J.

Hilburn Partner Mission Statement “Our Goal is to Create a Life Changing Opportunity for Our Partners that Provides Sustainable Income for Generations.”

J.Hilburn Customer Mission Statement “Transforming Men’s Fashion by Providing Luxury Apparel and Legendary Customer Service at Boldly Lower Prices.”

Thank you for your interest in J.Hilburn! The following pages are filled with information about becoming a J.Hilburn Style Consultant including: • • • • • • • • • • • Company Overview & Purpose Product Overview The JH Difference People Involved with J.Hilburn Our Business Model What Does a Style Consultant Do? Culture & Benefits of being a JH Style Consultant Earning Opportunities & Compensation Plan Current Growth & Stats Growth of a Style Consultant Start Up Costs & Expectations

The goal of going over this presentation with you is to determine if J.Hilburn is a right fit for you! This model is not for everyone, and we are not looking for everyone! We are looking for people who are looking for us....so let’s see if that’s you!

Company Overview
Could we: • Deliver the most luxurious products... • Eliminate high retail markups... • Enable the client to not go to the mall?

• Founded in 2007 by Hil Davis and Veeral Rathod • Financial guys from Wall Street • Men enjoy luxury - but hate to shop • Men’s retail model has not changed since WW1
(except e-commerce)

• Men’s retail is one of the most overpriced, marked up industries in all of retail

Unchanged Model

+

Understanding the Way Men Shop

=

REVOLUTION
Join the Revolution.

Shopping Options for Men’s Retail

Drawing inspiration from retail, direct sales and e-commerce, J.Hilburn has found a way to leverage the very best of Retail, Online & Custom, to create a unique business model with the vision of transforming the way men shop for clothing!

Product Overview
Custom Shirts
First, Select Your Favorite Fabric: Second, Select Your Shirt Preferences: • Collar • Cuff • Pocket • Placket • Pleat Third, Select Any Style Options: • Contrast Fabric in Collar or Cuff • Contrast Stitch • Buttons or Snaps • Monograms
gray stitching through buttons and button holes

In 4 years we have become the largest custom shirt producer in the world! 120,000 shirts per year Signature Product Only carried shirts for first 2 years!
monogram on right cuff

• • •

light blue houndstooth inside the collar and cuff

Product Overview
Made to Measure Trousers & Suits, Ready to Wear
narrow notch lapel

First, Select Your Favorite Fabric:

Second, Select Your Coat Preferences: • Fit • Lapel • Buttons • Pockets • Vents • Lining Color

light blue lining 2 button flap pockets

Sport Coat
side back vents

Select Your Trouser Preferences: • Fit • Pleats or Flat Front • Cuff or No Cuff Trouser

flat front tailored fit (modern rise & thigh)

no cuffs

Product Overview
Ready to Wear
Navy Pinstripe Suit - Coat $650
Shave Gel $12 Pocket Square $39 Blue Polo $69 Lizard Wallet $150 Casual Jeans $185 Dressy Jeans $172

Baby Cashmere Sweater $200 Luxury Blend Sweater $85

Green Plaid Tie $89 Tan Lizard Belt $135

Comfy White Tee $39

Custom S $109

hirt
Cufflinks $79

Navy Pinstripe Suit - Trouser $225

Navy Socks $19

The JH Difference
Products
Quality • Best quality fabrics. • Most prestigious old family mills in Italy: Monti, Thomas Mason, Albini, Guabello. • Same mills as designer luxury brands. • Made to your measurements & preferences. Value • Same fabric in an off the rack shirt at the store retails for $315. • JH price: $109 ($89 - $159)
Ermenagildo Zegna - Off the rack fit $315 - or J.Hilburn custom shirt with initials in collar $109

Convenience • Style consultant comes to you. • Can order custom online.

• Best fabric in the world • Custom Fit • Personalized by Client • Delivered to the House • Half the Price

The Result
Highest Re-order rate in Retail History :

93%

The JH Difference
Off the Rack vs. J.Hilburn
Off the Rack
Shirts • Size based on neck size & sleeve length. Suit Jackets / Sport Coats • Default sizes and lengths (most common) Suits • Sold with a pant 6” smaller than the coat size. Trousers • Assume seat is 6” larger than waist. Ready to Wear • Middle man mark up

J.Hilburn
Shirts • 12 measurements taken to up to 1/4”. Suit Jackets / Sport Coats • 1” increments available in Short, Regular, Long, X-Long Suits • Jacket & trouser sold individually and made to order based on measurements. Trousers • Made to waist & seat measurement. Ready to Wear • Baby Cashmere Story

The JH Difference
Convenience ~ Value ~ Customer Service
Business 101 To build a successful business, you must focus on excelling in 2 of the 3 major areas, or “legs of the stool.” Convenience, Value & Customer Service.

