Compensation Plan

Transcription

Compensation Plan
Compensation Plan
The Brilliance of Nature
Enhanced by Science
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Take Action
There are several components to the Legacy for Life Compensation plan that
reward Distributors for taking action. The plan rewards Distributors for selling
product, recruiting new members and Distributors, and for helping team members
advance within the system.
Practice the
S.T.I.R. it up system for success:
Share.Tell.Invite. Repeat.
And earn compensation in 6 ways.
1. Retail Sales
2. Quick Start Enrollment Bonus
3. Dynamic Residual Income
4. Team Development Bonus
5. Revenue Sharing Pools
6. Dream Car Reward
Glossary of Terms
Automatic Delivery Program (ADP) - The convenient autoship option that allows
customers and team members to receive product monthly. Product is shipped
on a pre-determined day each month without having to place an order each time
and charged to a credit card held securely in our system. Autoship dates can be
changed or adjusted by contacting our Distributor Support Department.
Commisionable Volume (CV) - The point value associated with each Legacy
for Life product and used to calculate commissions. The Pricing, Point and
Commission Chart for Legacy products can be found in iOffice. CV is generally
80% of Distributor price.
Enroller - The member who has signed up a new customer, member, or Distributor
and, if qualified, receives the Quick Start Enrollment Bonus for that new enrollment.
Enroller’s Sponsor - The distributor who brought the Enroller into the business. The
Enroller’s Sponsor receives compensation in the Quick Start Enrollment Bonus
portion of the compensation plan.
Group Volume (GV) - The point volume of all distributors and customers in the
distributor’s organization. GV is used to calculate rank advancement.
Leg - Any first level downline Distributor and any Distributor in that downline. If there
is a Distributor in that Leg that is paid as a Silver Star, the Leg would be considered
a Silver Leg.
Levels - Levels include the Guide Level (Member, Associate, Guide, Guide Leader),
Star Level (Silver Star, Gold Star, Platinum Star), and Elite Level (Ruby Elite, Emerald
Elite, Sapphire Elite). A chart explaining rank and level advancement can be found
at legacyforlife.com in the compensation section.
Member - An individual who has paid the $29.95 annual membership fee entitling
them to purchase the Legacy for Life products at a wholesale price. A member
can also enroll new members and is eligible for product commissions on level 1 if
they are on a minimum 85 point ADP.
Points - Each product in the Legacy for Life portfolio is assigned a point value. The
point value for each product is the same anywhere in the world. The Pricing, Point and
Commission Chart for Legacy products can be found in iOffice.
Revenue Sharing Pools - 3% of the company’s Commissionable Volume is divided
equally into 3 separate pools: 1% in the Ruby Elite Pool, 1% in the Emerald Elite Pool,
and 1% in the Sapphire Elite Pool. Distributors in each rank earn shares of their pool
based on the number of Silver Star or higher legs in their organization.
Personally Enrolled - Those team members that have joined your organization on your
first level and signed up with you directly.
Personal Volume (PV) - The point value associated with your personally purchased
products. Every Distributor is required to meet a minimum PV in order to receive
commissions.
Qualified/Active Distributor - A Legacy for Life member who has purchased either the
$149 Kit or the $499 Business Builder Kit. A Member may also become a Distributor by
enrolling 2 members, plus 500 points gross voulme.
Rank - Position attained by reaching the requirements for each rank level. There are
greater rewards with each rank level advancement.
Star Level - “Middle Management” at Legacy for Life. It includes the ranks of Silver Star,
Gold Star and Platinum Star.
Team Development Bonus - Bonuses of 10% - 25% that are paid to Star and Elite Level
Distributors which are earned by helping team members reach the Star ranks. The Team
Development Bonus is paid on all Silver Star groups that are developed in the Distributor’s
downline 6 generations deep. There is no limit to the number of Silver Star Legs that can
be developed and bonus payments can be earned by a Distributor to the bottom of
their downline. This bonus is calculated as a percentage of the cumulative product sales
commissions of all members of each Silver Star group. See details in iOffice.
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1.
Retail Sales
Product Sales Compensation
The first way to earn is simple. As a Legacy for Life member you have the right to buy product at the
wholesale price and sell at retail. You keep the difference. As an example, one can of i26 is $39.99
wholesale and $49.99 retail. Each can you sell directly results in a $10 profit.
2. Quick
Start Enrollment Bonus
You can earn as much as $130 when a new member invests in one of our business systems. Each time
one of your personally enrolled team members shares the business you will earn as much as $20 as that
enroller’s sponsor (see chart below).
