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CEO Derek Hall

CEO Derek Hall. GOOD VIBRATIONS. Political Challenges for 2011 The Dietary Supplement Industry remains under the gun…our opponents will continue to seek ways to have us over-regulated.

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CEO Derek Hall

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  1. CEO Derek Hall

  2. GOOD VIBRATIONS

  3. Political Challenges for 2011 • The Dietary Supplement Industry remains under the gun…our opponents will continue to seek ways to have us over-regulated. • The 112th Congress looks different from its predecessor, but we still face challenges from both sides of the aisle.

  4. Political Challenges of 2011 • Congress could still pass harmful legislation such as pre-market approval for herbal medicines. • We expect that FDA and FTC will continue to increase their level of enforcement. • GMP inspections to increase • FTC requesting two double-blind placebo controlled studies for substantiation, are areas we continue to monitor.

  5. Congressional Activities H.R.3406 - Amends the Internal Revenue Code to exclude from gross income amounts reimbursed by an individual's employer for dietary supplements and meal replacement products. H.R.2297 - Requires the President to call a White House Conference on Food and Nutrition. H.R.1324 - Amends the Child Nutrition Act of 1966 to improve the nutrition and health of school children.

  6. Why do we have to continually look over our collective shoulders as an industry?

  7. Qivana and other companies like us reside in a “non establishment” sector of United States commerce.

  8. Why is that? • We are not part of the traditional distribution model of retail store front selling • We are not part of, nor are we recognized as a legitimate contributor to the traditional American Health (Sick) Care equation

  9. More… • Big Pharma owns a huge chunk of the network television and cable channel air time, plus newspaper advertising • These media outlets enjoy huge profits from that advertising • They intend to protect those profits

  10. And There’s More… • The Network Marketing sector is huge and growing faster than the retail sector • Within 5 years the sales of dietary supplements through the MLM channel will exceed sales through retail outlets

  11. What can we do to change things? • We must educate Congress so they understand our industry • We must change the way the establishment looks at human health care • Champion “prevention” as the way to stem the tide of poor health and the spiraling costs • Champion the move from a “sick care” system to a “health care” system

  12. Washington D.C. Wednesday, April 6, 2011

  13. Ackerman (D-NY) Alexander (R-TN) Bishop (R-UT) Blunt (R-MO) Brown (D-FL) Burr (R-NC) Camp (R-MI) Cantor (R-VA) Chambliss (R-GA) R( Cleaver (D-MO) Courtney (D-CT) Crapo (R-ID) Cornyn (R-TX) Joe Wilson (R-SC) Hatch (R-UT Hutchison (R-TX) Issa (R-CA) McCain (R-AZ) Ron Paul (R-TX Pence (R-IN) Ruppersberger (D-MD) KEY SUPPORTERS OF THE DIRECT MARKETING INDUSTRY Shelby (R-AL) Voinovich (R-OH)

  14. Excellence in Education • Promote New Science • Manage Illegal Product Claims

  15. The New Board: • CEO – Contract Manufacturer • Owner - Health Food Store • Consultant - Alternative Care Practitioners • CEO – Medical Foods Company • CEO – Industry Data Collection Service • CEO – Vitamin Company • VP – Private Label Manufacturer • CEO (2) – Network Marketing Company

  16. Growth Rates in Independent Business Owners

  17. 2009 Estimated IBOs: 16.1 million

  18. Percent of Sales by Major Product Groups (Network Marketing)

  19. Sales Strategy(as a percent of sales dollars)

  20. Independent Business Owners by Gender

  21. 2009 IBO Statistics: • 16.1 Million people working from home full-time • 13 million working from home part-time and increasing by over 600,000 people per year • Average work from home income $59,250 per year • 84% recommend working from home to others • 20% of home based entrepreneurs said that their business grossed between $175,000 and $600,000

  22. The “Great American Dream” is highly threatened and may be gone! • Official U.S. Government reports - 4 million jobs have been eliminated in the past 10 years. • 55% of all jobs created in the next 10 years will be near minimum wage in stores, restaurants, and bars. • 90% of all the people in North America earn less than $40,000 a year.

