compensation plan - compelling creations · principles of success the first step to understanding...

Compensation Plan

Principles of Success

The first step to understanding the Compensation Plan is to understand the underlying Principles and Behaviors.

“An empowered Organization is one in which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organizational success.”

- Stephen R. Covey

Principles of Success

1. The dream is real.

2. Each new Consultant is precious.

3. Growth comes from Retention with Recruiting.

4. We are in the people building business.

5. Time is our top competitor.

6. Success comes from developing and keeping Leaders.

7. To develop successful Leaders we must first develop successful Mentors.

8. Leaders should be rewarded for leading by example.

9. People will go where the money flows.

10. The smarter you work, the more you make.

5 Golden Behaviors

The Five Golden Behaviors of Successful Consultants:

• Selling

• Recruiting

• Building Mentors

• Building Leaders

• RetentionBecause these behaviors have been proven over time to be the keys to success, they are woven throughout the Compensation Plan to create a plan that not only rewards success, but creates it.

The Keys to Success

How to Work the Plan

(and have the Plan WORK for YOU)

Consultant Phase

Getting Started

A new Consultant is often unsure about the steps necessary to be successful. The 5 Golden Behaviors take the mystery out of success.

A successful Consultant:

• Learns to effectively sell. (Selling and Retention)

• Learns to effectively share the opportunity with others. (Recruiting and Retention)

Selling and Recruiting are the two most basic, foundational skills that a Consultant needs to have in order to be successful. That is why they are the two responsibilities for individuals in the Consultant phase. Learn to sell and learn to recruit. That will lead you to success.

Tip

Mentor Phase

Setting the Stage

Achieving Team Mentor sets the stage for becoming a Leader. A successful Leader first needs to be a successful Mentor. A successful Mentor focuses on doing things right and teaching that to their team.

A Successful Mentor:

• Continues to Sell and Recruit into their own team.

• Duplicates themselves. (Building Mentors and Retention)

• Teaches others to sell and recruit.

• Teaches others to be consistent.

• Develops other Mentors in the team.

• Leads by Example. (Retention)

Leader Phase

Doing the Right Things

Leaders are developed naturally over time. It takes experience and consistently doing the right things, not just doing things right. A Leader is interested in the collective success of their entire organization.

A Successful Leader:

• Continues to be a strong Mentor.

• Continues to Sell and Recruit.

• Supports other Mentors and Leaders in their organization. (Building Mentors and Leaders)

• Identifies potential Leaders and works with them.

• Trains downline Mentors and Leaders in their organization.

• Leads by Example. (Retention)

Career PathPhase 1 - Becoming a Team Mentor

Focus: Phase:Requirements:

ConsultantSelling and Recruiting

Consultant

• Submit a Signed Application

• To be Active and eligible for downline commissions, Consultants need to personally generate at least $300 Personal Volume in sales.

CCC

Personal Volume (PV) is the volume generated from your personal purchases

and your Customers’ purchases. PV is based on the Retail Price, regardless of

what price it was purchased at.



Mentor 1

• $300 PV

• 1 Active Leg

• A Leg begins with a Consultant on your first level and includes all the Consultants below them, regardless of title.

• An Active Leg is a Leg where at least one person, anywhere in the Leg is Active by generating at least $300 PV in sales.

M1

This represents an Active Leg. It may be the person on the 1st level or someone down below. As long as one person is Active, it is considered an Active leg.



Mentor 2

• $500 PV

• 2 Active Legs

• $2000 Group Volume (GV)

M2

Group Volume (GV) is the volume from yourself and everyone below you, down to but not including the next Team Mentor.

Your GV includes volume from both Active and non-Active Consultants in your team.


Transition to MentorSelling, Recruiting & Building Mentors

Mentor 3

• $800 PV

• 3 Active Legs

• 1 Mentor 1 Leg

• $4000 GV

M3

M1

A Mentor 1 (M1) Leg is a leg that has at least one qualified (paid-as) Mentor 1 (or higher title) anywhere in that leg. Whenever a leg

requires a specific title, a higher title may also fulfill that requirement.


