idlife compensation plan faq 012114 · 2. ˜˜how do members ˚gure into the compensation plan?...

23
COMPENSATION PLAN www.Personalized-IDLife.com

Upload: buitram

Post on 22-Apr-2018

241 views

Category:

Documents


5 download

TRANSCRIPT

Page 1: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

C O M P E N S AT I O N P L A N

www.Personalized-IDLife.com

Page 2: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

1.   If I sign up as a Member, do I get $100 per Associate that signs up?No, as a Member you do not receive commission when you sign up a Member or Associate. However, as a Member, if you sign up two Associates at the $399 level, you automatically become an Associate and can start earning $100 commission on every Associate you sign up.

2.   How do members �gure into the Compensation Plan?Members receive a 10% discount on all purchases. They will receive 10% commission on all retail sales. They can qualify for the 3 & Free and the $200 bonus for having a total of (9) customers. They are not eligible for the other commissions until they qualify for an Associate.

3.   How does the “3 and Free” Program work?There is no limit to the number of customers to reach the $300. To continue to get the $100 of product monthly, you must have $300 of Quali�ed Volume from customers on auto-ship.

4.   On the Fast Start Bonus, do the (6) additional customers have toalso be enrolled on auto-ship?

Yes.

5.   On the Residual Income Matching Bonus, is there a maximumnumber of personally sponsored associates?

No, there is no maximum.

6.   When selling the products to customers how much do I get as anAssociate?

When retailing the products person to person you can keep the mark-up instantly – 30% as an Associate and 10% as a Member.

7.   How many days does a customer have to return the product for afull return?

We have a 100% money back guarantee for 90 Days.

8.    If they have opened the product, does it change the refundedamount?

The refund amount will not change even if the product is opened.

9.   If product is returned, how does that a�ect the residual payment that was already made on that purchase (i.e. will the Associate's subse-quent residual check be deducted for the returned product?)

The commissions earned o� a product that is returned will be deducted from future commissions.

10.   Car Bonus – What happens when you hit a level to qualify for a car bonus one month but not the next?

We pay you 50% of the car bonus for the �rst month you do not qualify and give you a chance to make the appropriate rank for the next month.  If you do not qualify for the second month the process starts over.  You have to re-qualify.

11.   If I’m an Associate, can I buy products for my husband and daugh-ter at my discount?

Yes, they will be considered a household customer and will get the Associate/Member discount.

12. Is the “3 and Free” also available for customers? No, it’s only available for Members and Associates.

13. Will taxes be taken out of weekly and monthly commissions for Members and Associates?

No. Members and Associates that make $400 and over with IDLife will be sent a 1099 Form at the end of the year for tax purposes.

Page 3: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

1.   If I sign up as a Member, do I get $100 per Associate that signs up?No, as a Member you do not receive commission when you sign up a Member or Associate. However, as a Member, if you sign up two Associates at the $399 level, you automatically become an Associate and can start earning $100 commission on every Associate you sign up.

2.   How do members �gure into the Compensation Plan?Members receive a 10% discount on all purchases. They will receive 10% commission on all retail sales. They can qualify for the 3 & Free and the $200 bonus for having a total of (9) customers. They are not eligible for the other commissions until they qualify for an Associate.

3.   How does the “3 and Free” Program work?There is no limit to the number of customers to reach the $300. To continue to get the $100 of product monthly, you must have $300 of Quali�ed Volume from customers on auto-ship.

4.   On the Fast Start Bonus, do the (6) additional customers have to also be enrolled on auto-ship?

Yes.

5.   On the Residual Income Matching Bonus, is there a maximum number of personally sponsored associates?

No, there is no maximum.

6.   When selling the products to customers how much do I get as an Associate?

When retailing the products person to person you can keep the mark-up instantly – 30% as an Associate and 10% as a Member.

7.   How many days does a customer have to return the product for a full return?

We have a 100% money back guarantee for 90 Days.

8.    If they have opened the product, does it change the refunded amount?

The refund amount will not change even if the product is opened.

9.   If product is returned, how does that a�ect the residual paymentthat was already made on that purchase (i.e. will the Associate's subse-quent residual check be deducted for the returned product?)

The commissions earned o� a product that is returned will be deducted from future commissions.

10.   Car Bonus – What happens when you hit a level to qualify for a carbonus one month but not the next?

We pay you 50% of the car bonus for the �rst month you do not qualify and give you a chance to make the appropriate rank for the next month.  If you do not qualify for the second month the process starts over.  You have to re-qualify.

11.   If I’m an Associate, can I buy products for my husband and daugh-ter at my discount?

Yes, they will be considered a household customer and will get the Associate/Member discount.

