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Art. Nr.: 92503-001




YOUR CHANCE TO CHANGE
 LR Health & Beauty Systems Pty Ltd – Australia & New Zealand        AU
  Unit 1& 2, Keilor Park Drive Tullamarine Victoria 3043 Australia
                         www.LRworld.com
CONCEPT TO SUCCESS




T I P S FOR YOUR lR BUSINESS   l R Ma R kE T I N g Pl aN
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. Abend         Thomas Heursen
Chief Executive Officer   Global Sales Director
Your Partner LR                  4 – 13

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




The LR Marketing Plan           14 – 27

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




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




1. The First Steps with LR      34– 37

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




Service                         38 – 49

Contacts &
LR Locations Worldwide          38 – 39
Questions & Answers             40 – 41
Glossary                        42 – 44
Terms of Delivery & Payment          45
Success Planner                 46 – 47
Your Partner LR                                                                                         4




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          Advantages for end-consumers:
involved in direct sales; together they generate         • Independence from business and store hours
sales of over 120 billion US$ annually. A trend          • Comfort aspect of home shopping
that is sharply on the rise.                             • High quality of advice and support

It’s no wonder that direct sales is a globally
booming industry. The idea behind it is as               Advantages for LR partners,
simple as it is ingenious: Products or services          among other factors:
are sold by independent business partners.               • Long-term additional or principle income
That saves cost-intensive advertising measures,          • Flexible working hours
expensive licences and fees for distributors:            • Minimal start-up capital for founding a
money that is invested by LR in the development            commercial enterprise
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.




The LR product range: innovative and prize-winning merchandise
Your Partner LR   5




              70
People in                 Number of business partners worldwide
millions      60
                          Around ¾ lock-in a solid extra income.
              50
                          ¼ have succeeded in becoming fully independent.


              40


              30


              20


              10


               0
                   1988           1991         1993       1995           2000        2004          2007



            120
                          Sales trend figures worldwide
Sales trend
figures     100
worldwide
in billion   80
US$
              60


              40


              20


               0
                   1988           1991         1993       1995           2000        2004          2007



            160

Percentages               Sales trend comparison
            150
                            Direct sales –   Retail
            140
                          Dynamic growth in direct sales as opposed to
                          stagnation in retail
            130


            120


            110


            100
                   1995                        2000                   2004                         2007

                                                           Source: Branchenreport Direktvertrieb, 2009
4




               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.
                                                                                               2005
                25 years of success are reflected in the following figures:                  turnover   *
                                                                                             308 M €


                                                                                2002
                                                                              turnover   *
                                                                              175 M €

                                                                 1997
                                                               turnover
                                                               141 M €    *




                                                  1994
                                                turnover   *
                                                120 M €




  1985
turnover   *
0.4 M €

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

               * Based on SRP
Your Partner LR   7




                 2009
               turnover    *
               371 M €




  2008
turnover
           *
335 M €


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



                          Passion




                         Trust




                          Responsibility
Your Partner LR   9




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




                                     Quality products
                                    “Made in Germany”

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




                                    Cooperative ventures with
                                    top names and artists

                                    – 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.




Marcus Schenkenberg & Leona Lewis
Your Partner LR   11




Fair, transparent
marketing plan

– 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.




Unique car concept
– 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.




Training and service
– 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, and
 much, much more.
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.




              Cooperative
                                  Fair,
Top quality    ventures
                              transparent      Unique      Top training
 Made in       with top
                               marketing     car concept   and service
 Germany      names and
                                  plan
                artists




                               Passion
                                Trust
                            Responsibility
Your Partner LR   13




  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




                             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 %




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




 Bonuses for Own Sales and Group Sales
 What is it?                                         How does it work?
 A reward for developing the business.               LR Health & Beauty Systems offers sales-
                                                     related bonuses. The values of the Business
                                                     Volume (BV) and Point Value (PV) are
 Who is eligible?                                    significant for the calculation of bonuses and
                                                     indispensable for the international commission
 Every partner who reached at least 100 point        calculation. To determine the bonus level, all
 value in Personal Sales in a month’s time, and      sales transacted within a calendar month are
 at least 250 Point Value in Total Sales.            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.


 Bonus table:

            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%



                                                     Example 2: Higher personal sales,
                                                     i.e. through product sales to friends
 Example 1: Personal sales only:                     and relatives


  Purchase for                            $ 400.00    Purchase for                             $ 1,000.00
  Sales for                               $ 560.00    Sales for                                $ 1,400.00

  Profit margin from                                  Profit margin from
  Product sales                           $ 160.00    Product sales                            $ 400.00

  $ 400 net purchase price =400 BV = 400 PV           $ 1000 net purchase price = 1000 BV = 1,000 PV


  400 PV      3 % bonus                               1,000 PV      9 % Bonus
  3% bonus on 400 BV                      $ 12.00     9% bonus on 1000 BV                       $ 90.00

  Total earnings:                         $ 172.00    Total earnings:                          $ 490.00




All examples are calculated before tax.
To simplify the calculations we assume that $1 = 1BV = 1PV and 40% margin.
The LR Marketing Plan   15




Example 3: Development of a small
sales organization

Instead of selling LR products to friends, family       Notes:
members and colleagues, you can also offer              • A has achieved group sales of 5,000 PV. By
them the possibility of becoming LR partners              so doing, A has reached the 14% bonus
themselves and thereby profit from the                    level; without B, C, D and E he would have
chances that the LR business has to offer.                remained in the 9% level.

What’s in it for you?                                   • B, C, D and E each achieved 9%. As A is in
When you sponsor a new partner, you increase              the 14% bonus level, there is a 5%
your LR business prospects enormously, since              difference between A and each of his
you also have a stake in their sales: You can             partners. A receives this supplementary 5%
achieve a turnover of 1,000 PV per month,                 as a difference bonus to the respective
which is equal to 1,000 BV.                               turnovers achieved by B, C, D and E.


                                                         Total earnings:
 Your earnings:
                                                         Profit margin                         $ 400.00
 Profit margin                          $ 400.00         Bonus (14% from 1,000 BV)             $ 140.00
 Bonus (9% from 1,000 BV)               $ 90.00          Bonus difference for B,C,D,E
                                                         (4 × 5% from 1,000 BV)                $ 200.00
 Total                                  $ 490.00
                                                         Total                                 $ 740.00
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:




                                             14%
                                             1,000 PV
                                                                 A
                                             1,000 BV

    9%                                                                                       9%
                      5% difference = $ 50                           5% difference = $ 50

              B                                                                                        C
  1,000 PV                                                                                  1,000 PV

  1,000 BV                                                                                  1,000 BV


    9%                                                                                       9%
                      5% difference = $ 50                           5% difference = $ 50

              D                                                                                        E
  1,000 PV                                                                                  1,000 PV

  1,000 BV                                                                                  1,000 BV
Leader Bonus

What is it?
A reward for the excellent support provided for
the sales organization, and an incentive on the
way to becoming a manager.
                                                   How does it work?
Who is eligible?                                   The leader bonus is intended as a reward for
                                                   the support of the structure and to help with
Every bonus eligible partner with at least 8       the development of “healthy” lower tiers.
bonus lines and:                                   Therefore, the leader bonus is paid on the
                                                   basis of the entire lower tiers, but not on own
                                                   sales. The leader bonus is clearly
• 16,000 PV Group Sales or                         achievement-oriented, and increases in
                                                   proportion to turnover.
• with 1 direct 21%er line and 12,000 PV
  side volume or

• minimum of 2 direct 21%er lines

Example 4: Leader bonus without direct 21%er

                                                          A
                                         21%
                                        1,000 PV


    14%        B                        1000 BV
                                                                                      14%          C
   4,000 PV            7% difference                                7% difference    4,000 PV
                         = $ 280                                      = $ 280

   4,000 BV                                                                          4,000 BV

    14%        D                                                                      14%          E
                       7% difference                               7% difference
   4,000 PV              = $ 280                                     = $ 350         5,000 PV


   4,000 BV                                                                          5,000 BV

    6%         F       15% difference
                          = $ 75
                                                                                       6%          G
                                                                   15% difference
    500 PV                                                            = $ 75          500 PV


    500 BV                                                                            500 BV

     6%        H                                                                       3%          I
    500 PV                                                                            250 PV
                       15% difference                              18% difference
                          = $ 75                                      = $ 75
   5000 BV                                                                            250 BV



  1. Personal Bonus of 21% on 1000 BV                                               = $ 210.00
  2. Difference Bonus = 3 × $ 280 + $ 350 + 3 x $ 75 + $ 45                         = $ 1,460.00
  3. Leader Bonus of 3% on 18,750 BV                                                = $ 562.50

  Total earnings (without profit margin)                                            = $ 2,232.50
The LR Marketing Plan   17
21%

Special Bonus                                   Special Bonus
                                                7%-10%                                  Side Volume

What is it?
A reward for the development of direct 21%
levels and for the motivation of new leaders.         21%               6%         9%      12%


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           Side Volume              Special bonus
 21% levels
 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).
The LR Marketing Plan   19




Example 5: Special Bonus for direct 21%er
                              21%
                                              1,000 PV
                                                                      A
      11%                                     1000 BV
                                                                                                  14%
               B                                                                                                C
  2,000 PV            10% difference                                       7% difference =       4,000 PV
                        = $ 200                                                $ 280
  2000 BV                                                                                        4000 BV


      14%                                                                                         21%
                      7% difference              4 x 15% Difference         7% special

               D                                                                                                E
  6,000 PV              = $ 420                       = 4 x $ 75             bonus               12,000 PV

  6000 BV                                                                                        12000 BV
                                       4 x 6%er with total of
                                             2000 PV                  FG
                                             2000 BV                  H I
 1.   Personal Bonus of 21% on 1,000 BV                                                      =   $   210.00
 2.   Difference Bonus = $ 200 + $ 420 + 4 x $ 75                                            =   $   1,200.00
 3.   Leader Bonus of 3% on 16,000 BV                                                        =   $   480.00
 4.   7% Special Bonus on 21%er sales (12,000 BV)                                            =   $   840,00

 Total earnings (without profit margin)                                                      $ 2,750.00


Example 6: Special Bonus for two direct 21%er
                              21%
                                              1,000 PV
                                                                      A
      21%                                                                                         21%
                                              1,000 BV

               B                                                                                                C
 12,000 PV                                                                                       12,000 PV

 12,000 BV                                                                                       12,000 BV




               D                                                 E                                              F
  Special Bonus for A:
  a) if D + E + F together achieve sales of                  b) if D + E + F together achieve sales of
     4,000 PV, but less than 12,000 PV: 7.5%                    over 12,000 PV: 7.5% special bonus
     special bonus on 50% of the cumulated                      on the cumulated sales of direct 21%er,
     sales of direct 21%er, i.e.                                i.e. 7.5% on 24,000 BV     = $ 1,800.00
     7.5% x 50% x 24,000 BV         = $ 900.00




  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)
Depth Bonus
What is it?                                            How does it work?
A reward for the successful development of             Entitlement for a depth bonus exists in the
leaders.                                               respective month in which the organization
                                                       leader has achieved and upheld the set
                                                       amount of direct 21% lines, as specified in the
Who is eligible?                                       table.

