Presentation on theme: "Understanding the Compensation Plan"— Presentation transcript:
1 Understanding the Compensation Plan The Road to GoldModified 3/22/2007
2 Understanding the Compensation Plan Knowing the TermsIR – Independent Representative (Distributor) for Allegre (Fills out and signs the Independent Representative Agreement Form and pays $29.00)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.
3 Understanding the Compensation Plan Knowing the TermsBV – The net amount of Business Volume on which qualifications, commissions, overrides and bonuses are calculated. All products are assigned a wholesale Business Volume.PBV: Personal Business Volume is the Business Volume (BV) produced by a particular Independent Representative. (Also known as Personal Volume).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.
4 Understanding the Compensation Plan Knowing the TermsBQ: 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).
5 Understanding the Compensation Plan Knowing the TermsKnowing The TermsBack-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 BVo Executive Directors through Presidential Directors - $79 BV
6 Understanding the Compensation Plan Knowing the TermsGeneration – 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
7 Understanding the Compensation Plan Knowing the TermsLB: Leadership Bonus is a bonus payable to qualified Account Executives, Managers, and Directors.Knowing the Terms
8 Business CategoriesIndependent Travel Agent ProgramPreferred Customer ProgramIndependent Representative Program
9 Independent Travel Agent Tutorial Program Become an ITA for $149.00Enroll a Co-Applicant for $100.00
10 America's Travel Companies Sources of IncomeUp to 70% Commission On Leisure Travel SalesEarn a 30% Referral Fee - Refer someone to America’s Travel Companies and we will pay you 30% of their enrollment fee.SLIDE #15Sources of IncomeCommissions on Travel SalesThere are several ways to earn income in America today. One is linear income.Linear income is the trading of time for dollars. In other words, you go to work and you earn so much money for that hour of work.Linear income is limited. Why? Because there is only so many hours in a day. I don’t care if you earn $8.00 per hour or $800 dollars per hour, there is only so much income that you can earn in that time period.The second type of income is Residual Income. That is the ability to earn income from not only your efforts, but the efforts of others as well.J. Paul Getty said: “I would much rather earn $1.00 off the efforts of 100 people that $ off of my own efforts.” How many of you feel the same way? You bet, because when we leverage our income, the potential for developing wealth becomes staggering.It is the penny doubled a day scenario. If you earned a penny a day in linear income you would have 30 cents at the end of 30 days, but if you doubled that penny every day for 30 days, you would have over 5 million dollars.Our program offers both forms of income.Time does not allow me to do a complete compensation training during this presentation. We have a complete training designed to show you how you can maximize our pay plan, but I do want to give you a quick overview of how you can earn some serious money with our business.Let me give you some examples of ways to earn linear income in our business.1. You sell a travel package and you earn a commission. We pay an uncapped 50% commission on all leisure travel sales and a 20% commission on domestic air bookings. Let’s say you sell a cruise package valued at $2000 which has a 15% commission attached to it. Our company will receive a commission check from the travel vendor for $ You receive 50% of that commission or $Not a bad part-time income, seeing as it probably takes about 30 minutes to complete that type of booking. How many of you in the room make $ for 30 minutes worth of work. Not many, I am sure.2. Another example: You sponsor a new Independent Travel Agent into our Travel Program and we are going to pay you a $ Training Income.3. One more example: You sell a product from our T2000 Gold Product line and you earn a retail profit. We pay a 20% retail profit on every product sold. You sell one bottle of ThermoTrim for $18.99 and we pay you a 20% retail profit or $ Again, not bad for a few minutes work of work.But, let me show you the power of Residual Income through our program. By building an organization of individuals, through sponsoring them into our program, you begin to earn residual income from their efforts. You still receive the retail profits from your efforts, but now you begin to earn a portion of income from the efforts of others.Let me briefly explain the different avenues of Residual Income.GO TO SLIDE #16________________________________________________________
11 Shop From Your Own Store! Preferred Customer ProgramBecome a Preferred Customer at 29 Business Volume and qualify for:* 30-40% discount on all productsNo additional expense- simply switch stores and purchase from AllegreShop From Your Own Store!
12 Independent Representative Sign the Independent Distributor Agreement and qualify for:* 30-40% discount on all products* Build long term residual income
13 Compensation PlanSeven 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.
14 Compensation PlanYOUDistributor2 %1 %North American Family3 %5 %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.