12. Is the “3 and Free” also available for customers?No, it’s only available for Members and Associates.

13. Will taxes be taken out of weekly and monthly commissions forMembers and Associates?

No. Members and Associates that make $400 and over with IDLife will be sent a 1099 Form at the end of the year for tax purposes.

Page 4: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on
Page 5: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

GETTING STARTED – 10 WAYS TO EARN INCOME + INCENTIVE TRIPS

1. Retail Profit ( Paid Weekly )

2. Fast Start Bonus ( Paid Weekly )

3. THREE and your product is FREE

4. Business Builder Bonus ( Paid Weekly )

5. Residual Income Bonus ( Paid Monthly )

6. Residual Matching Bonus ( Paid Monthly )

7. Generational Leadership Bonus ( Paid Monthly )

8. Global Pool ( Earned Monthly, Paid Quarterly )

9. Rank Advancement Bonus

10. Car Bonus

C O M P E N S A T I O N P L A N 1

Page 6: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

2

How to Get Started in IDLIFE:

You can simply join us as a Member for a $99 enrollment fee.

This allows you to purchase products at a wholesale discount of 10%. You canearn the rank of Independent Associate and the 30% wholesale discount by simply accumulating $500 PV or enrolling (two) Associates at $399. You can also upgrade to Associate at any time. (Business Builder commissions do not apply, $0 PV, $0 CV)

You can also decide to join as an Independent Associate by making the decision to purchase the $399 Business Builder Kit to get your business rolling. You permanently receive a 30% wholesale discount on all products. The Business Builder Kit includes $499 worth of retail product and your $99 enrollment fee for the discounted price! ($300 PV, $100 CV )

1. Retail Profit – Paid Weekly: Retail sales are the foundation of theIDLife Compensation Plan. As an IDLife Associate, when you sell product to Retail Customers in person or via your personalized replicated website, you earn the difference between the wholesale price and the selling price. Products ordered from the website are sold to Customers at the Suggested Retail Price. When retailing the products person-to-person to your Customers you instantly receive the 30% mark-up.

I D L I F E

Page 7: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

3

2. Fast Start Bonus – Paid Weekly: You are rewarded for getting startedquickly in your first 30 days. After you have enrolled as an Associate you simply follow this path and receive a $100 bonus and Free product.

Bonus # 1Complete your ID Nutrition order included in your Business Builder Pack on autoship or just place an ID Nutrition order on autoship. Then enroll one additional ID Nutrition customer on autoship and receive $100 bonus.

Bonus # 2 After completing Three & Free, just add on (6) additional Customers on autoship. Making a total of (9) ID Nutrition Customers plus you on autoship and receive an additional $200 bonus.

3. THREE and your product is FREE:There is no easier way to get your product for FREE then to sign up three or more Customers who are ordering on autoship. Minimum total to qualify is $300 TQV for 3 or more Customers.

4. Business Builder Bonus – Paid WeeklyThe Business Builder bonus rewards Associates for Business Building activity. You earn a one-time bonus for each Associate you enroll at the $399 level.

C O M P E N S A T I O N P L A N

Page 8: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

4

5. Residual Income - Paid Monthly Residual income commissions are the core of your lifetime residual income! Building a stable Associate and Customer base will allow you to receive bonuses each month from product orders and re-orders generated in your organization down to ten (10) levels deep.

Associates must reach the paid rank of Director or above in order to be eligible to earn Residual Income Bonus. Dynamic Compression maximizes the benefits of the Residual Income plan. Simply stated, this removes all inactive people from each level and allows you to have active volume generating Associates at each level, thereby receiving the maximum benefit from this Residual Income commission.

Requirements: Must be “Active.” Must maintain paid rank of Director or above according to chart.

I D L I F E

Page 9: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

5C O M P E N S A T I O N P L A N

6. Residual Match ( Paid Monthly )Earn Matching Bonuses of up to 20% on the Residual Income Bonus of your personally sponsored Associates. Plus, earn up to 10% Matching Bonuses on up to the three (3) additional generations based on the Associates “paid as” rank starting at Regional Director. The bonus will look for three generations of Regional Director or above and pay you a match on their commissions. Matching Bonuses encourage Sponsors to mentor and help develop Associates deep within their marketing organization.

Requirements: Must be “Active.” Must maintain paid rank of Regional Director or above according to chart.

7. Volume Match ( Paid Monthly )IDLife rewards the development of leaders. As Associates develop leadership within their organization, their rewards grow exponentially. When an Associate reaches the rank of Executive Director (or above), and as they develop new Regional Directors (and above) within their organization, they will be paid down to as many as four (4) generations of Regional Directors (and above). A Generation begins when a qualified Regional Director or above is found in any leg of their Personal Enrollment Tree and ends with, but does not include, the next Qualified Regional Director or above.

