Become an Amsoil Dealer

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How to Begin and Build Your AMSOIL Business

T- 1 C E R T I F I C AT I O N S E R I E S BOOK 1


Welcome to AMSOIL, and please accept my personal congratulations. You are now an independent AMSOIL Dealer. What lies before you is an opportunity that can truly change your life. For nearly 40 years AMSOIL INC. has built its reputation on quality, innovation and a solid commitment to AMSOIL Dealers. I’ve seen tens of thousands of people of all different ages and from all different backgrounds build successful AMSOIL Dealerships. And while I can’t promise you instant riches, I can guarantee that with your determination and the support of AMSOIL, you, too, can create a very rewarding business for yourself. Please review this introductory material, then begin setting goals for your AMSOIL business. While you are encouraged to begin at a comfortable pace, please keep in mind that your potential is unlimited. Whether you seek freedom from your nine-to-five job, financial independence, retirement security or simply tuition money for your children’s education, it is all possible with AMSOIL. Once again, welcome. I look forward to watching you grow and succeed in your AMSOIL business. Sincerely,

A. J. Amatuzio President and CEO

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History For 25 years Lieutenant Colonel A. J. “Al” Amatuzio piloted the most advanced jet aircraft in the world. He came to depend on the synthetic lubricants that withstood the severe demands of supersonic flight and kept his jet engines running and his crew in the air. Amatuzio reasoned that if synthetic lubricants were the only lubricants tough enough to work in jet engines, why not apply those same tremendous benefits to the engines of automobiles? By 1972, Amatuzio had assembled the most creative minds in the field, and under his leadership the world’s first synthetic motor oil to surpass American Petroleum Institute (API) service requirements was introduced.

Company The AMSOIL corporate headquarters, manufacturing plant and chemical and test laboratories are located in Superior,Wis. State-of-the-art facilities and specialists in every facet of lubricant technology assure unparalleled quality standards. A dedicated corporate staff provides a full range of Dealer, customer and technical services, while 14 distribution centers throughout North America and Puerto Rico keep pace with the ever-increasing demand for AMSOIL products.

Products Since the introduction of AMSOIL synthetic motor oil in 1972, AMSOIL has gone on to develop the most extensive line of synthetic lubricants and automotive products in the world. The history of AMSOIL product introductions is a checklist of industry firsts. AMSOIL synthetic two-cycle oils, gear lubes, greases, automatic transmission fluids, and high-tech Ea Air and Oil Filters are concrete testimony to AMSOIL innovation. Today, virtually all other oil companies have recognized the superiority of synthetic lubricants and manufacture synthetics of their own, but AMSOIL remains “The First in Synthetics.” This commitment to innovation is not confined to the automotive market. The ALTRUM line, a complete line of health-enhancing products, and AGGRAND natural lawn and garden products deliver the outstanding quality that is the foundation of the AMSOIL opportunity.

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Opportunity There has never been a better time to begin an AMSOIL business. The demand for AMSOIL products is on the rise, and independent AMSOIL businesses throughout the world are growing like never before. AMSOIL offers a wide selection of sales programs that provide Dealers with profitable business opportunities unattainable with any other franchise or direct sales company. And most important, the AMSOIL opportunity is rock-solid. AMSOIL INC. is a company you can count on not only for top-quality topproducts and dedicated corporate support, but for stability and an opportunity you can trust for your future. stab Pe Personal Sales As an AMSOIL Dealer, you purchase AMSOIL products at D Dealer cost and then sell them at the suggested retail price. Y Your income starts building immediately with retail proďŹ ts aand commission bonuses. Building Your Sales Group By offering others the AMSOIL opportunity and sponsoring them as Dealers you expand your market potential and maximize your profits. The commission value of your p per personal group is added to yours, increasing the percentage of you your commission and giving you a larger commission check. The more Dealers you have in your organization, the more pro profits you make. In addition to registering new Dealers, you may also wish to re register Preferred Customers. P Preferred Customers are people who are not necessarily iinterested in the AMSOIL business opportunity, but who may be in the future. The Preferred Customer Program allows such people to purchase AMSOIL products at wholesale cost. For a fee of $20 a year, or $10 for six months, a Preferred Customer has access to all AMSOIL, A AGGRAND and ALTRUM products at Dealer cost. Catalog Sales Mail-order catalogs are used by many of today’s most successful retail companies. AMSOIL Dealers can distribute AMSOIL Retail Catalogs to thousands of potential customers. When they order from your catalog, AMSOIL takes the order and ships the product. You receive the retail profits and sales commissions.

