IntelliCare Connect. Compensation Plan
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1 IntelliCare Connect Compensation Plan
2 IntelliCare Connect Compensation Plan Introduction People who join IntelliCare Connect to retail products and health related services and are interested in building a business are known as an Independent Certified Lifestyle Coach (CLC). You become a CLC for IntelliCare Connect by; 1) Submitting a completed CLC application; 2) Submitting your monthly subscription order form for your Personalized CLC Website* & business center; 3) Completing a Certification Training Test (through IntelliCare Connect Corporate website); and 4) Submitting a properly completed W-9 form (this must be done within 30 days of passing the Certification Test or the enrollment application will be cancelled). Upon completing the above, you are eligible to retail IntelliCare Connect products and health related services and to participate in the IntelliCare Connect Compensation Plan. The training program will provide you with the education necessary to sell our products and services as well as the steps to determine when a customer requires an evaluation by a Company Health Advisor. You may now earn retail sales commissions on your personally acquired customers orders. *There is a monthly subscription fee of $9.95 for your Personalized CLC Website and Business Center. Three Phases of the Compensation Plan The Compensation Plan itself incorporates three phases of compensation.* I. The Marketing Phase is designed to compensate you for retailing product and health related services to customers and your compensation is based on the Suggested Retail Value (SRV) of each product or service. II. III. The Management Phase rewards you for building and supporting your customers and CLC Group. All bonuses in the Management Phase are based on the Bonus Volume (BV) associated with each retail product or service. (More on BV later.) The Executive Phase is designed to reward you for assisting and developing strong leadership in your organization. All bonuses in the Executive Phase are based on Bonus Volume (BV). There are eight (8) ways to generate revenue as a CLC for IntelliCare Connect, and it is possible to make money in all eight ways, not just one or two. Each is described in context as it relates to the appropriate and applicable phase of the Compensation Plan. Following describes the ways a CLC can earn an income revenue in accordance with IntelliCare Connect: *Active: A CLC is Active by generating at least 100 in PBV in the qualifying month. 2 P a g e
3 I. Marketing Phase Commissions and Bonuses (based on SRV, Suggested Retail Value) 1. Retail Sales Commissions a) First Order Commission; b) Base Commission 2. Performance Commissions 3. Retail Bonus Pool II. Management Phase Bonuses (Based on BV) 4. Enroller Bonuses 5. Team Manager, Director and Unit Director Level Bonuses 6. Unit Director Depth Bonus III. Executive Phase Bonuses (Based on BV) 7. Executive Director Leadership Bonus 8. Executive Generation Bonuses LET S TAKE A LOOK AT THE THREE PHASES OF THE COMPENSATION PLAN I. Marketing Phase Commissions (based on SRV) Certified Lifestyle Coach Benefits: 1. Retail Sales Commissions: Retail sales are the foundation of your business and every CLC can earn a First Order commission and an ongoing Base commission beginning month 2 and all subsequent months on their retail sales. a) First Order Commission: IntelliCare Connect recognizes the time and effort our CLCs spend in helping create a new customer and will pay you 20% of the Suggested Retail Value (SRV) of your retail customers initial product order. (Company provided Health Service commissions may vary.) b) Base Commission: Beginning with your customer s second product order you will receive a Base Commission of 10% of product SRV. 3 P a g e
