NOVAVIE COMPENSATION PLAN

Transcription

1 NOVAVIE COMPENSATION PLAN I. General principles 1. Consultants only get commissions on sold products. 2. Consultants receive no commission on recruiting consultants. 3. All selling prices stated on the webshop should be respected II. Definitions CV: commissionable volume or turnover. This is the volume after deduction of all direct sales commissions (40%). In the current plan the CV is 60% of the sale price excluding VAT SV: sales volume (or turnover). This is the turnover excluding VAT PCV: This is the personal CV including those of direct customers of a consultant PSV: this is the personal sales volume excluding VAT which includes sales from direct customers of a consultant on their webshop Starter Pack : This is a package of products that can be bought upon enrollment at a higher discount. Active consultant: this is a consultant with minimum 1 CV in a calendar month Qualified consultant: this is a consultant with a minimum of 50 CV or a consultant with an active monthly autoship. Autoship: a fixed monthly purchase of a product that qualifies a consultant Active level: this is a level with an active consultant Qualified level: this is a level with a qualified consultant Generation: A generation consists of all consultants in a group which starts from the first premium qualified consultant (or higher) under you, until the next premium qualified consultant (or higher) under you. (See matching bonus) III. Basic promotions - Junior, Senior & Premium III.1. Junior Consultant You have the following options to promote to the rank of junior consultant: 1. Realize a PCV of 200 in a calendar month 2. Buy a Junior package when you sign in (value of 100) his qualifies you for the permanent position of Junior Consultant As a junior consultant you are entitled to 20% wholesale discount on your purchases and the purchases of your Internet clients on your personal webshop. You may qualify for an additional 5% (total 25%) wholesale discount by realizing a minimum of 100 CV in a calendar month.

2 III.2. Senior Consultant You have the following options to promote to the rank of Senior Consultant: 1. Realize a PCV of 400 in a calendar month 2. Buy a Senior Package when you sign in (value of 200) Or 1. Develop three active legs with an active frontline qualified junior consultant or higher This qualifies you for the permanent position of Senior Consultant As a Senior Consultant you are entitled to 30% wholesale discount on your purchases and on the purchases of your Internet clients on your personal webshop. You may qualify for additional 5% (total 35%) wholesale discount by realizing a minimum of 200 PCV in a calendar month. III.3. Premium Consultant You have the following options to promote to the rank of Premium Consultant: 1. Realize sales (PCV) of 600 in a calendar month 2. Buy a Premium Package when you sign in (value of 300) Or 1. Develop six active legs with a qualified frontline junior consultant or higher Or 1. Develop three active legs with a qualified frontline senior consultant or higher This qualifies you for the permanent position of Premium consultant. As Premium Consultant you are entitled to 30% discount on your purchases and the purchases of your online customers. You may qualify for additional wholesale discount in the following manner: 1. 5% (35%) if you achieve a minimum of 200 PCV in a calendar month % (40%) if you achieve a minimum of 400 PCV in a calendar month % (45%) if you achieve a minimum of 600 PCV in a calendar month. Remark : there is also a Premium starter pack at 600 that qualifies you immediately for 45% III.4. Crown Consultant III.4.1. *Crown Consultant * Crown 1 consultant is the first higher rank in the Novavie compensation plan. There are 5 positions of Crown 1 : * Crown to *****Crown.

3 Each qualification is permanent which means that you acquire this rank or position for life. You can qualify to the position of 1 Crown as follows : Either: Purchase a Crown package of 1,500 when signing up Or: 2. have 3 legs with a CV of 500 including 2 legs with a minimum CV of Minimum 3000 CV In your group Once you are *Crown you can also qualify for the Pool Bonus. The position *Crown is permanent but to qualify as a consultant *Crown you need to accomplish point 1, 2 and 3 as mentioned above each month. Important remark : The position of Crown is permanent but monthly qualification is needed in order to be paid as a Crown consultant (See Pool Bonus / Level Bonus /Crown bonus) III.4.2. **Crown Consultant You can qualify to the position of 2 Crown as follows : 2. have 3 legs with a CV of 1000 including 2 legs with a minimum of 2000 CV 3. Minimum 6000 CV in your group 4. Minimum two separate legs with a qualified * Crown Once you're Crown ** you can also qualify for the Crown bonus. The position * Crown is permanent but to qualify each month as consultant ** Crown you need to achieve conditions 1,2 and 3 as mentioned above. The structure condition 4 is not required for monthly qualification. III.4.3. ***Crown Consultant You can qualify for the position of 3 Crown as follows : 2. have 3 legs with a CV of 3,000 including 2 legs with a minimum of 6000 CV 3. Minimum 18,000 CV 4. Minimum two separate legs with a qualified ** Crown or 3 separate legs with minimum * Crown and one leg with a Crown ** Once you're Crown *** you can also qualify for the ***Crown bonus. The position *** Crown is permanent but to qualify each month as consultant ***Crown you need to achieve conditions 1,2 and 3 as mentioned above. The structure condition 4 is not required for monthly qualification.

