WELLSTAR COMPENSATION PLAN
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1 WELLSTAR COMPENSATION PLAN 07/2015 I EN
2 Welcome to WellStar World Leader in Bionic Youth Activation Systems: BYAS. World Leader in Social Club Selling: SCS. WellStar International has an important goal: We want to help everyone to become attractive, slim and financially independent with ease. WellStar has grown by several hundred percent since the launch of the BYAS line and the Social Club Selling system, and we are now well on our way to global market leadership. The WellStar system for success is easy to duplicate and will take you to every target you set for yourself. Set course for the future with WellStar and take charge of your own life. You are cordially invited to join us: come to know and love WellStar, and grow with us. Your steps to success: 1 Get started by becoming an independent partner with WellStar. 2 Start the Autoship programme. 3 Qualify as Junior Manager or even as high as National Vice President in your Faststart in the first 4 weeks. 4 Sponsor 3 partners or more, and show them steps WellStar Compensation Plan
3 Social Club Selling WellStar has revolutionized the direct marketing sector with its Social Club Selling. We do not chase after customers: they come to our homes for BYAS Champagne Parties or to our Beauty Style Clubs (BSC). Anyone can start earning a good return immediately and easily in the BSC. New partners invite friends and acquaintances to come for a free trial treatment with the BYAS system. WellStar s trained leaders then present the BYAS systems and do the selling for you. This allows every partner to earn anywhere of Euros and more right from the first month. Two simple things WellStar partners do to earn money: 1 Invite guests to the BYAS Champagne Parties and earn good money from the start. 2 Build up your team and earn lucrative bonuses on your team s sales. BS VP Guests WellStar Compensation Plan 02
4 BYAS Beauty Hi-Tech Right Timing at the beginning. For several years, the market for Beauty Hi-Tech has been developing. To achieve sensational results in skin rejuvenation with approved special technologies was an offer that has yet been reserved for those people who were willing to go into beauty clinics and to pay hundreds of Euros. With disruptive technologies the Beauty Hi-Tech market has changed and redistributes itself. With the Bionic Youth Activating System (BYAS) WellStar offers you the exceptional chance to ensure your share at the Beauty Hi-Tech growth market and to establish long-term wealth and personal security this way. Market Development Beauty Hi-Tech 100 billion Euros sales potential Mass market Trendsetter phase 100% to 1.000% growth per year Pioneer phase million people 400 million women 200 million customers x 500 Euros repeated sales / year = 100 billion Euros repeated sales 03 WellStar Compensation Plan
5 1. WellStar Starter Kit Prize-winning and highly professional business building and training system for your success. WellStar Distributor License* WellStar Online Business Center WellStar Online Shop WellStar Online Training Center WellStar Online Success Center WellStar Online Marketing Websites WellStar Online University WellStar Business Presenter WellStar Success Planner WellStar Compensation Plan BYAS Tool-Kit (brochures & forms)** 2. WellStar Autoship Programme In the unique WellStar Product Autoship Advantage Programme (ASP), you get your BYAS products delivered month after month at special prices, comfortably and directly at home. Simply choose your personal top-class products out of the entire BYAS nutrition and BYAS cosmetic products. The advantages of your personal ASP 1 You are qualified to start in the WellStar Faststart Programme. 2 You can secure your active status to be entitled for receiving team commissions. 3 You receive the BYAS top-class products at special prices (up to 30 % cheaper). 4 You get your ASP from the fourth month free of shipping cost. 5 You get your personal ASP for free with 5 direct partners who each have an active ASP. * WellStar Distributor License: This license has a running period of 6 and includes the use of WellStar s online portal as well as of all Backoffice tools. It is automatically extended for another 6 as long as it is not terminated in written form at least 30 days before expiry. The license is only free of charge during your first 6 of your distributorship, if you order a 1st Order Bonus Package with your initial order. Upon registration without initial order the regular price is to be paid for the license. You find all details concerning the distributor license in the currently valid compensation plan inlay. ** According to availability. WellStar Compensation Plan 04