4 2. Performance Commission: In addition to your Base Commission, you may qualify for a 4% up to 10% Performance Commission (PC) beginning with your retail customers second order and on all subsequent orders based on the qualification in Table 1 below. As your customer base grows, your PC can grow each monthly pay period earning you up to an additional 10% on your NIRS. Your Performance Commission Schedule: Earning Performance Commissions (PC): In addition to your 10% Base Commission you will become eligible to earn a four percent (4%) PC on your No Inventory Retail Sales ( NIRS ) when you achieve at least $500 in Personal Retail Volume (PRV) within the applicable monthly pay period. (See Table 1 below) a) You will become eligible to increase your PC to six percent (6%) on your NIRS when you achieve at least $1,000 in PRV within the applicable pay period. b) You will become eligible to increase your PC to eight percent (8%) on your NIRS when you achieve at least $1,500 in PRV within the applicable pay period. c) You will become eligible to increase your PC to ten percent (10%) on your NIRS when you achieve at least $2,000 in PRV within the applicable pay period. NOTE: Monthly Performance Commissions ARE NOT vested. Your Performance Commission is determined each month based on your PRV and NIRS. Table 1 - Performance Commissions (PC) PRV Qualifications PC Rate Paid on Your Reorder Volume $2,000 PRV in applicable pay period 10% $1,500 PRV in applicable pay period 8% $1,000 PRV in applicable pay period 6% $500 PRV in applicable pay period 4% Less than $500 PRV in applicable pay period 0% 4 P a g e
5 3. The Retail Sales Bonus Pool ( RSBP ): The RSBP is designed to generate retail sales to customers and provides all CLCs regardless of rank with an exceptional opportunity to earn significant income. The Retail Sales Bonus Pool allocates 2% of total gross retail customer sales to the RSBP. The bonus is calculated and paid quarterly to those who qualify. In order to qualify for the pool, a CLC must personally generate at least *$1500 (SRV) Suggested Retail Value in No Inventory Retail Sales ( NIRS ) each quarter. * A representative can choose to retail any dollar amount each month as long as the quarter total equals $1500 (SRV) Retail sales are sales to customers who are NOT also CLC s. NIRS includes: o Purchases made by a CLC s personal retail customers who are on Autoship; o Purchases made by retail customers from the CLC s Personalized CLC Website; o Purchases made by a CLC s retail customers that can be tracked as being purchased and paid for by a retail customer rather than by a CLC. Sales from a CLC s inventory do not meet this criteria; o NIRS purchases must be shipped to the customer s address and payment must be charged to the customer s credit card. Payment by a CLC or shipment to the CLC s address nullifies the sale as NIRS. At the end of the quarter, the pool is divided among qualifying CLC s based on their pro-rata contribution to the total NIRS volume. Example: o Assume 4 CLC s qualify for the RSBP in the quarter: A and B each have $1500 in NIRS C has $1775 in NIRS D has $2025 in NIRS o Assume there is $50,000 in total gross retail customer sales volume for the quarter, and the pool is set at 2% of SRV. o Pool = 2 % ($50, 000) = $1, Total NIRS Volume for the quarter by qualifying CLC s = $1,500 +$1,500 + $1,775 +$2,025 = $6,800. A & B are each responsible for 22% of the qualifying NIRS volume, so they each receive 22% of the pool:.22($50,000) = $220.00each. C is responsible for 26% of the qualifying NIRS volume, so C receives 24% of the pool:.26($50,000) = $ D is responsible for 30% of the qualifying NIRS volume, so C receives 30 % of the pool:.30($50,000) = $ P a g e
6 II. Management Phase Commissions (based on BV) 4. Enroller Bonus: Whether you are at the beginning rank or you have advanced to the Executive rank, you can be assured that you will be rewarded financially for the performance of those that you personally enroll and assist in the IntelliCare Connect Business. As long as you remain Active, you will be paid an Enroller Bonus of 6% of the BV of all the sales generated by CLCs that you personally enroll. (See Table 2 below.) Important items to note: a) After you have enrolled your new CLC, you have up to 30 days to submit a Sponsor Transfer form to place her under a new Sponsor. You must submit a $50 transfer fee and a completed Sponsor Transfer Form within 30 days from the date of the enrollment. You may only make a Sponsor change one time. b) Active means that you have generated 100 PBV in the qualifying month. c) You will not receive Enroller Bonuses on CLCs whom you receive through Rollup and Compression. 