  23. The Bureau of Labor Statistics says: • Out of 100 people that start working at the age of 25, by the age of 65: • One is wealthy • Only four have enough money to retire on • 63 depend on social security or charity • 29 are deceased • 95% of people, age 65 and over can’t afford to retire and they work until they die • So What Happened to Safety & Security?

  24. In J. Paul Getty's book "How To Get Rich", his first rule for success is, "You must be in business for yourself. You will never get rich working for someone else."

  25. The Unstoppable Disablers: Four Forces Driving Change Entrepreneur Magazine – November 2010

  26. The economy has been in recovery since June 2009. • 71% of the workforce is waiting for economic indicators to rise before they're willing to hire and spend. • The world is screaming for innovation, and companies (people) can capitalize on the resources they already have to spark the next possibilities.

  27. The US Health (Sick) Care sector has never been more vibrant • Q2 revenues for last year were $459.8 billion, up 2.3% from 2009 • 10 of the 20 fastest-growing occupations are healthcare-related • The sector will generate 3 million jobs between 2011 and 2018, more than any other industry

  28. We’re busier than ever and our money is tight, but it's not stopping us from staying in shape. • Folks are pursuing easy and cheaper ways to work out and created a boom in the fitness sector. • Fitness clubs and health stores are now a $41.4 billion industry – up a billion from a year ago. • Gym memberships have grown steadily throughout the recession, 10 million of them joined in 2009.

  29. The 76 million-strong demographic is making headlines again • Would-be retirees are taking over the workforce • 62% of working boomers expect to stay in the labor force for at least nine more years • By 2020, 80% of North American-born workers will be older than 50 and Boomers will have a lot of power • RED – Retired and Extremely Dangerous

  30. *In Millions

  31. The Leaky Bucket

  32. OTC SALES – THROUGH RETAIL OUTLETS

  33. Are We in the Right Distribution Model? • Fortune magazine called direct selling "the best kept secret in the business world." • 91% growth in the last 10 years with annual sales in excess of $30 billion in the United States, and $100 billion worldwide. • Financial experts say it's a “recession proof” industry. • Billionaire Warren Buffet, called it the best investment he'd ever made. • Tom Peters, author of In Search of Excellence, calls it the first truly revolutionary shift in marketing in the last 50 years.

  34. IT’S A JUNGLE OUT THERE!

  35. Just a teeny bit further and the boat would have floated

  36. Bugatti Veyron Value: $1.7 million

  37. Six Key Factors Necessary to Create a Successful Network Marketing Company

  38. Timing – It has been said that timing is everything and for certain network marketing ventures that has been very true.

  39. 2. Innovation – this is an industry where you either innovate or evaporate.

  40. Products – It’s not possible to exist anymore on the premise that it doesn't matter what the product is, as long as the business opportunity is strong enough.

  41. Compensation – Many network marketing start-ups believe that the compensation plan is by far the most important single issue. • I agree that it’s important, but it’s absolutely not the most important factor for success.

  42. 5. Recruiting Strategies - If there is one thing that is arguably more important than anything else it is the method used to attract people and how to keep them.

  43. Technology/Support Tools – Anything from “high tech” to “high touch” tools that tell the company story must be available at an affordable cost.

  44. You Can Count on the Q!

  45. We have the scalable product model • 9. We have a proven management team • 8. We have the proven field leaders • 7. We are setting first and second year growth standards for our industry • 6. We listen and respond to you • 5. Your owners are available to you

  46. 4. We are running the Company as a “for profit” venture and will remain profitable and cash flow positive 3. Your five owners actually own all of the Company’s shares 2. Your five owners are in this for the long term • 1. WE HAVE YOUR BACK!

  47. We have the best new company in network marketing and we’re poised for huge growth for many years to come.

  48. Immerse yourself in the business and commit to be part of this fantastic journey we call… Qivana

  49. THANK YOU!

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