Overview

The IDA Profit Sharing and Bonus Program enables IDA members to share in the profits of any IDA turnover generated in their business. It directly rewards them for the time, effort and resources that they have allocated to the building of their business. The program is targeted only at active business builders and hence participants in the Bonus Program must be current SOT/SOCD and subscribers who are receiving their nominated products.

Definitions

BSV: The BSV (Business Support Volume) is the actual % amount that can be paid back in the form of bonuses. This is the $ value available to IBO's as a "profit share". It is calculated by multiplying the value of the tool by the retail value (ex GST) on that tool.

Tapes have a maximum PS(Profit Share) of $2.40 based on a $7.00 retail price (or 34.28%). This excludes HAA (Higher Achievers Awards.) Tapes contribute a further $0.60 based on a $7.00 retail price (or 8.57%) to HAA.

Similarly Books have a maximum PS of 24%. The remaining 6% is allocated to the HAA

Available Profit Share and HAA (Higher Achievers Award)

Product

Retail

BSV

to HAA (THV)

Tapes

$7.00

$2.40 (34.28%)

$0.60 (8.57%)

CD's

$7.73

$2.40 (31.05%)

$0.60 (7.76%)

Double Tapes

$14.00

$4.80 (34.28%)

$1.20 (8.57%)

Books

$1.00

0.24 (24%)

$0.06 (6%)

Lit

$1.00

0.24 (24%)

$0.06 (6%)

These are broad descriptions on BSV per item. The BSV and HAA amount is set by IDA and is subject to change without notice. Retail price excludes GST.

Bonus Scale

The bonus level that IBO's are eligible for is calculated on the SOV. (Standing Order Volume). This is comprised of SOT, SOCD and in the future delivery of Standing Order Products Via the Internet.

Subscriber Amount

(SOV)

Actual % of PS (Profit Sharing)

6,000

100%

4,600

92%

3,400

84%

2,500

76%

1,700

68%

1,200

60%

800

52%

500

44%

300

36%

200

28%

100

19%

40

10%

Bonus Participation

Qualification for bonus participation is available only to IDA members and falls into 2 distinct groups based on commencement of membership;

1. Pre July 1, 2000 IBO's
2. Post July 1, 2000 IBO's

Before July 1, 2000 qualification for various tools programs was based on the following criteria:

1. The participant and potential Bonus recipient was handling the distribution of IDA products for their business; and
2. The participant and potential bonus recipient was participating in the self- development process of the IDA system. This includes participation in the tape and book programs.

IBOs who did not receive a bonus under this criteria, and the Upline Platinum has notified IDA, are excluded from the current bonus program..

1. After July 1, 2000 only IDA members qualify for the IDA profit sharing and bonus program. An IDA member is a current subscriber of the Book and Audio Program with a successful payment of his/her subscriptions..

Higher Achievement Awards

The following scale determines HAA.

Type

Bonus

0

Non-HAA Qualifier

1

Bonus#1. - 3 Business Groups 40+
Qualification - 3 Business Groups at 40 Subscribers or above in each leg.
Available share from this HAA - 42% of THV

2

Bonus#2- 4 Business Groups 40+
Qualification - 4 Business Groups at 40 Subscribers or above in each leg.
Available share from this HAA - 14% of THV

3

Bonus#3 - 5 Business Groups 40+
Qualification - 5 Business Groups at 40 Subscribers or above in each leg.
Available share from this HAA - 14% of THV

4

Bonus#4 - 6 Business Groups 40+
Qualification - 6 Business Groups at 40 Subscribers or above in each leg.
Available share from this HAA - 15% of THV

5

Bonus#5- 7 Business Groups 40+
Qualification - 7 Business Groups at 40 Subscribers or above in each leg.
Available share from this HAA - 15% of THV

HAA Calculation

The THV (Total HAA Volume) is the total $ amount available to all HAA recipients. IDA calculating the turnover of each tool for the calendar month allocates this by applying the HAA % allocated to that tool to THV. A percentage of THV is allocated to each HAA Bonus, this is detailed in the table above.

In order to share in any of the HAA bonuses you must have at least 3 separate Business Groups on a minimum of 40 subscribers (SOT&SOCD) each.

The more Business Groups over 40 you have the more HAA bonuses you share in as per the schedule above.

To calculate HAA bonuses IDA first calculates all the BSV (personal group, outside other downline 40 SOV Business Groups). Then each HAA qualifier accrues HAA points in the following manner.

Each leg is measured against the scale below. If the cumulative volume of that leg is 1800BSV for example points are calculated as:

11652 Points per leg at 1560 level

+

(1800-1560)*3.36 (Additional BSV multiplied by the BSV increase factor in the following level)

=

12458.4 ( Points accrued to that leg.)

The above formula is applied to each leg and personal group. (Personal group is counted as a leg for points accrual but not for qualification for a HAA bonus)

The total HAA points are then calculated for each HAA Bonus. This is the divisor to determine each IBO's percentage of a HAA Bonus.

BSV per Leg

620

1560

2600

3900

6500

10400

15600

23400

32500

44200

65000

940

1040

1300

2600

3900

5200

7800

9100

11700

20800

Pts/BSV Increase

10.00

5.80

3.36

1.95

1.13

0.66

0.38

0.22

0.13

0.07

0.04

Points Per Leg

6200

11652

15151

17687

20629

23189

25169

26891

28056

28925

29821

Payments

Profit share and bonus payments are made directly to IBOs on or before the 15th of each month.

IDA must have your banking information and ABN in order to facilitate bonus payments. If these conditions are not met bonuses accrue on the IDA system until such time that the information is entered. You can update your account details from the myBusiness menu.

Rights and Disclaimers

IDA reserves the right to amend, alter or restructure, the operation of the Profit Share and Bonus system wholly or in part without prior notice at any time after the 30^th of June 2001. The Participant Subscribers acknowledge such rights are vested in IDA and shall make no claim of any nature in respect of any amendments alteration or restructure of the System.

The Participant Subscribers acknowledge that the System detailed in this publication has been designed by IDA in good faith taking into account information available to it provided by all relevant sources

The Participating Subscribers acknowledge that IDA shall not be liable in respect of any losses resulting from any alleged errors in inaccuracies contained in the System and this acknowledgment shall act as an estoppel in respect of any legal claim or action commenced in respect of such alleged loss.