1 TERMS AND DEFINITIONS
1.1 GENERAL TERMS
(The) Company: refers to J. Elizabeth – the system owner
NaXum: refers to the system provider
Back-Office / (The) System: refers to the whole web application being provided.
Commissions Engine: refers to a section in the Back-Office, which focuses on providing tools and
functionalities that will encompass the Compensation Plan as described in this document.
1.2 SYSTEM USERS
1.2.1 Member Types
| Member Types |
Plan |
Upfront Fee |
Monthly Fee |
|
| Independent Stylist |
Intro Plan |
$0 |
$10 |
Available in enrollment |
| |
Premium Plan |
$50 |
$50 |
Available in back-office’s upgrade page |
| Customers |
Retail Customer |
$0 |
$0 |
No Auto-ship Product/s |
| |
Preferred Customer |
$0 |
$0 |
No Auto-ship Product/s |
Independent Stylist: These members are eligible to earn from the Compensation Plan. To qualify, they must have an active
account in the system and regularly pay for their monthly membership plan. Note that the fee is waived for their first 30 days in
the system.
If user gets declined in the monthly recurring bill, the account’s status becomes “Suspended”. The member has 5 days to pay
for his/her plan inside the back-office before the system downgrades the account to Customer. Note that accounts that are in
Suspended state are not qualified to earn commissions.
Retail Customers: These customers are NOT eligible to earn from the Compensation Plan. They purchase products in the
system but have no active monthly product order. They pay retail prices in all purchases.
Preferred Customers: These customers are NOT eligible to earn from the Compensation Plan. They purchase products in the
system and have an active monthly product order. A Retail Customer can become a Preferred Customer by activating his/her
Auto-ship Profile in the system.
1.2.2 System Administrator (Admin)
Admins, the System owner, who have access to a variety of tools and functionalities of the Commissions Engine. These users do
not, however, earn from the Compensation Plan.
2 THE COMPENSATION PLAN
2.1 UNI-LEVEL TREE
This tree structure shows who introduced the Company to its members. Members’ position in the tree can no longer be moved, unless done so by a System Administrator
In general, a Sponsor is anyone who precedes another member in any tree structure. The members below that Sponsor are called the Downlines. A Sponsor may be one of the Downlines of another Sponsor.
To further understand terms that will be used when discussing tree structures, please see below tree structure and interpretation.
In the above presentation, in Leela’s perspective:
- Leela is the Direct Sponsor of Philip, Philip may also be referred to as a Direct Downline
- Anyone below Philip is Leela’s Indirect Downline
- Leela’s Direct Sponsor or Direct Upline is John
- Anyone, above John is Leela’s Indirect Upline
2.2 RANKS
Ranks refer to the milestones achieved by a Stylist in the Company. The ranks for each Stylist will be recorded daily by the system.
Here are the requirements for each rank:
| |
Rank |
LSQ |
PSV |
QCV |
| R1 |
Soulprenuer Stylist |
$0 |
$0 |
0 |
| R2 |
Executive Soul Stylist |
$300 |
$0 |
0 |
| R3 |
Ruby Soul Stylist |
$1,200 |
$100 |
0 |
| R4 |
Emerald Soul Stylist |
$3,000 |
$250 |
0 |
| R5 |
Sapphire Soul Stylist |
$5,000 |
$250 |
0 |
| R6 |
Black Diamond Soul Stylist |
$10,000 |
$500 |
10,000 |
| R7 |
Double Black Diamond Soul Stylist |
$20,000 |
$1,000 |
50,000 |
| R8 |
Premier Soul Stylist |
$30,000 |
$1,000 |
100,000 |
| R9 |
Elite Soul Stylist |
$40,000 |
$1,000 |
250,000 |
| R10 |
Presidential Soul Stylist |
$50,000 |
$1,000 |
500,000 |
2.3 COMMISSION TYPES
2.3.1 WEEKLY PERIODS
All weekly periods end Thursday night at 11:59 Pacific Time, commissions are paid the next Friday (8 days later).
COMMISSION TYPE 1: DIRECT SALES COMMISSIONS
This commission type pays a one-time commission to the enroller from orders made by his/her enrolled Stylists and Customers
within that weekly period. The Stylist will be paid based on his/her highest rank achieved on that week.
Refer to the table for the % that will be earned on a given rank:
| |
Rank |
% CV Earned |
| R1 |
Soulprenuer Stylist |
20% |
| R2 |
Executive Soul Stylist |
22% |
| R3 |
Ruby Soul Stylist |
23% |
| R4 |
Emerald Soul Stylist |
25% |
| R5 - R10 |
Sapphire Soul Stylist - Presidential Soul Stylist |
25% |
Example:
Mary, sponsored by John, ordered 100 CV worth of products on Aug. 7 (Tuesday). John’s ranks for the week are as follows:
| Stylist |
Aug 3 |
Aug 4 |
Aug 5 |
Aug 6 |
Aug 7 |
Aug 8 |
Aug 9 |
| John |
R1 |
R3 |
R3 |
R4 |
R2 |
R3 |
R1 |
For the weekly period (8/3/18 to 8/9/18), John’s highest rank was R4, so John will earn 23% commission from Mary’s order. John’s commission from Mary’s order is 100 CV x 23% = $23.00
COMMISSION TYPE 2: UNI-LEVEL TEAM COMMISSIONS
This commission type allows Stylists to earn from the product purchases of the people that are under their uni-level tree. The % that they will earn is based on their highest rank achieved on that week and the purchaser’s level in the Unilevel Tree. This commission type only pays out 80% of an order’s total CV.