Every organization leader who has achieved at
least 4 X direct 21% lines.




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

                                         A
                                       (SOL)

                             B           C                D            E
                          20,000 PV   20,000 PV        20,000 PV    20,000 PV
                          10,000 BV   10,000 BV        10,000 BV    10,000 BV




                             F           G                H            I
                          20,000 PV   20,000 PV        20,000 PV    20,000 PV    80,000 PV
                          10,000 BV   10,000 BV        10,000 BV    10,000 BV

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

 Depth bonus                                                                        = $ 1,600.00



 You will also receive:                 +   Personal Bonus
                                        +   Difference Bonus
                                        +   Leader Bonus (in case of 8 bonus lines)
                                        +   Special Bonus (with required side volume)
The LR Marketing Plan         21




Example 8: Depth bonus with 10 direct 21% levels


                                                   A
                                                 (POL)

   B            C           D           E              F            G          H           I            J           K
20,000 PV    20,000 PV   20,000 PV   20,000 PV   20,000 PV      20,000 PV   20,000 PV   20,000 PV   20,000 PV    20,000 PV
10,000 BV    10,000 BV   10,000 BV   10,000 BV   10,000 BV      10,000 BV   10,000 BV   10,000 BV   10,000 BV    10,000 BV




   L            M           N           O              P            Q          R           S            T           U
20,000 PV    20,000 PV   20,000 PV   20,000 PV   20,000 PV      20,000 PV   20,000 PV   20,000 PV   20,000 PV    20,000 PV   200,000 PV
10,000 BV    10,000 BV   10,000 BV   10,000 BV   10,000 BV      10,000 BV   10,000 BV   10,000 BV   10,000 BV    10,000 BV



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

 Depth bonus                                                                                        = $ 6,000.00

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



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      President        President        President      President       President
            Bonus          Bonus            Bonus            Bonus          Bonus           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%
Top Depth Bonus
What is it?                                         How does it work?
A reward for the successful development of          Silver and Platinum is differentiated in the
managers.                                           same way as the Depth Bonus. The top depth
                                                    bonus is paid for levels where partners already
                                                    receive Depth Bonus (Silver and Platinum
Who is eligible?                                    Bonus) through the next organization leader
                                                    with commensurate top depth bonus
Every Organization Leader who has developed         qualification. If the partner has adequate
at least 12 bonus lines, at least 4 of which are    qualification (starting with platinum
direct 21% lines and who has a partner in his/      organization leader) for Top Silver and Top
her downline who receives Depth Bonus.              Platinum Bonus, he/she receives of course
                                                    both Top Depth Bonuses (Silver and Platinum
                                                    Top Bonus)




                                       direct 21%        Percentage of          Percentage of
          Qualification
                                          lines           Silver Bonus         Platinum Bonus

         *****Star President               12                 2.00%                 1.00%

         ****Star President                12                 2.00%                 1.00%


         ***Star President                 12                 2.00%                 1.00%

         **Star President                  12                 1.75%                 1.00%

         *Star President                   12                 1.50%                 1.00%

         President                         12                 1.25%                 0.75%

         Vice-President                    12                 1.00%                 0.50%

         Platinum-OL                       10                 0.75%                 0.25%

         Gold-OL                            7                 0.50%

         Silver-OL                          4                 0.25%
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

                                                                                       A
                                                                                     (SOL)
 Silver Bonus for A on 80,000 PV
 2% bonus on 80,000 BV = $ 1,600.00
                                                                     B                    C               D               E
                                                                 20,000 PV                            20,000 PV       20,000 PV
 + Top Silver Bonus on 180,000 PV                                10,000 BV            (SOL)           10,000 BV       10,000 BV
 (J, K, L) 0.25 % on 180,000 BV = $ 450.00

 Total depth bonus = $ 2,050.00                                       F                   G               H               I        80,000 PV
                                                                 20,000 PV           20,000 PV        20,000 PV       20,000 PV
                                                                 10,000 BV           10,000 BV        10,000 BV       10,000 BV
  Your recieve also        + Personal Bonus
                           + Difference Bonus
                           + Leader Bonus                                        J               K                L               180,000 PV
                           (in case of 8 bonus lines)                       80,000 PV         60,000 PV       40,000 PV
                           + Special Bonus                                  40,000 BV         30,000 BV       20,000 BV

                           (with required side volume)



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


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



 B         C           D           E           F            G           H             I           J           K
        20,000 PV   20,000 PV   20,000 PV   20,000 PV    20,000 PV   20,000 PV   20,000 PV    20,000 PV   20,000 PV
(POL)
        10,000 BV   10,000 BV   10,000 BV   10,000 BV    10,000 BV   10,000 BV   10,000 BV    10,000 BV   10,000 BV



           L          M            N           O            P           Q            R            S           T           U       200,000 PV
        20,000 PV   20,000 PV   20,000 PV   20,000 PV    20,000 PV   20,000 PV   20,000 PV    20,000 PV   20,000 PV   20,000 PV
        10,000 BV   10,000 BV   10,000 BV   10,000 BV    10,000 BV   10,000 BV   10,000 BV    10,000 BV   10,000 BV   10,000 BV



                       V          W            X                                                                                  180,000 PV
                    80,000 PV   60,000 PV   40,000 PV
                    40,000 BV   30,000 BV   20,000 BV


 Silver Bonus + Platinum Bonus for A
 on 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
Annual Bonus
What is it?                                                   How does it work?
A reward for successful work in a calendar                     Starting from 1,000,000 PV
year and a kind of additional “Christmas                                                                      1.00%
                                                               Annual Sales
Bonus”.
                                                               Starting from 2,000,000 PV
                                                                                                              1.50%
                                                               Annual Sales
Who is eligible?                                               Starting from 3,000,000 PV
                                                                                                              2.00%
                                                               Annual Sales
Every organization leader who meets the
                                                               Starting from 4,000,000 PV
following requirements:                                                                                       2.25%
                                                               Annual Sales
1.) Achieving a minimum of 1,000,000 PV
    + total sales                                              Starting from 5,000,000 PV
                                                                                                              2.50%
2.) The strongest lines accounts for max. 60%                  Annual Sales
    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




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
The LR Marketing Plan   25
LR Career Ladder




                                                                                                                                  Organization
                                                                                                                                  Leader
                                                                                                           Team                   Qualification
                                                                                                                                  6 months in
                                                                                                           Leader                 succession 12
                                                                                                                                  bonus-eligible lines
                                                                                      Junior Team Qualification                   with 24,000 PV
                                                                                                  3 months in
                                                                                      Leader      succession 6
                                                                                                                                  total sales or
                                                                                                                                  12,000 PV residual
                                                                                                           bonus-eligible lines   sales at 1 × 21%
                                                                 Manager              Qualification        and 16,000 PV          lines
                                                                                      12,000 PV group      total sales
                                                                 Qualification        sales, 250 PV own
                                                                 8,000 PV group
                                                                                                                                  Bonus
                                           Junior                                     sales and 6 bonus-   Bonus                  Special Bonus,
                                                                 sales, 250 PV own    eligible lines       leader bonus –         Leader Bonus, –
                                           Manager               sales and 4 bonus-                        bonus on personal      bonus on personal
                                                                 eligible lines                            sales
                                           Qualification                              Bonus                                       sales
                    11%                    4,000 PV group                             bonus manager
                                                                 Bonus                bonus – bonus on     Extras
                    Qualification          sales, 250 PV own
                                                                 bonuses on own
                                                                                                                                  Extras
                                           sales and 3 bonus-                         personal sales       Team leader day,       LR Mercedes Benz
                    2,000 PV total sales                         sales
                                           eligible linesl                                                                        Concept Level 1,
                    Bonus                                                             Extras                                      Organization
3 – 9%                                                           Extras              VW Polo Car                                  Leader Academy
                    bonus on Personal      Bonus                 VW Polo Car Concept
                                                                                     Concept
Qualification       sales and group        bonus on              Aus $ 200/Nz $ 250
                                                                                     Aus $ 300/Nz $ 375
250 – 1,000 PV      sales                  Personal sales
                                                                                     Junior Team Leader
total sales
                                                                                     Academy
                    Extras                 Extras
Bonus               extra quick start      VW Polo Car Concept
Bonus on Personal   bonus                  Aus $ 100/Nz $ 125
Sales and Group                            Junior Manager
sales                                      Academy,


 Estimated
 Annual earnings                              $ 3,200 to           $ 7,000 to           $ 14,000 to          $ 14,000 to            $ 28,000 to
                                               $ 8,200              $ 14,000             $ 35,000             $ 49,000               $ 63,000
27




