Affiliate Compensation (Revision 12/1/2017) Introduction This is a technical document to be used for training and educational purposes. Please take the time to review this entire document, so that you will have a clear understanding of the compensation plan. It is important to understand that the compensation plan is based on the sale of products and services we offer and NOT based on recruiting. The affiliate commissions are paid thru 3 Tiers in the Matrix to qualified affiliates. Additional commissions are earned based on the affiliate generating additional sales volume and personal volume to qualify. Read this entire document for the details. If you have any questions please submit a support ticket. This document is outlined as follows: A) Definitions Pages 1-2 B) Ranks Pages 3-5 C) Bonus Types Pages 6-8 D) Commission Payments Pages 9 A) Definitions The following definitions will be used in this document: 1) Affiliate: A person that has registered with Maxous and agreed to the affiliate terms and conditions. Referred to as an affiliate in this document. 2) Customer: A Retail Customer is associated with an affiliate. However, a Customer cannot sign-up affiliates or customers and cannot receive commissions. A Customer is not placed in the Genealogy. Customers buy products at Retail. 3) Commission Period: Company defines the start and end date for each period that commissions will be paid to affiliates. This is also referred to as the Pay Period. 4) Qualification Period: Company also defines the Qualification Period which can be different than the pay period. This period defines the period in which the affiliates need to qualify in order to earn commissions for the respective commission period. 5) Placement Sponsor: A Placement sponsor is an affiliate who is immediately upline from the new or existing affiliate in the Matrix. The system shows the placement sponsor relationship based on the placement position of the 2 affiliates in the matrix. 1
6) Genealogy: The Company's overall structure that indicates how and where affiliates are placed. Company supports two Genealogies: 1) 4X8 Matrix & 2) Unilevel 7) 4 X 8 Team Matrix Genealogy - There is a maximum of 4 affiliates placed on the first tier of any affiliate s personal matrix. Affiliates may earn commissions past 3 tiers by qualifying with personal volume and sales requirements. The matrix is a maximum of 8 tiers deep. 8) Matching Bonuses (Unilevel Genealogy) Allows an unlimited number of personally referred affiliates. Matching Bonuses are paid based on the Personally Referred lines of sponsorship. The Matching Bonus is paid based on ONLY the Matrix earnings of Personally Referred members. 9) Commissions - Commission calculations use the different Genealogies to determine payout amounts as well as bonus qualifications 10) Referral Sponsor: A Referral Sponsor is an affiliate who personally refers a new affiliate and who first explains the business opportunity. 11) Business Center (BC): An affiliate can have only one position or "business center" in the Matrix Genealogy. 12) Personal Volume (PV): PV is the total volume generated from the affiliate s purchases of products and services. 13) Company Profit: The sum of the company s profit. 2
B) Ranks Affiliates will be promoted by rank based on specific qualifications. Paid As Rank: The rank is recalculated each commission period and saved as the PAID AS Rank. This is the Rank used to determine qualifications for commission payments. Lifetime Rank: This is the highest rank ever achieved in the affiliate s lifetime. Lifetime Rank will be updated each time commissions are run. This is for title purposes ONLY and DOES NOT affect the commission payments. Company supports the following Leadership Rank / Titles" for Affiliates. LEADERSHIP RANK TITLE Affiliate Silver Affiliate Gold Affiliate Director Affiliate Area Director Regional Director Executive Director National Director Presidential Director ABBREVIATION AF SA GA DA AD RD ED ND PD Rank Qualifications There is no restriction as to how fast an affiliate can move through the ranks. Ranks will be recalculated each time the commission or bonus is executed. (1) Affiliate - AF Affiliate Qualifications: A) No purchase necessary; No placement position in the Matrix Affiliate Earns: A) Qualified to earn Level 1 Fast Start Bonus only; no FSB overrides; no other types of commissions or bonuses earned 3
(2) Silver Affiliate - SA Silver Affiliate Qualifications: A) Maintain at least $20 Affiliate PV Silver Affiliate Earns: B) Qualified to earn on Levels 1-2-3 of the 4X8 Matrix (3) Gold Affiliate - GA Gold Affiliate Qualifications (Get Qualified): A) Maintain at least $50 Affiliate PV B) Maintain at least 2 personally enrolled active members Gold Affiliate Earns: (4) Director Affiliate - DA Director Qualifications: A) Maintain at least $50 Affiliate PV B) Maintain 8 personally enrolled active members Director Earns: (5) Area Director - AD Area Director Qualifications: A) Maintain at least $50 Affiliate PV B) Maintain 20 personally enrolled active members OR Personally referred 4 Director Affiliates Area Director Earns: D) Qualified to earn 2 Shares of the Global Bonus Pool 4
(6) Regional Director - RD Regional Director Qualifications: A) Maintain at least $100 Affiliate PV B) Maintain 50 personally enrolled active members OR Personally referred 2 Area Directors Regional Director Earns: D) Qualified to earn 5 Shares of the Global Bonus Pool (7) Executive Director - ED Executive Director Qualifications: A) Maintain at least $100 Affiliate PV B) Maintain 100 personally enrolled active members OR Personally referred 2 Regional Directors Executive Director Earns: D) Qualified to earn 10 Shares of the Global Bonus Pool (8) National Director - ND National Director Qualifications: A) Maintain at least $100 Affiliate PV B) Maintain 200 personally enrolled active members OR Personally referred 4 Executive Directors National Director Earns: D) Qualified to earn 15 Shares of the Global Bonus Pool (9) Presidential Director - PD Presidential Director Qualifications: A) Maintain at least $100 Affiliate PV B) Maintain 500 personally enrolled active members OR Personally referred 4 National Directors Presidential Director Earns: D) Qualified to earn 20 Shares of the Global Bonus Pool 5
