INDEPENDENT CONSULTANT EARN COMMISSIONS ASCENSION TO RANKS FOUNDER S CLUB GLOSSARY OF TERMS

Transcription

1 C O M P E N S A T I O N P L A N

2 1 INDEPENDENT CONSULTANT 2 EARN COMMISSIONS 3 ASCENSION TO RANKS 4 FOUNDER S CLUB 5 GLOSSARY OF TERMS

3 1 INDEPENDENT CONSULTANT

4 S E C T I O N 1 INDEPENDENT CONSULTANT IC YOUDAZZLE INDEPENDENT CONSULTANT PROGRAM START BY BECOMING A YOUDAZZLE INDEPENDENT CONSULTANT ( IC ) To start profiting from your own Independent Consultant business, you must complete a YouDazzle Independent Consultant Application/Agreement and submit it online. You must be at least 18 years of age to apply. The Company maintains the right to approve or reject any IC Application/Agreement. As an approved IC you can sell the YouDazzle service subscriptions and earn commissions. You can also sponsor other ICs and build a downline sales organization whereby when they sell subscriptions, you can earn bonuses on their sales as well. The YouDazzle opportunity also allows you to sponsor Independent Affiliates (IAs). IAs are not allowed to sponsor ICs or other IAs. Instead they can create referred sales for you by driving online visitors from their sites/ blogs, etc. to your official IC replicated website (or another URL as approved by the Company) for which you would receive sales credit if those visitors purchased subscriptions. Prospective IAs must be at least 18 and must submit an IA Application/Agreement online for approval. The Company reserves the right to accept or reject any IA Application/Agreement submitted. The IA is paid 20% for the first year the referred sales subscription is in effect with a 10% commission earned each month/year thereafter if/when the subscription is renewed. Those customers generated by the IA referrals become your personal customers so you are responsible for creating a relationship with them by providing excellent customer service. Since you can receive a maximum core commission of 35% on your subscription sales as delineated in the IC Commission section below, you will receive the difference between 4

5 S E C T I O N 1 INDEPENDENT CONSULTANT what you earned as your max core commission in a given month and the referral commissions earned by your personally sponsored IAs that same month. Thus if you earned the max core commission of 35% on subscriptions that were billed in May and you had 10 subscription billings that month made to your personal customers, you would earn 35% on the billings made to eight of them whom you created solely through your own efforts. If the other two customers were created with the help of your IAs via referred sales and one IA earned 20% on that referred sale billing that same month, then you would receive the difference of 15% on that billing. If the other IA earned 10% on his/ her referred sale billing that same month (since it was a billing that took place during the second year of the customer s subscription), then you would earn a 25% commission on that particular billing that month. The commissions paid to you, an IC, and to your IAs for their referred sales, are paid on the Retail Volume (RV) of the subscriptions billed each month. Hence if you, as an IC, earned a 35% commission on a $999 annual subscription billing you sold in a given month, you would earn $ (35% x 999 RV). If one of your IAs made a referral sale to you the same month you earned the core max commission of 35%, and it was a $99.99 per month subscription, then the IA would earn $19.99 each month the subscription would be in effect during the first year and you would earn the difference of $14.99 per month (15% x RV) if you earned the 35% max core commission each month during the first year of the subscription. The IA receives 20% x RV = $19.99 per month during the first year of the subscription and 10% x RV = $9.99 per month during the second year and thereafter. You, the IC, would receive 25% x RV = $24.99 per month during the second year and thereafter as long as you were earning the 35% max core commission each month. (Remember that you earn the difference between the max core commission you qualified to earn each month and what was earned by your IAs for those same billings via the IAs referred sales. On the billings you created solely from your own efforts, you can earn the full 35% commission.) IAs are paid by the 15th of each month based on the previous month s production. ICs are paid within the same time frame. This convergence of network marketing and affiliate marketing is truly an incredibly innovative, exciting component of the YouDazzle opportunity. It was designed specifically to help you build your customer base faster and increase your income. 5

6 S E C T I O N 1 INDEPENDENT CONSULTANT There are no YouDazzle service subscription purchases required to either become an IC or to maintain your position as an IC. However there is a YouDazzle IC Business Launch Pack (BLP) that must be paid for at the time your IC Application/Agreement is submitted. This Business Launch Pack ($49) contains important training information, marketing materials and services that will help you in growing and expanding your Independent Consultant business. (Note that you have the option to also become a customer and purchase a subscription for your own use for a variety of personal and/or business purposes. Should you choose to do this, because of the technology you will have available via the YouDazzle service, you will be able to interact more effectively with customers and prospects. If you build a downline sales organization, you will also be able to interact with your downline ICs and your IAs via your YouDazzle account). Also since YouDazzle is committed to always maintaining a business built on a strong foundation of ethics and integrity, we feel it is important to clearly communicate that culture to you since we expect all of our Independent Consultants to operate with the same high standards. The BLP gives you important guidelines and mandates to follow so that the YouDazzle brand will always be a bright light on the list of the finest in entrepreneurial endeavors and customer satisfaction. (There are never any commissions or bonuses paid out on the BLP since this is not a YouDazzle product/service offering). Since IAs are not allowed to sponsor anyone and therefore there are no mandates for them to train anyone, IAs do not have to purchase a BLP nor do they have to purchase any YouDazzle products to become approved IAs. They do have to abide by the IA Agreement, IA Compensation mandates, and any IA Policies and Procedures to maintain the privilege of being an IA and receiving any associated benefits. To keep your status as an IC current, there is also an IC annual renewal fee. This must be received by the Company before the anniversary date which is when your Application/Agreement was approved and you became an IC. 6