Others within your organization also earn when the team expands. A Qualified Distributor* is eligible
for these bonus payments from day one! This is one of the components that helps us have a balanced
system. By earning every time your team expands, it gives you time to build the strong foundation
needed for a successful long term business. Everyone in the organization is eligible for this bonus income
from brand new team members all the way up to Elite level distributors.
$149 Basic Kit
$499 Premium
Business Builder Kit
$42
$130
Enroller’s Sponsor
$4
$20
Guide
$4
$20
Guide Leader
$4
$20
Silver Star
$2
$10
$56
$200
Enroller
Total Payout
* The Quick Start Enrollment Bonus (QSEB) is paid to “Qualified Distributors.” A Qualified Distributor
means a Distributor that has (i) met the Active qualification; (ii) purchased either the Basic or
Premium Business Builder Kit, or attained the rank of Guide. The QSEB is paid to the first qualified
distributor in the upline at each of the ranks or higher.
A Qualified Distributor may receive the payment for multiple levels if that Distributor is the first
Qualified Distributor of that rank or higher in the upline. For example, if a Gold Star distributor
enrolls a new distributor who purchases a Premium Business Builder Kit, that Gold Star Distributor
would receive the bonuses for the Enroller, Guide, Guide Leader, and Silver Star.
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$10
to Silver Star
$20
to Guide Leader
$20
to Guide
$20
to Enroller’s
Sponsor
$130 to Enroller
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3. Dynamic
Residual Income
Two types of Residual Income are developed with this plan.
Personal Residual Income
A 10% commission is paid on all product orders placed by any personally enrolled team member,
including both Automatic Delivery and additional orders placed throughout the month. This first
level of our residual compensation is the richest ensuring that your own personal action is given the
greatest reward. All personally enrolled Retail Customers, Members, and Distributors are placed
on your first level.
Team Residual Income
Each time one of your personally enrolled team members sells product, you earn a commission of
6% on those transactions. These team members are your second level. The chart below shows the
percentage of commission you earn with each level as you advance.
Rank
Member Associate
Guide
Guide
Leader
Silver
Star
Gold
Star
Platinum Ruby Emerald Sapphire
Star
Elite
Elite
Elite
Level 1
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
Level 2
6%
6%
6%
6%
6%
6%
6%
6%
6%
Level 3
5%
5%
5%
5%
5%
5%
5%
5%
Level 4
5% 5%
5%
5%
5%
5%
5%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
Level 5
Level 6
5%
Level 7
YOU
Example of 2 Levels
Level 1
Level 2
6%
6%
10%
6%
10%
6%
10%
6%
10%
6%
(Your Personally Enrolled Team Members)
6%
6%
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4. Team Development Bonus
Qualified Star and Elite Distributors are eligible to earn a Team Development Bonus based on the Dynamic
Residual Income earned by all the members of their Silver Star Groups. The Team Development Bonus
pays you for helping your team members develop their business and advance within the system. You are
paid on the Silver Star groups that are developed in your downline down to 6 generations based on the
number of the Silver Star legs you develop. (See illustration below.)
As an example: If you have developed 1 Silver Star and the cumulative commissions paid to everyone on
that team is equal to $10,000 in Dynamic Residual Income from product sales, you would receive a 10%
match which equals a $1,000 bonus.
Generations
1
2
1 Silver
Star Leg
10%
2 Silver
3 Silver
4 Silver
5 Silver
Star Legs Star Legs Star Legs Star Legs
6 Silver
7 Silver
Star Legs Star Legs
10%
25%
25%
25%
25%
25%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
3
4
5
6
10%
Bonus is based on product sales compensation paid through the 7 level Dynamic Residual Income plan. Compensation earned
from the enrollment bonus or retail commissions outside of the Dynamic Residual Income plan are not used in the calculation of
this bonus. All Distributors and Silver Star teams must be active and qualified in the previous month to qualify.
This illustration represents one (1) Silver Star
Leg with one generation.
Develop 3 Silver Star Legs and your
bonus jumps from 10% to 25% on
your first generation.
YOU
(Unlimited)
(Your Personally Enrolled Team Members)
Example: If Dynamic Residual Income
paid to all Distributors in this group
equals $13,200, you receive a $1,320
Team development Bonus.
SS
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You are paid a bonus on the Dynamic
Residual Income of each and every
Distributor in the Silver Star group outlined.
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5. Revenue Sharing Pools
Elite Distributors are eligible for a share of all Commissionable Volume of the company. Three percent
(3%) of the company’s Commissionable Volume is divided into three separate pools: Ruby Elite Pool,
Emerald Elite Pool and Sapphire Elite Pool. Each pool is exclusive to that rank.
