Arbonne Compensation Plan

Transcription

1 Arbonne Compensation Plan Training and Overview *This slideshow was created by an Arbonne Independent Consultant. For full compensation plan details, please see Arbonne s Success Plan Materials.

2 Active Consultant Requirements: When you sign up as a consultant, you are automatically one for 12 months, regardless of activity. To get paid, you need at least 150PQV each month. PQV is the total of what you personally purchase and what you sell to your clients (more next page). This means you do not personally need to purchase each month; you simply need to be sure your PQV is 150 or more.

3 RV and QV explained RV is Retail Volume and what your pay is based on. QV is Qualifying Volume and the volume that is counted toward promotions, bonuses, etc. In most cases, they are the same, but there are some products where the RV is slightly less, due to high cost to produce. PQV is Personal Qualifying Volume: the total of what you personally buy and what you personally sell to your Clients and Preferred Clients

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5 How do we get paid? 1. Commissions: All consultants, regardless of title, make the same commission amounts: 35% on Retail Clients 15% on Preferred Clients Commissions are based on Order RV Why sign people up as PCs and make less? Because PCs are your loyal, repeat buyers. As long as you give great service, that 15% will be much bigger over time than a one time 35%

6 2. Overrides Overrides are based on 65% of group(team) RV 1. Example: District Manager makes 8% Central District. On a $4000 month: 4000x.65x.08= $208 override Overrides are on top of commissions 3. Bonuses Monthly bonuses can be earned at the District Manager, Area Manager, and Regional Vice President levels Bonuses are based on both volume and sponsoring (PCs and ICs count for sponsoring) Bonuses are spelled out in the CDARN; slide #13

7 Why/how is this not a pyramid scheme? Pyramid Schemes are illegal A Pyramid Scheme is where participants attempt to make money solely by recruiting new participants into the program. The hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same. (per the SEC website) There is no actual exchange of goods or products for sale. Arbonne does not give you a signing bonus for bringing on each new teammate. Arbonne pays you commission for selling products, and overrides for helping teach others to do the same.

8 District Manager (DM) Why promote to District Manager? Your override increases to 8% You can earn monthly bonuses of $200 by having a Central District Volume of 5,000QV and sponsoring of 5 new PCs/ICs How to get there: 6000QV over 1 or 2 months or 7500QV over 3 months At least 1000 must be PQV (Personal QV) You must have 2500QV in your final month

9 Area Manager (AM) Why promote to Area Manager? You gain an additional 6% override for a total of 14% override in your central and 1 st generation (more about those later) You can earn monthly bonuses of $400 by having a Central Area Volume of 20,000QV and sponsoring of 10 new PCs/ICs Your business can become willable How to get there: 24,000QV over 2 months or 30,000QV over 3 You must have 10,000 in the first and last months You must have 2500 Central District each month of the qualification period

10 Regional Vice President Why promote to Regional Vice President (RVP)? You gain an additional 3% override for a total of 17% for central and 1 st generation You can earn monthly bonuses of $600 by having a Central Region Volume of 60,000QV and sponsoring of 30 new PCs/ ICs You can opt into the Mercedes Benz Cash Bonus Program and earn a monthly bonus to help pay for a white Mercedes of your choice. More info on that found in My Resources when you are logged into your account How to get there: 96,000QV over 2 months or $120,000 over 3 Must have 40,000 in first and last months of the qualification period

11 National Vice President (NVP) Why promote to National Vice President? You gain an additional 1% override for a total of 18% for central and 1 st generation You are eligible to earn the yearly NVP Challenge Trip You can earn a trip to Maui each January for the National Vice President Leadership Meeting (more details on The Source) Your Mercedes Benz cash bonus is increased How to get there: 384,000QV over 2 months or 480,000QV over 3 Must have 160,000QV in first and last months of qualification period

12 There are additional nuances at each promotion level, as explained in the attached CDARN document Please read the Success Plan for additional details on the compensation plan, bonuses, car bonuses, etc

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14 Width and Depth Explained:

15 Width and Depth Continued Your 1 st Generation is made up of your directly promoted managers at your same pay title. So, per the previous slide, at the District Manager level, your 1 st Generation DMs are all those that you have personally promoted, whether you sponsored them, or they floated up to you. You get paid up to 3 levels deep, and get paid as deep as you are wide. If you have personally promoted 2 DMs, you will get paid 2 levels deep. Meaning, you will get paid on your direct DMs and all their direct DMs. Same with 3 wide/ deep. See previous slide for visual of this.

16 Central District, Area, etc. What does Central mean? Here, we take Central Area. Central mean all of your team members not yet at your management level. Per the chart, your Central Area is the top pink bubble, and consists of your CNS and DMs, and their CNS and DMs. Once a DM promotes to Area, they become your 1 st Generation Area, and are no longer in your Central Area. For purposes of bonuses, they not longer count toward your volume and sponsoring, even though you continue to be paid on them as a 1 st Generation.

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18 Can you pass your sponsor, or be passed by someone you sponsored? The short answer is yes. The great thing about Arbonne is that you own it. Nobody can hold you back. A sponsor cannot simply sit back and ride one teammate s wave to the top without building their own business. That is one reason this is a TRUE business model. What does that look like? The sponsor remains the sponsor, even if they are passed, as long as their consultant ID remains active. The sponsor gets paid on all levels up to their own, so essentially nothing is lost. Example: Let s say A sponsors B. A promotes to RVP. Then B promotes to RVP, making A an ERVP. B then goes on to NVP, but A doesn t. A still gets paid on B at the District, Area, and Region levels, just as before. Just not on the Nation level. If/when A does promote to NVP, A picks up the Nation level of B as well. A is now an ENVP and gets paid on B as a 1 st Generation NVP. Arbonne s comp plan is both generous AND fair. There is NO other plan like it.

19 Speaking of fair what is a Performance Account? Another feature Arbonne has that is highly unusual in the industry is a Performance Account (PA). After each promotion, you have 2 Build Months. This means that you have 2 months without any volume maintenance. What does that look like? When you promote to DM, you have 2 months with 0 maintenance. Typical DM maintenance is 2500QV per month. All your volume those two months goes into your PA. So if you do 3000QV and 4000QV, your PA is at 7,000. After the 2 months, everything above your maintenance goes into the PA. So if you do 3000QV as a DM, 500 would go into your PA. What if life happens and you have a bad month? If you re a DM, and you only hit 1000QV one month, the remaining 1500 for maintenance ( ) is pulled from your PA What does this mean ultimately? You CANNOT lose a title/promotion in one month You have an emergency fund for those what ifs Our comp plan is second to none

20 What are main differences between the Arbonne Comp plan and others? It is simple. It is based on effort and volume, rather that people and legs. It is easy to understand how to grow and promote. There are no recruiting requirements. You grow your team at your pace, based upon your goals. It is generous. Monthly cash bonuses. Car bonuses. Yearly Incentive Trips. It is forgiving. You cannot lose a promotion title over one bad month. Most companies do not offer this same feature. There is NO income cap! You can get paid on infinite width, which means there is no limit to then kind of income you can create with Arbonne.