                                                                                                                               Star
                                                                                                                               President
                                                                                                                               * to *****
                                                                                                          President
                                                                                                                               Qualification
                                                                                                          Qualification        6 months in
                                                                                                          6 months in
                                                                                   Vice                   succession 12x
                                                                                                                               succession 12 ×
                                                                                                                               21%-Lines out of
                                                                                   President              21% lines, there     which 3 must be
                                                                                                          from 2 platinum OL   BOL or
                                                               Platinum     Qualification                 lines or 12x 21%     12 × 21%-Line
                                                                                                          lines + 2,000,000
                                                               Organization 6 months in 12x
                                                                            succession                    PV sales,
                                                                                                                               + 4,000,000 to
                                                                                                                               12,000,000 PV
                                                               Leader       21% lines, whereas            therefrom at least   Atleast sales of
                                           Gold                                    3 silver OL lines or   1,200,000 residual   2,400,000 to
                                           Organization Qualification              12x 21% lines +        group sales          7,200,000
                                                        6 months in                1,000,000 PV                                Sidevolume
                                           Leader                                                         Bonus
                       Silver                           succession 10x             sales
                                                               21% lines                                  President bonus,     Bonus
                       Organization Qualification                                  Bonus                  top platinum         President bonus
                                    6 months in
                       Leader                                  Bonus               top platinum           bonus,               Top-Platinum
Bronze                              succession 7x              top platinum        bonus, platinum        platinum bonus,      Bonus
                                           21% lines +                             bonus, top silver      top silver bonus,
Organization Qualification                 12,000 PV or 8
                                                               bonus, platinum
                                                                                                          annual bonus,
                                                                                                                               Platinum Bonus
             6 months in                                       bonus, top silver   bonus, annual                               Top-Silver bonus
Leader       succession 4x
                                           and more 21%        bonus, annual       bonus, silver          silver bonus,        Annual Bonus
                                           lines                                   bonus, special         special bonus,
                       21% levels +                            bonus, silver                                                   Silver Bonus
Qualification          12,000 PV or 5                          bonus, special      bonus, manager         manager bonus –      Special Bonus
6 months in                                Bonus               bonus, manager      bonus – bonus on       bonus on personal
                       and more 21%                                                                                            Leadership Bonus
succession 2x 21%                          top silver bonus,                       personal sales         sales
                       levels                                  bonus, – bonus on
lines + 12,000 PV                          annual bonus,
                                           special bonus,
                                                               personal sales                                                  Extras
residual sales or 3x   Bonus                                                       Extras                 Extras               LR Porsche
21% lines                                  manager bonus –
                       Top Silver Bonus,                       Extras              LR Porsche             LR Porsche           Concept
                                           bonus on personal                       Concept                Concept
                       Annual Bonus,                           LR Porsche                                                      Events & Trips
Bonus                                      sales                                   Events & Trips         Events & Trips
                       Special Bonus,                          Concept
Annual Bonus,                                                  Events & Trips
                       Leader Bonus –
Special Bonus,                             Extras
                       bonus on personal
leader bonus, –                            LR Porsche
                       sales
bonus on personal                          Boxster or
sales                                      Mercedes CLK
                                           Concept Level 3
                       Extras
Extras                 LR Mercedes Benz
LR Mercedes Benz       Concept Level 2
Concept Level 1,
Silver OL Academy




  $ 56,000 to            $ 90,000 to        $ 280,000 to            above               above                  above               above
   $ 100,000              $ 280,000          $ 440,000            $ 460,000           $ 900,000             $ 1,200,000         $ 1,900,000
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!



              21%er              Training and Seminar Bonus

                 2                          150 €
                 3                          200 €
                 4                          400 €
                 5                          500 €
                 6                          600 €
                 7                          700 €
                 8                          800 €
                 9                          900 €


• 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.
Recognition through LR




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   31




Exclusive for LR Partners

VW Polo                                                 Mercedes
LR special edition                                      Benz
 1) Junior Manager: Aus $100.00/ NZ $125.00,            Level II
“Car Bonus“, for each month following the
 qualification to Junior Manager. If one or             Silver Organization Leaders will receive
 several lines have achieved the 14% bonus-             Aus $1,250.00/ NZ $1,475.00 “Car Bonus“
 eligible level or above, the sales outside this        each month that they achieve 12 bonus-
 level must at least amount to 2,000 PV.                eligible levels, 4x 21% levels and 20,000 PV
 2) Manager: Aus $200.00/NZ 250.00 “Car                 residual sales. If this qualification is not
 Bonus“, for each month following the                   achieved but at least the qualification for a
 qualification to Manager. If one or several lines      Mercedes Benz level I, they will receive
 have achieved the 14% bonus-eligible level or          Aus $ 780.00/ NZ$ 920.00
 above, the sales outside this level must at
 least amount to 4,000 PV. If sales outside the         Mercedes
14% level amounts to at least 2,000 PV, the
 manager is granted Aus $100.00/NZ $125.00              Benz
 allowance.
                                                        Level III
Note: The above bonus only applies to LR Partners who   Gold Organization Leaders will receive
      participate in the Polo Car Concept.              Aus $1,750.00/ NZ $2,050.00 “Car Bonus“ each
                                                        month that they achieve 12 bonus-eligible
Mercedes                                                levels, 7x 21% levels and 20,000 PV residual
                                                        sales. If this qualification is not achieved but at
Benz                                                    least the qualification for a Mercedes Benz
                                                        level II, they will receive Aus $1,250.00/
Level I                                                 NZ $ 1,475.00

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             Porsche
residual sales with 1 x 21% level or 8,000 PV
residual sales with 2 x 21% levels.                     Platinum 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
Highlights from previous trips to Bali, Costa Rica and Mauritius as well as with the AIDA
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.”
1. Steps with LR




Pre-requisites



     1. Goals
     A 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.




     2. Using the products yourself
     Only 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. Steps with LR   35




3. Business-like appearance
Don’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!




4. Name list
The 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 time
What 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. Training
No 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!
List of Names & Appointments

On the previous page, we already briefly            Do you think that’s a lot? It has been
informed you about the importance of the            statistically proven that a thirty-year old man
nameslist. A full name list is your first step on   has already made around 2,000 contacts in
the road to success. In order to reach the          his lifetime.
highest bonus level, your list needs to contain
around 150 names with telephone numbers.




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




      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
1. Steps with LR   37




Correct conversing                              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.

• Positive greeting                             • In addition to your name list, you need a
                                                  telephone, a personal organiser and quiet
• Arouse curiosity                                place.
                                                • Run through your telephone call in your mind
• Suggest an appointment                          first. Your call shouldn’t last more than 2
                                                  minutes.
• Invite the partner                            • 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.



                           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?
Service




   Contact / LR locations worldwide
For orders, please do not
hesitate to send an email to:     Albania                              Faroe Islands
Email: Order.au@LRworld.com       LR Health & Beauty Systems           LR Health & Beauty Systems ApS
                                  Ermou 50                             C/o Bjørgvin Sp/F
Tel. 03 9310 5166                 14452 Metamorfosi Attikis            Heygsvegur 4, 490 Strendur
Fax: 03 9310 5177                 Griechenland                         Färöer Inseln
                                  T:   0030 211 200 22 31              T:   + 45 74 31 00 33
Service                           Fax: 0030 211 200 22 32              Fax: + 45 74 31 00 35
If you have any questions abour   email: service.al@LRworld.com        email: info@LRworld.dk
service related queries, please   Australia                            Finland
contact our office on 03 9310     LR Health & Beauty Systems Pty Ltd   LR Health & Beauty Systems Oy
5166 or send us email to:         Aerolink Businesspark                Joukahaisenkatu 6, 20520 Turku
service.au@LRworld.com            1&2 / 85-91 Keilor Park Drive        Finnland
                                  Tullamarine Victoria 3043            T:   00358 (0) 2 2759300
                                  Australia                            Fax: 00358 (0) 2 2343336
Managing Director                 T:   0061 (3) 9310 5166              email: info.fin@LRworld.com
Burkhard Meffert                  Fax: 0061 (3) 9310 5177
Australia/NZ                      email: order.au@LRworld.com          France
Phone: +64 03 9310 5166                                                LR Cosmetic Belgium b.v.b.a
Email: B.meffert@LRworld.com      Belgium                              Stenehei 30, 2480 Dessel
                                  LR Cosmetic Belgium b.v.b.a          Belgien
                                  Stenehei 30, 2480 Dessel             T:   0032 (0) 1 447 09 90
Office Manager                    Belgien                              Fax: 0032 (0) 1 447 09 91
Nella Demou                       T:   0032 (0) 14 47 09 90            email: order.fr@LRworld.com
Phone: +64 03 9310 5166           Fax: 0032 (0) 14 47 09 91
Email: N.Demou@LRworld.com        email: order.be@lrworld.com          Greece
                                                                       LR Health & Beauty Systems
                                  Bulgaria                             Ermou 50, 14452 Metamorfosi Attikis
Sales & Support                   LR Health & Beauty Systems           Griechenland
For all sales support related     60, Tzarigradsko shose Blvd.         T:   0030 210 2 85 24 85
enquiries, pls contact:           1784 Sofia                           Fax: 0030 210 2 84 73 09
Cahl Randhawa                     Bulgaria                             email: service.gr@LRworld.com
                                  T:   00359 (0) 2 870 8159
Sales Manager                     Fax: 00359 (0) 2 971 2182            Iceland
Australia/NZ                      service.bg@LRworld.com               LR Health & Beauty Systems ApS
Phone: 0409 920 887                                                    Lundsbjerg Industrivej 8
Email: C.Randhawa@LRworld.        Denmark                              6200 Aabenraa
com                               LR-Health & Beauty Systems ApS       Dänemark
                                  Lundsbjerg Industrivej 8             T:   + 45 74 31 00 00
                                  6200 Aabenraa                        Fax: + 45 74 31 00 35
Commercial Manager                Dänemark                             email: order.is@LRworld.com
Paul Mauro                        T:   + 45 74 31 00 33
Phone: 03 9310 5166               Fax: + 45 74 31 00 35                Italy
Email: P.Mauro@LRworld.com        email: info@LRworld.dk               LR Health & Beauty Systems Srlu
                                                                       Via Marconi 93/95
                                  Germany                              20020 Magnago (MI)
                                  LR Health & Beauty Systems GmbH      Italien
Product Related Enquiries:        Kruppstr. 55, 59227 Ahlen            T:    0039 0331 79 02 51
Resh Randhawa                     Deutschland                          Fax: 0039 0331 77 33 97
Product Manager                   T:   0049 (0) 23 82 70 60 - 0        email: service.it@LRworld.com
                                  Fax: 0049 (0) 23 82 70 60 - 311
Australia/NZ                      email: info@LRworld.com              Liechtenstein
Phone: 0412 129 882                                                    LR Health & Beauty Systems AG
Email: R.Randhawa@LRworld.com                                          4 Towers
                                                                       Turmstrasse 30. 6300 Zug
New Zealand                                                            Schweiz
                                                                       T:   0041 (0) 749 80 20 (deutsch)
Phone: +64 9 837 5303                                                  T:   0041 (0) 749 80 22 (französisch)
Fax: +64 9 837 5304                                                    Fax: 0041 (0) 749 80 30
Email: LRhealth@xtra.co.nz                                             email: info.ch@LRworld.com
P.O. Box 79-423 Royal Heights
Auckland NZ 0614
Service    39