MentorBuilding Mentors, Selling & Recruiting

Team Mentor

• $800 PV

• 4 Active Legs

• 2 Mentor 2 Legs

• $8000 GV

TM

M2

M2

Becoming a Team Mentor should be the goal of each new Consultant. The Team Mentor is the foundation for becoming a Leader and one of the most key parts of our plan. While a Team Mentor continues to sell and recruit, they now begin to increase their focus on Building Mentors below them.

Tip


MentorBuilding Mentors, Selling & Recruiting

Team Mentor

• $800 PV

• 4 Active Legs

• 2 Mentor 2 Legs

• $8000 GV

TM

M2

M2

Becoming a Team Mentor should be the goal of each new Consultant. The Team Mentor is the foundation for becoming a Leader and one of the most key parts of our plan. While a Team Mentor continues to sell and recruit, they now begin to increase their focus on Building Mentors below them.

Tip

This example shows the Mentor 2 on the second level of the Team Mentor.

Because we use legs, the Mentor 2 can be anywhere within the leg.

Earnings Opportunity

Phase 1

Summary Explanation

There are three ways to earn money in our plan:

1. When you sell our beautiful jewelry, you will receive between 30-45% in Retail Profit. That means for every thousand dollars you sell, you’ll receive at least $300 in personal commission. You can earn as much as you want every month!

2. As you start building a team by finding other Consultants, you’ll receive up to 7% on their sales, up to 5% on the sales of their recruits, and 3% on the sales of their recruits, depending on how you build your team. When you become a Team Mentor, you’ll receive an additional 2% on the sales of your entire team.

3. By progressing through the career path and becoming a Leader, it keeps getting better!

Selling• Retail Profits

• Power Seller Bonus

Recruiting & Building a Team• Level Overrides

• Mentor Bonus

• Group Volume Override

• Jump Start Incentive Points

Building Mentors & Leaders• Matching Team Mentor Bonus

• Generation Overrides

Earnings Opportunities

Selling

Focus: Requirements: How it Works:

Selling and RetentionBe a Consultant

Retail Profit

• Sell to Customers at the Retail Price and receive a 30% Retail Profit on their purchases.

• There is no minimum sales requirement to receive the Retail Profit.

$300 PartyEarn $90

Work 3 to 5 hoursEarn $18-$30 per hour

$450 PartyEarn $135

Work 3 to 5 hoursEarn $27-$45 per hour

$600 PartyEarn $180

Work 3 to 5 hoursEarn $36 - $60 per hour

Parties are the best way to get started with your business. Not only will you make money right away, but you’ll also be building your list of Customers. Customers are a critical aspect of your business because they are a source for both residual income and potential future Consultants.

Tip


SellingHave at least $2000 PV in the period

Power Seller Bonus

• When you have $2000 or more in personal sales during the month, you will receive an additional bonus on your entire personal volume for the month.

• This bonus is paid on the retail price, regardless of what price it was purchased at.

$2,000 PV 5%

$5,000 PV 10%

$7,000 PV 15%

Recruiting and Building Mentors


Recruiting, Building Mentors & RetentionBe Paid-as a Mentor 1 (M1)

Level Overrides

• The percentage and number of levels you receive are based on your Paid-as Title for the current period.

• Pays on the sales of your downline Consultants, regardless of their titles.

Paid-as Title Level 1 Level 2 Level 3

Mentor 1 5%

Mentor 2 7% 3%

Mentor 3 7% 5% 3%

Team Mentor 7% 5% 3%

You

Level 1

Level 2

Level 3


RecruitingBe Active

Mentor Bonus

• The Mentor Bonus is designed to encourage and reward Consultants for recruiting and teaching others how to recruit.

• The percentage of the Mentor Bonus is determined by when the new Consultant was recruited but lasts for the entire first 90 days of the new Consultant.

• Other Level Overrides and Group Volume Override pay at their normal percentages on sales that also pay a Mentor Bonus.

• No Generation Overrides are paid on sales that pay a Mentor Bonus.


RecruitingBe Active

Mentor Bonus

• When you sponsor a new Consultant during your 1st 90 Days, you will receive three times (3x) your normal Level One Override on their sales for their 1st 90 days, even if that extends past your own 1st 90 days.

