Day 6 – Compensation Plan
Day 6 – COMPENSATION PLAN
DEFINITIONS
- PV Personal Volume – The total monthly volume of your personal orders
- OGV Organization Group Volume – The monthly volume of your entire organization
- PGV Personal Group Volume – The monthly volume in an organization, excluding any Silver or higher rank volume and any qualifying leg(s) volume
- Leg x OGV – The number of legs and the amount of monthly OGV required for each leg
- Levels – the vertical placement in your organisation. The person immediately below you is your level, under them is our level 2 etc.
- ER – Essential Rewards
- VO – Virtual Office
- QO – Quick Order
- PSK – Premium Starter Kit
- PV – Product Value (The value of each product, indicated in the VO)
RANKS
- Distributor 50PV
- Star 100PV – 500 OGV
- Senior Star 100PV – 2k OGV
- Executive 100PV – 4k OGV – 2 legs x 1k OGV
- Silver 100PV – 10k OGV – 2 legas x 4k OGV
- Gold 100PV – 35k OGV – 3 legs x 6k OGV
- Platinum 100PV – 100k OGV – 4 legs x 8k OGV
- Diamond 100PV – 250k OGV – 5 legs x 15k OGV
- Crown Diamond 100PV – 750k – 6 legs x 20k OGV
- Royal Crown Diamond 100PV – 1.5M OGV – 6 legs x 35k OGV
- Silver to Royal Crown Diamond need 1k PGV to also qualify for rank.
UNILEVEL COMMISSIONS
This commission is sponsor-based commission and you must have 100PV to qualify. Unilevel commissions are calculated based on the level where your member resides in your downline.
Level 1 – 8%
Level 2 – 5%
Level 3- 4%
Level 4 – 4%
Level 5 -4%
How is this all calculated?
If a member is on your level 2 you will receive 5% of their total PV.
If a member is on your level 2, but it is during their Fast Start period (first 3 months of their membership *see above), their PV will be reduced by 70% and you will be paid 5% of the reduced PV. (you do not see the reduced PV in the Virtual Office).
RISING STAR TEAM BONUS
Only Stars, Senior Stars, and Executives are eligible to earn shares based on 1% of all Young Living’s monthly commissionable sales. The amount paid to the distributor is determined by the number of shares he or she earns.
Step 1
To earn 1 Rising Star Bonus share YOU must have spend personally at least 100PV on ER and you must have three level 1 members, each with 100PV on ER as well as each have 300 OGV.
Step 2
To earn 2 more Rising Star Bonus shares, you must meet the step 1 qualification plus 2 more level 1 members with 100PV on ER and 500 OGV each.
Step 3
By qualifying for step 1 and 2 you have now earned 3 shares total. To earn 3 more Rising Star Bonus shares (for a total of 6 shares), you must meet step 1 and 2 qualifications plus 2 additional level 1 members each with 100PV on ER and 1000 OGV.
FAST START BONUS (only from wholesale members)
This bonus is an enroller-based bonus that pays YOU, the enroller, 25% of the enrollments’ (new members’) PV for the first 3 calendar months of their membership. (maximum amount of $200US in bonus can be earned on any first-level enrollment for a given month)
YOU will earn 10% on YOUR second-level enrollments no matter when your first-level enrollment signs them up. FOR EXAMPLE, if YOU recruited Jane 5 years ago and Jane enrolls Julie today, YOU will earn 10% on Julie’s PV for the first 3 calendar months of her membership. (maximum of $80US on bonus can be earned on any second-level enrollment for a given month)
START LIVING BONUS (only from wholesale members)
This bonus is a one-time, $25USD bonus paid to the enroller of a new member as long as the new member purchases a PSK in the same calendar month that their account was setup. (Basic kits do not qualify)
Therefore, as a rule of thumb. If you enroll a new wholesale member with a Premium Starter Kit YOU will receive a $50US (~$65CND) commission.
FAST START BONUS – 25% of 100 PV (for the PSK) = $25USD
START LIVING BONUS – $25USD
Total – $50USD
RETAIL COMMISSIONS (off a retail customer account)
When you personally enroll a retail customer on your level 1 or you sponsor a retail customer on your level 1, you earn about 24% which is the difference between the retail and wholesale price for their orders.
For customers deeper than your level 1, you also earn commissions.
Level 2 – 8%
Level 3 – 5%
Level 4 – 4%
Level 5 – 4%
But when you strategically place or move someone (we will talk about this tomorrow!!!) under another member, you forgo your 24% commission even if you personally enrolled the customer and will receive the commissions based on what level the customer is now on.
QUALIFICATIONS
50PV eligible to earn customer commissions and enroller-based bonuses (Fast Start bonus and Start Living bonus)
100PV eligible to earn what is mentioned above plus Unilevel commissions, Rising Team bonus, Generation Leadership bonus and Generation Leadership commision.
100PV + ER
The only commission that requires a member to be on ER is the Rising Star Team bonus.
COMPRESSION
Compression occurs when a member in your downline fails to place a 100PV order for the month. Their members, up to and including the first qualifying member, virtually roll up to be at the same level as the member who did not place the 100PV order.
Buy Jack Dempsey’s book, Driven for Success: Road Map to the Comp Plan
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Income Disclosure: youngliving.com/IDS