THE NETWORK MARKETING SYSTEM OF "Dr. NONA INTERMATIONAL Ltd." BASIC PRINCIPLES The Company's marketing plan offers three levels of discounts from the recommended price: commission on purchases by Consultants of your organization bonuses for the work of Directors' organizations, and special incentives. The marketing plan will help you to develop your business and increase your profit at your own pace and in accordance with your abilities and habits, without pressure or constraints and without fear to lose your financial or personal status.
THE MARKETING PLAN SAYS "YES" TO: • • • • • • • • •
Savings plan without time limit Three levels of discounts Profit from retail sale Commission on your Consultants' purchases Bonuses for the work of your Dir ectors ' organizations Monthly financial statement Special incentives Selling aids Continuous psychological and methodological support
THE MARKETING PLAN SAYS "NO" TO: • • • •
• •
Limitation of profits Limitation of the size of your organization Sliding back along the discou nt scale Loss of status achieved Limitation of time for reaching a higher status Loss of accumula ted pur chase volu me
REGISTRATION To become a Consultant of the Company: • Fill in and sign the Consultant Agreement and submit it to a branch of the Company the original copy of. • Purchase "the Initial Consultant Set" containing selling aids and pay the annual fee that covers the computer services cost. After the Consultant Agreement data have been entered into the computer you become a CONSULTANT and receive the right to buy the Company's products at a 20% discount and to recruit other Consultants for whom you will be a SPONSOR. Those recruited Consultants will form the first level of your organization and, by expanding retail sales, will bring you constantly increasing profit.
Note1: While filling out your Consultant Agreements carefully enter your personal data in the Sponsor column. Your future profits depend on this information.
Note 2: The annual payment for computer services is required in order to renew your personal Consultant Agreement.
TERMS AND DEFINITIONS 1. VOLUME UNITS (VU) - conventional units (points) - Unified, universally recognized units assigned to each product in a particular countr y. 2. PERSONAL VOLUME UNITS ( PVU) – personal purchase volume of a distributor expressed in VOLUME UNITS. 3. GROUP VOLUME UNITS (GVU) – combined purchase volume of a distributor and his organization up to the FIRST DIRECTOR level expressed in VOLUME UNITS. 4. VOLUME PRICE (VP) - Unified, universally recognized product unit price, disregarding regional warehouse expenses, discounts, bonuses, etc.
5. STATUS - Distributor’s rank in a marketing system characterized by certain rights and privileges. The achievement of a status is conditional on meeting specified requirements
The Marketing Plan provides for three statuses: CONSULTANT, MANAGER AND DIRECTOR. 6. CUSTOMER - a legal or natural person who entered into Agreement with the Company but did not place a lump sum order for a required amount of points and purchase the initial set. Savings plans are not available for Customers. Customers are entitled to buy the Company products at a discount of 10 %. (CUSTOMER is not the official status) 7. CONSULTANT - The first rank of a distributor according to the Marketing Plan. Consultant is a legal or natural person on who complied with the registration requirements and accepted the AGREEMENT with the COMPANY. A Consultant must start the savings and purchase the initial set. Consultants are entitled to buy the Company products at a 20% discount 8. MANAGER - A Consultant who is qualified to become a MANAGER. COMPANY products at 33% discount.
MANAGERS
are entitled to buy the
9. DIRECTOR - a Consultant who is qualified to become a DIRECTOR. COMPANY products at 40% discount.
DIRECTORS
are entitled to buy the
10. SPONSOR - a Consultant who recruits, trains, and supervises new Consultants. 11. LEVEL - Consultant's status in a Marketing System. Consultants recruited by you personally form your FIRST LEVEL. Those recruited by the FIRST LEVEL CONSULTANTS form your second level (their first level), etc. (The number of Consultants on each level is not limited). 12. CONSULTANT'S ORGANIZATION - all Consultants of all levels. (The number of levels is limited).
not
13. BRANCH - a part of a Consultant's Organization created by his (her) Consultant of the first level. (The number of branches is not limited). 14. GLOBAL PURCHASE VOLUME - Purchase Volume of Director's organization combined with PURCHASE VOLUMES of all his/her DIRECTORS (the entire directors network down to the eighth
15. DEVELOPMENT GROUP - your organization excluding DIRECTORS.
level).