7 2 EARN COMMISSIONS

8 S E C T I O N 2 EARN COMMISSIONS EARN BEGIN EARNING COMMISSIONS AND BONUSES All ICs can immediately begin selling the YouDazzle service subscriptions. You can do this by directing prospects to your own YouDazzle IC website or directing them to the YouDazzle official corporate website where they must provide your IC Identification Number (ID) when requested at the site. You can also have a guest register to enter a YouDazzle data room of yours and if that person signs up then or later on to become a customer (and/or also to become an IA or an IC), this activity will be tracked via a cookie. If that person signs up via your particular cookie/linkage at the time of signup, you will receive the credit for that subscription purchase by that new customer (and/or the registration signup by the new IC or the new IA). All commissions and bonuses are paid by the 25th of the month based on the previous month s sales production. (The minimum required for payment is $ If you are due less than $20.00, your total commission/bonuses will accrue. When the total amount due is at least $20.00, you will then be paid that amount the following month). The payout date and the minimum amount due also applies to how/when IAs get paid. Commissions Paid on Your Personal Sales to Customers As an IC when you sell the service to a customer, you will earn a commission as long as you have maintained the IC status when the sale was made. The amount of commission you earn will vary according to the compensation plan and the type of subscription you sold. When you sell a subscription to an individual who is neither an IC nor an IA 8

9 S E C T I O N 2 EARN COMMISSIONS that person is considered your customer and you receive the Retail Volume (RV) associated with that sale. The RV for which you receive credit for your personal sales is considered your Personal RV (PRV). Additional special incentives on your personal sales may be offered by the Company from time to time that could be based on the lower Bonus Volume (BV) of your personal sales, also referred to as your Personal Bonus Volume (PBV). The BV amount assigned to each subscription is typically used to calculate the payouts on the bonuses paid on the sales made by your downline sales network. Any special incentives you received which paid you on the BV amount of certain personal sales you made would increase your total earnings on those sales). The BV is also tied to certain personal production mandates so you will also receive the associated BV amount tied to each personal customer sale. When you personally sponsor (PS) a new IC or a new IA who decides at that time to purchase a subscription, that sale will also be considered a sale to your personal customer and you will receive the Retail Volume (RV) and the Bonus Volume (BV) associated with that sale. Should the IC or the IA months later decide to purchase the service, he/she normally would still be considered your customer and you would still receive the RV and the BV credit at that time.* (Hence whenever you, as an IC, decide to purchase a subscription for yourself, your Sponsor will receive the associated RV and the associated BV credit for that sale since you are considered his/her customer. The same holds true for a person who is an IA and chooses to purchase a subscription). *Note rare exemptions that could occur per the IC Policies and Procedures. Whenever one of your IA s makes a referred sale creating a new customer for you, since that new customer is your personal customer, you must nourish the relationship by doing your best to provide excellent customer service. Hence you will receive the full RV/BV credit associated with any billings from that customer for ascension to any IC rank, for fulfilling Maintenance Requirements, your active requirement and any other qualifiers/maintenance for any special programs unless otherwise stipulated in writing. l Earn up to 35% Commission on Personal Sales Made to Your Customers 9

10 S E C T I O N 2 EARN COMMISSIONS Earn 20% commission on your personal sales to customers until you have at least 3 personal current subscriptions in effect in a given month along with at least 100 PBV in subscription billings that same month. Once you have fulfilled those qualifiers in a given month, you will earn a 35% commission on all subscriptions billed that month. In subsequent months, the same qualifiers apply. You will earn the full 35% commission on a given month s production as long as you have a) at least 100 PBV in billings that month and b) a minimum of 3 current subscriptions. After you qualify to receive the full 35% commission in a given month, if you have less than 100 PBV in billings in a given month or less than 3 current subscriptions in that month, then you will earn a 25% commission on your PRV of the subscriptions billed those months. The 3 current subscriptions referenced above pertains to the number of your personal customer orders for which monthly payments are processed that month and any annual subscriptions that are in effect. Hence if you had 2 customers who each made 2 separate monthly payments that month and you had a customer who previously 4 months ago placed an annual subscription order and that subscription was still in effect, then all of those subscriptions are in effect and would count as a total of 3 current subscriptions. (Note that the term current subscriptions itself relates to the customer subscription orders an IC has in effect for which payments have been made for an annual subscription or are being made on a monthly basis). 10

11 S E C T I O N 2 EARN COMMISSIONS EXAMPLE A: You become an IC in March and you make 3 personal sales that month... How Your Commissions are Figured: The Retail Volume (RV) is the volume upon which your commissions on your personal sales to customers are based. The RV is normally the same as the fee that the customer paid for the service. YOUR SALES 1ST SALE: $19 MONTHLY FEE $19 monthly subscription to a mom for her home-schooling classrooms 2ND SALE: $39 MONTHLY FEE $39 monthly subscription to your (PS) IC who opts to purchase to set up different rooms for his/her businesses and/or for his/her personal family, friends, fellow hobbyists or online gamers, etc. and other types of groups COMMISSION ASSOCIATED RV OF $19 (with a BV of 12) ASSOCIATED RV OF $39 (with a BV of 25) 3RD SALE: $999 ANNUAL FEE $999 annual subscription to a company/organization (either a for profit or a nonprofit) ASSOCIATED RV OF $999 (with a BV of 599) EXAMPLE: If you made those 3 sales to your personal customers in March in that order during your first month as a new IC... You would have a $ PRV total that month representing your personal sales of current subscriptions in effect that month. Since you had at least 3 personal customer current subscriptions in effect along with at least 100 PBV in March, in April you would be paid $ in commissions on those subscriptions. ( PRV x 35% = $370.64) AND you would continue to earn the full 35% commission on those monthly subscriptions that stayed current as well as any new subscriptions ordered as long as you a) had fulfilled the 100 PBV minimum and b) had at least 3 current subscriptions in any given month upon which you wished to receive the full 35% commission. 11

