7. Requirements for Home Office Tax Deductions *Home Business Tax Deductions Book $24.99 ebook $20.99 Attorney Stephen Fishman

8. The Estimated Value of Common Home Business Tax Deductions The following table list the 20 most common tax deductions, and the average amounts taken for each in 2007 by a sole proprietor business with annual earnings of $25,000 - $100,000. Source: Information on Expenses Claimed by Sole Proprietorships, Gov Accountability Office Add Up Your Potential Tax Savings $482 $182 $300 $1200 Meals & Entertainment 20 $201 $76 $125 $500 Sales Aids 19 $482 $182 $300 $1200 Demonstration Products 18 $844 $319 $525 $2100 Rent on equipment 17 $321 $121 $200 $800 Professional Fee 16 $1206 $456 $750 $3000 Supplies (other) 15 $522 $197 $325 $1300 Office Supplies 14 $603 $228 $375 $1500 Business Telephone 13 $723. $273 $450 $1800 Advertising/Bus Cards 12 $3136 $1186 $1950 $7800 Rent Payments 11 $1085 $410 $675 $2700 Repairs 10 $1126 $426 $700 $2800 Travel 9 $1085 $410 $675 $2700 General Maintenance 8 $121 $46 $75 $300 Association Fees 7 $844 $319 $525 $2100 Insurance 6 $603 $228 $375 $1500 Property Taxes 5 $1005 $308 $625 $2500 % of Home Utilities 4 $1929 $729 $1200 $4800 Depreciation 3 $3417 $1292 $2125 $8500 Mortgage Interest 2 $2613 $988 $165 $6252 Car & Truck Expenses 1 Total Federal Tax Saving Self-Employment Tax Saving Income Tax Savings 25% Bracket Average Amount Spent Expense

13. The Minimum Unit Sales Value of Unit Leaders When you teach all of your new recruits to sell and share at the time of the appointment 2 out of 10 will become Sales Leaders. *When you meet the EUL requirements your minimum unit value will exceed $390,000. $312,000 $12,000 10 $280,800 $10,800 9 $249,600 $9,600 8 $218,400 $8,400 7 $187,200 $7,200 6 $156,000* $6,000 5 $124,800 $4,800 4 $93,600 $3,600 3 $62,400 $2,400 2 $31,200 $1,200 1 Minimum Awards Sales Per Year Minimum Sales Per Camp # Unit Leaders $520,000 $20,000 5 $416,000 $16,000 4 $312,000 $12,000 3 $208,000 $8,000 2 $104,000* $4.000 1 Minimum Awards Sales Per Year Minimum Sales Per Camp # Advanced Unit Leaders $780,000 $30,000 2 $390,000* $15,000 1 Minimum Awards Sales Per Year Minimum Sales Per Camp # Executive Unit Leaders $1,040,000 $40,000 1 Minimum Awards Sales Per Year Minimum Sales Per Camp # Senior Ex Unit Leaders

14. Average Campaign Earnings By Leadership Title Advanced Unit Leaders $310* Unit Leaders $50* Senior Executive Unit Leaders $5,300* Executive Unit Leaders $1,110* What do you want to earn a year from now? What are you willing to do to achieve it? * These earnings have been calculated based on the average number of Representatives in each level and the total amount of bonuses paid out per level. Disclosure of these averages is not meant to predict income possibilities. Your personal experience may vary. Think big & calculate your earnings for the next 4 campaigns (60-Days) My total earnings from product sales will be? A. $___________ What will your total earnings be from your downline? B . $___________ My estimated earnings for the next 4 campaigns will be: (A + B x 4) $___________ # New 1 st Gen Appointments (4 camps) _________ C____ to C ____, 2009

16. Where Will I Go To Build My Business? Determine which zip codes or routes will yield the most contacts with people and identify the places that they gather. i.e. grocery, schools, churches, malls, special services, McDonalds, service stations, shopping centers, hotels, restaurants, day care, sporting goods stores, coffee shops, salons… Consider working a 50 mile radius. How well do you know your market. The web offers a lot of resources some or FREE some cost money. A maps will help you focus your time and efforts. www.zipcodemaps.com www.smarter.com Order more brochures for the new customers you will find.

19. A Leader is… Sales T raining is demonstrating, modeling, telling or showing Representatives (one-on-one or in small groups) how to complete an assigned task so they can fulfill their roles and responsibilities to the customers. D eveloping others is providing varied learning experiences to engage Sales Leader (one-on-one or in small groups) to help them progress in their career in Avon. Although “development” as a generic term includes “training”, we are assigning the term “Training” to Representatives and “Development” to Sales Leaders. Note: PATD are activities that are conducted by DSMs and Sales Leaders. 3 Training Contacts to help you develop President’s Club Members PC HS DHM PCO IN 4 Development Contacts to help you Cultivate Sales Leaders at all titles UL AUL EUL SEUL “ Someone who can get a lot of people to do a “few” things consistently!”

