SALES COMPENSATION PLAN BROCHURE

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SALES COMPENSATION PLAN
BROCHURE
Nu Skin® is THE DIFFERENCE. DEMONSTRATED.®
By partnering with you, we continue to distinguish ourselves as the true leaders in
global compensation.
Our vision is perfectly clear
To become the world’s leading direct sales company by generating more income
for our Sales Leaders than any other company.
Important Notes:
• Please see the Glossary on the inside back
cover for an explanation of terms used in this
brochure.
• Commissions and sales bonuses are paid only
to active Distributors. In order to qualify to
receive a monthly bonus from the Company,
you must have a minimum of 100 Personal
Sales Volume (PSV) per month. All bonuses
and commissions also require retail sales to at
least five individuals on a monthly basis.
• You must keep all records of retail sales for
at least four years. Compliance with the
retail sales requirements of the Company is
randomly monitored by the Company. Each
product purchased through an ADR order by
non-Distributors or customers is automatically
counted on a monthly basis towards retail
sales requirements. Bonuses are never paid
for recruiting. The only way to earn bonuses
is through the sale of products.
• 80% of PSV must be sold or consumed prior to
your next order.
• All bonuses are calculated on a monthly basis
and deposited on or around the 25th of the
following month.
• Generating
meaningful
compensation
as a Distributor requires time, effort and
commitment. There are no guarantees of
financial success, only rewards based upon
productivity.
• The only requirement to become a Distributor
is to sign a Distributor Agreement and to pay
a once-only registration fee. This registration
fee can be waived by placing a regular order
of a minimum of 100 PSV or by having a 50
PSV ADR.
1
STEP 1 – GETTING STARTED
BEGIN BUILDING YOUR CONSUMER AND DISTRIBUTOR NET WORK
To become a NSE Distributor, you must complete and sign a Distributor Agreement. If you have
questions, ask the person who introduced you to the business or contact your local
Nu Skin® office for more information.
RETAIL PROFITS
Distributors may purchase products from the Company at a substantial discount and sell them
to their customer at a retail price. The Company has suggested a retail price for each product. All
Distributors are independent contractors and are free to establish their own retail prices.
In addition, as you direct customers to the www.nuskin.com website, you will earn a commission
from every purchase made by such customers from the website. The commission will amount to
up to 30% of the retail profits (the Company will keep a Retail Processing Fee).
VOLUME COMMISSIONS
Personally sponsor Distributors and Preferred Customers to earn 5% commission on your first
level sales. This is known as the Level 1 (L1) Bonus*. NSE has assigned each product a value
in points. The sum of the point value generated by you, your Distributors and your Preferred
Customers is important for your qualification. To qualify for the L1 Bonus, you must have a
minimum of 100 PSV and at least five retail sales per month.
PRODUCTS purchased
at wholesale price
PRODUCTS sold to customer
at suggested retail price
RETAIL
CUSTOMER
YOU
RETAIL
CUSTOMER
Level 1 (L1)
Distributor
Distributor PREFERRED Customer
* CSV is equal to the wholesale price of a product or service, minus any discounts (which may include taxes, Fast-Start Payments,
ADR or Web Discounts). L1 Bonus is not paid on the CSV of roll-up Distributors or Preferred Customers on your level 1.
2
IMPORTANT TERMS TO UNDERSTAND
PSV: Personal Sales Volume is the monthly point value of the products and services you and
your retail customers’ purchase from the company.
GSV: Group Sales Volume represents the total PSV in your Circle Group, including your own
PSV, for a given month.
CSV: Commissionable Sales Value is the value used to calculate monthly commissions.*
*CSV is equal to the wholesale price of a product or service, minus any discounts (which may include taxes,
Fast-Start Payments, ADR or Web Discounts). L1 Bonus is not paid on the CSV of roll-up Distributors or Preferred
Customers on your level 1.
FAST-START PRODUCT PACKAGES – MAXIMISE YOUR EARNINGS
Earn Fast-Start Payments (payment from the sale of Fast-Start Product Packages) when you
duplicate your business. When your Distributors and retail customers choose to purchase
Fast-Start Product Packages** from the Company you earn the Fast-Start Payments (payment
from the sale of Fast-Start Product Packages).
Fast-Start Product Packages are designed to get new Distributors off to a flying start: they contain
a selection of the best-selling NSE products in one convenient package and at an attractive
price; additionally, they offer extra earning potential. When a Fast-Start Product Package is sold
everybody wins.
**The content, price, CSV, PSV and Fast-Start Payments (payment from the sale of Fast-Start Product Packages) may
vary between countries.Please contact your local Nu Skin® office for details.
The purchase and retailing of Fast-Start Product Packages is optional.