12 S E C T I O N 2 EARN COMMISSIONS Fast Start 15% Retroactive Commission Payout If you did NOT qualify to receive the full 35% by the end of your first month as an IC, as long as you DID qualify during your second month as an IC, you would receive the additional 15% retroactively on all of your initial personal sales created during your first month as an IC. Hence if you did NOT qualify to receive the full 35% on the personal sales you created in March but DID qualify based on your personal production in April, then in May, you would receive your normal commission payouts based on April s production but would also receive a one-time additional 15% retroactive commission payout on the associated RV of your personal sales for which you were paid 20%. This Retroactive Commission Payout includes paying you any difference you failed to earn regarding the max core commission of 35% and what your IAs earned on any referred sales billings that first month. l NOTE HOW REFERRED SALES BY YOUR IAs IMPACT YOUR COMMISSIONS IN THE ILLUSTRATIONS ABOVE As stated previously, if a personal customer billing is made as a result of a referred sale by one of your IA s, then you will not receive the full commission earned as given in the examples above. You will be paid the difference between the max core commission you earned in a given month and what the IA earned for making the referred sale. The only exception is the Fast Start 15% Retroactive Commission Payout as delineated above whereby you can recoup commissions on your personal customer subscription billings that resulted from referred sales made by your IAs. Since any sales created with the help of referrals made by your IAs are counted as your personal customer sales, those subscriptions are included as part of your 3 current subscriptions qualifier. 12

13 S E C T I O N 2 EARN COMMISSIONS l Earn Bonuses Paid on the Sales Production of Your Downline Sales Network As an IC you can expand your income potential if you build a productive downline sales network. You start by introducing a person to the IC services and opportunity and when you sponsor him/her as an IC, that person is placed on your Level 1 (Ll) of your downline sales network. When you become a Sponsor, to earn bonuses on his/her production, you are obligated to help that new IC grow his/her business. When you do this, your personally sponsored (PS) ICs and their ICs will work to establish loyal YouDazzle customers and you can earn bonuses on the sales made to those customers. The downline sales network can expand because when you sponsor Larry, he becomes your Level 1 (L1) IC and then if Larry sponsors Marissa, she becomes your Level 2 (L2) IC and so on. Hence Larry and Marissa are both in your downline. Marissa is also in Larry s downline as she is a Level 1 (L1) IC to Larry. You earn bonuses on the Bonus Volume (BV) of sales made by your downline. A BV amount is designated for each subscription. There may be times when the Company also affords you an opportunity to earn additional monies based on the RV associated with certain sales made by your downline. It is important to point out that at no time are bonuses paid just for sponsoring others as ICs. You must see to it your downline produces their own personal customer sales in order for you to earn downline bonuses. 13

14 S E C T I O N 2 EARN COMMISSIONS Keep Your IC Status by Remaining Active As long as you have at least 10 PBV in personal subscription billings in a given month you will be considered an active IC. If you are inactive for six consecutive months, you are subject to termination as an IC. If this occurs you can no longer receive any commissions, bonuses or other rights or benefits as an IC. In addition if termination occurs to any IC then the downline network of that IC moves up under the next IC upline in the line of sponsorship. Upon termination, regardless of the reason, the Company will no longer credit you with any sales made via your IC banner ads, text link ads, etc. since the embedded links will be deactivated. Hence any such IC ads/urls that you are using must be removed by you as soon as possible but no later than fourteen days after termination. If you are terminated as an IC (voluntarily or involuntarily), you must wait at least six months before reapplying as an IC. An exception occurs if you resign voluntarily while you are still an active IC for the purpose of becoming an IA instead. The details concerning this are provided in the next paragraph. An IC Later Becoming an IA Instead at Some Point Should you wish to function solely as an IA instead of an IC as long as you are still an active IC, you can apply to become an approved IA by completing the IA Application/Agreement and requesting your resignation as an IC on that form. Whether or not you are approved as an IA, your resignation as an IC will immediately be processed and you will no longer retain any privileges, including but not limited to, any compensation associated with being an IC. Any IC links/ ads you have will be deactivated and you must remove them as soon as possible but no later than 14 days after your resignation. If approved as an IA you will be notified and provided with new IA links. Any referred sales created via those new IA links will be credited as personal customer sales of your Sponsor (the person who originally sponsored you as an IC). You can then earn the normal IA referred sales commission stipulated in this document. If you had created a downline while you were an IC, that downline would be moved up under the next IC upon your resignation. If you had created any personal customers as an IC, those personal customers will become the personal customers of the immediate upline IC. That upline IC will now receive the associated RV/BV of the billings relating to those sales and he/she will be responsible for servicing those customers. If you had purchased a subscription as an IC for your own use, that subscription will still be considered a personal customer sale made by your Sponsor 14