21. Leadership Performance Report Pasadena – District 1234 Name: Jane Winters Agreement Date: C”/08/11 Campaign 15, 2008 This New Representative joined Leadership and got her first recruit in C11. She met the 3 – performance requirements to earn the Fast Start Bonus in C14, earning $200. She advanced her title to Unit Leader in C14 and will received her first Leadership Bonus in C15! Jane’s check is double the size of most first checks because she earned the Fast Start bonus! Jane went from 100% activity in C11 & C12 to 80% in C13 to 85% in C14 and a low of 42% in C15. I am sure she was focused on getting the Fast Start bonus and delivering her largest personal order in C14 which affected her follow-up with her Downline. The success story here is Jane recruited 7 in her first four campaigns and she was able to sell $1,846 in her first six campaigns. She earned her Avon Pin, achieved Unit Leader, earned the Fast Start Bonus and got her first Avon Check, all in her first three months! Jane’s mentor also received the mentor bonus for helping her achieve success! Can you develop a “UNIT LEADER” in four campaigns?

22. Leadership Performance Report Pasadena – District 1234 Name: Brenda Shell Agreement Date: C”/00/05 Campaign 15, 2008 Brenda is an Established Representative , who already knew how to sell. She made a decision to build a unit and because of her selling skills the sales volume of her unit is twice what a new Recruit would achieve with a new Downline. This is the only business that I know, where you can start earning immediately and when you consistently add buyers, sellers and a few recruiters to your business unit, your earnings can increase every 90-days! C10 $19.18 = Leadership Bonus Check C12 $148.14 = Leadership Bonus Check An Increase in one month of $128, which will continue to grow… Because Brenda joined Sales Leadership she increased her earnings by $593 (+37%) over the last 90-days because she is now selling at the Honor Society level and she’s teaching other to sell and share Avon, as well. Who in your Downline has strong selling skills that you can mentor and share the Leadership Opportunity with? ________________________________________________________________________________________________________________________________________________________________________________________________

23. Leadership Performance Report Pasadena – District 1234 Name: Carol Crump Agreement Date: C”/96/21 Campaign 15, 2008 Carol is a great Advanced Unit Leader her Downline sold $119,938 in the last six campaigns. That’s an average of $17,134 a campaign. Carol’s business is tracking to exceed an estimated $519,731 by the close of the year. She’s earning on average $2236 a month from selling, sharing and showing others how to be successful. At this rate if Carol remains at the Advanced Unit Leader level her estimated earnings could be $26,827 a year. Carol can easily increase her earnings by finding 2 more Unit Leaders to advance to the Executive Unit Leader’s title. Carol has learned how to inspire 80% - 85% of her Downline to send orders every two-weeks. WOW! She understands the importance of following up with everyone, every campaign. Blockbuster’s Video would have to rent out 4,284 DVD’s in two weeks to match the average campaign sales of $17,134 that Carol’s business is generating! Are you ready to advance your title to the Advanced Unit Leader’s Title? 85% Active

24. Leadership Performance Report Pasadena – District 1234 Name: Gwen Blue Agreement Date: C”/97/15 Campaign 15, 2008 Gwen, Executive Unit Leader personally sold $12,471 in Avon products in 90-days. Gwen earned $4,652 from her downline and $6,235 from product sales bring her total earnings for the three months to $10,887. Gwen has trained her Downline to generate an average of $30,700 a campaign and she has figured out how to get 80% of her Downline to submit orders every two-weeks, this is a sign of a strong leader. In additions to her personal sales, prospecting and recruiting Gwen earned two mentor bonuses for developing 2 new Unit Leaders over the last three months. She plans to use her mentor bonuses to cover the cost of going to Avon’s National Leadership Conference. Now you do the math… $________ Average Product Earnings (6 Camps) $ ________ Average Leadership Bonuses (6 Camps) $ ________ Average Earning Per Month x 12 Months = $_________ Estimated Earnings Per Year! Our most Successful Sales Leaders Sell Share and Show others how to achieve success! A Great Leader

26. Understanding Inertia When you start to build your Avon Downline, you will experience a lot of inertia. Only if and when you move through that inertia will you experience the true value and rewards of being a successful Unit Leader. Inertia and getting started is like pushing a stalled car. It takes a lot of effort to get the car moving. Once in motion, however, little energy is required to keep it moving. It is possible to push your group’s size and activity through its inertia and into momentum in a way that is so powerful your sales organization’s sustained growth continues regardless of what you do. It’s call massive action. Massive Action is you hitting the ground running as soon as you find the first person to share Avon with. It takes time and a substantial effort, but once you find your leaders, your Downline momentum will grow into an incredible business unit, like many of our successful Executive Unit Leaders around the world. Maximum Effort Lowest earnings with 15+ Recruits at Unit Leader! Critical Mass Residual Income begins with 50+ Recruits at Advanced Unit Leader! Least Effort Maximum Results with 100+ Recruits Executive Unit Leader!