XanGo Compensation Plan Workbook ver 2011_10_18

Overview
XANGO has designed a fair compensation plan that combines a fast start weekly bonus, 9 level
UniLevel monthly bonus and leadership bonus pools consisting of worldwide commissionable
volume. It differs from the traditional companies by spreading the commissions to those that
work hard and build their organizations.
As a Distributor begins sharing XANGO products with friends and customers they too may be
interested in a business opportunity. It can begin simply as a desire to purchase at wholesale, but
can lead to making significant earnings that may enhance a Distributors financial status or even
replace an existing income.
There are 4 ways Distributors can earn money with the XANGO business opportunity.
1) Distributors can earn a Retail Profit from sales to customers (the difference between the
wholesale and retail pricing).
2) Distributors can earn a weekly PowerStart Commission from new personally sponsored
Distributors.
3) Distributors can earn a UniLevel Commission for additional sales made by Distributors in
their downline based on a qualified rank.
4) Premier Distributors can earn a portion from Global Bonus Pools.
Compression pushes active Distributors upward in an organization past inactive Distributors
bringing them closer to the upline. Compression is used 4 ways in the payout structure to help
maximize distributor earnings (PowerStart Commission payments, UniLevel Commission
payments, Sponsorship and Title for qualification purposes).
This document will go over PowerStart Commissions, UniLevel Commissions, the Global Bonus
Pool, 500K Pool, structure strategies, explain compression, provide a glossary of terms used, and
give handouts to be used in trainings.
With a 50% forced payout, XANGO has again revolutionized the industry on how companies
pay commissions. No Breakage, but fair payout for the Distributors with unlimited potential.
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Table of Contents
1. Why XANGO?
2. Automatic Delivery Program (ADP) – Monthly re-occurring order
3. PowerStart – Weekly commission paid on an initial order
4. Distributor Ranks & Titles – Ranks and qualification requirements
5. UniLevel – Monthly, residual income paid on non-PowerStart orders
6. Global Bonus Pool – Leadership pool consisting of 3% worldwide sales
7. 500K Rank & Pool – Leadership pool consisting of 2% from PowerStart orders
8. Customer Connect – Building with Customers
9. Quantum & X1 Information – New ranks and descriptions
10.Structure – Width or depth? The million dollar question, and answer
11. Compression – PowerStart, UniLevel, Sponsorship, and Title
12. Compensation Plan Enhancements
13. Glossary – XANGO and industry lingo
14. Forms and Handouts -
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1. Why XANGO?
With all the companies all over the world that claim they are the best and they are the most fair,
most honest, and their products are one of a kind and unique, why would somebody want to join
XANGO? XANGO is “the real deal”! In evaluating a Network Marketing Company, there are
5 areas you should look at before you make a commitment.
1) The Founders of the Company. Are they experienced? Are they honest? What is
their track record? What are their strengths and weaknesses? Have they surrounded
them with management to overcome their weaknesses? Can the management team
advise the founders as well as carry out the founder’s vision? What are the
corporate strategies? Are they planning for the future? How big do they think?
2) Financial Stability. Many companies put on a good act and flash the dream, but
can they pay their bills and more importantly, do they pay their Distributors on
time? Do they have the infrastructure in place to last more than a year? 90% of
MLM’s fail in their first year. Those few that have survived the first couple years,
what is their strategy? Where are they going? Are they growing? Expanding
internationally? Launching new unique products?
3) Products. Are the products that the company has produced consumable? Will
people purchase and re-purchase them? Are they unique or “copycat” products that
everybody has? Will a Distributor be able to build a solid business with them or
will they be making excuses about them?
4) Compensation Plan. Is the compensation plan fair? How much do they really pay
to the Distributors? How much does the company keep? Is the compensation plan
legal? Does the company know if it is legal? Is the plan weighted to those who got
in first, or is there an equal opportunity for those who join 5 years, or 10 years later?
Does it reward those who are working and building? What is the cost of the
products, and how much of that cost is actually paid to Distributors? Can the
compensation plan stand the test of time or will it have to be continually modified?
Is it a short-term or long-term plan? Is it easy to understand and explain? Has it
been changed? If so, were the changes in favor of the Distributors or the company?
5) Distributors. Do they have leaders? Are they retaining their Distributors? What
percent of Distributors earn enough money to pay for their products? Are leaders
joining XANGO? Do the Distributors trust the company? If they don’t, why
should you? Over 2 million Distributors are part of the XANGO family.
XANGO has always looked at the relationships with their Distributors as partnerships – 50%
payout. XANGO has category creating products you can be proud of along with a vision for the
future. XANGO has developed products and relationships that will last many years.
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2. Automatic Delivery Program (ADP)
ADP is a preset and pre-approved order delivered to the Distributor each month. Distributors
may choose to participate in the Automatic Delivery Program. ADP is an integral part of the
XANGO Compensation Plan. XANGO processes these order and payments on the 14th day of
each month. Modifications or cancellations must be made before the 12th of each month.
There are two types of ADP, unconditional and conditional. Unconditional ADP orders will be
shipped on the 14th regardless of the month’s personal volume. Conditional ADP allows the
distributor to purchase product that meets or exceeds their commitment in the ADP program
prior to the 14th of each month. If the volume requirement for Conditional ADP has been meet
prior to the 14th, the ADP order will not be processed.
Commissions are paid out to active Distributors who have met the necessary qualifications. For
a Distributor to qualify for PowerStart Commissions 2nd Level payout, they must have at least
200PV with an active ADP of at least 200PV. For UniLevel Commissions, 200PV with 200ADP
is not required until a Distributor has achieved the rank of 20K.
ADP orders will not count towards qualifications if the ADP payment fails. Additionally,
commissions will not payout on orders without payments.
Below are extracts of ADP as outlined in the:
XANGO Distributor Policies and Procedures and Compensation Plan
(UNITED STATES OF AMERICA - Effective March 17, 2009)
Automatic Delivery Program (ADP).
1. A Distributor may choose to participate in the Automatic Delivery Program (ADP). ADP may be established at any time
through the submission of the ADP application or with a written request to the Company indicating the amount of
Product to be shipped each month and the method of payment to be used. When instituting ADP at the time of
enrollment, the Distributor Agreement serves as confirmation for the setup. An ADP account will be charged at a set
time during the month, and the Product will be shipped at a set time thereafter. The Distributor may obtain tracking
numbers from the Company after the Product is shipped. The scheduled dates for ADP processing, account charges,
shipping or account changes are posted on the Company’s myXANGO.com office website and are subject to change
by the Company from time to time.
3. A Distributor may choose between two (2) types of ADP:
a. Backup ADP: While enrolled on “Backup ADP,” if a Distributor places any orders before a specified date each
month (see the scheduled dates for ADP posted on the Company’s myXANGO.com office website), and if the
Volume of the order(s) equals or exceeds the Volume of the ADP for that month, then the order(s) will replace
the ADP for that month. Orders placed after ADP has been process and all orders placed before ADP has been
processed that do not equal or exceed the Volume of ADP for that month will not be credited toward the ADP for
that month or any subsequent month; or
b. Unconditional ADP: Upon establishing “Unconditional ADP,” the Distributor will receive the ADP shipment
every month, regardless of the Volume ordered by that Distributor at other times of any given month.
