B ABY BOOM The first time the entire Baby Boom generation is impacting a single market at the same time! Fast Food Fast Cars Rock ‘n Roll Paul Zane Pilzer, The Wellness Revolution , 2006
<ul><li>Baby boomers … don’t want to grow old… </li></ul><ul><li>Today, 50 is the new 30 </li></ul><ul><li>And 80 is the new 50. </li></ul>Aging in America Boomer demands are COMPLETELY PREDICTABLE!
Exclusive Advantages! Nu Skin Enterprises is perfectly positioned to take advantage of the booming Anti-Aging Market!!!
Skin Care <ul><li>Programmable tool with PATENTED self-adjusting galvanic currents and interchangeable heads for FACE, SCALP , and BODY . </li></ul><ul><li>Works synergistically with specially formulated products to assist in the transport of key ingredients that deliver REVITALIZING, RESTORATIVE , and REJUVENATING benefits. </li></ul>Nu Skin ® Galvanic Spa ™ II System <ul><li>Effective – Shown to enhance active delivery </li></ul><ul><li>for up to 24 hours post-galvanic treatment. </li></ul><ul><li>Affordable – Spa quality treatment at a fraction of the cost </li></ul><ul><li>Convenient – Easy-to-use in the comfort of your home </li></ul>
Spa Industry <ul><li>131 Million Spa Visits in 2005 in the US* </li></ul><ul><li>Globally Spas generate over $40 Billion in Revenue** </li></ul><ul><li>Average spa client spends $143/ visit** </li></ul><ul><li>Similar spa treatments range from $100-$400 </li></ul><ul><li>Nu Skin Galvanic Spa Face Treatment cost $6 </li></ul>*Source: International Spa Assoc. ** Source: Forbes
Galvanic Spa – The Results "I have been treating my left hand only and it is just amazing. Sometimes I ask people what they notice when they look at my hands, and everyone tells me that the left hand looks better." Helga Biallas, Executive
Galvanic Treatments at Home Enhances active delivery 70% or more up to 24 hours
Skin Care Tru Face Essence Ultra Attack Aging Featuring Ethocyn® <ul><li>Ethocyn®, a patent pending anti-aging ingredient, that’s clinically proven to restore elastin to youthful levels. </li></ul><ul><li>CoQ10 to promote cellular energy while preventing elastin degradation </li></ul><ul><li>A complete patent-pending antioxidant network, prevents elastin breakdown </li></ul><ul><li>Tegreen 97® is clinically proven to help protect against the degradation of elastin </li></ul>
Anti-Aging – Nutrition Products Guaranteed to Raise Your Score <ul><li>MEASURES </li></ul><ul><li>18 Carotenoid Antioxidants in Real Time </li></ul><ul><li>Personal Score shows overall Antioxidant Health Status </li></ul><ul><li>2 US Patents with 5 Patents Pending and 6 International Patents Pending </li></ul><ul><li>1 st comprehensive Multi-vitamin Supplement with Nano Technology on the Market </li></ul>
Personal Stories How… These Products can Change your Life!
The Company <ul><li>23 Year Track Record </li></ul><ul><li>D&B 5A-1 Rating </li></ul><ul><li>Operating in 46 Markets </li></ul><ul><li>Over $600 Million in Assets </li></ul><ul><li>Publicly Traded on the NYSE (NUS) </li></ul>For more information on Nu Skin Enterprises, please visit our website at www.nuskinenterprises.com
The Company Most Innovative Company , 2005 Best Corporate Social Responsibility Program , 2007 American Business Awards
NSE Pays BIG! <ul><li>Last year NSE paid its distributors </li></ul><ul><li>Nearly $500 </li></ul><ul><li>Million Dollars! </li></ul>For a complete summary of distributor earnings/bonuses paid to distributors at all levels within the Sales Compensation Plan, please contact the company at 800-487-1000 or see the end of this presentation.
Average Yearly Incomes $5 Billion Paid in Commissions Since Inception There are no bonuses paid for recruiting. All bonuses are paid only when products are sold. For a complete summary of distributor earnings/bonuses paid to distributors at all levels within the Sales Compensation Plan, please contact the company at 800-487-1000 or see the end of this presentation.
Timing - USA Window of Opportunity Small to Big
Timing - Worldwide Window of Opportunity Big to Bigger
Key Factors <ul><li>Favorable Market Trends </li></ul><ul><li>Exclusive Products and Innovative Technologies </li></ul><ul><li>Rock Solid Company </li></ul><ul><li>Leverage for Time and Income </li></ul><ul><li>Perfect Timing, Timing, Timing! </li></ul>
How To Get Started There are no product purchases required to become a distributor. There are no bonuses paid for recruiting. All bonuses are paid only when products are sold. For a complete summary of distributor earnings/bonuses paid to distributors at all levels within the Sales Compensation Plan, please contact the company at 800-487-1000 or see the end of this presentation.
