Compensation Schedule
Basic Bonus Schedule (North America)
|
PV Points |
BV Points |
Bonus % on BV (Business Volume) |
|
100 |
200 |
3% |
|
300 |
600 |
6% |
|
600 |
1200 |
9% |
|
1000 |
2000 |
12% |
|
1500 |
3000 |
15% |
|
2500 |
5000 |
18% |
|
4000 |
8000 |
21% |
|
6000 |
12000 |
23% |
|
7500 |
15000 |
25% |
The maximum bonus for non-North American IBOs is 21%.
Leadership Bonus
The Leadership Bonus is paid each month by the Corporation to a qualified Platinum or Silver Producer according to the calculation rules. This bonus is computed on the Group BV of each qualified 25% group you register.
Under this system, you can receive the Leader-ship Bonus as long as the Platinum or Silver Producer qualifies and as long as you maintain your own Group Volume (as explained in "Rules Governing the Calculation of the North American Leadership Bonus," which follows).
Rules Governing the Calculation of the North American Leadership Bonus
A. A Leadership Bonus is paid on every dollar of BV each month by the Corporation, which computes and pays all Leadership Bonuses.
B. The Leadership Bonus is computed from the bottom up - never from the top down.
C. You must have at least 2,500 Group Volume to receive any Leadership Bonus if you register one qualified group. The 2,500 Group Volume does not include any downline qualified volume (25%). However, it will include pass-up volume.
D. Once the Leadership Bonus Adjustment has been generated, at least that amount of Leadership Bonus must continue to pass up the line of sponsorship.
E. Each leader of a qualified group may be entitled to a Leadership Bonus based on the following rules:
1. You will keep all of the Leadership Bonus generated by your group:
a. If you register one qualified group and the Leadership Bonus generated by your BV is equal to or exceeds the Leadership Bonus Adjustment or the amount of Leadership Bonus generated to you, or...
b. If you register two or more qualified groups and the Leadership Bonus generated by your BV is equal to or exceeds the Leadership Bonus Adjustment or the average of the Leadership Bonus generated to you by your qualified groups if the published Leadership Bonus Adjustment hasn't been generated.
2. You will keep some of the Leadership Bonus generated to you:
a. If you register one qualified group and the Leadership Bonus generated by your BV is less than the Leadership Bonus Adjustment or the amount of Leadership Bonus generated to you, or ...
b. If you register two or more qualified groups and the Leadership Bonus generated by your BV is less than the Leader-ship Bonus Adjustment or the average Leadership Bonus generated to you if the Leadership Bonus Adjustment hasn't been generated.
3. You will keep none of the Leadership Bonus generated by your group if you register one qualified group and your Group Volume is less than 2,500.
Sales Incentive Program
Independent Business Owners will be eligible for the following pin levels in the 1999-2000 fiscal year.
SALES INCENTIVE PROGRAM QUALIFICATIONS
Gold Producer
A Gold Producer is an IBO below the Platinum level who has attained any three qualified Silver Producer/Platinum months within the fiscal year. Overlap rule applies for first-time qualifiers.
Founders Platinum
A Founders Platinum is an IBO below Sapphire who has attained 12 months of Platinum qualification in a fiscal year.
Founders Ruby
A Founders Ruby is an IBO who has attained 12 months of Ruby qualification at 15,000 PV Ruby volume in a fiscal year.
Sapphire
A Sapphire is an IBO below Emerald who has the same 2 qualified North American legs and 2,500 Award Volume on the side or 3 qualified North American legs for each of 6 months in a fiscal year.
Founders Sapphire
A Founders Sapphire is an IBO below Emerald who maintains Sapphire qualification for each of 12 months in a fiscal year.
Founders Emerald
A Founders Emerald is an IBO below Diamond who has sponsors 3 qualified North American legs each of which qualify for 12 months in a fiscal year.