Historic Examples • Amazon • Zappos • iTunes
Convenient Convenient Convenient Value Value Value Customer Service Customer Service Customer Service
Cus

nience

e ervic er S tom

Conve

Value

J.Hilburn
3 in all L E C X E ries! catego

Convenient

Value

Customer Service

The JH Difference
Customer Service & the Client Relationship

The key to our growth in addition to quality and value is the timeless truth that people prefer to do business with people they know and trust.

Designers want J.Hilburn consultants to sell their products!

People Involved with J.Hilburn
Jon Patrick
Lead Product Designer, J.Hilburn

Scott Bedbury
Board of Directors, J.Hilburn Referred to as “perhaps the greatest brand maven of our time”, Bedbury was the creative genius behind Nike’s iconic ‘Just Do It’ campaign, and Starbuck’s mid 90’s branding development. With more than thirty years experience in fashion marketing, Bedbury aims to maintain J.Hilburn’s momentum and propel the brand to a household name in the arena of luxury, men’s custom clothing.

• Past: 10+ years at Ralph Lauren : Menswear Development. • Core Philosophy: Fit, Focus and Quality are Paramount. Larry Hagenbuch
COO, J.Hilburn

• Supply Chain Expert • Past: CEO of GE (General Electric) • Has run several companies as CEO and COO Robert Milam
Creative Director, J.Hilburn

Scott summed it up best when he said, "In the competitive consumer landscape, it's not often that you see a company with the promise and potential to become a global leader on multiple fronts. When I first looked at J. Hilburn, I was impressed not just by the quality and innovation of the product and growth thus far, but by the unique J. Hilburn business model. It blends direct sales and personalized service with the scalability and efficiencies of e-commerce. J. Hilburn is making luxury products more accessible, more customized and at the same time more affordable. That's a hat trick. I'm excited to be part of something so bold. J.Hilburn is pushing the edges of luxury retail as we know it."

• Past: Senior Designer at Fossil • Has brought brand & lifestyle identity to J.Hilburn through his photography and design.

Our Business Model
Hybrid of Franchising & Direct Sales
Direct Sales
Pros: • Social Selling • Supply Chain Compression • Better Product at Lower Price • Own Your Own Business • Flexibility & Own Schedule • Enormous Financial Opportunity • No Glass Ceiling • Low Start Up Costs Cons: • Constant Recruiting • Parties / Evening Hours • High Churn & Burn • Low Productivity of Sales Force • Inventory Costs for Reps • Monthly Auto Ship Costs
We chose to create our own unique hybrid business model that utilizes certain strategies found in both franchising and direct sales. J.Hilburn capitalized on the power of distribution, leverage, franchising and social selling.

Franchising
Pros: • Corporate / Brand Support & Promotion • Singular Branding • Training Programs • Calculating Saturation Points by Demographics

r Powe of 5!

Cons: • High Start Up Costs ($1M) • Regulatory Restrictions

The “Job”
What does a Style Consultant Do?
Clients • 1-3 appointments / week • At their office, 10am - 3pm, during week • First appointment is the longest • Avg New Client Appt: $400 - $800 • Avg Client Reorder: $200 - $600 How much monthly income can you make?
It’s up to y ou!

______ New Client Appointments at $_______ = $_________ ______ Client Reorders at $_______ = $_________ Your Monthly PV $ __________ x Commission % _______ % Monthly Income from Personal Volume $________

But wait... • MORE ready to wear products coming soon! • Clients ordering MORE online! • Clients placing CUSTOM reorders online! • iPad App • Dressing Room feature on website

Which means...
Avg New Client Appt: Client Reorders: Online Orders:

Your monthly sales/income:

Time Spent w/ Clients:

Do 2 Things 1. Build a loyal client base. 2. Build a team that does the same.

The Culture
What does it feel like to be JH Style Consultant?
Leadership School Promotions Lexus Car Program

1 2 3 4

Develop Communicate Coach Excel

• Learn Personality Profiles what you are, what everyone else is. • Learn to communicate more effectively with everyone around you - children, spouses, co-workers, partners, clients. • Learn the concepts of mentoring, leading and coaching.

Incentive Trips

Compensation
Personal Sales Volume, Quick Start & Sample Credits
Personal Sales Volume (PV)
(per calendar month)

Sample Credits
• Earn monthly based on Personal Sales • Marketing Materials - Catalogs, Selling Tools • Fabric Swatch Books • All Ready to Wear (denim, polos, sweaters, etc) • Not for custom products or printed materials • Not out of pocket for samples & selling supplies

Quick Start Bonus (QSB) (For New Partners)
• • Earn $225 Sample Credit for completing your QSB. Earn $225 Sample Credit for EACH partner you bring on that completes their QSB.