4. Payments will be verified prior to processing ADP orders. In the event authorization is declined, the Company may
attempt to contact the Distributor and reattempt to obtain authorization. If authorization is not obtained by the end of
the month, the order will be considered “unprocessed” and will not be included in Commission computation and
processing. The Company will not be held responsible for Volume shortfalls due to unprocessed orders.
(Please see the Policies & Procedures for a complete description of ADP)
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3. PowerStart Commission
XANGO offers a weekly commission called PowerStart. PowerStart is paid one time on a new
Distributor’s first sales order with volume placed within 30-days of signup. This bonus is paid
out 2 levels to qualified upline Distributors based on Sponsorship.
There are two ways this commission is paid out, PowerStart Basic and PowerStart Plus. The
difference between Basic and Plus is determined by the ADP (Automatic Delivery Program)
status of the new Distributor’s sponsor.
PowerStart commission was designed to help jump-start a new Distributor’s training and get
money quickly to a Distributor. Distributors of all titles can participate in PowerStart
commissions by sponsoring new Distributors and meeting the minimum qualifications.
XANGO pays out 50% of the commissionable volume from PowerStart. 45% is paid out 2
levels either Basic or Plus and the remaining 5% is paid to the pools. 3% goes to the Global
Bonus Pool and 2% goes to the 500K Pool.
PowerStart Basic pays out 20% on Level 1 and 25% on Level 2. In order for a Distributor to
qualify for Level 1 payout they must personally sponsor a new Distributor and have a minimum
of 100PV. The Level 2 payout for PowerStart Basic compresses to the first Upline distributor
(past the new Distributors sponsor) that is qualified with a minimum of 200PV and 200ADP for
the period.
PowerStart Plus pays out 30% on Level 1 and 15% on Level 2. In order for a Distributor to
qualify for Level 1 payout they must personally sponsor a new Distributor and have a minimum
of 100PV and 100ADP. The Level 2 payout for PowerStart Plus compresses to the first Upline
distributor (past the new Distributors sponsor) that that is qualified with a minimum of 200PV
and 200ADP for the period.
As a Distributor sponsors a new Distributor, they can choose to earn 5%, 20% or 30% on the
new Distributors first order. If no training is provided and the new Distributor does not place a
sales order within 30-days, it is paid UniLevel and the sponsor would get 5% if they met the
qualifications. If the new Distributor places the order within 30-days and the sponsor does not
have an active ADP, the sponsor will get 20% if they met the qualifications. If the new
Distributor places the order within 30-days and the sponsor does have an active ADP, the
sponsor will get 30% if they met the qualifications.
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There are some points that can be confused that should be clarified regarding PowerStart.
•
For an order to be paid as PowerStart commissions, it must be made within the 30-days of signup of the
new Distributor. Specifically, only the first wholesale order with volume placed within 30-days of signup
will be paid out PowerStart. Some believe that it is paid on all orders placed within 30-days and that is not
correct. If multiple wholesale orders are placed whether for drop shipping or needing extra product, only
the first wholesale order with volume will be counted towards PowerStart and the others will be paid on the
UniLevel.
•
When the requirement is 100PV and 100ADP it does not mean that you have to have a total of 200PV. It
means that you have 100PV and an active ADP of 100PV. Likewise, 200PV and 200ADP mean 200PV
with an active ADP for 200PV not 400PV.
•
Third, PowerStart is limited to 1,000PV. If an initial order is over 1,000 PV, the first 1,000 PV is paid
PowerStart and the additional volume is paid out as UniLevel. A new distributor may purchase more than
1,000PV but it would be paid PowerStart and UniLevel.
•
ADP is a key element in the XANGO Compensation Plan. Even though a 200PV ADP is not needed until
the 20K level for UniLevel payout, it is needed for 2nd level payout on PowerStart. If a Distributor does not
have 200ADP and their group is sponsoring and growing, they will pass the 2nd level PowerStart payments
to their Upline.
•
For qualification to receive commissions, the 4 week window was extended to 6 weeks in December,
2002. This extension was made to prevent any penalization for somebody being on ADP and not
qualifying for PowerStart on orders placed the next month prior to ADP running. It is simply explained as
there is a 6 week window for the Upline to meet their qualifications to be eligible for PowerStart
Commissions. If at any time during the 6 week window (current week of the new Distributor and 5
previous weeks) they had the required PV and an Active ADP they would be qualified. Remember that
200PV and an active 200ADP are needed for 2nd level payout.
In the example below, Distributor A signs up, then signs up Distributor B 4 weeks later. In the 5th week,
Distributor B signs up Distributor C. Distributor B is paid 1st level PowerStart on C or 30% and Distributor
A is paid 2nd level or 15% PowerStart commission on Distributor C’s order. Without the extension of the 4
week window to 6 weeks, Distributor A would not qualify and therefore be penalized for being on ADP
since he would not have any volume until the next ADP ran.
Compression applies to PowerStart payout. If a Distributor has not met the requirements to
receive level 1 or level 2 pay out, it will compress up to the next Distributor that is qualified as
shown in the following diagram.
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PowerStart Payout and Compression
This example represents the Sponsorship tree and assumes that A sponsored
B who sponsored C who sponsored D who sponsored E. E being a new
distributor placing a 100PV order within 30-days of signing up.
PowerStart “Basic”
Level 2
Level 1
25 %
200 PV
200 ADP
A
A
200 PV
200 ADP
15 %
0%
100 PV
200 ADP
B
B
100 PV
200 ADP
0%
0%
100 PV
100 ADP
C
C
100 PV
100 ADP
0%
20 %
100 PV
NO ADP
D
D
100 PV
100 ADP
30 %
NEW
E
100PV
E
100PV
Global
Pool
Global
Pool
500K
Pool
500K
Pool
0%
45 %
3%
+
PowerStart “Plus”
2%
NEW
Level 1
0%
45 %
3%
+
50 %
Remember that XanGo pays out 50% on each sales
order. Sales are paid out either PowerStart or
Unilevel. To be paid out PowerStart, they must be
the 1st order with volume placed within 30-days of
sign-up. These sales orders are paid out 2 levels
based on the criteria to the right.
Level 2
2%
50 %
Level
Paid
PowerStart “Basic”
2
25% 200PV & 200 ADP
15% 200PV & 200 ADP
1
20% 100 PV
30% 100 PV & 100 ADP
PowerStart “Plus”
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4. Distributor Ranks & Titles
The following ranks and titles are used in the XANGO Compensation Plan.
•
•
•
•
•
•
Representative
Preferred Representative
1K
5K
20K
Premier
•
•
•
•
•
100K Premier
200K Premier
500K Premier
Quantum Premier
X1
A “Select” is added to the Premier ranks once the qualification has been met for all 3 months of the
calendar quarter.