Luxembourg                         Poland                                   Spain
LR Cosmetic Belgium b.v.b.a        LR Health & Beauty Systems Sp. z o.o.    L. de Racine - International Iberia -
Stenehei 30, 2480 Dessel           úl. Kościuszki 227, 40-950 Katowice      Cosméticos e Marketing Unipessoal Lda.
Belgien                            Polen                                    Rua Gil Vicente, 26 - Apto 316
T:   0032 (0) 1 447 09 90          T:   0048 32 351 12 50                   Quinta Nova de São Roque
Fax: 0032 (0) 1 447 09 91          Fax: 0048 32 351 12 55                   2670-513 Loures
email: a.rooyakkers@LRworld.com    email: service.pl@LRworld.com            Portugal
                                                                            T:   0034 901 900 776
The Netherlands                    Portugal                                 Fax: 0034 901 900 740
LR Health & Beauty Systems BV      L. de Racine - International Iberia -    email: info.es@LRworld.com
Postbus 14, 5060 AA Oisterwijk     Cosméticos e Marketing Unipessoal Lda.
Nederland                          Rua Gil Vicente, 26 - Apto 316           Czech Republic
T:   0032 (0) 1 447 09 90          Quinta Nova de São Roque                 LR Health & Beauty Systems, s.r.o.
Fax: 0032 (0) 1 447 09 91          2670-513 Loures                          Závodní 2, 70030 Ostrava-Hrabůvka
email:order.be@LRworld.com         Portugal                                 Tschechische Republik
a.vangompel@LRworld.com            T:   00351 21 982 57 20                  T:   00420 59 578 31 31
                                   Fax: 00351 21 982 57 25                  Fax: 00420 59 578 31 32
New Zealand                        email: info.pt@LRworld.com               email: service@LR-cosmetic.cz
LR Health & Beauty Systems
P.O. Box 79-423 Royal Heights      Romania                                  Turkey
Auckland 0614                      LR Health & Beauty Systems S.R.L.        LR Health & Beauty Systems
Neuseeland                         Nicolae Romanescu 112, 200738 Craiova    Pazarlama ve Tic. Ltd. Şti.
T:   0064 (9) 837 5303             Rumänien                                 İkitelli Organize Sanayi Bölgesi
Fax: 0064 (9) 837 5304             T:   0040 (0) 251 426 000                Atatürk Bulvari
email: order.nz@LRworld.com        Fax: 0040 (0) 251 426 001                Fatih Sitesi, 5A Blok No. 4
                                   email: service.ro@LRworld.com            34306 Basaksehir - Istanbul
Norway                                                                      Türkei
LR Health & Beauty Systems AS      Sweden                                   T:     0090 (0) 212 485 27 26
Kartverksveien 7, 3511 Hønefoss    LR Health & Beauty Systems AB            Fax: 0090 (0) 212 485 07 94
Norwegen                           Box 604 / Strandgatan 28                 email: order.tr@LRworld.com
T:   0047 (0) 32 11 29 00          531 16 Lidköping
Fax: 0047 (0) 32 11 29 80          Schweden                                 Ukraine
email: service.no@LRworld.com      T:   0046 (0) 510 290 10                 LR Health & Beauty Systems, I.t.d.
                                   Fax: 0046 (0) 510 291 70                 ul. Dragomirova 4, office 123
Austria                            email: order.se@LRworld.com              01103 Kiew
LR Health & Beauty Systems GmbH                                             Ukraine
Eduard-Bodem-Gasse 9               Switzerland                              T:   0038 044 536 03 55
6020 Innsbruck                     LR Health & Beauty Systems AG            Fax: 0038 044 536 03 55
Österreich                         4 Towers                                 email: service@lr-ua.com
T:   0043 (0) 512 57 75 75         Turmstrasse 30, 6300 Zug
Fax: 0043 (0) 512 57 75 75 21      Schweiz                                  Hungary
email: info.at@LRworld.com         T:   0041 (0) 41 749 80 20 (deutsch)     LR Health & Beauty Systems Kft.
                                   Fax: 0041 (0) 41 749 80 30               H-1191 Budapest, Ady E. út 42-44,
Philippines                        email: info.ch@LRworld.com               Ungarn
LR Health and Beauty Systems                                                T:   +36 1 477 42 45
Philippines, Inc.                  Slovakia                                 Fax: +36 1 477 42 48
Ground Floor, Eurovilla 4 Bldg.    LR Health & Beauty Systems, s.r.o.       email: service.hu@LRworld.com
#853 A. Arnaiz Ave., Makati City   Turzovka Stred 422
Philippines                        02354 Turzovka                           Cyprus
Tel. No. : +632 8121160            Slowakei                                 LR Health & Beauty Systems
Fax. Nos.: +632 8121146 or         T:   00420 59 578 31 31                  Ermou 50
            +632 8936889           Fax: 00420 59 578 31 32                  14452 Metamorfosi Attikis
Emails: service.ph@LRworld.com     email: service@LR-cosmetic.cz            Griechenland
         order.ph@LRworld.com                                               T:   00357 22 34 64 35
                                                                            Fax: 00357 22 73 06 78
                                                                            E-mail: service.cy@LRworld.com
Q&A
How much money can I earn with LR?                 LR Products
In general it can be said that the profit margin
of 40% on average constitutes direct earnings.     Are LR products subject to animal testing?
An additional bonus is granted for purchase        LR does not test its products on animals,
value starting from $ 250 net/month. Earnings      neither on its own nor by third parties. The aim
always depend on the commitment. Hundreds          of LR is to keep the environmental impact to a
of thousands of partners have a sound              minimum through use of environmentally-
additional income with LR. However, a 6-digit      friendly and resource-saving manufacturing
monthly income is also possible with LR. The       processes.
model cases illustrated in the examples in the
first part show the possible earnings of an LR     Are all LR products tested?
partner. However, not all alternatives are         Yes. All LR products are subject to internal
outlined due to the complexity of the LR           quality assurance. All LR skin care products
marketing plan. In case of doubt please do not     are tested by the independent Dermatest
hesitate to contact LR directly.                   Institute. Moreover, Aloe Vera products are
                                                   tested by the IASC (International Aloe Science
When does LR remit the bonus?                      Council). Aloe Vera Drinking Gels have
The bonus is paid retrospectively, punctually      additionally received the INSTITUT
by 20th of the subsequent month.                   FRESENIUS quality seal.

                                                   What will happen if the product does not
                                                   meet the expectations?
                                                   All LR products are subject to continous
International business                             internal quality assurances as well as external
                                                   tests. If the product does not meet the
In which countries is LR represented?              expectations, LR Health & Beauty Systems will
LR has branches/subsidiaries in 31 countries       accept product returns if the are in perfect and
worldwide. Addresses can be found on the           resellable condition up to 60 days after you
previous double page spread.                       receive your products from LR Health &
                                                   Beauty Systems.
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.
Service   41




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 via
                                                 Internet?
                                                You can operate your own website and are
Is it permitted to sell LR products in           allowed to sell LR products in your own
stationary trade, i.e. pharmacy, hairdresser,   “online shop“. This website requires LR’s prior
fitness studio?                                  approval.
You are not permitted to directly sell LR
products in such establishments.                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.
Glossary

21% Level                                              Bonus
Level achieving 12,000 PV total sales in one           In addition to the profit margin LR remits each
month.                                                 partner a bonus retrospectively on the sum of
                                                       all sales transacted per month. Bonus must be
                                                       approved for payment of bonus on own sales
100 PV Regulation                                      or group sales, by the fulfilment of the 100 PV
                                                       regulation and total sales of at least 250 PV/
Each partner must at least achieve 100 PV              month.
own sales per month in order to receive a
bonus.
                                                       Bonus Line
Academy                                                The bonus-eligible level is each direct level
                                                       achieving at least 250 PV total sales per
The LR Academy comprises LR‘s entire                   month.
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                  Downline
Junior Team Leader Academy, Team Leader
Day, Organization Leader Academy through to            Downline is the course of the structure of each
Silver Organization Leader Academy. The                partner downwards, i.e. all partners registered
seminar offer is supplemented by product               by A, their partners and the partners thereof
training, sales training, online seminars and          belong to ”Downline”. The Downline branches
online knowledge tests.                                continuously downwards at lower tiers.


Car Bonus                                              Own sales
Special payment for partners who achieved LR           Own sales are viewed as order values which a
car qualification and have leased an LR car.           partner generates himself in his own name and
                                                       own account. Orders generated through end
                                                       consumers also account for qualification to
Car Plan                                               own sales of the respective partner.

