Fax: 0030 211 200 22 32email: [email protected]

AustraliaLR Health & Beauty Systems Pty Ltd Aerolink Businesspark 1&2 / 85-91 Keilor Park Drive Tullamarine Victoria 3043Australia T: 0061 (3) 9310 5166 Fax: 0061 (3) 9310 5177 email: [email protected]

BelgiumLR Cosmetic Belgium b.v.b.a Stenehei 30, 2480 DesselBelgien T: 0032 (0) 14 47 09 90 Fax: 0032 (0) 14 47 09 91 email: [email protected]

BulgariaLR Health & Beauty Systems 60, Tzarigradsko shose Blvd.1784 SofiaBulgariaT: 00359 (0) 2 870 8159 Fax: 00359 (0) 2 971 2182 [email protected]

DenmarkLR-Health & Beauty Systems ApS Lundsbjerg Industrivej 8 6200 AabenraaDänemarkT: + 45 74 31 00 33 Fax: + 45 74 31 00 35 email: [email protected]

GermanyLR Health & Beauty Systems GmbH Kruppstr. 55, 59227 Ahlen DeutschlandT: 0049 (0) 23 82 70 60 - 0 Fax: 0049 (0) 23 82 70 60 - 311 email: [email protected]

Faroe Islands LR Health & Beauty Systems ApS C/o Bjørgvin Sp/F Heygsvegur 4, 490 Strendur Färöer Inseln T: + 45 74 31 00 33 Fax: + 45 74 31 00 35 email: [email protected]

FinlandLR Health & Beauty Systems Oy Joukahaisenkatu 6, 20520 Turku FinnlandT: 00358 (0) 2 2759300 Fax: 00358 (0) 2 2343336 email: [email protected]

FranceLR Cosmetic Belgium b.v.b.a Stenehei 30, 2480 DesselBelgien T: 0032 (0) 1 447 09 90 Fax: 0032 (0) 1 447 09 91 email: [email protected]

GreeceLR Health & Beauty Systems Ermou 50, 14452 Metamorfosi AttikisGriechenlandT: 0030 210 2 85 24 85 Fax: 0030 210 2 84 73 09 email: [email protected]

IcelandLR Health & Beauty Systems ApS Lundsbjerg Industrivej 8 6200 AabenraaDänemark T: + 45 74 31 00 00 Fax: + 45 74 31 00 35 email: [email protected]

ItalyLR Health & Beauty Systems Srlu Via Marconi 93/9520020 Magnago (MI)ItalienT: 0039 0331 79 02 51Fax: 0039 0331 77 33 97email: [email protected]

LiechtensteinLR Health & Beauty Systems AG 4 Towers Turmstrasse 30. 6300 ZugSchweiz T: 0041 (0) 749 80 20 (deutsch) T: 0041 (0) 749 80 22 (französisch) Fax: 0041 (0) 749 80 30 email: [email protected]

For orders, please do not hesitate to send an email to:Email: [email protected]. 03 9310 5166Fax: 03 9310 5177

ServiceIf you have any questions abour service related queries, please contact our office on 03 9310 5166 or send us email to:[email protected]

Managing DirectorBurkhard MeffertAustralia/NZPhone: +64 03 9310 5166Email: [email protected]

Office ManagerNella DemouPhone: +64 03 9310 5166Email: [email protected]

Sales & SupportFor all sales support related enquiries, pls contact:Cahl Randhawa Sales ManagerAustralia/NZPhone: 0409 920 887Email: [email protected]

Commercial ManagerPaul MauroPhone: 03 9310 5166Email: [email protected]

Product Related Enquiries:Resh Randhawa Product ManagerAustralia/NZPhone: 0412 129 882Email: [email protected]

New ZealandPhone: +64 9 837 5303Fax: +64 9 837 5304Email: [email protected]. Box 79-423 Royal HeightsAuckland NZ 0614

Service

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Service

LuxembourgLR Cosmetic Belgium b.v.b.a Stenehei 30, 2480 DesselBelgien T: 0032 (0) 1 447 09 90 Fax: 0032 (0) 1 447 09 91 email: [email protected]

The NetherlandsLR Health & Beauty Systems BV Postbus 14, 5060 AA Oisterwijk Nederland T: 0032 (0) 1 447 09 90 Fax: 0032 (0) 1 447 09 91 email:[email protected]@LRworld.com