Global
Bonus
Pool
-NA-
500K
Bonus
Pool
-NA-
Hit each
month
of
quarter
No
Minimum
Check
Amount
-NA-
Personal
Purchase
100
Personal
ADP
-NA-
Minimum
GV
-NA-
Minimum
Personally
Sponsored
-NA-
100
100
-NA-
-NA-
-NA-
-NA-
No
-NA-
1K
100
100
1,000
(3) Pref Reps or
Pref Customers*
-NA-
-NA-
No
-NA-
5K
100
100
(3) 1K's
-NA-
-NA-
No
-NA-
20K
200
200
(3) 5K's
-NA-
-NA-
No
-NA-
Premier
200
200
GV3
-NA-
Yes
$2,500 USD
Premier 100K
200
200
GV6
-NA-
Yes
$5,000 USD
Premier 200K
200
200
GV9
-NA-
Yes
$10,000 USD
Premier 500K
200
200
GV9
GV6
Yes
$10,000 USD
Quantum Premier
200
200
750,000
GV6
GV9
GV6
Yes
$10,000 USD
200
200
1,000,000
GV6
GV9
GV6
Yes
$10,000 USD
Rank/Title
Representative
Preferred
Representative
($750,000USD Bonus)
Premier X-1
($1,000,000USD Bonus)
5,000
20,000
50,000
100,000
200,000
500,000
(2) 20K's
(1) 5K
(3) 20K's
(1) 5K
(3) Premiers
(1) 20K
(1) 200K
(2) 100K's
(2) Premiers
(1) 500K
(1) 200K
(1) 100K
(3) Premiers
(1) 500K
(2) 200K's
(4) Premiers
*Preferred Customers with 100 PV can count as a qualifying leg for a 1K. In markets that don’t have Preferred Customers, Customers
on ADP with 100 PV can count as a qualifying leg for a 1K.
A Distributor earns a title (highest achieved rank) in the XANGO Compensation Plan and these are
retained. Titles are never lost but replaced with a higher title as the Distributor advances. Commission
payments are made based on the rank that a Distributor qualifies. Qualifications must be made each
month to get paid at a specific rank.
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5. UniLevel Commission
UniLevel Commission is one of the four ways a Distributor can earn money from XANGO. From the
first discussions on designing the payout structure, XANGO wanted to create the best compensation
plan in the industry. It needed to be fair for small, large, current and future Distributors. ADP
(Automatic Delivery Program) is also a very important element of the XANGO Compensation Plan.
ADP gives the Distributor ease of having an order delivered to their home on a set schedule, but also
provides Distributors a residual income.
Before explaining the XANGO UniLevel Plan, you first need to understand WHY XANGO chose a
unilevel plan. Therefore, you must understand a little about different plans.
•
Binary Plan – the binary plan consists of 2 legs. A Distributor is
Binary Plan
required to build both legs (usually there is a minimum volume
requirement for the legs) but the Distributor is only paid on the
smaller leg. Commissions are usually restricted up to a certain
amount. Being required to build both legs, getting paid on the
smaller leg, and having a cap on your earnings is not very fair.
Binary plans pay on unlimited levels, but limit the amount of
volume you could be paid on which limits earnings. In binary plans,
medium sized Distributors can benefit, but the binary can hurt large
Distributor leaders. Small Distributors become sacrificial lambs to
generate volume. Many binary companies also use a different
pricing technique. They have a wholesale amount that is paid for
the product, a PV amount that is used for qualification, and a CV
amount of what they actually pay commission on. Example: $130
wholesale, 100PV for qualification, 80 CV for commission payout. (If they pay out 50%, it is on the
CV so only $40 is paid to Distributors and $90 kept by the company – not a 50% payout).
•
Matrix Plan – A matrix has a set of
measurements (3 x 5 or 5 x 7) that put limits on
the width and depth of the structure. Some matrix
plans are forced and some have compression.
Usually, they fill left to right, top to bottom.
When a matrix is full, it is full. There is no more
room for Distributors. The matrix can be the
simplest and easiest to maintain, but it will also
limit the potential earnings.
•
•
Matrix Plan
3x3
Matrix
3
9
27
Stairstep/Break-A-Way Plan – The Stairstep
portion of the plan simply pays representatives a fixed percent of volume on a set level. When they
achieve a predetermined amount of volume or rank, they will break away from their upline and will no
longer count for the upline’s qualifications. If they meet additional criteria, then they can get paid a
small percent of the volume on a level(s) of the breakaway distributors. An example using the
XANGO Premier Rank (2 20K’s and 1 5K) would be when a 20K became a Premier or had 50,000 in
volume they would no longer count for that Premier’s qualification. If that Premier wanted to qualify,
they would have to have another 20K or lose rank. This is not fair. To build a leader and have the
leader no longer count for your qualification can promote not wanting downline to advance.
Unilevel plan. A Unilevel is unlimited in width and with compression, allows unlimited earnings.
The percentages paid on different levels can greatly change how the Unilevel works. If there are low
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percentages paid on lower ranks, the plan will push money away from the smaller Distributor to the
larger Distributor. The number of levels paid is also very important. Anything beyond 9 levels is
against the law. Why would companies only pay on 5 or 7 levels when they could pay up to 9 levels?
XANGO chose the Unilevel plan. Why? It is the most fair plan for the small, medium, and large
Distributors. We pay out 9 levels because it can maximize earnings by Distributors. We put
compression on the payout to also help maximize the Distributor earnings.
UniLevel commission is paid on all non-PowerStart orders. XANGO pays Distributors on
commissionable volume based on the Distributors qualifying rank. UniLevel is paid based on the
Placement Tree. Percentage pay outs are listed below.
Rep
Preferred
Rep
1K
5K
20K
Premier
1st
5%
5%
5%
5%
5%
5%
2nd
5%
5%
5%
5%
5%
5%
10%
10%
10%
10%
10%
5%
5%
5%
5%
5%
5%
5%
6th
5%
5%
7th
5%
5%
Commission % paid per level
Level
3rd
4th
5th
8th
5%
9th
2%
The percentage payouts on the XANGO UniLevel help the smaller Distributors but can be very
lucrative for the larger Distributor. Many companies that also have a Unilevel commission structure
pay out less than 9 levels, pay lower percentages on lower levels and higher percentages on higher
levels. By doing this, it pushes more money to the bigger distributor. XANGO chose to be different.
Taking care of the smaller Distributors will stabilize an organization and increase retention.
XANGO has maintained 5% payout on all levels with the exception of level 3 and level 9. XANGO
pays 10% on level 3 to help incentivize smaller organizations to continue to grow and reach a little
further. XANGO has been criticized for only paying out 2% on level 9, but argues that many
companies don’t payout 9 levels and higher ranking Distributors that qualify for the 9th level
participate in worldwide Bonus Pools.
Compression is applied to UniLevel payout on the XANGO Compensation Plan. Commissions on an
order are paid out starting from the bottom of the organization upwards until all levels have been paid
to qualified Distributors. Each UniLevel order is paid to 9 levels. A qualified Distributor is eligible
to be paid on only 1 level per order. Based on the qualified rank, Distributors are eligible for specific
levels on orders.
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UniLevel Compression
This example shows how a UniLevel order is paid out.
