Canada Plan Overview Effective January, 204
CANADA COMPENSATION PLAN OVERVIEW Effective January, 204 is earned at ACN only when customers are acquired. The ACN Opportunity has been designed to help you build a successful business of your own. ACN Independent Business Owners (IBOs) can earn money in two ways: Access your IBO Back Office for details on ACN s monthly, promotional bonuses designed to get new IBOs off to a fast start. Monthly residual commissions based on their personal and downline customers usage of ACN s services Weekly and Monthly Bonuses based on customer acquisition Positions & Qualifications STARTING POSITION: Every IBO starts as a Team Trainer (TT) Qualified Team Trainer (QTT) To become a Qualified Team Trainer you must have a minimum of 5 Customer and at least 3 Preferred Services. At least one of those Preferred Services must be outside of your household. 5 Customer and 3 Preferred Services EARNED POSITIONS: IBOs with a start date prior to January, 204 have until April, 204 to meet the below requirements for all positions. Executive Team Trainer (ETT) Executive Team Leader (ETL) 7 Customer and 3 Preferred Services** 5 Customer and 4 Preferred Services** Team Coordinator () Regional Director (RD) Regional Vice President (RVP)* ETT QTT ETT QTT Customer Customer Customer Customer Senior Vice President (SVP) RVP QTT RD RVP ETT acquire 7 Customer and 3 Preferred Services and QTT in 2 separate legs at any level acquire 5 Customer and 4 Preferred Services and ETT in 3 separate legs at any level Customer in 3 separate legs in 2 separate legs at any level and a third leg with Customer in 4 separate legs at any level Minimum Monthly Downline Billings $50,000 (Limit $75,000 per leg) PLATINUM RVP Minimum Monthly Downline Billings: $300,000 (Limit $50,000 per leg) Must have or above in 6 separate legs, including at least 2 RVP legs and RD leg Minimum Monthly Downline Billings: $500,000 (Limit $250,000 per leg) S AND ABOVE MUST MAINTAIN 5 CUSTOMER POINTS AND 4 PREFERRED SERVICES** TO RECEIVE EARNED POSITION COMPENSATION. *RVP Qualifications apply to new RVPs promoted beginning April, 204. RVPs as of March 3, 204, have until January, 205, to meet these qualifications. Platinum RVP is a designation that applies to North American IBOs only. **At least one of the Preferred Services must be outside of your household. Success as an ACN Independent Business Owner is not guaranteed, but rather influenced by an individual s specific effort. Not all IBOs make a profit and no one can be guaranteed success as an ACN IBO. ACN s Plan is subject to change without notice at ACN s discretion and for any reason.
CUSTOMER POINT SYSTEM & COMMISSIONABLE REVENUE The only way to earn income at ACN is through the acquisition of customers; therefore all IBOs must acquire customers in order to meet qualifications and advance through ACN s earned positions. ACN utilizes a customer point system for each of its products and services. Core Services provide long-term residual income. YBA counts as 2 POINTS AND PREFERRED CUSTOMER for the life of your subscription! PHONE SERVICES & BUNDLED RESIDENTIAL Digital Phone Service Phone Adapter Transfer Phone Number H 3 3 00% Life of Customer Phone Adapter New Phone Number H 3 2 00% Life of Customer Video Phone 3 2 00% Life of Customer ACN Advantage Local and Long Distance H 3 3 Long Distance 00%; Local 50% Life of Customer Long Distance H 3 2 00% Life of Customer High Speed Internet bundled with ACN Phone Service ACN View Product / Service BUSINESS Digital Phone Service DigitalTalk Express Digital Phone Service for Home Office & Small Business H 3 BusinessTalk Local and Long Distance H 3 High Speed Internet bundled with ACN Phone Service Core Preferred Customers Customer 3 Additional Point 00% Life of Customer Point Pay As Go - 0 st Line = 3 2nd Line = 5 3rd Line = 7-2 Lines = 3 3-4 Lines = 5 5-6 Lines = 7 7+ Lines = Additional Point Per Line Excludes Data/Fax Line Monthly Commissionable Revenue* 00% Life of Customer 00% 00% Duration of and Commissions Life of Customer Life of Customer 3 Additional Point 00% Life of Customer Telus Wireless with MRC Greater than $35/month New Accounts (Individual or Air Card) 3 Single Line Monthly Plan 2 $40 2-3 years WIRELESS Telus Wireless with MRC Less than $35/month New Accounts (Individual or Air Card) Renewals/Upgrades (Customers initially acquired by an ACN IBO) Single Line - Monthly Plan Point $5 Point $5 00% Commissionable 2-3 years year Renewals/Upgrades (Customers not initially acquired by an ACN IBO) 0 $5 50% Commissionable year *Commissionable revenue is billed revenue less taxes, surcharges and an allowance for bad debt. ACN reserves the right to reduce commissionable revenue by a percentage factor for promotional plans, products, negotiated pricing or certain services. Commissionable Billing for some products is a fixed amount. IBOs receive a percentage of these amounts each month depending on where they fall in the Plan. If a r Business Assistant subscription was used for CAB or AB qualifications and is cancelled within the first 60 days, the bonus will be retracted. 2
