UNDERSTANDING THE COMPENSATION PLAN. Fernan De Los Reyes And Sean Brown

Transcription

1 UNDERSTANDING THE COMPENSATION PLAN Fernan De Los Reyes And Sean Brown

2 DISCLAIMER YOUNGEVITY PROHIBITS ITS DISTRIBUTORS FROM MAKING INCOME EARNING CLAIMS IN ASSOCIATION WITH THE PROMOTION OF YOUNGEVITY BUSINESS OPPORTUNITIES. WHETHER AN INDIVIDUAL WHO BECOMES A YOUNGEVITY DISTRIBUTOR WILL EARN MORE THAN HE OR SHE PAYS FOR THE BUSINESS OPPORTUNITY DEPENDS ON MULTIPLE INDEPENDENT AND DEPENDENT VARIABLES THAT ARE IMPOSSIBLE TO PREDICT, SUCH AS ECONOMIC FACTORS UNIQUE TO EACH LOCATION WHERE PRODUCT SALES ARE ATTEMPTED AND THE SALES TALENTS OF EACH INDIVIDUAL DISTRIBUTOR.

3 AGENDA TERMINOLOGY & DEFINITION RANKS AND RESIDUAL BONUSES CODING BONUSES F A S T S TA R T B O N U S E S Q U I C K S TA R T B O N U S E S

4 Comp Plan Terminology & Definition

5 Comp Plan Terminology & Definition Bonus Volume (BV): A value amount assigned to individual products. This is the amount, singly and cumulatively, from which a distributor s Bonus and Residual Commissions are calculated. Personal Bonus Volume (PBV): Is the BV value of a Distributor s personal purchases/retail sales (all sales running through the Distributor s personal I.D. Number) during a calendar month. Group Bonus Volume (GBV): The Bonus Volume (BV) purchased/ sold by a Distributor s downline organization. The number of levels that are added cumulatively are dependent upon the specific parameters of the bonus in question.

6 Comp Plan Terminology & Definition Qualifying Volume (QV): A value amount assigned to individual products. This is the amount, singly and or cumulatively, from which rank qualifications are calculated. Personal Qualifying Volume (PQV): The QV value of a Distributor s personal purchases/retail sales (all sales running through the Distributors personal I.D. Number) during a calendar month. Group Qualifying Volume (GQV): The total QV purchased/sold by a Distributor s downline organization. Different qualifying criteria may recognize different calculations (normally within the 1st 3 downline levels) - such as a certain number of downline levels, or cut-offs or percentages based upon downline rank complexion.

7 Comp Plan Terminology & Definition Overall Qualifying Volume (OQV): The total Overall QV purchased/sold by a Distributor s downline organization. Retail Profit: The amount a Distributor makes (gross) by purchasing an item at wholesale price and selling it at retail to a customer, or the difference between the wholesale price and retail price for items purchased directly through the Distributor s retail shopping cart. Retail sales for items purchased directly through the Distributor s retail shopping cart are subject to a surcharge of 5% of the retail profit amount, which is automatically levied in the net retail commission.

8 Comp Plan Terminology & Definition Commissions: Commissions are a percentage (%) of the Bonus Volume of the products purchased/sold from the Company by Distributors. Commissions on downline activity are calculated and paid on both weekly and monthly cycles. Compression: when volume from a Distributor/Preferred Customer rolls up 1 or more levels due to volume missing in those levels. This will be reflected in Freedom once an overnight bonus is run.

9 RANKS AND RESIDUAL BONUSES (paid monthly)

10 Ranks And Residual Bonuses Associate (A) - Levels 1-2 Requirements: Must have at least 50 PQV (Personal Qualifying Volume) during a calendar month. Benefits: Earn bonus commission on your Group Volume through 2 levels (5% on level 1 & 2).

11 Ranks And Residual Bonuses Brand Associate (BR-A) - Levels 1-3 Requirements: Must have at least 100 PQV (Personal Qualifying Volume) during a calendar month Benefits: Earn bonus commission on your Group Volume through 3 levels (8% level 1 & 2, 7% level 3).

12 Ranks And Residual Bonuses Sales Associate (SA-A) - Levels 1-4 Requirements: Must have at least 150 PQV (Personal Qualifying Volume) during a calendar month & 3 Active Preferred Customers, or Associates or above on 1st level. Benefits: Earn bonus commission on your Group Volume through 4 levels (8% level 1 & 2, 7% level 3, 6% level 4).

13 Ranks And Residual Bonuses Senior Associate (SR-A) - Levels 1-5 Requirements: Must have at least 200 PQV (Personal Qualifying Volume) during a calendar month, 3 Active Preferred Customers, or Brand Associates or above on 1st level &1000 GQV (Group Qualifying Volume) in first 3 levels. Benefits: Earn bonus commission on your Group Volume through 5 levels (8% level 1 & 2, 7% level 3, 6% level 4 & 5).