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6. Global Bonus Pool
The Global Bonus Pool consists of 3% of worldwide
Commissionable Volume (CV) from all sales orders. The
pool is shared by all qualified Premiers.
Unilevel
47%
+
3%
Global Bonus
Pool
PowerStart
3%
+
A Distributor that qualifies as a Premier (minimum of
45%
50,000 GV, 2 personally sponsored 20Ks, 1 personally
+
sponsored 5K, 200 PV with an active ADP of 200 PV)
and has minimum monthly earnings of $2,500USD
500K
2%
(UniLevel + PowerStart earnings) for each of the 3
Pool
calendar months of a quarter is eligible to participate in
the Global Pool. The portion of the pool that they receive
is based on the total compressed volume within their first 3 levels (GV3) generated from the Unilevel commission
for each of the 3 months of the quarter. PowerStart volume is also included in GV3 (if the order would have been
paid UniLevel, the level it would have been compressed and paid out is where the PowerStart orders are included
for GV3).
A Distributor that qualifies as a 100K Premier (minimum of 100,000 GV, 3 personally sponsored 20Ks, 1
personally sponsored 5K, 200 PV, with an active ADP of 200 PV) and has minimum monthly earnings of
$5,000USD (UniLevel + PowerStart earnings) for each of the 3 calendar months of a quarter is eligible to
participate in the Global Pool. The portion of the pool that they receive is based on the total compressed volume
within their first 6 levels (GV6) generated from the Unilevel commission for each of the 3 months of the quarter.
PowerStart volume is also included in GV6 (if the order would have been paid UniLevel, the level it would have
been compressed and paid out is where the PowerStart orders are included for GV6).
A Distributor that qualifies as a 200K Premier (minimum of 200,000 GV, 3 personally sponsored Premiers, 1
personally sponsored 20K, 200 PV with an active ADP of 200 PV) and has minimum monthly earnings of
$10,000USD (UniLevel + PowerStart earnings) for each of the 3 calendar months of a quarter is eligible to
participate in the Global Pool. The portion of the pool that they receive is based on the total compressed volume
within their first 9 levels (GV9) generated from the Unilevel commission for each of the 3 months of the quarter.
PowerStart volume is also included in GV9 (if the order would have been paid UniLevel, the level it would have
been compressed and paid out is where the PowerStart orders are included for GV9).
Additionally, 500K, Quantum, and X1 Premiers must also meet their qualifications for each month of the calendar
quarter and have minimum monthly earnings of $10,000USD (UniLevel + PowerStart earnings) for each of the 3
calendar months of a quarter then they are able to participate in the Global Pool. The portion of the pool that they
receive is based on the total compressed volume within their first 9 levels (GV9).
If a 200K Premier qualifies as a 200K Premier for one month of the quarter, 100K Premier for another month in the
quarter, and Premier for the third month of the same quarter, they will participate as a Premier, using GV3 for the
entire quarter with regards to their portion of the Global Pool.
The actual calculation of the amount a pool participant receives is determined by adding up all the GV3 volume of
the participating Premiers, the GV6 of the participating 100K Premiers, and the GV9 of the participating 200K
Premiers and above. This gives a total pool volume. Then the amount contributed by each participant is divided by
this total pool volume, resulting in an individual Distributor percentage. The Distributor’s percentage is then
multiplied by the total value of the Global Pool for the quarter, which results in a specific bonus amount.
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There are two important things regarding the Global Pool that are often overlooked by Distributors. First, it
is a mistake to focus on the minimum qualifications. The larger percentages of the pool will go to the
distributors who have greater volume in their GV3, GV6, or GV9. In other words, Distributors with wider
organizations will receive bigger bonus amounts.
Second, unlike other companies’ bonus pools, the XANGO Global Pool rewards your efforts to continue to sponsor
new Distributors and make retail sales. The structure of this pool will help you build a wider organization (depth
will come with time), put volume in the Global Pool, and, most importantly, increase your GV3, GV6, and GV9—
keeping the volume closer to you for pool commissions. Unlike other companies, Distributors can sign up today
with XANGO and, if willing to work hard, can earn bigger commission checks than those who signed up
before them.
Global Bonus Pool Payout
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7. 500K Bonus Pool & Rank
The 500K Pool consists of 2% of worldwide
commissionable volume from PowerStart Orders
worldwide. The 500K Pool is shared by all
qualified 500K, Quantum, and X1 distributors.
It is divided pro-rata based on GV6. Meaning,
the GV6 of all qualified 500K’s is added up.
Then the amount for each is divided by the total
giving each a percent. That percent is than
multiplied by the dollar amount in the pool and
paid quarterly.
PowerStart
45%
+
3%
Global
Bonus
Pool
+
2%
500K
Pool
In the event that there is not a qualified 500K for each month of the quarter, the dollar amount that the
500K Pool represents is put in the Global Bonus Pool and paid out quarterly.
One of the qualifications for 500K is different than for other ranks. 100K and 200K “titles” must be
“Select” and earned before they will count towards a 500K qualification. Meaning, the 100K and 200K
distributors must have already achieved the Select title for an entire calendar quarter and been paid at that
rank before they can count towards a 500K distributors qualification. In maintaining the rank and
qualifications for each month of the quarter, they become 100K Select and 200K Select. They also must
maintain their qualification each month during the quarter in order for the 500K to qualify. This includes
all requirements to be paid in the Global Bonus Pool.
Premiers “title” of Premier may be earned the first month of the quarter counting towards the qualification
of a 500K. All requirements for the Premier to be paid in the Global Bonus Pool must be met during each
of months to count towards the qualification of a 500K.
The 500K distributor is paid PowerStart and UniLevel commissions the same as a Premier and will
participate in the Global Bonus Pool the same as a 200K Premier.
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8. Customer Connect PowerStart
The Customer Connect program gives XANGO Distributors the opportunity
to earn a weekly payout called Customer Connect PowerStart. It is a reward
for referring retail and preferred customers. The volume on every customer
order will be paid out to Distributors in the Sponsor Tree.
The Customer Connect program was launched in July 2011. The first six
years of XANGO, most Distributors were product focused, educating people
on what a mangosteen was. The next couple years Distributor leaders, tools
and systems were focused on the business side - promoting XANGO’s great
compensation plan. With the focus on finding people that were interested in
the business side of things, many overlooked the importance of customers.
Customer volume was previously used to solidify organizations and also provided new leaders as
customers converted to Distributors. XANGO realized the need for both Distributors wanting to build a
business and Customers who wanted the unique products.
Customer volume was previously paid out as UniLevel volume and gave the sponsor 5%. 5% was not
enough earnings for the sponsor to support and maintain the customers. With the Customer Connect
program the customer volume is paid out the following way:
1st upline Sponsor with 100 PV
20%
2nd upline Sponsor with 200 PV/ADP
5%
3rd upline Sponsor with 200 PV/ADP
5%
4th upline Sponsor with 200 PV/ADP
5%
5th upline Sponsor with 200 PV/ADP
5%
The Sponsor of the customer gets
paid 20% every time the customer
orders. In addition to 20% on each
order, there are a couple other things
that you should know.