EARNINGS POTENTIAL
As a Distributor you can earn:
•
A margin on the sales you make to your customers.
•
A commission of up to 30% profit on retail customer sales.
•L1 Bonus of 5% based on the monthly CSV of all personally sponsored Distributors
and Preferred Customers.
•Fast-Start Payments (Payment from the sale of Fast-Start Product Packages).
See example below:
€250 200 PSV
150 CSV
€50 Price of the Product Package
Fast start payment
3
STEP 2 – LEADERSHIP DEVELOPMENT
F O U N DAT I O N F O R YO U R FU T U R E
Build your sales organisation and become an Executive Leader by completing the three month
Executive qualification requirements:
Month 1 requirements Submit a LOI*
Month 2 requirements
Qualifying Executive (Q1)
Month 3 requirements
Qualifying Executive (Q2)
Generate min. 100 PSV and min.
1,000 GSV
Generate min. 100 PSV and min.
1,500 GSV
Generate min. 100 PSV and min.
2,000 GSV
YOU
PREFERRED
CUSTOMER
PREFERRED
CUSTOMER
LOI
DISTRIBUTOR
DISTRIBUTOR
DISTRIBUTOR
DISTRIBUTOR
RETAIL
CUSTOMER
PREFERRED
CUSTOMER
DISTRIBUTOR
*The first time a Distributor
achieves 1,000 Group Sales Volume
(GSV), they should visit V&G
Navigator. There, they can submit
their intent to become an LOI. No
further paperwork is required. If a
Distributor has had a LOI submitted
in the past and wishes to enter
Executive qualification again, the
Distributor must submit a new LOI
form to the Company.
NB! See the chart on the opposite
page for who counts whom, as
Distributors, LOIs and Qualifying
Executives do not count volume
from a downline who is in their
Qualifying Executive months.
EARNINGS POTENTIAL
During Executive qualification you can earn:
•A margin on the sales you make to your customers.
•A commission of up to 30% profit on retail customer sales.
•L1 Bonus of 5% based on the monthly CSV of all personally sponsored Distributors and Preferred
Customers.
•Fast-Start Payments (Payment from the sale of Fast-Start Product Packages).
4
Who Counts Whom
The following chart explains who in your downline you may count towards your GSV requirement
as you proceed through qualification and for additional bonuses.
D OW NLINE T I T LE
YO UR T I T LE
Distributor
LOI (Month 1)
Q1 (Month 2)
Q2 (Month 3)
Executive
Provisional
Executive
Distributor
*
*
*
*
*
*
LOI (Month 1)
*
*
*
*
*
*
Q1 (Month 2)
*
*
Q2 (Month 3)
*
*
Executive
Provisional
Executive
EARNINGS POTENTIAL
Once you have successfully qualified as an Executive,
you can earn:
• The same as during Executive Qualification
PLUS
•
•
monthly Executive Bonus (EB) on your total circle group
A
CSV*.
The opportunity to participate in the EMEA Executive
Duplication Bonus (please see separate leaflet in the BP
for the full details.)
* CSV is equal to the wholesale price of a product or service, minus any discounts (which may include taxes, Fast-Start
Payments, ADR or Web Discounts).
EXECUTIVE BONUS
YOUR GSV =
YOU EARN =
2,000 – 2,999
9%
3,000 – 4,999
10%
5,000 – 9,999
11%
10,000 – 14,999
12%
15,000 – 24,999
13%
25,000 – 49,999
14%
50,000 +
15%
5
STEP 3 – NU SKIN ENTERPRISES’ revolutionary Wealth Maximiser
ENSURES THE MAXIMUM PAYOUT FOR YOU
Once you have achieved the level of Executive, you will benefit from the revolutionary NSE Wealth
Maximiser. The innovative Wealth Maximiser features two alternative methods of payment and
automatically pays you via the calculation which earns you the most each month.
As your downline Distributors create their own organisations and successfully complete Executive
qualification, they are considered as Breakaway Executives. If there are no other Executives
between you and these Breakaway Executives, regardless of the number of Distributor levels
between you, they are considered to be your first generation Breakaway Executives (frontline or G1
Executives).
Volume Maximiser
Receive the Extra Executive Bonus (EEB) PLUS a Double
Generation 1 Bonus (DBLG1).
EXTRA EXECUTIVE BONUS (EEB)
YOUR MINIMUM GSV
Bonus
3,000
5% commission on your Circle Group’s CSV
+
Double G1 Bonus (DBLG1)
YOUR MINIMUM GSV
Bonus
3,000
10% commission on your G1 CSV
In order to utilise the Volume Maximiser calculation you must have at least 3,000 GSV. If your
volume is between 2,000 and 2,999 you will receive a 2.5% Breakaway Bonus and you will not
receive the EEB nor the Double G1 Bonus.