New ZealandLR Health & Beauty Systems P.O. Box 79-423 Royal Heights Auckland 0614 NeuseelandT: 0064 (9) 837 5303 Fax: 0064 (9) 837 5304 email: [email protected]

NorwayLR Health & Beauty Systems AS Kartverksveien 7, 3511 Hønefoss Norwegen T: 0047 (0) 32 11 29 00 Fax: 0047 (0) 32 11 29 80 email: [email protected]

AustriaLR Health & Beauty Systems GmbH Eduard-Bodem-Gasse 9 6020 Innsbruck ÖsterreichT: 0043 (0) 512 57 75 75 Fax: 0043 (0) 512 57 75 75 21 email: [email protected]

PhilippinesLR Health and Beauty Systems Philippines, Inc.Ground Floor, Eurovilla 4 Bldg. #853 A. Arnaiz Ave., Makati City Philippines Tel. No. : +632 8121160 Fax. Nos.: +632 8121146 or +632 8936889Emails: [email protected] [email protected]

PolandLR Health & Beauty Systems Sp. z o.o. úl. Kościuszki 227, 40-950 Katowice PolenT: 0048 32 351 12 50 Fax: 0048 32 351 12 55 email: [email protected]

PortugalL. de Racine - International Iberia - Cosméticos e Marketing Unipessoal Lda. Rua Gil Vicente, 26 - Apto 316 Quinta Nova de São Roque 2670-513 LouresPortugal T: 00351 21 982 57 20 Fax: 00351 21 982 57 25 email: [email protected]

RomaniaLR Health & Beauty Systems S.R.L. Nicolae Romanescu 112, 200738 Craiova RumänienT: 0040 (0) 251 426 000 Fax: 0040 (0) 251 426 001 email: [email protected]

SwedenLR Health & Beauty Systems AB Box 604 / Strandgatan 28 531 16 LidköpingSchweden T: 0046 (0) 510 290 10 Fax: 0046 (0) 510 291 70 email: [email protected]

SwitzerlandLR Health & Beauty Systems AG 4 Towers Turmstrasse 30, 6300 ZugSchweiz T: 0041 (0) 41 749 80 20 (deutsch) Fax: 0041 (0) 41 749 80 30email: [email protected]

SlovakiaLR Health & Beauty Systems, s.r.o. Turzovka Stred 422 02354 Turzovka SlowakeiT: 00420 59 578 31 31 Fax: 00420 59 578 31 32 email: [email protected]

SpainL. de Racine - International Iberia - Cosméticos e Marketing Unipessoal Lda. Rua Gil Vicente, 26 - Apto 316 Quinta Nova de São Roque 2670-513 Loures Portugal T: 0034 901 900 776 Fax: 0034 901 900 740 email: [email protected]

Czech RepublicLR Health & Beauty Systems, s.r.o. Závodní 2, 70030 Ostrava-HrabůvkaTschechische Republik T: 00420 59 578 31 31 Fax: 00420 59 578 31 32 email: [email protected]

TurkeyLR Health & Beauty Systems Pazarlama ve Tic. Ltd. Şti. İkitelli Organize Sanayi Bölgesi Atatürk Bulvari Fatih Sitesi, 5A Blok No. 4 34306 Basaksehir - IstanbulTürkei T: 0090 (0) 212 485 27 26 Fax: 0090 (0) 212 485 07 94 email: [email protected]

UkraineLR Health & Beauty Systems, I.t.d. ul. Dragomirova 4, office 123 01103 Kiew UkraineT: 0038 044 536 03 55 Fax: 0038 044 536 03 55 email: [email protected]

HungaryLR Health & Beauty Systems Kft. H-1191 Budapest, Ady E. út 42-44, Ungarn T: +36 1 477 42 45 Fax: +36 1 477 42 48 email: [email protected]

CyprusLR Health & Beauty Systems Ermou 50 14452 Metamorfosi Attikis GriechenlandT: 00357 22 34 64 35 Fax: 00357 22 73 06 78 E-mail: [email protected]

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Q & A

How much money can I earn with LR?In general it can be said that the profit margin of 40% on average constitutes direct earnings. An additional bonus is granted for purchase value starting from $ 250 net/month. Earnings always depend on the commitment. Hundreds of thousands of partners have a sound additional income with LR. However, a 6-digit monthly income is also possible with LR. The model cases illustrated in the examples in the first part show the possible earnings of an LR partner. However, not all alternatives are outlined due to the complexity of the LR marketing plan. In case of doubt please do not hesitate to contact LR directly.

