LIVELITE COMPENSATION PLAN

Transcription

1 COMPENSATION PLAN

2 LIVELITE COMPENSATION PLAN LivElite International believes that life should not be defined by limitations. We encourage our Independent Distributors to share their passion for LivElite brands and products to create a business and life that rewards you as you help others do the same. As you share with others, we provide state-of-theart tools, websites, training, and financial compensation to give you every opportunity to learn, grow, and succeed as a LivElite Distributor. We have combined the power of multiple payment structures and bonus plans to provide an exceptional financial opportunity as you help others live their lives to the fullest. First, we leverage the long-term, proven stability of the Unilevel structure. This creates financial motivation for growing and nurturing a team. Next comes the team building dual system, or Binary structure, that promotes teamwork and overall organizational growth. Combine this with commissions, bonuses and awards, and additional incentives, and you get a plan that works effectively to create both immediate financial rewards and long-term residual income. Our compensation plan is a global plan, allowing you to participate in every market around the world where LivElite is officially open for business. As the company expands its reach, you can expand your business and take advantage of the global marketplace. We are committed to your success. We want to reward you for your efforts and see you reach your ultimate potential. LivElite International Compensation Plan I 1

3 THE BASICS Before beginning, you need to familiarize yourself with some of the basic terms and concepts. These will help you better understand the different aspects of the LivElite compensation plan. Distributor A Distributor is anyone who joins LivElite by paying a Distributorship fee and agreeing to the LivElite Policies and Procedures. Distributors have exclusive benefits and responsibilities such as special Distributor (wholesale) pricing and the opportunity to participate in the LivElite compensation plan. The size of a Distributors business network and income will directly correspond to the Distributor s personal effort and results. Customer A Customer is anyone who purchases LivElite products either directly from a LivElite Distributor or from a Distributor s website. At this time, he or she is not interested in becoming a Distributor of LivElite, they only want to benefit from the LivElite products. Any referrals from Customers are directed to their respective LivElite Distributor. Recruiter A recruiter is the person who introduced you to the LivElite opportunity. This person is responsible for making sure all their personally recruited Distributors receive adequate training and support. Recruiters should also understand the goals of his or her personally recruited Distributors to better provide the support they need. Upline Since every Distributor has a recruiter, your recruiter has a recruiter, and they have a recruiter, and so on. We refer to them all together as your Upline. They are all there to support you. Reach out to them and benefit from their expertise. Downline This is name for all of the Distributors that make up Uni-Level and Binary Trees, those that you have personally recruited and those that are recruited by them. Volume Every product purchase, in addition to having both a Distributor (wholesale) price and retail price, is also associated with an amount of volume. The amount of volume in your organization will ultimately determine your commissions earned. A product s volume is represented as personal volume (PV) and commissionable volume (CV). Example: A product that sells for $100 (USD) may have 80 points of volume associated with it. Personal Volume (PV): The value assigned to a product that you personally consume. Commissionable Volume (CV): The total value assigned to products derived from you and your downline that is used to track business activity, qualifications, and to calculate earned commissions. Personally Recruited Distributor (PRD) Anyone that you ve personally recruited in the LivElite business are your Personally Recruited Distributors, or PRD for short. Other names for PRDs may also include Level 1 or front line" Distributors. Active The Distributor s required PV amount to be eligible to earn commissions. This requirement makes the Distributor Active for a 28 day cycle (four weekly commissionable periods). Qualified An Active Distributor with two personally recruited, Active Distributors, one on each Leg (left and right) in the Binary Tree. You must be Qualified to receive any team commissions or bonuses. LivElite International Compensation Plan I 2

