understanding the compensation plan modified 3/22/2007

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Understanding the Compensation Plan Modified 3/22/2007

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Page 1: Understanding the Compensation Plan Modified 3/22/2007

Understanding the Compensation Plan

Modified 3/22/2007

Page 2: Understanding the Compensation Plan Modified 3/22/2007

PC - Preferred Customer – A Preferred Customer receives a 30% to 40% discount on all Allegre products. To qualify as a preferred Customer, the individual must submit the Preferred Customer Application, commit to a specific monthly purchase, be on the Back-up Order Program and authorize the company to debit their credit card or checking account for the monthly purchases.

IR – Independent Representative (Distributor) for Allegre (Fills out and signs the Independent Representative Agreement Form and pays $29.00)

Understanding the Compensation PlanKnowing the Terms

Page 3: Understanding the Compensation Plan Modified 3/22/2007

Understanding the Compensation Plan

Active Representative - A Representative who has generated the minimum Personal Business Volume (PBV) requirement during the Business Month and qualifies to receive compensation under the “Plan”. The PBV may be accrued through the sales or purchases of Allegre products, and/or through travel sales if the Representative is also an ATC Independent Travel Agent.

PBV: Personal Business Volume is the Business Volume (BV) produced by a particular Independent Representative. (Also known as Personal Volume).

BV – The net amount of Business Volume on which qualifications, commissions, overrides and bonuses are calculated. All products are assigned a wholesale Business Volume.

Knowing the Terms

Page 4: Understanding the Compensation Plan Modified 3/22/2007

Understanding the Compensation Plan

BQ: Bonus Qualified – Account Executives, Managers, and Directors who have produced a specified minimum Personal Business Volume (PBV) during the business month are Bonus Qualified. Product and Travel BV’s may be combined to attain the required qualifications. Varied qualifications are required for the Car/Expense Bonus, Revenue Sharing, Corporate Bonus Programs and Marketing Incentives. (See plan for details).

Knowing the Terms

Page 5: Understanding the Compensation Plan Modified 3/22/2007

Understanding the Compensation PlanKnowing the Terms

Back-up Order Program: All individuals who have completed and submitted the Allegre Preferred Customer Agreement Form preauthorizes Allegre to send a Back-up order and to make an automatic withdrawal from their checking account, or a charge to their credit card to pay for each Back-up Order in the event that they fail to qualify their position with the minimum monthly PBV. We like to call it our INSURANCE Program. The Back-up Order Program is the system through which a Preferred Customer specifies a standing monthly order for Allegre products, and authorizes ALLEGRE to charge a designated credit card for the monthly shipment of products.

Representatives may select whatever products, in whatever quantities, they desire. However, the minimum purchase for “active status” is as follows:

o       Associates through Directors - $29 BV

o       Executive Directors through Presidential Directors - $79 BV

Knowing The Terms

Page 6: Understanding the Compensation Plan Modified 3/22/2007

Understanding the Compensation PlanKnowing the Terms

Generation – Includes all tiers, or levels, in your Downline from one Qualified Account Executive or above to the next succeeding Qualified Account Executive or above. Upon qualification, you are your own first generation.

Knowing the Terms

Page 7: Understanding the Compensation Plan Modified 3/22/2007

Knowing the Terms

Understanding the Compensation PlanKnowing the Terms

LB: Leadership Bonus is a bonus payable to qualified Account Executives, Managers, and Directors.

Page 8: Understanding the Compensation Plan Modified 3/22/2007

Business Categories

Preferred Customer Program

Independent Representative Program

Independent Travel Agent Program

Page 9: Understanding the Compensation Plan Modified 3/22/2007

Independent Travel Agent Tutorial Program

Become an ITA for $149.00

Enroll a Co-Applicant for $100.00

Page 10: Understanding the Compensation Plan Modified 3/22/2007

Sources of Income

$ Up to 70% Commission On Leisure Travel Sales

$ Earn a 30% Referral Fee - Refer someone to America’s Travel Companies and we will pay you 30% of their enrollment fee.

Page 11: Understanding the Compensation Plan Modified 3/22/2007

Preferred Customer Program

Become a Preferred Customer at 29 Business Volume and qualify for:

* 30-40% discount on all products

No additional expense- simply switch stores and purchase from Allegre

Shop From Your Own Store!