When does LR remit the bonus?The bonus is paid retrospectively, punctually by 20th of the subsequent month.

International business

In which countries is LR represented?LR has branches/subsidiaries in 31 countries worldwide. Addresses can be found on the previous double page spread.

Is it possible to find new partners in other countries (i.e. during holiday)?Yes, absolutely. The LR business model is oriented internationally and also allows for trans-border businesses.

Is it possible for me to acquire new partners in each LR country using my partner number?Yes, it is possible.

Where can I find information on the individual countries?General information on LR subsidiaries abroad can be found in the internal area of the LR website at LR worldwide.

LR Products

Are LR products subject to animal testing?LR does not test its products on animals, neither on its own nor by third parties. The aim of LR is to keep the environmental impact to a minimum through use of environmentally-friendly and resource-saving manufacturing processes.

Are all LR products tested?Yes. All LR products are subject to internal quality assurance. All LR skin care products are tested by the independent Dermatest Institute. Moreover, Aloe Vera products are tested by the IASC (International Aloe Science Council). Aloe Vera Drinking Gels have additionally received the INSTITUT FRESENIUS quality seal.

What will happen if the product does not meet the expectations?All LR products are subject to continous internal quality assurances as well as external tests. If the product does not meet the expectations, LR Health & Beauty Systems will accept product returns if the are in perfect and resellable condition up to 60 days after you receive your products from LR Health & Beauty Systems.

Q & A

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Purchase and sales

Is it allowed to sell LR products at trade fairs?No. The LR business lives from personal approach and consulting. However, it is permitted to exhibit and provide information on LR products at trade fairs after prior consent of LR and in the presence of the organization leader, but the products may not be sold at trade fairs.

Is it permitted to sell LR products in stationary trade, i.e. pharmacy, hairdresser, fitness studio?You are not permitted to directly sell LR products in such establishments.

Is it permitted to sell LR products via Internet?You can operate your own website and are allowed to sell LR products in your own

“online shop“. This website requires LR’s prior approval.

Is it allowed to place ads or create flyer for the products?Yes, but it is subject to the following restrictions: LR partners are not permitted to use neither the LR logo or product images nor the “LR Health & Beauty Systems“ name for ads, flyers, brochures or similar.

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Glossary

21% Level

Level achieving 12,000 PV total sales in one month.

100 PV Regulation

Each partner must at least achieve 100 PV own sales per month in order to receive a bonus.

Academy

The LR Academy comprises LR‘s entire training offer. LR’s training is unsurpassed in this industry. Target-oriented, individual and intensive. It starts with training offers for Junior Managers (Junior Manager Academy) via Junior Team Leader Academy, Team Leader Day, Organization Leader Academy through to Silver Organization Leader Academy. The seminar offer is supplemented by product training, sales training, online seminars and online knowledge tests.

Car Bonus

Special payment for partners who achieved LR car qualification and have leased an LR car.

Car Plan

The LR car plan comprises a unique cooperation with Volkswagen, Mercedes Benz and Porsche. LR grants the car bonus as an allowance to the respective leasing rates depending on the qualification of the partner.

Bonus

In addition to the profit margin LR remits each partner a bonus retrospectively on the sum of all sales transacted per month. Bonus must be approved for payment of bonus on own sales or group sales, by the fulfilment of the 100 PV regulation and total sales of at least 250 PV/month.

Bonus Line

The bonus-eligible level is each direct level achieving at least 250 PV total sales per month.

Downline

Downline is the course of the structure of each partner downwards, i.e. all partners registered by A, their partners and the partners thereof belong to ”Downline”. The Downline branches continuously downwards at lower tiers.

Own sales

Own sales are viewed as order values which a partner generates himself in his own name and own account. Orders generated through end consumers also account for qualification to own sales of the respective partner.