4 THE BASICS How do I earn Commissions and Bonuses? To be "Qualified" to earn commissions and bonuses in the LivElite Compensation Plan, you must be "Active"with a personal order of at least 50 personal volume (PV) and maintain a personally recruited Distributor on the left leg and on the right leg of your Binary Tree who are also both Active with a minimum personal purchase of 50 PV each. With 50 PV, you will be considered Active for a total of four week-long commissionable periods (the period in which you place your order, plus three more periods). Being Active with 50 PV allows you to earn Uni-level Team Commissions only. However, when you generate 100 PV (50 PV of the 100 must be from your personal purchases), maintain a personally recruited Distributor on the left leg and on the right leg of your Binary Tree who are also both Active with a minimum personal purchase of 50 PV each you will be considered "Fully Qualified" for the same four weekly commissionable periods. Distributors that are fully qualified also earn Binary Team Commissions and all bonus programs that are part of the compensation plan. You will be paid on all personal volume (PV) in your Binary Tree and that may help you advance in rank. All volume derived from your personal customers purchases also count toward your personal volume. Example: You place an order that generates 50 PV and your customers place orders that generate 150 PV for a total of 200 PV. How often will I get paid? Commissions are processed weekly at the end of every seven-day period. Each period begins Sunday at 12:00 a.m. U.S. Mountain Time, and ends on Saturday at 11:59 p.m. U.S. Mountain Time. Commission calculations are finalized and posted the Wednesday following the close of the period. Payments are made on Friday of that same week EIGHT WAYS TO EARN COMMISSIONS 81. LOYALTY BONUSES (LB) Five Bonus Programs..Page 4 2. UNILEVEL TEAM COMMISSIONS (UTC)......Page 6 3. BINARY TEAM COMMISSIONS (BTC) Page 7 4. ACCELERATED RANK BONUS (ARB) Page 8 5. DESTINATION AWARDS (DA) Page 9 6. CAR INCENTIVES (CI) Page 9 7. CROWN ELITE CLUB (CEC) Page MULITIPLE BINARY CENTERS (MBC) Page 10 LivElite International Compensation Plan I 3

5 1. LOYALTY BONUSES (LB) There are 5 different ways to earn Loyalty Bonuses. 1. Customer Bonus: As a LivElite Distributor, when you sell product at retail price to a customer, in person or via your personalized website, you earn the difference between the retail price and the wholesale price in a bonus commission. Products ordered from the website are sold to customers at retail price and the commissions earned are paid weekly. Customer orders also credit the Distributor with full personal volume (PV) in their Binary Tree on which they also will earn commissions. Example: A customer places a web order for product paying the retail price of $160 (USD). The wholesale price for this product is $120 (USD). The Distributor will earn $40 (USD) (the difference between retail $160 (USD) and $120 (USD) wholesale) plus the full volume associated with the product will be assigned to the lessor leg volume of their Binary Tree. 2. Loyalty Customer Bonus: When your customer agrees to an order that automatically ships every 28 days (4 weekly periods), that customer then receives the product at wholesale pricing. The Distributor earns 25% of the purchase price in a bonus commission and half of the assigned volume to that product is credited to the lesser leg of their Binary Tree on which they will also earn commissions. Example: A customer signs up for a Loyalty Product Purchase (LPP) for $120 (USD) (which is the wholesale or Distributor price) to be delivered every 28 days. The Distributor earns 25% of the $120 (USD) wholesale price, which is $30 (USD), plus they would be credited with 50% of the volume associated with the product. So when the volume associated with the $120 (USD) purchase is 100, then the Distributor would receive half or 50 PV on the lesser leg of their Binary Tree on which they will also earn commissions. 3. Recruiting Bonus: When a Distributor has a minimum of 200 PV in a 28 day cycle (four weekly commissionable periods) and recruits a new Distributor on the left leg and a new Distributor on the right leg of his Binary Tree structure, who each join with at least a 200 PV pack, the recruiting Distributor receives a $50 (USD) Recruiting Bonus. Each time the Distributor duplicates this by recruiting a new Distributor on the left and right leg of their Binary Tree, they receive a $50 (USD) Recruiting Bonus. Example: Duplicate this process 10 times and receive $500 (USD). 4. Product Pack Bonus: When a new Distributor joins LivElite and purchases a Product Pack, that new Distributor will receive a commission bonus associated with that pack. Pack #2 bonus is $70 (USD), Pack #3 bonus is $140 (USD), Pack #4 bonus is $280 (USD). The volume associated with each Pack is credited to the lesser leg of their Binary Tree on which they will also earn commissions. Example: A new Distributor joins LivElite and purchases Pack #3 for $1,000 (USD). The new Distributor will earn a $140 (USD) Product Pack Bonus and 800 PV will be credited to the lesser leg of their Binary Tree. 5. New Volume Bonus: When a Distributor generates brand new volume of 800 CV in their lesser leg in a weekly pay period, they receive a bonus of $100 (USD). Every time 800 new CV in generated in your lesser leg in any given weekly pay period a $100 (USD) bonus is paid. You are not eligible for this bonus at the Distributor Ranks of Gold Star or above. You can earn this bonus unlimited times. As long as you are below the rank of Gold Star, and generate 800 new volume in your lesser leg, you will earn this bonus. New Personal Volume (PV) also counts towards the qualification of 800 new CV. Loyalty Product Purchases (LPP) are recurring orders and are not considered new volume. LivElite International Compensation Plan I 4

