Compensation Plan Changes - EN 2023

Q

How is the personal customer retention calculated?

A It is a 3-month average of the monthly retention rate of your personally enrolled Customers. Any inherited Customers are excluded from this calculation.

Here is an example:

January 2023

February 2023

March 2023

Beginning Personally Enrolled Preferred Customers Personal Customers that cancelled Personally Enrolled Customers that are still Preferred Personal Customer Retention Rate 3-Month Personal Customer Retention Rate

117

120

114

(6)

(10) 110

(7)

111

107

94.9%

91.7%

93.9% 93.5%

Q Is there a requirement for my new personal Director or Director 3 to hold Status? A Yes. Your personal Director or Director 3 must retain their Status of Director or Director 3 in each month you qualify to receive the bonus. For example, if you helped John (a personally enrolled Customer) to advance to Director status in February, John needs to be at Commission Rate Director or above in March for you to qualify for the Critical Activity Bonus in March (unless you develop another new Director or Director 3 in March). In this same example, if John advances to Director in February, but is unable to maintain that Status and becomes a Commission Rate Product Advocate 3 in March, then regains Director status in April, he will qualify as your new Director in February and April. The calculation simply looks to see if you’ve developed a Director or Director 3 in the past 3 months, and as long as their Commission Rate is equal or greater in the current month, you will meet that qualification. Q Can the same personal enrollee help me to qualify when they advance to Director and again when they advance to Director 3? A Yes! Your new Director could meet the qualification as a new Director for 3 months, and when they advance to Director 3, they can help you qualify for another 3 months. The calculation simply looks to see if you’ve developed a Director or Director 3 in the past 3 months, and as long as their Commission Rate is equal or greater in the current month, you will meet that qualification.

Q Can I receive the Critical Activity Bonus in any of my first two months at Melaleuca? A No. Marketing Executives can qualify for the Critical Activity Bonus beginning in their third month.

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