Requirements: Must be “Active.” Must maintain paid rank of Executive Director or above according to chart.

Generational Leadership Bonus

Matching Bonus

Page 10: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

6 I D L I F E

8. Global Pool (Earned Monthly, Paid Monthly)Reaching for the stars has its own reward. The Global Pool rewards leaders who reach beyond their dreams and continue building the company and the future by generating high sales volume. Two percent (2%) of IDLife Worldwide Qualified Volume ( QV ) created from the Residual income will be shared by qualified National Directors and above. The Global Pool pays in direct proportion to the Associates’ sales contributions to the total Group Volume. As you move up a rank you will continue to receive your qualified portion of each bonus.

* The Global Pool is paid monthly. You must be qualified as a National Director or above for 2 consecutive monthsRequirements: Must be “Active.” Must maintain paid rank of National Director or above according to chart.

9. Rank Advancement Bonus – Paid MonthlyThis bonus will pay a special one-time commission the first time an Associate reaches a specified rank and maintains it for two consecutive pay periods.

If an Associate earns more than a single rank advancement bonus in a single 60 day period (ie: the distributor jumps from Executive Director to VP Director), the Associate would be due two rank advancement bonuses.

Requirements: Must be “Active.” Must maintain paid rank for (two) consecutive pay periods according to the chart. * IDLife will pay the International $10,000 per month and Global bonus at $10,000 per month until entirebonus is paid.

Rank Advancement Bonus

Global Pool Summary

Page 11: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

7C O M P E N S A T I O N P L A N

10. Car Bonus - Paid MonthlyBeginning at the rank of National Director or above, bonuses will be paid as long as rank is maintained for two pay periods. For the first month you do not qualify, you will receive 50% of the car bonus. If you miss the second month you must re-qualify and start over. All Founding Members at the Executive Director level will receive $400 bonus.

* Car will be Black, White, Silver. (BMW, Mercedes, Cadillac, Audi, SUV / Truck or a premium car approved by Corporate)

To Achieve Rank and Maintain Ranks

TO ACHIEVE AND MAINTAIN RANKS IN THE IDLIFE COMPENSATION PLAN

1. Accumulate $100 PV in sales2. One Active Leg3. Total Qualifying Volume (TQV) of $100

DIRECTOR

Member* (10% Discount) Must have purchased the $99 Starter kit.

Associate* (30% Discount) Must have initial purchase of $399

Business Builder Kit or earned the rank of Associate.

Monthly Requirements:

AREA DIRECTOR

1. Accumulate $150 PV in sales2. Two (2) Active Legs3. Total Qualifying Volume (TQV) of $600

REGIONAL DIRECTOR

1. Accumulate $200 PV in sales2. Two (2) Active Legs3. Total Qualifying Volume (TQV) of

$1,200.

MANAGING DIRECTOR

1. Accumulate $250 PV in sales2. Three (3) Active Legs3. Total Qualifying Volume (TQV) of

$2,500—not more than 55% from one leg

Page 12: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

8 I D L I F E

1. Accumulate $400 PV in sales 2. Five (5) Active Legs—minimum of two

(2) Senior Directors not in same leg 3. $25,000 (TQV) within your Enrollment

Tree—not more than 40% from one leg

NATIONAL DIRECTOR

1. Accumulate $450 PV in sales 2. Six (6) Active Legs—minimum of two (2)

Executive Directors not in same leg 3. $50,000 (TQV) within your Enrollment

Tree—not more than 40% from one leg

VP DIRECTOR

1. Accumulate $500 PV in sales 2. Eight (8) Active Legs—minimum of two

(2) National Directors not in same leg 3. $100,000 (TQV) within your Enrollment

Tree—not more than 40% from one leg

PRESIDENTIAL DIRECTOR

1. Accumulate $500 PV in sales 2. Ten (10) Active Legs—minimum of three (3)

National Directors in minimum of 2 legs 3. $200,000 (TQV) within your Enrollment

Tree—not more than 40% from one leg

NATIONAL PRES. DIRECTOR

1. Accumulate $500 PV in sales 2. Twelve (12) Active Legs—minimum of

three (3) National Directors and one (1) Presidential Director in minimum of 2 legs

3. $500,000 (TQV) within your Enrollment Tree—not more than 35% from one leg

INTERNATIONAL PRES. DIRECTOR

1. Accumulate $500 PV in sales 2. Twelve (12) Active Legs—minimum of

three (3) National Directors and two (2) Presidential Directors in minimum of 3 legs

3. $1,000,000 (TQV) within your Enrollment Tree—not more than 30% from one leg

GLOBAL PRES. DIRECTOR

* Member can achieve next rank of Associate with $500 PV or by enrolling 2 new Associates at $399.