5. Team Manager Bonus: In addition to the Enroller Bonus that you can always earn on your personally enrolled CLC s, you can also earn a Level Bonus of 4% of the Bonus Volume (BV) created by every CLC on your first level regardless of whether you personally enrolled them. You must be considered Active and meet the following Team Manager Qualification requirements in order to earn this Bonus: (See Table 2 below.) Team Manager Qualifications and Maintenance: You will advance to the rank of Team Manager in the first monthly pay period that you have 2 personally sponsored CLCs in your Group in different Legs plus 1,000 in Group Bonus Volume (GBV). Your personally sponsored CLCs must be Active during the qualifying month. Thereafter, you must maintain the qualifications stated in the preceding paragraph and maintain your own active status to remain Paid As a Team Manager. You must maintain these requirements in each subsequent pay period. Director Bonus: In addition to the Enroller Bonus that you can always earn on your personally enrolled CLC s, you can also earn a Level Bonus of 4% of the Bonus Volume (BV) generated by every CLC on your first level and a Level Bonus of 4% of the BV generated by the CLCs on your second level regardless of whether you personally enrolled them. You must be considered Active and meet the Director Qualification and Maintenance requirements in order to earn this Bonus. (See Table 2 below) Director Qualifications and Maintenance: You will advance to the rank of Director in the first monthly pay period that you have two personally enrolled CLCs on your Team in different Legs plus 1 active Team Manager Leg. In addition you must generate 2,500 in GBV. Your personally enrolled CLCs must be Active during the qualifying month and your Team Manager must be qualified to be Paid At the Team Manager rank. To remain Paid As a Director, you must maintain these requirements in each subsequent pay period. 6 P a g e
7 Unit Director Level Bonus: In addition to the Enroller Bonus that you can earn on your personally enrolled CLC s, as well as the Level Bonus of 4% BV you can earn on the sales created by every CLC on your first level and 4% level bonus on your second level regardless of whether you are the Enroller you will now be eligible for a Level Bonus of 2% (BV) Unit Director Depth Bonus paid on each level beginning at your Level 3 and continuing in depth until finding another qualified Unit Director in one of your downline Legs. There is no limit to the depth of the levels you may earn until finding another Unit Director. (See Table 3 below.) To become a Unit Director you must be considered Active and meet the following Unit Director Qualification requirements in order to earn your Depth Bonus: (See Table 2 below) Unit Director Qualifications and Maintenance: You will advance to the rank of Unit Director in the first monthly pay period that you have 2 personally enrolled CLCs on your Team in different Legs plus one Qualified Team Manager Leg and one Qualified Director Leg. In addition you must create 5,000 in GBV. Your enrolled CLCs must be Active during the qualifying month and your Team Manager and Director must be Qualified and Paid At their respective Team Manager and Director ranks. To remain Paid As a Unit Director, you must maintain these requirements in each subsequent pay period. 7 P a g e
8 Rank *Certified Lifestyle Coach Table 2 - Retail Commission and Management Bonuses *Team Manager *Director *Unit Director Qualifications To Earn A Rank and Monthly Maintenance Enroll as a CLC by 1) completing a CLC Application 2) completing CLC Certification Testing 3) Submit W-9 within 30 days of Certification Active, plus 2 personally enrolled CLCs in different Legs (at least 2 legs total) Create and Maintain 1,000 in Group Bonus Volume (GBV) Active, plus 2 personally enrolled CLC Legs plus 1 Team Manager Leg (at least 3 legs total) Create and Maintain 2,500 in Group Bonus Volume (GBV) Active, plus 2 personally enrolled CLC Legs plus 1 Team Manager Leg plus 1 Director Leg (at least 4 legs total) Create and Maintain 5,000 in Group Bonus Volume (GBV) Retail Commission 10% to 20% Commission** 10% to 20% Commission** 10% to 20% Commission** 10% to 20% Commission** Enroller Bonus 6% BV 6% BV 6% BV 6% BV Level Bonus Level 1 4% BV 4% BV 4% BV Level 2 4% BV 4% BV Unit Director Depth Bonus 2% BV*** *Active: Be Active by generating at least 100 in PBV in the qualifying month. **See Performance Commission Schedule in Table #1 ***Leadership Depth Bonus: Receive a level bonus of 2% Bonus Volume paid on each level beginning at your Level 3 and continuing until finding another qualified Unit Director. 