Your 1st 90 Days

Paid-as Title Mentor Bonus

Consultant 5% * 3 = 15%

Mentor 1 5% * 3 = 15%

Mentor 2 7% * 3 = 21%

Mentor 3 7% * 3 = 21%

Team Mentor 7% * 3 = 21%


RecruitingBe Active

Mentor Bonus

• After your 1st 90 days are over, anytime you sponsor a new Consultant, you will receive two times (2x) your normal Level One Override on their sales for their 1st 90 days.

After your 1st 90 Days


Consultant 5% * 2 = 10%

Mentor 1 5% * 2 = 10%

Mentor 2 7% * 2 = 14%

Mentor 3 7% * 2 = 14%



Building ManagersBe Paid-as a Mentor 2 or higher

Matching Mentor Bonus

• When your new Consultant is in their 1st 90 days and sponsors another new Consultant, you will receive two times (2x) your normal Level Two Override on their new recruit’s sales for that new recruit’s 1st 90 days.


Mentor 2 3% * 2 = 6%

Mentor 3 5% * 2 = 10%


Rewarding Team Mentors


Building MentorsBe Paid-as a Team Mentor

Group Volume Override

• Receive an extra 2% on the sales of your entire team, including your personal sales.

• Pays in addition to Level Overrides and Mentor Bonuses.

TM

M2

M2

M2

M1 +2%

Level Overrides + Group Volume Override

TM

M2

M2

M2

M1

M3

NA

M1 M2

M1


TM

M2

M2

M2

M1

M3

NA

M1 M2

M1

Level 1 - 7%

Level 2 - 5%

Level 3 - 3%


TM

M2

M2

M2

M1

M3

NA

M1 M2

M1

Level 1 - 7%

Level 2 - 5%

Level 3 - 3% Level 1 - 7%

Level 2 - 5%

Level 3 - 3%


TM

M2

M2

M2

M1

M3

NA

M1 M2

M1

Level 1 - 7%

Level 2 - 5%

Level 3 - 3% Level 1 - 7%

Level 2 - 5%

Level 3 - 3%

GVO +2%

How it Works:

Because this bonus is only available during your first full three months, there’s no time to loose. Get started immediately and work with your upline Mentor to set goals that will help you achieve this bonus! As you sponsor new consultants, be sure to do the same with them.

Tip

Jump Start BonusesYour First 90 Days

Focus: Building the Party and Selling HabitRequirements: 4 Qualified Parties or $1000 in retail sales in each of your first months

Bonus! If you have 12 parties and/or $3000 anytime in your first 90 days, you receive 2,000 extra points.

First Month

to put towardmarketing materials

to grow your business!

Receive

10,000Points

Second Month



Receive

10,000Points

ThirdMonth



Receive

10,000Points

Jill

Typewritten Text


Building LeadersBecome a Team Mentor

• When you become a Team Mentor for the first time, you will receive a $200 one-time bonus.

Team MentorAdvancement Bonuses

$200& $32 0 $520

TM Advancement Bonustoward Marketing Materialslots of money for you!

Leadership Career PathPhase 2


Transition to LeaderBuilding Mentors

Leader 1

• $800 PV

• 4 Active Legs

• 2 Mentor 2 Legs

• 1 Team Mentor Leg (this also counts as one of the Mentor 2 legs)

• $8000 GV

L1

TM

M2 M2M2


LeaderBuilding Mentors and Building Leaders

Leader 2

• $800 PV

• 4 Active Legs

• 2 TM Legs

• 8000 GV

• $30,000 DV• Downline Volume (DV) is

the volume from yourself and everyone below you, all the way down. Everyone is included.

L2

M1

TM

M2 M2

TM

M2 M2

GV

GV

GV

DV


Leader

Leader 3

• $800 PV

• 4 Team Mentor Legs

• 2 L1 Legs

• $8000 GV

• $70,000 DV

L3

Building Leaders & Building Mentors

L1

TM

M2 M2

TM

TM

M2 M2

The two Leader 1 Legs also count as two of the Team Mentor Legs.