Refer to the table below for the % they will earn for each level based on their ranks:
| Rank |
L1 |
L2 |
L3 |
L4 |
L5 |
L6 |
| R1 |
5% |
|
|
|
|
|
| R2 |
5% |
4% |
|
|
|
|
| R3 |
5% |
4% |
3% |
|
|
|
| R4 |
5% |
4% |
3% |
2% |
|
|
| R5 |
5% |
4% |
3% |
2% |
1% |
|
| R6 |
6% |
5% |
4% |
3% |
2% |
1% |
| R7 |
6% |
5% |
4% |
3% |
2% |
1% |
| R8 |
6% |
5% |
4% |
3% |
2% |
1% |
| R9 |
6% |
5% |
4% |
3% |
2% |
1% |
| R10 |
6% |
5% |
4% |
3% |
2% |
1% |
Note that we will implement dynamic compression on this commission type which means that if the Sponsor is a Customer or Inactive at the time the period was run, the system will not count that Sponsor as a Level. (refer to Scenario B as example)
Examples:
Scenario A:
| |
Member Type |
Highest Rank Achieved From Aug 3 to Aug 9 |
PV |
| Monica |
Stylist |
R7 |
0 |
| Cory |
Stylist |
R4 |
200 |
| Anne |
Stylist |
R3 |
150 |
| May |
Stylist |
R2 |
100 |
Given the values above and uni-level tree structure (Figure 2), here are their earnings for this commission type:
Monica:
Given Monica’s rank which is R7, these are the commissions she’s going to earn from Cory, Anne, and May:
- Cory is on Monica’s Level 1, so Monica will earn 6% from Cory’s order:
- 6% x 80% x 200 CV = $9.60
- Anne is on Monica’s Level 2, so Monica will earn 5% from Anne’s order:
- 5% x 80% x 150 CV = $6.00
- May is on Monica’s Level 3, so John will earn 4% from May’s order:
- 4% x 80% x 100 CV = $3.20
Cory:
Given Cory’s rank which is R4, these are the commissions she’s going to earn from Anne and May:
- Anne is on Cory’s Level 1, so Cory will earn 5% from Anne’s order:
- 5% x 80% x 150 CV = $6.00
- May is on Cory’s Level 2, so Cory will earn 4% from May’s order:
- 4% x 80% x 150 CV = $3.20
Anne:
Given Anne’s rank which is R2, this is the commission she’s going to earn from May:
- May is on Anne’s Level 1, so Anne will earn 5% from May’s order:
- 5% x 80% x 100 CV = $4.00
May:
She has no downline, so she will not earn.
| |
Member Type |
Highest Rank Achieved From Aug 3 to Aug 9 |
PV |
| Monica |
Stylist |
R7 |
0 |
| Cory |
Stylist |
R4 |
200 |
| Anne |
Stylist |
R3 |
150 |
| May |
Stylist |
R2 |
100 |
Examples:
Scenario B:
Given the values above and uni-level tree structure (Figure 2), here are their earnings for this commission type:
Monica:
Given Monica’s rank which is R7, these are the commissions she’s going to earn from Cory, Anne, and May:
- Cory is on Monica’s Level 1, so Monica will earn 6% from Cory’s order:
- 6% x 80% x 200 CV = $9.60
- Anne is on Monica’s Level 2 but will be treated as if she’s on Monica’s Level 1 (since the original Level 1 Sponsor is a Customer). Therefore, Monica will earn 6% from Anne’s order:
- 6% x 80% x 150 CV = $7.20
- May is on Monica’s Level 3 but will be treated as if she’s on Monica’s Level 2 (since the original Level 2 Sponsor is a Customer). Therefore, Monica will earn 5% from Anne’s order:
- 5% x 80% x 100 CV = $4.00
Cory:
She is a Customer at the time the commissions were run so she’s not qualified to earn.
Anne:
Given Anne’s rank which is R2, this is the commission she’s going to earn from May:
- May is on Anne’s Level 1, so Anne will earn 5% from May’s order:
- 6% x 80% x 200 CV = $9.60
May:
She has no downline, so she will not earn.
2.3.2 MONTHLY PERIODS
All monthly periods end last day of the month at 11:59 Pacific Time, commissions are paid the following 15th of the next
month.
COMMISSION TYPE 3: STYLIST POOL
All active Stylists qualify to earn shares monthly from the Stylist Pool. The Stylist Pool is the 2% of the total CV sold each month.
The amount of share a Stylist will earn from the pool is based on the highest rank the Stylist has achieved on that month.
| Rank |
Shares |
| R6 |
1 |
| R7 |
2 |
| R8 |
3 |
| R9 |
5 |
| R10 |
8 |
Example:
The Total CV sold in the month of July 2018 is 120,000. Therefore, the Stylist Pool for the month of July is 2,400
| |
Member Type |
Highest Rank Achieved From July 1 to July 31 |
# of Share from the Pool |
| Monica |
Stylist |
R7 |
2 |
| Cory |
Customer |
R9 |
0 |
| Anne |
Stylist |
R8 |
3 |
| May |
Stylist |
R2 |
0 |
| Hannah |
Stylist |
R8 |
3 |
Stylist Pool: 120,000 x 2% = 2,400
Total Shares: 2 (John) + 3 (Anne) + 3 (Hannah) = 8 shares
To calculate how much each share is: 2,400 ÷ 8 shares = $300 per share
Given the values above, here are their earnings for this commission type:
Monica:
Since her rank is R7, she will get 2 shares: $300 x 2 = $600
Cory:
Her highest rank is R9 but since she’s a Customer at the time the commissions were run, she will have no shares: $0
Anne:
Since her rank is R8, she will get 3 shares: $300 x 3 = $900
May:
Since her rank is R2, she will have no shares: $0
Hannah:
Since her rank is R8, she will get 3 shares: $300 x 3 = $900
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