ADVOCARE
WHAT SHOULD I KNOW ABOUT THE ADVOCARE BUSINESS OPPORTUNITY?
INCOME DISCLOSURE STATEMENT 2016 AdvoCare Independent Distributors have the opportunity to purchase AdvoCare products at a discount to enjoy themselves or to resell for a profit. They also have the opportunity to earn income from building, maintaining and leading a sales organization.
WHAT ARE THE ADVANTAGES OF BEING AN ADVOCARE INDEPENDENT DISTRIBUTOR?
1. Distributors set their own schedule and choose how and when to work. 2. Many people start their AdvoCare business by selling products in their spare time to people they know as a way to make a little extra money. 3. Building a successful AdvoCare business takes significant time, dedication and hard work. Like all businesses, success is not guaranteed. 4. All AdvoCare purchases come with a 30-day satisfaction guarantee and may be returned for refund or exchange. 5. Distributors are not required to purchase any products or keep any inventory in order to build their AdvoCare business. The initial cost to start is $59.00 plus tax and shipping for the Distributor Kit. The annual renewal fee is $50.00. 6. AdvoCare offers to repurchase all inventory, including the cost of the Distributor Kit, from those no longer interested in being a Distributor.
As a Distributor, you can: 1. Buy products at a discount for you and your family.
2016 INCOME
NUMBER OF DISTRIBUTORS*
PERCENTAGE OF DISTRIBUTORS
$0
412,408
72.29%
$0.01 - $200
96,220
16.87%
$201 - $500
27,611
4.84%
$501 - $2,000
24,265
4.25%
$2,001 - $5,000
5,621
0.99%
$5,001 - $10,000
1,911
0.33%
$10,001 - $20,000
1,049
0.18%
$20,001 - $50,000
791
0.14%
$50,001 - $100,000
295
0.05%
$100,001 - $150,000
124
0.02%
$150,001 - $300,000
119
0.02%
$300,001 - $4M
95
0.02%
2. Sell products to your customers and make a profit. 3. Sponsor others who want to enjoy or sell the products, and earn income from AdvoCare. You cannot earn money simply for recruiting or sponsoring another Distributor.
HOW MUCH COULD I EARN IF I SELL ADVOCARE PRODUCTS? As a Distributor, you will receive an immediate product discount of 20% with the ability to qualify up to 40%. The difference between the discounted price you pay and the price you charge customers can result in a 20-40% profit if you charge the suggested retail price. For example, the Distributor discount on Spark® is shown below:
$24.99
DISTRIBUTOR PRICE (20-40% DISCOUNT):
$19.99 - $14.99*
POTENTIAL RETAIL PROFIT:
$5.00 - $10.00
*Before shipping and tax
WHAT IS THE VALUE OF THE DISCOUNT? In 2016, AdvoCare had 570,509 Distributors who qualified for a 20-40% discount and purchased products or earned income from AdvoCare. While 72.29% of Distributors (412 ,408) did not earn income from AdvoCare, they did purchase products and had the opportunity to resell them for a profit. Distributors in this group benefitted from an average product savings of $247.70 (See chart). Distributors who did earn income saved an average of $862.28 on their purchases. The opportunity to earn profit from the resale of these purchases is not included in income reported by AdvoCare.
VALUE OF THE DISCOUNT
$247.70
20 - 40% discount off suggested retail value
=
Distributors can earn income from AdvoCare based on the purchases and sales of people they sponsor, in addition to any in-person profits earned. 27.71% (158,101) of all Distributors earned income from AdvoCare (Paid Distributors), including 72,815 Distributors who earned from the purchases and sales of newly enrolled Distributors or customers. The median annual income earned by Paid Distributors in 2016 was $116 ($1,476 average).
*In 2016, AdvoCare had 570,509 Distributors who purchased products at a discount and/or earned income from AdvoCare.
Savings can represent potential retail profit if resold at suggested retail price†
DISTRIBUTOR SAVINGS
HOW MUCH COULD I EARN FROM SALES OF PEOPLE I SPONSOR?
$842.93
Average retail value of product purchased in 2016 by Distributors not earning income
DISTRIBUTOR COST
$595.23
PERCENTILE OF PAID DISTRIBUTORS
NUMBER OF PAID DISTRIBUTORS
MINIMUM INCOME EARNED
AVERAGE TIME AS DISTRIBUTORS
TOP 50%
79,050
$116
2.7 YEARS
TOP 10%
15,810
$1,236
3.3 YEARS
TOP 1%
1,581
$17,707
6.7 YEARS
The income amounts depicted in the charts above reflect compensation paid by AdvoCare to its Distributors for sales made to their Registered Retail Customers and Preferred Customers, as well as for the activities of their sales organizations (including wholesale commissions, overrides, leadership bonuses, other bonuses and incentives). These income amounts do not include expenses the Distributor may have incurred, nor any profits earned from in-person retail sales. For more information about how to earn income, review the AdvoCare Policies, Procedures & Compensation Plan.
WHAT IF IT DOESN’T WORK FOR ME? †Before expenses and assuming shipping and sales taxes are passed along to customer
AdvoCare offers to repurchase all inventory from Distributors who choose to resign or otherwise discontinue their Distributorship, including the cost of the Distributor Kit. Contact Customer Service at 1-800-542-4800 and review the AdvoCare Policies, Procedures & Compensation Plan for more information.
REV120517
SUGGESTED RETAIL PRICE: