ACTIV8 COMPENSATION PLAN. Commission Periods. Membership Types

Transcription

1 ACTIV8 COMPENSATION PLAN The Activ8 Compensation Plan is a revolutionary concept which allows for truly unmatched potential for long-term residual wealth. Designed from its very inception to create real opportunity, the Activ8 Compensation Plan identifies and overcomes the industry s most prevalent concerns and creates an incomparable culture, lifestyle, and income potential. This document is designed to be very detail-oriented, allowing for all engaged ARIIX Representatives to fully understand all the bonuses and processes that they will be a part of in regards to the Activ8 Compensation Plan. This document is not intended for recruitment or marketing, but to be a straight forward explanation of the processes involved in the technical programming for calculating commissions. Commission Periods Commission Periods of ARIIX begin each Saturday at 12:00 AM (MST), and close each Friday at 11:59 PM (MST). All the sales activity that takes place during the week within that timeframe will be considered for commission and bonus qualification payout. This weekly payout schedule will create 52 commission periods for every calendar year designated by the week and year of that period. For example, the first commission week within 2012 will be designated 1/2012, while the 20th commission weekly period in 2012 will be designated 20/2012. Individuals who have become Representatives of ARIIX, and subsequently have generated volume either from personal consumption or from volume created from purchases and subsequent sales of products to consumers in excess of 75 points will become eligible for commissions for 4 subsequent weeks. This 4 week period is referred to as a Cycle. Sufficient volume must be generated each cycle to maintain commission eligibility. Membership Types Members A Member is an individual enrolled with ARIIX. They are able to purchase ARIIX products at a discount, qualify for product discounts through the Auto-Delivery Program and IIX Membership, acquire an Income Position within the tree genealogy, refer other individuals as Members, and are able to earn product credits towards the purchase of their personal product or inventory. Prospects have filled out a Member Application form, agreed to the Terms & Conditions, as well as the Policies & Procedures, and have been Sponsored by another ARIIX Member or Representative. Upon earning product credits equivalent to $30 USD in product discount (earned from sales volume or for selling specific Packs with corresponding Product Credit) in any cycle (most recent past 4 weeks), Members are able to upgrade their status to becoming an ARIIX Representative. Representative As Members surpass $30 USD in product credit in any cycle, they are able to upgrade their membership type to a Representative. As a Representative, they maintain all of the rights and privileges of an ARIIX Member, including the ability to enroll other Members, and to qualify for product discounts. Additionally, an ARIIX Representative, rather than only earning product credits, is able to earn and generate commissions based upon their activity within the Activ8 Compensation Plan. To become a Representative, a Member must have agreed to and signed PART B of the Representative Policies & Procedures document.

2 Distributorship The business owned by a Representative is referred to as a Distributorship. Direct Customers A Direct Customer is an individual that purchases products directly from an ARIIX Representative or Member. Direct Customers are not enrolled with ARIIX. The price Direct Customers pay for ARIIX products is determined by a Representative but must be at or above the purchase price paid by the ARIIX Representative. However, ARIIX strongly recommends that the selling price should be the suggested retail price which is approximately 43% above the best price a Member or Representative can buy ARIIX products given the 15% discount they receive if they are on Auto-Delivery, and an additional 15% off if they are on 2X Members. This allows Representatives the ability to make a Retail profit based on difference between their price paid and the price they collected for sold products. Preferred Customers Preferred Customers are registered with ARIIX, and are therefore able to participate in the Auto-Delivery Program and receive a 15% discount on the retail price of their product orders through that program. Preferred Customers are not allowed to sponsor, or enroll, Members, and they are not able to earn product credits or commissions through the Activ8 Compensation Plan. They are not given any Income Positions within the ARIIX Genealogy Organization. All volume generated from Preferred Customers are assigned to the sponsoring Member or Representative and are placed within their organization for that Commission Period which would generate the highest commissions for the sponsor of the Preferred Customer for that particular commission period (see Auto-Balancing below). Preferred customers may also purchase a IIX Membership upon enrollment for a one-time cost of $25. This allows Preferred Customers an additional 15% off the suggested retail price of ARIIX products. IIX Membership & Auto-Delivery Upon enrollment, the new ARIIX Member has the opportunity to purchase or acquire a IIX Membership (Pronounced Two-X ). The cost of the IIX Membership upon enrollment is $150 USD if purchased separately, or by generating 500 points in Personal Production Volume in your first 4 weeks. ARIIX also has a number of packs that add value and help you qualify with your 500 points as a convenience. Once the IIX Membership is acquired that Member or Representative will be qualified for special perks and bonuses for life! With the IIX Membership they will receive an additional 15% discount on the retail price of all product purchases, as well as double their earnings from all Bonuses within the Activ8 Compensation Plan. IIX Memberships can only be achieved within 4 weeks of enrollment as a Member either by purchasing the membership outright, generating 500 Sales Volume Points, or through upgrading to a different pack which includes the IIX Membership any of which within the first four weeks of membership. All ARIIX Members and Representatives are offered the opportunity to participate in the Auto- Delivery Program, which allows them to receive their product at their door every cycle (four weeks). As an added benefit, individuals with Active Auto Deliveries receive an additional 15% discount off the retail price. The Auto-Delivery Program is an easy way to ensure that Representatives remain Active within the Activ8 Compensation Plan. By having both the IIX Membership and participating in the Auto-Delivery Program, an ARIIX Member or Representative will be able to combine their discounts to give them a total of 30% off of their product purchases (15% for IIX Membership and 15% for an active Auto-Delivery). All Auto Deliveries for a given period are generated the first day