Tip

M2

L1

TM

M2


LeaderBuilding Leaders & Building Mentors

Leader 4

• $800 PV

• 5 TM Legs

• 2 L2 Legs

• $125,000 DV

• 1 New TM last 12 months (this is required after you have been a L4 for 12 months)

L4

TM

L2 L2 TM

TM

M3

Earnings Opportunity

Phase 2


Building LeadersBe Paid-as a Team Mentor or higher

Matching Advancement Bonus

• When you have a new Team Mentor promote up from your personal group, not only do they receive an Advancement Bonus but you will also receive a Matching Advancement Bonus of $500.

Team Mentor

$500 each time you help build a new team!

Generations Defined

A Generation begins with a Team Mentor or higher (based on Career Title) and

includes their entire personal team. Creating Generations should be the goal of each

Mentor and Leader because it is through generations that you are able to leverage the

enormous potential of your organization. Without generations, you cannot be a successful Leader.

Generations Defined

L3

L1

L1

TM

TM

TM

TM

M2

A generation is created when someone reaches the Career Title of Team Mentor or above. The Generation includes the Team Mentor (or higher) and their personal group.

Tip

M2 M2

Generations Defined

L3

L1

L1

TM

TM

TM

TM

M2

Personal Group


Tip

M2 M2

Generations Defined

L3

L1

L1

TM

TM

TM

TM

M2

Personal Group

Gen 1

Gen 1

Gen 1


Tip

M2 M2

Gen 1

Generations Defined

L3

L1

L1

TM

TM

TM

TM

M2

Personal Group

Gen 1

Gen 1

Gen 1

Gen 2


Tip

M2 M2

Gen 2Gen 1

Generations Defined

L3

L1

L1

TM

TM

TM

TM

M2

Personal Group

Gen 1

Gen 1

Gen 1

Gen 2

M2 M2

Gen 2Gen 1

Even though this Leader 1 is on the 2nd level of the Leader 3 (L3), she is a 1st

Generation because there is no other Team Mentor (TM) or higher in between them.

Generations are determined by Career Titles, not levels.

Generations Defined

L3

L1

L1

TM

TM

TM

TM

M2

Personal Group

Gen 1

Gen 1

Gen 1

Gen 2

M2 M2

Gen 2Gen 1

Because the Leader 1 is in between the Leader 3 and the Team Mentor,

the Team Mentor is a 2nd Generation to the Leader 3 and a 1st

Generation to the Leader 1.

Generations Defined

L3

L1

L1

TM

TM

TM

TM

M2

Personal Group

Gen 2

Gen 1

Gen 1

Gen 3

M2 M2

Gen 2Gen 1

L1

M2

Gen 1

Generations are re-calculated each month so when a Consultant achieves the Career Title of Team Mentor

for the first time, they become a 1st Generation to their upline, even if there was already a Team Mentor

or higher below them.

In this example, the new L1 becomes a 1st Generation to the L3 and the L1 below is now a 2nd Generation

to the L3 but a 1st Generation to the new L1.


Building Mentors & Building LeadersBe Paid-as a Team Mentor

Generation Overrides

• Pays on the sales of your downline generations.

• Based on your Paid-as Title for the current period.

• Pays in addition to Level Overrides.

Paid-as Title L1 L2 L3 L4

Generation 1 4% 4% 4% 4%

Generation 2 3% 4% 4%

Generation 3 3% 4%

Generation 4 3%

L3

L1

L1

TM

TM

TM

TM

M2

M2

M2


L3

L1

L1

TM

TM

TM

TM

M2

M2

M2

Lvl 1- 7%

Lvl 2- 5%

Lvl 3- 3%


L3

L1

L1

TM

TM

TM

TM

M2

M2

M2

Lvl 1- 7%

Lvl 2- 5%

Lvl 3- 3%

2% GVO


L3

L1

L1

TM

TM

TM

TM

M2

M2

M2

Lvl 1- 7%

Lvl 2- 5%

Lvl 3- 3%

2% GVO


Gen 1 - 4%

Gen 1 - 4%

Gen 1 - 4%

L3

L1

L1

TM

TM

TM

TM

M2

M2

M2

Lvl 1- 7%

Lvl 2- 5%

Lvl 3- 3%

2% GVO


Gen 1 - 4%

Gen 1 - 4%

Gen 1 - 4%

Gen 2 - 4% Gen 2 - 4%

Compensation Plan

Return to the Beginning

compensation plan - compelling creations · principles of success the first step to understanding...

Documents