          
          
          
          An MLM Plan In Action
          
          
               For a look at how an MLM compensation plan may
          work, here is a look at the structure used by Watkins. 
          It's a good illustration of how the best MLM
          compensation plans are structured.
               The income plan is based upon a four-week "sales
          campaign" schedule.  At the conclusion of each campaign
          (there are thirteen campaigns in a year, so you
          actually get paid 13 times instead of 12), your "Group
          Retail Volume" (the total retail amount of your
          purchases from Watkins plus those made by your
          customers directly through Watkins and those made by
          your downline representatives along with their
          customers) will be used to determine your campaign
          retail income percentage.
          -------------------------------------------------------
          ----------
                Representative Campaign Retail Income Chart
          Group Retail Volume                Campaign Retail
          Income %
          $40 to $139                             28%
          $140 to $379                            33%
          $380 to $749                            38%
          $750 to $1,139                          41%
          $1,140 to $1,859                        43%
          $1,860 to $2,679                        45%
          $2,680 to $3,699                        47%
          $3,700 and above                        48%
          -------------------------------------------------------
          ---------
               You earn the retail income percentage on all
          regular product purchases made by you directly or made
          by your customers through Watkins.  In addition, you
          will earn the difference between this percentage and
          the retail income percentage earned by each first level
          downline representative in your group.
               Your total campaign income will be the sum of:
               1.   Your campaign retail income percentage
                    mutliplied by the retail amount of your
                    regular product purchases and those of your
                    customers ordering direct with Watkins.  The
                    income on your purchases at the beginning of
                    a campaing may be at a lower income
                    percentage initially, but the final campaign
                    income will be determined by combining all
                    purchases during the campaign, and you will
                    receive any additional income due you because
                    of an increased income percentage.
               2.   Each of your downline representatives (those
                    you have recruited) will also be
                    participating in this income plan, and since
                    their individual campaign volumes are added
                    to yours to determine income percentage, your
                    income percentage will often be greater than
                    theirs.  You will earn the difference between
                    your income percentage and their income
                    percentage on each first level (one you
                    recruited directly) downline representative's
                    campaign volume.
               For example, if your personal orders from Watkins
          during a campaign totalled $400; and the four first
          level representatives in your group each had personal
          orders of $300; then your total group volume for that
          campaign would be $1,600 and the income percentage on
          your personal orders would be 43%.
               You would then also earn the difference between
          the 43% and the percentage that your first level
          downlines earn.  In this example, with each
          representative selling $300 in product, their income
          percentage would be 33% on their volume, and you would
          earn the additional 10%.
               To calculate your total campaign retail income in
          this example:
               $400 (your personal volume) x 43%
                    (your campaign retail income)           =    
          $172
               $300 (first downline represenative's volume) x 10%
                    (income percentage difference           =    
          $ 30
               $300 (second downline representative's volume) x
          10%
                    (income percentage difference)          =    
          $ 30
               $300 (third downline representative's volume) x
          10%
                    (income percentage difference)          =    
          $ 30
               $300 (fourth dowline representative's volume) x
          10%
                    (income percentage difference)          =    
          $ 30
          $1,600 total group volume
          Your total campaign retail income                      
          $292
          
          
          Business supplies can raise your percentage level
          
               Watkins makes materials available for business
          development -- such as catalogs, brochures, videos,
          etc. -- and no commission is paid on these items.  But
          the value of the items is added to the group volume for
          the purpose of determining your campaign retail income.
          
               You can only make money with substantial product
          sales.  Thus, make sure you're offering a good product
          before signing up with an MLM company.
          
          
          