SENIOR DIRECTOR

1. Accumulate $300 PV in sales 2. Four (4) Active Legs 3. Total Qualifying Volume (TQV) of

$5,000—not more than 50% from one leg

EXECUTIVE DIRECTOR

1. Accumulate $350 PV in sales 2. Five (5) Active Legs 3. $12,500 (TQV) within your Enrollment

Tree—not more than 40% from one leg

Page 13: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

9C O M P E N S A T I O N P L A N

DEFINITION OF TERMS & CONDITIONS

Active

Associates must maintain at least $100 Personal Volume (PV) to be considered Active for that period. If an Associate is not active in the period, they receive no commissions from their downline. However, they will receive personal retail commissions from their client purchases even if they are not Active. An Associate’s Customer purchases will accrue to the Associate’s PV and count toward Active status.

Active Leg

Any first level Associate and their entire down-line where at least one person is considered to be Active.

Advancement Bonus

When a person is promoted to Executive Director for the first time and holds the title for two consecutive periods, they will receive a one-time flat dollar bonus. The amount of the bonus is based on the rank they are promoted to (see table above) Note 1: The consecutive requirement does not need to include the month of promotion.Note 2: For the IPDIR and GPDIR bonus amounts, the bonus will be paid in $10,000 installments until the full amount has been paid. Note 3: If an Associate skips multiple titles, the titles skipped will also be awarded as long as the title has been held for two consecutive periods. Note 4: There is no time limit for when this bonus can be achieved.

Associate

A generic term for those who are participating in the career path of the commission plan. Associates may enroll other Associates and Customers.To become an Associate, a person must purchase the $99 enrollment kit and become a Member and the purchase the $300 Business Builder Kit or have $500 Personal Volume (PV)

Business Builder Bonus

When an Associate sponsors a new Associate and the new Associate purchases the $300 Business Builder Kit, the Sponsoring Associate will receive a $100 one-time bonus if they are Active.

Career Title (Recognition Title)

An Associate’s career title is their recognition title or the highest title they have achieved. An Associate’s Career Title does not change unless they are promoted. For example, Joanna met the requirements to be promoted to the title of Regional Director in June. Her Career Title is now Regional Director and will remain so until she promotes to a higher title or is permanently demoted

Page 14: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

1 0

(see Demotion Policy). In July, she is paid-as a Regional Director. Her Career Title and Paid-as Title are the same. In August, she is paid-as a Director. Her Career Title remains as a Regional Director but her Paid-as Title for August is Director.

Commissionable Volume (CV)

Each inventory item has both a Qualifying Volume (QV) and Commissionable Volume (CV) assigned to it. Commissionable Volume (CV) is the volume on which commissions are paid. In this plan, the Commissionable Volume will be equal to 75% of the Wholesale Amount unless otherwise disclosed.

Compression (General)

When an Associate is canceled and no longer part of the company, their down-line is compressed to their up-line filling the gap left by the canceled Associate. For example, Sarah had three legs: Joseph, Emma, and John. Sarah failed to meet the requirements to maintain her status as an Associate and was therefore canceled. Because Sarah was canceled, Joseph, Emma, and John, and their respective down-lines, were compressed up to Sarah’s up-line, Harry. Joseph, Emma, and John are now each considered legs to Harry (i.e. they now reside on his first level).

Compression (Leader 1 and higher)

If an Associate that was paid-as an MDIR or higher in the last four periods is canceled (whether voluntarily or involuntarily), their down-line will only be compressed up under the following conditions:

1. If their Personal Sponsor has been paid-as an MDIR or higher at least once in the last four periods, then the down-line will immediately be compressed up. 2. If their Personal Sponsor has not been paid-as an MDIR or higher at least once in the last four periods, then they will be given the following six periods to be paid-as an MDIR or higher at least twice. If the Associate promotes to MDIR in the last of the six month period, then will be given the following period to qualify as an MDIR again (to meet the two periods of being paid-as MDIR or higher).

I D L I F E

Page 15: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

1 1C O M P E N S A T I O N P L A N

a. If the Personal Sponsor qualifies under these conditions, then the down-line of the canceled Associate will be compressed up upon the completion of the qualifications. b. If the Personal Sponsor does not qualify under these conditions, the position of the canceled Associate will remain permanently vacant.

General Note: The term compression and roll-up are often used interchangeably within the industry. It is important to understand what an individual is referring to when they speak or ask about compression. For this reason, we have defined our use of these terms in this document.

