MEMBERSHIP CHANGES

Well, enough about our experiences with power and Internet outages, the main purpose of this e-mail is to outline the Membership changes that will occur next year, less than a month away. To explain the changes, I have broken it down into three sections:

I. Factors Necessary to Start a Tea Business and How Tea Connexions Can Help

II. Present Membership Structure

III. 2006 Membership Structure

I. FACTORS NECESSARY TO START A TEA BUSINESS and HOW TEA CONNEXIONS CAN HELP

Let's face it, starting a business is tough, let alone a tea business. In order to start a tea business, you must take action on the following six factors:

1. Sourcing Product
2. Negotiating Price
3. Marketing Tools
4. E-Commerce
5. Promotion and Marketing
6. Education

1. Sourcing Product
In order to begin a tea business, you will have to source product, either through established importers and wholesalers or by purchasing direct from estates. This will take time, much effort, and money.

*****As a member of Tea Connexions you don't have to worry about this. I spent two (2) years and tens of thousands of dollars researching suppliers. After meeting with dozens, I settled on a select few. We have a product line that has grown from 15 items in 2001 to 209 today and we are constantly on the lookout for more products and reputable suppliers. Our product line is unique because it focuses on the tea segments that are projected to grow at double digits. This includes specialty tea, specialty flavored, organic, oolong, and green, all of which are carried by Tea Connexions.*****

2. Negotiating Price
In order to make your tea business profitable, you will have to negotiate favorable pricing. This is the tricky part. Most tea companies offer volume discounted pricing, meaning the more you purchase, the lower your price. The question, of course, is how much are you willing to invest in tea, even before you have an established customer base. The most probable answer is very little. This means when you start your tea business, you will probably be paying more for the product when you get started.

*****The purpose of the Tea Connexions Buying Group is to offer you volume discounted pricing, without you committing to purchasing large amounts of inventory. As a member of Tea Connexions, you don't have to negotiate price. We have taken care of all of this. We travelled and met with suppliers in India and China and negotiated volume direct pricing. Then we turn around and offer you pricing below wholesale. We even drop ship one (1) item at a time for you. Keep in mind, we have inventory that can be shipped out of Canada, Australia, and three locations in the United States. This means, we can drop ship orders of even just one (1) item in three countries cost effectively. This is something that no other tea company is willing to do for their customers, particularly on small orders.*****

3. Marketing Tools
To market your teas effectively, you need catalogs, brochures, business cards, and maybe even a website. Consider this. When I got my first catalog designed, it took 45 days, and cost more than a thousand dollars to design. Then I had to invest in getting it printed and negotiate rates with dozens of printers.

*****As a member of Tea Connexions, you don't have to design print tools, we have done that for you. You don't have to order thousands of catalogs to get a good price. Tea Connexions orders pallet loads of catalogs at a time. Last time we ordered 50,000. We do this so that we can offer you competitive rates on orders of only 100 catalogs at a time. Our goal is to offer you high quality print tools at cost effective rates.*****

4. E-Commerce
Let's face it, if you intend to do business in today's business climate, you need a website. In order to create a tea website, you need images, text, a shopping cart, a designer, etc.

*****As a member of Tea Connexions, we offer a turn key e-commerce package, meaning your website is set up and ready to take orders. We have been building websites since 2001, so we have ample knowledge and expertise to get a website up and running in one tenth of the time it could take if it was built from scratch.*****

5. Promotion and Marketing
Marketing takes time, money, and persistence. Consider this factor. In order to generate revenue, you will need to promote your business.

*****As a member of Tea Connexions, we promote all of our Distributors through our online presence. Since we don't sell at retail, the basic purpose of websites like www.tea4free.com , www.leaftea.com , and www.teaconnexions.com are to send consumers to our Distributors.*****

6. Education
In order to effectively own and operate a tea business, you must educate yourself.

*****As a member of Tea Connexions, you gain access to the online training which not only offers tea education, but business and marketing guidance. In fact, our online training is over 400 html pages and growing by the month. Let us do the research, all you have to do is visit the training once a week or month, and you will be updated. In fact, we offer our members two conference calls per month to go over business and marketing issues. Our goal is to give you the information you need to succeed.*****

TEA CONNEXIONS' GOAL

The goal of Tea Connexions is simple:

"To give you the knowledge, tools, and products that will enable you to profit from the growing opportunities offered by tea."