First, the immediate upline
Distributor is able to transfer the
volume of customers anywhere below
Global Bonus Pool
8%
them for qualification purposes.
500K Pool
2%
Since the volume is paid out through
the sponsor tree, the volume is able to
be transferred to people below you that may need volume in order to qualify.
Second, a Preferred Customer can count as a qualifying leg for a 1K if they have 100PV. In the examples
below, the 1K can transfer the volume in order to ensure they have 3 Preferred Reps or Preferred
Customers with 100PV for qualification.
9. Quantum Premier and X-1 Premier Ranks
The Quantum Premier rank is a position added in January 2009 to the XANGO Compensation Plan.
Quantum is the first rank, in the rank progression, that is based on GV6 (compressed Group Volume in 6
levels) instead of total GV. This requirement helps ensure that a distributorship is wide and stable. One
requirement is to have a GV6 of 750,000. In addition, a Quantum must have personally sponsored at least
one (1) 500K Select, one (1) 200K Select, one (1) 100K Select, and three (3) Premier Selects. A Quantum
Premier must also maintain 200 PV with an active ADP of 200 PV and have minimum monthly earnings of
$10,000USD (UniLevel + PowerStart earnings).
XANGO has added a cash bonus for this rank. Each Distributor that advances to the rank of Quantum is
eligible for a $750,000 USD bonus. This bonus is in addition to PowerStart, Unilevel, Global Bonus Pool
and 500K Bonus Pool payouts.
The $750,000 USD bonus pays out as follows: The first Distributor to obtain this rank will receive one
lump payment for the entire $750,000 USD bonus upon earning the Select title (hit for 3 consecutive
months). All subsequent Quantum Distributors will be eligible to be paid $62,500 per month for 12
months beginning their 3rd consecutive month (obtaining Select title). These payments will only be paid if
the rank is maintained each month. If a Quantum fails to qualify in one or more months in the twelve
month period, they forfeit the payment for that month.
X-1 Premier is an additional rank, in the rank progression, that is based on GV6 (compressed Group
Volume in 6 levels) instead of total GV. This requirement helps ensure that a distributorship is wide and
stable. One requirement is to have a GV6 of 1,000,000. In addition, an X1 must have personally
sponsored at least one (1) 500K Select, two (2) 200K Selects, and four (4) Premier Selects. An X1
Premier must also maintain 200 PV with an active ADP of 200 PV and have minimum monthly earnings of
$10,000USD (UniLevel + PowerStart earnings).
XANGO has added a cash bonus for this rank. Each Distributor that advances to the rank of X1 is eligible
for a $1,000,000 USD bonus. This bonus is in addition to PowerStart, Unilevel, Global Bonus Pool and
500K Bonus Pool payouts.
The $1,000,000 USD bonus pays out as follows: The first Distributor to obtain this rank will receive one
lump payment for the entire $1,000,000 USD bonus upon earning the Select title (hit for 3 consecutive
months). All subsequent X1 Distributors will be eligible to be paid $83,333 per month for 12 months
beginning their 3rd consecutive month (obtaining Select title). These payments will only be paid if the
rank is maintained each month. If an X1 fails to qualify in one or more months in the twelve month
period, they forfeit the payment for that month.
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10. Structure
Unilevel compensation plans are unique in the fact that there is no limit to the number of Distributors
you can have on a level. However, you should be careful of the number of Distributor put on the first
level. Just signing up Distributors won’t lead to success. Network Marketing is based on
relationships. Relationships are an important element of success.
Teaching and training your Distributors is very important. Understanding their needs, wants, and
dreams will help in their growth. You will only be as successful as your team. PowerStart
encourages immediate training and sharing not just the products, but of the opportunity for a home
business. Those Distributors that desire to make a business out of their experience did not decide to
do that so they would only earn $25 a month, but much more.
To maximize earnings with XANGO, you should understand how the PowerStart Commission,
UniLevel Commission and Global Pools work and interact. PowerStart leads into the monthly
residual, the UniLevel. As the UniLevel earnings grow, it is building the volume that a Distributor
will participate in the Global Pools with. The Plan itself is fairly simple, and there are some
strategies that can enhance the potential earnings. Different building techniques have been used,
some have been successful and some have been disastrous.
Because of the Dynamic Compression and the Group Volume requirement several Distributors
have built fast and deep pushing volume down to reach a rank quickly. This method has been
called Streamlining. Basically you sign up new Distributors and Place them directly below others
forming a straight line (similar to a binary structure) going down. Theoretically, this works and
volume compresses up.
However, as the Distributors in the Streamline advance rank, they cut-off compression to their
Upline. If the compression is cut-off, so is the check. Traditional theories of “if the Distributor is
getting a $10-$15 check each month, they will continue to order” don’t always work. If
somebody has built 100-200 Distributors under their position and they get cut-off from the
compression, many will not build more to reach the next rank just to get cut-off again
In tough economic times the $10-$15 is not enough. The Distributor will not spend $100 to get
$15. These people will stop ordering.
Another technique is to build extremely wide. This method keeps volume up closer to you and
will increase your earnings by putting more volume in the levels you are qualified to get paid on.
But, this method also has problems too. If you build quickly and are not able to support or train the
Distributors in your Downline, what will happen? They will stop ordering. Your group will begin to
crumble and collapse from the bottom upward. Instead of growth curves going wider, they will curve
under and erode your group. This can be just as dangerous as Streamlining. It can also cost the
Distributor their check and Downline.
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What is your vision, dream, or goal? Are you focused on minimum qualifiers or maximum earnings? Are you
building a hotdog stand on a corner or a multi-million dollar international business? XANGO pays 10% on the 3rd
level for UniLevel. Look at the differences assuming all are on 200PV:
3X3
5x5
7x7
10 x 10
Distributors on Level 1
3
5
7
10
Distributors on Level 2
9
25
49
100
Distributors on Level 3
27
125
343
1000
5,400
25,000
68,600
200,000
Volume on 3rd Level
Earnings on 3rd Level Volume
$
540
$
2,500
$
6,860
$
20,000
(Example assumes are on 200PV and earnings are in US Dollars)
You have to start somewhere, but where do you finish? The secret is to build, teach and train. Then duplicate.
Sponsoring new Distributors, teaching, coaching, and helping them grow, and then add somebody else is a simple
pattern. The table above is only 2 dimensional. There is a third dimension that plays a key role. It is TIME. If you
achieve it in a month or a year, the results are the same. Because of the simplicity, some miss the big vision and get
trapped in building minimum structured businesses that are not self-sufficient. XANGO is a Unilevel, unlimited in
width. Time is on your side.
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11. Compression
There are 4 types of Compression utilized in the XANGO Compensation Plan.
1. PowerStart Compression
The payout of PowerStart Commissions uses compression to ensure that 50% of the
commissionable volume is paid out to the Distributors. Commissions are compressed past
Distributors who are not qualified or eligible for the specific level for each payment. For more
details on how the PowerStart commission is paid out, please refer the PowerStart Commission
section of this document and accompanying examples.
