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A REWARDING BUSINESS OPPORTUNITY EUROPEAN Compensation Plan Update January 1, 2006.

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Presentation on theme: "A REWARDING BUSINESS OPPORTUNITY EUROPEAN Compensation Plan Update January 1, 2006."— Presentation transcript:

1 A REWARDING BUSINESS OPPORTUNITY EUROPEAN Compensation Plan Update January 1, 2006

2 Our Goal Our mission is to be a force for good throughout the world by empowering people to improve lives with rewarding business opportunities, innovative products, and an enriching and uplifting culture. Our vision is to become the worlds leading direct selling company by generating more income for distributors than any other company. EUROPEAN Compensation Plan

3 Our Compensation Plan Our compensation plan is recognised as one of the most generous in the industry, rewarding distributors for hard work, long-term commitment, and leadership. Our compensation plan is seamless. Distributors can build sales organisations globally, assured of the same high-quality products throughout the globe, and receive one pay cheque in their local currency. EUROPEAN Compensation Plan

4 5 Basics of Success How does it work? There are 5 basic principles of success with Nu Skin Enterprises (NSE): 1.Retail products 2.Sponsor people who use the products/retail 3.Build an organisation of people who use the products/retail 4.Become a leader (train and motivate others) 5.Help others become leaders EUROPEAN Compensation Plan

5 PROFIT Purchase products at Distributor Purchase Price Sell at Suggested Retail Price: + 43% Retail Products EUROPEAN Compensation Plan

6 Sponsor Each product you purchase contains a point value, Personal Sales Volume (PSV). Your PSV + PSV of downline distributors = GSV (Group Sales Volume) Compensation is based on points and accrued on a monthly basis. (In the examples 1 PSV = 1 Euro. Actual monthly compensation plan payout converts points to commissions by using a set rate established by NSE [Exchange Rate Multiplier -ERM]. The current ERMs as of January 2006 for the European region are: Euro countries x 0.83; DK x 6.15; HU x 200; IS x 69.50; NO x 6.75; SE x 7.4; UK x EUROPEAN Compensation Plan

7 Activity Bonus - Level 1 Level 1 = 6% of all PSV on your first level = 100 PSV + 1 personal ADP RETAIL CUSTOMER DISTRIBUTOR PREFERRED CUSTOMER When you have 100 PSV and a personal Automatic Delivery Programme (ADP)* order, you earn: (*ADP order must qualify with 50 PSV before discount ) EUROPEAN Compensation Plan

8 Distributor Example For example: 43 (Retail Profit) + 18 (Level 1) = 61 DISTRIBUTOR 100 PSV DISTRIBUTOR 100 PSV DISTRIBUTOR 100 PSV YOU 6% on all PSV on Level 1 6% x 300 = PSV+ ADP 400 GSV RETAIL CUSTOMER EUROPEAN Compensation Plan

9 Become a Leader Executive Qualification Become an Executive and maximise your compensation potential L etter O f I ntent (LOI) Month = 100 PSV and 1,000 GSV Qualifying Executive Month 1 = 100 PSV and 1,500 GSV Qualifying Executive Month 2 = 100 PSV and 2,000 GSV EUROPEAN Compensation Plan

10 Bonus Doubler During the LOI and Qualifying Executive months you can earn more! Level 1 = 12% of PSV For example: 43 (Retail Profit) (Level 1) = 163 This incentive is automatically paid to all LOI & Qualifying Executives who meet Level 1 & qualification requirements. EUROPEAN Compensation Plan

11 Qualifying Executive Bonus Pool Distributors in Qualifying Executive Months 1 or 2 will receive shares based on the following criteria: 5 new first level actives w/ ADP*=1 share 1 Distributor in LOI month** = 1 share * A new active must be a European ID# with 100 PSV and a qualified ADP in the sign up month or the following month. The ADP must be a European order with a minimum of 50 PSV before the available discounts are applied (or 2 NTC VitaMeal donations). The new active with ADP will count as a share in the month the account has 100 PSV and the first order from the ADP contract is successfully placed in the order system. ** A Distributor in LOI month must meet the GSV requirement independent of the volume from any other circle group LOIs. Volume will count for the uplines according to the Who Counts Whom chart, but shares for the pool will only be allocated based on unencumbered volume. Depending on organisation structure, the LOI may count for both a Qualifying Executive and Executive. EUROPEAN Compensation Plan

12 Qualifying Executive Bonus Pool Conditions: –The company will reserve 0.25% of the European regions monthly commissionable sales for this bonus pool. –The revenue will be divided by number of shares and each Qualifying Executive will be compensated based on their number of shares. –Qualifying Executives cannot participate in the pool during a grace month. –Qualifying Executives must have a minimum of 2 shares to participate in the pool. EUROPEAN Compensation Plan