CONSULTANT, MANAGER, DIRECTOR
Consultant CONSULTANT is the first rank in the marketing system. To become a Consultant you have to place an order
for 100 points. This order, as well as ALL subsequent orders, will be completed at the Consultant's price, e.g.. at 20% discount, regardless of the point volume of purchases. A 100 points order will open your savings plan. Explanation: until this requirement is met you can be a Customer, entitled to buy the Company products at a discount of 10%. However, the points gained thus will not accumulate in your account and will not be included in the group volume of your sponsor.
Your profits and privileges as a Consultant: 1. Purchase of Company products at the Consultant price: at 20% discount. 2. Profit from retail sales in the amount of 25% of your buying price.
3. Get higher in the marketing scale. Your own purchases and purchases of your organization’s Consultants and Customers will be added to your own points br inging you closer to the MANAGER status. How does the 25 % retail sales profit come about? Example: product cost is 100 conventional points (c.p.). You buy it at the discount of 20%, i.e. you pay 80 conventional points and sell it for 100 c.p. Your profit is 20 conventional points, which equals to 25% of 80 c.u. that you paid for the product.
Manager The second rank in the marketing system is MANAGER. 1. One way to become a Manager is as follows: you become a Manager when the total volume of your personal purchases combined with the purchase volume of all CONSULTANTS and CUSTOMERS in all levels of your organization reaches 1.500 POINTS (see a diagram). All your subsequent orders will be executed at the MANAGER price, i.e. at a discount of 33 % regardless of the point volume.
2. The other way is to place a 1000-point order. That order will be executed at the MANAGER price, i.e. at 33 % discount. All your subsequent orders will be executed at the MANAGER price regardless of their point volume. 100 (personal points) + 400 (points gained by organization # 1) + 1000 (points gained by organization # 2) = 1500 group points
Your profits and privileges as a Manager: 1. Purchase of the Company products at a MANAGER price: at 33% a discount. 2. Profit from retail sales in the amount of 50 % of your buying price. 3. Commission on purchases of your organization's Consultants. The commission amounting to 13 % is calculated on the basis of the total purchase volume of all the Consultants of your organization. (See next Chart) The payment of the commission is conditional on your having at least 100 points' worth of personal purchases for a relevant month. This condition refers only to the commission. Failure to meet this requirement does not involve changes in status or discount rights. 4. Get higher in the marketing scale. Your Consultants' purchases will allow you to accumulate points and move on to the next step of the marketing scale and become a DIRECTOR. How does the 50 % retail sales profit come about? Example: a product costs 100 conventional units. You buy it at a discount of 33 %, i.e. you pay 67 c.u., and sell it for 100 c.u. Your profit amounts to 33 c.u. which is equal to 50 % of the 67 c.u. you paid for it. No commission is paid on purchase volume of your MANAGERS and their CONSULTANTS. Their purchases, however, bring you closer to the DIRECTOR status.
Director The third rank in the marketing system is a DIRECTOR. 1. One way to become a DIRECTOR is as follows: you will become a Director when a total volume of your personal purchases combined with the purchase volume of Consultants and customers of your organization (PVU) amounts to 6000 points. All your subsequent orders will be executed at the DIRECTOR price, i.e. at a 40% discount. The volume of these orders together with the volume of your Managers’, Consultants and Customers orders will form your group purchase volume. 2. The other way is to place a 4500 points order. Such an order will be executed at the Director price, i.e. at a discount of 40 %. All your subsequent orders will be executed at the Director price regardless of their point volume. The volume of the Director's order will be included in the superior Director's organization. The volume of all your subsequent orders together with the volume of your Managers', Consultants' and Customers' orders will form your group purchase volume. The number of Managers, Consultants and Customers on each level is not limited. The number of branches (organization's departments) created by one Consultant is also not limited.
