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Essential Edge News

THE

NEWS FROM THE WORLD LEADER IN ESSENTIAL OILS

Volume 3.1 | Jan. 2013

Founder’s Message All of us have dreams. We all want to be something better, do something more, and leave our mark on the world. Some crave the latest and greatest; others seek comfort and peace; some seek fame and affluence. Whatever your dreams, own them and work for them. They are worth the pursuit.

Our dreams are the driving force that motivates us to reach higher and pursue more diligently that which we most desire. At Young Living, we strive to realise the dream of wellness, purpose, and abundance. How committed are we—collectively and individually— to making this dream a reality for ourselves and for others? As a new year begins, let’s all rededicate ourselves to the realisation and transformation of this most important dream.

One thing I’ve learned about dreams is that you can’t achieve them by only dreaming about them.

Realising dreams requires a plan, a pathway, and a focused effort. Mary and I have spent countless hours over the past year creating what we believe is an even better pathway, a fun, exciting, and rewarding pathway to reaching wellness, purpose, and abundance. This blueprint is the new Young Living compensation plan.

As you understand the changes and start implementing them in your business, we are confident you will love it. It will build a strong organisation that will transform to sustainable happiness and prosperity—a dream all of us can pursue, the dream of a Young Living life of wellness, purpose, and abundance—and let us share our dream with the world.

YOUNG LIVING COMPENSATION PLAN

“How will these changes affect me?”

To Our Young Living Distributors: The launch of the changes in our compensation plan is here, and there is much excitement everywhere.

People are anxious to start building within this new structure because of its simplicity to teach and build with the anticipation of growing faster to enjoy the many innovative payouts.

However, as with any change, there are always questions about the transition between the previous plan and the new one—here are the answers!

SIX-MONTH TRANSITION PHASE I For six months from January 1, 2013, to June 30, 2013, your rank according to our current plan will be used to calculate your compensation. As you build in the new plan and achieve a higher rank than you currently have in the old plan, your commission will naturally be calculated based on your new achievement. For this six-month period, both plans will run side by side, and you will be paid according to the new plan, but with the highest rank achieved in either plan.

For example, if you are a Gold or an Executive and you do not have the needed third leg for Gold or second leg for Executive, you will be qualified as a Gold or Executive respectively for six months, giving you time to build the leg that you need so that when July 1, 2013, arrives, you will have built the leg that you need in order to maintain your rank.

If your check should go down a little, it is because of one or more of three things: 1. The natural variance of volume that happens every month.

2. The structure of your organisation is not the best to maximise the payout.

3. Your commission has been built relying on the Team Performance Bonus, which is being eliminated over the course of six months.

Please note that we will continue to have the same rich and abundant overall payout as we have had with the

old plan. This new plan allows us to pay out these same significant dollars in a way that will help all of you build for more sustainable growth for the future and encourage new individuals to join Young Living.

TEAM PERFORMANCE BONUS Unfortunately, the Team Performance Bonus was based on a particular structure outside of the commission payout and paid in addition to the commission earned.

This bonus rewarded people for building in a way that was not sustainable for us as a company and you as a distributor. As the amount of this bonus would have grown, Young Living would have paid an excessive amount in the total commission payout. For this reason, this bonus must be eliminated in order to ensure that we continue to be the financially stable company you have grown to expect from Young Living.

However, new, exciting bonuses have been added to our new plan, which are part of the commission structure. As the volume grows and distributors advance in rank, everyone’s commission will increase, which will strengthen our distributors and Young Living’s place as the World Leader in Essential Oils’.

In order to help those who will be losing the Team Performance Bonus, we have determined that we will pay half of the bonus beginning in January and then reduce it each month until June, or when it is gone, whichever comes first. The last payment will be June 2013.

Because of the simplicity of the new plan, we believe that it will be easy to build and exceed the loss of the Team Performance Bonus very quickly. Now your focus needs to be on simply building leg volume. By maintaining your rank for six months, most distributors will not see a huge change in their checks. According to our analysis of the new compensation plan, 83% of our distributors increase or maintain the amount of their current checks. Only 4.7% are negatively affected below 80% payout, and we are working to help those distributors. Almost everyone understands what to do, and most are working diligently to correct and rebuild the structure that they have to Continued, see TRANSITION on page 2

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NEW COMPENSATION PLAN FAQs KEY QUESTIONS Q: Why is Young Living making changes to the compensation plan?