6. Unit Director Depth Bonus: Upon achieving the Level of Unit Director, you will be eligible for a Depth bonus of 2% BV continuing in depth until another qualified United Director is found. This bonus is paid on all Legs and is interrupted only by another downline Unit Director in any Leg. Upon creating a Unit Director in any Leg, your Depth Bonus will end at that level in ALL legs. However, upon qualifying for the rank of Executive Director, the BV created by that downline Unit Director will be replaced by an Executive Director (ED) Leader Generation Bonus on your entire ED organization. 8 P a g e
9 Table 3 - Unit Director Depth Bonus (Paid through 9 Levels in this example) 9 P a g e
10 III. Executive Phase Bonuses (Based on BV) 7. Executive Director Leader Generation: As an Executive Director, you may qualify for the Leader Generation Bonus, a 2% Bonus on your entire Executive Director Group which includes the Bonus Volume created by every CLC in your Group to unlimited depth until reaching another Executive Director. It is important to understand that the Leader Generation is not level sensitive and provides an outstanding method for sales leaders to earn significant income on their personal Executive Director group. 8. Executive Generational Bonuses: When you have achieved the rank of Executive Director, and you help another CLC in your group reach the rank of Executive Director and meets the qualifications for their own Leader Generation Bonus, he/she will begin to block your Leader Generation Bonus. From that point forward, that person will become your first Executive Generation As such; you will be eligible to earn bonuses based on your ED s total Group Bonus Volume (GBV). No more than 60% of GBV can come from any one Leg. NOTE: Your Generation Bonus increases from your previous 2% to 3% of Generation (BV). You may qualify to earn this 3% (BV) on a total of up to three generations of Executive Directors or higher rank CLCs. (see Tables 3 and 4 below). 10 P a g e
11 Table 4 - Executive Generation Bonuses *Executive *Senior Executive *Presidential Rank Director (ED) Director (SED) Executive Director (PED) Qualification and Monthly Maintenance Active plus 5 Active CLC Legs, 1 of which contains a qualified Unit Director plus Maintain 15,000 GBV in each qualifying month 60% Rule applies** Active plus 5 Active CLC Legs, 2 of which contain a qualified Executive Director plus Maintain 50,000 GBV in each qualifying month 60% Rule applies** Active plus 5 Active CLC Legs, 3 of which contain a qualified Executive Director, 1 of which contains a qualified Sr. E.D. plus Maintain 100,000 GBV in each qualifying month 60% Rule applies** Leadership Generation Executive Team Leader Bonus 2% GBV 2% GBV 2% GBV Executive Generations Generation 1 3% GBV 3% GBV 3% GBV Generation 2 3% GBV 3% GBV Generation 3 3% GBV *Active: Be Active by generating at least 100 in PBV in the qualifying month. **60% rule: No more than 60% of GBV can come from any one Leg, Note: Compression rules apply See Compression (Generational) in Glossary of Terms. 11 P a g e
12 Table 4 - Understanding Generations You As An Executive Director (ED) Your entire Personal Group is your Leader Generation! 2% GBV ED CLC CLC CLC UD CLC Leader Generation 12 P a g e
13 You As An Executive Director (ED) 2% GBV ED 3% GBV CLC CLC CLC CLC CLC Leader Generation ED CLC CLC CLC CLC CLC Generation-1 13 P a g e
14 You As A Senior Executive Director (SED) 2% GBV CLC SED ED CLC ED CLC 3% GBV Leader Bonus ED 3% GBV ED CLC CLC CLC CLC UD CLC UD CLC CLC CLC Generation-1 Generation-2 You As A Presidential Executive Director (PED) 2% GBV CLC PED CLC CLC SED ED 3% GBV 3% GBV 3% GBV Leader Bonus ED CLC CLC CLC CLC UD SED CLC ED CLC ED CLC Generation-1 Generation-2 ED CLC UD CLC CLC CLC Generation-3 14 P a g e