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.
Service   43




Business Volume                                   Inactivity
Business Volume (BV) is a value assigned
to each product. The percental bonus level        A partner is viewed as inactive if he has no
achieved through the generated PV shall be        own sales for 12 months in succession.
calculated on the corresponding BV and paid
out to the respective partner in AUD.
                                                  Level
                                                  A level is a part of a structure and branches
Total Sales                                       continuously downwards

Total sales of a partner comprise of his own
monthly sales as well as the total monthly        Partner
sales of his structure developed by that time.
                                                  Independent sales partner of LR who entered
                                                  into a partner agreement with LR and runs the
Group Sales                                       LR business in his own name and on his own
                                                  account.
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                         Point Value
                                                  Point value (PV) is the value assigned to every
Profit Margin                                     LR product. Based on the PV a partner
                                                  achieves specified qualification and bonus
Profit margin is the difference between the end   levels.
consumer price for the customer and the
purchase price of the partner.
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.
Service   45




Terms of Delivery & Payment

1. Methods of payment                               specifying grounds to return the new and
c) Credit card – Master/VISA/Bankcard/Amex          saleable goods in original packaging within
   Please keep in mind that credit card data        two months following date of invoice against
   are not saved. We therefore kindly ask for       product voucher. The date of expiry of the
   your understanding that your credit data         product voucher shall be one year and shall
   must be collected again for every order paid     be automatically offset against the next orders.
   via credit card.                                 Sales aids and documents shall be precluded
                                                    from return.

                                                    d) Place of performance and jurisdiction is
2. Dispatch                                             59227 Ahlen.
All orders of $250 and above FREE Delivery          e) Alterations of range and prices shall be
Order below $ 250. (Aus $9.00 + gst)                    reserved.
(NZ $10.00 + gst) freight charges                   f) The legal provisions shall otherwise apply.
                                                    g) Your contract partner:
Essential details                                       LR Health & Beauty Systems GmbH,
> Your partner number                                   Kruppstraße 55, 59227 Ahlen,
> Your code number (only required if you prefer         HRB 9874 AG Münster
  bank collection for orders placed via phone)          Geschäftsführer: Dr. Jens M. Abend,
> Order number incl. sub-number                        Thomas Heursen, Thomas Kircher,
> Article description                                  Tilo Plöger, Andreas G. Rutsch
> 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. Other
a) 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
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
Service   47




Your goal

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




Your schedule
1) Keep a diary
2) Jot down all business and private appointments and take additional notes




               Calendar 13, 29.03. - 04.04.

                                                    Fr: 17.30 - 19.00h Badminton
                                                        danach in's alex (Starbox einpacken!)
                                 der
                     Sa  bine Ra                    Sa: 13.30h BP bei Herrn und Frau krämer
                                8   792
                      0176/6655                          18.00h Happy Hour Party bei Daniela

                                                    So: 16.00h geburtstag Ma


              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                      sa
                                                         laris      !
                    präsentieren
                                                              fen !
                   -> Uhrzeit fix machen!               anru