Your profits and privileges as a Director: 1. Purchase of the Company products at the Director's price: at a 40% discount. 2. Profit from retail sales in the amount of 67 % of your buying price
How does the 67 % retail sales profit come about? Example: a product costs 100 conventional units. You buy it at a discount of 40 %, i.e. you pay 60 c.u., and sell it for 100 c.u. Your profit amounts to 40 c.u. which is equal to 67% of the 60 c.u. you paid for it. 3. Commission on purchases of your organization's Consultants. (See next Chart). The commission amounts to 7 % of the group purchase volume of your MANAGERS' organizations, to 20 % of the purchase volume of your CONSULTANTS’ and to 30% of your CUSTOMERS’ purchase volume. The payment of the commission is conditional on your having at least 100 points worth of personal purchases for a relevant month. This condition refers only to the commission. Failure to meet this requirement does not involve changes in status or discount rights. 4. Monthly bonuses for the work of your DIRECTOR’S organization.
The bonuses are calculated as percentages on the purchase volume basis of junior DIRECTORS’ organizations (GVU): The bonuses are given when the DIRECTOR’S monthly group purchase volume reaches at least 1,000 points. The DIRECTOR’S monthly group purchase volume includes purchase volumes of all MANAGERS, CONSULTANTS AND CUSTOMERS during a relevant month. Your DIRECTORS' purchase volumes as well as purchase volumes of their MANAGERS, CONSULTANTS AND CUSTOMERS are not included in your group volume.
There are additional ranks and bonuses for active Directors: 1. GROUP DIRECTOR - a Director with two functioning first generation Director branches. GROUP DIRECTOR receives additional 2 % from the 5th level. 2. MASTER DIRECTOR - a Director with four functioning first generation Director branches. MASTER DIRECTOR receives additional 1 % from the 6th level. 3. SILVER DIRECTOR - a Director with six functioning first generation Director branches. SILVER DIRECTOR receives additional 1 % from the 7th level. 4. GOLD DIRECTOR - a Director with eight functioning first generation Director branches. DIRECTOR receives additional 1 % from the 8th level.
GOLD
Functioning Director Branch A DIRECTOR BRANCH is considered as functioning if by the end of a month it has at least one DIRECTOR with at least 1000 group points. In January 1999 two additional ranks were introduced: DIAMOND DIRECTOR and PRESIDENT DIRECTOR
Bonuses for working Directors' organizations DIAMOND DIRECTOR
for a particular month is a DIRECTOR who has 12 qualified Directors, of whom at least six are MASTER DIRECTORS, provided the whole organization with its 8 levels made at least 333,000 Global points during the same month. DIAMOND DIRECTOR receives additional 0.5 % from the 9th and 10th levels of his/her organization.
PRESIDENT DIRECTOR
for a particular month is a DIRECTOR who has 12 qualified Directors of whom at least six are MASTER DIRECTORS, provided the whole organization with its 8 levels made at least 500,000 Global points during the same month. PRESIDENT DIRECTOR is entitled to a special bonus in the amount of 0.5% of the Company's annual points volume. This presidential bonus is given once a year. Example: 1. DIRECTOR A has met the requirements for the presidential bonus in 6 months of a calendar year. 2. DIRECTOR B met the requirements for the presidential bonus in 3 months of a calendar year. 3. DIRECTOR C met the requirements for the presidential bonus in 6 months of a calendar year. All in all, there are 18 candidates for the presidential bonuses: 3 + 6 + 9 =18. Consequently, an amount equal to 5% of the Company’s annual points volume will be divided into 18 parts of which: 1. DIRECTOR A will receive 6 parts 2. DIRECTOR B will receive 3 parts 3. DIRECTOR C will receive 9 parts The bonuses are given when the monthly purchase volume of a DIRECTOR’S organization (GVP) is at least 1,000 points.