We accomplish this goal by offering you high quality teas, marketing solutions, and training. The success of Tea Connexions and the buying group we are trying to build is dependent on the success of our members. For this reason, we not only strive to offer top quality products, but training and tools to help you succeed.

These are just some areas of concern when you start a tea business. As a member of Tea Connexions, you get a turn key tea business, including access to training, marketing tools, guidance on business and marketing, marketing support through our websites, e-commerce, and live support from our staff. All you have to do is market the product, that's it. We even offer you downlodable marketing tools that you can use to create a strategy to get customers. For instance, posted in the training area is a downloadable wholesale kit in a MS Word format that you can customize and give to prospective gift shops, tea shops, etc. that may want to purchase from you and re-sell to other customers. One of our Distributors used this kit to set up 10 wholesale clients in just 30 days.

My hope, is this short explanation outlines some of the challenges involved in starting a tea business and how we can help.

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II. PRESENT MEMBERSHIP STRUCTURE

When the Buying Group was launched there were two (2) membership price groups: 1) Distributors; and 2) Drop Ship Distributors.

The main difference between the two groups is price on re-order of products.

Distributors are able to purchase their products at 30% below wholesale.

Drop Ship Distributors are able to purchase their products at 15% below wholesale.

This means that if an item has a suggested retail value of $20, suggested wholesale of $10, then the price that a Distributor would pay is $7 and the price that a Drop Ship Distributor would pay is $8.50.

MSRP: $20.00
Wholesale: $10.00
Drop Ship Distributor Cost: $8.50
Distributor Cost: $7.00

We have become successful based upon this model and have built a solid base of members, some of which have been with us since 2001. Presently, we have bundled the offerings of our memberships that include marketing tools, both electronic and print, start up samples, e-commerce services, training, and other services. For instance, presently a Silver Distributor pays $4201.60 and gets the following benefits:

-$1765 worth of product samples, expressed at retail value.
-100 Gourmet teas...beautifully packaged catalogs.
-200 Tea...the beverage of choice brochures.
-1000 Business Card Brochures.
-Access to Distributor online training and our conference calls.
-A price of 30% below wholesale on re-orders of tea.
-A turn-key e-commerce solution valued at $3,259.

A basic Distributor Membership, without E-Commerce and Business Card Brochures, costs $2589.91.

A basic Drop Ship Distributor Membership, costs $744.27.

Membership fees are collected so that we can continue to offer the training, below wholesale prices, economies of scale pricing on marketing tools, and research and development.

To learn more about our present membership structure and all that Tea Connexions offers, download our detailed information kit

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III. 2006 MEMBERSHIP STRUCTURE

In 2006, we will be changing our membership structure for three key reasons:

1. We have a base of members that have expressed concerns about the growth of the buying group and the value of their membership. At the same time, each year we have been increasing the products and services we offer. For instance, in 2005, we launched our market training seminars and conference calls to further assist our members. For this reason, each year, we have been increasing the cost of membership. For instance, back in 2001, a Distributor membership only cost $999, today it is $2,589.91 and in 2006 it will cost $9,995. Similarly, in 2001, a Drop Ship Distributor membership only cost $149, today it is $744.27, and in 2006 it will cost $4,995. Such increases reward our existing members for their loyalty and committment and also increases the value of their memberships. In fact, the value of membership for Distributor members that joined in 2001 and 2002 at $999 will be worth 10 times more in 2006.

2. Price increases raise the bar for new members joining the Buying Group. Our goal in 2006 is to only attract entrepreneurs that are truly serious about starting a tea business. Consider this, the greater the investment, the greater the committment. This means new members in 2006 will more likely use the training and support services we offer.

3. Finally, rather than bundling services, as we presently do, the memberships in 2006 will be straight membership packages with coupon offers for discounts on the initial products and services that one wishes to receive. To date, we have had many tell us that they don't want all of the products or services that we bundle together in say, the Silver Package, outlined above. To avoid this situation, in 2006, we will be offering memberships and coupons with values of up to $7000 depending on the membership chosen. For instance, Distributor members that join for $9,995 will receive coupons with a value of $7000 that they can use for the purchase of inventory, marketing materials, and other training services. Further details of the new membership structure will be released in 2006 when the new programs are launched.