6 3. Earn on every Sale 3.1 Earn direct Money with the Retail Profit You have about 30% profit on every sale. Customer MST Eye Lifter Face Lifter (Ex.: ASP ) Face / Body Lifter (Ex.: 699 ) Discount (%) (Ex.: 699 ) % RP 5 % 10 % 15 % 20 % 30 % 40 % Discount scale Discounts are paid out with the bonus each month in addition to the retail profit. The more end customers you add in a month, the greater your individual discount. At the top of the scale you have up to a 40% discount on the PGV, i.e. a total profit of 60%. Discount 5 % 10 % 15 % 20 % 30 % 40 % PGV on Eye Lifters / ASP PGV on Face / Body Lifters 1 PGV 2 PGV 4 PGV 6 PGV 10 PGV 15 PGV 8 PGV 16 PGV 32 PGV 48 PGV 80 PGV 120 PGV Example You sell: 4 Face Lifters + 4 Body Lifters = 4 x 1,5 PGV + 4 x 4 PGV = 6 PGV + 16 PGV Your personal discount: = 20 % / 10 % Your average additional income: (6 PGV x 90 * x 20 %) + (16 PGV x 90 * x 10 %) = 252 ** 4 Face Lifters = 240 RP 4 Body Lifters = 800 RP Discount = 252 Your total earnings: *1 PV = 90 gross. Depicted commissions and bonuses include legal VAT. **plus ASP RP per month Note: As a registered Club Member (CM) you receive 90 % of the profit margin attained (retail profit). The next-higher level Club Owner always receives 10 % as a training bonus. 05 WellStar Compensation Plan
7 3.2 Residual Income via Customer ASPs In the Autoship Programme (ASP), your customers get the BYAS products conveniently delivered directly to their homes month by month. Via these customer ASPs you automatically receive a subsequent commission. Example per year You sell 4 ASPs each month, 2 customers keep ordering (average subsequent commission per customer: ): Year 5 Year Year 3 96 = Year 2 72 = Year 1 48 = Number EK ASPs 24 = Subsequent Commission total Subsequent Commission single = , ,50 30 WellStar Compensation Plan 06
8 4. WellStar Faststart Programme Reach your personal top level within your first 4 weeks for a monthly earning of to The higher the level you reach the higher your commission will be you receive on your direct partners, team partners and customers. Sa. Fr. Fr. Fr. Fr. Fr. Start week Week 1 Week 2 Week 3 Week 4 00:00 23:59 23:59 23:59 23:59 23:59 Note: Faststart = Starting week up through Friday plus 4 full weeks. Commissions are paid out weekly (=each time 7 days after the end of the Faststart week). A reached Faststart level always counts from the subsequent week. Reached levels up to the Manager position are permanent. From the Director position upwards requalification is required. Requalification after the end of the Faststart or after having reached a level is required within the running quarter plus 2 full quarters. 4.1 During the Faststart Team Bonuses In order to reach a position up to National Vice President (NVP) within the Faststart, the following qualification applies (cumulated over the whole Faststart period). Qualification VP JM M DIR RVP NVP PGV OrgaPV Lines with at least 2,5 ORGA PV each You earn on the sales of every direct partner. Position VP JM M DIR RVP NVP Percent on new direct partners (= in Level 1, E1) 3 % 6 % 10 % 15 % 20 % 25 % Bonus example with 10 PGV Example Your earnings as JM on the sales of your direct partners: 6 % x 10 PV x 90 * (je PV) = 54 *1 PV = 90 gross. Depicted commissions and bonuses include legal VAT. 07 WellStar Compensation Plan
9 Differential Commissions and Matching Bonus You earn differential commissions on the sales of your indirect team partners and the matching bonus on partners at the same level (in the following example with 10 PGV each per team partner). From the DIR level upwards, matching bonuses are paid weekly on the cheque of partners at the same level within your team that are in their Faststart periods, namely on the first partner of the line who is at same level with you, provided that there is no other partner with a higher level between you. Sales level VP JM M DIR RVP NVP Differential commission on team partners -- up to 27 up to 63 up to 108 up to 153 up to 198 Matching bonus % 20 % 20 % Example Differential Commission Your differential commission as DIR on the sales of a direct team partner s team partners at VP level with 10 PV: DIR 135 bonus level = 15 % VP 27 bonus level = 3 % 10 PV 10 PV 10 PV 108 differential commission = 12 % 3X 10 PV = 3X 108 (10 PV X 90 X 12 %) = 324 TOTAL Example Matching Bonus Matching-Bonus YES Matching-Bonus NO RVP RVP earnings 20 % on = 400 RVP NVP RVP WellStar Compensation Plan 08