So if you make your Quick Start ($225), sell $2000/month for a year ($600), and bring on 4 partners that each earn their Quick Start Bonus ($225ea), that’s a total of:

$1725 in Sample Credit in one year!

Compensation
Career Title Promotion Bonus
Title Promotion Bonus Sponsor Bonus
• As a sponsor, YOU make the sponsor bonus for EACH partner you bring on that makes THEIR Title Promotion Bonus! (as long as you are at the same title or higher)
For EACH Partner you sponsor!

=

$51,000

=

$26,500

• This is in ADDITION to all other promotions, PV commissions, team commissions, sample credits and quick start bonuses!

Compensation
Override Commissions
John Paul Getty once said, “I’d rather have 1% of the effort of 100 people than 100% of my own efforts.” Amen!

Partners / Level Level 1: 5 Level 2: 25 Level 3: 125 Level 4: 625 Level 5: 3,125 Level 6: 15,625

Avg Monthly Sales / Partner $1000 - $2000

You 10% - 30% Level 1: 4%

Level 2: 3% Level 3: 2%

Level 4: 2% Level 5: 2% Level 6: 2%

Current Growth and Stats
 
Fabric Mills & Shirt Stats • Tessitura Monti - Largest Italian Luxury Fabric Mill Supplier • JH is largest US account
(was Robert Talbot)

JH Yearly Growth & Revenue • 2010 $7 Million • 2011 $17 Million • 2012 Projected: $45 - $50 Million

Partner Stats • End of 2011: 1000 partners • May 1, 2012: 1800 partners • End of 2012: 4,000-5,000 partners

• End of 2012: JH is projected to be largest WORLD account
(Hugo Boss is currently)

Income Stats • Company started in 2007 (really 2008) • 2012 : Top 3-5 style advisors will earn $250k - $400k (doubled from last year) • 20-30 partners will earn $150k - $200k • 100 partners will earn $100k

• Doubling every 4-6 months • Double Digit growth each month • US will reach capacity at 10,000 partners nationwide
(mid 2013 or end of 2013)

• Currently: Largest custom shirt producer in the WORLD (in 4 years) making 120,000 shirts per year.

• Open internationally 2-3 years with a potential of 100,000 partners worldwide

Suit Stats • End of 2012 : will be largest producer of Made to Measure trousers & suits in the WORLD

• 15-20 hours / week • Enrolled in 2011 or prior (at 1000 partners) 13.5% of partner base earns $100k+ in under 2-1/2 years.

Growth of a JH Style Advisor
SR EXECUTIVE PARTNER EXECUTIVE PARTNER SR MANAGING • Coaching leaders on your team PARTNER MANAGING PARTNER 4 ASSOCIATE PARTNER STYLE PARTNER STYLE ADVISOR
• Sell & build loyal client base. • Share JH with potential partners. • Bring on first partner. • Share JH with potential partners. • Work with team. • Monthly meetings with your team • Work with Sr. Leaders on team to develop their teams • Visit teams outside your area • Lead by example • Act as role model for your entire downline and team • All of the above!

SENIOR PARTNER
• Coach and mentor partners that are growing their teams.

• Hold monthly team meetings (calls, lunches, etc) • Attend all conferences and local meetings.

• Recognize their Avg Monthly Income Career Title Bonus $12,250 • Help new partner success! Avg Monthly Income $25,000 start to sell and 1 JHLS1 Career Title Bonus $5,400 Avg Monthly Income build a client $10,000 Avg Monthly Income $1,900 Avg Monthly Income Career Title Bonus base. $3,400 $1,500 $7,500 Career Title Bonus Career Title Bonus $2,500 Avg Monthly Income: Career Title Bonus $5,000 $1,000 $650

• Work with • Develop them as leaders and help independent them promote. leaders, not dependent on • 2 JHLS2 you.

4 JHLS4 3
JHLS3 Avg Monthly Income $20,000

Start Up
Costs and Expectations
Start Up
• $399 - Kit Cost • Includes Swatches, Training, Selling Catalogs, Forms, etc. • Attend 8 hour training

Expectations
• Make your Quick Start • Aim to sell $2,000/month • Attend annual conference in Vegas • Plug into your local JH community and attend any events

Next Steps
If you are thinking about JH... • Go on appointment with sponsor • Research J.Hilburn & competition • Review press documents

Make your Quick Start Bonus (QSB) • $400 QSB - Cash • $225 QSB - Sample Credit • $500 Cash Travel for Training Bonus
(if you are traveling more than 180 miles to train)

• Touch base weekly with your sponsor • 10-20 hours per week • Selling, networking, researching, webinars, learning, plugging in

If you are ready to go... • Accept invitation to enroll for J.Hilburn!

ur o y r o f u o n! k y r n u a b h l i T H . J n i t s e r inte

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