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Friday, December 31, 2010

Compensaton Plan Glossary of Terms

COMPENSATION PLAN GLOSSARY OF TERMS

Achieved Rank: The highest rank a Brand Partner has obtained since their initial enrollment.

Advancement Volume (AV): A value assigned to commissionable services that is used to determine advancement status,qualification status and rank.

Active: A Brand Partner is considered Active for a specific month if they have 40-120 PBV in the month.

Auto-Delivery: A service provided by Network Marketing companies that automatically ships products on a monthly basis to Brand Partners.

Bankable: A term used to indicate that a Brand Partner is allowed to accumulate Left-GV and Right-GV that is necessary for earning the Two Team Bonus.

Brand Partner: A person or business entity that is enrolled to market and sell Network Marketing Products. Brand Partners are entered in the database with their own unique user identification number and may enroll other Brand Partners into Network Marketing. A Brand partner can be also be a preferred customer. Brand Partners can earn income during each pay period if they are active and
qualified with the required BV.

Business Center (BC): A node within the Placement Tree that is owned by a Brand Partner.

Business Value (BV): A value assigned to commissionable services that is used to determine active status, qualification status and rank. See Commissionable Value (CV).

Carryover Volume: The amount of GV that is remaining on the Left Leg and/or Right Leg at the end of the semi-monthly period after incentives have been calculated.

Commission Period: The time between compensation processing runs. The Network Marketing Compensation Plan is based on semi-monthly Commission periods.

Customers: Customers can receive free snacks when they enroll 4 Preferred Customers. Customers cannot earn income.

Effective Period: The date or commission period in which a rank achievement is effective.

Enroller: Brand Partner that introduces and signs up another Brand Partner. An Enroller is the first upline Brand Partner of any given Brand Partner in the Enroller Tree.

Greater-Volume Leg (Lead Leg): The Left Leg or Right Leg that has the greater amount of GV in a given period. Also see Lesser-Volume Leg.

Group Volume (GV): There are two (2) accumulations of Group Volume.

Left Group Volume (Left-GV): The accumulation of BV for a Brand Partner from all Brand Partners that are placed in the downline of the Brand Partner’s Left Leg. A Brand Partner must be Active to accumulate Left-GV.

Right Group Volume (RGV): The accumulation of BV for a Brand Partner from all Brand Partners that are placed in the downline of the Brand Partner’s Right Leg. A Brand Partner must be Active to accumulate Right-GV. See Total Group Volume (TGV).

Hierarchal Organization: A hierarchy of relationships. There are two (2) organization defined in the Network Marketing Compensation Plan: The Enroller Tree and The Placement Tree.

Commissionable Value (CV): A monetary value assigned to commissionable services that is used to calculate the First Sale Bonus. See Business Value (BV).

Downline: There are two downline organizations:

Enroller Tree Downline: All first-level (i.e., front-line) Brand Partners in the Enroller Tree and their first-level Brand Partners, and so on, until the end of the Enroller Tree is reached.

Placement Tree Downline: All first-level Brand Partners (i.e., front-line) in the Placement Tree and their first-level Brand Partners, and so on, until the end of the Placement Tree is reached.

Legs: There are two types of Legs:

Enroller Tree Leg: A personally-enrolled Brand Partner and their entire downline. A Brand Partner can have an unlimited number of legs in the Enroller Tree.

Placement Tree Leg: A first-level Brand Partner and their entire downline in the Placement Tree. A Brand Partner can have a maximum of two legs in the Placement Tree; the Left Leg and the Right Leg.

Greater Volume Leg: The leg with the greater amount of GV ina given period.

Lesser-Volume Leg: The Left Leg or Right Leg with the lesser amount of GV in a given period. NOTE: The BV of all personally enrolled

Brand Partners and Retail Customers goes to the Lesser-Volume Leg regardless of the leg they are in. If a Retail Customer is enrolled by a Retail Customer their BV goes to the Lesser-Volume Leg of the first upline Brand Partner.

Greater-Volume Leg.

Paid-As Rank: The rank at which a Brand Partner qualifies and is paid within a specific commission period. Paid-As Rank is determined on a semi-monthly basis.

Personal Business Value (PBV): The sum of BV from a Brand Partner‟s personal transactions.

Personal Commissionable Value (PCV): The sum of CV from a Brand Partner‟s personal transactions.

Personal Enrollment Business Value (PEBV): The sum of a Brand Partner‟s PBV and the PBV from all personally-enrolled Brand Partners (within the Enroller Tree) within a given period.

Preferred Customer: A customer who is enrolled in a Network Marketing database and can place orders without your direct involvement. Auto delivery is required to be a preferred customer.

Preferred Customer Personal Volume (PCPV): Volume associated with a purchase made by a preferred customer, which is half of the volume of a purchase associated with a Brand Partner.

Qualified: Must have two personally enrolled Brand Partners in each placement team leg that is either active or has at least 1,000 personal enrollment tree volume and has met the requirements to be paid a particulate bonus/commission.

Rank: A title assigned to a Brand Partner that is based on the Brand Partner’s performance.

There are two (2) types of Rank:

Achieved Rank and Paid-As Rank.

Retail Customer: A person or business entity that is a consumer of a Network Marketing products but is not enrolled as a Brand Partner. Retail Customers are tracked within the database. Retail Customers purchase from a Brand Partner’s website and from a Brand Partner’s personal inventory.

Retail Price: The price paid by Retail Customers for Network Marketing products.

Semi-Monthly Period: The base commission period. Each calendar month is composed of two (2) semi-monthly periods. The 1st day of the month through the 15th day of the month. The 16th day of the month through the last day of the month.

Total Group Volume (TGV): The sum of a Brand Partner‟s Left-GV and Right-GV.

Upline: There are two upline organizations:

“Enroller” Tree Upline: A Brand Partner”s Enroller and their Enroller and so on until the beginning of the Enroller Tree is reached.

“Placement” Tree Upline: A Brand Partner”s Placement Sponsor and their Placement Sponsor and so on until the beginning of the Placement Tree is reached.

User Types: A term used to denote Brand Partners and Retail Customers that are entered in the database with their own unique identification number. This compensation plan does not have a provision for Customers.

Volume: Refers to the points assigned to products. PV is personal sales volume from products ordered for selling to your regular customers and from products ordered by your preferred customers. BV is group Business Volume from products ordered by your downline for selling to their customers

Wholesale Price: The price paid by Wholesale Brand Partners for Network Marketing products.

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