3 Active Status (currently Saturday) of that period regardless of the day of the week in the period that Auto- Delivery run is scheduled. This allows the Member and Representative the ability to see Volume generated from their downline Auto-Deliveries at the beginning of the period, thus enabling them to focus on volume generations outside of Auto-Deliveries for that period to achieve rank and earnings qualification levels. To be eligible for a Representative to earn commissions or a Member to earn credits, Member's and Representative must have an "Active" status. To be considered Active, a Member or Representative must: 1) Accumulate a minimum of 75 Personal Product Volume points (PPV) every Cycle (this Cycle coincides with the four week Auto-Delivery Program), and 2) be current on their renewal fee of $25. This renewal fee occurs 365 days after the enrollment date and annually thereafter. Retail Profits All ARIIX Representatives and Members are given the opportunity to purchase the life changing ARIIX product line at a discounted Wholesale Price with the Auto-Delivery Program, and sell the same product at a Suggested retail price. That difference between the price purchased and the price sold becomes profit for the ARIIX Representative. With the IIX Membership they will receive an additional 15% discount, which doubles their potential Retail profits from retailing the product to their Customers. Loyalty Program Some of the products offered by ARIIX can be classified as "Loyalty Products." The products are; A) products that are difficult to differentiate in the Marketplace, B) products to which consumers are very price sensitive, C) products which are not consumable to a high degree, D) products which are only of value when used in tandem with other ARIIX products Hence, these products will have fewer points per dollar than normal, but this will allow items to be priced competitively in comparisons to competitors inside and outside of the direct selling channel. Base Commissions After activating their first Income Position with at least 150 points of Personal Product Volume (PPV), ARIIX Representatives who remain Active will have the opportunity to build their organization in a truly revolutionary and profitable way. Each Income Position will start with at least 2 lines for placing newly enrolled ARIIX Members. A business grows through the addition of additional sales stemming from the volume generated from personal volume, volume from Preferred Customers, and/or additional Members and Representatives placed below this Income Position. The team line which accumulates the greatest volume is identified as the "Power Line." All subsequent lines are termed "Pay Lines." Base Commissions are 15% of the volume generated from all Pay Lines, up to $2,000 USD per Pay Line, per week. In the event that the cumulative sum of all volume on all Pay Lines are less than 13,334 points in a week and less than the amount of volume on the Power Line, any remaining difference is carried forward

