oxo worldwide compensation plan
Post on 14-Feb-2017
186 Views
Preview:
TRANSCRIPT
1
Compensation Plan
2
Table of Contents Commission Plan Definitions ................................................................................................................................................ 3 Bonuses ....................................................................................................................................................................................... 10 Retail Bonus ......................................................................................................................................................................... 10 Preferred Customer Commission (PCC) .................................................................................................................. 10 Fast Start Bonus .................................................................................................................................................................. 10 Team Commissions ........................................................................................................................................................... 11 Team Matching Bonus (TMB) ....................................................................................................................................... 13
Rank Descriptions and Qualifications ............................................................................................................................ 16 Basic Qualification: ............................................................................................................................................................ 16 Active .................................................................................................................................................................................. 16 Commission Qualified ................................................................................................................................................. 16
Rank Qualifications: .......................................................................................................................................................... 16 Bronze ................................................................................................................................................................................ 16 Silver ................................................................................................................................................................................... 16 Gold ..................................................................................................................................................................................... 16 Platinum ............................................................................................................................................................................ 17 Diamond ............................................................................................................................................................................ 17 Double-‐‑Diamond ........................................................................................................................................................... 17 Black Diamond ............................................................................................................................................................... 17
Rank Packages and Auto-‐‑Qualify Ranks .................................................................................................................. 17
3
Commission Plan Definitions Active
To be considered active, a distributor must purchase a minimum of 100 PQV within 31 days of the end of the commission period.
Autoship
The Autoship Program allows distributors the opportunity to purchase OXO World Wide (OXOww) products with a large discount off of the regular distributor wholesale price (tax and shipping included!!). The autoship order will automatically be sent to the distributor each month regardless of any other purchases they may have made during the month. The program assists those interested in ensuring they meet qualification requirements for certain bonuses and commissions as defined by the OXOww compensation plan.
Auto-‐Qualify Rank
Auto-‐Qualify Rank is a rank that is purchased at the time of enrollment, or upgraded within a pre-‐defined timeframe. Auto-‐qualify ranks are only valid for a defined number of days. While they are active, the distributor will auto-‐qualify for any commissions at that rank (unless their current rank is higher). They will also see the auto-‐qualify rank in any locations in the back office that show “Current Rank” or “Pin Rank” (unless their current rank is higher). Once the auto-‐qualify rank expires, the distributor will revert back to their current rank, and their current pin rank. See the section “Rank Package” for more information. Team Generation Matches are always paid at current rank NOT auto-‐qualify rank.
Balanced
Balance is placement setting that will place new enrollees in the shortest (in term of numbers) leg regardless of sponsorship.
4
Binary Tree
For purposes of “Team Commissions”, each OXOww distributor has a maximum of two front line partners in the placement tree. The resulting marketing organization under each of these front line partners is referred to as the Binary Tree.
Binary Cap
“Team Commissions” have a maximum number of leg cycles based upon your ranking. Any commissionable volume in excess will be carried over to the next bonus period:
Maximum Cycles Rank Max Lessor Leg Cycles / Cap Amount
Bronze 200 / $5,000 Silver 300 / $9,000 Gold 400 / $12000* Platinum 500 / $15,000* Diamond 600 / $18,000* Double Diamond 700 / $21,000* Black Diamond 900 / $27,000* * If cycle pool exceeds 70% of company CV, cycle caps may be lowered in order to fund and pay the generational match bonuses. No BV will be lost and will be carried over to the next bonus period.