13 Building an Organisation Increase volume and your cheque increases! Bonus Pool! Retail Profit: 400 points of your PSV x 43% markup = 172 Level 1: 3,000 points x 12% = 360 Level 2 1,500 PSV Level 1 3,000 PSV 500 PSV + ADP 5000 GSV EUROPEAN Compensation Plan

14 Executive Bonus After successfully completing Qualification, you receive from 9 to 15% on your GSV *Executive Maintenance requirements = 100PSV & 2,000 GSV Retail Profit= 43% markup Level 1 = 6% of all PSV on L1 Executive Bonus = 9 to 15% of all Distributor PSV EUROPEAN Compensation Plan

15 Executive Bonus For example: Retail Profit = 172 (43% markup) Level 1 = 180 (6% of all PSV on L1) Executive Bonus = 600 (9 to 15% of all Distributor PSV) 952 commission cheque! 500 PSV + ADP 5,000 GSV EUROPEAN Compensation Plan

16 Executive Bonus Your GSV % paid on your GSV Example: 2,000 9% 180 3,000 10% 300 4,000 11% 440 5,000 12% ,000 13% 1,300 25,000 14% 3,500 50,000 15% 7,500 EUROPEAN Compensation Plan

17 Help Others Become Leaders By helping others in your organisation complete the Qualification process, they become Breakaway Executives. Level 2 Level 1 Breakaway team DISTRIBUTOR YOURETAIL CUSTOMER DISTRIBUTOR EUROPEAN Compensation Plan

18 Help Others Become Leaders Breakaway Executives are no longer part of your GSV. You are now paid Breakaway Bonus on the GSV of their organisation. –When your GSV is 2,000 – 2,999, you are paid 2.5% –When your GSV is 3,000 or more, you are paid 5% EUROPEAN Compensation Plan

19 Breakaway Bonus Number of first level breakaways Gold LapisRubyEmeraldDiamondBlue Diamond Levels paid EUROPEAN Compensation Plan

20 Executive Bonus Pool Executives and above will receive shares based on the following criteria: 5 new first level actives w/ ADP* = 1 share Distributor in LOI Month** = 1 share Distributor in Qualifying Executive Month = 1 share (LOIs and Qualifying Executives do not count as a share when they are taking a grace month) * A new active must be a European ID# with 100 PSV and a qualified ADP in the sign up month or the following month. The ADP must be a European order with a minimum of 50 PSV before the available discounts are applied (or 2 NTC VitaMeal donations). The new active with ADP will count as a share in the month the account has 100 PSV and the first order from the ADP contract is successfully placed in the order system. ** A Distributor in LOI month must meet the GSV requirement independent of the volume from any other circle group LOIs. Volume will count for the uplines according to the Who Counts Whom chart, but shares for the pool will only be allocated based on unencumbered volume. Depending on organisation structure, the LOI may count for both a Qualifying Executive and Executive. EUROPEAN Compensation Plan

21 Executive Bonus Pool Conditions: –The company will pay 1.5 % of the European regions monthly commissionable sales for this bonus pool. –The net revenues will be divided by number of shares and each Executive will be compensated based on their number of shares. –Executives must have a minimum of 4 shares to participate in the pool. EUROPEAN Compensation Plan

22 Executive with Breakaway Example Level 1: 3,000 points x 6% = 180 1,202 plus Executive Bonus Pool! Retail Profit: 400 points x 43% markup = 172 Executive Bonus: 12% x 5,000 = 600 Breakaway Bonus: 5% x 5,000 = 250 EUROPEAN Compensation Plan

23 Leadership Advancement Bonus (LAB) Earn up to 31,500! The bonus is paid after achieving and maintaining the new Pin Level for a period of two consecutive months without taking a grace month. An additional retention bonus is paid if a new Pin Level is maintained for a period of six consecutive months from being awarded the new level without taking a grace month. EUROPEAN Compensation Plan

24 Leadership Advancement Bonus (LAB) * Values are in Euros. Executive= Gold= Lapis=1,000 +1,000 Ruby=2,000 +2,000 Emerald =3,000 +3,000 Diamond=4,000 +4,000 Blue Diamond= 5,000 +5,000 LAB*LAB Retention* EUROPEAN Compensation Plan

25 Review DUPLICATION is the key! Set your Goals Retail Sponsor Help others Retail & Sponsor EUROPEAN Compensation Plan

26 Review We take pride in the viable, flexible opportunity that we offer. Ultimately, through our seamless compensation plan, entrepreneurs are empowered to improve their financial freedom and security. EUROPEAN Compensation Plan

27 A REWARDING BUSINESS OPPORTUNITY EUROPEAN Compensation Plan Update January 1, 2006


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