2. UniLevel Compression
The payout of UniLevel Commissions uses compression to ensure that 50% of the commissionable
volume is paid out to the Distributors. Commissions are compressed past Distributors who are not
qualified or eligible for the specific level for each payment. For more details on how the
PowerStart commission is paid out, please refer the PowerStart Commission section of this
document and accompanying examples.
3. Sponsorship Compression
Sponsorship Compression applies to the qualification requirements for a Distributor. This helps by
pushing active Distributors closer to their Upline. Structure is a key element in the XANGO
Compensation Plan and can directly affect the rank that a Distributor may qualify at.
If the 1K (#3) did not order (zero volume), the bonus program looks at the personally sponsored
Distributors of #3 (who are #6, #7and # 8) and will promote the highest rank (#7) into #3’s spot for
that commission period. So the 1K (#7) would move up and fill in the position of 1K (#3). This
only applies when looking for what rank the 5K (#1) is to qualify at. The payout would be looked
at differently.
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4. Title Compression
Title Compression applies to the sponsorship qualification requirements for Distributors that are
100K or higher. Title Compression is different than Sponsorship Compression. Sponsorship
Compression only allows somebody to compress up if there is no volume on the Sponsor’s account.
Title Compression is designed to help leaders maintain the organizations they have worked hard to
build.
Title Compression works regardless if a Distributor has PV. A Personally Sponsored Distributor is
your link to the leaders below. In the example below, a 100K has fallen back to a 20K because
some of the Personally Sponsored Distributors have dropped rank.
5K below
Premier somewhere below
500K deep in your “big” leg
100K somewhere below
Premier somewhere below
With Title Compression applied to the 100K Distributor’s organization, they are able to take
advantage of the highest qualified Distributor in each leg of their downline and maintain 100K rank.
Sometimes, Distributors stop working or just quit. If an upline Distributor is counting on
that Distributor, the Upline’s qualification is now in jeopardy. They have the decision to not
qualify or to manage that leg. If that Distributor is ordering, they block anybody from compressing
up via Sponsorship Compression. With Title Compression, the upline can count the highest rank
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anywhere in the leg. There is no limit on the depth the highest ranked Distributor can compress up.
In some cases, the upline may advance title.
Title Compression Summary
•
A Personally Sponsored Distributor is your link to the leaders below. For your qualification
that link will count as the HIGHEST rank below them in the Sponsor Tree.
•
Only ONE Distributor will count for that Personally Sponsored leg.
•
A 100K that has dropped rank can utilize Title Compression to qualify at the highest rank
their organization allows. They may use Title Compression to get back to a rank or they may use
it to Advance to 200K and beyond.
20K somewhere below
20K somewhere below
•
Title Compression can be used by Distributors to advance to 100K if they have the structure
and volume in place. If the Distributor does not have the volume and structure to be a 100K,
they cannot use Title Compression to advance to 100K.
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5K somewhere below
20K and Premier Distributors can use one leg of Title Compression.
20K somewhere below
•
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12. Compensation Plan Changes
When a Distributor hears about a “change” to the compensation plan of a company, it usually takes money
from their check. A company usually changes the compensation plan to find a way to keep more money
from the Distributors. But you must evaluate the “change” to see if it was in the benefit of the company or
the Distributor. Technically, if it is in the favor of the Distributor, you would see it as an “enhancement”, but
it is still a change. XANGO has made 9 changes or enhancements. You decide if they are in the favor of the
company or the Distributor.
1)
Powerstart Qualification. In December 2002, XANGO decided to change the qualification
for a Sponsor to get paid on a new Distributor from 4 weeks to 6 weeks. Meaning, that during
the current week a new Distributor is sponsored and the 5 previous weeks the Sponsor would
have to meet the Volume and ADP requirements. This was done to prevent a Distributor from
being penalized for being on ADP. (see the PowerStart section for more details)
2)
Sponsorship Compression. In March 2003, XANGO added Sponsorship Compression
which allows a downline Distributor to compress past unqualified upline to help qualify
Distributors further up.
3)
Name Change in 2 Ranks. Customer and Preferred Customer ranks were renamed to
Representative and Preferred Representative in June, 2003. The names were changed so it
would not conflict with a Customer program to be launched later.
4)
Addition of 500K Rank and Pool. XANGO grew. The rank was added and 2% of the
PowerStart commission was put in this pool.
5)
Addition of the X1 Rank. XANGO grew again.
6)
Addition of the Quantum Rank. XANGO added a rank between 500K and X1. The
Quantum and X1 ranks use GV6 for qualification instead of just Group Volume. The Quantum
rank has a $750,000 USD bonus on it. With this change, the X1 was modified with a $1,000,000
USD bonus as well.
7)
Title Compression. Title Compression was added November, 2009. It is limited to 100K’s
and above. It is designed to help them maintain qualification and allows them to continue to
work and build in depth.
8)
Preferred Customer. With the introduction of the Preferred Customer Program, as of
January, 2010 a Preferred Customer may count as a Preferred Rep for the qualification of a 1K.
9)
Title Compression Modification. Allow the 20K and Premier ranks to use Title
Compression for 1 leg.
As you review these “changes” you will see that they are in the favor of the Distributor. XANGO has a forced
payout of 50%. It does not matter who XANGO pays it too, it will be paid out.
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13. Glossary
100K Premier – A Distributor with a minimum monthly PV of 200 and ADP of 200; 3 personally sponsored
20K’s or higher; 1 personally sponsored 5K or higher; 100,000 GV.
100K Premier Select – A Distributor that achieves all of the qualifications for 100K Premier and has a
minimum monthly UniLevel check of $5,000 (USD) for each month of the calendar quarter. The 100K pro
rata share of the Global Bonus Pool will be based on GV6 (first 6 levels of compressed volume).
1K – A Distributor with a minimum monthly PV of 100 and ADP of 100; 3 personally sponsored Preferred
Reps or Preferred Customers or higher; and 1,000 GV. A 1K is eligible to be paid UniLevel commissions on
4 levels.
See chart for further explanation
200K Premier – A Distributor with a minimum monthly PV of 200 and ADP of 200; 3 personally sponsored
Premiers or higher; 1 personally sponsored 20K or higher; 200,000 GV.
200K Premier Select – A Distributor that achieves all of the qualifications for 200K Premier and has a
minimum monthly UniLevel check of $10,000 (USD) for each month of the calendar quarter. The 200K pro
rata share of the Global Bonus Pool will be based on GV9 (first 9 levels of compressed volume).
20K – A Distributor with a minimum monthly PV of 200 and ADP of 200; 3 personally sponsored 5K’s or
higher; and 20,000 GV. A 20K is eligible to be paid UniLevel commissions on 7 levels.
See chart for further explanation
500K Premier – A Distributor with a minimum monthly PV of 200 and ADP of 200; 1 personally sponsored
200K or higher; 2 personally sponsored 100K’s or higher; 2 personally sponsored Premiers or higher; and
500,000 GV. The 100K and 200K Distributors must have achieved – and been paid at – those levels for an
entire calendar quarter before they can count towards the 500K qualification. Distributors achieving this
bonus will be paid pro rata based on their GV6 (first 6 levels of compressed volume). The bonus pool
consists of 2% of all PowerStart orders and is paid quarterly. 500K Premiers will be paid as 200K’s in the
Global Bonus Pool.