Customer

A Customer is an individual who purchases products for personal use and has not signed an agreement with the company. There are three types of Customers: Retail Customers, Preferred Customers and Household Customers. When used alone, the term “Customer” refers to all types.

Retail Business Centers are not considered part of the term of Customer.Customers are not allowed to sponsor (i.e. have a down-line), do not receive commissions, and are not credited with volume. The volume from a Customer’s purchase(s) is credited to the Associate who sponsored them. Customers do not hold positions in a genealogy. They are considered to be a Level 0 to their sponsor (rather than a Level 1 which an Associate would be considered to be to their sponsor).

Down-line

All of the people below you are considered to be part of your down-line.

Eligible

An Associate is considered eligible to receive a commission if they meet the Career Title requirements for a particular payout. For example, an Associate is eligible to receive the Matching Regional Director Advancement Bonus if they have a Career Title of Regional Director or higher. If they had a lesser title, they would not be Eligible to receive the bonus even though they might be fully qualified at the lesser title. Eligibility does not mean an Associate will receive the particular payout. To receive a payout, an Associate must be both eligible and qualified. It is possible for an Associate to be eligible but unqualified (i.e. they have a Career Title of Regional Director making them eligible for the Matching Regional Director Advancement Bonus but are paid-as a Assoc. Director which makes them unqualified to receive it) and likewise, is possible for them to be ineligible but qualified (i.e. they have a Career Title of Assoc. Director and are qualified at that title but are ineligible for the Matching Regional Director Advancement Bonus). Please also refer to the definition of Qualified. An Associate must be both eligible and qualified to receive a particular payout.

Page 16: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

1 2

Enroller

The person who introduces an individual to the company is considered to be the “Enroller.”

Enrollment Kit – Independent Associate

The Independent Associate Enrollment Kit will be priced at $399 and contain $499 in Retail Products as well as be combined with the $99 base enrollment fee. This Product Kit will fulfill the requirement to become Independent Associate Qualified. $300 in QV and $100 in CV will be assigned to this Product Kit. Fast Start Bonus – A

Independent Associates who meet the following requirements will receive a $100 one-time bonus. To receive this bonus an Independent Associate must: • An Active ID Nutrition autoship Order placed • Enrolled 1 Customer with an Active ID Nutrition autoship and an Order placed. • Complete this in first 30 days after enrollment.

Fast Start Bonus – B

Independent Associates who meet the following requirements will receive a $200 one-time bonus. To receive this bonus an Independent Associate must:An Active ID Nutrition autoship Order placedEnrolled 9 Customer with an Active ID Nutrition autoship and an Order placedComplete this in the first 60 days after enrollment.Please Note this can be earned in addition to Fast Start Bonus - A

Generation

The relationship between one Regional Director or higher and another Regional Director or higher, based on Paid-as Title. If a RDIR or higher is not paid-as a RDIR, they are not considered a Generation to their up-line RDIR or higher.

Global Pool

Paid-as National Directors and higher who have been paid-as National Director or higher for two consecutive periods (current period and previous period) may receive a portion of the Monthly Global Pool.The total size of the pool will represent 2% of the company CV in the period. Paid-as National Directors and higher must have been paid as a National Director or higher in both the current and previous period in order to receive a portion of the pool. The portion each distributor receives will be based on the lowest Paid-as Title of the current or previous period.Mini Pools will be broken down of the 2% as follows:National Director Pool: 34% of 2%VP Director Pool: 26% of 2%Pres. Director Pool: 18% of 2%

I D L I F E

Page 17: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

1 3C O M P E N S A T I O N P L A N

National Pres. Director Pool 12% of 2%Int. Pres. Director and above Pool: 10% of 2%

Associates that are paid-as a higher title will be able to participate in each of the inclusive mini pools.

For Example: Robert was paid-as a Presidential Director in January and a National President Director in February. When February commissions are calculated Robert will receive a portion (based on his Group Volume Contribution amount) of the National Director, VP Director, and Pres. Director pools. Because Robert wasn’t paid-as a National Pres. Director in January, he will not be able to participate in the National Pres. Director mini pool since it requires two consecutive periods of being paid-as a NPDIR+ to qualify.

The portion of each Mini Pool that will pay to those who qualify will be based on the contribution amount in their GV.

Group

An Associate themselves and their entire down-line, down to but not including, the next Regional Director (Paid-as Title) or higher. This is also sometimes referred to as a “personal group” when talking about a specific Associate and their group.

Group Volume (GV) – Global Pool Contribution

Group Volume is the QV from the Associate themselves and their entire down-line down 10 Levels Deep. This volume is used for purposes of the Global Pool contribution percentage.