6 ORGANIZATION STRUCTURES Every Distributor, as they recruit others into their organization, build two structures simultaneously, a Unilevel Tree (Recruitment Tree) and a Binary Tree (Placement Tree). Here is a visual example. YOU L L2 1A 1B 1C 2A 2B 3A L3 1A 1 1B 1 2A 1 2A 2 YOU 1 2 1A 1B 2A 3 1A 1 U 1B 1 1C 2A 1 2A 2 3A 2B UNI-LEVEL TREE (Recruitment Tree) This is what insures your organization is structurally strong. This is the group of Distributors that you personally recruited. Every Distributor you personally recruit is on your first level or level 1 (L1). Their personally recruited Distributors then become your level 2 (L2). Those recruited by level 2 Distributors then become your level 3 (L3), and so on. There is no limit to the number of Distributors you can have in your Recruitment Tree. BINARY TREE (Placement Tree) This promotes teamwork and makes your commissions grow. All Distributors that make up your Recruitment Tree are also placed into a two-legged (or Binary) tree. Every Distributor in your Recruitment Tree is also part of your Placement Tree. However, your Placement Tree may also include Distributors that were recruited by your upline, represented by the letter "U" in the above graph. Your Placement Tree has two branches, otherwise known as legs. Your two legs will be known as your left leg and your right leg. The larger of the two is your greater or power leg. The smaller of the two is your lesser leg or pay leg". LivElite International Compensation Plan I 5

7 2. UNI-LEVEL TEAM COMMISSIONS (UTC) Uni-level Team Commissions are the foundation for a stable residual income. Build a solid Distributor and Customer base and receive commissions each week from product orders and/or re-orders generated in your organization down to five (5) levels deep of Active downlines. The number of levels you are paid on depends upon the number of Distributors you have personally recruited. You are paid 5% of the total commissionable volume (CV) of which you are eligible in the Uni-level Tree. Recruit 1-3 new distributors who remain active and receive 5% commissions on the total volume generated on Level 1. Recruit 4-5 distributors who remain active and also receive 5% commissions on the total volume generated on Level 2. Recruit 6-7 distributors who remain active and also receive 5% commissions on the total volume generated on Level 3. Recruit 8-9 distributors who remain active and also receive 5% commissions on the total volume generated on Level 4. Recruit 10 or more distributors who remain active and also receive commissions on the total volume generated on Level 5. You must maintain Active status with a minimum 50 PV in a 28-day cycle to be eligible to earn Uni-level Team Commissions. The minimum of 50 PV must come from your personal purchases. An Inactive Distributor in your Downline is not considered as one level and shall be compressed upwards to the next Active Distributor. Number of Active Personally Recruited Distributors who are active every 4 weekly commisionable periods (28 Day Cycles). UNILEVEL COMMISSIONS OUTLINE Level 1 5% 5% 5% 5% 5% Level 2 5% 5% 5% 5% Level 3 5% 5% 5% Level 4 5% 5% Level 5 5% Paid 5 levels down on all personal recruits - 5% payout, minimum 50 PV in the 28-day cycle and NO minimum level required ranks of Team. An Inactive Distributor in your Downline is not considered as one level and shall be compressed upwards to the next Active Distributor. Minimum 50 PV requirement needed. LivElite International Compensation Plan I 6