Page 12: Understanding the Compensation Plan Modified 3/22/2007

Independent Representative

Sign the Independent Distributor Agreement and qualify for:

* 30-40% discount on all products

* Build long term residual income

Page 13: Understanding the Compensation Plan Modified 3/22/2007

Compensation Plan

7 %N o rth A m erican Fam ily

7 %N o rth A m erican Fam ily

7 %N o rth A m erican Fam ily

7 %N o rth A m erican Fam ily

7 %N o rth A m erican Fam ily

7 %N o rth A m erican Fam ily

Y O UD is tr ibu tor

7 %Seven North American families benefit from every ITA enrollment or an Allegre product purchase. As an Allegre Independent Representative, produce your Business Volume requirement and qualify for commissions on the products purchased by families in your organization.

Page 14: Understanding the Compensation Plan Modified 3/22/2007

Compensation Plan

Seven North American families benefit from all the travel sold through your organization.

As an Allegre Independent Representative, produce your Business Volume requirement and qualify for travel bonuses on the travel sold by families in your organization.

YOU

Distributor2 %

1 %North American Family

1 %North American Family

1 %North American Family

1 %North American Family

3 %North American Family

5 %North American Family

Page 15: Understanding the Compensation Plan Modified 3/22/2007

Qualifications

•Submit the Independent Representative Agreement.

•29 PBV Requirement

Y O UA ssoc ia te

Page 16: Understanding the Compensation Plan Modified 3/22/2007

Benefits

•30% - 40% Retail Profits

•50% - 70% Travel Commissions (Travel Agents)

•Fast Start Bonus

•30% Commissions on ITTP and Co-Applicant Commissions

•Value and Career Pack bonuses (BQ)

Y O UA ssoc ia te

Page 17: Understanding the Compensation Plan Modified 3/22/2007

Qualifications

•Sponsor two active Allegre Preferred Customers or ITAs over any time period

or

•Generate $150.00 in Personal Business Volume (PBV) in one month.

•29 PBV Requirement

P C o r IT A P C o r IT A

Y O UA ccou n t E xecu tive

$150 PBVOr

Page 18: Understanding the Compensation Plan Modified 3/22/2007

Benefits

•30% - 40% Retail Profits

•50% - 70% Travel Commissions (Travel Agents)

•Fast Start Bonus

•30% ITTP and Co-Applicant Commissions

•Value Pack and Career Pack bonuses (BQ)

•Leadership Bonuses on two generations (BQ)

•Travel Bonuses on two generations (BQ)

•Revenue Sharing (BQ)

Y O U

A ccou n t E xecu tive

$150 PBV

Page 19: Understanding the Compensation Plan Modified 3/22/2007

Qualifications

•Sponsor five active Allegre Preferred Customers or ITAs over any time period

Or

Generate $500 in Personal Business Volume in one month

•29 PBV Requirement

P re fe rredC u s to m er

orIT A

P re fe rredC u s to m er

orIT A

P re fe rredC u s to m er

orIT A

P re fe rredC u s to m er

orIT A

P re fe rredC u s to m er

orIT A

Y ou

M anager$500 PBV

Or

Page 20: Understanding the Compensation Plan Modified 3/22/2007

Benefits

•30% to 40% Retail Profits

•50% - 70% Travel Commissions (Travel Agents)

•Fast Start Bonus

•ITTP and Co-Applicant Commissions

•Value Pack and Career Pack bonuses (BQ)

•Leadership Bonuses on three generations (BQ)

•Travel Bonuses on three generations (BQ)

•$50 Rank Advancement Bonus (BQ)

•Revenue Sharing (BQ)

Y ou

M anager

Page 21: Understanding the Compensation Plan Modified 3/22/2007

Fast Start Bonus

When an Independent Representative enrolls a new Preferred Customer and that new Preferred Customer orders their first product order(s) in the month of their enrollment / application date, the enroller/ original sponsor

will be paid a Fast Start Bonus (FSB).  The bonus will be 25% of the Business Volume of the Preferred Customer Order(s) in their initial

enrollment month. The enrolling sponsor must be Active to receive the Fast Start Bonus. If the enroller is not active the FSB will not be paid out,

instead the leadership bonus / generation overrides will be paid upline.