10 4.2 During the Faststart Extra Bonus New WellStar partners get up to for the position they reach at the end of their Faststart.* Bonus Qualification Additional Qualification Go JM YOU HELP 4 DIRECT PARTNERS to reach min 2,5 PGV EACH Go DIR Go RVP Go NVP YOU HELP 6 DIRECT PARTNERS to reach min 2,5 PGV EACH, your team volume: 100 Orga-BV YOU HELP 8 DIRECT PARTNERS to reach min 2,5 PGV EACH, your team volume: 300 Orga-BV YOU HELP 10 DIRECT PARTNERS to reach min 2,5 PGV EACH, your team volume: 600 Orga-BV * Payment extra bonus: Examination of qualification at the end of the Faststart, 50 % payout with the last (4th) Faststart settlement, 50 % in the form of a product set that will be specified by WellStar according to availability of products. 4.3 Faststart Example GO JUNIOR MANAGER 3 x 27 = 81 EXTRA-BONUS = TOTAL = JM 54 VP VP VP GO DIRECTOR 3 x 3 x 81 * = 729 EXTRA-BONUS = TOTAL = DIR 135 * 81 = JM JM JM Important notes for maximum bonuses in the Faststart: 1. Help 3 active partners with team building and customer building. 2. Pass this success concept on to your team. This way you reach lucrative bonus levels and lucrative incomes through your partners activities. Bonuses depicted may be larger or smaller depending on sales performance and team size. Bonuses include legal VAT. 09 WellStar Compensation Plan
11 5. After the Faststart Team Bonus After your Faststart you will receive weekly team bonuses on the sales of your direct Faststart partners and the Faststart partners of your team. You earn from the sales of every direct partner. Position VP JM M DIR RVP NVP IVP AMBA Percent on direct new partners (= in E1) 3 % 6 % 10 % 15 % 20 % 25 % 28 % 31 % Bonus at 10 PGV Position CA 1-STAR CA 2-STAR CA 3-STAR CA 4-STAR CA 5-STAR CA RCA Percent on direct new partners (= in E1) 34 % 35 % 36 % 37,5 % 39 % 40,5 % 42 % Bonus at 10 PGV Differential Commission and Matching Bonuses You earn differential commissions on indirect team partners (your direct partners partners) and matching bonuses on partners at your level. Sales level VP JM M DIR RVP NVP IVP AMBA CA Differential commission up to 1-STAR CA - RCA Matching bonus % 20 % 20 % 20 % 20 % 20 % 20 % Example Income AMBA 279 LEVEL AMBA FS NP direct JM 54 RVP 180 AMBA Direct Bonus 279 Team Bonus + Diff Comm. 225 per Team VP Diff Comm. 99 per Team VP Matching Bonus 20 % = Bonuses depicted may be larger or smaller depending on sales performance and team size. Bonuses include legal VAT. WellStar Compensation Plan 10
12 6. WellStar Level Plan To the top with team building Reach your top position in the level plan after your Faststart with only 3 active lines. This way you can build a team and attain high incomes (team bonuses) easily and quickly. Team bonuses within the level plan are paid monthly on reorder volume (sales of all partners after the Faststart). Dynamic Level Compression 1 According to your level and your qualification you get commissions on a certain number of active levels (up to 12 dynamic levels) in depth. 2 Inactive Levels (< 0,5 PGV) are counted to the next higher level (= level compression). 3 Every partner with his customers with at least 0,5 PGV forms a level. 4 Level bonuses are also paid to partners at the same or higher levels. Levels without dynamic compression The Power of Five Partners Levels with dynamic compression E1 1,6 PGV E1: 1,6 PGV E2 2,6 PGV E2: 2,6 PGV E3 1,6 PGV E4 0,2 PGV E3: 1,8 PGV E5 1,6 PGV E6 0,4 PGV E4: 2,4 PGV E7 0,4 PGV E8 2,0 PGV E5: 2,0 PGV Level Partners Level Bonus E1 3 5 % E2 9 5 % E % E % E % (20 % ab IVP) * Basis: 2 PGV per partner Bonuses depicted may be larger or smaller depending on sales performance and team size. Bonuses include legal VAT. 11 WellStar Compensation Plan
13 Bonus Qualification Level Plan Active qualification you have monthly either in your personal ASP or single order 2 E1 NEW PV (up to MANAGER position)* resp. 4 E1 NEW PV (from DIRECTOR position upwards)* Qualification exemption you have monthly 5 direct partners with 1 active ASP each (0,6 PV) = ASP free for you 10 direct partners with 1 active ASP each (0,6 PV) = You are automatically qualified for level bonus *E1 New PV: PGV of your personally sponsored partners in their Faststart periods. Level Qualification You reach a new position with the respective level sales. Please refer to the WellStar Level Plan for the qualification volume. Qualification sales to be achieved Up to Level DIR within 1 month From RVP within 3 consecutive M1 M2 M3 Qualification