COMPENSATION PLAN MAY 2018

Transcription

1 COMPENSATION PLAN MAY 2018 We will continue to grow in ways that bring happiness to everyone involved by enhancing their health, quality of life and the opportunity for financial freedom through the use of our Aloe products.

2 DEFINITIONS ASSOCIATE Any independent distributor who has filled out the Associate Application and Agreement and is eligible to participate in the Compensation Plan. To receive compensation, an Associate must generate 100P of Basic Product sales (also called "points"). To sign up as an Associate, a bank account and social security number or ITIN will be required. An Associate who has not generated 100P of the Basic Product for three (3) consecutive months will be automatically reclassified as a Preferred Customer. AUTOSHIP PROGRAM An optional product order that is automatically generated from the start date selected. Orders are processed automatically every month. AutoShip Program allows Associates and Preferred Customers to receive an additional discount. Members in the Autoship Program must have a credit card or bank account. BASIC PRODUCT HG Organic Aloe Vera Juice, Vera Jell. CLOSER A Closer is an Associate holding Green Leader status or higher who helps a Sponsor to enroll customers that result in qualifying "First Time" sales. This destination must be noted on enrollment application by enrollee or the Closer will not be recognized for this First Order Bonus. COMPRESSION Compression describes the method used to fill a temporary vacancy in a Marketing Organization left by an Associate who does not generate the minimum points in a given month and is therefore considered inactive for that month and not eligible to earn bonuses. FRONT A Front is an Associate or Preferred Customer who has been enrolled by a Sponsor and is the first level of the Sponsor s Frontline / Downline. FRONTLINE/DOWNLINE A Frontline (or alternately called "Downline") is each one of the individuals enrolled immediately underneath you and their respective Marketing Organizations represent one leg in your Marketing Organization. GROUP UNIT A Group Unit is a Unit owned by an Associate in your Marketing Organization. LEVEL A Level is the layers of frontline/downline individuals in a particular Associate's Marketing Organization. 2

3 DEFINITIONS PREFERRED CUSTOMER A customer who has registered with the company through an Associate, a Sponsor. A Preferred Customer cannot participate the Compensation Plan. They are eligible to receive a discount with their purchases and can still be a member of the AutoShip Program for further discounts. ROLL-UP A Roll-up describes the method used to fill a permanent a vacancy in a Marketing Organization left by an Associate whose Associate Agreement has been canceled or has been inactive for three (3) consective calendar months. SPEAKER A Speaker is an Associate holding First Partner status or higher who speaks at a seminar/meeting who helps Sponsors to enroll customers that results in qualifying "First Time" sales. This destination must be noted on enrollment application by enrollee or the Speaker will not be recognized for this First Order bonus. SPONSOR A Sponsor is an Associate who enrolls another into the Company, They will be listed as the Sponsor should the enrollee fill out an Associate Application and Agreement. The act of enrolling others and training them to become Associate is called sponsoring. UNIT A Unit is made up of three (3) Associates as your Front with two (2) of those Associates having Fronts as well. It is considered "owned" by you. Q: What is a Group Unit for Next Partner Status Requirement? A: In addition to your own Unit (Example 1), you have one more Unit in your group like below. EXAMPLE 1 EXAMPLE 2 Your own Unit LEVEL 1 LEVEL 2 Your own Unit + a Group Unit 3

4 HOW TO BUILD YOUR ORGANIZATION Frontline / Downline Leg When you sponsor A, B and C they are known as your Fronts and are located on your FISRT LEVEL. A s fronts (A1 and A2), B s front (B1), and C s front (C1) are located on your SECOND LEVEL. B1 s fronts (B1-1, B1-2, B1-3, and B1-4) are located in your THIRD LEVEL. LEVEL 1 LEVEL 2 A B C A1 A2 B1 C1 LEVEL 3 B1-1 B1-2 B1-3 B1-4 In the illustration below if A becomes inactive, your organization will be compressed. When your front, A becomes inactive, A1 and A2 who are on your 2nd LEVEL are compressed up to your 1st LEVEL (Compression). A will remain in your 1st LEVEL as an inactive Associate or Preferred Customer. NOTE: Although A1 and A2 move to your 1st LEVEL, they are not your front. This allows you to always be earning as deep in the plan as is possible. LEVEL 1 A INACTIVE A1 A2 B C LEVEL 2 B1 C1 LEVEL 3 B1-1 B1-2 B1-3 B1-4 4