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Online Sales AMSOIL Dealers may maintain and promote personal websites for their AMSOIL businesses on the Internet. AMSOIL provides a customizable website template Dealers can use to build their own sites. This template is included when signing up for the Premium Dealer Zone. There is a 90-day free trial period, after which there is a fee of $9.95 per month for the Premium Dealer Zone. AMSOIL also provides Basic Dealer Websites for $30 the first year, and a $20 annual renewal fee. To sign up for a Basic Dealer Website download the Dealer Website Options and Policies Form (G1781) from the Dealer Zone under Online Forms, Complete List of Forms. Dealers also have the option of building their own websites. There is no cost to link to the AMSOIL site, and the necessary links are detailed in the Dealer Zone under the Miscellaneous section. Retail-on-the-Shelf Sales Retail-on-the-shelf accounts are retail outlets such as auto parts stores and hardware stores. If the store is part of a chain of 12 or more it must have the authority to establish an account and place individual orders. These stores stock AMSOIL products on their shelves to sell to their customers. Once you’ve established a retail account, AMSOIL extends them credit, takes their orders, ships their product, invoices the product and collects the payment. You receive the commission check. [(For more information see the Retail-on-the-Shelf Kit (G1001), and the Commercial and Retail Marketing Procedures (G1097)]. Commercial Sales Commercial accounts are businesses that have vehicles, equipment and machinery that use AMSOIL products. Again, once you’ve established a commercial account, AMSOIL extends credit, takes the orders, ships the product, invoices the product and collects the payment. You receive the commission check. [(For more information see the Commercial Sales Kit (G1007), and the Commercial and Retail Marketing Procedures (G1097)].

Ordering Product Whether for your own use or personal retail sales, ordering product is the first step in beginning an AMSOIL business. To order AMSOIL products refer to the AMSOIL U.S. Wholesale Price List (G3500, G8500 in Canada). To order ALTRUM products refer to the ALTRUM U.S. Price List (G326, G8326 in Canada). For literature and sales aids refer to the Literature and Sales Aids Price List (G15). In addition to pricing, these documents include limited information on sales tax and freight and handling. Additional,

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account-specific ordering information is available separately (G2604, Dealer; G2603, Retail-on-the-Shelf; G2602, Commercial). AMSOIL INC. offers four methods by which product can be ordered. Each is fast and easy. Once ordered, AMSOIL, AGGRAND and ALTRUM products will be shipped directly to you, or you may choose to pick them up at the AMSOIL Product Distribution Center nearest you. Distribution center locations and phone and fax numbers are listed in your AMSOIL product price list. It helps to know air filter and oil filter numbers when ordering. This information is available in the Filter Application and CrossReference Guide (G3000). For lubricant recommendations and application quantities, see the AMSOIL Product Guide (G50). The fastest and easiest way to find product application information for filters and lubricants is to use the Online Product Application Guide at www.amsoil.com. The Online Application Guide contains all AMSOIL application information for all AMSOIL products. Finally, AMSOIL telephone ordering operators can assist you if you are unsure of the filters, lubricants and quantities you need.

Ordering Internet Ordering Internet ordering provides fast, convenient order placement 24 hours a day, seven days a week. Visit www.amsoil.com and log in to the Dealer Zone. If you have yet to open an account, the process couldn’t be easier. Simply click the “First Time Logging In” link in the gray sidebar on the left-hand side of your screen. Enter your ZO# in the box labeled “Account Number” and provide your email address. Click “Submit” and an email message with instructions on setting a password will be sent to you. Once in the Dealer Zone, click the “Online Store” link and choose the products you want. Click the “Checkout” link to complete the order. You can have the order shipped directly to you or arrange for pick up at the AMSOIL Distribution Center nearest you, eliminating shipping costs. To locate an AMSOIL Distribution Center, refer to the AMSOIL Distribution Center Locations Flyer (G92). Telephone Ordering By calling 1-800-777-7094, Dealers place orders through an AMSOIL representative. The order is entered, confirmed and calculated including tax and freight. The Dealer pays over the phone with a MasterCard, Visa, Discover Card or an AMSOIL Sales Draft. An AMSOIL sales draft works much like a check, without having to write or mail one. AMSOIL forwards the sales draft to the Dealer’s bank, which in turn transfers the money from the

