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U.S. Compensation Plan Overview Effective January 1, 2014 Updated July 1, 2014

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Page 1: U.S. Compensation Plan Overview - drtchiro.com · Residential – Digital Phone Service Phone Adapter – Transfer Phone Number H 3 3 Points 100% Life of Customer Phone Adapter –

U.S. Compensation Plan OverviewEffective January 1, 2014Updated July 1, 2014

Page 2: U.S. Compensation Plan Overview - drtchiro.com · Residential – Digital Phone Service Phone Adapter – Transfer Phone Number H 3 3 Points 100% Life of Customer Phone Adapter –

© ACN Opportunity, LLC 2014_CompPlanOverview_RP_W_070114

The ACN Opportunity has been designed to help you build a successful business of your own. ACN Independent Business Owners (IBOs) can earn money in two ways:

Positions & QualificationsSTARTING POSITION: Every IBO starts as a Team Trainer (TT)

EARNED POSITIONS:

1

Compensation is earned at ACN only when customers are acquired.

You acquire 7 Customer Points and 3 Preferred Services and

1 QTT in 2 separate legs at any level

You acquire 15 Customer Points and 4 Preferred Services and

1 ETT in 3 separate legs at any level

1 TC in 4 separate legs at any level

Must have 1 TC or above in 6 separate legs, including at least

2 RVP legs and 1 RD leg

Minimum Monthly Downline Billings $150,000 (Limit $75,000 per leg)

Minimum Monthly Downline Billings: $500,000

(Limit $250,000 per leg)

Access your IBO Back Office for details on ACN’s monthly, promotional bonuses – designed to get

new IBOs off to a fast start.

Qualified Team Trainer (QTT)

You7 Customer Points and 3 Preferred Services**

QTT

QTT

ETT ETT QTT

ETT

You

15 Customer Points and 4 Preferred Services**

200 Customer Points in 3 separate legs

200 Customer

Points

You

1 TC in 2 separate legs at any level and a third leg with

200 Customer Points

TC TC

TC

TC

You

200 Customer

Points

TC

You

TC TC

TC TC TCRVP

RVPRD

You

5 Customer Points and 3 Preferred

Services

• Monthly residual commissions based on their personal and downline customers’ usage of ACN’s services

• Weekly and Monthly Bonuses based on customer acquisition

Effective January 1 , 2014

Executive Team Trainer (ETT) Executive Team Leader (ETL) Team Coordinator (TC) Regional Director (RD) Regional Vice President (RVP)* Senior Vice President (SVP)

200 Customer

Points

200 Customer

Points

TCS AND ABOVE muST mAINTAIN 15 CuSTOmER POINTS AND 4 PREfERRED SERVICES** TO RECEIVE EARNED POSITION COmPENSATION.

PLATINum RVP†

Minimum Monthly Downline Billings: $300,000 (Limit $150,000 per leg)

U.S. CompEnSation plan ovErviEw®

To become a Qualified Team Trainer you must have a minimum of 5 Customer Points and at least 3 Preferred Services. At least one of those Preferred Services must be outside of your household.

*RVPs as of march 31, 2014, have until January 1, 2015, to meet these qualifications. †Platinum RVP is a designation that applies to North American IBOs only.

**At least one of the Preferred Services must be outside of your household.

Success as an ACN Independent Business Owner is not guaranteed, but rather influenced by an individual’s specific effort. Not all IBOs make a profit and no one can be guaranteed success as an ACN IBO. ACN’s Compensation Plan is subject to change without notice at ACN’s discretion and for any reason.