15 S E C T I O N 2 EARN COMMISSIONS and so that Sponsor will retain the associated RV/BV credit for that sale even if you now are an IA. If you purchase a subscription for yourself after you became an IA, that subscription will still be considered a personal customer sale made by your Sponsor and he/she will receive the associated RV/BV credit. An IC Cannot Be an IA At the Same Time But Can Still Get Custom Links No IC or IA can have a financial interest in more than one income producing opportunity with YouDazzle. You can never hold an IC position and an IA position at the same time. Note that per the IC Policies and Procedures ICs are allowed, however, to apply to have a site and/or blog they personally own approved by the Company upon which they can place Company approved banner ads, and/ or text link ads that drive visitors to their official IC replicated site (or other Company approved URL) whereby the IC will receive credit for any sales made. Termination Occurs if an IC or an IA Tries to Manipulate the Tracking Immediate termination of an IC or an IA will occur if it is found, at the Company s sole discretion, that either person manipulated the tracking in some way as to divert sales so that commissions/bonuses and/or other payouts will go to that IC or IA instead of the appropriate IC or IA. ICs and IAs are never allowed to order subscriptions for their own use using their own IC links or their own IA links so that they receive credit for those sales instead of their respective Sponsors. This is just one example of manipulation and is prohibited. IAs Must Also Remain Active IAs must also abide by the active requirement. An IA who goes for any six consecutive month period without having produced at least one referred sale billing of at least 10 PBV in a given month, will be subject to termination as an IA. If terminated then the IA loses all of the privileges associated with being an IA including, but not limited to, the loss of any referral commissions. Upon termination, regardless of the reason, the Company will no longer credit an IA with any referred sales made via IA banner ads, text link ads, etc. as the links will be deactivated by the Company. Hence such IA ads/urls must be removed by a terminated IA as soon as possible but no later than fourteen days from termination. After a six month waiting period, an IA can reapply as either an IA or an IC. Read the IA Agreement and any IA Policies and Procedures for further details. 15

16 S E C T I O N 2 EARN COMMISSIONS The IAs of a Terminated IC Will Now Have Links Creating Referred Sales for the Next Upline IC When an IC has had his/her IC position terminated for any reason whether he/she decided to become an IA instead of an IC and resigned his/her IC position to do so, or whether he/she voluntarily or involuntarily got terminated for any other reason, the IAs of that terminated IC will now have their IA links credit any referred sales to the next upline IC. Should the Company require, in this instance, that the IAs change their links on their approved websites/blogs, then the Company shall notify those IAs regarding this and the date by which the links needs to be changed. An IA Wanting to Become an IC Instead At Some Point Should an IA wish to become an IC to increase and maximize his/her income potential, as long as the IA is active and has not been terminated, that IA can immediately apply to become an IC by completing the IC Application/Agreement, purchasing the IC Business Launch Pack (BLP) and getting approved as an IC by the Company. If approval is given, the IA must begin building his/her own customer base. He/she also has the option now of building a downline sales network and earning bonuses on their sales. The new IC will be automatically placed as a personally sponsored IC (Level 1) under the IC who sponsored him/her as an IA. Any subscription purchase made previously by the new IC for his/her own use when he/she was an IA will still be credited to the Sponsor as a personal customer billing. Should the new IC first purchase a subscription for himself/herself after becoming an IC, the same still applies. The Sponsor will receive the RV/BV credit for that subscription as a personal customer sale.* Any referred sales previously made when the new IC was an IA will still be credited to the IA whereby he/she will receive the IA payouts of 20% the first year of the subscription and 10% the second year and thereafter as long as he/she is active. Those customers, however, will remain the personal customers of the IC who sponsored that person as an IA so that same Sponsor will retain the full RV/BV credit associated with those billings for rank ascension, fulfilling Maintenance, the IC active requirement, etc. unless otherwise stipulated, in writing by the Company. The Sponsor will continue earning the difference between the max core commission he/she earns in a given month and the referred commission paid to the new IC who previously created the original referred sales when he/ she was an IA. * 16

17 S E C T I O N 2 EARN COMMISSIONS *Please note rare exemptions that could occur regarding who remains the Sponsor and receives credit in the respective IA/IC Agreement/Policies and Procedures. When this transition occurs, the new IC must no longer use any IA links but now can use the official IC links provided to him/her according to the usage allowed as written in the IC Policies and Procedures and/or provided in the IC back office. The IA urls/ads previously used when the IC was an IA must be removed as soon as possible but no later than fourteen days after the IA became an IC. Once the Company has decided to approved the new IC s Application/Agreement, the IA ads/urls will no longer give credit for any referred sales as the Company will deactivate the links. Special Incentive Programs: Active Requirements and All Terms/Conditions of the respective IC/IA Agreements Apply Anytime the Company offers any type of special incentive programs, the active requirement is always in force for the ICs and the IAs (unless specifically stated otherwise in an official Company document offline or online). In addition all terms and conditions of the IC and the IA Agreements apply along with the stipulated current Policies and Procedures in effect at the time of the operation of the special incentive programs along with any other stipulated Compensation Plan details provided in official Company documents. Any written waivers given for any period of time or for any individuals and/or special incentive programs or for any other reasons are not to be construed as waivers of any other part of these documents. Awards: Due to what could be limited supplies from our vendors and/or other special circumstances, concerning awards for any special IC/IA production incentive programs, the Company reserves the right to replace, at its sole discretion, other awards it deems to be of near or similar value. How You Earn Bonuses on Sales Made by Your Downline Network You must fulfill certain qualifications to first ascend to a Rank within a given month s time. If you fulfill a Rank s qualifications for the first time then you will achieve that Rank the same month that you fulfilled the qualifications. Bonuses will be paid to on you that Rank by the 25th of the following month. You keep the title associated with the highest Rank you have ever achieved. (Exceptions could occur per any violations of the IC Policies and Procedures.) However you are paid each month according to either a) the highest Rank you 17