A: We have adjusted the compensation plan to put success better within the reach of our distributors. With this new plan, you can earn more through growing your organisation, avoid reaching a plateau in growth, and receive compensation from 45–47% of the company’s commissionable sales—well above the industry average of 38–42%.

Q: I have been building my business on the model of the Team Performance Bonus, but that bonus is going away. How is Young Living going to take care of me?

bring their checks back up to 100% of the amount of their current checks.

In the new plan, all of the intended percentage of the plan will be paid out with no breakage. Other plans in the industry look enticing with lucrative bonuses, but they are difficult to achieve, and it is only to the company’s advantage when the distributors fail to meet the requirements.

We want to pay out all of the commission as shown in the plan and are thrilled for the advancement and success of our distributors.

We are very impressed with the attitude of our distributors. All of us at Young Living are deeply involved in helping, and we so appreciate the support and positive attitude of our leaders. They are analysing their organisations and looking to see who needs help and then working with those in need to build in a positive way to achieve maximum results and payout in the new commission structure.

Young Living and the distributor field have become one in making this the most positive and successful transition possible.

TRANSITION PHASE II Beginning July 1, 2013, all commissions will be calculated and paid out according to the new compensation plan.

In anticipation of this transition, now is the time to start building. As you achieve a higher rank, your commission check will increase; and as you help distributors in your organisation achieve a higher rank, their commission checks will increase, as will yours. The more you help others achieve, the more everyone will see an increase.

It is going to be very exciting to see everyone’s efforts rewarded as we grow together. We see renewed motivation and activity everywhere. We are thrilled to see such a positive response and look forward to this great transformation into the new year.

For up-to-the-minute training and details on the new Young Living compensation plan, be sure to attend at least one of our special webinars. Visit the World Map of Events on youngliving.com for the training webinar schedule.

You are a valuable member of the Young Living family, and we thank you for your support and dedication.

A: The Team Performance Bonus will not disappear right away. For six months after the implementation of the new compensation plan, qualifying distributors will earn both the Team Performance Bonus at a reduced amount of 50% (and decreasing 10% every month for six months) and the new Rising Star Team Bonus. When you qualify for the Rising Star Team Bonus for the first time, the 24-month time limit will begin.

We look forward to rolling out the new compensation plan and enjoying a spectacular 2013 together.

Gary and Mary Young

Q: Can I earn the Team Performance and the Generation Leadership bonuses at the same time?

A: Yes, as long as you meet all qualifications for both.

Q: How does the “grandfathering” plan work?

A: Because we want to help you comfortably adjust to the new compensation plan, there will be a six-month transition period starting January 1, 2013. There will be two elements to the transition: First, during this period, distributors who are eligible for both the Team Performance Bonus and the new Rising Star Team Bonus will be paid both, though the Team Performance Bonus will be paid at a decreased rate of 50%, decreasing an additional 10% every month until June 2013, when it reaches 0% or until the distributor no longer qualifies.

Second, distributors will qualify using whichever compensation plan, previous or new, allows them to qualify for the highest rank. All distributors will be paid according to the new plan beginning July 1, 2013.

COMP PLAN WEBINARS • 2/1/13 @ 9 a.m., EST: Young Living’s New Compensation Plan (90 minutes) • 9/1/13 @ 10 a.m., EST: Part I: Building a Foundation (30 minutes)

Topics include: definitions, pools, enroller bonuses, generations, Generation Leadership Bonus, and Travel Rewards

• 11/1/13 @ 10 a.m., EST: Part III: Enjoying Abundance (30 minutes)

Topics include: definitions, pools, enroller bonuses, generations, Generation Leadership Bonus, and Diamond Express

For more information and to register, please contact Customer Care at 800.371.3515 or Events at 801.418.8900.

All times quoted are Brisbane times.

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Topics include: definitions, pools, enroller bonuses, Rising Star Team Bonus, and Travel Rewards

• 10/1/13 @ 10 a.m., EST: Part II: Creating Success (30 minutes)

Young Living News from Around the World EUROPE

After an astounding year in 2012, Europe is highly charged and excited to accelerate the momentum and growth into 2013! With continued strength and support in the market, there is so much to look forward to this year! We are excited for new market openings, regional meetings, and trainings across Europe—as well as sensational new product launches and tools and initiatives to help our dedicated and passionate distributors further build and flourish successfully! The new year kicks off with an exclusive leaders event in Vienna on January 19, hosted by our sales and marketing director, Thorsten Mueller. This event will be a super opportunity not to be missed by those invited!