4 on that Power Line into the next Commission Period. The first time a Pay Line generates the potential of $2,000 (13,334 X.15) in Base Commissions for a Commission Period from the volume of Members and Representatives, that Payline and subsequent Income Position are said to be "Optimized." Thereafter, a new Pay Line is added to the existing Income Position; permitting for an unlimited potential number of Pay Lines per Income Position. In addition to this, the ARIIX Representative will also be given the option of operating a new Income Position within the Pay Line which reached the optimized $2,000 in Base Commissions from volume on that Pay Line. This allows for additional earnings and greater stabilized volume from the depths of that organization. It should be noted that given the fact that a Power line can vary from week to week, there must always be one optimized line that does NOT have a re-entry Income Position placed on it. A once in a lifetime Activation order of 150 points for each new "re-entry" is required. Once activated, this new Income Position will be immediately eligible for commissions. Should the activation occur in the middle of a Representatives auto-delivery cycle, the new re-entry will be eligible for commissions for the remainder of the current auto-delivery cycle. This will assure that all Income Position are on the same original cycle. A Representative may elect to accumulate a minimum of 150 Personal Product Volume points (PPV) every Cycle (rather than 75 for a single Income Position), in order to make all activated Income Positions commission qualified regardless of how many Income Positions there are. The Activ8 Base Commission model provides a true opportunity to generate unlimited residual income as the number of potential Pay Lines increases, as well as providing additional Income Centers to produce both wealth and stability previously unseen. Auto-Balancing All volume generated from either Preferred Customers or personal purchases in excess of 75 point generation requirement for a cycle, is Auto-Balanced. This means that this volume is placed where it would generate the greatest amount of commissions or credits from the sponsoring Distributorship during that particular week. This Auto-Balancing feature will occur for all orders except the initial order that activates the first income position. Any excess volume from this activation order, will be paid in an ASAP bonus to the sponsor in an amount equal to (or greater from specific Packs) what the new member would have received from this autobalanced volume. Team Lead Bonus The qualifying Representative at Team Lead or above, with at least four Active Personally Sponsored ARIIX Members in their team, will earn an additional $ By having a IIX Membership, the earning ARIIX Representative will double this bonus, giving them $ This bonus is calculated and subsequently paid out based on the past rolling four weeks to any Representative that has Personally Sponsored four credit or commission eligible ARIIX Members regardless of their country of origin. These qualifications are triggered by the Auto-Delivery process that takes place on a four week cycle after their initial order for (three out of the required 4. 1 person can count if it is their initial qualifying order). Matching Bonus and Gold Member Status As an added incentive for building any Power or Pay Line, ARIIX Representatives are rewarded through the

5 Matching Bonus. The Matching Bonus gives the ARIIX Representative compensation equal to a percentage of the Base Commission earned by individuals they have enrolled as Representatives and their subsequent enrollments up to 7 levels or "Generations" deep. Therefore, Individuals personally sponsored by a Representative are considered 1st Generation to the sponsor. Individuals these 1st Generation people sponsor are 2nd Generation to the initial Representative. Similar to a family tree, the Children of grandparents would be 1st Generation, while their grandchildren would be 2nd generation and so forth down 7 generations. Representatives qualify for their first 3 Generations of Matching Bonus through achieving Gold or Silver Member Status. Gold Member Status is accomplished by enrolling 4 new ARIIX Members with a 150 initial qualification) (and a subsequent 75 point minimum Auto-Delivery) within the first 8 weeks of their initial enrollment as a Member. After this initial 8 weeks, Silver Member Status is attained by maintaining a minimum of 4 active personally sponsored Members or Representatives each cycle. Qualifying to earn the fourth and fifth generation of the Matching Bonus requires Base commission earnings of $500 USD and $1,000 USD respectively each week. The sixth generation requires having at least one optimized Income Position per week, and the seventh generation is granted with a 2nd optimized Income Position per week. A IIX Membership doubles the matching percentage on all qualified Generations. Sponsorship Tree Matching Beyond Gold or Silver Membership Requirement Match % IIX % Qualifications Generation 1 7.5% 15% Gold or Silver Member Status Only Generation 2 5.0% 10% Gold or Silver Member Status Only Generation 3 2.5% 5% Gold or Silver Member Status Only Generation 4 2.5% 5% $500 in Base Commissions Generation 5 2.5% 5% $1,000 in Base Commissions Generation 6 2.5% 5% 1st Optimized Income Position Generation 7 2.5% 5% 2nd Optimized Income Position This matching bonus is paid with Dynamic Compression. Representatives, who have neither earned a check for the week, nor attained Gold or Silver Member Status, will be removed for that particular week, from occupying a generational level. As a result, all generations will shift up a level to the next sponsor(s) above. If Silver status is re-attained during any week by the Auto-Delivery process that takes place on a four week cycle after their initial order for (three out of the required 4. 1 person can count if it is their initial qualifying order), matching bonus is resumed to the individual and all subsequent generations are shifted down a level. Thus, Matching Bonus is paid on every Representative and has earned a base commission check of at least $30 exclusive of all Bonuses. Income Position Bonus As Representatives begin to optimize their Income Positions (with at least one Pay Line generating $2000 USD in Base Commissions), they will begin to participate in the Income Position Bonus which contains 2% of the Total Company Volume. Shares are issued for each optimized Income Position a Representative has within that week; one share for their first optimized Income Position, two shares for their second (totaling three), and three shares for their third (totaling six). There is no limit to the amount of Income Positions that can be optimized, and therefore there is no limit to the amount of shares that can be earned in this Bonus. With a IIX Membership the number shares earned within this Bonus is doubled.

