ACTIV. Commission Periods Compensation Plan

Transcription

1 ACTIV Compensation Plan The Activ8 Compensation Plan is a revolutionary concept which allows for truly unmatched potential for long-term residual wealth. Designed from its very inception to create real opportunity, the Activ8 Compensation Plan identifies and overcomes the industry s most prevalent concerns and creates an incomparable culture, lifestyle, and income potential. This document is designed to be very detailoriented, allowing for all engaged ARIIX Representatives to fully understand all the bonuses and processes that they will be a part of in regards to the Activ8 Compensation Plan. This document is not intended for recruitment or marketing, but to be a straight forward explanation of the processes involved in the technical programming for calculating commissions. Commission Periods Commission Periods of ARIIX begin each Saturday at 12:00 AM (MST), and close each Friday at 11:59 PM (MST). All the sales activity that takes place during the week within that time frame will be considered for commission and bonus qualification payout. This weekly payout schedule will create 52 commission periods for every calendar year designated by the week and year of that period. For example, the first commission week within 2012 will be designated 1/2012, while the 20th commission weekly period in 2012 will be designated 20/2012. Individuals who have become Representatives of ARIIX, and subsequently have generated volume either from personal consumption, or from volume created from purchases and subsequent sales of products to retail customers in excess of 75 points will become eligible for commissions for 4 subsequent weeks. This 4 week period is referred to as a Cycle. Sufficient volume must be generated each cycle to maintain commission eligibility. Membership Types Members A Member is an individual enrolled with ARIIX. They are able to purchase ARIIX products at a discount, qualify for product discounts through the Auto-Delivery Program and IIX Membership, acquire an Income Position within the tree genealogy, refer other individuals as Members, and are able to earn product credits towards the purchase of their personal product or inventory. Prospects have filled out a Member Application form, agreed to the Terms & Conditions, as well as the Policies & Procedures, and have been Sponsored by another ARIIX Member or Representative. Upon earning product credits equivalent to $30 USD in product discount in any cycle (most recent past 4 weeks), Members are able to upgrade their status to becoming an ARIIX Representative. Representative As Members surpass $30 USD in product credit in any cycle, they are able to upgrade their membership type to a Representative. As a Representative, they maintain all of the rights and privileges of an ARIIX Member, including the ability to enroll other Members, and to qualify for product discounts. Additionally, an ARIIX Representative, rather than only earning product credits, is able to earn and generate commissions based upon their activity within the Activ8 Compensation Plan. To become a Representative, a Member must have agreed to and signed PART B of the Representative Policies & Procedures document. Distributor Both Members and Representatives as a group can be called Distributors collectively.

2 Retail Customers A Retail Customer is an individual that purchases products directly from an ARIIX Representative or Member. Retail Customers are not enrolled with ARIIX. The price Retail Customers pay for ARIIX products is determined by the Distributor. The selling price to Retail Customers must be above the purchase price paid by ARIIX Distributors. However, ARIIX strongly recommends that the selling price should be the suggested Retail Price. This allows Representatives the ability to make a profit based on difference between their price paid and the price they collected for sold products. Preferred Customers Preferred Customers are registered with ARIIX, and are therefore able to participate in the Auto-Delivery Program and receive a 15% discount on the retail price of their product orders through that program. Preferred Customers are not allowed to sponsor, or enroll, Members, and they are not able to earn product credits or commissions through the Activ8 Compensation Plan. They are not given any Income Positions within the ARIIX Genealogy Organization. All volume generated from Preferred Customers are assigned to the sponsoring Member or Representative and are placed within their organization for that Commission Period which would generate the highest commissions for the sponsor of the Preferred Customer for that particular commission period (see Auto-Balancing below). Preferred customers may also purchase a IIX Membership upon enrollment for a one-time cost of $25. This allows Preferred Customers an additional 15% off the suggested retail price of ARIIX products. IIX Membership & Auto-Delivery Upon enrollment, the new ARIIX Member has the opportunity to purchase or acquire a IIX Membership (Pronounced Two-X ). The cost of the IIX Membership upon enrollment is $150 USD if purchased separately, or by generating 500 points in Personal Production Volume in your first 4 weeks. ARIIX also has a number of packs that add value and help you qualify with your 500 points as a convenience. Once the IIX Membership is acquired that Member or Representative will be qualified for special perks and bonuses for life! With the IIX Membership they will receive an additional 15% discount on the retail price of all product purchases, as well as double their earnings from all Bonuses within the Activ8 Compensation Plan. IIX Memberships can only be achieved within 4 weeks of enrollment as a Member either by purchase, generating 500 Personal Volume points within the first 4 weeks or through upgrading to a different pack which includes the IIX Membership (also only available within the first 4 weeks of enrollment). All ARIIX Members and Representatives are offered the opportunity to participate in the Auto-Delivery Program, which allows them to receive their product at their door every cycle (four weeks). As an added benefit, active Auto-Deliveries receive an additional 15% discount off the retail price. The Auto-Delivery Program is the easiest way to ensure that a Member and Representative remain Active within the Activ8 Compensation Plan. By having both the IIX Membership and participating in the Auto-Delivery Program, an ARIIX Member or Representative will be able to combine their discounts for a total of 30% off of their product purchases (15% for IIX Membership and 15% for an active Auto-Delivery). All Auto Deliveries for a given period are generated the first day (currently Saturday) of that period regardless of the day of the week in the period that Auto-Delivery run is scheduled. This allows the Member and Representative the ability to see Volume generated from their downline Auto-Deliveries at the beginning of the period, thus enabling them to focus on volume generations outside of Auto-Deliveries for that period to achieve rank and earnings qualification levels. Active Status To be eligible for commissions or credits, a Distributor must have an Active status. To be considered Active, a Distributor must: 1) Accumulate a minimum of 75 Personal Product Volume points (PPV) every Cycle (this Cycle coincides with the four week Auto-Delivery Program), and 2) be current on their renewal fee of $25. This renewal fee occurs 365 days after the enrollment date and annually thereafter. Retail Profits All ARIIX Representatives and Members are given the opportunity to purchase the life changing ARIIX product line at a discounted Wholesale Price with the Auto-Delivery Program, and retail the same product at a Suggested Retail Price.