Bonus Period
The bonus period is the start and end date for time period that includes all the orders that make up the commissions will be paid to the distributor. The following summarizes the bonus periods for each bonus or commission:
Bonus Periods Bonus Period
Retail Weekly Fast Start Daily Team Commissions Daily Three Level Match Weekly Team Matching Bonus Weekly Daily Pay is defined as; when the paid funds clear our account (usually with 24-48 banking hours – Mon-Sat), we will release that day’s commission to the distributor’s eWallet. This
5
release process is run everyday by 9:00am PST (or GST – 7 hours). Example: if a distributor sells a package on Monday @ 8:00am PST, the soonest any funds generated by that transaction will be available through their eWallet is, Tuesday @ 9:00am PST and the latest, Weds @ 9:00am PST. International Transactions (outside of the United States) may take longer. Outside the USA & Canada, there is a 21 day hold period, where commissions can accumulate in eWallet and eWallet can be used for auto shipments and back office transactions, but distributor cannot payout to their commissions account. Weekly Pay is defined as; Monday to Sunday, paid into eWallet by end of day Monday, after the end of the period (Sunday). Business Volume (BV)
The Business Volume is the volume from a distributor’s orders (see “Personal Qualification Volume”) or the volume in a distributor’s organization (see “Group Volume”). BV is based on the “Qualification Volume” of an order, rather than the “Commissionable Volume”
Carry Over Volume
Any volume that is not converted into binary cycles can become carry over volume in the next pay cycle. This could be any volume beyond the amount used for cycles, or all volume if no cycles were generated in a pay period, either because the distributor did not qualify to generate cycles, or they did not have enough volume to generate any cycles.
However to be able to keep carry over volume, the distributor must have 100 PQV within 45 days of the end of the commission period.
Carry over volume will cap at 4,000,000.
Commissionable Volume (CV)
Each product purchase is assigned a commissionable volume (CV). CV is the basis for determining and calculating bonuses and commissions. The OXOww compensation plan pays 70% of all commissionable volume for all orders placed in the commission period.
6
Commission Qualified
Commission Qualified is defined as an “Active” distributor (100 PQV) that has at least 2 “Active”, personally sponsored distributors, one placed in the left leg and one placed in the right leg of the binary tree.
Cycle A cycle is 150 CV on both the left and right legs of the binary tree.
Example: 1050 CV Right Leg and 1,500 CV Left Leg = 7 Cycles times $30 or $210.
Distributor
A distributor is a person who chooses to be in full partnership with the OXOww distributor agreement, purchased a starter kit, and meets all other required criteria enabling him or her to participate fully in the OXOww compensation plan.
Enrollment Leg
An enrollment leg is a portion of a distributor’s organization. An enrollment leg begins with a distributor’s personally sponsored distributor and everyone stemming from that person. This is tracked by sponsorship or who brought in whom. If a distributor has 5 personally sponsored distributors, they have 5 enrollment legs.
Enrollment Order/Kit
An order of product made at the time of enrollment as a distributor at the predetermined inventory pricing level. Plus, a replicated marketing site and a cloud-‐based, complete back office management system.
Genealogy
Genealogy is the overall structure of the company’s distributors and preferred customers and how they are placed in the binary genealogy and sponsorship tree. Commissions are paid out according the OXOww genealogy.
7
Generation
The “Team Matching Bonus” uses generations. A generation is a group of people in a distributor’s organization. The 1st generation is every distributor between the distributor and the next GOLD ranked qualified distributor (or higher rank) in each enroller leg. The 2nd generation is every distributor between the first generation Gold ranked distributor (or higher rank) and continues down until the second Gold ranked distributor (or higher) in that same enrollment leg.
Generations in an enrollment leg are linked from Gold ranked distributor (or higher) to Gold ranked distributor (or higher). The number of Gold ranked distributors (or higher rank) in an enroller leg, determine the number of generations in the enroller leg.
See the “Team Matching Bonus” for more information.
Greater Leg
The Greater Leg is that leg of the Binary Genealogy with the greater Commissionable Volume (CV).
Group Volume (GV or Group BV)
Group volume is the total qualification volume (QV) in a period that stems from a distributor’s sponsor tree. The distributors personal qualification volume (PQV) is included in the calculation of his or her Group Volume.
Lesser Leg
The Lesser Leg is that side of your binary tree with the lesser commissionable volume. Placement setting of “Lesser Leg” will place new enrollees in this leg.
8
Pin Rank
A Pin Rank is the highest lifetime rank achieved. Even though the “Paid Rank” may change from one pay period to the next, base on qualifications achieved, pin rank never goes down. If a distributor has purchased an auto-‐qualify rank, while that auto-‐qualify rank is active, the auto-‐qualify rank will display as their current pin rank, as long as their current pin rank is not higher.