1%
Ruby Elite Distributors share the pool based upon
the number of Silver Star Legs they have developed.
1%
Emerald Elite Distributors share the pool based upon
the number of Gold Star Legs they have developed.
RUBY
ELITE
EMERALD
ELITE
1%
SAPPHIRE
ELITE
Sapphire Elite Distributors share the pool based upon the
number of Platinum Star Legs they have developed.
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6.
Dream Car Reward
Your drive to the top gives you the ability
to drive off in a new Mercedes Benz.
Elite Level Distributors earn a car allowance based on the number of separate Gold Star
(or higher) Distributors in their organization. As you help team members succeed, you
earn a car allowance of up to $2,000 a month.
Gold Star Legs
Allowance
2
$500
4
$750
6
$1,000
8
$1,500
10
$2,000
Distributors must qualify each month for the Dream Car Bonus. The allowance begins after Distributor has qualified for 3 months (bonus begins in 3rd month).
The Distributor must qualify in the current month and have qualified 3 of the last 4 months (including the current month) in order to receive the Dream Car Bonus.
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Rank Qualifications
Guide Level Ranks
Build a solid foundation through sales and recruiting
Member
A member has the right to buy product at the wholesale price. To become
eligible to receive commissions (an active member) they must participate in
our Automatic Delivery Program (ADP) with a minimum monthly order of 85
points.
Associate
ADP of 85 points, personally enroll 1 Active Member and have Group Sales
Volume (GSV) of 500 points.
Guide
ADP of 85 points, personally enroll 2 Active Members and have GSV of 2,000
points.
Guide Leader
ADP of 85 points, personally enroll 2 Active Associates, and have GSV of
8,000 points.
Star Level Ranks
Build, manage and lead
Silver Star
ADP of 200 points, personally enroll 6 Active Associates, 2 Guide Leader
Legs and have GSV of 20,000 points.
Gold Star
ADP of 200 points, personally enroll 6 Active Associates, 1 Guide Leader Leg
and 1 Silver Star Leg and have GSV of 40,000 points.
Platinum Star
ADP of 200 points, personally enroll 6 Active Associates, 2 Silver Star Legs
and have GSV of 60,000 points.
Elite Level Ranks
Lead, train and mentor
Ruby Elite
ADP of 200 points, personally enroll 6 Active Associates, 2 Gold Star Legs
and have GSV of 150,000 points.
Emerald Elite
ADP of 200 points, personally enroll 6 Active Associates, 2 Platinum Star
Legs and have GSV of 300,000.
Sapphire Elite
ADP of 200 points, personally enroll 6 Active Associates, 2 Ruby Elite Legs
and have GSV of 500,000.
ADP - Automatic Delivery Program
GSV- Group Sales Volume
Active - Must meet minimum auto ship requirements each month
No more than 50% of GSV can come from any one Leg for all Guide
or higher ranks. All Distributors must be qualified.
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Compensation Plan
FAQs
1. What type of compensation plan does Legacy for Life
use?
The Legacy for Life compensation plan is a combination of
components designed to pay commissions and bonus payments
for selling product, recruiting new team members and helping team
members advance. Personal and Team Residual Income is earned
through a 7-tier unilevel plan.
2. How is compensation earned in the plan?
The Legacy for Life compensation plan allows you to earn in 6 ways:
Retail Sales, Quick Start Enrollment Bonus, Dynamic Residual
Sales Commissions, Leadership Development Bonuses, Revenue
Sharing Pools and Dream Car Rewards.
3. What is the difference between Legs, Levels, and
Generations?
A Leg is any 1st level enrollment; you can have an unlimited number
of Legs. Level refers to what level in your group a Distributor is. ie:
you enroll Bob (your 1st level) who enrolls Sue (your 2nd level) who
enrolls Betty (your 3rd level) and so on. Generation: If you develop
your 1st Silver Star on your 5th level the Silver would be your 1st
generation Silver, if that Silver develops Silver on their 4th level below
them, this would be your 2nd generation, and so on. The Legacy for
Life compensation plan pays you to work wide and deep.
4. How often do I get paid?
The Quick Start Enrollment Bonus (new enrollments) is paid weekly
on all enrollments processed that week (Monday through Sunday).
Retail commissions are also paid weekly. Dynamic Residual
Income, Team Development Bonus, Ruby, Emerald, and Sapphire
Pool Bonus, and the Mercedes Car Bonus are all paid monthly.