15 Glossary ACTIVE: Be Active by creating at least $100 PBV in the qualifying month. AUTOSHIP: A standing order of IntelliCare Connect s products that is shipped to a CLC or Retail Customer every 30 days. BONUS VOLUME ( BV ): Retail products, and some retail services, are assigned a numerical point value. For example, if a product has 50 points assigned to it, it has a (BV) of 50. (Note that (BV) is not equal to (SRV). (SRV) is the suggested retail value of a product. (BV) is usually less than (SRV). (BV) is used to calculate bonuses in the Management and Leadership phases of the compensation plan. Group Bonus Volume ( GBV ): A CLC s monthly Personal Bonus Volume plus the monthly Bonus Volume generated in her Group are combined to calculate the CLC s Group Bonus Volume. Personal Bonus Volume ( PBV ): The Bonus Volume generated by a CLC s personal purchases (up to 1200 points per month), plus the points associated with a CLC s NIRS, constitute the CLC s Personal Bonus Volume. CERTIFIED LIFESTYLE COACH (CLC): The generic name for an independent contractor/sales person for IntelliCare Connect. COMMISSION: As used in this Plan, Commission is the remuneration paid to a Certified Lifestyle Coach as a result of his or her personal Retail Sales. COMPANY: The IntelliCare Connect corporate or home office. COMPRESSION (Level): Level Bonuses are earned by and paid to Certified Lifestyle Coaches that are Active and qualified at various ranks in the plan. When a Certified Lifestyle Coach fails to meet the minimum Active maintenance requirement, the Company's computer searches downline until it finds a CLC who is Active no matter how far downline it has to search. That qualified CLC s personal volume for the Level plan then Compresses to include all the volume that may have been generated by all non-active Certified Lifestyle Coaches in between to create the next level until it has satisfied its payout requirements with qualified Consultant levels. The term Compression is used to describe the temporary condition that occurs when a CLC fails to meet the maintenance requirements for a particular pay period and the term. Compression does not apply to Enroller Bonuses. (See also Rollup ) COMPRESSION (Generational): Generation Bonus are earned by and paid to qualified Executive Director rank or higher individuals based on the rules of the compensation plan. Should an Executive, Senior or Presidential Director not meet their qualifications for maintaining their rank status during a pay period they will be Paid As the rank at which they do meet qualifications even if it is a rank lower than Executive Director. In that event they would not receive Generation Bonuses. 15 P a g e
16 However, for the purpose of paying upline qualified Executive Directors or higher rank people, the (BV) created in that Non-Qualified person s generation will be subject to compression. The Company's computer searches that person s organization through all downline generations until it finds a Qualified Executive Director or higher rank. It will then compress the non-qualified generational (BV) with that of the first qualified downline generation creating a Compressed Qualified Generation for payment purposes. This compression process continues through three qualified generations no matter how deep in the genealogy it must search until it has satisfied its payout requirements with qualified generations. The term compression is used to describe the temporary condition that occurs when someone fails to meet the qualification maintenance requirements for a particular pay period. DOWNLINE: (See Sales Organization ) ENROLLER: The IntelliCare Connect CLC who is responsible for signing up a new CLC applicant and is listed as the Enroller on the applicant s Certified Lifestyle Coach Application and Agreement. The Enroller is also described throughout the Compensation Plan as the CLC who personally enrolled another CLC. GENEALOGY: The complete set of relationships (as defined by Levels and Legs ) both above and below a Certified Lifestyle Coach in his or her Organization. It can be described as the IntelliCare Connect family tree of each CLC. GENEALOGY REPORT: A computer printout of your Personal Generation and/or your Total Organization. (See Personal Generation and Sales Organization ) GENERATION (1 st, 2 nd, and 3rd): When you have achieved the rank of Executive, and another CLC in your Personal Group also achieves the rank of Executive Director, that CLC and her entire