4 III.4.4. ****Crown Consultant You can qualify for the position of 4 Crown as follows : 2. have 3 legs with a CV of 9,000 including 2 legs with a minimum of 18,000 CV 3. Minimum 54,000 CV 4. Minimum two separate legs with a qualified *** Crown or 3 separate legs with minimum ** Crown which a leg with a Crown *** Once you're Crown **** you can also qualify for the ****Crown bonus. The position **** Crown is permanent but to qualify each month as consultant ****Crown you need to achieve conditions 1,2 and 3 as mentioned above. The structure condition 4 is not required for monthly qualification. III.4.5. *****Crown Consultant You can qualify to the position of 5 Crown as follows: 2. have 3 legs with a CV of 18,000 including 2 legs with a minimum of 36,000 CV 3. Minimum CV 4. Minimum two separate legs with a qualified **** Crown Once you're Crown ***** you can also qualify for the *****Crown bonus. The position ***** Crown is permanent but to qualify each month as consultant *****Crown you need to achieve conditions 1,2 and 3 as mentioned above. The structure condition 4 is not required for monthly qualification. IV. Commissions and Bonuses IV.1. Fast Start Bonus The Fast Start Bonus is 10% on the CV of any new junior / senior / premium or crown that you sponsor personally. Given the fact that a consultant can only sign in once and buy a start package this means that you can only earn this commission once and for each new consultant you sign in. There is no commission paid on the registration fee but only on products purchased. To qualify for the Fast Start Bonus, you must be a qualified consultant. IV.2. Direct sales commission There are three basic ranks: junior, senior and premium. These are respectively entitled to 20%, 30% and 30% direct sales commission (or wholesale discount). This percentage will be increased if a particular PVC (personal commission volume) is achieved during any calendar month.

5 For junior : is entitled to +5% or 25% For senior : is entitled to +5% or 35% For premium : is entitled to +5% or 35% : is entitled to +10% or 40% : is entitled to +15% or 45% This discount percentage or direct sales commissions is taken into consideration to calculate commissions for online sales by customers of consultants. As only at the end of the month you can determine the final percentage, a consultant is always buying at the basic percentage of 20%. The extra 5-25% is then paid at the end of the month as a commission on the consultants personal orders and on online sales of direct customers. The extra 5% (from 40% to 45%) is for those who organize home parties and is only paid on personal orders of the consultant from his online back office and not on online orders from customers. IV.3. Development bonus The development bonus is a differential bonus determined by your discount rate and the discount rate of the consultants under you. The maximum rate that is taken into account is 40%. So only Premium consultants which qualify for the 40% or 45% are eligible for the highest level. Remark : A new consultant who buys a starter pack is automatically entitled to 25 to 35 or 40% (Junior / Senior / Premium) and can thus from the first month already a development bonus. Example : New consultant A buys a premium package and becomes a qualifying Premium consultant. The same month A recruits a new consultant B who has an SV (Sales Volume) of 150. Consultant A will be earning 15% development bonus (40-25) on the SV (Sales Volume) of consultant B, or 15% x 150 = Development bonus is not paid on starter packs as for this the compensation plan already provides a fast start bonus. IV. 4. Matching Bonus The matching bonus is paid over two qualifying generations of Premium consultants (or higher). Generation 1: To qualify for generation 1 (5%), you need to be an active Premium consultant, with 2 active legs. You will be paid 5% on the CV of the first downline qualified Premium consultant or higher up to the next (2 nd ) Premium qualified consultant or higher (this is one generation). Level 1: 5% of the CV on the 1st generation active Premium consultants Level2: 5% of the CV on the 2nd generation active Premium consultants Qualification: You qualify for the Matching Bonus 1st generation as follows : 1. You are minimum a qualified Premium consultant 2. You have to qualified legs You qualify for the Matching Bonus 2nd generation if you: 1. You are minimum a qualified Premium consultant 2. You have to qualified legs

