Building Your melaleuca Business - Please enter password to ...

Building Your melaleuca Business - Please enter password to ... Building Your melaleuca Business - Please enter password to ...

deliveringwellness.com.au
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02.12.2012 Views

comPensation summarY Product Introduction Commission. As the Enroller, you earn up to 27% commission on the first 150 Product Points purchased by your personal customers when they shop in their first month (Select Pack and BackupOrders excluded). If you are the immediate Marketing Executive in the customer’s support team, you earn 7%. If you are the Enroller, you earn 20%. If you are both, you will earn 27%. New Customer Bonus: Active Directors and above: After enrolling their first Preferred Customer in a month, Active Directors and above receive $25 for every subsequent Preferred Customer who they enrol and help to place a minimum Product Point order during that month . Active Directors III and above: After enrolling 2 Preferred Customers in a month, Active Directors III and above will receive $25 for the 2nd, 3rd, 4th, 5th and subsequent Preferred Customers enrolled in that month by their personally enrolled Marketing Executives who are at or below Director II status . For the purposes of these bonuses, new Preferred Customers must place a minimum Product Point order (i.e. excludes customers who receive a Select Pack or Backup Order) in the month of enrolment and remain active for at least 2 consecutive months after the month of enrolment . Commission will be paid in the third consecutive month of enrolment . Definition you need to know: “Quality Customer Enrolment” A quality-enrolled customer will have a Membership Kit on file . All necessary paperwork must be received by Melaleuca, and they will have fulfilled their monthly Product Point commitment by placing an order in their first month of enrolment. (Receiving a Backup Order or Select Pack is not a quality customer.) Personal Enrolled Customer Commission. As an active Director, your commission paid on your personal customers’ Product Point purchases increases to 14% (with 8 to 19 personal customers). When your active personal customers increase to 20, you earn 20% on all Product Points generated by those customers each month . Organisation Commissions. Each month that you qualify as an active Marketing Executive, you will receive a commission of 7% on the first 150 Product Points purchased by each customer in your Marketing Organisation . You earn the Organisation Commission from customer purchases after the customer’s month of enrolment. To qualify for commissions in the customer’s second and third months, the customer must shop and place a minimum Product Point order . Organisation Commissions are calculated on a worldwide basis as follows: Product Points are combined for all countries and the 7% Organisation Commission is calculated in US dollars. The resulting commission is then exchanged into the currency where the Marketing Executive resides . The company reserves the right to alter from time to time the exchange rate modifier based on prevailing exchange rates . Career/Value Pack Commission. Marketing Executives earn $50 on the Value Packs and $90 on the Career Packs purchased by their new customers in the customer’s first two months following the month of enrolment . Customers may purchase up to two packs, but the commission is only paid on the first pack purchased . A Marketing Executive may earn the Career/Value Pack Commission if they are designated as the “Assist” on the Independent Marketing Agreement form of a new Marketing Executive who is not their personal customer . One-Time Advancement Bonuses. When you advance to Director and each Director status through Director IX for the first time, you earn a one-time advancement bonus beginning with $150 at Director and increasing for each status to $1,500 at Director IX . When you advance to Senior Director for the first time you receive a one-time advancement bonus of $2,000. However, when you advance to Senior Director for the first time in Pacesetter time frame, your advancement bonus is doubled to $4,000! As you continue to advance, the bonuses also continue to get larger and larger . When you advance for the first time to Senior Director II through Senior Director IX, you receive a full 5% of your Personal Enrolee Group volume as a one-time bonus, or if you advance in Pacesetter time frame your advancement bonus is doubled to a full 10% of your Personal Enrolee Group volume! When you advance to Executive Director through Corporate Director IX you receive 10% of your Personal Enrolee Group volume as a one-time bonus . When you advance to Presidential Director, you receive a onetime bonus of $1,000,000. Advancement Bonus Payouts. Marketing Executives are paid a one-time Advancement Bonus or Pacesetter Bonus in the month they advance to Director for the first time . As Marketing Executives advance from Director to Director II and beyond, they are paid an Advancement Bonus for each new high status they achieve . Marketing Executives will be paid the Advancement Bonus after they have held that status for 3 consecutive months . Pacesetter Director Bonuses. When a new enrolee advances to Director in Pacesetter timeframe, they earn a one-time Pacesetter bonus if: The new enrolee (who earns $300) 1. becomes a preferred customer, and 2. purchases a value or career pack, and 3. becomes a Director within the first two calendar months following the month of enrolment. Then as you advance through the Director ranks in Pacesetter time frame, you earn one-time bonuses equal to two times the one-time advancement bonus at each status . Pacesetter Mentoring Bonus: As a Pacesetter Enroller, each time one of your personal Marketing Executives advances in status Director through to Senior Director in Pacesetter time, LEADERSHIP COMPENSATION BUILDING YOUR MELALEUCA BUSINESS 46