Page 3: U.S. Compensation Plan Overview - drtchiro.com · Residential – Digital Phone Service Phone Adapter – Transfer Phone Number H 3 3 Points 100% Life of Customer Phone Adapter –

© ACN Opportunity, LLC 2014_CompPlanOverview_RP_W_070114

Residential – Digital Phone Service

Phone Adapter – Transfer Phone Number H 3 3 Points 100% Life of Customer

Phone Adapter – New Phone Number H 3 2 Points 100% Life of Customer

Video Phone 3 2 Points 100% Life of Customer

ACN Advantage – Local and Long Distance H 3 3 Points 100% Life of Customer

Business – Digital Phone Service

DigitalTalk® express H 3

1st Line = 3 Points 2nd Line = 5 Points 3rd Line = 7 Points4th Line = 9 Points

100% Life of Customer

Business Advantage Local and Long Distance H 3

1-2 Lines = 3 Points 3-4 Lines = 5 Points 5-6 Lines = 7 Points

7+ Lines = 1 Additional Point Per LineExcludes Data/Fax Line

100%Data/fax line is not commissionable

Life of Customer

ACN View 1 PointPay As You Go = 0 Points

100% Life of Customer

XOOM Energy Residential H 3 1 Point per Service 50%** Life of Customer

XOOM Energy Small Business H 3 2 Points per Service 50%** Life of Customer

XOOM Energy Big Business H 3 2-5 Points per Service up to 50%** Life of Customer

Anovia Merchant Sevices with Over $3,000 Processing/month H 3 3 Points

100% Paid on Anovia

Revenue for the Life of CustomerAnovia Merchant Services - New Merchants/

Merchants Processing Less Than $3,000/monthNew & Up to $1,500/month = 1 Point

$1,500 to $3,000/month = 2 Points

Phone ServiceS

WireleSS

energy – natural gaS or electricity

Merchant ServiceS

The only way to earn income at ACN is through the acquisition of customers; therefore all IBOs must acquire customers in order to meet qualifications and advance through ACN’s earned positions. ACN utilizes a Customer Point system for each of its products and services. Core Services provide long-term residual income.

Flash Wireless (s) and Flash WirelessUnlimited Voice, Text and Data H 3

3 Points per LineMobile Hotspots: Commission Only

100% Life of Customer

Flash Wireless (s) and Flash Wireless Unlimited Voice or Unlimited Voice and Text H 3

2 Points per Line 100% Life of Customer

product / Service Customer pointsmonthly Commissionable revenue* Duration of points

and Commissionspreferred

CustomersCore

CUStomEr point SyStEm & CommiSSionablE rEvEnUE®

*Commissionable revenue is billed revenue less taxes, surcharges and an allowance for bad debt. ACN reserves the right to reduce commissionable revenue by a percentage factor for promotional plans, products, negotiated pricing or certain services. Commissionable Billing for some products is a fixed amount. IBOs receive a percentage of these amounts each month depending on where they fall in the Compensation Plan.

**Energy rates subject to fluctuation. ACN reserves the right to cap commissionable billing at $1/therm and 13.5¢/kilowatt-hour. IBOs will receive commissions on 50% of the customers’ actual energy usage excluding bad debt, taxes and surcharges.

1 If a Your Business Assistant subscription was used for CAB or TCAB qualifications and is cancelled within the first 60 days, the bonus will be retracted.

2

YBA counts as 2 Points and 1 Preferred Customer for the life of your subscription!1

Page 4: U.S. Compensation Plan Overview - drtchiro.com · Residential – Digital Phone Service Phone Adapter – Transfer Phone Number H 3 3 Points 100% Life of Customer Phone Adapter –

© ACN Opportunity, LLC 2014_CompPlanOverview_RP_W_070114

Premium Technical Support (Residential or Business)