18 S E C T I O N 2 EARN COMMISSIONS have initially achieved that month or b) the highest Rank you may have previously achieved and fulfilled Maintenance Requirements (Paid-as-Rank). Let s say you became an Executive Consultant in May, by the 25th of June, you would receive a payout report that shows your Rank as Executive Consultant in May and your Paid-As-Rank as Executive Consultant in May. In June, however, if you failed to fulfill the Maintenance Requirements to continue getting paid as an Executive Consultant and only fulfilled the Requirements for a Senior Consultant, your Rank for June would show that you are an Executive Consultant but your Paid-as-Rank would be Senior Consultant. Hence while you still are considered an Executive Consultant you would get paid in July on June s volume as a Senior Consultant. 18

19 3 ASCENSION TO RANKS

20 S E C T I O N 3 ASCENSION TO RANKS RANKS ASCENSION TO RANKS Qualifications to ascend to a rank have to be fulfilled within the qualifying month unless stipulated otherwise. An example is the cumulative qualifier. This particular qualifier pertains to the amount of PBV you produced from when you became an IC. Note that the PS designated qualifier below stands for personally sponsored as in a personally sponsored IC or an IC specified at a particular rank. When you get paid as a Managing Consultant through the Executive Consultant ranks, you will get paid downline bonuses on the PBV sales production of ALL ICs on up to 5 Levels of your downline network. So as long as you qualify to receive certain core L1-L5 bonuses, you receive those bonuses on ALL ICs without regard to the ranks they hold. If Jack, for example, were an L1 IC in your downline with 400 PBV in May and you were paid as a Managing Consultant on May s volume, you would earn the L1 Bonus of 6% on that 400 PBV which would equal $24.00 If Jack had sponsored 2 people and they had a total of 800 PBV that same month, that would be considered L2 PBV and you would earn the L2 Bonus of 5% which would be $

21 S E C T I O N 3 ASCENSION TO RANKS QUALIFICATIONS RECEIVE DOWNLINE BONUSES MAINTENANCE REQUIREMENTS MANAGING CONSULTANT 100 PBV 1 PS IC w/min. 20 PBV L1 6% L2 5% 100 PBV 1 PS IC w/min. 20 PBV SENIOR CONSULTANT 100 PBV (400 PBV Cumul.) 3 PS ICs each min. 100 PBV 1000 min. total PBV on L1-L3 L1 6% L2 5% L3 5% L4 4% 100 PBV 3 PS ICs each min. 100 PBV 1000 min. total PBV on L1-L3 EXECUTIVE CONSULTANT 200 PBV (1000 PBV Cumul.) 3 PS ICs each min. 100 PBV 3000 min. total PBV on L1-L3 L1 6% L2 5% L3 5% L4 4% L5 4% 200 PBV 3 PS ICs each min. 100 PBV 3000 min. total PBV on L1-L3 The PBV designated above (except for cumulative PBV) relates to the PBV of your personal customer orders that are billed in a given month. So if you made 1 annual subscription sale in a given month that has a PBV of 239 and that is your only subscription that is billed that month, then your total PBV that month would be 239. If you had 4 monthly subscriptions billed each with a BV of 23 and 1 annual subscription billed with a BV of 119, then you would have 211 PBV total that month. (As noted earlier, the cumulative PBV relates to the total PBV you have accumulated from the time you first became an IC.) 21

22 S E C T I O N 3 ASCENSION TO RANKS DIRECTOR RANK RECEIVE A GROUP BONUS RECEIVE A BONUS ON THE PRODUCTION OF ALL ICs IN YOUR GROUP QUALIFICATIONS RECEIVE MAINTENANCE REQUIREMENTS 1) At least 8,000 in PGBV* in the qualifying month and 2) You must have either fulfilled the initial qualifiers to get paid at the Executive Consultant rank that same month OR if you have previously qualified for that rank, fulfill the Maintenance for that Executive Consultant rank that same month you are trying to qualify to become a Director (or above) in rank. *A lower PGBV of only 3000 PGBV is required when you have at least one IC in your Group qualify to become a Director the same month you are trying to qualify for the Director rank. PGBV (Personal Group Bonus Volume) This qualifier includes the PBV of your personal customer billings in a given month and the PBV of the personal customer billings of everyone in your Group. The 4% Group Bonus is paid on the PBV of everyone under you in each leg in your downline until a Director is reached in a line of sponsorship. Each leg starts from a Level 1 IC down various lines of sponsorship. a 4% Bonus on the PBV of all ICs in your Group. This Group Bonus is available to all Directors and is exciting since it can extend your bonus payout far beyond Level 5. The Director s Group Bonus is added to the normal L1-L5 Bonuses that are paid. So if everyone on your Levels 1-5 were still in your Group because they had not become Directors yet, you would get paid the following percentages on the PBV of all ICs on those Levels: L1 6% PLUS 4% = 10% L2 5% PLUS 4% = 9% L3 5% PLUS 4% = 9% L4 4% PLUS 4% = 8% L5 4% PLUS 4% = 8% Level 6, Level 7, Level 8 and beyond = 4% is paid on the PBV of subscription billings each month made by all ICs in your Group. (If you had a Director on Level 4 in a line of sponsorship, then you would get the extra 4% just on Levels 1,2 and 3.) After you attain the Director rank, to keep getting paid the Director Group Bonus you must fulfill the Director Maintenance Requirements. These are the same as the Director rank qualifiers but the PGBV maintenance is When you earn the Director Group Bonus, you can also earn additional Director Leadership Bonuses. 22

