Example 1

One of the offered programs is membership in EVROLIFE Association. For the members of EVROLIFE Association it is offered to get access to various investment funds via ORIENT Trust. The annual sum of investment is 1000 US $.It is illustrated within the frame of investment period of 15 years.

• I – Fee factually paid in % from the declared sum of the investment
• II – Fee factually paid (USA $)
• III – Points in the tariff system

Period		1 year	2 year	3 year	4 year	5 year	6 year	7 year	8 year	..	14 year	15 year	Total $15000
15 years	I	4,2	0,84	0,84	0,21	0,21	0,21	0,21	0,21	..	0,21	0,21	Av. 8,4
	II	630	126	126	31,5	31,5	31,5	31,5	31,5	..	31,5	31,5	1 260,0
	III	20	4	4	1	1	1	1	1	..	1	1	39

The analysis of the data given in Example 1 shows:

• - the presented model of payments of fees is more typical of companies which specialize in cumulative life insurance
• - the necessity of compensation for independent consultants their expenses for maximum 63% from the size of the first investment, regardless of the investment period
• - starting from the second annual payment and till the end of the investment period independent consultants get the fees, the aim of which is well timed and high quality service of an investor as well as informing the investor about the state of the market, the size of the value of the net assets (NAV) of "Orient Trust", the system of payments, any alternation in a personal dossier etc.
• - the following methods stimulates consultants to suggest long term investment programs to investors, which is of interest for all participants:

• a) A long term contract, but not medium term, is beneficial for an investor because in case of a long term contract the % of the consultant's fee from the whole sum of the investment is lower than in case of a medium term, which follows from the example (8 years 12,99%, 10 years 11,02%, 12years 9,7%, 15 years 8,4%,20 years 7,09% ).
• b) The whole sum of a fee influences directly the size of the investment; therefore the investor not only saves his own money, but also may count on a better final financial result of the investment in comparison with the medium term programs.
• c) According to statistics, long term contracts or programs are less risky and more profitable in comparison with medium term programs.
• d) Within the frame of this marketing model independent consultants strive for high quality investor's service because the longer the investment period is, the higher his overall fee is, and therefore the better his possibilities of planning their personal budget and financial stability on the whole.
• e) The marketing strategy which is presented in the above model is beneficial for all investors, because the following method of a long term process of payment of a fee motivates a consultant to offer high quality service, but not in the way typical of the traditional system of agencies: to legalize a contract, get a payment for one performance and leave the investor 'to the mercy of fate'.
• f) The result of such thoroughly thought out marketing strategy, which is described in p. d), is the fact that the % of premature cancellation of the investment period, or in other words, the redemption of the investor's assets by the "Orient Trust", is on average less than 20%, which is two times less than on average in Europe.
• g) Long term plans and the presence of real statistical facts, based on the suggested model of payments of fees as well as the case of redemption, allow the "Orient Trust" to hold a smaller % in the structure of the low profitable liquid assets of the 1 category, which therefore gives an opportunity to invest additional recourses in long term, guaranteed, and highly profitable financial programs.
• h) On the whole the "Orient Trust" gets a sufficient amount of long term investments, which allows it to minimize market risks, use effectively reasonable leverage, let an investment manager have more opportunity to manoeuvre, and as a result of all this factors, get high long term income without any risk, and this as well positively influences the assets of the "Orient Trust".