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    The Power of Direct Sales

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    gabrielagl10
    The documents provide financial information for DBK, including their commission structure which offers higher commissions for sales reps with over $1,000 in monthly sales. Key metrics for DBK from 2006-2010 show increasing revenues, pieces sold, sales reps, and average sales per rep. Exhibits also show estimated US direct sales from 2001-2009 which peaked at $32.18 billion in 2006 and DBK's US sales breakdown by product group.

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    The Power of Direct Sales

    Uploaded by

    gabrielagl10
    21 views5 pages
    The documents provide financial information for DBK, including their commission structure which offers higher commissions for sales reps with over $1,000 in monthly sales. Key metrics for DBK from 2006-2010 show increasing revenues, pieces sold, sales reps, and average sales per rep. Exhibits also show estimated US direct sales from 2001-2009 which peaked at $32.18 billion in 2006 and DBK's US sales breakdown by product group.

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    The documents provide financial information for DBK, including their commission structure which offers higher commissions for sales reps with over $1,000 in monthly sales. Key metrics for DBK from 2006-2010 show increasing revenues, pieces sold, sales reps, and average sales per rep. Exhibits also show estimated US direct sales from 2001-2009 which peaked at $32.18 billion in 2006 and DBK's US sales breakdown by product group.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    21 views5 pages

    The Power of Direct Sales

    Uploaded by

    gabrielagl10
    The documents provide financial information for DBK, including their commission structure which offers higher commissions for sales reps with over $1,000 in monthly sales. Key metrics for DBK from 2006-2010 show increasing revenues, pieces sold, sales reps, and average sales per rep. Exhibits also show estimated US direct sales from 2001-2009 which peaked at $32.18 billion in 2006 and DBK's US sales breakdown by product group.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5

    Exhibit 1a.

    Commission Structure

    Commission Structure

    Basic Commission (% of Sales) 25%

    Commission for Sales Reps with > $1,000 in monthly sales 32%

    Exhibit 1b. Leadership Dollars: Schedule by Type of Sales Representative

    Leader Manager Director


    Level 1 Team Members 5% 10% 12%
    Level 2 Team Members 3% 6% 8%
    Level 3 Team Members 2% 4% 6%
    Level 4 Team Members 1% 2% 3%
    Exhibit 2a. DBK Financials: Key Revenue Drivers

    2006 2007 2008 2009 2010E


    Revenues $4,999,968 $10,659,963 $28,815,094 $46,439,975 $74,283,586
    Pieces Sold 89,556 205,000 542,215 880,713 1,402,624
    Average Price $55.83 $52.00 $53.14 $52.73 $52.96
    Sales Representatives 643 1,268 3,404 5,138 7,930
    Annual Sales per Rep $7,776 $8,407 $8,465 $9,039 $9,367
    Monthly Sales per Rep $648 $701 $705 $753 $781

    Average Sales per Event $1,200 $1,252 $1,344 $1,344 $1,428


    Number of Events 3,470 7,086 20,884 33,517 50,459
    Average Events per Sales Rep 5.40 5.59 6.14 6.52 6.36

    Non-Event Sales $835,968 $1,788,704 $747,616 $1,393,199 $2,228,508


    % of Revenues 17% 17% 3% 3% 3%

    Sales per Sales Rep $7,776 $8,407 $8,465 $9,039 $9,367

    Exhibit 2b. DBK Financials: Profit & Loss Statement

    2006 2007 2008 2009 2010E

    Revenues $4,999,968 $10,659,963 $28,815,094 $46,439,975 $74,283,586


    Cost of Goods Sold $2,049,987 $4,370,585 $11,237,887 $18,575,990 $29,713,434
    Gross Profit $2,949,981 $6,289,378 $17,577,207 $27,863,985 $44,570,152

    SG&A $2,599,983 $5,436,581 $14,695,698 $23,684,387 $37,141,793

    Operating Profit $349,998 $852,797 $2,881,509 $4,179,598 $7,428,359

    Key Ratios:
    COGS as a % of Sales 41% 41% 39% 40% 40%
    SG&A as a% of Sales 52% 51% 51% 51% 50%
    Operating Margin 7.0% 8.0% 10.0% 9.0% 10.0%
    Exhibit 3a Estimated U.S. Direct Sales ($ in billions)

    2001 2002 2003 2004 2005 2006 2007 2008 2009


    US Sales $26.69 $28.69 $29.55 $29.73 $30.47 $32.18 $30.80 $29.60 $28.33
    ($ in billions)

    40

    35
    $32.2
    $30.5 $30.8
    $29.6 $29.7 $29.6
    30 $28.7 $28.3
    $26.7
    25

    20

    15

    10

    0
    2001 2002 2003 2004 2005 2006 2007 2008 2009
    Exhibit 3b U.S. Direct Sales by Product Group
    Home/Family Care/Home
    Durables 24%
    Wellness 23%
    Personal Care 21%
    Services/other 18%
    Clothing & Accessories 10%
    Leisure/Educational 3%
    100%

    0.033
    0.103 0.239
    0.184
    0.228
    0.213

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