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Au concept to_success

  • 1. Art. Nr.: 92503-001 YOUR CHANCE TO CHANGE LR Health & Beauty Systems Pty Ltd – Australia & New Zealand AU Unit 1& 2, Keilor Park Drive Tullamarine Victoria 3043 Australia www.LRworld.com
  • 2. CONCEPT TO SUCCESS T I P S FOR YOUR lR BUSINESS l R Ma R kE T I N g Pl aN
  • 3. 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. Abend Thomas Heursen Chief Executive Officer Global Sales Director
  • 4. Your Partner LR 4 – 13 The Industry 4–5 The LR Success Story 6–7 LR Values 8–9 LR Success Factors 10 – 11 The Vision 12 The Business Model 13 The LR Marketing Plan 14 – 27 Bonus for Personal Sales and Group Sales 14 – 15 Leader Bonus 16 – 17 Special Bonus 18 – 19 Depth Bonus 20 – 21 Top Depth Bonus 22 – 23 Annual Bonus 24 – 25 LR Career Ladder 26 – 27 Recognition through LR 28 – 33 Training and Seminar Bonus 28 – 29 LR Car Plan 30 – 31 LR Trips 32 – 33 1. The First Steps with LR 34– 37 Requirements & Qualifications 34 – 35 List of Names & Appointments 36 – 37 Service 38 – 49 Contacts & LR Locations Worldwide 38 – 39 Questions & Answers 40 – 41 Glossary 42 – 44 Terms of Delivery & Payment 45 Success Planner 46 – 47
  • 5. Your Partner LR 4 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 Advantages for end-consumers: involved in direct sales; together they generate • Independence from business and store hours sales of over 120 billion US$ annually. A trend • Comfort aspect of home shopping that is sharply on the rise. • High quality of advice and support It’s no wonder that direct sales is a globally booming industry. The idea behind it is as Advantages for LR partners, simple as it is ingenious: Products or services among other factors: are sold by independent business partners. • Long-term additional or principle income That saves cost-intensive advertising measures, • Flexible working hours expensive licences and fees for distributors: • Minimal start-up capital for founding a money that is invested by LR in the development commercial enterprise 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. The LR product range: innovative and prize-winning merchandise
  • 6. Your Partner LR 5 70 People in Number of business partners worldwide millions 60 Around ¾ lock-in a solid extra income. 50 ¼ have succeeded in becoming fully independent. 40 30 20 10 0 1988 1991 1993 1995 2000 2004 2007 120 Sales trend figures worldwide Sales trend figures 100 worldwide in billion 80 US$ 60 40 20 0 1988 1991 1993 1995 2000 2004 2007 160 Percentages Sales trend comparison 150 Direct sales – Retail 140 Dynamic growth in direct sales as opposed to stagnation in retail 130 120 110 100 1995 2000 2004 2007 Source: Branchenreport Direktvertrieb, 2009
  • 7. 4 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. 2005 25 years of success are reflected in the following figures: turnover * 308 M € 2002 turnover * 175 M € 1997 turnover 141 M € * 1994 turnover * 120 M € 1985 turnover * 0.4 M € Since the founding of the company in 1985, year for year growth in sales * Based on SRP
  • 8. Your Partner LR 7 2009 turnover * 371 M € 2008 turnover * 335 M € … 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!
  • 9. LR Values LR’s success is based on clear-cut values: Passion Trust Responsibility
  • 10. Your Partner LR 9 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.
  • 11. LR Success Factors These values determine LR’s business practices throughout the world. They combine with the 5 success factors to make LR unique. Quality products “Made in Germany” – in a growing range of categories, with extensive certification from independent institutes, developed in close cooperation with the LR Science Advisory Board. Cooperative ventures with top names and artists – 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. Marcus Schenkenberg & Leona Lewis
  • 12. Your Partner LR 11 Fair, transparent marketing plan – 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. Unique car concept – 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. Training and service – 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, and much, much more.
  • 13. 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. Cooperative Fair, Top quality ventures transparent Unique Top training Made in with top marketing car concept and service Germany names and plan artists Passion Trust Responsibility
  • 14. Your Partner LR 13 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 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 % The individual bonus are explained on the succeeding pages with examples.
  • 15. The LR Marketing Plan Bonuses for Own Sales and Group Sales What is it? How does it work? A reward for developing the business. LR Health & Beauty Systems offers sales- related bonuses. The values of the Business Volume (BV) and Point Value (PV) are Who is eligible? significant for the calculation of bonuses and indispensable for the international commission Every partner who reached at least 100 point calculation. To determine the bonus level, all value in Personal Sales in a month’s time, and sales transacted within a calendar month are at least 250 Point Value in Total Sales. 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. Bonus table: 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% Example 2: Higher personal sales, i.e. through product sales to friends Example 1: Personal sales only: and relatives Purchase for $ 400.00 Purchase for $ 1,000.00 Sales for $ 560.00 Sales for $ 1,400.00 Profit margin from Profit margin from Product sales $ 160.00 Product sales $ 400.00 $ 400 net purchase price =400 BV = 400 PV $ 1000 net purchase price = 1000 BV = 1,000 PV 400 PV 3 % bonus 1,000 PV 9 % Bonus 3% bonus on 400 BV $ 12.00 9% bonus on 1000 BV $ 90.00 Total earnings: $ 172.00 Total earnings: $ 490.00 All examples are calculated before tax. To simplify the calculations we assume that $1 = 1BV = 1PV and 40% margin.
  • 16. The LR Marketing Plan 15 Example 3: Development of a small sales organization Instead of selling LR products to friends, family Notes: members and colleagues, you can also offer • A has achieved group sales of 5,000 PV. By them the possibility of becoming LR partners so doing, A has reached the 14% bonus themselves and thereby profit from the level; without B, C, D and E he would have chances that the LR business has to offer. remained in the 9% level. What’s in it for you? • B, C, D and E each achieved 9%. As A is in When you sponsor a new partner, you increase the 14% bonus level, there is a 5% your LR business prospects enormously, since difference between A and each of his you also have a stake in their sales: You can partners. A receives this supplementary 5% achieve a turnover of 1,000 PV per month, as a difference bonus to the respective which is equal to 1,000 BV. turnovers achieved by B, C, D and E. Total earnings: Your earnings: Profit margin $ 400.00 Profit margin $ 400.00 Bonus (14% from 1,000 BV) $ 140.00 Bonus (9% from 1,000 BV) $ 90.00 Bonus difference for B,C,D,E (4 × 5% from 1,000 BV) $ 200.00 Total $ 490.00 Total $ 740.00 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: 14% 1,000 PV A 1,000 BV 9% 9% 5% difference = $ 50 5% difference = $ 50 B C 1,000 PV 1,000 PV 1,000 BV 1,000 BV 9% 9% 5% difference = $ 50 5% difference = $ 50 D E 1,000 PV 1,000 PV 1,000 BV 1,000 BV
  • 17. Leader Bonus What is it? A reward for the excellent support provided for the sales organization, and an incentive on the way to becoming a manager. How does it work? Who is eligible? The leader bonus is intended as a reward for the support of the structure and to help with Every bonus eligible partner with at least 8 the development of “healthy” lower tiers. bonus lines and: Therefore, the leader bonus is paid on the basis of the entire lower tiers, but not on own sales. The leader bonus is clearly • 16,000 PV Group Sales or achievement-oriented, and increases in proportion to turnover. • with 1 direct 21%er line and 12,000 PV side volume or • minimum of 2 direct 21%er lines Example 4: Leader bonus without direct 21%er A 21% 1,000 PV 14% B 1000 BV 14% C 4,000 PV 7% difference 7% difference 4,000 PV = $ 280 = $ 280 4,000 BV 4,000 BV 14% D 14% E 7% difference 7% difference 4,000 PV = $ 280 = $ 350 5,000 PV 4,000 BV 5,000 BV 6% F 15% difference = $ 75 6% G 15% difference 500 PV = $ 75 500 PV 500 BV 500 BV 6% H 3% I 500 PV 250 PV 15% difference 18% difference = $ 75 = $ 75 5000 BV 250 BV 1. Personal Bonus of 21% on 1000 BV = $ 210.00 2. Difference Bonus = 3 × $ 280 + $ 350 + 3 x $ 75 + $ 45 = $ 1,460.00 3. Leader Bonus of 3% on 18,750 BV = $ 562.50 Total earnings (without profit margin) = $ 2,232.50
  • 18. The LR Marketing Plan 17
  • 19. 21% Special Bonus Special Bonus 7%-10% Side Volume What is it? A reward for the development of direct 21% levels and for the motivation of new leaders. 21% 6% 9% 12% 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 Side Volume Special bonus 21% levels 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).
  • 20. The LR Marketing Plan 19 Example 5: Special Bonus for direct 21%er 21% 1,000 PV A 11% 1000 BV 14% B C 2,000 PV 10% difference 7% difference = 4,000 PV = $ 200 $ 280 2000 BV 4000 BV 14% 21% 7% difference 4 x 15% Difference 7% special D E 6,000 PV = $ 420 = 4 x $ 75 bonus 12,000 PV 6000 BV 12000 BV 4 x 6%er with total of 2000 PV FG 2000 BV H I 1. Personal Bonus of 21% on 1,000 BV = $ 210.00 2. Difference Bonus = $ 200 + $ 420 + 4 x $ 75 = $ 1,200.00 3. Leader Bonus of 3% on 16,000 BV = $ 480.00 4. 7% Special Bonus on 21%er sales (12,000 BV) = $ 840,00 Total earnings (without profit margin) $ 2,750.00 Example 6: Special Bonus for two direct 21%er 21% 1,000 PV A 21% 21% 1,000 BV B C 12,000 PV 12,000 PV 12,000 BV 12,000 BV D E F Special Bonus for A: a) if D + E + F together achieve sales of b) if D + E + F together achieve sales of 4,000 PV, but less than 12,000 PV: 7.5% over 12,000 PV: 7.5% special bonus special bonus on 50% of the cumulated on the cumulated sales of direct 21%er, sales of direct 21%er, i.e. i.e. 7.5% on 24,000 BV = $ 1,800.00 7.5% x 50% x 24,000 BV = $ 900.00 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. Depth Bonus What is it? How does it work? A reward for the successful development of Entitlement for a depth bonus exists in the leaders. respective month in which the organization leader has achieved and upheld the set amount of direct 21% lines, as specified in the Who is eligible? table. Every organization leader who has achieved at least 4 X direct 21% lines. 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 A (SOL) B C D E 20,000 PV 20,000 PV 20,000 PV 20,000 PV 10,000 BV 10,000 BV 10,000 BV 10,000 BV F G H I 20,000 PV 20,000 PV 20,000 PV 20,000 PV 80,000 PV 10,000 BV 10,000 BV 10,000 BV 10,000 BV Depth bonus for A Silver bonus entitlement on 80,000 PV, that is 2.0% on 80,000 BV = $ 1,600.00 Depth bonus = $ 1,600.00 You will also receive: + Personal Bonus + Difference Bonus + Leader Bonus (in case of 8 bonus lines) + Special Bonus (with required side volume)
  • 22. The LR Marketing Plan 21 Example 8: Depth bonus with 10 direct 21% levels A (POL) B C D E F G H I J K 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV L M N O P Q R S T U 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 200,000 PV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV Depth bonus for A Silver bonus entitlement on 200,000 PV, that is 2.0% on 200,000 BV = $ 4,000.00 Platinum bonus entitlement on 200,000 PV, that is 1.0 % on 100,000 BV = $ 2,000.00 Depth bonus = $ 6,000.00 You will also receive: + Personal Bonus + Difference Bonus + Leader Bonus + Special Bonus (with required side volume) 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 President President President President President Bonus Bonus Bonus Bonus Bonus 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%