AUSTRALIA

Jim O’Reilly and Maroline Crane were lucky enough to attend the 2012 Winter Harvest in Idaho alongside our Diamond leaders Artemis and Alan and Linda Simpson. The harvest was a great experience for all. Waking up to snow falling on the first morning was inspirational. It was the first time

Artemis had seen snow, which was a great treat for her.

Experiencing the Seed to Seal® process from start to finish and being able to say we had a helping hand is truly uplifting. Seeing Gary Young in action—driving his big rig and preparing the trees to be transferred to the distillery—makes us realise that we really do belong to the world’s leading essential oil company.

Where else would you find the founder of the company getting his hands dirty to produce the finest oils? For those of you who have not experienced a harvest of any kind, we really encourage you to do so. These events are life-changing experiences for one and all.

JAPAN

Last year was the greatest year ever for Young Living Japan. We have blockbuster new products that have never before been in the market!

Progessence Phyto Plus™ was released in July, and the Slique™ line of products was launched in October. These great products have invigorated the health, beauty, and wellness of many customers.

The first big event of 2013 is the launch of the new NingXia Red, with a tour hosted by Dr. Cole Woolley beginning January 29. We look forward to this exciting event and hope all of our distributors will be extremely excited about this amazing product.

As the new year begins, Young Living Japan wishes happiness and growth for you, your family, and your country.

HONG KONG

Young Living Hong Kong had an amazing event for the new NingXia Red in early December. Crown Diamond Kathy Farmer energised the crowd with special information on Young Living’s groundbreaking NingXia Red reformulation. This exciting event had many new members join, and attendees could not wait to order the new NingXia Red. This event is just further proof that Hong Kong is experiencing explosive growth! Now is the perfect time for distributors to get involved in building this dynamic market. Hong Kong is truly the gateway to Asia, the biggest market in the world! If you have contacts in Hong Kong or if you would

like to have more information, please contact us at HK@youngliving.com.

SINGAPORE

Young Living Singapore is set for our most exciting launch to date! Doug Corrigan, senior director of global training and education, will join us on January 19 as we launch the new NingXia Red® and OmegaGize3™. This will be followed with meetings in Manila, Philippines, on January 21 and Kuala Lumpur, Malaysia, on January 22.

This is going to be a very exciting year for all, as the Singapore office has just launched programs and initiatives geared toward helping members build their businesses and grow their organisations. Learn more about the Race to Convention Incentive Program, Success in Six, Year 2, Next Generation Leadership Meeting, 2013 South East Asia Leadership Seminar, and a whole lot more from your What’s New in 2013? booklet available in your Virtual Office and included in your January Essential Rewards order.

Upcoming Global Events Winter Harvest January 7–February 2 St. Maries & Highland Flats Farms Raindrop Technique Training January 19 Sacramento, CA Raindrop Technique Training February 2 Orlando, FL School of Nature’s Remedies February 23 YL Global Headquarters Lehi, UT

Under the direction of D. Gary Young, Young Living recently reformulated one of its most popular products, NingXia Red. In this top-to-bottom formula overhaul, our experts researched and analysed current ingredients along with possible replacements. Changes were made, resulting in a product with superior health benefits.

The first and most exciting change centered on NingXia Red’s essential oil blend. The total beneficial oil was increased seven times. This was accomplished by increasing the amount of lemon and orange and by adding two new citrus oils, yuzu and tangerine. While lemon, orange, and

tangerine are familiar to many, yuzu is new to the Young Living family. “Our specially produced yuzu oil utilises a novel hydrosonic technology that focuses on low-pressure, lowtemperature distillation that takes the oil out of the rinds at a pristine state, a therapeutic pure state,” stated Marc Schrueder. He went on to say, “With the additional oil content, we developed a new system to drive these oils into the juice.”

an aromatic phenomenon. Almost by accident, because NingXia Red tastes so great, people are introduced to the world of internal oils, and through that process a whole new experience can become theirs. Now with the new NingXia Red, that experience is seven times more profound.” These pure and potent essential oils blend synergistically and deliciously with the other components of NingXia Red to support normal body functions.