Residential:1 PC = 1 Point

Up to 3 and up to 5 PCs = 2 Points

Business:1 PC = 1 Point

Up to 3 and up to 5 PCs = 2 Points

Up to 7 and up to 10 PCs = 3 Points

100% Life of Customer

HughesNet 3 1 Point $35 2 years

AT&T u-verse U-verse Internet Only

1 Point $35† 2 years

AT&T DSL AT&T Basic DSL

1 Point $25† 2 years

Verizon fiOS 1 Point After 60 Days $25† 2 years

Time Warner Cable, Cox (15M+) 1 Point After 60 Days $20† 2 years

Comcast 1 Point After 60 Days $15† 2 years

CenturyLink 1 Point 1.5M - $25†

3M, 5M, 7M - $35†

10M+ - $50†

2 years

frontier DSL 1 Point $25† 2 years

Windstream DSL1 Point 3Mbps - $20†

6Mbps or 12Mbps - $25†

†50% Commissionable

2 years

AT&T u-verse/DSL TV & Internet:2 U200, U200 Latino, U300, U450 3

1 Point $100† 2 years

Verizon fiOS TV & Internet2 3

1 Point After 60 Days $50† 2 years

AT&T u-verse/DSL TV & Internet:2 U-Family or U1002

1 Point $60†

†50% Commissionable

2 years

Satellite TV – DIRECTV or DISH (Residential or Business) 3

DIRECTV – 2 Points (Special Promo)DISH – 1 Point

DIRECTV – $40; DISH – $40

2 years

Satellite TV – DISH FLEX24 Plan & Smart Pack 1 Point $19.99 2 years

AT&T u-verse TV Only: U200, U200 Latino, U300, U450 (HD)2

1 Point $50† 2 years

AT&T u-verse TV Only: U-Family, U1002

0 Points $20†

†50% Commissionable

2 years

televiSion & high SPeed internet

televiSion

high SPeed internet

The only way to earn income at ACN is through the acquisition of customers; therefore all IBOs must acquire customers in order to meet qualifications and advance through ACN’s earned positions. ACN utilizes a customer point system for each of its products and services.

PreMiuM technical SuPPort

3

product / Service Customer pointsmonthly Commissionable revenue* Duration of points

and Commissionspreferred

CustomersCore

CUStomEr point SyStEm & CommiSSionablE rEvEnUE®

Security and autoMation

Vivint Home Security & Automation H 3 3 Points 100% 42 months

Protect America Business Security & Automation 3 2 Points 100% 3 years

ADT Home Security & Automation 3 1 Point $35 3 years

*Commissionable revenue is billed revenue less taxes, surcharges and an allowance for bad debt. ACN reserves the right to reduce commissionable revenue by a percentage factor for promotional plans, products, negotiated pricing or certain services. Commissionable Billing for some products is a fixed amount. IBOs receive a percentage of these amounts each month depending on where they fall in the Compensation Plan.2 For AT&T U-verse and Verizon FiOS bundled plans, the television and Internet Points will appear separately on reporting. For example, 1 Point for the TV portion and 0 Points for the Internet portion, for a total of 1 point (1 Preferred Customer).

Page 5: U.S. Compensation Plan Overview - drtchiro.com · Residential – Digital Phone Service Phone Adapter – Transfer Phone Number H 3 3 Points 100% Life of Customer Phone Adapter –

© ACN Opportunity, LLC 2014_CompPlanOverview_RP_W_070114

Commissions by Service

Levels Telecommunications and Essential Services

Energy for Large Business

QuALIfICATIONS fOR EACH COmmISSION LEVEL

Personal Customer Points

Personal 1-10 % 2 % See box above

12

1/4 %1/4 %

1/2 %1/4 %

10

34

1/4 %1/2 %

1/4 %------

20

56

3 %5 %

------------

40

7 8% ------ 60

Open Line RVP1st Generation RVP2nd Generation RVP

RVP1 1/2%

1%1/2%

Platinum RVP†

3%2%

1/2%

1/2%------------

A Platinum RVP and RVP earn commissions on all customers below 7th level to an unlimited number of levels to the next RVP’s 7th level. For energy large business, this applies for customers below the 4th level.