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Service

Business Volume Business Volume (BV) is a value assigned to each product. The percental bonus level achieved through the generated PV shall be calculated on the corresponding BV and paid out to the respective partner in AUD.

Total Sales

Total sales of a partner comprise of his own monthly sales as well as the total monthly sales of his structure developed by that time.

Group Sales

Group sales comprise the total order volume up to the developed and active downline by that time. In terms of calculation: group sales = total sales – own sales

Profit Margin

Profit margin is the difference between the end consumer price for the customer and the purchase price of the partner.

Inactivity

A partner is viewed as inactive if he has no own sales for 12 months in succession.

Level

A level is a part of a structure and branches continuously downwards

Partner

Independent sales partner of LR who entered into a partner agreement with LR and runs the LR business in his own name and on his own account.

Point Value Point value (PV) is the value assigned to every LR product. Based on the PV a partner achieves specified qualification and bonus levels.

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Side Volume Total sales including personal sales which a partner can generate without his 21% level.

Sponsor/sponsoring

Sponsoring means winning new partners for the LR business. Sponsor is the respective intermediary of the new entrant.

Structure

Structure means the entity of all levels in the downline

Upline

Upline is the opposite of downline and describes the sponsor, his sponsor etc.

The individual bonuses and titles used by LR are illustrated in example on the respective pages and are therefore not part of the glossary.

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Service

Terms of Delivery & Payment

1. Methods of paymentc) Credit card – Master/VISA/Bankcard/Amex

Please keep in mind that credit card data are not saved. We therefore kindly ask for your understanding that your credit data must be collected again for every order paid via credit card.

2. Dispatch All orders of $250 and above FREE DeliveryOrder below $ 250. (Aus $9.00 + gst) (NZ $10.00 + gst) freight charges

Essential details> Your partner number> Your code number (only required if you prefer

bank collection for orders placed via phone)> Order number incl. sub-number> Article description> If required, details on fragrance, sizes and

colours> Required order quantity> Delivery address (insofar it deviates from the

delivery address provided). Please observe: Invoice is in the parcel

3. Othera) LR Health & Beauty Systems GmbH

reserves the title of goods until full payment of the purchase price has been made. The partner shall be entitled to make use of the goods with due commercial prudence as long as he fulfils his obligations from the business relationship in a timely manner.

b) Claims of LR Health & Beauty Systems GmbH can be offset against bonus and royalty claims of the partners.

c) In addition to the relevant legal provisions, the partner shall be entitled without

specifying grounds to return the new and saleable goods in original packaging within two months following date of invoice against product voucher. The date of expiry of the product voucher shall be one year and shall be automatically offset against the next orders. Sales aids and documents shall be precluded from return.

d) Place of performance and jurisdiction is 59227 Ahlen.

e) Alterations of range and prices shall be reserved.

f) The legal provisions shall otherwise apply.g) Your contract partner:

LR Health & Beauty Systems GmbH, Kruppstraße 55, 59227 Ahlen, HRB 9874 AG Münster Geschäftsführer: Dr. Jens M. Abend, Thomas Heursen, Thomas Kircher, Tilo Plöger, Andreas G. Rutsch

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Success planner

Your most important contacts

Your Sponsor

Name

Phone

email

Address

Your Organization Leader

Name

Phone

email

Address

Your Seminar Schedules

Company presentation

Product trainings

Junior Manager Academy

Junior Team Leader Academy

Team Leader Day

OL Academy

SOL Academy

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Fr: 17.30 - 19.00h Badminton danach in's alex (Starbox einpacken!)

Sa: 13.30h BP bei Herrn und Frau krämer 18.00h Happy Hour Party bei Daniela

So: 16.00h geburtstag Ma

Calendar 13, 29.03. - 04.04.

larissa

anrufen !!

Sabine Rader

0176/66558792

Mo: 17.30- 19.00h Badminton 21.00h Elke wegen neuer Deko

Di: 19.00h Happy Hour Party bei Sabine Rader

Mi: leona lewis für Ma bestellen

Do: Steffi M. die neue Deko präsentieren-> Uhrzeit fix machen!

Your goal

Your schedule

1) Visualize your goals2) Make sure that you frequently see your “target image“, i.e. as screensaver on the PC or a

photo in your wallet

1) Keep a diary2) Jot down all business and private appointments and take additional notes

47Service


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