 

Page 22: Understanding the Compensation Plan Modified 3/22/2007

Career Pack and Value Pack Bonus

When a new distributor purchases a Value Pack or Career Pack within sixty days of their enrolment (application) date, the personal sponsor will receive a bonus. To be eligible for the Pack bonus, the personal sponsor must be Active and have also purchased a Career Pack. If the sponsor is not eligible for this bonus, then the bonus will roll upline to pay the first

eligible distributor. No Leadership Bonuses will be paid on "Pack" purchases.

• $30.00 Value Pack Bonus

•$50.00 Career Pack Bonus 

Page 23: Understanding the Compensation Plan Modified 3/22/2007

Rank Advancement Program

• As Independent Representatives advance in status, they can earn One-Time Advancement Bonuses. This bonus will be paid out after the Independent Representative has maintained the status for three consecutive months (or by advancing rapidly to another new higher status through Executive Director within the three-month period.)

Rank Advancement Bonus

Bonus

$50

$100

$200

$1,000

$2,000

Rank

Manager

Director

Executive Director

National Director

Presidential Director

Page 24: Understanding the Compensation Plan Modified 3/22/2007

Knowing the Terms

Leadership Advancement Program

•Independent Representatives who have purchased a Career Pack can double their Rank Advancement Bonus as they advance rapidly through the ranks of the compensation plan. If the Independent Representative advances to each status within the specified time allotted (see below), they will qualify for the Rapid Advancement Bonus. *Time to qualify (after month of enrollment)

Rank

Manager

Director

Executive Director

National Director

Presidential Director

*Time Frame

2 months

4 months

6 months

24 months

36 months

Bonus

$100

$200

$400

$2,000

$4,000

Leadership Advancement Bonus

Page 25: Understanding the Compensation Plan Modified 3/22/2007

M anager M anager

P re fe rredC u s to m er

orIT A

P re fe rredC u s to m er

orIT A

P re fe rredC u s to m er

orIT A

P re fe rredC u s to m er

orIT A

P re fe rredC u s to m er

orIT A

P re fe rredC u s to m er

orIT A

Y ou

Director

Qualifications

•Personally sponsor two Active Managers or above

And

•Have eight personally enrolled active Preferred Customers and/or ITAs

Or

•Generate $6,000 in Travel Personal Business Volume

over a 12 month rolling period

•29 PBV Requirement

$50,000 GTB

Or

Page 26: Understanding the Compensation Plan Modified 3/22/2007

Benefits

•30% to 40% Retail Profits

•50% - 70% Travel Commissions (Travel Agents)

•Fast Start Bonus

•ITTP and Co-Applicant Commissions

•Value Pack and Career Pack bonuses (BQ)

•Leadership Bonuses on four generations (BQ)

•Travel Bonuses on four generations (BQ)

•$100 Rank Advancement Bonus (BQ)

•Revenue Sharing (BQ)

Y ou

Director

Page 27: Understanding the Compensation Plan Modified 3/22/2007

D irector Director

P Cor

IT A

P Cor

IT A

P Cor

IT A

P Cor

IT A

P Cor

IT A

P Cor

IT A

P Cor

IT A

P Cor

IT A

Y ou

Executive Director

Qualifications

•Personally sponsor two Active Directors or above

And

•Have 10 personally enrolled active Preferred Customers

and/or Active ITAs

Or•Generate $10,000 in in Travel Personal Business Volume

over a 12 month rolling period

•79 PBV Requirement

$75,000 GTB

Or

Page 28: Understanding the Compensation Plan Modified 3/22/2007

Benefits

•30% to 40% Retail Profits

•50% - 70% Travel Commissions (Travel Agents)

•Fast Start Bonus

•ITTP and Co-Applicant Commissions

•Value Pack and Career Pack bonuses (BQ)

•Leadership Bonuses on five generations (BQ)

•Travel Bonuses on five generations (BQ)

•$200 Rank Advancement Bonus (BQ)

•Revenue Sharing (BQ)