5 HOW TO BUILD YOUR ORGANIZATION If B terminates the Associate Agreement, your organization will be Rolled up. When your Front, B, terminates the Associate Agreement, B1 who was in your 2nd LEVEL, and B1-1, B1-2, B1-3, and B1-4 who are in your 3rd LEVEL are all rolled up ONE LEVEL (Rollup). B1 is now in your 1st LEVEL and B1-1 through B1-4 are now in your 2nd LEVEL. NOTE: Even though B1 locates in your 1st LEVEL, he/she is not your front. This allows you to always be earning as deep in the plan as possible. B LEVEL 1 A A1 A2 B1 C LEVEL 2 B1-1 B1-2 B1-3 B1-4 C1 LEVEL 3 MEMBERSHIP MEMBERSHIP REGISTER ENROLLMENT FEE SPONSORING Preferred Customer Online Written Document FREE NO Associate Online Written Document $10 USD YES ASSOCIATE PRIVILEGES Receive Associate price and discount with Autoship Program membership. Receive discount with Package (Value Package or Deluxe Package) Purchase. Receive Bonus with your efforts. Receive a replicated website to manage your business. 5

6 PRODUCTS P R I C E S ITEM PTS RETAL ASSOCIATE PREFERRED AUTOSHIP CUSTOMER Deluxe Pack MX HG Organic Aloe Vera Juice, 2 cases (6 bottles (600 ml) / case) 200 $ $ $ $ Value Pack Your choice of 2 from HG Organic Aloe Vera Juice (6 bottles (600 ml)/case), Vera Jell (50 ml), and Facial Soap Bars (6 bars) 200 $ $ $ $ Caja Jugo Orgánico de Sábila HG (6 bottles (600ml) / case) 100 $ $ $ $96.00 Vera Jell (50 ml) 100 $ $ $ $96.00 Half & Half Your choice of 2 from HG Organic Aloe Vera Juice (3 bottles (600 ml), Vera Jell (25 ml), and Facial Soap Bars (3 bars) 100 $ $ $ $96.00 Altie Deluxe Set 2 sets of Altie (Cleansing Cream x 2, Facial Wash x 2, Lotion x 2, and Moisturizing Cream x 2) 100 $ $ $ $ Altie Set 1 set of Altie (Cleansing Cream x 1, Facial Wash x 1, Lotion x 1, and Moisturizing Cream x 1) 50 $ $ $ $88.00 Altie Cleansing Cream Altie Facial Wash Altie Lotion Altie Moisturizing Cream One Time Associate Membership Fee $55.00 $55.00 $65.00 $70.00 $28.00 $28.00 $33.00 $35.00 $10.00 $36.00 $36.00 $43.00 $46.00 $22.00 $22.00 $26.00 $28.00 The items may be subject to tax. Prices in US dollar. 6

7 STATUS REQUIREMENTS STATUS ABBR. FRONT *1 POINTS *2 POINTS (12 LV) *3 GROUP REQUIREMENTS (Exclude same frontline / downline for FP or Higher Status) Green Member GM - 100P - - Green Leader GL 3 100P 2,500P A Unit Next Partner NP 3 100P 5,000P A Unit + A Group Unit First Partner FP 5 10,000P A Unit + A Group Unit in two different Frontlines Air White AW 5 20,000P A Unit + NP in a Frontline + A Group Unit in a Frontline Light Yellow LY 5 30,000P A Unit + NP in two different Frontline Water Blue WB 5 50,000P A Unit + FP in a Frontline + NP in a Frontline Earth Brown EB 5 70,000P A Unit + FP it two different Frontline LEAF GREEN Leaf Green LG 5 100,000P A Unit + AW in a Frontline + FP in a Frontline TWO LEAF GREEN Two Leaf Green 2LG 5 200,000P A Unit + AW in two different Frontline THREE LEAF GREEN Three Leaf Green 3LG 5 300,000P A Unit + LY in a Frontline + AW in a Frontline *1 The Fronts need to be an Associate or Preferred Customer who are Autoship Program members. *2 Points generated from sales made by you. *3 Points generated from sales made by your group between Level 1 and Level 12. Points are counted before discount applies. NOTE: Green Leader or higher Status needs at least your own Unit to maintain the Status. 7