23 S E C T I O N 3 ASCENSION TO RANKS DIRECTOR LEADERSHIP BONUSES Earn bonuses on the PGBV of Directors in your downline network You can earn the Director Leadership Bonuses by a) earning the Director Group Bonus in a given month and b) fulfilling the rank qualifiers associated with a specific Director Leadership rank or if previously qualified fulfill the Maintenance Requirements. These Leadership Bonuses are paid on the PGBV of up to four generations of your downline Directors PGBV. QUALIFICATIONS RECEIVE MAINTENANCE REQUIREMENTS To attain a Director Leadership rank, you must a) have earned the Director Group Bonus on a given month s production and b) fulfill the other Qualifications below that same month. *You must have the number of PS Directors (your PS ICs who are getting paid as Directors or above in rank) in the month s production in which you wish to qualify for these Director bonuses. If you, for example, want to get paid on May s production as a Senior Director, in that month, you must have a minimum of 3 PS Directors getting paid at least at the Director rank on the volume they produced in May. As long as you receive the Director Group Bonus on a certain month s volume and you have the designated production fulfilled attached to the PS Directors, then you will get paid on that month s volume at the highest Director Leadership rank for which you maintained that production. MANAGING DIRECTOR 1 PS Director* G1 4% G2 4% SENIOR DIRECTOR 3 PS Directors* G1 4% G2 4% G3 4% EXECUTIVE DIRECTOR 5 PS Directors* (2 must be earning at least as Managing Directors) G1 4% G2 4% G3 4% G4 4% 23

24 S E C T I O N 3 ASCENSION TO RANKS Here s How You are Paid on Generations of Your Directors If you get paid as a Senior Director on June s sales productivity and you have a total of 3 personally sponsored (PS) Directors (your G1 Directors) who are getting paid as Directors or above in rank on that month s volume, you can get paid on the PGBV of 3 Generations of your downline Directors. If you had an extra G1 Director, you would still get paid the G1 Bonus on that Director even if he/she was NOT getting paid on that month s volume as a Director and even if he/she was NOT personally sponsored by you. Example: Laura is your G1 Director. You personally sponsored her. Laura sponsored Mark who was not a Director yet and he sponsored Miranda who was a Director. Miranda would be considered your G2 Director. If you got paid as a Senior Director on June s production, then you would get paid the 4% G1 Bonus on Laura s PGBV and you would get paid the G2 Bonus of 4% on Miranda s PGBV. If at some point later on Mark became a Director, then he would be your G2 Director and Laura s G1 Director. Miranda would then be your G3 Director and Mark s G1 Director. What Occurs When Someone is No Longer an IC If someone in your downline no longer has the status as an IC, that IC s downline moves up underneath the next upline IC. That upline IC is provided with the customer accounts of the terminated IC. This is done so that there is always an IC who can service customers. Since that upline IC is now interacting with his/her new customer accounts, that IC will now get the RV credit for those accounts along with the associated BV credit. This would apply to all customer accounts of the terminated IC as defined in this compensation plan. Should the terminated IC continue paying for a subscription for himself/ herself as a customer, that payment would also be considered coming from a personal customer order of the upline IC so he/she would get that RV/BV credit. (Note that any previous cumulative PBV amount of the personal sales of a terminated IC would not count, however, towards the new upline IC fulfilling his/her cumulative PBV. The personal customer billings attached to any personal customer accounts that went to the upline IC WILL count as current subscriptions as long as they are still in effect.) 24

25 S E C T I O N 3 ASCENSION TO RANKS l In terms of fulfilling any PS Qualifiers or Maintenance Requirements for various Ranks or Paid-as-Ranks, when a downline moves up under the next upline IC due to a termination of an IC, those new Level 1 ICs are NOT counted as being PS ICs. RV/BV ASSIGNMENTS RV BV RV BV $19/MONTH $199/YEAR $39/MONTH $399/YEAR $99/MONTH $999/YEAR

26 4 FOUNDER S CLUB

27 S E C T I O N 4 FOUNDER S CLUB Founder s YOUDAZZLE FOUNDER S CLUB Enjoy the Prestige and Rewards of Being a YouDazzle Founder s Club Member! At YouDazzle, we re happy to recognize and reward those Independent Consultants (ICs) who work with us early on in the pre-launch phase to help kickstart YouDazzle. How do you become a member of this prestigious group? You must fulfill the qualifiers below during the Founder s Qualification Period (FQP), the time frame that is officially announced as such by the Company. The FQP is the same as the official pre-launch period and relates to all orders actually processed during that time (any refunded orders excluded). 27

28 S E C T I O N 4 FOUNDER S CLUB GOLD FOUNDER S CLUB MEMBER QUALIFICATIONS 1) Must become at least an Executive Consultant with at least 2000 PBV cumulative in personal customer billings during the FQP OR 2) Must have at least 3000 PBV cumulative in personal customer billings during the FQP RECEIVE * a retroactive 4% bonus paid to you on your PBV of your personal customer sales based on each month s production during the FQP that you qualified to get paid at least as a Director * the full 35% commission on the PRV of all your personal customer subscription billings each month during the first six months following the YouDazzle launch. * the exciting Founder Special Recognition Benefits awarded to Gold and Platinum Founder s Club Members (Note those excluded that are reserved specifically for the Platinum Founder s Club Members.) PLATINUM FOUNDER S CLUB MEMBER QUALIFICATIONS 1) Must become at least a Director with at least 2000 PBV cumulative in personal customer billings during the FQP OR 2) Become at least an Executive Consultant with at least 5000 PBV cumulative in personal customer billings during the FQP RECEIVE * a retroactive 4% bonus paid to you on your PBV of your personal customer sales based on each month s production during the FQP that you qualified to get paid at least as a Director AND receive the same 4% bonus (using the same criteria) on production during the first six months following the YouDazzle pre-launch period. * the full 35% commission on the PRV of all personal customer billings during the first full year following the YouDazzle prelaunch period. * all of the Founder Special Recognition Benefits awarded to Gold and Platinum Founder s Club Members including those exclusively for the Platinum Founder s Club Members. 28