8 3. BINARY TEAM COMMISSIONS (PAID WEEKLY) Binary Team Commissions are an integral part of the LivElite International Compensation Plan. The Binary Team is derived from a dynamic structure that compensates you for successfully generating sales volume within your Binary Tree (Placement Tree) and motivating your downline to do the same. Earn on the sales of those Distributors you, your upline, and your downline place within your Binary Tree. The Binary Tree has two sides, a Left Team and a Right Team, either of which can be the Power Leg (Greater Leg) or the Pay Leg (Lesser Leg) on any given commissionable period. The LivElite International Compensation Plan allows you to earn 10% on the Commissionable Volume (CV) of the Pay Leg. An equal amount of CV is then deducted from each Leg. A minimum of 100 PV is required to earn Binary Team Commissions. 50 PV of the 100 PV requirement must come from your personal purchases. To start your Binary Team, you must have two (2) personally recruited Distributors, one on the Left Leg and one on the Right Leg. Each must generate at least 50 PV, which is the Active Requirement. To remain Qualified for Binary Team Commissions, you must maintain the 100 PV requirement and maintain at least two (2) Personally Recruited Distributors one on the Left and one on the Right helping each generate a minimum 50 PV within the commissionable period. When you maintain your Active Status, you are allowed to Rollover any unpaid volume in your Power Leg to the next commissionable period. YOU Lesser Leg Volume PV 10% = $100 (USD) 1,200 Greater Leg Volume After commissions are paid, the volume in your lesser leg and the equivalent volume on your greater leg will then flush to start anew for the next weekly pay period. Any remaining volume in the greater leg then rolls over to the next weekly pay period. In the above example, the lesser leg has 1,000 total commisionable volume which includes your own PV. The greater leg has a total of 1,200 volume. Therefore, you earn 10% commissions on the lesser leg ($100 USD) and that paid volume of 1,000, along with 1,000 volume of the greater leg, will flush, and the remaining 200 volume in the greater leg will Rollover to count as unpaid volume in the next weekly pay period. Each week, any volume that's not matched and flushed in the Greater Leg will Rollover to the next weekly pay period. Rollover Rules: Should a Distributor become inactive, any accumulated rollover volume will be flushed and lost. After commissions are calculated, all paid volume from the Pay Leg will be reset to zero, and the unused volume from the Greater Leg will be carried over. There is absolutely no roll over of Lesser Leg volume. If a Distributor does not meet the minimum active requirement to be paid Binary Team Commissions, the volume on the Lesser Leg will flush without payment. Rollover volume is unlimited. However, only 50,000 of your rollover volume can be applied toward your commissions in a given month. LivElite International Compensation Plan I 7

9 BINARY TEAM RANK ADVANCEMENT CHART 10% commission is paid weekly on the lesser leg. A weekly cycle starts Sunday 12:00 a.m. and ends Saturday 11:59 p.m. MST and is paid the following week. After 10% commission is paid, that volume in your lesser leg will flush and the equivialent volume in your greater leg will also flush. The remaining volume on the greater leg shall carry forward to the next Pay Period Distributor PV counts in the lesser leg (either from personal orders or customer orders). Must be at 100 PV to earn binary commissions and 50 PV of that must be a personal product purchase. *To achieve a rank you need to generate the designated amount of lesser leg volume required. This amount is totaled over four consecutive commissionable periods. 4. ACCLERATED RANK BONUSES (ARB) To reward those motivated Distributors that generate volume in a projected time, LivElite rewards them with the Accelerated Rank Bonus (ARB). This bonus is paid out one time with each rank achieved. Continue building your business in an accelerated way and recieve a total of $9,200 (USD) in bonuses. Star, Star Maker - No additional bonuses. Silver Star - 2,000 Commissionable Volume in the lesser leg - Distributor PV counts. It is projected to take 4 weekly cycles to complete. All Distributors who complete within 2 cycles recieve a $200 (USD) one time bonus paid the first week after the cycle updates. Gold Star - 5,000 Commissionable Volume in the lesser leg - Distributor PV counts. It is projected to take 12 weekly cycles to complete. All Distributors who complete within 6 cycles recieve a $500 (USD) one time bonus paid the first week after the cycle updates. Platinum Star - 10,000 Commissionable Volume lesser leg - Distributor PV counts. It is projected to take 30 weekly cycles to complete. All Distributors who complete within 15 cycles recieve a $1,000 (USD) one time bonus paid the first week after the cycle updates. Ruby Director - 25,000 Commissionable Volume lesser leg - Distributor PV counts. It is projected to take 52 weekly cycles to complete. All Distributors who complete within 26 cycles recieve a $2,500 (USD) one time bonus paid the first week after the cycle updates. Emerald Director - 50,000 Commissionable Volume lesser leg - Distributor PV counts. It is projected to take 90 weekly cycles to complete. All Distributors who complete within 45 cycles recieve a $5,000 (USD) one time bonus paid the first week after the cycle updates. All bonuses are graduated - Example: When a Distributor reaches Silver and Gold Ranks in the same cycle they would receive $200 (USD) and $500 (USD), for a total of $700 (USD). When a Distributor reaches Silver, Gold and Platinum Ranks in same cycle, the Distributor would receive $200 (USD), $500 (USD) and $1,000 (USD) for a total of $1,700 (USD). *To achieve a rank you need to generate the designated amount of lesser leg volume required. This amount is totaled over four consecutive commissionable periods. LivElite International Compensation Plan I 8

