Tahitian Noni Blues

Monday, September 18, 2006

10 Year History of Tahitian Noni International from July 1996 to July 2006
- By Floyd Holdman
Morinda 1996. Chapter 1 begins.
• Build a company with values
• What defined us:
– Product
– Desire to be different in significant ways
– Home to beat up networkers
– Always err on the side of our distributors
• Original company structure intended to have 5 legs direct to the company. They ended
up sponsoring only 4. Today we have 3.
• Morinda/TNI or the founders have not sponsored any additional leg since June 1996 to
fill up the two missing legs.
Marketing Plan Evolution

1996:
• No dynamic compression
• Infinity Bonus was traditional, no DPE
• 8 level payout did not include double spot for Jade
• FSB (Fast Start Bonus) was 3 generation
• TPB (Top Performer Bonus) was a one time event for new Jades only
• BPB (Black Pearl Bonus) was for qualifiers only, no team bonus
• No compression for qualification
• No maintenance qualification for Jade, Pearl, or DP
• No personal rebate
• No preferred customer position
• Founder’s Club Promotions began

1997:
• Dynamic Compression was installed permanently
• Black pearl Bonus changed to team bonus, Black Pearl roll up began
• Infinity Bonus changed to pool bonus format (counting 20 levels)
• Diamond Pearl Elite added
• Personal Rebate added
• Fast Start Bonus changed to 5 generation
• 8 level Unilevel changed to allow two Jade positions
• Compression for qualification
• Maintenance qualification added
• Top Performer Bonus changed to pool bonus
• Preferred customer added
• Lead share began
• Outrigger and Black Pearl incentives began

1998-2003:
• Multiple positions discontinued
• Placement tightened
• Concierge Club program and incentives
• Millennium Bonus
• Case Autoship changed to conditional and unconditional
------------------------------------------------------

2003-Present:
• Placement volume qualification provision
• Black Pearl Bonus changed to allow maintenance qualification
• Black Pearl, Infinity Bonus, Top Performer Bonus pool allocation changed to CAS (Case
Auto Ship) levels 6, 8 and 20
• Success Path began
• TN Rewards Member Program
Founders have never personally participated in the plan.
The only company spot is the top sponsor spot.
Track Record:
• Profitable since year 1
• Top 10 in total sales of all MLM companies; youngest of the top 10
• Largest MLM company launched in the past 10 years
• Total sales of approximately $3.5 Billion USD
• Commissions of over $1.6 billion

Results:
Commissions paid since beginning: $1,634,820,229.00
Non commission bonuses: $27,366,194.00
Incentives/recognition/rewards/support: $62,650,000.00
Other promotions and awards: $10,772,000.00
Grand total: $1,735,608,423.00
Total of commissions, bonuses, incentives: 56% of CV (Commissionable Volume)
Original model was based on US business environment:
• Expenses
• Regulatory
• Legal
• Infrastructure
• Banking, payment, etc.
Expansion in Chapter 1 took us global
Reality of doing business globally
• Our business model restricts us
• Costs: Infrastructure, operating expenses, taxes, legal, transportation, social costs,
product registration, currency exchange
• Every other company researched has included a provision to balance this effect.
• Breakage, different qualifications, payment caps, etc.
• TNI has always treated business anywhere like it was in the US.
Examples of expenses:
• Novel Food in Europe. $4 million
• Russia Social Costs
• Japan banking transactions
• Europe Commissionaire
• Rent
• Salaries, utilities, etc.
--------------------------------------------------

Reality Check: It is not possible for TNI to continue to do business in many markets under their Chapter 1 business model. TNI cannot continue to lose money in any market. They must
maintain a minimum margin output from every market they do business in.

