Yevo s Revenue Sharing Plan Effective: March 1, 2016 1
Changing Compensation Plan to Revenue Sharing Plan Yevo s Current Compensation Plan: Designed by outside consultants; a typical MLM comp plan benefiting the very few Encourages recruiting network marketers Discourages consumption (paid less for auto-ship orders) Favors the top few distributors (top 10% make 95% of income) At the expense of everyone else (majority not receiving checks) Requires expensive starter kits (barrier to become part of Yevo) Difficult to achieve early success (high attrition rates) Why the Change? Comp plan is at odds with our mission and promotes wrong behavior We believe everyoneshould benefit from our great foods and from a fair reward system We want everyone, everywhere consuming Yevoand being successful So we are changing to a simple Revenue Sharing Plan that: Encourages consumption Has no barriers Has immediate success for everyone 2
Yevo s Revenue Sharing Philosophy If newcomers and people with small groups of friends can win, we all win. 3
Revenue Sharing Plan Key Objectives 1. Consumption 2. Financial success is a by-product of consumption and sharing 3. No cost to participate (except your personal consumption) 4. No barriers Simple to explain & to understand 5. Calls to action: Free food reduce the family s living expenses! Double first month payout 6. Entrepreneurship made easy Immediate success Success for all 7. Utilize social networks to succeed 8. No longer an MLM Company We are a Social Networking Company 4
Who does well with the New Revenue Sharing Plan? Short term People with friends consuming Yevo ~90% of our group will have bigger rewards immediately People who have a small group of friends People who focus on selling products, not on recruiting New people joining Yevo:no costs, no barriers, designed for immediate success Most of the top 10% will do worse initially until they move from deep to wide groups Transition period Everyone s income is protected for 6 months (see slide 16) Long Term Revenue Sharing Plan is designed for everyone to succeed, not just the top 10% Everyone should do better: The Revenue Sharing Plan address the 4 problems of the MLM industry: High attrition rates, immediate success, newcomers doing well, easy referral Starting February 15 th, 2016, we ll have a Revenue Share calculator, where you can enter simple assumptions 5
Everyone is a Customer To join the Yevolution, become a customer first: 1. Try it. 2. Buy it. 3. Become an Essential Customer. 4. Become a Nutrition Advocate. Share Yevo with your Friends, and share in Yevo s revenues. 6
Essential Customer Benefits Free Shipping on 43 for Life Plan (monthly orders) 25% off Retail Prices Get 43 Essential Nutrients Everyday! 7
Nutrition Advocate Share Yevo with Friends No Cost to Join Free Materials (digital) Same Benefits as Essential Customers Revenue Share 8
Requirement to become a Nutrition Advocate Not much: Your monthly purchase for personal consumption is $100 or more Then introduce your friends to Yevo: You automatically become a Nutrition Advocate Just need to provide your SS# If any friends purchase Yevo products, become an Essential Customer or a Nutrition Advocate, you participate in the Revenue Sharing Plan We eliminated traditional MLM features: No Leg Requirements No Volume Requirements (except your monthly personal consumption) No Ranks we are all important and we will recognize performance No Starter Packs we have free trials No payment for materials free digital assets 9
Key Elements of Yevo s Revenue Sharing Program 4 simple, easy to explain and rewarding elements 1. Revenue Sharing: two options: Wide Wide and deep 2. Double the First Month Payout: First month of new customer net revenues Call to action #1: Early success 3. 43 for Free: Enroll 3 Essential Customers, and get Yevo Food Credits equal to the lowest of the three monthly order values Call to action #2: Food for free for as long as you have customers 4. Double your Revenue Awards via food credits Designed for middle class to reduce food bill 10
Revenue Sharing Program two options Two Options: 1. Simple Revenue Sharing: 20/10/5 (default) Your Friends: 20% Your Friends of Friends: 10% Your Friends of Friends of Friends: 5% 2. Optional Leadership Plan: 20/10/1 (for 15 levels) Instead of 5% on your Friends of Friends of Friends 1% on levels 3 to level 17 Requirements: Have at least 10 direct Essential Customers Must grow Friends or Friends sales (rolling 9 months) 11
Double 1 st Month Revenue Sharing Add a customer, Double your income! 1 st 30 days Encouragement to get started Incentive to keep going Revenue Sharing for first Month: Your Friends: 40% Your Friends of Friends: 20% Your Friends of Friends of Friends: 10% 2% on Level 3, if you choose 20/10/1 plan 12
Eat for Free!! Yevo s 43 for Free Program Yevo solves the biggest living expense for many families: FOOD! 43 for Free Program: For every 3 Essential Customers you enroll, you get free food Unlimited: Sign up another 3 friends, you get more free food Eat healthy, forever! 13
Double Your Revenue Sharing Yevo wants everyone to get their 43 Essential Nutrients, daily Option to convert cash Revenue Share into Food Credits 2x conversion factor Yes, you can double your Revenue Sharing! 14
Don t need cash, then Feed the World! 43 for Kids Mission: Provide Essential Nutrients to children with food insecurity Donate some or all of your Revenue Sharing to 43forKids 501(c) 3 Yevo will match in food, dollar for dollar, your donations Goal: 100% participation from Nutrition Advocates 15
Timing Implement March 1, 2016 All new Nutrition Advocates are part of the new Revenue Sharing Plan Anyone who enrolls in February will be part of current Comp Plan for 1 month March & April payouts End of month Staring May 1, 2016, we will make weekly payouts: a) Revenue Share will be paid weekly i. Exception is levels 3-17 on Optional Leadership Plan, which will be paid at month end b) Other elements or Revenue Sharing Plan will be paid monthly 16
Timing Prior Distributors All Distributors who were a part of Yevo prior to February 1 st : Pay higher of average of January and February Comp plan results, or new Revenue Sharing Plan As long as growing Friends who are consuming product (level 1) 6 months of higher of average of January and February or Revenue Sharing Plan September Everyone on Revenue Sharing Plan Except South Korea Market where people purchase MLM products for consumption Leave alone and will stay on current compensation plan 17
Other Details Payout: Up to 50% of Net Sales Because of Food Credits, the value to Nutrition Advocates is higher Monetized Food Credits into cash @ 25% One time switch from 20/10/5 to 20/10/1 (for 15 levels) 18
Nutrition Advocate Start with the Mission: very first question for Nutrition Advocates making the world better! Question for each new Nutrition Advocate Do you want to participate in Yevo s Revenue Sharing? If so, great! If not, Yevo will donate, dollar for dollar the value in foods to 43forKids, what you otherwise would have received 19
Direct to Yevo Shop on www.yev043.com lowers the barriers to become a customer 15% of net sales from shop will be shared with all Nutrition Advocates FB strategy: create shareable posts that will drive customers to Nutrition Advocates sites, not yevo43.com 20