  • 23. Top Depth Bonus What is it? How does it work? A reward for the successful development of Silver and Platinum is differentiated in the managers. same way as the Depth Bonus. The top depth bonus is paid for levels where partners already receive Depth Bonus (Silver and Platinum Who is eligible? Bonus) through the next organization leader with commensurate top depth bonus Every Organization Leader who has developed qualification. If the partner has adequate at least 12 bonus lines, at least 4 of which are qualification (starting with platinum direct 21% lines and who has a partner in his/ organization leader) for Top Silver and Top her downline who receives Depth Bonus. Platinum Bonus, he/she receives of course both Top Depth Bonuses (Silver and Platinum Top Bonus) direct 21% Percentage of Percentage of Qualification lines Silver Bonus Platinum Bonus *****Star President 12 2.00% 1.00% ****Star President 12 2.00% 1.00% ***Star President 12 2.00% 1.00% **Star President 12 1.75% 1.00% *Star President 12 1.50% 1.00% President 12 1.25% 0.75% Vice-President 12 1.00% 0.50% Platinum-OL 10 0.75% 0.25% Gold-OL 7 0.50% Silver-OL 4 0.25%
  • 24. 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 A (SOL) Silver Bonus for A on 80,000 PV 2% bonus on 80,000 BV = $ 1,600.00 B C D E 20,000 PV 20,000 PV 20,000 PV + Top Silver Bonus on 180,000 PV 10,000 BV (SOL) 10,000 BV 10,000 BV (J, K, L) 0.25 % on 180,000 BV = $ 450.00 Total depth bonus = $ 2,050.00 F G H I 80,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 10,000 BV 10,000 BV 10,000 BV 10,000 BV Your recieve also + Personal Bonus + Difference Bonus + Leader Bonus J K L 180,000 PV (in case of 8 bonus lines) 80,000 PV 60,000 PV 40,000 PV + Special Bonus 40,000 BV 30,000 BV 20,000 BV (with required side volume) Example 10: Organization leader with 10 direct 21% lines and amongst has an organization leader with 10 direct 21% lines in the downline You will recieve also + Personal Bonus A (with enough + Difference Bonus (POL) side volume): + Leader Bonus (in case of 8 bonus lines) + Special Bonus B C D E F G H I J K 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV (POL) 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV L M N O P Q R S T U 200,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 20,000 PV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV 10,000 BV V W X 180,000 PV 80,000 PV 60,000 PV 40,000 PV 40,000 BV 30,000 BV 20,000 BV Silver Bonus + Platinum Bonus for A on 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
  • 25. Annual Bonus What is it? How does it work? A reward for successful work in a calendar Starting from 1,000,000 PV year and a kind of additional “Christmas 1.00% Annual Sales Bonus”. Starting from 2,000,000 PV 1.50% Annual Sales Who is eligible? Starting from 3,000,000 PV 2.00% Annual Sales Every organization leader who meets the Starting from 4,000,000 PV following requirements: 2.25% Annual Sales 1.) Achieving a minimum of 1,000,000 PV + total sales Starting from 5,000,000 PV 2.50% 2.) The strongest lines accounts for max. 60% Annual Sales 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 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
  • 26. The LR Marketing Plan 25
  • 27. LR Career Ladder Organization Leader Team Qualification 6 months in Leader succession 12 bonus-eligible lines Junior Team Qualification with 24,000 PV 3 months in Leader succession 6 total sales or 12,000 PV residual bonus-eligible lines sales at 1 × 21% Manager Qualification and 16,000 PV lines 12,000 PV group total sales Qualification sales, 250 PV own 8,000 PV group Bonus Junior sales and 6 bonus- Bonus Special Bonus, sales, 250 PV own eligible lines leader bonus – Leader Bonus, – Manager sales and 4 bonus- bonus on personal bonus on personal eligible lines sales Qualification Bonus sales 11% 4,000 PV group bonus manager Bonus bonus – bonus on Extras Qualification sales, 250 PV own bonuses on own Extras sales and 3 bonus- personal sales Team leader day, LR Mercedes Benz 2,000 PV total sales sales eligible linesl Concept Level 1, Bonus Extras Organization 3 – 9% Extras VW Polo Car Leader Academy bonus on Personal Bonus VW Polo Car Concept Concept Qualification sales and group bonus on Aus $ 200/Nz $ 250 Aus $ 300/Nz $ 375 250 – 1,000 PV sales Personal sales Junior Team Leader total sales Academy Extras Extras Bonus extra quick start VW Polo Car Concept Bonus on Personal bonus Aus $ 100/Nz $ 125 Sales and Group Junior Manager sales Academy, Estimated Annual earnings $ 3,200 to $ 7,000 to $ 14,000 to $ 14,000 to $ 28,000 to $ 8,200 $ 14,000 $ 35,000 $ 49,000 $ 63,000
  • 28. 27 Star President * to ***** President Qualification Qualification 6 months in 6 months in Vice succession 12x succession 12 × 21%-Lines out of President 21% lines, there which 3 must be from 2 platinum OL BOL or Platinum Qualification lines or 12x 21% 12 × 21%-Line lines + 2,000,000 Organization 6 months in 12x succession PV sales, + 4,000,000 to 12,000,000 PV Leader 21% lines, whereas therefrom at least Atleast sales of Gold 3 silver OL lines or 1,200,000 residual 2,400,000 to Organization Qualification 12x 21% lines + group sales 7,200,000 6 months in 1,000,000 PV Sidevolume Leader Bonus Silver succession 10x sales 21% lines President bonus, Bonus Organization Qualification Bonus top platinum President bonus 6 months in Leader Bonus top platinum bonus, Top-Platinum Bronze succession 7x top platinum bonus, platinum platinum bonus, Bonus 21% lines + bonus, top silver top silver bonus, Organization Qualification 12,000 PV or 8 bonus, platinum annual bonus, Platinum Bonus 6 months in bonus, top silver bonus, annual Top-Silver bonus Leader succession 4x and more 21% bonus, annual bonus, silver silver bonus, Annual Bonus lines bonus, special special bonus, 21% levels + bonus, silver Silver Bonus Qualification 12,000 PV or 5 bonus, special bonus, manager manager bonus – Special Bonus 6 months in Bonus bonus, manager bonus – bonus on bonus on personal and more 21% Leadership Bonus succession 2x 21% top silver bonus, personal sales sales levels bonus, – bonus on lines + 12,000 PV annual bonus, special bonus, personal sales Extras residual sales or 3x Bonus Extras Extras LR Porsche 21% lines manager bonus – Top Silver Bonus, Extras LR Porsche LR Porsche Concept bonus on personal Concept Concept Annual Bonus, LR Porsche Events & Trips Bonus sales Events & Trips Events & Trips Special Bonus, Concept Annual Bonus, Events & Trips Leader Bonus – Special Bonus, Extras bonus on personal leader bonus, – LR Porsche sales bonus on personal Boxster or sales Mercedes CLK Concept Level 3 Extras Extras LR Mercedes Benz LR Mercedes Benz Concept Level 2 Concept Level 1, Silver OL Academy $ 56,000 to $ 90,000 to $ 280,000 to above above above above $ 100,000 $ 280,000 $ 440,000 $ 460,000 $ 900,000 $ 1,200,000 $ 1,900,000
  • 29.
  • 30. 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! 21%er Training and Seminar Bonus 2 150 € 3 200 € 4 400 € 5 500 € 6 600 € 7 700 € 8 800 € 9 900 € • 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.
  • 31. Recognition through LR 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
  • 32. Recognition through LR 31 Exclusive for LR Partners VW Polo Mercedes LR special edition Benz 1) Junior Manager: Aus $100.00/ NZ $125.00, Level II “Car Bonus“, for each month following the qualification to Junior Manager. If one or Silver Organization Leaders will receive several lines have achieved the 14% bonus- Aus $1,250.00/ NZ $1,475.00 “Car Bonus“ eligible level or above, the sales outside this each month that they achieve 12 bonus- level must at least amount to 2,000 PV. eligible levels, 4x 21% levels and 20,000 PV 2) Manager: Aus $200.00/NZ 250.00 “Car residual sales. If this qualification is not Bonus“, for each month following the achieved but at least the qualification for a qualification to Manager. If one or several lines Mercedes Benz level I, they will receive have achieved the 14% bonus-eligible level or Aus $ 780.00/ NZ$ 920.00 above, the sales outside this level must at least amount to 4,000 PV. If sales outside the Mercedes 14% level amounts to at least 2,000 PV, the manager is granted Aus $100.00/NZ $125.00 Benz allowance. Level III Note: The above bonus only applies to LR Partners who Gold Organization Leaders will receive participate in the Polo Car Concept. Aus $1,750.00/ NZ $2,050.00 “Car Bonus“ each month that they achieve 12 bonus-eligible Mercedes levels, 7x 21% levels and 20,000 PV residual sales. If this qualification is not achieved but at Benz least the qualification for a Mercedes Benz level II, they will receive Aus $1,250.00/ Level I NZ $ 1,475.00 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 Porsche residual sales with 1 x 21% level or 8,000 PV residual sales with 2 x 21% levels. Platinum 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
  • 33. Highlights from previous trips to Bali, Costa Rica and Mauritius as well as with the AIDA
  • 34. 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.”
  • 35. 1. Steps with LR Pre-requisites 1. Goals A 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. 2. Using the products yourself Only 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.
  • 36. 1. Steps with LR 35 3. Business-like appearance Don’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! 4. Name list The 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 time What 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. Training No 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!
  • 37. List of Names & Appointments On the previous page, we already briefly Do you think that’s a lot? It has been informed you about the importance of the statistically proven that a thirty-year old man nameslist. A full name list is your first step on has already made around 2,000 contacts in the road to success. In order to reach the his lifetime. highest bonus level, your list needs to contain around 150 names with telephone numbers. Who belongs on your name list? Quite simply: EVERYONE! 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
  • 38. 1. Steps with LR 37 Correct conversing 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. • Positive greeting • In addition to your name list, you need a telephone, a personal organiser and quiet • Arouse curiosity place. • Run through your telephone call in your mind • Suggest an appointment first. Your call shouldn’t last more than 2 minutes. • Invite the partner • 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. 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?
  • 39. Service Contact / LR locations worldwide For orders, please do not hesitate to send an email to: Albania Faroe Islands Email: Order.au@LRworld.com LR Health & Beauty Systems LR Health & Beauty Systems ApS Ermou 50 C/o Bjørgvin Sp/F Tel. 03 9310 5166 14452 Metamorfosi Attikis Heygsvegur 4, 490 Strendur Fax: 03 9310 5177 Griechenland Färöer Inseln T: 0030 211 200 22 31 T: + 45 74 31 00 33 Service Fax: 0030 211 200 22 32 Fax: + 45 74 31 00 35 If you have any questions abour email: service.al@LRworld.com email: info@LRworld.dk service related queries, please Australia Finland contact our office on 03 9310 LR Health & Beauty Systems Pty Ltd LR Health & Beauty Systems Oy 5166 or send us email to: Aerolink Businesspark Joukahaisenkatu 6, 20520 Turku service.au@LRworld.com 1&2 / 85-91 Keilor Park Drive Finnland Tullamarine Victoria 3043 T: 00358 (0) 2 2759300 Australia Fax: 00358 (0) 2 2343336 Managing Director T: 0061 (3) 9310 5166 email: info.fin@LRworld.com Burkhard Meffert Fax: 0061 (3) 9310 5177 Australia/NZ email: order.au@LRworld.com France Phone: +64 03 9310 5166 LR Cosmetic Belgium b.v.b.a Email: B.meffert@LRworld.com Belgium Stenehei 30, 2480 Dessel LR Cosmetic Belgium b.v.b.a Belgien Stenehei 30, 2480 Dessel T: 0032 (0) 1 447 09 90 Office Manager Belgien Fax: 0032 (0) 1 447 09 91 Nella Demou T: 0032 (0) 14 47 09 90 email: order.fr@LRworld.com Phone: +64 03 9310 5166 Fax: 0032 (0) 14 47 09 91 Email: N.Demou@LRworld.com email: order.be@lrworld.com Greece LR Health & Beauty Systems Bulgaria Ermou 50, 14452 Metamorfosi Attikis Sales & Support LR Health & Beauty Systems Griechenland For all sales support related 60, Tzarigradsko shose Blvd. T: 0030 210 2 85 24 85 enquiries, pls contact: 1784 Sofia Fax: 0030 210 2 84 73 09 Cahl Randhawa Bulgaria email: service.gr@LRworld.com T: 00359 (0) 2 870 8159 Sales Manager Fax: 00359 (0) 2 971 2182 Iceland Australia/NZ service.bg@LRworld.com LR Health & Beauty Systems ApS Phone: 0409 920 887 Lundsbjerg Industrivej 8 Email: C.Randhawa@LRworld. Denmark 6200 Aabenraa com LR-Health & Beauty Systems ApS Dänemark Lundsbjerg Industrivej 8 T: + 45 74 31 00 00 6200 Aabenraa Fax: + 45 74 31 00 35 Commercial Manager Dänemark email: order.is@LRworld.com Paul Mauro T: + 45 74 31 00 33 Phone: 03 9310 5166 Fax: + 45 74 31 00 35 Italy Email: P.Mauro@LRworld.com email: info@LRworld.dk LR Health & Beauty Systems Srlu Via Marconi 93/95 Germany 20020 Magnago (MI) LR Health & Beauty Systems GmbH Italien Product Related Enquiries: Kruppstr. 55, 59227 Ahlen T: 0039 0331 79 02 51 Resh Randhawa Deutschland Fax: 0039 0331 77 33 97 Product Manager T: 0049 (0) 23 82 70 60 - 0 email: service.it@LRworld.com Fax: 0049 (0) 23 82 70 60 - 311 Australia/NZ email: info@LRworld.com Liechtenstein Phone: 0412 129 882 LR Health & Beauty Systems AG Email: R.Randhawa@LRworld.com 4 Towers Turmstrasse 30. 6300 Zug New Zealand Schweiz T: 0041 (0) 749 80 20 (deutsch) Phone: +64 9 837 5303 T: 0041 (0) 749 80 22 (französisch) Fax: +64 9 837 5304 Fax: 0041 (0) 749 80 30 Email: LRhealth@xtra.co.nz email: info.ch@LRworld.com P.O. Box 79-423 Royal Heights Auckland NZ 0614