Qualification Qualification Qualification Requalification for Levels Reached After the end of the Faststart period a requalification is required from the Director position upwards in order to hold the position. Requalification needs to follow within the running quarter plus two full quarters. Examples Faststart end / or level attainment after Faststart in March, then: Faststart end / or level attainment after Faststart in April, then: First full quarter Second full quarter = April - June = July - September Running quarter First full quarter Second full quarter = April - June = July - September = October - December Requalification needs to be achieved until September, otherwise starting from October, the highest level reached during the last two quarters counts as new level. Requalification needs to be achieved until December, otherwise starting from January, the highest level reached during the last two quarters counts as new level. WellStar Compensation Plan 12
14 Highly lucrative at all levels: The WellStar Level Plan. Level VP TR JM MAN DIR RVP NVP IVP Qualification 1 10 PV 20 PV 50 PV 100 PV 200 PV incl. 2 lines at 100 PV each 500 PV incl. 3 lines at 100 PV each PV incl. 3 lines at 100 PV each 1 month 1 month 1 month 1 month E1 5% 5% 5% 5% 5% 5% 5% 5% E2 5% 5% 5% 5% 5% 5% 5% 5% E3 5% 5% 5% 5% 5% 5% 5% E4 5% 5% 5% 5% 5% 5% E5 5% 5% 5% 5% 5% / 20% 2 E6 5% 5% 5% E7 5% 5% 5% E8 10% 5% 5% E9 10% 5% E10 10% E11 E12 1 For reaching the level sales the 50 % rule applies: Maximum of 50 % of the required sales for one level can come from your strongest line, i.e. at least 50 % of the required sales has to come from the other lines plus your own PGV. 2 From IVP position upwards: You get 20 % (instead of 5 %) on your fifth level (E5), if you reach ORGA-PV incl. 3 lines at 200 PV each per month. 13 WellStar Compensation Plan
15 AMBA CA 1-STAR CA 2-STAR CA 3-STAR CA 4-STAR CA 5-STAR CA RCA PV incl. 5 lines at 200 PV each PV incl. 5 lines at 200 PV each PV incl. 5 lines (4 RVPs at 200 PV each + 1 AMBA) PV incl. 5 lines (3 RVPs at 200 PV each + 2 AMBAs) PV incl. 5 lines (2 RVPs at 200 PV each + 3 AMBAs) PV incl. 5 lines (1 RVP at 200 PV each + 4 AMBAs) PV incl. 5 lines (5 AMBAs) PV incl. 5 CAs 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% / 20% 2 5% / 20% 2 5% / 20% 2 5% / 20% 2 5% / 20% 2 5% / 20% 2 5% / 20% 2 5% / 20% 2 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 10% 10% 10% 10% 10% 10% 10% 10% WellStar Compensation Plan 14
16 7. WellStar European Pool As qualified leaders from the Director level upwards you also participate in the European sales of all WellStar partners. Qualification In order to qualify for a pool level of the European Pool you always need to have a personal group volume of 0,6 PV. In addition, please note the following qualification details you need to reach per quarter (cumulated over 3 ): Qualification Overview 1. Volume: You attain the sales required for a pool level. 2. Structure: You attain the team composition required for a pool level. 3. Qual. Lead: You have partners in your team who also qualify for the European Pool (applies from pool level NVP upwards). Note: The qualified team partners need to come from different lines, regardless of the depth. Thus, they are not allowed to come from the same line. 4. New Lead: You have built a new partner within your team who reaches a required level until the end of a quarter (= new leader). Example: Quarter = April/May/June. The partner who is going to follow as a new leader reaches the required position until June 30th. This partner is counted although the new position would become official only for July 1st. AMBA IVP 12 % NVP 10 % RVP 8 % DIR 6 % Share 3 % Cumulated volume per quarter** 300 PV 600 PV PV PV PV Cumulated structure per quarter** 50% rule 2 lines with 300 PV each 3 lines with 300 PV each 3 lines with 300 PV each 5 lines with 600 PV each Qualified partner in the pool per quarter (= qual. LEAD) New partner line per quarter (= new LEAD) not required not required 1 DIR 3 DIR 3 RVP 1 JM 1 M 1 DIR 1 DIR 1 DIR 15 WellStar Compensation Plan
17 * Income: Average pool distribution per quarter at the respective pool level. Pool bonuses depicted may be larger or smaller depending on sales performance and team size. Bonuses include legal VAT. The pool share is paid on a quarterly basis. ** For reaching the level sales the 50% rule applies: A maximum of 50 % of the required sales for one level can come from your strongest line, i.e. at least 50 % of the required sales has to come from the other lines plus your own PGV. RCA 5-STAR CA 20 % 4-STAR CA 19 % 3-STAR CA 18 % 2-STAR CA 17 % 1-STAR CA 16 % CA 15 % 14 % PV PV PV PV PV PV PV 5 lines with 600 PV each CA incl. 1 AMBA CA incl. 2 AMBA CA incl. 3 AMBA CA incl. 4 AMBA CA incl. 5 AMBA 5 CA 5 RVP 4 RVP + 1 AMBA 3 RVP + 2 AMBA 2 RVP + 3 AMBA 1 RVP + 4 AMBA 5 AMBA 5 CA 1 DIR 1 DIR 1 DIR 1 DIR 1 DIR 1 DIR 1 DIR WellStar Compensation Plan 16