5K – A distributor with a minimum monthly PV of 100 and ADP of 100; 3 personally sponsored 1K’s or
higher; and 5,000 GV. A 5K is eligible to be paid UniLevel commissions on 5 levels.
See chart for further explanation
ADP (Automatic Delivery Program) – A preset and pre-approved order delivered to the Distributor each
month. Unconditional ADP product will be shipped on the 14th regardless of the month’s personal volume.
Conditional ADP allows the distributor to purchase product that meets or exceeds their commitment in the
ADP program prior to the 14th of each month.
Breakage – Volume that could have been paid to a qualified Distributor but was retained by the company.
Commission – Monies earned by a Distributor on sales made by Distributors within their Downline
organization. (Non-employee compensation) Handling, processing and remittance fees are subject to
deduction from commission payments. To be eligible for any compensation, a Distributor must have
achieved the monthly requirements currently in effect as detailed in the Compensation Plan.
Commission Rollup – XANGO uses “Compression” in calculating UniLevel and PowerStart compensation.
For further information please go to UniLevel Compression and PowerStart Compression.
See charts
for further explanation
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Conditional ADP – Distributors are allowed to purchase product that meets or exceeds their commitment in
the ADP program prior to the 14th of each month. If the commitment is not met, product will be shipped to
the Distributor.
Customer – See Retail Customer
Customer Connect PowerStart – Commission paid on non-Distributor orders. It is paid weekly with the
normal PowerStart Commissions. It pays through the Sponsor Tree with 20% level 1 and 5% level 2-5 and
8% to the Global Bonus Pool and 2% to the 500K Pool. In order to qualify for level 1 a Distributor must
have 100 PV. In order to qualify for levels 2-5 a Distributor must have 200 PV/ADP.
CV (Commissionable Volume) – The adjusted QV associated with any given single unit of product. This is
used to determine the commissionable amount of any given sale by a single Distributor. CV may be
translated to some value of local currency for commission payments.
Distributor – An independent contractor who is authorized to sell company products and services, and to
participate in the company’s compensation plan, as qualified, regardless of level attained in the plan, and
agrees to abide by the XANGO Policies and Procedures.
Downline – All Distributors emanating from and below any particular Distributor. Example: You sponsor
Jim, who sponsors Mary, who sponsors Ted. Jim, Mary and Ted are in your Downline.
Frontline – A Distributor who appears on the first level of your genealogy, through personal sponsorship
and/or placement.
GCV (Group Commissionable Volume) – The amount of CV accrued within a placement Downline
organization; including the distributors own CV and non-distributor sales.
Global Bonus Pool – The Global Bonus Pool consists of 3% of all commissionable volume from all orders
worldwide. The participants in the Global Bonus Pool are Premier Select, 100K Premier Select, 200K
Premier Select, 500K Premier Select, Premier Quantum Select, and Premier X1 Select. Global quarterly
commissions will be paid upon completion of the monthly UniLevel bonus run in January, April, July and
October for the previous calendar quarters.
See chart for further explanation
GQV (Group Qualification Volume) – The amount of QV accrued within a placement down-line
organization including the Distributors own QV and non-distributor sales.
GV (Group Volume) – PV for all Distributor’s and Customer’s in a Distributor’s downline (including the
Distributor’s own personal PV).
GV3 – The total compressed Personal Volume for distributors paid UniLevel commissions on levels 1
through 3. PowerStart volume is also included in GV3 (if the order would have been paid UniLevel, the
level it would have been compressed and paid out is where the PowerStart orders are included for GV3).
GV6 – The total compressed Personal Volume for distributors paid UniLevel commissions on levels 1
through 6. PowerStart volume is also included in GV6 (if the order would have been paid UniLevel, the
level it would have been compressed and paid out is where the PowerStart orders are included for GV6).
GV9 – The total compressed Personal Volume for distributors paid UniLevel commissions on levels 1
through 9. PowerStart volume is also included in GV9 (if the order would have been paid UniLevel, the
level it would have been compressed and paid out is where the PowerStart orders are included for GV9).
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Initial Order – The first sales order placed by a Distributor that has commissionable volume attached to it;
such as the first sale of a case of XANGO. If the initial order is placed within 30 days from the date of signup, the commissions will be paid using the PowerStart calculations. If the initial order is placed after 30 days
from the date of sign-up, the commissions will be paid using the UniLevel calculations.
Leg – The Downline of any directly sponsored Distributor. There may be multiple legs sponsored by a
Distributor. If a Distributor recruits five other Distributors, placing them on his first level, each recruit
comprises a Leg of the sponsor. Leg is also used to signify a single chain of Distributors where “A”
sponsors “B” who sponsors “C” who sponsors “D”, etc. Together they are referred to as a Leg.
Member – A rank of a Distributor. A Member has less than 100 PV.
Minimum Monthly Group Volume Requirement – The minimum amount of volume per month the
Distributor needs to have in his group, including personal volume, through specified levels in order to
qualify for commissions for a specific title.
Minimum Monthly Personal Requirement – The minimum amount of volume the Distributor needs to
have in his personal account during the month for qualification of commission for a specific title.
Non-Distributor Sales Profit – The difference between the wholesale price a Distributor pays to XANGO
for an item, and the suggested retail price the Distributor charges his customers for the item. If the retail sale
is processed by XANGO’s retail program the volume counts as front line, first level volume. The difference
between the wholesale and retail is sent to the distributor, less a fee for company expenses.
Non-Distributor Sales – Sales made to non-distributors/end consumers.
Placement Tree – The Downline of any Distributor based on placement.
Placement Upline – The single line of Distributors between you and the company based on placement. A
support group for Downline Distributors and is responsible for training.
Point – Unit of measure assigned to any given product to quantify the value of that product for commissions
and qualification. Currently, in the USA 1 point = $1.00 USD.
PowerStart – A commission that is paid 2 levels to the sponsors of a new Distributor on the first sale with
volume that is made within 30-days of the new Distributors joining XANGO. This is paid out the following
week. This should encourage the sponsor to make sure that the new Distributor is trained as soon as they
join XANGO. If the initial order is placed after 30-days, it is paid out as a UniLevel order.
See chart for further explanation
PowerStart Compression – Compression is designed so there is no breakage in the compensation plan and
the entire amount reserved to be paid out as compensation is paid out. Where a Distributor, Upline from the
sale, does not qualify for payout under the compensation plan, the amount would then be paid out to a
qualified Upline Distributor. The PowerStart Compression is used to pay the Sponsor Upline.
See chart for further explanation
Preferred Customer – A Retail Customer who has paid a membership fee. A Preferred Customer may
purchase at the wholesale price. Preferred Customers do not earn commissions. Orders placed by Preferred
Customers are paid Customer Connect PowerStart and count as first level for their Sponsor. If they become
a Distributor, their next order will be paid PowerStart.
Preferred Representative – A Distributor with a minimum monthly PV of 100 and ADP of 100. A
Preferred Representative is eligible to be paid UniLevel commissions on 3 levels.