6 Pay Line Bonus Every ARIIX Representative will receive shares towards 1% of the Total Company Volume for the commission period, with each additional optimized Pay Line (earning $2000 USD) after their first Pay Line. One share of this Bonus is issued for the second optimized Pay Line, an additional two shares are issued for a third optimized line (totaling three), and three shares for the fourth optimized Pay Line (totaling six). There is no limit to the amount of shares a Representative may earn in this bonus. With a IIX Membership double the earned shares within this Bonus. Savings Bonus Every time an ARIIX Representative earns more than $250 in Base Commissions, they will collect an additional 7.5% of their weekly base commissions held as credits until a minimum of 10,000 credit points are reached. With a IIX Membership you can earn 15% of Base Commissions. Once 10,000 points are reached, a Representative may take the credits out in the form of cash, and all subsequent earnings may be taken at any time. A maximum of 500 points are available to be accumulated each week for this Bonus. ASAP (Accelerate Sales and Profits) Bonus This bonus is given as a cash incentive for Representatives who are credited for selling specific packs to consumers In specific countries. The amount of the bonus will vary by pack. The intent is to make it possible for a Representative to earn as much in commission as they spent for activation, with as few pack sales as possible. The Bonus will be doubled for 2X members. The amount of this bonus, if any, will be determined based on whether or not such a bonus exists in the buyers (prospects) market. Additionally, Any excess volume from the activation order (that order which generates at least 150 total points), since it is NOT auto-balanced, (which would have earned the new member a commission the subsequent week), will be paid in an ASAP bonus to the sponsor in an amount equal to what the Member might have earned as a rebate had that volume over 150 points been auto-balanced. The amount paid will be 1/2 as much if sponsor is not a 2X member. All orders placed after the qualifying order, will be auto-balanced provided the orders occur in the subsequent week. Said Alternatively, all orders placed in the week where a qualifying order quantity is reached, shall be as the qualifying order and will therefore NOT be auto-balanced to the purchaser.

7 Ranks and Promotions Within the Activ8 Compensation Plan all titles and leadership ranks are determined by the amount of earnings generated with the ARIIX Representative s Base Commission for a given Commission Period. Title Weekly Earning Title Weekly Earning Team Lead $25 Vice President $500 Senior Team Lead $50 Senior Vice President $750 Supervisor $75 Officer $1,000 Senior Supervisor $100 Senior Officer $2,000 Manager $150 President $3,000 Senior Manager $200 Chief Executive Officer $4,000 Director $250 Chairperson $6,000 Senior Director $375 Level 2+ Chairperson +$2,000 P/Level Bulk Purchasing This is a program available to Members and Representatives who wish to sell large quantities of. Under specific conditions evaluated on a case by case basis, ARIIX shall allow excess commissions to be paid to the sponsor of the individual or entity which purchases volume in excess of 13,334 points that would normally be flushed. In this way, all points that should roll up the tree are, while extra volume is still paid on to the Representative based on the amount of excess volume that rolled up the tree beyond 13,334 points. The greater the excess volume, the greater the extra commission paid. Furthermore, this allows the purchases to place a single order, and benefit on the price due to economies of scale. Contact an ARIIX executive for further details regarding this program should It be applicable. Return Process A Member or Representative may return less than $250USD worth of products within 6 months in unused condition. Any returns shall be net of any commissions paid that would NOT have been earned had the returning purchase not been made and credited as commissionable points. Negative volume shall be rolled up the tree on the week that it was returned. Any products that are returned where the corresponding volume was "Auto-Balanced," will remain negative to offset any future "Auto-Balanced" Volume.