Household Customer

A household Customer is an individual who purchases products for personal use under an existing distributor and has not signed an agreement with the company. They will receive the 10% or 30% discount appropriate for Member or Associate. There are three types of Customers: Retail Customers, Preferred Customers and Household. When used alone, the term “Customer” refers to all three types.

Page 18: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

1 4

Independent Associate Qualified

There are three methods in which a person can become “Independent Associate Qualified”:Have at least 500 in Lifetime Personal Volume (LPV) or Personally Enroll 2 new Independent Associates (who purchased the $300 Business Builder Kit in their lifetime or Personally Purchased the $300 Business Builder Kit

Note 1: Requirement #2 does not require both of the new Independent Associates to be enrolled in the same month. This requirement will be met once a Member has enrolled two new Independent Associates within their lifetime.Note 2: The requirements above will allow a Member to be considered Independent Associate Qualified, it will not automatically make them Active (see Active Definition).

Leg

A leg begins with a first level Associate and includes all of the Associates beneath them. An Associate has as many legs as they have first level Associates. For example, if Sally has five first level Associates then she has five legs. Sarah is one of Sally’s first level Associates. Sarah, and her entire down-line, is considered to be one leg to Sally.

Level

The position an Associate has in a down-line relative to another up-line or down-line Associate. Associates personally sponsored (i.e. first level) are Level One. Those Associates sponsored by Level One Associates are Level Two, relative to the original Associate. Customers are not considered when counting levels and do not occupy a position in an Associate’s genealogy.

Lifetime Personal Volume (LPV)

The total Qualifying Volume (QV) of a single Associate from orders placed personally and by their personally sponsored Customers (orders placed directly with the company by Customers) since they signed up with the company. Please note this volume is a cumulative volume and is never reset unlike PV which is a reflection of PV generated each month.

Matching Residual Income Bonus

Paid-as Regional Directors and above may receive a Matching percentage of their down-line Associates Residual Income Bonuses. The match percentage and depth that an Associate will receive is based upon their own personal Paid-as title for the month. This bonus will match on all earnings of $10 or more. Regional Directors and higher will receive 20% on their own personally enrolled Associates Residual Income Bonus. Manager Directors and above will receive an additional percentage on down-line Generations based upon their Paid-as

I D L I F E

Page 19: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

1 5C O M P E N S A T I O N P L A N

an additional percentage on down-line Generations based upon their Paid-as Title (see table above).

Minimum Commission Check

$10 – no commission check will be issued for less than $10

Paid As Title (also referred to as Paid-as)

Each Associate is paid at the title for which they qualify during the period. The requirements to be paid-as a title is the same as the requirements to promote to that title. If in any period they fail to achieve their Career Title level, they are paid at the lower title to which they do qualify for during the period. They retain their Career Title but are paid as the title they actually qualify for.

Period

A period refers to the specific time frame in which qualifications and payouts are calculated for. In this plan, a period is equal to an actual Calendar month. Six periods would be six calendar months.

Personal Volume (PV) The total Qualifying Volume (QV) of a single Associate from orders placed personally and by their personally sponsored Customers (orders placed directly with the company by Customers).

Personal Sponsor

The Associate directly above another Associate in the genealogy is considered to be the “Personal Sponsor.” Then the personal sponsor may be different than the Enroller.

Placement Genealogy

The Placement Genealogy follows the line of Personal sponsorship (see also Personal Sponsor).

Preferred Customer

A Preferred Customer is a Customer that is signed up on autoship and receives a 10% discount off the retail price of the product.

Promote (Promotion)

An Associate promotes to a new Career Title when they meet all of the qualifications for that title in the period. The promotion is effective the first day of the same period meaning that regardless of what day the promotion was actually qualified for, the new Career Title is effective for the entire period. For example, if an Associate meets the qualifications for a Leader 1 on June 23rd, they “promote” to the title of Leader 1 for the entire period of June (effective June 1) and will be paid-as a Leader 1 for the entire period of June.

Page 20: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

1 6

Qualified

An Associate is considered to be Qualified if they meet the Paid-As requirements for a particular payout and/or title. An Associate will only receive the payouts that they are both eligible and qualified for. For example, an Associate may be eligible for the Matching Residual Income Bonus because they have a Career Title of Regional Director. However, if they are paid as an Area Director or below, then they are unqualified for the bonus and would thus not receive it. In a similar manner, an Associate may be qualified as an Area Director but ineligible to receive a Matching Residual Income Bonus because that pays only to Regional Directors and above.

