Commissions

Sample Project

 

Terms and Concepts

12 Month Qualifying Volume (12MQV)

The sum of a Distributor’s Personal Qualifying Volume (PQV) over a rolling 12 periods.  The calculation shall include the Distributor’s PQV in the Period being calculated and the PQV in each of the 11 preceding Periods.

Account Status

The status associated with a Distributor's account. Valid Account Statuses include:

·         Active

·         Terminated

·         Begun Enrollment.

Account Type

Valid Account Types for this plan are:

·         Customer

·         Distributor

Advancement Bonus

A one-time bonus paid for the achievement of a specified Career Title rank for the first time. See Advancement Bonus details.

Advancement Bonus - Matching

Bonus paid to the direct sponsor of a Distributor that is awarded an Advancement Bonus.  See Advancement Bonus - Matching details.

Anniversary Date

See Enrollment Date

Breakaway Leg (BL)

Each Leg in a Distributor's downline Levels 1 - 3 which contains at least one (1) Distributor with a Career Title rank of Breakaway Title or above is considered a Breakaway Leg. If multiple Distributors in a single leg (level 1 - 3) have a Career Title rank of Breakaway Title or above, that Leg only qualifies as a single Breakaway Leg.

Breakaway Title

The minimum title rank (based on Career Title) at which a Distributor qualifies for special handling within the compensation plan. For this plan, the Breakaway Title rank signifies the minimum Career Title rank at which a new Generation will be calculated. The Breakaway Title rank for this plan is Director.

Cancellation

When an Account fails to meet the minimum requirements to remain Active and is systematically changed to a “Terminated” status, this is referred to as a CancellationSee also: Termination

Career Title

A Distributor's Career Title is the highest title rank they have achieved since enrolling, subject to the applicable Demotion Policy. This title rank may be greater than the current period Paid As Title rank, however it will never be lower than the current period Paid As Title rank. To maintain his/her current Career Title rank, a Distributor is only required to meet the maintenance requirements outlined in the Demotion Policy. If, in any period, a Distributor is Paid As a rank lower than their Career Title rank, they will retain their Career Title rank subject to the Demotion Policy.
Also see Demotion Policy

Clawback

The process to decrease a commission payment in the current period for a Return on an order that was originally placed in a prior period is termed “Clawback”. Clawback functionality is a an advanced feature and is not included for this commission plan.

Commission Qualified (CQ)

Term referencing the eligibility of an Account to participate in Bonuses other than Retail Bonuses. A Distributor Account must have a minimum 12 Month Qualifying Volume (12MQV) of $1000.00 in order to be Commission Qualified (CQ) for the specified Commission Period. Note: This term does not reference the Account Status of the Distributor, only the eligibility of the Distributor to participate in override bonuses.

Commission Qualified Leg (CQL)

Each Level 1 Downline account for a selected Distributor that has met the requirements for Commission Qualified (CQ) in the specified Period is considered a Commission Qualified Leg.  The count of Commission Qualified Legs cannot be greater than the total number of Active Distributors in a specified Distributor’s Level 1.

Commissionable Volume (CV)

Commissionable Volume (CV) for each item is assigned in Encore Global Management Portal (GMP) and stored when an order is completed. This value is then used to calculate dependent values for commissions processing. An example of a value derived from the CV of items ordered is Personal Commissionable Volume (PCV).

Compression

Compression is the process whereby the downline of a terminated account is reassigned to the next qualified upline.  Compression is not included in this plan.

Customer

A customer is an individual who purchases products for personal use and has not signed an agreement with the company. Customers are not allowed to sponsor (i.e. have a downline), do not receive commissions, and are not credited with volume. The volume from a customer's purchase is credited to the Distributor under whose account the order was made. Customers do not hold positions in a genealogy. They are considered to be a Level 0 to their Distributor (rather than a Level 1 which a Distributor would be considered to their sponsor).

Demotion

When a Distributor fails to meet the maintenance requirements for their current Career Title, that Distributor's Career Title will be adjusted down to be the same as the Paid As Title in the current period.  In this plan, a distributor is required to achieve a PaidAs Title rank equal to his/her Career Title rank at least one time in each four month rolling period.  The four month rolling period will include the period being calculated and the three previous periods.  If a Distributor fails to meet this requirement, their Career Title will be set equal to their PaidAs Title in the period being calculated.