CUSTOMER POINT SYSTEM & COMMISSIONABLE REVENUE The only way to earn income at ACN is through the acquisition of customers; therefore all IBOs must acquire customers in order to meet qualifications and advance through ACN s earned positions. ACN utilizes a customer point system for each of its products and services. Product / Service Core Preferred Customers Customer Monthly Commissionable Revenue* Duration of and Commissions MERCHANT SERVICES Anovia Merchant Sevices with Over $3,000 Processing/month Anovia Merchant Services - New Merchants/ Merchants Processing Less Than $3,000/month H 3 3 New & Up to $,500/month = Point $,500 to $3,000/month = 2 00% Paid on Anovia Revenue for the Life of Customer TELEVISION Bell TV 3 2 $35 2 years 2 SECURITY & AUTOMATION Vivint Home Security & Automation (Residential) Reliance Protectron - Home Security & Automation H 3 3 00% 42 months 3 2 Residential Basic or Takeover = $30 Stay Connected or Home Automation = $40 Business Plan =$40 3 years ENERGY NATURAL GAS OR ELECTRICITY Planet Energy Residential H 3 Ontario Natural Gas & Electricity = 2 Ontario Natural Gas or Electricity = Point per Service British Columbia Natural Gas = 2 Manitoba Natural Gas = 2 50%** Life of Customer Planet Energy Small Business (All Provinces) H 3 2 per Service 50%** Life of Customer Planet Energy Big Business (All Provinces) H 3 2 per Service up to 50%** Life of Customer Reliance Water Heater Rental (Ontario) Point per Service 50%** Life of Customer PREMIUM TECHNICAL SUPPORT Premium Technical Support (Residential or Business) Residential: PC = Point Up to 3 and up to 5 PCs = 2 Business: PC = Point Up to 3 and up to 5 PCs = 2 Up to 7 and up to 0 PCs = 3 00% Life of Customer *Commissionable revenue is billed revenue less taxes, surcharges and an allowance for bad debt. ACN reserves the right to reduce commissionable revenue by a percentage factor for promotional plans, products, negotiated pricing or certain services. Commissionable Billing for some products is a fixed amount. IBOs receive a percentage of these amounts each month depending on where they fall in the Plan. **IBOs will receive commissions on 50% of the customers actual energy usage, excluding bad debt, taxes and surcharges. Energy rates subject to fluctuation. ACN reserves the right to cap commissionable billing at $/therm and 3.5 /kilowatt hour. Commissionable revenue percentage may be lower for Large Business accounts depending on rates and terms offered to customers. When combined with another energy product, Water Heater Rentals are 00% commissionable. 2 IBOs will receive commissions on 50% of the customers actual usage excluding taxes and surcharges. 3
MONTHLY RESIDUAL COMMISSIONS Over time, the majority of your compensation will come from the residual income of your customers monthly billings. Customer acquisition is the fuel for your business, creating long-term lasting income and by teaching other people how to do the same thing, you will build residual income for yourself. Personal Commissions As you acquire your own, personal customers, you qualify to earn between % and 0% of their monthly bills. This percentage is based on your total number of Customer : -29 Customer = % 30-39 Customer = 3% 40-49 Customer = 5% 50+ Customer * = 0% Example: (Average $40 Monthly Bill) 40 Customer = $40/month personal commission 20 Customers (totaling 40 Customer ) x $40 bill x 5% = $40/month personal commission 60 Customer = $20/month personal commission 30 Customers (totaling 60 Customer ) x $40 bill x 0% = $20/month personal commission * 60+ Customer will be required starting July, 204 Overriding Residual Commissions Schedule of commissions earned from customer acquisition in your organization and Personal Customer required: Commissions by Service Levels Telecommunications and Essential Services Energy for Large Business QUALIFICATIONS FOR EACH COMMISSION LEVEL Personal Customer Personal -0 % 2 % See box above 2 3 4 5 6 7 Open Line RVP st Generation RVP 2nd Generation RVP Open Line SVP st Generation SVP RVP /2% % /2% /2 % 3 % 5 % 8% Platinum RVP 3% 2% /2% 2 % % /2 % /2% /2 % 0 20 40 A Platinum RVP and RVP earn commissions on all customers below 7th level to an unlimited number of levels to the next RVP s 7th level. For energy large business, this applies for customers below the 4th level. A SVP earns commissions on all customers below 7th level to an unlimited number of levels to the next SVP s 7th level. For energy large business, this applies for customers below the 4th level. Platinum RVP is a designation that applies to North American IBOs only. Complete customers must be received by 2:00pm ET on the first Friday of the month in order for IBOs to qualify for commissions. Commissions are released on the first business day following the third Friday of each month. Commissions are paid the third month after the close of the month the customer is billed. Commissions on large commercial accounts and customers acquired by Affinity programs (such as not-for-profit organizations) may be paid according to a custom commission schedule that will be determined at the time the program/contract is completed. Starting July, 204, IBOs will need to maintain 60 Customer to earn 7th Level Commissions. 4