Doug Corrigan said, “One of the things I have loved about NingXia Red for so long is that it gives us the opportunity to introduce a brand new person to oils that are pure enough to drink. For most of the world, oils are

No other nutrient-infused beverage can come close to the beneficial essential oil content of NingXia Red!

School of Nature’s Remedies March 2 Red Deer, Alberta, CA Raindrop Technique Training March 9 Phoenix, AZ Raindrop Technique Training March 16 Marina del Rey, CA Raindrop Technique Training April 6 Liverpool, NY Raindrop Technique Training April 20 Houston, TX School of Nature’s Remedies April 27 La Jolla, CA For information on these and other events, visit youngliving.com.

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What Your Leaders are Saying!... about this season’s Winter Harvest

Marcella Vonn Harting and Dallas Harting work out in the fields at the Highland Flats tree farm during this season’s Winter Harvest.

Australian Diamond distributor Artemis enjoys the perfect weather at the Highland Flats farm in Idaho during the Winter Harvest.

Marcella Vonn Harting

Artemis

Crown Diamond, Arizona

“The Winter Harvest experience is a must for all Young Living leaders. Gary Young feels this is one of the most important experiences he and the company can offer to the distributors, and now I agree. Having fully participated in the harvest, I have a much deeper appreciation for our company and our mission of putting Young Living essential oils in every home in the world.

The process of getting the oil from the tree is an amazing experience to be witnessed by every distributor in our company. I personally feel all Diamonds must experience this in person to be an example to their organisations and to be able to represent Young Living in every aspect of true leadership.

To truly understand the founders and leaders of Young Living and to understand why we do what we do, the answers are all at the harvests.”

Diamond, Australia

“There is an amazing sense of spirit at the St. Maries farm. The opportunity to spend time with Gary and Mary in a really personal setting was life changing.

With Young Living growing so phenomenally year by year, it’s not often we get to simply be with Gary and Mary on their own turf.

Watching the snowfall over the lavender and the conifers was the most beautiful thing I’ve ever seen in my life.

Gary’s vision is to make each of the Young Living farms a destination for Young Living distributors and their families, a place where we can come and have a true farm experience, where we can learn what makes our oils so special, and where we can receive education, inspiration, and pampering.

The accommodations are warm and welcoming, the food was fabulous, and the adventure was amazing.

And did I have fun? You bet! The best part was sitting alongside Gary as he drove between farms talking about trucks, his past logging experiences, his visions for Young Living’s future, and just sharing in his passion.”

Gary Young and Linda Simpson work in the garage at the St. Maries farm in Idaho.

Linda and Alan Simpson

Diamonds, Australia

“When Alan and I arrived at the Winter Harvest, we could see how much things can change when a visionary like Gary Young is in control. There is a full kitchen, toilets, showers, laundry, sleeping quarters, a lounge room, and even Internet access. At the distillery are the new spa rooms and the hot tubs of floral water. In doing this, Gary has gone the ultimate extra mile for us all by incorporating the farm into an elite destination in so many ways. We were so excited by these changes that all we wanted to do was rally up the girls back home, and the boys, too, if they’re good, and come here and have them experience what we experienced.

When we saw the new GC instrument that was ready for installation, we couldn’t help but think, ‘What other company goes to these lengths and expense to ensure that people are getting the best and the purest all the time, every time?’ None that we know of. To experience the energy here while being surrounded by nature, by these plants and their aroma, is something that you will never forget for as long as you live. Australia is a very long way away from the Highland Flats farm, but we would make the trip here again in a heartbeat!”

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Dallas Harting helps chip trees at the Highland Flats farm during this season’s Winter Harvest. The tree chips will then be distilled at the St. Maries farm.

Dallas Harting

Silver, New York

“Wow, what an amazing trip! I just absolutely love going to the Winter Harvest.

I love the fact that I get the opportunity to bond with other Young Living distributors, corporate staff, and, of course, Gary Young!

The Winter Harvest is like a big boy’s playground. I’ve had the opportunity to drive just about everything up there—and saying it’s fun is a giant understatement.

I have made lifelong friendships at the Winter Harvest that stretch all the way to Australia. The culture of Young Living has always been focused on what’s most important, and it’s the relationships and the people.”

Watching the Seed to Seal® process is one of the most powerful things that any Young Living leader can experience. Participating in the Winter Harvest makes you truly appreciate the amazing essential oils that Young Living has to offer and why we are the World Leader in Essential Oils®.”