Paid Rank
The term “Paid Rank” is used in connection with commissions, bonuses and qualifications in the compensation plan. The current “paid as” rank is the rank for which you are paid under the compensation plan for a particular bonus period. Conversely, a Pin Rank is a distributor’s highest rank achieved whether or not such rank is maintained for compensation plan purposes. If the distributor has purchased an auto-‐qualify rank, while that rank is active, the auto-‐qualify rank will be used for all commissions, unless their current paid rank is higher.
Once a distributor achieves a ranking, they will be paid at and stay at that ranking as long as they stay active. If they become in-‐active for any reason, when they become active again they will revert to their actual ranking.
Personal Enrollee A Personal Enrollee is a new distributor that is personally enrolled as a new distributor. A Personal Enrollee is always on the first level of the sponsorship tree. They can be placed anywhere in the Binary Genealogy.
Personal Volume (PV)
Personal Volume (PV) is the total commissionable volume from personal orders that a distributor purchases and preferred customer orders.
Personal Qualification Volume (PQV or BV)
Personal Qualification Volume is exactly the same as “Personal Volume” except it is based on the volume type called “Qualification Volume” that is
9
assigned to each product in the orders. All qualifications for the different ranks or commission bonuses are based on PQV rather than PV.
Preferred Customer (PC)
A Preferred Customer is a customer who has been recruited by a distributor or other preferred customer. A Preferred Customer is:
1. Someone who is purchasing product from the company for personal use, but has not engaged as a distributor. Preferred Customers purchase OXOww products with a discount off of the regular Retail price.
2. Preferred Customers must agree to a monthly autoship order.
There is no enrollment fee, set up fee, or starter pack purchase needed to become a Preferred Customer. A PC can choose to become a distributor at any time. If a PC chooses to become a distributor, he or she must purchase a Starter Kit and by default will be a Personal Enrollee of the Sponsor who enrolled him or her as a PC.
Qualification Period
The Qualification Period is that time period in which the distributor needs to meet the qualifications in order to earn commissions or bonuses for a respective commission or bonus period.
Retail Customer
Retail customers do not participate in the compensation plan and cannot enroll other customers or distributors. Retail customers do not enroll, do not have a back office, and cannot enroll in auto shipments.
10
Bonuses Retail Bonus Distributors can purchase OXOww products at the wholesale price and sell them to their customers at the suggested retail price. They earn the difference between the retail price and the wholesale price. Retail orders can also be placed through their replicate website. Any orders placed in that way will be associated directly with the distributors account, and they will earn a commission based on the difference between the retail price and the wholesale price of the products purchased. Preferred Customer Commission (PCC) Preferred customer commission (PCC) are paid to the sponsor of preferred customers on every purchase they make, along with preferred customer auto shipment orders. Each OXOww product has a specified amount that is paid to the sponsor, initially all PC orders pay a $10.00 Fast start and have a BV of 40.
Example: Bob enrolls Andy as an OXOww Preferred Customer. Andy orders $80. Bob earn $20.00 Fast Start and 80BV for his purchase. Andy is also automatically signed up for an auto shipment of $49.99, which Bob earn $10.00 plus 40BV every month.
The preferred customers can hold a spot in the binary genealogy. The sponsor is encouraged to help their preferred customers become distributors. Preferred customers can also register other preferred customers, which are also added to the binary genealogy.
Fast Start Bonus The Fast Start Bonus is a very powerful part of the compensation plan. This one-‐time bonus is paid on the first sale placed by every new distributor to their sponsor. For each of your personally sponsored distributors you will
11
receive $50.00 Fast-‐Start commission bonus. This bonus is paid daily and is available to every active distributor, regardless of ranking.