14 Ranks And Residual Bonuses 1 Star Executive (1SE) - Levels 1-6 Requirements: Must have 250 PQV (Personal Qualifying Volume) during a calendar month, 3 Active Sales Associates or above on 1st level & 5400 GQV (Group Qualifying Volume) in first 3 levels. Benefits: Earn bonus commission on your Group Volume through 6 levels (8% level 1 & 2, 7% level 3, 6% level 4 & 5, and 8% level 6). Earn 2% Infinity Bonus paid to potentially to unlimited number of levels.

15 Ranks And Residual Bonuses 2 Star Executive (2SE) - Levels 1-6 Requirements: Must have 300 PQV (Personal Qualifying Volume) during a calendar month, 3 Active 1 Star Executives (1SE) in 3 different legs & 7,500 GQV (Group Qualifying Volume) in first 3 levels. Benefits: Earn bonus commission on your Group Volume through 6 levels (8% level 1 & 2, 7% level 3, 6% level 4 & 5, and 8% level 6). Earn 2% Infinity Bonus paid to potentially to unlimited number of levels.

16 Ranks And Residual Bonuses 3 Star Executive (3SE) - Levels 1-7 Requirements: Must have 300 PQV (Personal Qualifying Volume) during a calendar month, 5 Active 1 Star Executives (1SE) in 5 different legs & 10,500 GQV (Group Qualifying Volume) in first 3 levels. Benefits: Earn bonus commission on your Group Volume through 7 levels (8% level 1 & 2, 7% level 3, 6% level 4 & 5, 8% level 6, 6% level 7). Earn 2% Infinity Bonus paid to potentially to unlimited number of levels.

17 Ranks And Residual Bonuses 4 Star Executive (4SE) - Levels 1-8 Requirements: Must have 300 PQV (Personal Qualifying Volume) during a calendar month, 6 Active 1 Star Executives (1SE) in 6 different legs & 27,000 GQV (Group Qualifying Volume) in first 3 levels. Benefits: Earn bonus commission on your Group Volume through 8 levels (8% level 1 & 2, 7% level 3, 6% level 4 & 5, 8% level 6, 6% level 7 & 8). Earn 2% Infinity Bonus paid to potentially to unlimited number of levels.

18 Ranks And Residual Bonuses 5 Star Executive (5SE) - Levels 1-8 Requirements: 300 PQV (Personal Qualifying Volume) during a calendar month, 9 Active 1 Star Executives (1SE) in 9 different legs & 43,200 GQV (Group Qualifying Volume) in first 3 levels. Benefits: Earn bonus commission on your Group Volume through 8 levels (8% level 1 & 2, 7% level 3, 6% level 4 & 5, 8% level 6, 6% level 7 & 8). Earn 2% Infinity Bonus paid to potentially to unlimited number of levels.

19 Ranks And Residual Bonuses *Must meet requirements for EAMB & RAMB for three consecutive months in order to advance to that rank* Emerald Ambassador (EAMB) - Levels 1-8* Requirements: 300 PQV (Personal Qualifying Volume) during a calendar month, 12 Active 1 Star Executives (1SE) in 12 different legs, out of those 4 must be at least 4 Star Executives (4SE) & 75,000 GQV (Group Qualifying Volume) in first 3 levels & 750,000 OQV (Overall Qualifying Volume). Benefits: Earn bonus commission on your Group Volume through 8 levels (8% level 1 & 2, 7% level 3, 6% level 4 & 5, 8% level 6, 6% level 7 & 8). Earn 2% Infinity Bonus paid to potentially to unlimited number of levels.

20 Ranks And Residual Bonuses *Must meet requirements for EAMB & RAMB for three consecutive months in order to advance to that rank* Ruby Ambassador (RAMB) - Levels 1-8* Requirements: 300 PQV (Personal Qualifying Volume) during a calendar month, 12 Active 1 Star Executives (1SE) in 12 different legs, out of those 6 must be at least 5 Star Executives (5SE) & 100,000 GQV (Group Qualifying Volume) in first 3 levels & 1,500,00 OQV (Overall Qualifying Volume). Benefits: Earn bonus commission on your Group Volume through 8 levels (8% level 1 & 2, 7% level 3, 6% level 4 & 5, 8% level 6, 6% level 7 & 8). Earn 2% Infinity Bonus paid to potentially to unlimited number of levels.