Fact:
85% of TNI sales come from 5 major markets:
• USA
• Japan
• Taiwan
• Germany/Austria/Switzerland
• Norway/Sweden/Denmark/Finland
97% of all profits come from those same markets
92% of all sales come from the top 12 markets. Add:
• Brazil
• Canada
• Mexico
• Australia/NZ
• Hong Kong
• UK
• China
These markets contribute an additional 1.75% in profit
8% of total sales come from remaining 65 (approximate) markets.
These markets contribute the remaining 1.25% of profit

Fact:
USA is our fastest growing market worldwide.
The near-term volume potential in our top 5 markets exceeds the rest of the world combined.
Beginning in 2006, TNI’s strategic objective is to focus the vast majority of their resources on
their top 12 markets with special urgent focus on the top 5.
TNI’s reorganization and preparation for Chapter 2:
• Adjust business model in all markets to reflect our focused strategy
• Support will be applied on a Tiered basis for Product, Success Path, Access Marketing,
Brand Building and other marketing programs.
• Tier 2 markets will be managed by a Regional General Manager over that geographic
region.
• Tier 3 Markets will be managed by a special corporate group reporting to Joel Neilson.
There are no changes to our Compensation Plan design.
Can a Tier 3 country become a Tier 2 country and Tier 2 become a Tier 1?
Yes it can:
• Upward Sales Trends
• Profitability Standards
• CAS Positive Retention
• Strong and Committed Leadership
-----------------------------------------

Newest Bonus Pool:
• Stock option pool from a pool amount of 5% of company
• Qualifications
– Black Pearls
– Club Marquises
– Global Executives
• Pool can be refreshed
• Vested
• Upside potential is substantial

Vested Stock Option Pool
Total company shares 33,000,000
5% for the pool 1,650,000
Offer is Limited - Current Pool Ends at the IPO Date
Timing is critical. The greatest value can be achieved right now.
Option value is calculated by deducting the current value from the market value at the exercise
date in the future. As the company grows and gains market value, the value of the options
increase.

Why is it strategically important for TNI to go public?
1. Capital for expansion and to execute Chapter 2
2. Reward current IPC Leaders and Key Employees
3. Attract new IPC Leaders and Key Employees
4. Prestige and Reputation
5. Public image is enhanced
6. Access to media and publicity
7. Discipline leading to greater return and longevity
Published Compensation Plan
Tahitian Noni International’s revolutionary 4 phase compensation plan is set to payout a full
53% of all commissionable volume from eligible markets in five ways:
• Personal Rebate: 20 % on all commissionable personal volume above 120 QPV per
month.
• Fast Start Bonus: 45% on all volume from new IPC’s from 5 fully compressed
generations. Paid weekly.
• Unilevel Commissions: 45% paid on 8 fully compressed levels. Dynamic compression
ensures that every distributor receives the maximum payout possible for their title.
• Global Bonus Pools: 8% of total commissionable volume from all fully supported
markets is contributed each month to 3 separate bonus pools:
Top Performer Bonus 2%
Infinity Bonus 3%*
Black Pearl Bonus 3%
*Infinity Bonus is paid on Infinity Bonus Volume.
• Vested Stock Option Pool: 5% of total company stock will be made available in the
form of stock options to qualified TNI Leaders. This allows one more significant way for
TNI Leaders to benefit from the success of the entire company.
-----------------------------------------------------

4th Bonus Pool
Previously Announced 4th Bonus Pool attached to Access Marketing will remain in place and
activated as soon as there are profits to share
Now is the Time
As you can see, there has never been a better time to be involved with Tahitian Noni
International than now. We have begun Chapter 2 and the Second Wave is coming! Are you
going to be standing at the station and wondering what just went by or are you going to be on the
train to Financial Freedom and Independence? Now is the time to make it happen.
We have the right product, we have the right leadership, we have the right company and we have
the best compensation plan.
I want to share a thought with you. Have you heard of Korczak? He is the sculpturist that was
carving the Chief Crazy Horse mountain memorial that is close to Mt. Rushmore. It is a
monumental undertaking. During nearly 36 years he refused to take any salary at Crazy Horse
Memorial, on which he worked until his death October 20, 1982 at age 74. It is bigger than Mt.
Rushmore and is still being worked on after his death many years ago. He made it his life's work
and now it is his children’s. He sent a letter to his children to encourage them to continue his
work after he was gone. The closing statement of his letter to his family reads:
"You will find in the darkest hours a feeling of great strength, of great satisfaction, of great
joy and happiness, in carrying out even the mundane tasks that go towards living for
something far greater than yourselves."
Let me ask you, how many lives are you going to effect this week by sharing Tahitian Noni
juice?

Thought for the Moment

1 Comments:

  • Noni juice works great! I love the taste.

    -hien
    www.dietingtracker.com

    By Blogger Hien, at 4:57 PM  

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