See chart for further explanation
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Premier – A Distributor with a minimum monthly PV of 200 and ADP of 200; 2 personally sponsored 20
Ks or higher; 1 personally sponsored 5K or higher; and a minimum of 50,000 GV. A Premier is eligible to
be paid UniLevel commissions on 9 levels.
See chart for further explanation
Premier Select – A Distributor that achieves all of the qualifications for Premier and has a minimum
monthly UniLevel check of $2,500 (USD) for each month of the calendar quarter. The Premier pro rata
share of Global Bonus Pool will be based on GV3 (first 3 levels of compressed volume).
Pro Rata Share – The actual calculation of the amount a qualified pool participant receives is determined by
adding up all the GV volumes allowed for each participating Distributor. This gives them a total pool
volume. Then the amount contributed by each participant is divided by this total pool volume, resulting in
an individual Distributor percentage. The Distributor’s percentage is then multiplied by the total dollar
amount in the Global Bonus Pool, which results in a specific bonus amount.
See chart for further explanation
PV (Product Volume) – The amount of commission value traditionally associated with any given product.
This is a co-efficient of CV & QV. Historically, there was a 1:1 relationship between CV & QV. This is
expressed in points.
Qualification - A combination of CV and QV requirements to be eligible for a commission check in any
given period.
Quarter – The year is divided into 4 quarters for bonus qualifications. They are January, February and
March; April, May and June; July, August and September; October, November and December.
QV (Personal Qualification Sales Volume) – The amount of points associated with any given single unit of
product for the purpose of determining eligibility of a Distributor to receive a commission check and/or
participate in certain pools or promotions.
Rank – Paid as title for any given month.
Representative – A Distributor with a minimum monthly PV of 100. A Representative is eligible to be paid
UniLevel commissions on 2 levels.
See chart for further explanation
Retail Commission – See Non-Distributor Sales Profit. Monies earned by a Distributor on retail sales.
Specifically, the amount collected that is greater than the wholesale amount paid for the product.
Retail Customer – a Non-Distributor purchasing product from a Distributor or directly from XANGO at the
Retail Price.
Retail Sales – See Non-Distributor Sales. Product purchased by a person that is not a distributor of
XANGO.
Split – The difference between the CV and QV for any given product expressed as a ratio or percentage.
Splits are usually used in foreign markets taking into consideration fluctuating currencies and exchange
rates, and additional costs relative to that market.
Sponsor – Any Distributor who has enrolled another Distributor in the XANGO program. Responsible for
the training and support of Downline.
Sponsor Tree – The Downline of any Distributor based on sponsorship.
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Sponsor Upline – The single line of Distributors between you and the company based on sponsorship.
Support group for Downline and is responsible for training.
Sponsorship Compression – For qualification purposes only, when a sponsored Distributor is “inactive”
(no PV for the current period), the compensation plan looks to the “inactive” Distributor’s personally
sponsored Distributors identifying the one with the highest qualifying rank for that period and compresses up
for qualification. Sponsorship compression is limited to one Distributor compressing up to fill one position
per leg. See chart for further explanation
Compression – XANGO has 4 types of Compression. They are UniLevel Compression, PowerStart
Compression, Sponsorship Compression and Title Compression. Each one of these is described in detail
under their individual names.
Suggested Retail Price (SRP) – The price XANGO recommends Distributors charge their Non-Distributor
Sales customers for company products and services.
Title – Highest rank/title achieved.
Unconditional ADP – Product automatically shipped on the 14th regardless of the Distributors personal
volume for that month.
UniLevel – Monthly commissions paying 47% through 9 compressed levels on all orders (excluding orders
paid as PowerStart) to qualified distributors based on the placement tree.
See chart for further explanation
UniLevel Compression – Compression is designed so there is no breakage in the compensation plan and the
entire amount reserved to be paid out to Distributors as compensation is paid out. Where a Distributor,
Upline from the sale, does not qualify for payout under the compensation plan, the amount would then be
paid out to a qualified Upline Distributor. UniLevel Compression is used to pay the Placement Upline.
Compression does apply in Non-Distributor Sales and is paid out to the Placement Upline similar to the
UniLevel pay out.
See chart for further explanation
Upline – The single line of Distributors between that Distributor and the company. Support group for
Downline and is responsible for training. See Placement Upline and Sponsor Upline.
Wholesale (Distributor Cost) – The price XANGO LLC charges Distributors for products.
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14. Forms & Handouts
1.
2.
3.
4.
5.
6.
7.
3x3 vs. 5x5
PowerStart Commission Compression Quiz
UniLevel Commission Compression Quiz
Global Bonus Pool Diagrams and Sample Payout
Sponsorship Compression
4 Things to teach new Distributors
Action Plan
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PowerStart Payout and Compression
This example represents the Sponsorship tree and assumes that A sponsored
B who sponsored C who sponsored D who sponsored E. E being a new
distributor placing a 100PV order within 30-days of signing up.
% Payout
(D without ADP)
% Payout
(D with ADP)
______%
200 PV
200 ADP
A
200 PV
200 ADP
______%
______%
100 PV
200 ADP
B
100 PV
200 ADP
______%
______%
100 PV
100 ADP
C
100 PV
100 ADP
______%
______%
100 PV
NO ADP
D
100 PV
100 ADP
______%
______%
E
100PV
______%
45 %
+
45 %
3%
Global
Pool
2%
500K
Pool
3%
+
50 %
This diagram shows
1. PowerStart Compression
2. Distributors do not get paid on their own orders
3. Importance of 200 ADP
4. 3% & 2% to respective pools
2%
50 %
Level
Paid
PowerStart “Basic”
2
25% 200PV & 200 ADP
15% 200PV & 200 ADP
1
20% 100 PV
30% 100 PV & 100 ADP
Version 2011.10.18
PowerStart “Plus”
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Version 2011.10.18
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4 things to teach new distributors:
1.
Make a list 4-5 people you would go into business with.
a. These are people that you would go into business with. Whether it was a restaurant,
consulting business, or retail store.
b. Identify: occupation, family (married, single, children), education, languages spoken,
nationality, hobbies, interests, car they drive, clubs/memberships, etc.
c. Identify: reasons why you put them on the list. Why they are so important to you –
communication skills, experience, knowledge,
d. It may take us working together for 2-3 months to bring them into the business.
2.
Make a list of all the products in your market.
a. If the products have volume on them, you can earn commissions on them.
b. If the people are in a different market, you will need to know what products are available to
them.
3.
Expand the product list by adding the benefits of each
product.
a. Take time to review all the corporate materials available for each product
(http://www.xango.com/opportunity/distributor-resources) and familiarize yourself with the
background and benefits of each.
b. Familiarize yourself with the science and research on Mangosteen and Xanthones
(www.thewholefruit.com).
c. Claims are not allowed, but you can learn for your own knowledge about how the products
have helped other people.
4.
Expand the list again by adding 4-5 people for each benefit
a. These people become potential customers (20% each time they order).
b. Become familiar with the Policies & Procedures and come up with a compliant approach for
contacting these potential customers.
Version 2011.10.18
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Version 2011.10.18
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