29 5 GLOSSARY OF TERMS

30 S E C T I O N 5 GLOSSARY OF TERMS TERMS Glossary of Terms Active There is a Personal Bonus Volume (PBV) needed each month by an Independent Consultant (IC) for him/her to be considered active in a given month. If an IC does not have the minimum Personal Bonus Volume (PBV) in personal sales as delineated in the IC Compensation Plan for six consecutive months, then that IC is subject to being terminated immediately as an IC. Should that occur, the IC will lose all commissions, bonuses and any other rights and benefits accorded an IC. The same applies to any IA who does not make a referred sale of that same minimum PBV amount designated within the same time period. Bonus Volume (BV) Each service subscription offering sold by ICs to Customers is given a Bonus Volume (BV) amount. When an IC makes a personal sale to a Customer, that BV of what was sold becomes part of the IC s Personal Bonus Volume (PBV). There are minimum PBV amounts that must be achieved to receive certain commissions, attain a certain rank and/or to get paid at certain ranks. Typically downline bonuses are paid on the PBV created by sales to Customers made by an IC s downline network. The PBV can also be used by the Company to provide for other payouts that can increase commissions/bonuses. When an IA makes a referred sale, the BV of that referred sale is credited to both the IA and his/her IC when figuring the active requirement. The full RV/BV credit of that referred sale is given to the IC for fulfilling Rank qualifications, Maintenance Requirements, and other payouts unless specifically stated otherwise for a particular incentive program. (See Commissions below for more details). Commissions A range of commissions per the IC Compensation plan can 30

31 S E C T I O N 5 GLOSSARY OF TERMS be earned by an IC on his/her personal Customer sales. Commissions are calculated by multiplying the percentage earned times the Retail Volume (RV) assigned to each service sold. Typically the RV is identical to the fee paid for the service. A $39.99 monthly YouDazzle subscription service would have an RV of If an IC earned a 35% commission on that billing, then he/she would earn $13.99 in commission (35% x RV) each month. There could be times when YouDazzle provides additional special incentives that are paid based on the BV of sales made by an IC. In these cases the total commission could increase. An IA who makes a referred sale to his/her IC will earn 20% commission on the first year of a subscription and 10% the following years/months of renewals of that subscription. If an IC earned a max core commission of 35% on a given month s production and he/she had an IA who created a referred sale that same month, the IC would receive the difference between what the IA earned and the 35% earned by the IC. Cumulative PBV ( cumul. ) All of the PBV that is associated with an IC s personal Customer sales from the time he/she became an IC are included in his/her Cumulative PBV. (If an IC is allowed to take over Customer accounts from a Level 1 (L1) IC who is no longer an IC, the IC getting those accounts will only have the PBV that kicks in the month he/she takes over those accounts counted as part of his/her cumulative PBV. That IC is responsible for servicing those Customer accounts to help provide excellent Customer service). Current Subscriptions These subscriptions refer to the subscriptions personally sold by an IC to his/her Customers that are in effect whereby annual subscriptions have been sold and/or monthly subscriptions are being billed. If an IC sold 2 annual subscriptions in February and then had billings 3 months later in May for 4 monthly subscriptions he/she sold, then that IC would have a total of 6 current subscriptions in effect in May. If an IA made referred sales to an IC they are considered the IC s personal customer subscription sales. Hence they are included as the IC s current subscriptions as long as they are in effect. (Any refunds issued for a subscription could be excluded as a current subscription depending upon when the refund occurred). Customers When an IC begins selling subscriptions to Customers, those Customers are considered his/her personal Customers. These personal Customers of an IC include a) Customers who are not either ICs or IAs b) your personally sponsored ICs or your personally sponsored IAs who choose to also become Customers by purchasing subscriptions for their own use and c) 31