Qualified Leg

Qualified Legs require that at least one individual in the leg is qualified to be paid as a specific title position (or above) during the month. For example, to be a National Director, one needs five Active Legs plus two legs of which must have at least one representative that is paid-as a Senior Director or higher. Qualified Legs depend on the monthly Paid-As Title.

Note 1: For qualifications purposes of the NPDIR and above, a count is specified and the minimum number of legs this count must exist in. For example, to become a NPDIR a person needs at least 2 legs were a total of 3 National Directors exist within them (i.e. One leg may contain 1 NDIR+ and another leg may contain 2 NDIR+). This same requirement could be fulfilled if they have more than the minimum of qualified legs specified (i.e. 3 separate legs with a NDIR+ in each).

Qualifying Volume (QV)

Each inventory item has both a Qualifying Volume (QV) and Commissionable Volume (CV) assigned to it. QV is used for Personal Volume (PV), Group Volume (GV), and Total Team Qualifying Volume (TQV)calculations and is used solely to determine if the Associate is qualified based on the terms of their respective title. The Business Builder Bonus is the only bonus that is paid based on the Qualifying Volume (QV) instead of the Commissionable Volume (CV). All other commissions and bonuses (other than Retail Profit) are paid based on Commissionable Volume (CV). The Qualifying Volume in this plan is equal to the Wholesale Amount (70% of Retail).

Refer 3 and yours is Free

When an Associate or Member refers three (3) or more Preferred Customers to the company and monthly autoship Program and the referred Preferred Customers have generated at least 300 in PV, then the Associate or Member will receive their next autoship of ID Nuitrition for free.

I D L I F E

Page 21: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

1 7C O M P E N S A T I O N P L A N

Reinstatement Policy

If an Associate is canceled or resigns, they may request reinstatement at any time and, if approved, will be reinstated under their original sponsor. Their down-line organization will not be reinstated nor their previous title. They will be considered a new Associate for all intent and purposes. If an Associate wishes to join under a different sponsor, they must wait for a minimum of six months after termination before reapplying and will start as a new Associate, without their former down-line and title.

Residual Income Bonus - Level 1-10 Overrides

Active Associates that are paid-as a Director or higher may receive a percentage on the Commissionable Volume (CV) from the sales of their down-line through ten (10) levels. The percentages and number of levels that an Associate receives is based on their Paid-as Title and is regardless of the title of the people below them. If an Associate is unqualified or ineligible, then that Level Override will not roll up-line. If an Associate is Inactive, then that Level Override will roll up-line. Please refer to the definitions of Active, Eligible, and Qualified.

Retail Business Center

Associates will be allowed to enroll a special type of Customer referred to as Retail Business Centers. Retail Business Centers will receive a 40% discount from Retail Pricing on all products. Retail Business Center purchases will not be included in the Personal Volume (PV) for their sponsoring Associate. Retail Business Centers will be considered Level 1 to their sponsoring Associate. Volume generated from Retail Business Center purchases will be at a 50% CV. Retail Business Centers are not allowed to sponsor other Customers or Associates.

For an Associate to enroll a Retail Business Center the Associate would need to work with the home office for approval.

For example, Jacob enrolls a Retail Business Center called Joe’s Nutrition. Joe’s nutrition purchases a $100 retail product for $60. Normally this product would have had a 52.50 CV and 70 QV, but because it was purchased by a Retail Business Center, this product will be assigned 30 CV and 60 QV.

Retail Customer

A Retail Customer is a Customer that is not signed up on autoship. They pay the full retail price and purchase when they desire.

Page 22: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

1 8

Retail Profit

Associates will receive a Retail Profit on all Customers sales that were paid above the wholesale price. Member Associates will receive up to 10% of the retail price, Independent Associates and above will receive up to 30% of the retail price. The amount of Retail Profit paid will not exceed the difference between the wholesale price and the price paid.

For example Jason purchases from Brian’s replicated website an item that sells for $100 retail ($70 wholesale). Because Brian is a Member Associate, Brian will receive $10. If Brian was an Independent Associate, Brian would have received $30.

Andrea is a Preferred Customer and purchased an item that sells for $100 retail at her discounted Preferred Customer price of $90 (10% discount for Preferred Customers). Because Brian is a Member Associate, he will receive a $10 Retail Profit. If Brian was an Independent Associate, he would have received a $20 Retail Profit (eligible to receive up to $30, but since it was discounted for the Preferred Customer, only $20 was available to be paid).

Roll-up

Roll-up refers to the “rolling up” of payouts due to an Associate being inactive, unqualified, or ineligible and giving it to an Associate that is active, eligible, and qualified. In this plan, roll up on inactive is allowed in the Residual Income Bonus.