8 FIRST ORDER BONUS You will earn First Order Bonus when you enroll a customer as an Associate and generate sales of 100P or for "First Time Purchase". 1.- SPONSORING BONUS (PER ENROLLEE) ENROLL WITH SALES OR MORE $60 ENROLL WITH 100P SALES $ CLOSER/SPEAKER BONUS ENROLL WITH SALES OR MORE ENROLL WITH 100P SALES CLOSER (Apply to GL or higher status) SPEAKER (Apply to FP or higher status) $15 USD $7 USD $4 USD + = Pay to the Order of MEMO Paul Smith Sixty First Order Bonus Signature Nº $ Dollars Sponsor, Closer, and Speaker cannot be the same Associate 8

9 FIRST ORDER BONUS 1. You enroll A and B and generate "First Time" sales from both in the same month. LEVEL 1 A B 100P $60 $30 Total First Order Bonus earned this month is: $90.00 USD 2. You enroll C next month. LEVEL 1 A B 100P C Discounted Points: 190P $60 Base Bonus from A&B s sales 290P X 10% X $0.80 = $23.20 First Order Bonus from C s sales $60.00 Total Bonus earned this month: $83.20 USD First Order Bonus applies to only "First Time" sales generated by Associate regardless of Autoship Program Membership. Base Bonus and Status Bonus do not apply to "First Time" sales. 9

10 BASE BONUS You, Associate, earn the Base Bonus based on the number of Fronts you have and your status. The following chart shows percentages by level multiplied by Points you have generated in your group to calculate the Bonus. NOTE: Base Bonus does not apply to "First Time" sales you generate. GREEN MEMBER FRONT LEVEL LEVEL 1 LEVEL 2 LEVEL 3 1 Front 10% 2 Fronts 10% 10% 3 Fronts or more 10% 10% 10% If you are Green Member, percentage of your Bonus depends on the number of fronts you have in a month the Bonus earned. EXAMPLE 1 : 1 FRONT EXAMPLE 2 : 2 FRONTS LEVEL 1 LEVEL 2 LEVEL 1 LEVEL 2 10% 10% 10% A B A B C 10

11 BASE BONUS Green Leader & Next Partner LV1 LV2 LV3 LV4 LV5 LV6 GL 10% 10% 10% NP 8% 8% 8% First Partner through Three Leaf Green LV1 LV2 LV3 LV4 LV5 LV6 LV7 LV8 LV9 LV10 LV11 LV12 FP AW LY WB 3% EB LG through 3LG 3% 3% 3% 3% 3% 3% 1% 1% 1% 11

12 BASE BONUS You are Green Member and have the group shown below LEVEL 1 A B D 100P LEVEL 2 LEVEL 3 E 100P F H 100P G I 100P Associate Preferred Customer All sales points in your group count regardless of Autoship Program Membership. LV1 LV2 LV3 500P X 10% = 50P 400P X 10% = 40P 300P X 10% = 30P 120P X 0.80 = $96.00 (1P = $0.80) Your total Base Bonus is $

13 STATUS ADVANCEMENT BONUS The Status Advancement Bonus will be earned when an Associate meets the status requirements within a certain period of time form the enrollment month. NOTE: If Preferred Customer becomes an Associate, the month you enroll as Associate will be the enrollment month for the Status Advancement Bonus. REQUIREMENT STATUS PERIOD FROM ENROLLMENT REQUIREMENTS BONUS Green Member 6 Months Build 1 Unit Up to $420 (70/m) Green Leader 1 Year See Status Requirements Up to $840 (140/m) Next Partner 2 Years See Status Requirements Up to $1,260 (210/m) Status Advancement Bonuses are paid for six (6) months starting a month after you reach the requirement. If the requirements are not met during one of the six (6) months after the payment begin, the no Bonus will be earned for the month. 13

14 STATUS ADVANCEMENT BONUS You, as a Green Member, have built a Unit. The Bonus is earned starting from the month you built the Unit. Payment for six (6) months will follow each month after as long as requirements are met. UNIT REQUIREMENT LEVEL 1 LEVEL 2 UNIT: 3 Associates as your Fronts and 2 of them that have at least a Front. All persons in the Unit must be Associates with Autoship Program. 3 Fronts must be sponsored by you. APR MAY EXAMPLE JUN JUL AUG SEP OCT BUILD A UNIT MEET MEET MEET MEET MEET $70 $70 $70 $70 $70 $70 $70 X 6 MONTHS = $420 APR MAY JUN JUL AUG SEP OCT BUILD A UNIT MEET X MEET MEET MEET $70 $70 $0 $70 $70 $70 $70 X 5 MONTHS = $350 14