Distributor

An individual that has enrolled and entered into a Distributor agreement with the company is referred to as a Distributor. A Distributor is eligible to sponsor additional Distributors as well as earn bonuses and commissions. Distributor accounts may also register new Customers.

Downline

A Distributor or group of Distributors belonging to the same genealogy of a specified Distributor.

Downline Commissionable Volume (DCV)

The total Personal Commissionable Volume (PCV) of all Distributors within a sponsorship genealogy below a specified Distributor.

Downline Qualification Volume (DQV)

The total Personal Qualification Volume (PQV) of all Distributors within a sponsorship genealogy below a specified Distributor, including PQV of the Distributor.

Enroller

Refers to the initial Sponsor of a Distributor.

Enrollment Date

Date the account begins functioning as a Distributor.

Enrollment Order

The initial order placed as a requirement for enrolling as a Distributor. Volume from Enrollment Orders is included in volume calculations for Distributors and Sponsors.

Generation

The relationship between one Distributor at the Breakaway Title rank or higher and their team, and another Distributor at the Breakaway Title rank or higher and their team, based on Career Title. If a Distributor at Career Title equal to the Breakaway Title rank or higher is not Paid As at least the Breakaway Title rank in a Period, they are still considered a Generation to the upline Director.
Example: Dan sponsors Harry who sponsors Sally who sponsors Bert. Harry is the only one who is not a Director or higher. Sally is First Generation to Dan. Bert is Second Generation to Dan. If Harry later becomes a Director, Harry will become a First Generation to Dan and Sally and Bert become a Second and Third Generation, respectively. If Sally and/or Bert are not Paid As a Director in the next month, they continue to be a Generation to Dan until their Career Title is demoted to a title lower than Director.

Generation Bonus

Generation Bonuses are overrides paid on downline Generations on the entire Commissionable Volume of the Team and paid in addition to the Level Bonuses. For example, a Generation 1 would pay out on the first downline at the Breakaway Title or higher titles (on their Commissionable Team Volume)(based on Career Title in the period) which includes all the Distributors below them, down to but not including the next Director or higher (Career Title). See also Team definition.  See also Generation Bonus details.

Grace

When a Distributor promotes to a Career Title Breakaway Rank (or higher) for the first time, then that Distributor's Upline will have their Group Qualifying Volume (GQV) requirement will be reduced to allow time for those Distributors to replace the the Group Volume from that Downline Distributor that has broken away.

The GRACE calculation for a Distributor will be incremented by 1 for each Upline Distributor of the Distributor that has achieved the Career Title Breakaway Rank (or higher), up to and including the next Distributor at or above the Career Title rank of the Breakaway Rankin the two monthly periods immediately following the current period.  The Group Qualifying Volume (GQV) requirement will be reduced by 50% for each Distributor with a Grace count of 1 in the current period.   The Group Qualifying Volume (GQV) requirement for the current period will be reduced to 0.00 for a Distributor with a Grace count of 2 or more in the current period.

See Grace Calculation Business Rule.

Group

A Distributor and his/her entire downline, down to but not including, the next Distributor at the Breakaway Title rank (Career Title) or higher.

Group Commissionable Volume (GCV)

The total Personal Commissionable Volume (PCV) of all Distributors within a particular Distributor's Group genealogy in a specified Period.

Group Qualifying Volume (GQV)

The total Personal Qualifying Volume (PQV) of all Distributors within a particular Distributor's Group genealogy in a specified Period.

Host Reward Volume

The volume associated with free and/or discounted items on a Party Order as a reward to the Party Host. Volume from items associated with a Host Reward IS NOT included in either Qualification or Commissionable Volume calculations (including the amount paid on discounted items).

Leg

A leg begins with a first level Distributor and includes all of the Distributors beneath them. A Distributor has as many legs as they have first level Distributors. 
Example: If Sally has five first level Distributors, then she has five legs. For example, Sarah is one of Sally's first level Distributors. Sarah and her entire downline is considered to be one leg to Sally.

Level

The place a Distributor occupies in a downline genealogy structure relative to another upline or downline Distributor. Distributors personally sponsored (i.e. first level) are Level 1. Those Distributors sponsored by Level One Distributors are Level 2, relative to the original Distributor. Customers are not considered when counting levels and do not occupy a position in a Distributor's genealogy. This compensation plan will pay up to three (3) levels.
NOTE: Level does NOT refer to a title or rank status.

Level Bonus

A percentage of the Commissionable Volume (CV) can be paid to qualified upline sponsors. To receive a Level Bonus, a Distributor must be Eligible and Commission Qualified (CQ). If a Distributor does not meet the required criteria, then that Level Bonus will not roll upline. See Level Bonus details.