Team Commissions The Team Commission bonus is paid daily and is calculated from the distributor’s binary genealogy, also known as the placement tree. This tree has two legs: a left leg and a right leg. Team Commissions will be generated through the building of sales volume on the left and right legs of the placement tree. To be eligible for Team Commissions they must be active. They must also have one (1) active personally sponsored distributor placed in their left leg and one (1) active personally sponsored distributor placed in their right leg of the binary tree. And finally, they must have a minimum of 100 CV combined of new volume and carryover volume in each leg of the placement tree. Each time they have 150CV on both the left and right this equates to one (1) cycle. Each cycle is worth up to $30 or 20%:
Cycle Percentages Rank Cycles Percentage / Cycle Amount
Bronze 10% / $15 Silver 15% / $22.50 Gold 20% / $30 Platinum 20% / $30 Diamond 20% / $30 Double Diamond 20% / $30 Black Diamond 20% / $30
12
The Team Commissions are paid DAILY in increments of 150CV and are subject to the $25,000 weekly maximum payout in Team Commissions:
Maximum Cycles Rank Max Lessor Leg Cycles / Cap Amount
Bronze 375 / $7,500 Silver 500 / $10,000 Gold 625 / $12,500* Platinum 750 / $15,000* Diamond 875 / $17,500* Double Diamond 1,000 / $20,000* Black Diamond 1,250 / $25,000* * If cycle pool exceeds 70% of daily volume, cycle caps may be lowered in order to fund and pay the generational match bonuses. No BV will be lost and will be carried over to the next bonus period.
Any commissionable volume that was not paid a Team Commission Bonus in the current bonus period will be carried over to the next bonus period.
Example:
John is qualified as Gold to receive Team Commissions. He has 3000CV in his left team and 5200CV in his right team. His Team Commission Bonus would equate to $600. Calculation is as follows:
150CV = 1 cycle = $30 3000CV divided by 150CV = 20 Cycles 20 cycles multiplied by $30 per cycle = $600 Team Commission Bonus
John’s Carryover volume on his right leg would equate to 2200CV. Calculation is as follows:
5200CV -‐ 3000CV = 2200CV
Any volume used to complete a full cycle will not carry over, but will be considered “used” and removed from that distributor. Any unused volume from both sides will carry over to the next cycle and/or period.
Example 2:
John does not meet the minimum required PV to remain active within 30 days of the end date of the commission period he will not receive a binary cycle bonus, but his
13
volume from both sides will carry over to the next period. However, once John becomes inactive, his volume will NOT accumulate until he becomes active.
Example 3:
John does not meet the minimum required PV to remain active within 45 days of the end date of the commission period all volume on his “Lesser Leg” will flush (no carry-‐over).
Team Matching Bonus (TMB) In order to receive the Team Matching Bonus, a distributor must be Commission Qualified and meet the following qualification criteria:
1. Distributor must have 100 PQV
2. Distributor must have a current paid rank of Bronze or above and have at least one active, personally sponsored in their left leg and one active personally sponsored in their right leg.
The Team Matching Bonus is paid as a floating percentage on the Team Commissions earned by a distributor’s direct sponsored line of distributor(s) based on a total amount of seventy percent (70%) of total company CV. The floating percentage is based on CV after the Company pays all Team Commissions and any other bonuses offered by the Company at its discretion. The number of Generations available to an OXOww distributor is determined by Rank. The following summarizes the Team Matching Bonus availability by Rank:
Example 1:
Rank Generations Distributor Not Available Bronze 1 Silver 2 Gold 3 Platinum 4 Diamond 5 Double Diamond 6 Black Diamond 7
14
1st daily commission period, the Team Matching Bonus is determined to be 5%. Julie’s qualified current rank for the commission period is At Gold rank. At Gold rank, Julie is qualified for three (3) generation in the Team Generation Bonus. Julie has personally enrolled Charles in one of her legs. Charles has enrolled Jackson, James, and Sara. All of the people in this leg are Bronze rank during the commission period. All distributors are considered to be generation one for Julie as none of them have reached the paid rank of Gold for the commission period. Team Commissions earned by each downline distributor is as follows:
Team Commissions Distributor Amount Charles $300 Jackson $100 James $100 Sara $50
Julie’s weekly Team Commission Bonus would be $27.50 broken down as follows:
Team Matching Bonus Distributor Calculation Amount
Charles = 300 X 5% $15 Jackson = 100 X 5% $5 James = 100 X 5% $5 Sara = 50 X 5% $2.50
Example 2:
The Team Matching Bonus is determined to be 10% for the commission period. Charles qualifies at the Rank of Platinum for the commission period. James, from example 1, personally enrolled Alice. Alice has in her sponsor tree Greg, who became a Gold. Greg is actually 10 levels below Alice. Charles, as Platinum, is qualified for four (4) generations of Team Matching Bonus. In the sponsor leg, starting with James, down to Greg (including Greg) is the 1st Generation. All distributors below Greg, that are not paid as Platinum during the current commission period, are considered 2nd Generation.