Bonuses
Ruby Bonus
An IBO's monthly Ruby Bonus is equal to 2% of that month's Ruby Volume, including pass-up volume from non-qualified 25% Sponsors and Silver Producers.
Example:
You develop Ruby Volume of 15,000 PV and $30,000 BV in one month. The Ruby Bonus for that month is $600 (2% x $30,000).
Monthly Depth Bonus
Rules for Qualification for Monthly Depth Bonus
A. The Monthly Depth Bonus is equal to 1% of the BV of all second level qualified groups, down to and including the first qualified Monthly Depth Bonus recipient or above, plus the registered qualified groups of that Monthly Depth Bonus recipient or above.
B. The Monthly Depth Bonus rules guarantee to your upline Monthly Depth Bonus recipient a minimum of 1% of 7,500 Group Volume multiplied by the PV/BV ratio, or 1/4 of the published Leadership Bonus Adjustment, on each of your registered qualified groups as long as the published Monthly Depth Bonus Adjustment is generated.
C. If the Monthly Depth Bonus generated by your registered qualified groups fulfills the Monthly Depth Bonus Adjustment, you will keep all the Monthly Depth Bonus generated to you by the downline qualified groups, based on the Monthly Depth Bonus calculation (see A ).
D. If the Monthly Depth Bonus generated by your registered qualified groups does not fulfill the Monthly Depth Bonus Adjustment, an adjustment will be made from the Monthly Depth Bonus calculation (see A ) to make up the difference.
Example 1:
In this example, the volume generated by groups A, B and C fulfills the Monthly Depth Bonus Adjustment to the upline Monthly Depth Bonus recipient. Therefore, you would receive a Monthly Depth Bonus equal to 1% of the BV of groups D, E, F and G. Your Monthly Depth Bonus would be $600 (1% of 4 x $15,000). For simplicity in these examples, one point of PV is equal to $2.00 BV. BV/PV ratio: The average for core line products as of Sept. 1, 1998, is 2.44. The average for products sold through catalogs is 2.00.
Emerald Bonus
The Corporation sets aside an amount equal to 1/4 of 1% of the total North American BV each month. Once qualified by virtue of personally and foster registered groups, the Emerald or above with at least 3 qualified legs from North America receives Emerald Bonus points and payment on North American volume as well as the traceable volume from internationally sponsored qualified groups. At the end of the fiscal year, the Corporation identifies all internationally sponsored volume, links it to the appropriate International Sponsor and corresponding market (one country removed), and pays an Emerald Bonus to both the International and Foster Lines of Sponsorship. All Emerald Bonus recipients may benefit from the expanded fund amounts. (See "Emerald Profit Sharing, Emerald and Diamond Bonus Schedule" at the end of this section.)
Diamond Bonus
Qualified Diamonds and above with at least 6 North American legs receive the Diamond Bonus paid out of a fund consisting of 1/4 of 1% of the North American BV. Once qualified by virtue of personally and foster registered groups, the Diamond receives Diamond Bonus points and payment on qualified North American Volume as well as international traceable volume (like the Emerald Bonus). The fund is distributed to eligible participants in accordance with the same formula employed for the calculation of the Emerald Bonus. (See "Emerald Profit Sharing, Emerald and Diamond Bonus Schedule" at the end of this section.)
Diamond Plus Bonus
The Diamond Plus Bonus is paid to each IBO who personally or foster registers 7 or more North American qualified groups that qualify at least 6 months of a given fiscal year. The bonuses are paid in cash and are made after the end of each fiscal year from a fund equal to 1/4 of 1% of North American BV.
In the event that total disbursement (in accordance with the schedule shown at end of section) does not consume the total available funds, then all payments are increased on a pro rata basis until the total disbursement equals the available funds.
Likewise, if total disbursements exceed the total available funds, then all payments would be reduced on a pro rata basis until the total disbursement is equal to the available funds.
