Compensation Plan Compensation Plan Allied Global Network.
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Transcript of Compensation Plan Compensation Plan Allied Global Network.
Compensation Plan • Allied Global Network
Compensation Plan
ADRAutomatic Delivery Rewards
• Monthly automatic delivery with the opportunity to earn reward points
Distributor• A person engaged in the distribution of Nu Skin’s products • Distributors purchase products at wholesale price
Active Distributor• A distributor with an active ADR and minimum 100 PSV per month• Eligible to receive commission checks from Nu Skin
Retail Customer • A person who purchases products at retail price
Preferred Customer• A person who purchases products at wholesale price by maintaining an active ADR
PVPoint Value
• The point value assigned to a product • Approx 1 PV = 1 Wholesale Dollar
PSVPersonal Sales Volume
• The total point value of purchases by you and your retail customers
GSVGroup Sales Volume
• The total sales volume of all the customers and distributors in your group• PSV is included in your GSV
Basic Compensation Terms
Compensation Plan • Allied Global Network
Compensation Plan • Allied Global Network
Retail Markup
Mark up from Retail Customers (up to 30%)
ExampleAgeLoc Vitality
Retail = $66.50- Wholesale = $50.00 _____________________= $16.50 paid to Distributor
Fast Start Bonus
Earn a bonus each time you sell a fast-start product
package
ExampleGalvanic Spa Package Retail = $450Wholesale = $360
You will receive a $50 bonus for the sale of this package.
If sold at retail price, you will earn an additional $90 in retail profits
5% of L1 Sales
5% commission on all Level 1 Sales Volume*
*MUST be an active distributor to earn commissions (min 100PSV plus participate in ADR)
How are Distributors Paid?
YOU100 PSV
ADR
D D PC
RC
RC = Retail CustomerPC = Preferred CustomerD = Distributor
RC
D PC D
DL1
3 Month Qualification Program
Executive Qualification Fast-Trak
• 1 Month Executive Qualification = GSV 4500 in one month
• 2 Month Executive Qualification = GSV 4500 in 2 months.(First month (LOI) – must have minimum of GSV 1000)
How Do I Become an Executive?
Month 1 (LOI) Month 2 (Q1) Month 3 (Q2)
PSV 100 PSV 100 PSV 100
ADR ADR ADR
GSV 1000 min GSV 1500 min GSV 2000 min
Compensation Plan • Allied Global Network
Executive Monthly Maintenance: PSV 100, ADR, GSV 2000
Circle Group
Retail CustomersPreferred Customers
DistributorsQualifying Executives
B Breakaways
Downline Executives
How are Executives Paid?
Compensation Plan • Allied Global Network
9%-15% of Entire Group Volume
9% =2,000-2,999 GSV
10% = 3,000-4,999 GSV
11% = 5,000-9,999 GSV
12% = 10,000-14,999 GSV
13% = 15,000-25,000 GSV
14% = 25,000-49,999 GSV
15% > 50,000 GSV
$2,000 9%
$3,000 10%
$5,000 11%
$10,000 12%
$15,000 13%
$25,000 14%
$50,000 15%
Circle Group Volume = GSVYou are paid 9-15% on your GSV
You are paid up to 5% on each Executive’s GSV
YOU
EXECGeneration 1 (G1) 5% of GSV
How are Executives Paid?
Circle Group Executive Breakaways
Example: GSV 4000 x 10% = $400Minimum GSV 3000 to earn 5%Less than GSV 3000 earns 2.5%
Compensation Plan • Allied Global Network
YOU
Method 1: Depth MaximizerStandard Calculation
Room A
Room B
Room A“Extra 5% Bonus” + 5%
Room BOnly pays on G1
“Double G1 Bonus”
10%
Wealth Maximizer
Nu Skin calculates your commission in 2 ways and pay you the higher amount.
Method 2: Volume Maximizer* must have minimum GSV 3000
Compensation Plan • Allied Global Network
$2,000 9%
$3,000 10%
$5,000 11%
$10,000 12%
$15,000 13%
$25,000 14%
$50,000 15%
$2,000 9%
$3,000 10%
$5,000 11%
$10,000 12%
$15,000 13%
$25,000 14%
$50,000 15%
Compensation Plan Summary
Compensation Plan • Allied Global Network
Distributor
Retail Mark Up
Fast Start Payment
5% of All Level 1 Sales
Executive
Room A9%-15% of GSV
9% =2,000-2,999 GSV
10% = 3,000-4,999 GSV
11% = 5,000-9,999 GSV
12% = 10,000-14,999 GSV
13% = 15,000-25,000 GSV
14% = 25,000-49,999 GSV
15% > 50,000 GSV
Breakaway
Room ABreakaway Bonus
5% ofExecutive Breakaway’s
GSV
(payable down to 6 Generations)
Company Statistics
Compensation Plan • Allied Global Network
Nuskin has paid over $7.5 Billion in commissions to date.
More than 800 Executives have earned over $1 Million in commissions.
Every 5 days, another Executive joins the Million Dollar Circle.
10% of all Executives will make it to Ruby.
50% of Rubies will make it to Blue Diamond.
On average, it takes 3 years to reach Blue Diamond.
95% of those who continue in the business for 10 years make it to Blue Diamond.
Compensation Plan • Allied Global Network
TitleMonthly Average
Commission Income at Each Level for 2009
Annualized CommissionsAverage Percentage of
Executive-and-Above Level Distributors
Active Distributor Earning a Check (Non-Executive) $65.00 $778.00 N/A
Qualifying Executive 224.00 2,683.00 N/A
Executive 467.00 5,607.00 57.19%
Gold Executive 832.00 9,980.00 19.78
Lapis Executive 1,344.00 16,133.00 12.08
Ruby Executive 2,681.00 32,170.00 4.45
Emerald Executive ,4665.00 55,980.00 1.98
Diamond Executive 10,342.00 124,104.00 1.65
Blue Diamond Executive 44,606.00 535,276.00 2.87
The following table shows the average commissions paid in 2009 to U.S. distributors at the various levels of the Company’s Sales Compensation Plan, including the average percentage of total Active Distributors and the average percentage of Executive-and-above distributors that earned commissions at each level. These figures do not include retail markup income.The average commission paid to U.S. Active Distributors each month was $125.71, or $1,508.53 on an annualized basis. In 2009, the average monthly commission paid to U.S. Active Distributors who earned a commission check was $843.46, or $10,121.52 on an annualized basis. Note that these figures do not represent a distributor’s profit, as they do not consider expenses incurred by a distributor in the promotion of his/her business and do not include retail markup income. On a monthly basis, an average of 14.90% of U.S. Active Distributors earned a commission check. Active Distributors represented an average of 34.13% of total distributors.