Personal Group separates from your Personal Group and becomes your 1 st Generation. As additional Executive Directors are attained in your 1 st Generation, that Executive Director and her entire Personal Group separates and becomes your 2 nd generation, and so on, and so on. There is no limit to the number of 1 st, 2 nd, and 3 rd generations Executive Director or higher rank persons in your sales organization. GROUP: All CLC s in a CLC s downline down to but not including the 1 st Executive Director in each leg. GROUP BONUS VOLUME (GBV): See Bonus Volume. LEG: Each Lifestyle Coach on your first level of your Group represents a separate Leg of your Organization. LEVEL: The CLCs for whom you are the Sponsor are your first Level. The CLCs whom you re first Level Sponsors are your second Level. The CLCs whom your second Level Sponsors are your third Level, etc. MAINTENANCE: The standard of performance involving a Certified Lifestyle Coach that is required for that Certified Lifestyle Coach to continue being Paid As a particular rank after meeting the initial qualification requirements for that rank. 16 P a g e
17 NO INVENTORY RETAIL SALES ( NIRS ): Retail Sales (as measured by SRV) to customers who place orders through your Personalized CLC Website, and Retail Sales generated from your personal customers Autoship orders. If a CLC carries an inventory of products, Retail Sales to customers from the CLC s inventory DO NOT qualify as NIRS. PERSONAL BONUS VOLUME ( PBV ): See Bonus Volume. PERSONAL RETAIL VOLUME (PRV): Every retail product is assigned Suggested Retail Value ( SRV ). Your PRV is used to calculate product discounts and Retail commissions and bonuses. A CLC s Personal Retail Volume is comprised of: 1. The SRV of products purchased by the CLC from the Company, up to a maximum of $1200 SRV per month; 2. The SRV of products purchased by a CLC s personal retail customers via the Autoship program; and 3. The SRV of Products purchased by a retail customer from the CLC s Personalized CLC website. PERSONALIZED CLC WEBSITE: A semi-customizable website provided to CLCs by the Company through which CLCs and their customers can place orders. QUALIFIED: A Certified Lifestyle Coach that has met all the qualifications during a pay period to earn compensation other than Retail Commissions and the Retail Bonus. RANK: Ranks refer to the titles achieved by a CLC under the compensation plan. There are two types of Rank. Paid As (or Paid At ) Rank and Legacy Rank. PAID AS (or PAID AT) Rank: The rank at which a CLC qualifies to be paid pursuant to the terms of the compensation plan during a pay period is her Paid As rank for that pay period. LEGACY RANK: is the highest Paid As rank at which a CLC has ever qualified. The Legacy Rank is for title purposes only, and has no bearing on the amount of compensation that is paid to the CLC. A CLC is only eligible to earn compensation at her Paid As rank. RETAIL SALES: Product sales to customers who are NOT Certified Lifestyle Coaches or CLC Applicants. ROLL-UP: When a Certified Lifestyle Coach terminates, or does not renew their Certified Lifestyle Coach Agreement with the Company annually, the entire organization of that Certified Lifestyle Coach will roll up to the first qualified upline Certified Lifestyle Coach. Roll up is permanent. If a Certified Lifestyle Coach allows their position to terminate due to non-renewal or any other reason, and later decides to reenroll, that person would become an entirely new Certified Lifestyle Coach and would not recover any previously held position or rank. (See also Compression ) 17 P a g e
18 SPONSOR: The CLC who is the immediate upline to another CLC is her Sponsor (i.e., the CLCs on a given CLC s first Level are Sponsored by that CLC). The same CLC may be, but is not necessarily, both the Sponsor and the Enroller. SUGGESTED RETAIL VALUE (SRV): The retail price as suggested by the Company. UPLINE: The term upline refers to those CLCs who precede a CLC in the sponsorship chain up to the Company. 60% RULE: No more than 60% of the total (GBV) Group Bonus Volume required for qualification or maintenance may be counted from any one leg for bonuses applicable to CLCs at the Executive Director rank and higher. 18 P a g e
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