6
Depth Maximiser
Receive the Breakaway Executive Bonus.
Earn up to 5% commission on the CSV of your Breakaway Executive Groups up to six
generations (G1-G6) deep in your organisation.
RECOGNITION TITLES
Gold
Lapis
Ruby
Emerald
Diamond
Blue Diamond
Number of first generation Breakaway Executives
1
G1
2
5%
3
4
5
6
7
8
9 10 11
12
5%
G2
5%
5%
G3
5%
G4
5%
G5
G6
Wealth Maximiser Bonus Payout Example
DEPTH MAXIMISER
EEB at 5%
€112.50
G1 at 5%
€450
DBLG1 at 10%
€900
G2 at 5%
€225
Total
€1012.50
Total
€675
EXECUTIVE
3,000 GSV
2,250 CSV
GOLD
EXECUTIVE
3,000 GSV
2,250 CSV
GOLD
EXECUTIVE
3,000 GSV
2,250 CSV
EXECUTIVE
3,000 GSV
2,250 CSV
EXECUTIVE
3,000 GSV
2,250 CSV
EXECUTIVE
3,000 GSV
2,250 CSV
G2
Total CSV: 4500
VOLUME MAXIMISER OR
RUBY EXECUTIVE (YOU)
100 PSV, 3,000 GSV, 2,250 CSV
G1
Total CSV: 9000
In the examples below, you receive your retail profits, FastStart Payments (Payment from the sale of Fast-Start Product
Packages), L1 and EB in both cases, plus the respective payout
from either the Volume or the Depth Maximiser.
7
Executive Maintenance Requirements
An Executive is required to meet monthly Executive Maintenance Requirements of minimum 100 PSV and
minimum 2,000 GSV to maintain Executive position and to receive the Executive bonuses.
The first time GSV falls below 2,000 GSV, a Pin Title Grace Month will be provided. During a Pin Title Grace
Month, an Executive receives the L1 Bonus if they have 100 PSV, Fast-Start Payments (payment from the sale of
Fast-Start Product Packages) and retail profits, but not the Executive bonuses. Each Executive is entitled to one
Pin Title Grace Month within a 12-month period. For example, if the Executive takes a Pin Title Grace Month in
May, the next time the Executive can take one is May of the following year.
Executives who fail to meet their maintenance requirements and who have already used their Pin Title Grace
Month will be titled Provisional Executive. Provisional Executives are considered as Executives for genealogy
purposes: they count as Breakaway Executive to their upline, GSV is not included in their upline’s GSV and their
Breakaway Executives do not roll up to the Executive upline.
Provisional Executive status is available once per Executiveship. A Provisional Executive keeps all of their own
Breakaways in addition to counting as a Breakaway Executive to their upline. A Provisional Executive’s GSV
is not included in their upline’s GSV. A Provisional Executive account can be paid the L1 Bonus of 5% for
up to three (3) consecutive months as well as Fast-Start Payments and retail profits, but not the Executive
Bonuses. If at any time during the three months the Provisional Executive meets their Executive Maintenance
Requirements, they will be immediately promoted to and paid as an Executive in that same month.
If a Provisional Executive is promoted back to Executive and fails again to maintain Executive status, and
has already used their periodical Pin Title Grace Month, they will be demoted to Distributor (a “Demoted”
Executive or “DEXEC”).
Those who fall from Executive to Distributor and qualify as an Executive again, at a later date, must wait at
least 12 months after the completion of the most recent Provisional Executive cycle before using it again. If a
fallen Executive uses the Executive Re-entry option (see Executive Re-entry for details) to retain their previous
Executiveship, they are not eligible to reuse Provisional Executive status. The Executive Re-entry option is
automatic.
Executive Re-entry Programme: Executives will be required to complete the entire Executive qualification
process again to regain Executive status. If the Demoted Executive regains their Executive title within six
months of having been demoted, they regain their Breakaway Executives. Executive Re-entry is only allowed
once per Executiveship.
8
Blue Diamond Business Builder Account
A Blue Diamond Business Builder Position (BBP) will be established for Blue Diamond Executives
once they have achieved and subsequently maintained Blue Diamond status (minimum 12
frontline (G1) Executives) for two consecutive months.
This exciting BBP is placed on your first level and allows you to receive additional commission
on the sales volume of newly created Executive Breakaway groups. (The BBP will not count
as a first generation Breakaway Executive for the purpose of maintaining your pin title.) The
BBP account cannot accumulate PSV for the purpose of maintenance nor will it accumulate
Commissionable Sales Value (CSV) for L1 or other bonuses with the exception of the Breakaway
Bonus. All volume of the BBP account will be rolled up to the parent account (your Blue
Diamond Executive account).