Total Team Qualifying Volume (TQV)

The total Qualifying Volume (QV) from an Associate and their entire down-line organization (unlimited depth). It includes ALL down-line Associates regardless of their titles.

For Title Qualification purposes, each title will have a maximum contribution allowed amount specified in the table above. This means that no more than the specified amount will be used towards the title qualifications from any one leg (including their own PV contribution).

Volume Match

Paid-as Executive Directors and higher may receive Generational LeadershipBonus Overrides on the Commissionable Volume (CV) from their down-lineGenerations and their personal groups. For example, a G1 would pay out on thefirst down-line RDIR or higher title (based on Paid-as Title) and all the peoplebelow them, down to but not including the next RDIR or higher (Paid-as Title).

I D L I F E

Page 23: idlife compensation plan faq 012114 · 2. ˜˜How do members ˚gure into the Compensation Plan? Members receive a 10% discount on all purchases. They will receive 10% commission on

Director Area  DirectorRegional  Director

Managing  Director

Senior  Director

Executive  Director

National  Director VP  Director

Presidential  Director

National  Presidential  Director

International  Presidential  Director

Global  Presidential  Director

PV  $  100.00    $                  150.00    $                        200.00    $                        250.00    $            300.00    $                  350.00    $                  400.00    $                450.00    $                              500.00    $                                      500.00    $                        500.00    $                        500.00  TQV  $                    -­‐        $                  600.00    $                  1,200.00    $                  2,500.00    $      5,000.00    $      12,500.00    $        25,000.00    $    50,000.00    $              100,000.00    $                      200,000.00    $        500,000.00    $  1,000,000.00  LEGS 1 2 2 3 4 5 5 6 8 10 12 12Downline  Rank  (Min.)

(2)  SD (2)  ED (2)  ND (3)  ND (1)  MD  &  (3)  ND (2)  MD  &  (3)  ND

Director Area  DirectorRegional  Director

Managing  Director

Senior  Director

Executive  Director

National  Director VP  Director

Presidential  Director

National  Presidential  Director

BillLevel  1 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%Level  2 5% 5% 5% 5% 5% 5% 5% 5% 5%Level  3 4% 4% 5% 5% 5% 5% 5% 5%Level  4 3% 3% 4% 4% 4% 4% 4%Level  5 2% 3% 4% 4% 4% 4%Level  6 2% 3% 4% 4% 4%Level  7 2% 2% 3% 3%Level  8 2% 2% 3%Level  9 1% 2%Level  10 1%

Regional  Director

Managing  Director

Senior  Director

Executive  Director

National  Director VP  Director

All  Presidential  Director  Levels

Personal  Recruits

20% 20% 20% 20% 20% 20% 20%

1st  Generation 10% 10% 10% 10% 10% 10%

2nd  Generation

5% 5% 10% 10% 10%

3rd  Generation

5% 5% 10% 10%

Regional  Director

Managing  Director

Senior  Director

Executive  Director

National  Director VP  Director

Presidential  Director

National  Presidential  Director

International  Presidential  Director

Global  Presidential  Director

1st  Generation 2% 2% 2% 2% 2% 2% 2%

2nd  Generation

3% 3% 3% 3% 3% 3%

3rd  Generation

3% 3% 4% 4% 4%

4th  Generation

4% 4% 5% 5%

Regional  Director

Managing  Director

Senior  Director

Executive  Director

National  Director VP  Director

Presidential  Director

National  Presidential  Director

International  Presidential  Director

Global  Pool  Summary

34% 26% 18% 12% 10%

Regional  Director

Managing  Director

Senior  Director

Executive  Director

National  Director VP  Director

Presidential  Director

National  Presidential  Director

International  Presidential  Director

Global  Presidential  Director

Rank  Advancement  

Bonus  $                  750.00    $            1,250.00    $        2,500.00    $                        5,000.00    $                          10,000.00    $            20,000.00   40,000.00$              

Regional  Director

Managing  Director

Senior  Director

Executive  Director

National  Director VP  Director

Presidential  Director

National  Presidential  Director

International  Presidential  Director

Global  Presidential  Director

Car  Bonus  $                  500.00    $                600.00    $                              750.00    $                                1,000.00    $                  1,500.00   2,000.00$                  

VOLUME  MATCH  (Paid  Monthly)

GLOBAL  POOL  (Paid  Monthly)

CAR  BONUS  (Paid  Monthly)

RANK  ADVANCEMENT  BONUS  (One  time)

RANK  UPGRADE  REQUIREMENTS

RESIDUAL  MATCH  (Paid  Monthly)

RESIDUAL  INCOME  (Paid  Monthly)