3 That difference between the price purchased and the price sold becomes profit for the ARIIX Representative. With the IIX Membership they will receive an additional 15% discount, which doubles their potential Retail Profits from retailing the product to their Customers. Loyalty Program Some of the products offered by ARIIX can be classified as Loyalty Products. The products are; A) products that are difficult to differentiate in the Marketplace, B) products to which consumers are very price sensitive, C) products which are not consumable to a high degree, D) products which are only of value when used in tandem with other ARIIX products Hence, these products will be priced competitively in comparisons to competitors inside out outside of the direct selling channel. Points will not be associated with Loyalty products. The sponsor of the purchaser of the Loyalty products shall receive 15% commission of the purchase price of the loyalty product(s) purchased. Additionally, another 15% of the purchase price will be added to the leadership bonus pools (2/3 (10%) to the Income Position Bonus and 1/3 (5%) to the Pay line Bonus). IIX membership discounts will apply for consumers. Base Commissions After activating their first Income Position with at least 150 points of Personal Product Volume (PPV), ARIIX Representatives who remain Active will have the opportunity to build their organization in a truly revolutionary and profitable way. Each Income Position will start with at least 2 lines for placing newly enrolled ARIIX Members. A business grows through the addition of additional sales stemming from the volume generated from personal volume, volume from Preferred Customers, and/or additional Distributors placed below this Income Position. The team line which accumulates the greatest volume is identified as the Power Line. All subsequent lines are termed Pay Lines. Base Commissions are 15% of the volume generated from all Pay Lines, up to $2,000 USD per Pay Line, per week. In the event that the cumulative sum of all volume on all Pay Lines are less than 13,334 points in a week and less than the amount of volume on the Power Line, any remaining difference is carried forward on that Power Line into the next Commission Period. The first time a Pay Line generates the potential of $2,000 (13,334 X.15) in Base Commissions for a Commission Period, that Payline and subsequent Income Position are said to be Optimized. Thereafter, a new Pay Line is added to the existing Income Position; permitting for an unlimited potential number of Pay Lines per Income Position. In addition to this, the ARIIX Representative will also be given the option of operating a new Income Position within the Pay Line which reached the optimized $2,000 in Base Commissions from Distributor volume on that Pay Line. This allows for additional earnings and greater stabilized volume from the depths of that organization. It should be noted that given the fact that a Power line can vary from week to week, there must always be one optimized line that does NOT have a re-entry Income Position placed on it. The Activ8 Base Commission model provides a true opportunity to generate unlimited residual income as the number of potential Pay Lines increases, as well as providing additional Income Centers to produce both wealth and stability previously unseen. Auto-Balancing All volume generated from either Preferred Customers or personal purchases in excess of 75 point generation requirement for a cycle, is Auto-Balanced. This means that this volume is placed where it would generate the greatest amount of commissions or credits from that sponsoring Distributorship during that particular week. Team Lead Bonus The qualifying Representative at Team Lead or above, with at least four Active Personally Sponsored ARIIX Members in their team, will earn an additional $ By having a IIX Membership, the earning ARIIX Representative will double this bonus, giving them $ This bonus is paid out every four weeks that there are four Active Personally Sponsored (have a qualifying order (75/100 pts depending on market) within their qualifying period)*ariix Distributors regardless of their country of origin. *Qualifying orders are those orders that generate the necessary points (75 or 100 pts depending on market) to qualify an account for commission eligibility within a qualifying period--generally every 4 weeks from activating their income position).