  • 40. Service 39 Luxembourg Poland Spain LR Cosmetic Belgium b.v.b.a LR Health & Beauty Systems Sp. z o.o. L. de Racine - International Iberia - Stenehei 30, 2480 Dessel úl. Kościuszki 227, 40-950 Katowice Cosméticos e Marketing Unipessoal Lda. Belgien Polen Rua Gil Vicente, 26 - Apto 316 T: 0032 (0) 1 447 09 90 T: 0048 32 351 12 50 Quinta Nova de São Roque Fax: 0032 (0) 1 447 09 91 Fax: 0048 32 351 12 55 2670-513 Loures email: a.rooyakkers@LRworld.com email: service.pl@LRworld.com Portugal T: 0034 901 900 776 The Netherlands Portugal Fax: 0034 901 900 740 LR Health & Beauty Systems BV L. de Racine - International Iberia - email: info.es@LRworld.com Postbus 14, 5060 AA Oisterwijk Cosméticos e Marketing Unipessoal Lda. Nederland Rua Gil Vicente, 26 - Apto 316 Czech Republic T: 0032 (0) 1 447 09 90 Quinta Nova de São Roque LR Health & Beauty Systems, s.r.o. Fax: 0032 (0) 1 447 09 91 2670-513 Loures Závodní 2, 70030 Ostrava-Hrabůvka email:order.be@LRworld.com Portugal Tschechische Republik a.vangompel@LRworld.com T: 00351 21 982 57 20 T: 00420 59 578 31 31 Fax: 00351 21 982 57 25 Fax: 00420 59 578 31 32 New Zealand email: info.pt@LRworld.com email: service@LR-cosmetic.cz LR Health & Beauty Systems P.O. Box 79-423 Royal Heights Romania Turkey Auckland 0614 LR Health & Beauty Systems S.R.L. LR Health & Beauty Systems Neuseeland Nicolae Romanescu 112, 200738 Craiova Pazarlama ve Tic. Ltd. Şti. T: 0064 (9) 837 5303 Rumänien İkitelli Organize Sanayi Bölgesi Fax: 0064 (9) 837 5304 T: 0040 (0) 251 426 000 Atatürk Bulvari email: order.nz@LRworld.com Fax: 0040 (0) 251 426 001 Fatih Sitesi, 5A Blok No. 4 email: service.ro@LRworld.com 34306 Basaksehir - Istanbul Norway Türkei LR Health & Beauty Systems AS Sweden T: 0090 (0) 212 485 27 26 Kartverksveien 7, 3511 Hønefoss LR Health & Beauty Systems AB Fax: 0090 (0) 212 485 07 94 Norwegen Box 604 / Strandgatan 28 email: order.tr@LRworld.com T: 0047 (0) 32 11 29 00 531 16 Lidköping Fax: 0047 (0) 32 11 29 80 Schweden Ukraine email: service.no@LRworld.com T: 0046 (0) 510 290 10 LR Health & Beauty Systems, I.t.d. Fax: 0046 (0) 510 291 70 ul. Dragomirova 4, office 123 Austria email: order.se@LRworld.com 01103 Kiew LR Health & Beauty Systems GmbH Ukraine Eduard-Bodem-Gasse 9 Switzerland T: 0038 044 536 03 55 6020 Innsbruck LR Health & Beauty Systems AG Fax: 0038 044 536 03 55 Österreich 4 Towers email: service@lr-ua.com T: 0043 (0) 512 57 75 75 Turmstrasse 30, 6300 Zug Fax: 0043 (0) 512 57 75 75 21 Schweiz Hungary email: info.at@LRworld.com T: 0041 (0) 41 749 80 20 (deutsch) LR Health & Beauty Systems Kft. Fax: 0041 (0) 41 749 80 30 H-1191 Budapest, Ady E. út 42-44, Philippines email: info.ch@LRworld.com Ungarn LR Health and Beauty Systems T: +36 1 477 42 45 Philippines, Inc. Slovakia Fax: +36 1 477 42 48 Ground Floor, Eurovilla 4 Bldg. LR Health & Beauty Systems, s.r.o. email: service.hu@LRworld.com #853 A. Arnaiz Ave., Makati City Turzovka Stred 422 Philippines 02354 Turzovka Cyprus Tel. No. : +632 8121160 Slowakei LR Health & Beauty Systems Fax. Nos.: +632 8121146 or T: 00420 59 578 31 31 Ermou 50 +632 8936889 Fax: 00420 59 578 31 32 14452 Metamorfosi Attikis Emails: service.ph@LRworld.com email: service@LR-cosmetic.cz Griechenland order.ph@LRworld.com T: 00357 22 34 64 35 Fax: 00357 22 73 06 78 E-mail: service.cy@LRworld.com
  • 41. Q&A How much money can I earn with LR? LR Products In general it can be said that the profit margin of 40% on average constitutes direct earnings. Are LR products subject to animal testing? An additional bonus is granted for purchase LR does not test its products on animals, value starting from $ 250 net/month. Earnings neither on its own nor by third parties. The aim always depend on the commitment. Hundreds of LR is to keep the environmental impact to a of thousands of partners have a sound minimum through use of environmentally- additional income with LR. However, a 6-digit friendly and resource-saving manufacturing monthly income is also possible with LR. The processes. model cases illustrated in the examples in the first part show the possible earnings of an LR Are all LR products tested? partner. However, not all alternatives are Yes. All LR products are subject to internal outlined due to the complexity of the LR quality assurance. All LR skin care products marketing plan. In case of doubt please do not are tested by the independent Dermatest hesitate to contact LR directly. Institute. Moreover, Aloe Vera products are tested by the IASC (International Aloe Science When does LR remit the bonus? Council). Aloe Vera Drinking Gels have The bonus is paid retrospectively, punctually additionally received the INSTITUT by 20th of the subsequent month. FRESENIUS quality seal. What will happen if the product does not meet the expectations? All LR products are subject to continous International business internal quality assurances as well as external tests. If the product does not meet the In which countries is LR represented? expectations, LR Health & Beauty Systems will LR has branches/subsidiaries in 31 countries accept product returns if the are in perfect and worldwide. Addresses can be found on the resellable condition up to 60 days after you previous double page spread. receive your products from LR Health & Beauty Systems. 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.
  • 42. Service 41 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 via Internet? You can operate your own website and are Is it permitted to sell LR products in allowed to sell LR products in your own stationary trade, i.e. pharmacy, hairdresser, “online shop“. This website requires LR’s prior fitness studio? approval. You are not permitted to directly sell LR products in such establishments. 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.
  • 43. Glossary 21% Level Bonus Level achieving 12,000 PV total sales in one In addition to the profit margin LR remits each month. partner a bonus retrospectively on the sum of all sales transacted per month. Bonus must be approved for payment of bonus on own sales 100 PV Regulation or group sales, by the fulfilment of the 100 PV regulation and total sales of at least 250 PV/ Each partner must at least achieve 100 PV month. own sales per month in order to receive a bonus. Bonus Line Academy The bonus-eligible level is each direct level achieving at least 250 PV total sales per The LR Academy comprises LR‘s entire month. 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 Downline Junior Team Leader Academy, Team Leader Day, Organization Leader Academy through to Downline is the course of the structure of each Silver Organization Leader Academy. The partner downwards, i.e. all partners registered seminar offer is supplemented by product by A, their partners and the partners thereof training, sales training, online seminars and belong to ”Downline”. The Downline branches online knowledge tests. continuously downwards at lower tiers. Car Bonus Own sales Special payment for partners who achieved LR Own sales are viewed as order values which a car qualification and have leased an LR car. partner generates himself in his own name and own account. Orders generated through end consumers also account for qualification to Car Plan own sales of the respective partner. 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.
  • 44. Service 43 Business Volume Inactivity Business Volume (BV) is a value assigned to each product. The percental bonus level A partner is viewed as inactive if he has no achieved through the generated PV shall be own sales for 12 months in succession. calculated on the corresponding BV and paid out to the respective partner in AUD. Level A level is a part of a structure and branches Total Sales continuously downwards Total sales of a partner comprise of his own monthly sales as well as the total monthly Partner sales of his structure developed by that time. Independent sales partner of LR who entered into a partner agreement with LR and runs the Group Sales LR business in his own name and on his own account. 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 Point Value Point value (PV) is the value assigned to every Profit Margin LR product. Based on the PV a partner achieves specified qualification and bonus Profit margin is the difference between the end levels. consumer price for the customer and the purchase price of the partner.
  • 45. 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.
  • 46. Service 45 Terms of Delivery & Payment 1. Methods of payment specifying grounds to return the new and c) Credit card – Master/VISA/Bankcard/Amex saleable goods in original packaging within Please keep in mind that credit card data two months following date of invoice against are not saved. We therefore kindly ask for product voucher. The date of expiry of the your understanding that your credit data product voucher shall be one year and shall must be collected again for every order paid be automatically offset against the next orders. via credit card. Sales aids and documents shall be precluded from return. d) Place of performance and jurisdiction is 2. Dispatch 59227 Ahlen. All orders of $250 and above FREE Delivery e) Alterations of range and prices shall be Order below $ 250. (Aus $9.00 + gst) reserved. (NZ $10.00 + gst) freight charges f) The legal provisions shall otherwise apply. g) Your contract partner: Essential details LR Health & Beauty Systems GmbH, > Your partner number Kruppstraße 55, 59227 Ahlen, > Your code number (only required if you prefer HRB 9874 AG Münster bank collection for orders placed via phone) Geschäftsführer: Dr. Jens M. Abend, > Order number incl. sub-number Thomas Heursen, Thomas Kircher, > Article description Tilo Plöger, Andreas G. Rutsch > 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. Other a) 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
  • 47. 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
  • 48. Service 47 Your goal 1) Visualize your goals 2) Make sure that you frequently see your “target image“, i.e. as screensaver on the PC or a photo in your wallet Your schedule 1) Keep a diary 2) Jot down all business and private appointments and take additional notes Calendar 13, 29.03. - 04.04. Fr: 17.30 - 19.00h Badminton danach in's alex (Starbox einpacken!) der Sa bine Ra Sa: 13.30h BP bei Herrn und Frau krämer 8 792 0176/6655 18.00h Happy Hour Party bei Daniela So: 16.00h geburtstag Ma 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 sa laris ! präsentieren fen ! -> Uhrzeit fix machen! anru