PRESIDENT DICK BURKE

PRESIDENT DICK BURKE :

Allowing and empowering people to become ClubShop Partners that live in countries that have restrictions and limitations placed on them by their governments, makes it very difficult for these Partners to do business internationally. These restrictions have created a big challenge for the company, as there are many obstacles, issues and problems to overcome to create the ability for the liberal and fair exchange of international goods, services and money between the company and its members and customers.

In many countries, most people don't have a credit card or the ability to have a PayPal account. In some countries (like Pakistan), people are not even permitted to send funds out of the country using Western Union. In other countries (like Morocco), set restrictions have been imposed to disallow more than a small amount of funds to be sent out of the country each year. And added to these challenges, is the issue that almost all governments have with ensuring that no money laundering is going on to prevent the funding for drug dealers or terrorists, which creates further restrictions for the free flow of money between countries.

Over the past year we have continued to develop and modify our Pay Agent program to allow Partners in countries with restrictive laws to be able to pay for their GPS fees and purchase ClubShop Rewards Cards and also receive their commissions in their local currency. Despite our continuing efforts to help Partners in Pay Agent countries to have access to our business opportunity, we have also continued to experience many problems associated with doing business in countries that have restrictions in place for the movement of money into or out of their country.

Furthermore, the problems that we have encountered have had a direct relationship to:

The need to have a Pay Agent Program and rely on Pay Agents to receive and pay for fees and to pay out commissions. Lower fees being paid which has created a reduced and diminished revenue factor. Not having a more flexible international compensation plan to ensure that our commission payout percentages stay within our targeted goals and especially do not exceed the revenue collected in Pay Agent countries. And when I say "'we' have also continued to experience many problems associated with doing business" internationally, I am including all Partners (and especially leaders) in Pay Agent countries.

I know that these issues haven't had a negative impact on our Partners that do not live in Pay Agent countries. However since all of our Partner Teams have Partners in them from Pay Agent countries, we have a responsibility to all Partners to find solutions to these problems. Therefore, some of my staff and I have temporarily shifted our attention over the past month to find or create solutions to these problems. This has disallowed me from spending much time in communicating with Partners on Skype, or in webinars or by email and it has also required us to suspend work on the GPS and TNT improvements we have wanted to make.

But now I am very happy to report that we have completed our diagnosis for what has caused these Pay Agent countries' issues and have found or will be creating solutions for them, with all of them to be released this month! So here is what you can expect to see announced over the next few weeks:

A "make over" for our Commissions Policy so that we provide more and better information to Partners in Pay Agent countries on how to receive their commissions. Many needed improvements for the Pay Agent Program, to include: The ability for Pay Agents to have a profile which they can select from a list provided, the methods they prefer to use to receive and pay money. Automatic designation for the correct/best Pay Agent to use for Trial Partners and Partners to send funds to or receive funds from. New directions and capabilities will be automatically provided, to be able to send funds to or receive funds from Pay Agents which will include the company gaining pictures of IDs and copies of receipts. The release of a new Pay Agent Center which will provide provide Pay Agents with a customized interface to see and track all of their transactions. Together, all of these improvements will streamline the Pay Agent processes and procedures to make them more efficient and effective, which will benefit both Partners and Pay Agents! The ability for international Partners to be able to gain a pre-paid MasterCard which can be used by Pay Agents (and in the future by all Partners) to pay for fees and to receive commissions. We will be providing a customized interface so that accounts can be opened and cards mailed to international Pay Agents in almost any country in the world, including Tunisia, Morocco, Algeria, Burkina Faso and most other African countries. The release of our new International Partner Compensation Plan which will resemble our current, simple plan, except that the commissions for each pay level will be based on monetary value for the fees paid for each Partner's Group. This will ensure that the the plan works for Partners in all countries and rewards Partners commensurate with their sponsoring and coaching efforts and the value of the revenue they generate. And here is some good news

that will accompany this plan! All of the qualifiers will remain the same as they are now for this plan and will not be changed from month to month! We will do an annual analysis each year in December, based on the previous year's results, to determine if any tweaks should be made for the new year's plan, but we will not be making any more changes to the qualifiers for the new plan from what they are right now!

If you like this news, then you will love this news - after 18 years of research and development, trials and errors and countless hours of programming to create this hybrid and simple to understand compensation plan (that pays out an industry high 85% of revenue in commissions), I feel that our work is now completed. This wonderful compensation plan will be our compensation plan beginning in September and on into the future!

This should give all Partners the confidence, security and stability you need to set and achieve your goals, to go from pay level to pay level.

The best is still yet to come!