6 The 2nd generation starts at the second active Premium consultant or higher of each leg and includes all consultants up to the next qualified Premium consultant or higher. IV.5. Network Bonus The network bonus is paid at active levels. See definition of an asset level at the top of the list of definitions. To qualify for the bonus level you have at least one qualified consultant Premium or higher and you have two qualified legs. A qualified premium is paid 3 levels. The table below shows the number of levels for qualifying Crown paid consultants. Rang / Levels Lev1 Lev2 Lev3 Lev4 Lev5 Lev6 Lev7 Lev8 Premium 2% 1% 1% One Crown 2% 1% 1% 0.5% Two Crown 2% 1% 1% 0.5% 0.5% Three Crown 2% 1% 1% 0.5% 0.5% 0.5% - - Four Crown 2% 1% 1% 0.5% 0.5% 0.5% 1% - Five Crown 2% 1% 1% 0.5% 0.5% 0.5% 1% 1% Remark: the rank that you have as Crown is irrelevant regarding your qualification for the level bonus. It is the grade for which you qualify (see also the Crown Pool Bonus and bonus) which determines how many levels you will be paid on. Each qualification is permanent but the bonus level, Crown (1tot5) Bonus and Pool Bonus level is based on your monthly qualification. Example : You area 4 Crown consultant but you only qualify for 3 Crown based on the volume in your different legs. In that case you will be paid as a 3 Crown. IV.6. Crown bonus From the position of Crown ** you can receive a Crown bonus. Each qualifying ** Crown or higher may be eligible for a Crown Bonus. The Crown Bonus is paid on the groups CV of the underlying Crown qualified consultants. Crown bonus is a differential bonus which means that you receive the difference between your crown bonus level and the crown bonus level of qualified crowns in your downline. The Crown Bonus percentage levels are as follows : 2 Crown : 2% 3 Crown : 3% 4 Crown : 4% 5 Crown : 5%

7 Crown bonus on qualified Crown consultants Rang 1 Crown 2 Crown 3 Crown 4 Crown 5 Crown 2 Crown 2% Crown 3% 1% Crown 4% 2% 1% Crown 5% 3% 2% 1% - A 4 Crown is therefore entitled to 2% in the CV group turnover of a Crown 2 Crown A 3 Crown is entitled to 3% in the CV group turnover of a Crown 1 Crown IV.7. Pool Bonus Novavie provides a monthly pool which is 15% of sales after deduction of all direct commissions and bonuses which have been paid. This bonus is paid to consultants who qualify for higher positions and thus have contributed significantly to the growth of Novavie. The Pool Bonus is paid from the position of *Crown consultant and higher. For each Crown position (Crown * to ***** Crowns) more levels are taken into consideration to calculate your share of the total pool. Detailed calculation of the Pool Bonus: Each consultant receives Crown shares in the Pool Bonus as follows: * Crown : 1 share **Crown : 3 shares ***Crown : 9 shares ****Crown : 27 shares *****Crown : 81 shares Based on this rule, we can calculate the total number of shares using the following example where the sales organization of Novavie consisted of : 42 x *Crown : 1 x 42 = 42 shares 18 x **Crown : 3 x 3 = 54 shares 7 x ***Crown : 9 x 7 = 63 shares 3 x ****Crown : 27 x 3 = 81 shares 1 *****Crown : 81 x 1 = 81 shares Total number of shares: 162 Assume that the total Pool amount is 18,000, then each share has a value of /321 = Now we can determine what portion of the Pool of 18,000 will be assigned to each group of positions: * Crown : 42 x = 2,355 (sub pool * Crown) **Crown : 54 x = (sub pool ** Crown)

8 ***Crown : 63 x = ****Crown : 27 x = *****Crown : 81 x = Now each sub pool is split up according to the individual contribution of a Crown consultant within his group and this is calculated by comparing his sales compared to the sales of other consultants with the same qualification. Following levels are taken into account for the calculation of your volume : *Crown **Crown ***Crown ****Crown *****Crown : 6 active levels : 9 active levels : 12 active levels : 18 active levels : 24 active levels Example a: total turnover of all * Crown (on first 6 active levels) is 40,000 and your turnover is This is 2000/40000 or 5% of the pool group turnover * Crown. Your Pool Bonus is: 5% x 2,355 (total allocated Pool Bonus to * Crown) or: Example b: total turnover of all Crown ** (on first 9 active levels) is 60,000 and your turnover is 10,000. This is / or 16.7% of total pool group turnover ** Crown. Your Pool Bonus is 16.7% x 3,028 or If all Crown consultants who qualify for the Pool Bonus are paid out, then the total amount of 18,000 will have been divided. IV.8. Car Plan There is a car plan provided from the position of Crown 4. Given the fact that the first year there will probably be not ****Crowns who qualify, we have not yet set the details for qualifications.