Open Line SVP1st Generation SVP

2 %1 %

1/2 %------

A SVP earns commissions on all customers below 7th level to an unlimited number of levels to the next SVP’s 7th level. For energy large business, this applies for customers below the 4th level.

Overriding Residual CommissionsSchedule of commissions earned from customer acquisition in your organization and Personal Customer Points required:

4

Over time, the majority of your compensation will come from the residual income of your customers’ monthly billings. Customer acquisition is the fuel for your business, creating long-term lasting income and by teaching other people how to do the same thing, you will build residual income for yourself.

Personal CommissionsAs you acquire your own, personal customers, you qualify to earn between 1% and 10% of their monthly bills. This percentage is based on your total number of Customer Points:

Complete customers must be received by 2:00pm ET on the first Friday of the month in order for IBOs to qualify for commissions. Commissions are released on the first business day following the third Friday of each month. Commissions are paid the third month after the close of the month the customer is billed.

Commissions on large commercial accounts and customers acquired by Affinity programs (such as not-for-profit organizations) may be paid according to a custom commission schedule that will be determined at the time the program/contract is completed.

†Platinum RVP is a designation that applies to North American IBOs only.

Example: (Average $40 Monthly Bill)

40 Customer Points = $40/month personal commission

20 Customers (totaling 40 Customer Points) x $40 bill x 5% = $40/month personal commission

60 Customer Points = $120/month personal commission

30 Customers (totaling 60 Customer Points) x $40 bill x 10% = $120/month personal commission

monthly rESiDUal CommiSSionS®

1-29 Customer Points = 1%

30-39 Customer Points = 3%

40-59 Customer Points = 5%60+ Customer Points = 10%

Page 6: U.S. Compensation Plan Overview - drtchiro.com · Residential – Digital Phone Service Phone Adapter – Transfer Phone Number H 3 3 Points 100% Life of Customer Phone Adapter –

© ACN Opportunity, LLC 2014_CompPlanOverview_RP_W_070114

The second way IBOs can earn compensation is through weekly Customer Acquisition Bonuses (CABs) and monthly Team Customer Acquisition Bonuses (TCABs).

Customer Acquisition Bonuses – CABsCustomer Acquisition Bonuses (CABs) are paid when your newly sponsored Team Trainers become qualified within 30 days of their start date. In order to count for qualifications, all new customers must show a “complete” status on the IBO’s Personal Customer List. A customer will show a “complete” status when all the necessary information has been received and processed by ACN.

CABs will be paid 14 days following the new TT’s start date once they qualify within their first 30 days.

5

Customer Acquisition Bonus Schedule

TC RVP SVPOpen Line = $50

1st generation = $20Open Line = $30

1st generation = $15Open Line = $30

1st generation = $10

TC and Above CABs:Team Coordinators and above can earn CABs on all the new QTTs in their open line – and not just the QTTs they directly sponsor.

TIP: An IBO’s open line consists of all the IBOs in their organization down to the next IBO at their same earned position or higher.

RDs, RVPs and SVPs can earn TC CABs on newly Qualified Team Trainers in their TC open line.

Remember: Compensation is earned at ACN only when customers are acquired. ACN reserves the right to retract the payment of any bonus or commis sion if it is found that a customer used to qualify for a bonus or a certain commission level was not a valid billing customer.

wEEkly anD monthly bonUSES®

Page 7: U.S. Compensation Plan Overview - drtchiro.com · Residential – Digital Phone Service Phone Adapter – Transfer Phone Number H 3 3 Points 100% Life of Customer Phone Adapter –

© ACN Opportunity, LLC 2014_CompPlanOverview_RP_W_070114

1TCABs will be paid 14 days following the new Team Trainer’s start date, once they qualify within their first 30 days. Bonus payments will be calculated and paid weekly and reconciled after the close of the applicable calendar month. In order to receive TCABs, ETTs and ETLs must maintain the minimum number of personal customers to be qualified as a Team Trainer.