C) Bonus Types For each Commission Period, the company determines what the qualification period will be and what the commission period will be. Company also determines when commissions will be processed. For example, the company decides for the next weekly Commission Period that the "payout period" will be 2/5 to 2/11. The "qualification" period" will be 1/1 to 2/4. Company decides to process this Commission Period on 2/17. Affiliates must meet specific qualifications to earn commissions, and affiliates cannot retroactively qualify and earn commissions for Commission Periods that have already been processed and paid. It is the responsibility of the affiliate to ensure they have an active form of payment to qualify for commission payouts. All commissions paid are final and cannot be retroactively paid. 1) Fast Start Bonus (Paid Weekly) Only Fast Start Bonuses are paid on the total initial hosting fees paid. Fast Start Bonuses are paid based on sales thru Generations of personally referred: Generation $20 Silver Hosting Plan Fast Start Bonus 1 st Generation (Personally Referred) $10 2 nd Generation $2 3 rd Generation $2 4 th Generation $2 Generation $50 Gold Hosting Plan Fast Start Bonus 1 st Generation (Personally Referred) $25 2 nd Generation $5 3 rd Generation $5 4 th Generation $5 6
2) Matrix Commissions (Paid weekly starting on the second month of autoship) This commission is paid based on sales generated in the matrix genealogy. Only Silver Affiliates (SA) or higher, may earn this commission based on meeting the sales qualifications. An affiliate cannot earn on their own purchases (Personal Volume). Minimum Rank required, levels and the respective percentage payouts are as follows: Minimum Rank PV Level Percentage Silver Affiliate $20 1 5% Silver Affiliate $20 2 5% Silver Affiliate $20 3 5% Gold Affiliate + 2 Active Members $50 4 5% Gold Affiliate + 2 Active Members $50 5 5% Gold Affiliate + 2 Active Members $50 6 5% Gold Affiliate + 2 Active Members $50 7 5% Gold Affiliate + 2 Active Members $50 8 5% 3) Matching Bonus (Paid Weekly) Qualified Gold Affiliates (GA) or higher, may earn this bonus. This bonus pays a 100% Matching Bonus to the affiliate based on their personally referred affiliates (1 st Generation) Matrix earnings. The Matching Bonus is paid based on ONLY Matrix earnings and NOT on any other commissions, bonuses, or any other types of incentives earned. Bonus Type Generation Matching Percent Matching Bonus 1 st Generation Personally Referred 100% 7
4) Global Bonus Pool (Paid Daily) Silver Affiliates and above may earn this bonus. The total bonus pool amount is 10% of the company s daily profits (see definition). The Global Bonus Pool is divided amongst the affiliates that have met the following qualifications. Global Bonus Pool Qualifications: A) Must maintain at least $20 Affiliate PV B) Login to the members area for at least 15 minutes daily C) Generate a minimum of 15 Activity Points daily (Activity Points Report) D) Qualified for additional shares by achieving leadership ranks. AFFILIATE RANK A REA D I R E C T O R S R E G I O N A L D I R E C T O R E X E C U T I V E D I R E C T O R N A T I O N A L D I R E C T O R P R E S I D E N T I A L D I R E C T O R SHARES OF BONUS POOL 2 S H A R E S 5 S H A R E S 10 S H A R E S 15 S H A R E S 2 0 S H A R E S 8
D) Commission Payments PayPal is the processor Maxous uses to send affiliates commissions. Affiliates must have an active Verified PayPal account to receive their commissions. Visit www.paypal.com to create an account Review the examples listed below to understand how our system handles commission withdrawal requests and payments. Minimum Commission Payment Amounts Maxous affiliates must meet the minimum payout threshold of $26. Maxous charges a $1.00 fee per withdrawal. The minimum you may withdraw is $26 which will leave the minimum required $25 to transfer to PayPal. Only commissions that are NOT in pending status may be withdrawn. Example A: An affiliate's total Ewallet available balance is $20. The affiliate requests a withdrawal of $20; however their Ewallet balance is below $26, so no payment is sent. The affiliate must have a minimum Ewallet balance of $26 in available commissions to request a withdrawal. Example B: An affiliate's total Ewallet available balance is $30. The affiliate requests a withdrawal of $30. Their Ewallet balance is more than $26, thus the withdrawal for $29 ($30.00 - $1.00 Fee = $29.00) is approved. Payment Schedule Every Thursday at 11:59PM PST is the cutoff to request a withdrawal payment. You must request a withdrawal before the Thursday cutoff to be paid commissions on Friday for the weekly payments. Withdrawal requests received after Thursday will be paid the following Friday. Chargebacks A chargeback will occur if a client cancels and requests a refund of hosting fees or any other product or service. All commissions, bonuses, and overrides paid will be recovered from the affiliate and upline commissions and bonuses. Termination An affiliate will be permanently deactivated after 60 days (grace period) of nonpayment of monthly hosting fees and their downline, commissions, and bonuses will be permanently forfeited. Compliance Our company prohibits income claims. Results will vary based on individual performance. Examples in this document are not to be interpreted as a promise or guarantee of earnings. Commissions are earned based on the sale of products and services and NOT based on recruiting. To protect the financial viability of the affiliate program, there is a 70% maximum company-wide overall payout per pay period imposed at the discretion of Maxous. When describing the compensation plan, an affiliate s statements must be truthful, accurate, and not misleading. 9