4 Matching Bonus and Gold Member Status As an added incentive for building any Power or Pay Line, ARIIX Representatives are rewarded through the Matching Bonus. The Matching Bonus gives the ARIIX Representative compensation equal to a percentage of the Base Commission earned by individuals they have enrolled as Distributors and their subsequent enrollments up to 7 levels or Generations deep. Therefore, Individuals personally sponsored by a Representative are considered 1st Generation to the sponsor. Individuals these 1st Generation people sponsor are 2nd Generation to the initial Representative. Similar to a family tree, the Children of grandparents would be 1st Generation, while their grandchildren would be 2nd generation and so forth down 7 generations. Representatives qualify for their first 3 Generations of Matching Bonus through achieving Gold or Silver Member Status. Gold Member Status is accomplished by enrolling 4 new ARIIX Members with a 150 initial qualification) (and a subsequent 75 point minimum Auto-Delivery) within the Distributors first 8 weeks of their initial enrollment as a Member. After this initial 8 weeks, Silver Member Status is attained by maintaining a minimum of 4 active personally sponsored Distributors each cycle. Qualifying to earn the fourth and fifth generation of the Matching Bonus requires Base commission earnings of $500 USD and $1,000 USD respectively each week. The sixth generation requires having at least one optimized Income Position per week, and the seventh generation is granted with a 2nd optimized Income Position per week. A IIX Membership doubles the matching percentage on all qualified Generations. Sponsorship Tree Matching... Match % IIX % Qualifications Generation 1 7.5% 15% Gold or Silver Member Status Generation 2 5.0% 10% Gold or Silver Member Status Generation 3 2.5% 5% Gold or Silver Member Status Generation 4 2.5% 5% $500 in Base Commissions Generation 5 2.5% 5% $1,000 in Base Commissions Generation 6 2.5% 5% 1st Optimized Income Position Generation 7 2.5% 5% 2nd Optimized Income Position This matching bonus is paid with a Compression component which ensures a higher payout to Representatives. Any commission ineligible (not qualified) earning Representative who has not attained either Gold or Silver Member Status, will be removed for that particular week, from occupying his generation in the 7 levels. As a result, all generations will shift up a level to the next sponsor(s) above, Thus ensuring far less matching bonus goes unpaid to the Representatives. If Silver status is re-attained during any week, matching bonus is resumed to the individual and all subsequent generations are returned to their previous level. Income Position Bonus As Representatives begin to optimize their Income Positions (with at least one Pay Line generating $2000 USD in Base Commissions), they will begin to participate in the Income Position Bonus which contains 2% of the Total Company Volume. Shares are issued for each optimized Income Position a Representative has within that week; one share for their first optimized Income Position, two shares for their second (totaling three), and three shares for their third (totaling six). There is no limit to the amount of Income Positions that can be optimized, and therefore there is no limit to the amount of shares that can be earned in this Bonus. With a IIX Membership the number shares earned within this Bonus is doubled. Pay Line Bonus Every ARIIX Representative will receive shares towards 1% of the Total Company Volume for the commission period, with each additional optimized Pay Line (earning $2000 USD) after their first Pay Line. One share of this Bonus is issued for the second optimized Pay Line, an additional two shares are issued for a third optimized line (totaling three), and three shares for the fourth optimized Pay Line (totaling six). There is no limit to the amount of shares a Representative may earn in this bonus. With a IIX Membership double the earned shares within this Bonus. Savings Bonus Every time an ARIIX Representative earns more than $250 in Base Commissions, they will collect an additional 7.5% of their weekly base commissions held as credits until a minimum of 10,000 credit points are reached. With a IIX Membership you can earn 15% of Base Commissions. Once 10,000 points are reached, a Representative may take

5 the credits out in the form of cash, and all subsequent earnings may be taken at any time. A maximum of 500 points are available to be accumulated each week for this Bonus. Ranks and Promotions... Within the Activ8 Compensation Plan all titles and leadership ranks are determined by the amount of earnings generated with the ARIIX Representative s Base Commission for a given Commission Period. Earn more-be more in the Activ8 Compensation Plan. A single Week Base Commission Amount USD$ Rep Title A single Week Base Commission Amount USD$ Rep Title $30 Team Lead $50 Senior Team Lead $75 Supervisor $100 Senior Supervisor $150 Manager $200 Senior Manager $250 Director $375 Senior Director $500 vice President $750 Senior Vice President $1,000 officer $2,000 Senior Officer $3,000 President $4,000 Chief Executive Officer $6,000 Chairman $8,000 Chairman Level 2 $10,000 Chairman Level 3 $12,000 Chairman Level 4 etc. Return Process A Distributor may return less than $250USD worth of products within 6 months in unused condition. Any returns shall be net of any commissions paid that would NOT have been earned had the returning purchase not been made and credited as commissionable points. Negative volume shall be rolled up the tree on the week that it was returned.