Minimum Disbursement Amount

The minimum Account Ledger balance required for a disbursement to be created. This amount can vary by Country. For this plan the Minimum Disbursement Amount for all accounts will be $10.00. This amount can be changed with each disbursement to allow for entire Ledger Balances to be paid.

Online Order

An order which is placed on a Distributor's Personal Website Susbcription (PWS) and is not associated with a Party Order.

Order Commissionable Date

The specific date/time that an order will be considered for commission calculations. When an order is created, this date set equal to the Order Create Date. As only orders that are in a Commissionable Status are considered for commission calculations, the date is immaterial for commissions at this point. Once an order is submitted, this date is set equal to the Order Complete Date. The Order Commissionable Date may be overriden or modified once the order is submitted to force the order to be included in a specific Period.

Order Complete Date

The specific date/time an order is completed and submitted for fulfillment.

Order Create Date

The specific date/time an order is initially created.

Paid As Title

Each Distributor is paid at the title for which they qualify during the period. The requirements for a Paid As Title rank are the same as the requirements to promote to the equivalent Career Title rank, but subject to a single period. If, in any period, a Distributor is Paid As a rank lower than their Career Title rank, they will retain their Career Title rank subject to the Demotion Policy.
See also: Demotion Policy.

Party Order

An order that may be placed on any Storefront, but is associated with a specific parent order designated as the “Party”.

Period

Refers to the specific time frame in which qualifications and payouts are calculated. In the initial implementation of this plan, a Period will be the same as a calendar month. All bonuses are paid on a period basis. Note: future enhancements to this plan may include weekly or semi-monthly periods.

Personal Commissionable Volume (PCV)

The total Commissionable Volume (CV) for a single Distributor from orders placed personally and by their personally sponsored Customers.

Personal Qualification Volume (PQV)

The total Qualification Volume (QV) for a single Distributor from orders placed personally and by their personally sponsored Customers.

Personal Retail Volume (PRV)

The total Retail Volume (RV) for a single Distributor from orders placed personally and by their personally sponsored Customers.

Personal Sales Bonus

An override bonus determined by the Personal Retail Volume (PRV) level achieved in a specified period. The Override percentage associated with the highest level achieved will be applied to the entire Personal Retail Volume (PRV) for the period. For example: Jane has $1,200 PRV in the Period. She qualifies for the 3% Personal Sales Bonus level. She will be paid the 3% bonus on the entire PRV amount totaling $36 (1200 * .03).  See Personal Sales Bonus details.

Personal Volume

Client Term: See Personal Qualification Volume (PQV)

Portal Order

An order placed on the corporate website. This order may be assigned to a specific Distributor or direct to the Company.

Qualification Volume (QV)

Qualification Volume (QV) for each item is assigned in Encore Global Management Portal (GMP) and stored when an order is completed. This value is then used to calculate dependent values for commissions processing. An example of a value derived from the QV of items ordered is Personal Qualification Volume (PQV).

Rank

Used to communicate the position of either a Paid As Title or Career Title relative to other titles of the same type (Paid As or Career). Used to differentiate between Rank and Level.

Retail Bonus

Monthly Bonus paid to a Distributor based on the Retail Volume (RV) of Customer account orders in a specific Period. The amount paid is 25% of the Retail Volume (RV) for each qualifying order placed by a Customer in the Period.  See Retail Bonus details.

Retail Volume (RV)

Retail Volume (RV) for each item is assigned in Encore Global Management Portal (GMP) and stored when an order is completed. This value is then used to calculate dependent values for commissions processing. An example of a value derived from the RV of items ordered is Personal Qualification Volume (PQV).

Sponsor

The Distributor directly above another Distributor in the genealogy. The Sponsor is used to calculate Levels and Generations. Note: Enroller is not used in this plan.

Termination

When an Account is manually changed from an Active status to a Terminated status, this is referred to as a “Termination”.

Upline

General term used to describe the Current Sponsor of a Distributor. May also be used to describe the entire group of Distributors along the same sponsorship genealogy toward the root node of the company.

Wholesale Price

Wholesale Price for each item is assigned in Encore Global Management Portal (GMP) and stored when an order is completed. Wholesale Price is not used in the Commission process.

Workstation Order

An order which is placed on the Distributor's Distributor Workstation (DWS) and is not associated with a Party Order.