10 5. DESTINATION AWARDS (DA) Platinum Star 2 people; 3 days, 2 nights trip awarded once a year paid by LivElite (organized by LivElite, may be included during training events). Diamond Director 2 People; 5 days, 4 nights held once a year with requalification (must hit 4 cycles in 52 cycles). Black Diamond 2 people; 7 days, 6 nights held once a year with requalification (must hit 4 cycles in 52 cycles). Crown Elite - 2 people; 10 days, 9 nights held once every other year with requalification (must hit 4 cycles in 52 cycles). The first time you achieve the rank you earn the trip. Additional qualifications are based on the above cycles. For all trips, Distributors must maintain Active and Qualified status from the first qualifying period until the date of the trip. *To achieve a rank you need to generate the designated amount of lesser leg volume required. This amount is totaled over four consecutive commissionable periods. *The first time you reach a specific rank, you will earn a Destination Award (DA) trip. 6. CAR INCENTIVES (CI) Level 1 - Hit Platinum Star Rank 4 times in an 8-week cycle and earn $500 (USD) Car Bonus with LivElite Company Logo (Logo Provided by LivElite). As long as you continue to hit Platinum Rank 4 times in an 8 week cycle you earn this bonus - paid each 28- Day cycle. Level 2 - Hit Ruby Director Rank 4 times in an 8-week cycle and earn $1,000 (USD) Car Bonus. Must be used on a Black AUDI with LivElite Company Logo (Logo Provided by LivElite). As long as you continue to hit Ruby Director Rank 4 times in an 8 week cycle, you earn this bonus. Bonuses will not be paid towards anything else, except cars (NO exceptions). Car MUST MAINTAIN the LivElite Logo during all cycles that the Distributor is qualified. All car qualified earners, will have their photo proudly displayed on our "Wall of Achievers" at the Corporate Headquarters in Draper, Utah. *To achieve a rank you need to generate the designated amount of lesser leg volume required. This amount is totaled over four consecutive commissionable periods. LivElite International Compensation Plan I 9

11 7. CROWN ELITE CLUB (CEC) $100,000 (USD) BONUS check paid at International Convention. Presented on stage and special recognition once Crown Elite Rank is achieved the first time. After hitting Crown Elite Rank the first time, Distributor must reach the Crown Elite Rank at least 6 times during the 52-week cycle (from Convention to Convention) for additional requalification. Paid ONLY at International Convention each year (Distributor must be in attendance). One Hundred Thousand 100, *To achieve a rank you need to generate the designated amount of lesser leg volume required. This amount is totaled over four consecutive commissionable periods. 8. MULTIPLE BUSINESS CENTERS (MBC) 400,000 CV Lesser YOU 400,000 CV + Greater Distributors may be awarded Multiple Binary Centers (MBC) after reaching the rank of Black Diamond and maintaining Black Diamond or above status for 4 consecutive weeks. *To achieve a rank you need to generate the designated amount of lesser leg volume required. This amount is totaled over four consecutive commissionable periods. LivElite International Compensation Plan I 10