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Dealer’s checking account to AMSOIL. A $15 annual fee payable in January of each year applies to use the AMSOIL Sales Draft Plan. For more information, contact the AMSOIL Dealer Services Department and request the G154. Orders placed via phone may be picked up at the AMSOIL Distribution Center nearest you. If paying by personal check, a MasterCard, Visa or Discover Card must be provided to the telephone representative to hold the order.You may then pay the Distribution Center Manager by personal check at the time of pick up. Distribution Center Orders AMSOIL Dealers can order directly from an AMSOIL Distribution Center by mailing or personally bringing the Distribution Center Order Form (G29) to a Distribution Center. Dealers can order product, literature and promotional items with this form. Payment may be made by MasterCard, Visa, Discover Card or personal check. Cash is not accepted. For G29 forms sent via mail, orders containing slight Dealer miscalculations will be processed, with the Dealer credited or charged the difference. Orders with large discrepancies will be returned to the Dealer for recalculation Dealer-to-Dealer Sales Many Dealers place their first product orders with their sponsor or Direct Jobber because these experienced Dealers can assist new Dealers in understanding the ordering process. Dealer-to-Dealer sales are recorded on the Transfer of Commission Credit Form (G1). When this is submitted, the proper commissions can be paid to each Dealer. The G1 MUST BE COMPLETED AND SIGNED BY THE SELLING DEALER AND MUST BE SUBMITTED TO AMSOIL BY THE PURCHASING DEALER. The G1 must reach AMSOIL INC. by 3 p.m. on the sixth of the following month. If the sixth is on a Saturday or Sunday, it moves forward to the last business day. Like your personal checking account, the selling Dealer must have sufficient personal commission credits for the month to cover the commission credit transfer. Although a Dealer is not required to transfer commission credits to personally-sponsored Dealers, the sponsor must pay them the proper commissions on the product purchased. The sponsor will also have to issue a 1099 tax form at the end of the year to each Dealer handled in this manner. The selling Dealer is entitled to recover expenses such as Dealer cost and freight charges from the purchasing Dealer. In addition, a small service charge may be added to cover time spent processing the order (5 to 10 percent service charge is common).

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Corporate Support AMSOIL provides brochures, catalogs, videos and other promotional and sales support materials specifically designed to aid you in your efforts. In addition, the company publishes AMSOIL Magazine each month, an invaluable sales resource filled with new product information, sales tips and technical discussions. And of course, all AMSOIL resources and an abundance of valuable information is available at www.amsoil.com. The professional corporate staff at AMSOIL is standing by to assist you every step of the way. Technical support from the AMSOIL corporate headquarters in Superior, Wis., is only a phone call away, and Dealer training programs focusing on successful sales and marketing techniques occur on a regular basis throughout the country. Sponsor support and Dealer meetings are an integral part of the sales network’s built-in support system. You’re never alone with AMSOIL.

Administrating Your Business Book 2 of the T-1 Certification Series, How to Administrate Your AMSOIL Business (G1306), provides tips and information necessary to run your AMSOIL business efficiently. AMSOIL recommends employing basic good business practices like adding voicemail to your business line and purchasing liability insurance for your Dealership. Additionally, one of the most important steps you can take toward running an efficient business is to keep accurate records of business expenses and income. AMSOIL Dealers have two major sources of record-keeping. First is the accounting services offered by AMSOIL, including state/provincial sales tax collection, payment of personal group commissions and the issuance of Federal Income Tax Form 1099 to personal group Dealers. AMSOIL also offers a variety of monthly bookkeeping packages. The second source of record-keeping is the steps you can take to provide complete accountability for all your business transactions. These include a separate checking account for your AMSOIL business, keeping all sales receipts and recording inventory. On the 15th of every month, AMSOIL mails a commission check to Dealers who earned at least 100 commission credits for the previous month. The check stub will show how your commissions were earned. A Statement of Account listing every order or transaction to your account for the previous calendar month is attached to each check. When you have established commercial and retail accounts, AMSOIL will send a Commercial/Retail Account Bonus check on the 18th of each month for all orders paid in full during the preceding month. How to Administrate Your AMSOIL Business provides detailed information designed to help you run your AMSOIL business. AMSOIL products and Dealership information are available from your local AMSOIL Dealer.

AMSOIL INC., AMSOIL Bldg., Superior, WI 54880-1527 (715) 392-7101 Printed in U.S.A. © Copyright 2010

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