you earn a One-Time bonus. To qualify, the Pacesetter Enroller must have an active status equal to or higher than the status of the advancing personal Director . Director Development Incentive. In any month in which a Director or above develops a new personal Director, the Leadership Point requirements for status will be waived for that month and the following two months as long as the personal Director remains active . Directors III and above will earn 10 or 15 Leadership Points for developing a new Director . 47 BUILDING YOUR MELALEUCA BUSINESS LEADERSHIP POOLS Formula Components Monthly Car Bonus. Move your business to Senior Director, then select your new vehicle and let Melaleuca start buying it for you . Active Senior Directors receive $800 a month towards a vehicle valued in excess of $25,000. Active Executive and Corporate Directors receive $2,000 a month towards a vehicle valued in excess of $50,000 or 2x $25,000. Your Melaleuca vehicle must be new or nearly new (less than 24 months old). Each month, Melaleuca pays total commissions equal to 51% of total company Product Points. In any month where the payout is less than 51%, the difference between total Product Points and commissions paid out is added to the Leadership Pools. Active Directors III and above can participate in a monthly Leadership Pool. Directors III through IX, Senior Directors, and Executive/Corporate Directors share in the pools according to the Pool Formula . + = + “The Pool Formula” (Average Retention Index *Average Net Preferred Customer Growth Active Status Factor) Average Leadership Points Pool Points (used to calculate your share of the total Pool) 1) Average Retention Index: Your five month Average Retention Index (ARI) is an average of the percentages of active Customers in your Organisation from the past five months . For example: Number of Customers Enrolled Calculating your ARI Active Preferred Customers ARI Jun Jul Aug Sept Oct Jun 26 25 22 21 19 17 17÷26 = 65.4% Jul 28 27 26 21 20 20÷28 = 71.4% Aug 25 24 23 20 20÷25 = 80% Sept 28 26 24 24÷28 = 85.7% Oct 30 30 30÷30 = 100% The ARI is multiplied as follows: 5 mth ARI = 80.5% ARI 80+ 75+ 65+

you earn a One-Time bonus. To qualify, the Pacesetter Enroller<br />

must have an active status equal <strong>to</strong> or higher than the status of<br />

the advancing personal Direc<strong>to</strong>r .<br />

Direc<strong>to</strong>r Development Incentive. In any month in<br />

which a Direc<strong>to</strong>r or above develops a new personal Direc<strong>to</strong>r,<br />

the Leadership Point requirements for status will be waived<br />

for that month and the following two months as long as the<br />

personal Direc<strong>to</strong>r remains active . Direc<strong>to</strong>rs III and above will<br />

earn 10 or 15 Leadership Points for developing a new Direc<strong>to</strong>r .<br />

47 BUILDING YOUR MELALEUCA BUSINESS LEADERSHIP POOLS<br />

Formula Components<br />

Monthly Car Bonus. Move your business <strong>to</strong> Senior<br />

Direc<strong>to</strong>r, then select your new vehicle and let Melaleuca<br />

start buying it for you . Active Senior Direc<strong>to</strong>rs receive $800 a<br />

month <strong>to</strong>wards a vehicle valued in excess of $25,000. Active<br />

Executive and Corporate Direc<strong>to</strong>rs receive $2,000 a month<br />

<strong>to</strong>wards a vehicle valued in excess of $50,000 or 2x $25,000.<br />

<strong>Your</strong> Melaleuca vehicle must be new or nearly new (less than<br />

24 months old).<br />

Each month, Melaleuca pays <strong>to</strong>tal commissions equal <strong>to</strong> 51% of <strong>to</strong>tal company Product Points. In any month where the payout is less<br />

than 51%, the difference between <strong>to</strong>tal Product Points and commissions paid out is added <strong>to</strong> the Leadership Pools. Active Direc<strong>to</strong>rs III<br />

and above can participate in a monthly Leadership Pool. Direc<strong>to</strong>rs III through IX, Senior Direc<strong>to</strong>rs, and Executive/Corporate Direc<strong>to</strong>rs<br />

share in the pools according <strong>to</strong> the Pool Formula .<br />

+<br />

=<br />

+<br />

“The Pool Formula”<br />

(Average Retention Index *Average Net Preferred Cus<strong>to</strong>mer Growth Active Status Fac<strong>to</strong>r)<br />

Average Leadership Points<br />

Pool Points (used <strong>to</strong> calculate your share of the <strong>to</strong>tal Pool)<br />

1) Average Retention Index: <strong>Your</strong> five month Average Retention Index<br />

(ARI) is an average of the percentages of active Cus<strong>to</strong>mers in your Organisation<br />

from the past five months .<br />

For example:<br />

Number of<br />

Cus<strong>to</strong>mers<br />

Enrolled<br />

Calculating your ARI<br />

Active Preferred Cus<strong>to</strong>mers ARI<br />

Jun Jul Aug Sept Oct<br />

Jun 26 25 22 21 19 17 17÷26 = 65.4%<br />

Jul 28 27 26 21 20 20÷28 = 71.4%<br />

Aug 25 24 23 20 20÷25 = 80%<br />

Sept 28 26 24 24÷28 = 85.7%<br />

Oct 30 30 30÷30 = 100%<br />

The ARI is multiplied as follows:<br />

5 mth ARI =<br />

80.5%<br />

ARI 80+ 75+ 65+

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