12 RANK QUALIFICATIONS Star: of 100 CV in your lesser leg. Star Maker: minimum of 100 PV and generates a minimum of 300 CV in your lesser leg. Silver Star: minimum of 100 PV and generates a minimum of 2000 CV in your lesser leg. Gold Star: An Active and Qualified Distributor with a minimum of 100 PV and generates a minimum of 5000 CV in your lesser leg. Platinum Star: An Active and Qualified Distributor with a minimum of 100 PV and generates a minimum of 10,000 CV in your lesser leg. PERSONAL VOLUME QUALIFICATION Each Distributor is required to personally purchase a minimum volume of 50 PV to be considered Active in the business. Distributors can achieve additional personal volume (PV) requirements with both their own personal purchases and the volume generated by their customer's purchases. Example: A minimum of 100 PV is required to attain the rank of Star. 50 of that volume must come from the Distributor s personal purchases and the other 50 can come from your customer s purchases. Total PV is made up from your personal purchases combined with your customer s purchases. All PV is applied to the lesser leg of the Binary Tree on which you will earn commissions. Ruby Director: of 25,000 CV in your lesser leg. Emerald Director: of 50,000 CV in your lesser leg. Diamond Director: of 100,000 CV in your lesser leg. Blue Diamond: of 200,000 CV in your lesser leg. Black Diamond: of 400,000 CV in your lesser leg. Crown Elite: of 800,000 CV in your lesser leg. LivElite International Compensation Plan I 11

13 DEFINITIONS These are brief definitions of terms you will see used throughout the Compensation plan: Active The Distributor s required PV amount to be eligible to earn commissions. This requirement makes the Distributor Active for a 28 day cycle (four weekly commissionable periods). Binary Tree (Placement Tree) The organizational structure with two legs of Recruited Distributors often referred to as the Left Leg and the Right Leg. Commissionable Volume (CV) The collective volume from all sales generated by Distributors (including their customers). Distributor Independent business owner who participates in the LivElite International opportunity and develops a sales organization to market the products. Downline This is name for all of the Distributors that make up your Recruitment and Binary Trees, those that you have personally recruited and those that are recruited by them. Leg In the Binary Tree, there are only two legs permitted per Distributorship often referred to as the Left Leg and the Right Leg. Every Distributor you personally Recruit and the people they Recruit and so on, are placed in either the Left or Right Legs. Loyalty Product Purchase (LPP) LPP is a recurring order program that ensures Distrubutors and Customers receive their favorite products automatically every four periods. A Customer that is on a LPP receives special wholesale pricing. LPPs can be modified or cancelled at anytime. New Volume The volume generated from new Distributor and Customer sign ups and orders within a weekly cycle. Pay Leg The Binary Team Leg (left or right) that has the lesser amount of Commissionable Volume (CV) at the end of a commissionable period. This may also be referred to as the Lesser Leg. Personal Volume (PV) The value assigned to a product or service that you personally consume. Personal Volume is applied to commissionable volume. Power Leg The Binary Team Leg (left or right) that has the greater amount of Commissionable Volume (CV) at the end of a commissionable period. This may also be referred to as the Greater Leg. Product Packs A custom-built package with product and sales tools to help Distributors jump-start their business. Contents depend on the Pack chosen. Qualified An Active Distributor with two personally Recruited, Active Distributors, one on each Leg (right and left) in the Binary Tree. You must be Qualified to receive any team commissions or bonuses. Rank Achievement levels within the Compensation Plan. You recieve commissions based on your current rank. Your Recognition Rank is based on the highest Rank achieved. Recruiter The person who introduced you to LivElite International and enrolled you into the business opportunity. Retail Profit The profit earned on any product sold to a customer for a price higher than the price paid by the Distributor. Rollover Volume Any unpaid volume in your greater leg rolls over to the following month as long as you maintain 50 PV. Unilevel Tree The people you enroll, the people they enroll, etc. (regardless of where they are placed in the binary structure). Upline Since every Distributor has a recruiter, your recruiter has a recruiter, and they have a recruiter, and so on. We refer to them all together as your Upline. Effective 4/10/18 LivElite International Compensation Plan I 12