Charles Team Matching Bonus is as follows:
Total team commissions earned by distributors in Generation 1 (everyone from Greg up) = $1000. TMB for Charles is $100 ($1000 X 10%).
Total team commission earned by distributors in Generation 2 (everyone below Greg) = $500. TMB for Charles is $50 ($500 X 10%)
15
Example TMB Illustration
Gold Rank or above
Personally Sponsored Second Generation Fourth Generation First Generation Third Generation Fifth Generation
Executive Ranks Bronze Silver Gold Platinum Diamond 2-‐Diamond Black Diamond Generations paid 1 2 3 4 5 6 7
This illustration is designed to help you better understand the Generations of the Team Match Bonus. Once a distributor with a current paid-as rank of Gold or higher is found on any leg, it completes the first generation and begins the second generation. This continues all the way down through the sponsorship tree.
YOU
16
Rank Descriptions and Qualifications Basic Qualification: All rank qualifications are based on the activity from the previous 4 weeks.
Active • 100 PQV (Your personal Retail and Preferred Customer sales also count
toward your required 100 PQV)
Commission Qualified • Active • 2 Active (100 PQV) personally sponsored distributors, one on the left and
one on the right of the binary tree with a 100BV of monthly volume in each leg.
Rank Qualifications: Bronze
• Commission Qualified • 100 PQV • 1-‐Generation Team Matching Bonus – NO CAP! • 10% Binary Cycle Bonus / $7,500 weekly cap
Silver • Commission Qualified • 100 PQV • 4 personally sponsored Active distributors, 2 on the left and 2 on the right. • 2-‐ Generations Team Matching Bonus – NO CAP • 15% Binary Cycle Bonus / $10,000 weekly cap
Gold • Commission Qualified • 100 PQV • 6 personally sponsored distributors, 3 on the left and 3 on the right. • 3-‐ Generations Team Matching Bonus – NO CAP! • 20% Binary Cycle Bonus / $25,000 weekly cap
17
Platinum • Commission Qualified • 100 PQV • 8 personally sponsored distributors, 4 on the left and 4 on the right • 4-‐ Generations Team Matching Bonus – NO CAP! • 20% Binary Cycle Bonus / $25,000 weekly cap
Diamond • Commission Qualified • 100 PQV • 10 personally sponsored distributors, 5 on the left and 5 on the right • 5-‐ Generations Team Matching Bonus – NO CAP! • 20% Binary Cycle Bonus / $25,000 weekly cap
Double-‐Diamond • Commission Qualified • 100 PQV • 12 personally sponsored distributors, 6 on the left and 6 on the right • 6-‐ Generations Team Matching Bonus – NO CAP! • 20% Binary Cycle Bonus / $25,000 weekly cap
Black Diamond • Commission Qualified • 100 PQV • 14 personally sponsored distributors, 7 ACTIVE on the left and 7 ACTIVE on
the right • At least one, personally sponsored, FULLY ACTIVE Diamond Rank in each leg • 7-‐ Generations Team Matching Bonus – NO CAP! • 20% Binary Cycle Bonus / $25,000 weekly cap
Rank Packages and Auto-‐Qualify Ranks Enrollment and upgrade packages provide an opportunity to be auto-‐qualified at some of the ranks. If any of the packages are purchased, the auto-‐qualify rank will remain in effect for a pre-‐defined number of days, depending on the package purchased. Once the number of days has passed, the current active paid-‐as rank will go into effect.
18
The auto-‐qualified ranks will show up as the current rank, but will never show up as the pin (or lifetime) rank. The sponsor of a person with an auto-‐qualified rank can never use that person when qualifying for the ranks of Gold or higher. While an auto-‐qualify rank of Gold or higher can be used to qualify for the Team Matching Bonus, auto-‐qualify ranks are not used for determining generations.
top related