Compensation Plan 2021 - English

The fine print: Things you need to know When you are dealing with a programme that has already paid out over € 4.8 billion / £ 4.2 billion , you’ve got to expect there’s going to be a little fine print just to make sure our people are representing our company and products ethically and honestly, and to make sure those who are paid substantial amounts are involved in the endeavor of helping others. So here it goes…

Definitions:

Active Customer: A customer who has completed and returned a Customer Membership Agreement and purchases at least 29 Product Points during the calendar month. Commission Rate: The Status at which a Marketing Executive is paid in any month because the Marketing Executive has met all the qualifications to be paid at that Status. Marketing Executive: A person who has completed, executed, and delivered to Melaleuca an Independent Marketing Executive Agreement; has a personal enrolee who is an active customer and has received his/her first commission cheque. Marketing Organisation: The seven generations of customers and Marketing Executives directly below you. New Growth: The increase in Preferred Customers in a Marketing Executive’s Marketing Organisation excluding roll ups and organisation moves (i.e. enrolments – cancellations + reactivations = New Growth). Organisation Volume: The total Product Points from products purchased in a Marketing Executive’s organisation in a calendar month.

Personally Enrolled Customer: A customer you personally referred to Melaleuca and who has you listed on his/her Customer Agreement as his/her enroler. Preferred Customer: A customer who has stipulated in the Customer Agreement that the customer is committed to purchase at least 35 Product Points per month. In addition to many other benefits, Preferred Customers receive a 30% to 50% discount on Melaleuca products. Preferred Retention Rate: The percentage of all customers in the organisation who were preferred last month who are preferred in the current month. Product Point: A value assigned to each Melaleuca product upon which commissions and bonuses are calculated. Quality Customer: A customer who enrolled as a Preferred Customer, and ordered product from Melaleuca in the customer’s first month of enrolment.

To Enrol a Quality Customer: A quality-enrolled customer will have all necessary paperwork, their own method of payment on file and they will have fulfilled their monthly Product Point commitment by placing an order in their first month. True PEG (True Personal Enrolee Group Volume): The total Organisation Volume of a Marketing Executive’s Personal Enrolees in any given month. (Contrary to how “PEG” is calculated, “True PEG” counts each customer’s monthly purchase volume only once, even though that customer might be under several personal enrolees in the Marketing Organisation).

Additional First-Generation Positions A Marketing Executive will earn an

commission available. Directors or above with Organisation Product Points greater then 20 000 but with PEG Volume less than their Organisation Volume receive an Organisation Commission of 10% or more of their PEG Volume depending on the Leadership Points in the current month. Critical Activity Bonus Director 3 and above can qualify for the Critical Activity Bonus once they have been with Melaleuca for a minimum of 3 months. Your Personal Customer Retention is determined by the number of Active and Preferred Customers that shopped last month that shop again this month (excluding inheritances). Your New Preferred Customers need to be from your local market. The New Leadership you develop and maintain needs to be from the local market. Growth from your Personal Customers excludes inheritances and growth from your organisation excludes rollups. Programme Interpretation Interpretation of this brochure and Melaleuca’s Compensation Plan is at Melaleuca’s complete discretion.

Leadership Meetings Training, education, and knowledge are essential for leadership positions in any business or organisation. Senior Directors, Executive Directors, National Directors, and Corporate Directors must attend leadership meetings in order to qualify for bonuses. Mentoring Bonus For you to qualify for the Mentoring Bonuses, your advancing Marketing Executives must advance within two months after achieving the required Organisation Volume for that Status, and you must have a Commission Rate equal to or higher than that of the advancing Marketing Executive for whom you are being paid. Mentoring Bonuses are paid based on the same percentage as the Advancement or Pacesetter Bonus of the advancing Marketing Executive and are paid in the same month the advancing Marketing Executive is paid. Leadership Required Directors who produce less than one Leadership Point in the last three months may earn up to £/€ 100 in Organisation Commission. Marketing Executives 3 may earn up to £/€ 75, Marketing Executives 2 up to £/€ 50 and Marketing Executives up to £/€ 25 Organisation Commission. Policies This Compensation Plan is subject to Melaleuca’s Policies and Procedures and all Marketing Executive agreements. This brochure is not intended to be a complete explanation of Melaleuca’s Compensation Plan for its Marketing Executives. Leadership Points Required for Leaders Directors or above who have achieved 20 000 or more Organisation Product Points are required to produce an average of 10 Leadership Points per month. Directors and above with an Organisation Product Points Volume of 50 000 or more will be required to produce an average of 15 Leadership Points per month in order to receive all of the Organisation Commission available to them. Those producing fewer Leadership Points will receive a percentage of the total

additional first-generation position (over the original five) for each active personally enrolled Director or above. Advancement Bonus Payout Directors through Directors 6 will be paid their Advancement Bonus in the month of advancement. Directors 7 and above who have an Organisation Retention Rate of 90% or higher will receive one-third of the Advancement Bonus or Pacesetter Bonus in the month of advancement, one-third the second month and one-third in the third month (assuming they maintain that status for 3 consecutive months). Others will be paid after they have maintained the new Status for three consecutive months. Marketing Executives are eligible to receive a maximum of three one-third payments at the same time starting at Director 7. In order to receive bonuses held in reserve the Marketing Executive must be eligible for that payment in the month the commissions are to be paid out. No commissions paid on Backup Orders during first three-months Commissions will only be paid on a customer’s first three-months of purchases if the customer actually places an order. In other words, Backup Orders are not commissionable in the first three-months. Car Bonus There are specific guidelines for the type of car that will qualify. For details go to eu.melaleuca.com and click on the Business Center. You’ll then find Car Bonus Programme under our Celebrating Success section. Limits on Order Size Commissions are paid on the first 150 Product Points that a customer purchases each month. No commissions are paid on amounts exceeding 150 Product Points. A Marketing Executive’s Organisation Volume Calculations will include a maximum of 150 Product Points per month per Customer/ Marketing Executive.

Quality Enrol: To enrol a Quality Customer.

Qualification for Commissions: In order to receive commissions a Marketing Executive must have met all the qualifications as a defined “Marketing Executive” and have one active personal customer. Marketing Executives without an active personal customer in the month will receive commissions up to £/€ 15 paid in Loyalty Shopping Rewards.

Personal Customer Retention Rate: The percentage of Active and Preferred

Personal Customers who were preferred last month who are preferred in the current month.

Status: The highest Commission Rate that a Marketing Executive has ever achieved.

Personal Enrolee: Same as a Personally Enrolled Customer.

Support Team: The seven Marketing Executives above an individual in a Marketing Organisation who have the potential to receive commissions based upon the purchases of that customer. To Enrol: The process of completing and submitting a Customer Membership Agreement.

PEG (Personal Enrolee Group Volume): The total Organisation Product Point volume of a Marketing Executive’s personal enrolees in any given month. Personal Production: To qualify for commissions, a Marketing Executive is required to “personally produce” revenue of at least 29 Product Points per month.

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A MARKETING REVOLUTION! The Melaleuca Compensation Plan

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