<ul><li>NU SKIN ENTERPRISES, INC. </li></ul><ul><li>DISTRIBUTOR COMPENSATION SUMMARY </li></ul><ul><li>Company Overview </li></ul><ul><li>Nu Skin Enterprises, Inc. (together with its affiliates, the “Company”) is a global direct selling company that operates in more than 40 countries throughout North and South America, Asia and Europe. The Company operates in three divisions: (1) the Nu Skin division markets premium quality skin care and personal care products; (2) the Pharmanex division is a science-based developer of nutrition products; and (3) the Big Planet division markets and distributes Internet, technology, ebusiness tools and digital photography products. </li></ul><ul><li>Distributors </li></ul><ul><li>The Company markets its products through a network of independent distributors. For purposes of this summary, an “Active Distributor” is a distributor who placed an order for products, promotional materials or services or renewed their distributorship during the most recent three-month period. In the United States, the Company had an average of 52,887 Active Distributors during 2006. </li></ul><ul><li>Compensation </li></ul><ul><li>There are two fundamental ways in which a distributor can earn compensation: </li></ul><ul><ul><li>Through retail markups on sales of products purchased at wholesale prices; and </li></ul></ul><ul><ul><li>Through commissions (sometimes called bonuses) paid on one’s product sales and the sales of other distributors in one’s downline sales network. </li></ul></ul><ul><li>As with any other sales opportunity, the compensation earned by distributors varies significantly. The cost to become a distributor is very low. People become distributors for various reasons. Many people become distributors simply to enjoy the Company’s products at wholesale prices. Some join the business to improve their skills or to experience the management of their own business. Others become distributors, but for various reasons, never purchase products from the Company. Consequently, many distributors never qualify to receive commissions. </li></ul><ul><li>Generating meaningful compensation as a distributor requires considerable time, effort, and commitment. This is not a get rich quickly program. There are no guarantees of financial success. </li></ul>
Retail Markups Distributors can buy Nu Skin, Pharmanex and Big Planet products from the Company at wholesale prices for resale to customers or for personal consumption. Some Big Planet products are services, such as Internet access, on which there is no retail mark-up earned by distributors. In addition, some Big Planet products are lower margin products offered through Internet mall affiliates. Consequently, lower levels of commissions are paid on the sale of such products. The Company’s suggested retail markup is 30% on most of its personal care and nutrition products. However, distributors are free to set their own selling price and may personally consume some of the products they purchase. As a result, the Company currently neither provides an estimate of average income from retail sales nor includes distributor retail income in its average commission information. Commissions Distributors can also earn commissions based on the sale of products by a distributor and his/her downline of sponsored distributors in all markets where the Company does business. The Company also sells promotional materials that do not generate commissions to distributors. In 2006 the Company paid approximately $480,136,000 in commissions and sales compensation globally. In the same period, the Company paid approximately $83,712,937 in commissions to distributors residing in the United States. The following table shows the average commissions paid in 2006 to U.S. distributors at the various levels of the Company’s Sales Compensation Plan, the average percentage of total Active Distributors and the average percentage of Executive-and-above distributors that earned commissions at each level. These figures do not include retail markup income.
The average commission paid to U.S. Active Distributors each month was $132.21, or $1,586.51 on an annualized basis. In 2006, the average monthly commission paid to U.S. Active Distributors who earned a commission check was $807.00, or $9,683.00 on an annualized basis. Note that these figures do not represent a distributor’s profit, as they do not consider expenses incurred by a distributor in promotion of his/her business and do not include retail markup income. On a monthly basis, an average of 16.38% of U.S. Active Distributors earned a commission check  Active Distributors represented an average of 35.54% of Total Distributors.  If you have any questions concerning this information, please contact Distributor Support at (800) 487-1000.  This number is calculated by adding the average percentage of Active Distributors in the above table.  This percentage is obtained by taking the total average of monthly actives and dividing it by the total average of Distributors on a monthly basis. “Total Distributors” includes all U.S. Distributors who either signed an agreement or renewed their distributorship during 2006 irrespective of their purchasing products, promotional materials or services or earning commissions. Title Monthly Average Commission Income at Each Level for 2006 Annualized Commissions  Average Percentage of Active Distributors  Average Percentage of Executive-and-above level distributors Active Distributor Earning a Check (Non-Executive) $ 44.00 $ 528.00 9.01% N/A% Qualifying Executive 160.00 1,920.00 1.39 N/A Executive 362.00 4,344.00 3.76 62 Gold Executive 628.00 7,536.00 1.05 18 Lapis Executive 1,307.00 15,684.00 .60 10 Ruby Executive 2,925.00 35,100.00 .17 3 Emerald Executive 6,040.00 72,480.00 .10 2 Diamond Executive 10,423.00 125,076.00 .10 2 Blue Diamond Executive 43,752.00 525,024.00 .20 3