32 S E C T I O N 5 GLOSSARY OF TERMS any referred sales made to you from an IA as these result in personal Customers for you as well. As an IC you are credited with the Personal Bonus Volume (PBV) and the Personal Retail Volume (PRV) associated with your personal Customer billings for the subscriptions. If one of your IAs creates any referred subscription billings to you in given month, you will be credited with the RV/ BV associated with those billings. (See Commissions regarding how your IC commissions are impacted by those referred sales). Note that if a termination occurs of a personally sponsored IC, the next IC and his/her downline will move up under you to become your Level 1 IC. When this occurs, you will be allowed to take over his/her Customer accounts whereby you will now earn the RV/BV associated with those billings. However you become responsible for servicing those accounts as you must service all your personal Customer accounts. This involves answering questions from your Customers and other activities needed to nurture the Customer relationship in order to provide excellent Customer service. If the IC who was terminated was also your Customer and remains a Customer, then you will continue to receive the associated RV/BV credit for that billing. For certain personally sponsored (PS) qualifiers and maintenance requirements, the IC who moves up under you is NOT counted as PS (personally sponsored). Read the IC Compensation Plan for further details pertaining to what occurs when someone you personally sponsored is no longer an IC or an IA. Director Group Bonus When you ascend to at least the rank of Director and get paid at that rank or above, you can receive this special Group Bonus. A Director s Group consists of everyone in his/her Group down each line of sponsorship until someone who is at least at the rank of Director is reached. Hence anytime you get paid this Bonus you will receive this Bonus on the PBV of each person in your Group. Downline Your downline sale network includes any ICs you personally sponsor and anyone they sponsor down every line of sponsorship under you. It does not matter what ranks they hold. An IC can only sponsor other ICs into his/her downline sales network. An IA is not allowed to sponsor anyone as an IC or an IA. Generations Once you qualify to get paid at any of the Director Leadership Ranks, you can receive bonus payouts on generations of Directors (at any Director rank) in your downline. These bonuses allow you to receive a payout on the entire Personal Group Bonus Volume (PGBV) of your ICs who have attained the rank of Director. If you are getting paid as a Managing Director, you would be paid on the PGBV attached to each of two genera- 32

33 S E C T I O N 5 GLOSSARY OF TERMS tions of Directors in your downline. For example if you have a line of sponsorship whereby you sponsored Patty who sponsored Kevin who sponsored Rory who sponsored Phil who sponsored Katie who sponsored Danielle and so on and Patty is an IC and has not yet become a Director. Kevin is a Director. Rory, Phil and Katie are not Directors. Danielle is a Director. You would be paid the 1st Generation (G1) Bonus on the PGBV of Kevin (which includes his PBV and the PBV of his Group composed of Rory, Phil and Katie). You would be paid the G2 Bonus on Danielle s PGBV. Group When you become a Director you can earn a Group Bonus. Your Group is made up of everyone in a line of sponsorship below you until someone at least at the Director rank is reached. Hence your Group does not include any of your downline Directors or above in rank. Independent Affiliate (IA) This is a person/entity that has been approved as such by the Company after completing and submitting an Independent Affiliate (IA) Application/Agreement. IAs must be at least 18 years of age and must be sponsored by an IC in order to apply to become an IA. (The only exception is the initial core group of IAs who, along with ICs, helped to kickstart YouDazzle.) An IA cannot sponsor anyone. The focus of the IA is to create referred sales for his/her IC from a blog/site owned by the IA. The IA must have the site/ blog approved by the Company before placing any affiliate links/ads provided by the Company on them. Independent Consultant (IC) This is a person/entity that has been approved as such by the Company after submiting an Independent Consultant (IC) Application/Agreement. ICs must be at least 18 years of age. As an IC you can create Customers by selling YouDazzle subscription offerings to them. When you do so, you can earn commissions on your Customers subscription billings. An IC can also sponsor other ICs and help them to create Customers. When an IC does this, the IC can earn bonuses on the sales made by those Level 1 ICs. Those personally sponsored (PS) Level 1 ICs can then do the same whereby respective downline sales networks are created upon which ICs can earn various sales production bonuses. An IC can also sponsor Independent Affiliates (IAs). IAs create referred sales for the ICs by placing Company approved links/ads on their Company approved blogs/sites. These lead to landing pages/subscription purchase pages whereby both the IC and the IA are credited if a purchase is made. The referred sale commission is paid to the IA on the billings and the IC receives the difference from what the IA earned on various billings during a given month s production and the max core commission the IC earned that same month. 33

34 S E C T I O N 5 GLOSSARY OF TERMS Leg If you decide to create a downline sales network of ICs, you begin by sponsoring a person as a new IC. If that new IC decides to also create a downline, then that person becomes part of your downline network as well. The new IC you sponsored has actually started a leg under you that could contain various lines of sponsorship. If you sponsor another new IC, that person will start another new leg for you. Thus when you expand your downline sales network you could have many legs with each leg having various lines of sponsorship under them. Level When you begin building a downline by personally sponsoring someone to become a new IC, that person is considered your Level 1 (L1) IC. If that person sponsored someone then he/she would be your Level 2 (L2) IC. Let s say that Corrine sponsors Ben who sponsors Karin. Ben is an L1 IC to Corrine and Karin is an L2 IC to Corrine. Karin is also an L1 IC to Ben. If an IC loses his/her IC status, then an ICs Level position relative to yours can change. In the above scenario if Ben no longer were an IC, then Karin would move up under Corrine and be considered Corrine s L1 IC. (Karin s downline would also move up accordingly.) If Corrine was trying to fulfill certain personally sponsored (PS) qualifications/ maintenance requirements, Karin would NOT be counted as being personally sponsored (PS). (See Customers. ) Line of Sponsorship Should you decide to build a sales downline network of ICs and you start sponsoring new ICs, each IC forms various lines of sponsorship. Mary sponsors Ted who sponsors George and so on. That is one line of sponsorship starting from Mary. If Mary also sponsored Candy who sponsored Rose and so on, that would make up another line of sponsorship from Mary. Maintenance Requirements Once you ascend to a Rank for the first time, if you wish to continue getting paid at that Rank, these are sales requirements you must fulfill to do so. Paid-As-Rank Your Paid-as-Rank is important because this signifies which Rank you are being paid at on a given month s production. This is determined by the highest of the following: a) the highest Rank for which you first achieved that month or b) the highest Rank for which you previously qualified but now fulfilled Maintenance Requirements that month. Personal Bonus Volume (PBV) When there is a subscription billing from a sale you made to one of your personal Customers (whether you made it 34