5. How do I receive my commissions?
The fastest and easiest way to receive commissions and bonus is
to enroll in the direct deposit option. This allows LFL to put your
money directly into your checking account. You can also receive a
paper check delivered by mail. There is a $2.00 fee deducted from
each paper check.
6. How much can I earn as a Legacy for Life distributor?
One of the most rewarding aspects of being involved with Legacy
for Life is that there is no limit to your income or your success.
Based on your time and desire to build and coach your team, you
decide your income. Freedom and flexibility with Legacy for Life
put you in control of your success.
7. Can I have the cost of my products deducted from my
commissions?
8. How many dollars do I need to spend to qualify to
receive commissions?
The recommended standard Automatic Delivery Program (ADP)
pack has a Point Value (PV) of 85PV, the dollar cost to you is $108
plus shipping and handling.
9. Do I have to purchase one of the kits to begin earning
commissions?
No, a member can earn 1st level commissions if they participate in the
Automatic Delivery Program. However, the only way to immediately
qualify for the Quick Start Enrollment Bonus is to purchase a kit.
10. Do I have to be on the Automatic Delivery Program
(ADP) to earn commissions?
No, as a Guide Leader or lower rank not on an 85 PV ADP, you can
qualify by making a 200PV purchase, or if you are a Silver Star or
above and do not have an active 200PV ADP, you can purchase
350PV monthly to meet the qualification to receive commissions.
11. When will my 1st auto ship arrive?
Your Basic or Premium kit will ship within 1 business day after LFL
receives your application. This shipment includes your 1st 30 day
supply of LFL products, your 1st monthly ADP will ship approximately
30 days later.
12. If I enroll someone before my 1st ADP is shipped in 30
days will I still receive my Quick Start Bonus?
Yes, the kit you purchased when you enrolled qualifies you for the
1st month to receive commissions and bonus.
13. What happens to my commission / points for a Leg on
my team if a Distributor in that Leg becomes inactive?
The “Quick Start Bonus” and the “Dynamic Residual Income” bonus
that would have been paid to the inactive position rolls up to the next
qualified active Distributor.
14. Can I enroll people anywhere in the country?
Yes you can, LFL also has operations in Canada, China, Taiwan,
and Hong Kong. You can enroll distributors in any country that LFL
is authorized to conduct business.
15. Do I need to be a distributor to purchase Legacy for
Life products?
No, you can purchase as a retail customer or as a member.
16. Is there a website that explains the compensation plan
in more detail?
Yes, www.LegacyforLife.com.
Not at this time.
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Legacy for Life
Payment
The Quick Start Enrollment Bonus is paid weekly, one week from the Monday following the
cutoff. The cutoff is Sunday at midnight Eastern Time. Example: Order cutoff is midnight
(11:59 p.m.) on Sunday, June 3rd. The Quick Start Bonus payments will mail/deposit on
Monday, June 11th.
Retail Commissions are paid weekly on the same schedule as the Bonus payments.
Dynamic Residual Income commissions, Team Development Bonus, Leadership Pools and
Auto Allowance are paid monthly on the 15th of the following month.
Minimum check amount $30. If commissions do not total $30, commissions are accrued
until they do for payment the following month.
Check charge is $2 if direct deposit option is not chosen.
There is a 20% distributor commission surcharge on retail orders placed directly with the
customer service department.
Other
Points from the Kits count for rank advancement and the Pools but are not included in the
Dynamic Residual Income commissions. The $149 Kit has 50 points. The $499 Kit has 200
points.
Basic Kit and Premium Business Builder Kit will each contain one “Standard Autoship Pack”
(2 cans i26 and 1 bottle Flex).
$499 Premium Business Builder Kit contains – 1 Standard Autoship Pack, 40 Share Packs,
and sales materials. $149 Basic Kit contains - 1 Standard Autoship Pack, 5 Share Packs,
and sales materials. Basic Kit does not include a personalized website.
New distributor must pay $29.95 membership fee. Annual renewal fee is $29.95. Renewal
fee is automatically deducted from the commission check on the anniversary date.
Share Pack Refills – Qualified Distributors are eligible to purchase Share Pack Refills. Each
refill will contain 20 packs for $200. Distributors who purchased a Premium Business Builder
Kit are eligible to purchase packs at a 50% discount, $100 per refill.
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This is about your success.
You’ve taken the right step to join the right company at the right
time. There’s no better time for the wellness industry than now
and no better product than i26®.
Welcome to your new business. Welcome to Legacy for Life.
1-800-557-8477 | LegacyForLife.com