WEEKLY AND MONTHLY BONUSES The second way IBOs can earn compensation is through weekly Customer Acquisition Bonuses (CABs) and monthly Team Customer Acquisition Bonuses (ABs). Customer Acquisition Bonuses CABs Customer Acquisition Bonuses (CABs) are paid when your newly sponsored Team Trainers become qualified within 30 days of their start date. In order to count for qualifications, all new customers must show a complete status on the IBO s Personal Customer List. A customer will show a complete status when all the necessary information has been received and processed by ACN. CABs will be paid 4 days following the new TT s start date once they qualify within their first 30 days. and Above CABs: Team Coordinators and above can earn CABs on all the new QTTs in their open line and not just the QTTs they directly sponsor. Beginning April, 204: In order to earn CAB and AB Bonuses, s and above need to maintain 5 Customer and 4 Preferred Services. TIP: An IBO s open line consists of all the IBOs in their organization down to the next IBO at their same earned position or higher. Customer Acquisition Bonus Schedule RVP SVP Open Line = $50 st generation = $20 Open Line = $30 st generation = $5 Open Line = $30 st generation = $0 RDs, RVPs and SVPs can earn CABs on newly Qualified Team Trainers in their open line. Remember: is earned at ACN only when customers are acquired. ACN reserves the right to retract the payment of any bonus or commis sion if it is found that a customer used to qualify for a bonus or a certain commission level was not a valid billing customer. 5
TEAM CUSTOMER ACQUISITION BONUSES (ABS) Monthly Team Acquisition Bonuses (ABs) are paid to ETTs and above for helping new TTs in your open line get qualified within their first 30 days and vary from $00 to $50,000 depending on your earned position and the number of new, open line, QTTs in a calendar month. Beginning April, 204: In order to receive earned position compensation, s and above need to maintain 5 Customer and 4 Preferred Services.* EXECUTIVE TEAM TRAINER (ETT) AB Anyone who is an ETT during a month of this promotion is eligible. An ETT who has at least 2 open line TTs, whose start dates are during a calendar month of this promotion, and each of those TTs are qualified () within 30 days of their start date will receive a $00 BONUS! Amount of AB EXECUTIVE TEAM LEADER (ETL) AB Anyone who is an ETL during a month of this promotion is eligible. An ETL who has at least 3 open line TTs, whose start dates are during a calendar month of this promotion, and each of those TTs are qualified () within 30 days of their vstart date will receive a $ BONUS! Amount of AB $00 $500 $,000 $,500 $2,500 $3,000 2 QTTs 4 QTTs 6 QTTs 9 QTTs 2 QTTs 5 QTTs $ 3 QTTs $750 5 QTTs $,500 0 QTTs $2,500 5 QTTs $3,000 20 QTTs $4,000 25 QTTs $5,000 30 QTTs $6,000 35 QTTs $7,000 40 QTTs TEAM COORDINATOR () AB Anyone who is a, RD, RVP or SVP during a month of this promotion is eligible. A who has at least 5 open line TTs, whose start dates are during a calendar month of this promotion, and each of those TTs are qualified () within 30 days of their start date will receive a $500 BONUS! Amount of AB REGIONAL DIRECTOR (RD) AB Anyone who is a Regional Director during a month of this promotion is eligible. A RD who has at least 0 open line TTs whose start dates are during a calendar month of this promotion, and each of those TTs are qualified () within 30 days of their start date will receive a $,000 bonus! Amount of AB $500 5 QTTs $,500 0 QTTs $3,000 $5,000 $6,500 $8,000 $0,000 $2,000 $25,000 5 QTTs 20 QTTs 25 QTTs 30 QTTs 40 QTTs 50 QTTs 00 QTTs $,000 0 QTTs $2,500 20 QTTs $4,000 30 QTTs $6,000 40 QTTs $0,000 50 QTTs $5,000 75 QTTs $20,000 00 QTTs $30,000 50 QTTs REGIONAL VICE PRESIDENT (RVP) AB Anyone who is a RVP or SVP during a month of this promotion is eligible. A RVP who has at least 25 open line TTs, whose start dates are during a calendar month of this promotion, and each of those TTs are qualified () within 30 days of their start date will receive a $2,000 BONUS! Amount of AB $2,000 25 QTTs $5,000 50 QTTs $7,500 75 QTTs $0,000 00 QTTs $5,000 50 QTTs $25,000 250 QTTs $50,000 500 QTTs RVPs will earn the higher of the RVP ABS or RD ABs each month. RVP ABS will continue to be calculated weekly and any adjustment for RD ABS will occur at least every two weeks. For Example: An RVP with an RVP open line of 00 QTTs ($0,000 AB) and RD open line of 75 QTTs ($5,000 AB) would get paid on the RD open line of $5,000 as this is the higher ABs. s and above with QTTs in other countries will earn ABs prorated by the number of QTTs in each country. ABs will be paid 4 days following the new Team Trainer s start date, once they qualify within their first 30 days. Bonus payments will be calculated and paid weekly and reconciled after the close of the applicable calendar month. In order to receive ABs, ETTs and ETLs must maintain the minimum number of personal customers to be qualified as a Team Trainer. *At least one of the Preferred Services must be outside of your household. 6