These membership changes are in line with the original business plan for Tea Connexions. However, when we started in 2001 and the market for specialty tea was in its early infancy, I decided to basically give memberships away at highly discounted rates. As the years have passed, we have increased the product line, services, and training. In 2006, we will continue offering conference call training, offer 7 marketing training dates, 4 Master Distributor conferences, and add new product lines. In 2005, our product line was 209, in 2006 I plan to increase the number of products we offer. Considering "The Factors Necessary To Start A Tea Business" outlined earlier in this e-mail, I strongly believe that the membership changes in 2006 better reflect the value of membership in the Tea Connexions Buying Group.

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CLOSE TO 3 MILLION DOLLARS INVESTED TO DATE

To date, I have invested close to $3 million dollars getting this business established and to the point where we can offer all the products and services we do.

*****The membership prices in 2006 will better reflect the value of membership in the Tea Connexions Buying Group.*****

So, what does this mean for you? You are probably wondering whether or not you should make a decision and join before the membership changes go into effect.

Well, this really depends on you. What I can say, however, is that in 2006, it will cost substantially more for you to become a member of our Buying Group.

Consider the price increases:

Drop Ship Distributor Membership Cost in 2005: $744.27
Drop Ship Distributor Membership Cost in 2006: $4,995.00

Distributor Membership Cost in 2005: $2,589.91
Distributor Membership Cost in 2006: $9,995.00

Now consider that you have a 30 day guarantee and that less than 1% of our new members cancel, and I think the answer should be clear.

I strongly advise you to make a decision by Friday, January 6th. This will be the last day that we accept new members at 2005 rates.

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GETTING STARTED: VISA OR MC

You have three options to get started:

1. Call Tarene Condie, 1-877-532-3832, and pay with VISA or MC.

2. Alternatively, download our membership application and fax to 1-306-244-7430. You may also wish to send your application form along with an International Money Order in US funds only to:

Tea Connexions Membership Services
515 45th St. W.
Saskatoon, SK
S7L 5Z9

To download the membership application, please click here.

GETTING STARTED: PAYPAL

3. Pay Online with VISA, MC, DISCOVER, AMEX, OR E-CHECK using PayPal.

To pay with PAYPAL, Click here.

NEED MORE INFORMATION?

If you recently inquired and are waiting for materials to arrive by mail or misplaced the original information kit we sent you, then download the information from our website.

To download the Distributor Business Guide and other materials, click here.

CONCLUDING REMARKS

To date, I have invested close to $3 million dollars getting this business established and to the point where we can offer all the products and services we do.

As of January 9, 2006, our new membership structure will be in effect. The new membership prices will better reflect the value of membership in the Tea Connexions Buying Group.

If you wish to take advantage of our lower rates, you have until January 6, 2006 to become a member at a significantly lower cost, saving you thousands of dollars.

Consider the price increases:

Drop Ship Distributor Membership Cost in 2005: $744.27
Drop Ship Distributor Membership Cost in 2006: $4,995.00

Distributor Membership Cost in 2005: $2,589.91
Distributor Membership Cost in 2006: $9,995.00

Since we back our memberships with a 30 day guarantee, and considering that less than 1% of our new members cancel, I think it is safe to say that your risk is minimal and your net gain is substantial.

Friday, January 6, 2006 is the last day that we will accept new members at 2005 rates.

Take action.

Save thousands.

Give yourself a business this holiday season.

Take back control of your life.

Get financial independence.

Lead the life that you always wanted.

I shall look forward to welcoming you to the Tea Connexions family.

With kind regards.

Yours sincerely,

Sanjay Gupta
President/CEO
Tea Connexions
Shangers Teaopolis Ltd.

P.S. To date, I have invested close to $3 million dollars getting this business established and to the point where we can offer all the products and services we do. The membership prices in 2006 will better reflect the value of membership in the Tea Connexions Buying Group. Effective Monday, January 9th, our price changes go into effect. Cost for a Drop Ship Distributor Membership will increase from $744.27 to $4,995. Cost for a Distributor Membership will increase from $2,589.91 to $9,995. Submit your application by Friday, January 6th to take advantage of 2005 rates. All 2005 Membership packages are backed by a 30 day guarantee. Plus, less than 1% of our new members cancel their memberships. Give yourself a business this holiday season so that you can get back control of your life, get financial independence, and finally lead the life that you always wanted. To get started call Tarene Condie, 1-877-532-3832. Alternatively, click here to download the membership application. from and fax to 1-306-244-7430.