18 Definitions and Terms Key information at a glance. PV Commission value Each product has been assigned a PV, which determines the commission amount. Generally, 100 in sales corresponds to approx. 1 PV. For each PV, 90 is channelled into the incentive plan. This means that each partner earns a percentage share corresponding to his or her level in the commission plan of 90 per each PV of his or her team sales. PPV & PGV PPV = personal PV = your personal orders. PGV = personal group volumes. The PGV encompasses both your PPV and the orders of your personal end customers (EK PV). RP Retail Profit The retail profit, or RP, is the profit you obtain when you distribute a product directly to an end customer. If your customer uses an order form to place an order or orders online directly from WellStar via your webshop, you will receive the retail profit with the monthly account. Personal reimbursement = increased retail profit (RP) In addition to the regular retail profit of approx. 30 % 40 %, after your Faststart you can qualify monthly for an additional personal reimbursement of 10 % - 40 % via your personal customers sales (= PGV). Personal reimbursements generally do not apply to special promotion items and they do not flow into the PGV. Active status Every partner needs to retain his or her active status in order to continue receiving commissions and reach a level. This means: You have at least 0,6 PGV in the ASP or single sales from customers each month. E1 New PV The E1 New PV is the volume of your direct new partner with his or her final customer (= his or her PGV = your level 1 = E1) in that person s Faststart phase. The E1 New PV is important for qualifying in the Level Plan and for payments on the different levels. Starting from the Junior Manager level, you need 2 E1 New PV for level payments and from the Executive Director level to the Royal Crown Ambassador level, 4 E1 New PV. FS PV Team The whole volume (initial orders + orders of customers) of all partners of your downline who are in the Faststart yet (= in the first 4 weeks), is your FS PV Team. ORGA-PV ORGA PV is the total volume of your organization incl. your own PGV. Your ORGA PV also consists of the volume of your personal orders (PGV) plus the volume of your personal end customers (EK PV). Example: Taken together, your partners have purchased products for 50 PV and you have 2 PV: in that case your ORGA PV = 52 PV. BV Business Volume In addition to a PV value, every product is assigned a BV value which is relevant for attaining positions in the commission plan! The BV value can be raised for incentive purposes. For bonus qualifications increased BV values will not be counted just as well as for the qualification for the Company Car Programme or the qualification for the Founder Pool. For this, exclusively real PV counts. 17 WellStar Compensation Plan
19 Requalification for attained levels Reached levels up to the Manager position are permanent. In general, from Director position upwards requalification is required after the end of the Faststart or after having reached a level in order to keep the position. Requalification is required to be achieved within the running quarter plus 2 full quarters. Dynamic level compression As a WellStar partner, you receive commissions according to your level and qualification on a certain number of active levels below you. Every partner with his customers with at least 0,5 PGV forms a level. Inactive levels (= below 0,5 PGV) are counted to the next higher level (level compression). Level bonuses are also paid to partners at the same or higher levels. Sales partner lines A sales partner sponsored by you and his or her team represents one sales partner line. One speaks of an active line when at least 1 sales partner in the team has 0,5 PGV. WellStar Compensation Plan 18
20 WellStar GmbH & Co. KG / Charlottenstraße 4 / D Berlin / Germany WellStar GmbH & Co. KG, Sitz Berlin Handelsregister: Amtsgericht Charlottenburg (HRA 34621) persönlich haftende Gesellschafterin: WellStar Beteiligungs GmbH, Sitz: Berlin Handelsregister: AmtsgerichtCharlottenburg (HRB 90176)
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