Example 1:
You register 7 qualified groups, each of which is at the 25% level for 6 months in a given fiscal year. Your Diamond Plus Bonus is computed as follows:
7 (groups) x 6 (months) x $100 = $4,200
Example 2:
You register 11 qualified groups, each of which is at the 25% level all 12 months in a given fiscal year. Your Diamond Plus Bonus is computed as follows:
11 (groups) x 12 (months) x $100 = $13,200
D-12Example 3:
You register 18 groups: 3 of these groups are at the 25% level for 4 months, 5 groups are at the 25% level for 6 months, 5 are at the 25% level for 9 months, and 5 are at the 25% level for 12 months in a given fiscal year.
For the purposes of the Diamond Plus Bonus, 15 of your groups qualify at the 25% level for 6 months or more. You receive $300 for each month during which each of these 15 groups qualified at the 25% level.
5 (groups) x 6 (months) x $300 = $9,000
5 (groups) x 9 (months) x $300 = $13,500
5 (groups) x 12 (months) x $300 = $18,000
Your total Diamond Plus Bonus for the year $40,500
One-time North American cash awards
These one-time cash awards begin at Gold Producer and continue through the GET-fAA. program.
The following schedule shows the one-time cash awards for which IBOs are eligible when they attain specific pin levels.
New Gold Producer $1,000
New Platinum $2,500
New Founders Platinum $5,000
New Sapphire $7,500
If multiple achievements of Gold Producer to Sapphire are attained in the same year, all appropriate awards will be paid. An IBO is considered to be at a "new" pin level if they have not previously achieved a higher level.
Annual Q-12 Pin and Cash Award
All Platinums and above may be eligible for the Q-12 Pin and Cash Award, which is based on 12 Q-12 months within the fiscal year. A Q-12 month can be attained in either of the following ways:
Attain 7,500 Award Volume, or
Attain 4,000 Award Volume over a qualified 25% Sponsor or Silver Producer leg that does not include a Platinum.
Attain 2,500 Award Volume over two or more 25% Sponsor or Silver Producer legs that do not include a Platinum.
This award can be paid in addition to other one-time cash awards.
Q-12 Cash Award (12 Q-12 months )$10.000
Get - FAA- One Time Cash Award
Get - FAA is an incentive that was implemented for those IBOs on their way toward the Founders Achievement Award. It provides one-time cash payments to those Sapphires and above who have strong, consistent leg qualifications. FAA qualifiers do not participate in this program. Leg credits are calculated as follows:
The following Get - FAA. cash awards are available to IBO's who have an established G Get - FAA goal.
Diamonds with fewer than 8 FAA leg credits are also eligible to participate in the Get - FAA program.
FOUNDERS ACHIEVEMENT AWARDS
To qualify for this award, an IBO must be a Diamond bonus recipient and have a minimum of 8 FAA credits.
8 FAA leg Credits $
28,000
12 FAA leg Credits $56,000
16 FAA leg Credits$112,000
20 FAA leg Credits $168,000
25 FAA leg Credits $224,000
30 FAA leg Credits $336,000
35 FAA leg Credits $448,000
40 FAA leg Credits $560,000/$1,120,000(3)
45 FAA leg Credits $672,000/$1,680,000(3)
50 FAA leg Credits $784,000/$2,240,000(3)
FAA credits are calculated as follows:
Domestic Legs FAA Credits
Q-12 leg 1.0
Emerald leg(4) 1.5
Diamond Leg(4) 3.0
International Legs FAA Credits
#2 Q-12 leg1.0
#2 Emerald Bonus business(4)(5)1.5
#2 Diamond Bonus business (4)(5) 3.0
Other Q-12 Int. leg(6) 0.5
(3) First-time payment
(4) Must be Emerald/Diamond Bonus Recipients
(5) The international businesses which can be used for FAA are your #2 businesses (one per market).
(6) This is for internationally-sponsored legs that are not multiple #2 businesses. For this purpose, Q-12 means 12 qualified international months; not to be confused with North America's Q-12 incentive program.