D irector Director

P re fe rredC u s to m er

P re fe rredC u s to m er

P re fe rredC u s to m er

P re fe rredC u s to m er

P re fe rredC u s to m er

P re fe rredC u s to m er

P re fe rredC u s to m er

P re fe rredC u s to m er

Y ou

Executive D irector

Page 29: Understanding the Compensation Plan Modified 3/22/2007

Qualifications

• Personally sponsor four Directors or above

and

• Have 12 personally enrolled active preferred customers and/or active ITAs

and

•Have $25,000 in Organizational Business Volume (OV) in one business month

•Or•Generate $20,000 in Travel Personal Business Volume

over a 12 month rolling period •79 PBV Requirement

Director D irector

D irector D irector

Y ou

National D irector

$100,000 GTB

Or

Page 30: Understanding the Compensation Plan Modified 3/22/2007

Benefits

•30% to 40% Retail Profits

•50% - 70% Travel Commissions (Travel Agents)

•Fast Start Bonus

•ITTP and Co-Applicant Commissions

•Value Pack and Career Pack bonuses (BQ)

•Leadership Bonuses on six generations (BQ)

•Travel Bonuses on six generations (BQ)

•$1,000 Rank Advancement Bonus (BQ)

•Revenue Sharing (BQ)

•Car Bonus (CBQ)

Y ou

National D irector

Page 31: Understanding the Compensation Plan Modified 3/22/2007

Qualifications

•Personally Sponsor two Active National Directors

And

•Have fifteen (15) personally enrolled active preferred customers

and/or active ITAs

And

•Have $40,000 in Organizational Business Volume (OV) in the business month.

•Or•Generate $30,000 in Travel Personal Business Volume

over a 12 month rolling period •79 PBV Requirement

NationalDirector

NationalDirector

Y ou

Presidential D irector

Or$200,000

GTB

Page 32: Understanding the Compensation Plan Modified 3/22/2007

Benefits

•30% to 40% Retail Profits

•50% - 70% Travel Commissions (Travel Agents)

•Fast Start Bonus

•ITTP and Co-Applicant Commissions

•Value Pack and Career Pack bonuses (BQ)

•Leadership Bonuses on seven generations (BQ)

•Travel Bonuses on seven generations (BQ)

•$2,000 Rank Advancement Bonus (BQ)

•Revenue Sharing (BQ)

•Car Bonus (CBQ)

Y ou

Presidential D irector

Page 33: Understanding the Compensation Plan Modified 3/22/2007

Quarterly Revenue SharingThe Revenue Sharing Plan has been designed to provide maximum incentive for

both sponsorship and travel sales. It is equitable throughout the rank structure and provides equal opportunity for all members of the companies. It is also greatly simplified and is based solely on individual effort and results.

Basic Qualification: To be eligible for the program, participating members must be “qualified” each month throughout the quarter and achieve one, or both, of the following minimum criterion:

1. Travel - A Business Volume of $400 generated from the quarterly travel commissions.

or2. Sponsorship - 3 ITAs sponsored during the entire quarter.Participation is weighted so that additional production accrues a larger share of the pool.

Travel - Achieving the $400 BV accrues 10 points in the pool. Each subsequent $200 BV, over and above the initial $400, accrues an additional 3 points in the participation computation.

Sponsorship – Sponsoring 3 new ITAs produces 10 points in the pool. Each additional ITA, over and above the 3, produces 3 more points in the participation computation.

Page 34: Understanding the Compensation Plan Modified 3/22/2007

In a very simplified example, if the pool participation points totaled 300, and an individual member generated 15 points,

they would receive 5% of the pool total. Members may be entitled to combine both sponsorship and travel

points; however, they must meet the minimum requirements in each category. Therefore, the requirement would be to

generate a minimum of $400 in travel BV and also sponsor a minimum for 3 new ITAs in order to accrue points, which may be

totaled for participation. One cannot sponsor 2 agents and combine that with $300 travel BV, or any other combination,

which does not meet the basic requirements. As in previous plans, no individual member will be entitled to more

than 25% of any given pool regardless of point totals. The Revenue Sharing Program is in addition to all other

commissions, bonuses and special incentives.

Quarterly Revenue Sharing