21 CODING BONUSES (paid weekly)

22 Coding Bonus Generated when a CEO Pak is purchased Enroller s bonus is determined by their coded rank at the time of enrollment, which starts a new coded group. Downline bonuses are determined by the difference between the upline coded rank and the Enroller s coded group

23 Coding Bonuses Requirements: 1) CEO Qualified 2) Achieve SA-A rank or higher

24 Coding Bonuses RANK CUMULATIVE PAYOUT ACTUAL RANK PAYOUT SA-A $15 $15 SR-A $35 $20 1SE $100 $65 2SE $140 $40 3SE $170 $30 4SE $180 $10 5SE $190 $10

25 Coding Example Enrollee: ALEX Enrolled: 08/01/2017 CEO Pak purchased: 08/08/2017 Enroller: FERNAN Coded CEO Rank at the time of Enrollee s enrollment: 1SE

26 Coding Example The system will Code the Enrollee s account (ALEX) based on the Lifetime Coded Rank of the Enroller (FERNAN) at the time of the Enrollee enrollment Remaining ranks will be coded based on who is coded to the Enroller.

27 Coding Example Upline PERSON, HIGHEST RANK AT THE TIME OF ENROLLMENT ALEX, NEW CEO FERNAN, 1SE DAVE, 2SE MICHELLE, 3SE MICHELLE, 4SE STEVE, 5SE

28 Coding Example RANK WHO S CODED PAID UP TO ACTUAL PAYOUT SA-A FERNAN $15 $15 SR-A FERNAN $35 $20 1SE FERNAN $100 $65 2SE DAVE $140 $40 3SE MICHELLE $170 $30 4SE MICHELLE $180 $10 5SE STEVE $190 $10

29 QUICK START BONUS (paid weekly)

30 Quick Start Bonus Requirements: 1) Must be the Enroller 2) MUST be paid at BR-A or higher

31 Quick Start Example Enrollee: ALEX (frontline placement to Enroller) Enrolled: 08/01/2017 1st order placed: 08/08/2017 Enroller: FERNAN FERNAN enrolls Aug on Sept 1st. FERNAN is qualified to earn up to 30% QSB (26% actual QSB and ½ of normal residual payout, depending on placement) for the first 30 days from ALEX, when ALEX places his initial order.

32 Quick Start Example Quick Start Bonus Payout Example: Alex places his initial order for 250 BV on Aug 8th. The week the order is placed is called the Qualification week. There is a 2 week waiting period after the Qualification Week to ensure that the Enroller meets all the requirements (See Requirements Above) to be paid out. If all the requirements are met then the Quick Start Bonus of 26% will be out paid out as a weekly bonus the Monday after the 2 week waiting period. 26% QSB paid to Fernan on Alex s order = 250 BV X 26% = $65.00 Fernan will also be paid out ½ of the normal residual payout on Alex on the 15th of the next month. ½ of the normal residual based on Alex s frontline placement = 250 BV X 4% = $10

33 Quick Start Example To fund the Quick Start Bonus Program, the upline up to 8 levels above the enrollee will earn ½ of the normal commissions earned during qualification period. So if they were to schedule to earn 8% Uni-level Bonus Commissions they will now earn 4% Quick Start Uni-level Bonus Commissions, 7% will earn 3.5% and so on. Quick Start Restart: A Quick Start Restart will trigger for Enrollees who has NOT placed an order in the Past 12 months from the end of the last month an order was placed. This Bonus only pays out Once in the Enrollees lifetime.

34 FAST START BONUS (paid weekly)

35 $100 Fast Start Bonus Requirements: Personally Enroll Distributor who purchases a CEO Mega Pak.

36 Fast Start Example Enrollee: ALEX Enrolled: 08/01/2017 CEO Pak Bought: 08/08/2017 Enroller: FERNAN Alex places his CEO Pak order on Aug 8 th. The week the order is placed is called the Qualification Week. There is a 2 week waiting period after the Qualification Week to ensure that the Enroller meets all the requirements (See Requirements Above) to be paid out. If all the requirements are met then the Fast Start Bonus of $100 will be paid out as a weekly bonus the Monday after the 2 week waiting period.

37 Q & A TIME! Fernan De Los Reyes

38 DISCLAIMER YOUNGEVITY PROHIBITS ITS DISTRIBUTORS FROM MAKING INCOME EARNING CLAIMS IN ASSOCIATION WITH THE PROMOTION OF YOUNGEVITY BUSINESS OPPORTUNITIES. WHETHER AN INDIVIDUAL WHO BECOMES A YOUNGEVITY DISTRIBUTOR WILL EARN MORE THAN HE OR SHE PAYS FOR THE BUSINESS OPPORTUNITY DEPENDS ON MULTIPLE INDEPENDENT AND DEPENDENT VARIABLES THAT ARE IMPOSSIBLE TO PREDICT, SUCH AS ECONOMIC FACTORS UNIQUE TO EACH LOCATION WHERE PRODUCT SALES ARE ATTEMPTED AND THE SALES TALENTS OF EACH INDIVIDUAL DISTRIBUTOR.

39 UNDERSTANDING THE COMPENSATION PLAN Fernan De Los Reyes And Sean Brown