6

ExECUtivE tEam trainEr (Ett) tCaBAnyone who is an ETT during a month of this promotion is eligible. An ETT who has at least 2 open line TTs, whose start dates are during a calendar month of this promotion, and each of those TTs are qualified(1) within 30 days of their start date will receive a $100 BONuS!

Amount of TCAB Compensation

Monthly Team Acquisition Bonuses (TCABs) are paid to ETTs and above for helping new TTs in your open line get qualified within their first 30 days and vary from $100 to $50,000 depending on your earned position and the number of new, open line, QTTs in a calendar month.

RVPs will earn the higher of the RVP TCABS or RD TCABs each month. RVP TCABS will continue to be calculated weekly and any adjustment for RD TCABS will occur at least every two weeks. For Example: An RVP with an RVP open line of 100 QTTs ($10,000 TCAB) and RD open line of 75 QTTs ($15,000 TCAB) would get paid on the RD open line of $15,000 as this is the higher TCABs.

TCs and above with QTTs in other countries will earn TCABs prorated by the number of QTTs in each country.

tEam CUStomEr aCqUiSition bonUSES (tCabS)®

tEam COOrdinatOr (tC) tCaB rEgiOnal dirECtOr (rd) tCaB

ExECUtivE tEam lEadEr (Etl) tCaB

rEgiOnal viCE PrESidEnt (rvP) tCaB

Anyone who is a TC, RD, RVP or SVP during a month of this promotion is eligible. A TC who has at least 5 open line TTs, whose start dates are during a calendar month of this promotion, and each of those TTs are qualified(1) within 30 days of their start date will receive a $500 BONuS!

Amount of TCAB Compensation

Anyone who is a Regional Director during a month of this promotion is eligible. A RD who has at least 10 open line TTs whose start dates are during a calendar month of this promotion, and each of those TTs are qualified(1) within 30 days of their start date will receive a $1,000 bonus!

Amount of TCAB Compensation

Anyone who is an ETL during a month of this promotion is eligible. An ETL who has at least 3 open line TTs, whose start dates are during a calendar month of this promotion, and each of those TTs are qualified(1) within 30 days of their vstart date will receive a $200 BONuS!

Amount of TCAB Compensation

Anyone who is a RVP or SVP during a month of this promotion is eligible. A RVP who has at least 25 open line TTs, whose start dates are during a calendar month of this promotion, and each of those TTs are qualified(1) within 30 days of their start date will receive a $2,000 BONuS!

Amount of TCAB Compensation

$25,000 $30,000

$7,000$3,000

$50,000

$12,000 $20,000

$6,000$2,500

$25,000

$10,000 $15,000

$5,000$1,500

$15,000

$8,000 $10,000

$4,000$1,000

$10,000

$6,500 $6,000

$3,000$500

$7,500

$5,000 $4,000

$2,500$100

$5,000

$3,000 $2,500

$1,500

$2,000

$1,500 $1,000

$750

$500

$200

100 QTTs 150 QTTs

40 QTTs15 QTTs

500 QTTs

50 QTTs 100 QTTs

35 QTTs12 QTTs

250 QTTs

40 QTTs 75 QTTs

30 QTTs9 QTTs

150 QTTs

30 QTTs 50 QTTs

25 QTTs6 QTTs

100 QTTs

25 QTTs 40 QTTs

20 QTTs4 QTTs

75 QTTs

20 QTTs 30 QTTs

15 QTTs2 QTTs

50 QTTs

15 QTTs 20 QTTs

10 QTTs

25 QTTs

10 QTTs 10 QTTs

5 QTTs

5 QTTs

3 QTTs

The number of new open line TTs who become qualified within their first 30 days.

The number of new open line TTs who become qualified within their first 30 days.

The number of new open line TTs who become qualified within their first 30 days.

The number of new open line TTs who become qualified within their first 30 days. The number of new open line TTs who become qualified within their first 30 days.