15 STATUS BONUS First Partner or higher Status Associates earn the Status Bonus based on the percentage of your entire group/organization's sales points illustrated in the chart below. (1 point = $0.80) If there is a First Partner or higher Status Associate in your group, those Associate s group sales points are subtracted from your group's sale points. NOTE: An Associate's "First Time" sales points are not factored in Status Bonuses. STATUS % PARENT AWAY-1 PARENT AWAY-2 PARENT AWAY-3 & THEREAFTER FP 1% - AW 1% 1% - LY 1% 0. - WB 6% 1% 0. - EB 7% 1% 0. - LG 8% 1% LG 9% 1% LG 10% 1% PARENT AWAY In case you have the same Status Associate or higher Status Associate in your group, the Parent Away percentage will apply. If Three Leaf Green Associate has 300,000 points or more in the group, Parent Away-3, 0., will apply to every 100,000 points increase. 15

16 STATUS BONUS Example 1: YOU ARE AIR WHITE YOU RE AW Total sales of your group 1P = $0.80 (25,000P) Total sales of your group multiplied by on the chart. 25,000P X X 0.80 = 800P Your Total Status Bonus is $800 Example 2: YOU ARE LIGHT YELLOW AND HAVE AN AIR WHITE IN YOUR GROUP 1P = $0.80 YOU RE LY YOUR FRONTLINE / DOWNLINE, A IS A AW. TOTAL SALES OF THE A S GROUP (10,000P) Total sales of your group (45,000P) Your Status Bonus is $1, Subtract total sale points of s group from total sales of your group, then multiply by, which is LY s Status Bonus percentage. (45,000P -10,000P) X X 0.80 = $1, Total sales points of A s group multiplied by 1%, which is a difference (1%) between LY s and AW s Status Bonus percentage. 10,000P X 1% X 0.80 = $80 16

17 STATUS BONUS Example 3: YOU ARE LEAF GREEN AND HAVE THE SAME STATUS ASSOCIATES IN YOUR FRONTLINE / DOWNLINE. B IS LG 100,000P A IS LG YOU ARE LG 280,000P 120,000P 1. Subtract total sale points of A & B s group from total sales points of your group, then multiply by 8%, which is LG s Status Bonus percentage. 280,000P - (120,000P + 100,000P) = 60,000P x 8% x $0.80 = $3, Subtract total sale points of B s group from total sales points of A s group, then multiply by 1%, which is LG s Parent Away-1 s percentage. 120,000P - 100,000P = 20,000P x 1% x $0.80 = $ Total sales points of B s group multiplied by 0., which is LG s Parent Away-2 s percentage. 100,000P x 0. x $0.80 = $400 Your Total Status Bonus is: $3,840 + $160 + $400 = $4,400 17

18 WORLDWIDE BONUS The of total Worldwide sales subtracting Worldwide Meeting Expense Reimbursement is shared and allocated between First Partner and Three Leaf Green. FIRST PARTNER AIR WHITE LIGHT YELLOW WATER BLUE EARTH BROWN LEAF GREEN TWO LEAF GREEN THREE LEAF GREEN 20% 20% % 10% 18

19 RETAIL BONUS If an Associate or Preferred Customer in your LV1 purchases products at a price different from an Associate with Autoship s price ($96) or an Associate without Autoship's price ($104), the difference will be paid to the Associate who is the Sponsor. This bonus applies to Basic Product sales. (HG Juice and Vera Jell) You are Associate with Autoship A WITH AUTOSHIP C WITHOUT AUTOSHIP HG JUICE (6 UNITS) $104 D WITHOUT AUTOSHIP VERA JELL (50ML) $120 B WITHOUT AUTOSHIP HG JUICE (6 UNITS) $120 Associate Preferred Customer $8 ($104 - $96) from Associate C + $24 ($120 - $96) from Preferred Customer D. Your total Retail Bonus is $32 Associate A Retail Bonus is $24 ($120 - $96) MEETING EXPENSE REIMBURSEMENT Applies to Green Leader or higher Status. If you want to hold a seminar/meeting as GREEN LEADER or higher Status Associate, a seminar/meeting room fee is supported by the company with certain requirements. It must be open to public and advertised on your website where anybody can attend it for free. Associate needs to fill out an application form and have it approved by the company to receive the Meeting Expense Reimbursement. Further details: Contact customer care, info@hg-america.com, or /

20 Partners for Life