15 Submit the Independent Representative Agreement. QualificationsSubmit the Independent Representative Agreement.29 PBV Requirement
16 50% - 70% Travel Commissions (Travel Agents) Fast Start Bonus Benefits30% - 40% Retail Profits50% - 70% Travel Commissions (Travel Agents)Fast Start Bonus30% Commissions on ITTP and Co-Applicant CommissionsValue and Career Pack bonuses (BQ)
17 Or$150 PBVQualificationsSponsor two active Allegre Preferred Customers or ITAs over any time periodorGenerate $ in Personal Business Volume (PBV) in one month.29 PBV Requirement
18 $150 PBV Benefits 30% - 40% Retail Profits 50% - 70% Travel Commissions (Travel Agents)Fast Start Bonus30% ITTP and Co-Applicant CommissionsValue Pack and Career Pack bonuses (BQ)Leadership Bonuses on two generations (BQ)Travel Bonuses on two generations (BQ)Revenue Sharing (BQ)
19 Generate $500 in Personal Business Volume in one month Or$500 PBVQualificationsSponsor five active Allegre Preferred Customers or ITAs over any time periodOrGenerate $500 in Personal Business Volume in one month29 PBV Requirement
20 50% - 70% Travel Commissions (Travel Agents) Fast Start Bonus Benefits30% to 40% Retail Profits50% - 70% Travel Commissions (Travel Agents)Fast Start BonusITTP and Co-Applicant CommissionsValue 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)
21 Fast Start BonusWhen 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.
22 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
23 Rank Advancement Bonus Presidential Director Rank Advancement ProgramAs 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.)RankManagerDirectorExecutiveNationalPresidential DirectorBonus$50$100$200$1,000$2,000
24 Knowing the Terms Leadership Advancement Bonus Leadership Advancement ProgramIndependent 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)RankManagerDirectorExecutiveNationalPresidential Director*Time Frame2 months4 months6 months24 months36 monthsBonus$100$200$400$2,000$4,000Knowing the Terms
25 Or$50,000 GTBQualificationsPersonally sponsor two Active Managers or aboveAndHave eight personally enrolled active Preferred Customers and/or ITAsOrGenerate $6,000 in Travel Personal Business Volumeover a 12 month rolling period29 PBV Requirement
26 50% - 70% Travel Commissions (Travel Agents) Fast Start Bonus Benefits30% to 40% Retail Profits50% - 70% Travel Commissions (Travel Agents)Fast Start BonusITTP and Co-Applicant CommissionsValue 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)
27 Or$75,000 GTBQualificationsPersonally sponsor two Active Directors or aboveAndHave 10 personally enrolled active Preferred Customersand/or Active ITAsOrGenerate $10,000 in in Travel Personal Business Volumeover a 12 month rolling period79 PBV Requirement
28 50% - 70% Travel Commissions (Travel Agents) Fast Start Bonus Benefits30% to 40% Retail Profits50% - 70% Travel Commissions (Travel Agents)Fast Start BonusITTP and Co-Applicant CommissionsValue 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)
29 $100,000 GTB Qualifications Personally sponsor four Directors or above andHave 12 personally enrolled active preferred customers and/or active ITAsHave $25,000 in Organizational Business Volume (OV) in one business monthOrGenerate $20,000 in Travel Personal Business Volumeover a 12 month rolling period79 PBV Requirement
30 50% - 70% Travel Commissions (Travel Agents) Fast Start Bonus Benefits30% to 40% Retail Profits50% - 70% Travel Commissions (Travel Agents)Fast Start BonusITTP and Co-Applicant CommissionsValue 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)
31 Personally Sponsor two Active National Directors And $200,000 GTBQualificationsPersonally Sponsor two Active National DirectorsAndHave fifteen (15) personally enrolled active preferred customersand/or active ITAsHave $40,000 in Organizational Business Volume (OV) in the business month.OrGenerate $30,000 in Travel Personal Business Volumeover a 12 month rolling period79 PBV Requirement
32 50% - 70% Travel Commissions (Travel Agents) Fast Start Bonus Benefits30% to 40% Retail Profits50% - 70% Travel Commissions (Travel Agents)Fast Start BonusITTP and Co-Applicant CommissionsValue 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)
33 Quarterly Revenue Sharing The 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: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.
34 they would receive 5% of the pool total. Quarterly Revenue SharingIn 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.