As new Distributors sign up under this BBP and you train them to become Breakaway
Executives, you can earn up to 5% additional Breakaway Bonus on your new generations of
Executives.
Your BBP is maintained as long as you meet the Blue Diamond Executive requirements. If these
requirements are not met, the BBP position is withdrawn and any Breakaway Executives under
the BBP position move into the G1 for commission purposes.
Group Sales Volume produced by Distributors sponsored under your BBP account will be
combined with the GSV from your parent Blue Diamond account for Executive Maintenance
Requirement purposes. Group Commissionable Sales Value can also be combined between the
BBP account and your parent BD account to determine Executive Bonuses.
Contact your Account Manager for more details on how to manage your BBP account when you
become a Blue Diamond Executive.
9
Glossary
Active Requirement: In order to qualify for any bonus under the Sales Compensation Plan, obtain
100 PSV and make five retail sales per month.
ADR: Automatic Delivery Rewards: Select a monthly automatic delivery order of NSE products
or a monthly donation to Nourish the Children® and receive rewarding benefits for your loyalty.
Breakaway Executive: A Distributor who has completed Executive Qualification and broken away
from their upline, meaning that the sales volume of the new Executive and their circle group no
longer count toward their upline’s GSV. When this event occurs, the upline Executive can qualify to
receive the Breakaway Bonus on the Commissionable Sales Value (CSV) of their new Breakaway
Executive. To recapture a Breakaway Executive, the upline Executive’s qualification date must be
on or before the roll-up Breakaway Executive’s date.
BEB: Breakaway Executive Bonus is a bonus that offers up to 5% earnings on the Commissionable
Sales Value (CSV) of each generation level based on the total number of G1 Breakaway Executives
(see chart on Step 3). To receive a 5% Breakaway Executive Bonus, an Executive must have at least
3,000 GSV. If the GSV falls between 2,000 and 2,999, then the Breakaway Executive Bonus will
be paid at 2.5% on the G1 to G6 Breakaway Executive’s CSV for that month.
Circle Group: For non-Executives, a Circle Group consists of all retail customers, Preferred
Customers and Distributors. For Executives, a Circle Group includes all retail customers, Preferred
Customers, Distributors and Qualifying Executives.
Commission: An amount you get paid based on your product sales.
CSV: Commissionable Sales Value: The monthly currency value of the commissionable products
and services purchased from the Company upon which sales compensation plan bonuses and
commissions will be calculated. CSV is equal to the wholesale price of a product or service,
minus any discounts (which may include taxes, Fast-Start Payments, ADR or Web discounts).
Qualification requirements will be based upon PSV and GSV.
10
DBLG1: Double G1 Bonus is a bonus that offers 10% earnings on the total CSV of G1 Executives.
To receive a 10% Double G1 Bonus, an Executive must have at least 3,000 GSV. This bonus is only
paid in accordance with the Volume Maximiser calculation if it contributes to the higher payout of
the two alternatives.
DEXEC: Demoted Executive is an Executive who has failed to maintain Executive requirements
and is in the process of being demoted back to Distributor. This usually occurs if Provisional
Executive status has already been used during the Executiveship.
EB: Executive Bonus is a bonus earned monthly on your total CSV. Executive Bonuses range from
9% to 15% depending on total GSV. Percentages are paid from the total CSV of your Circle Group.
EEB: Extra Executive Bonus is a bonus that offers an additional 5% earnings on your circle group
CSV. To receive this extra 5% Extra Executive Bonus, an Executive must have at least 3,000 GSV
(see chart on Step 3). This bonus is only paid in accordance with the Volume Maximiser calculation
if it contributes to the higher payout of the two alternatives.
Executive Re-entry: The process by which fallen Executives complete the qualification process
again and regain Executive status. If an account who was once an Executive goes through
qualification and passes to Executive within six months of falling to Distributor, they will recapture
their former Breakaway organisation. While an account can go through qualification as many times
as they like, the option to recapture one’s Breakaway organisation is only available during the first
six months after falling to Distributor.
Fast-Start Payment: The Fast-Start Payment is earned by selling corporately approved FastStart Product Packages to newly sponsored customers and Distributors.
G1: Generation 1 refers to your first generation of Breakaway Executives.
GSV: Group Sales Volume represents the total PSV in your Circle Group, including your own
PSV, for a given month.
LOI: Letter of Intent is a letter showing a Distributor’s intention to become an Executive. The
Distributor should visit V&G Navigator. There, they can submit their intent to be put into Executive
qualification once they meet the requirements for Month 1 (referred to as the LOI Month). During
their first month of Executive Qualification, a Distributor is often referred to as a “LOI.” A LOI is not
11
the same as a Qualifying Executive (Q1, Q2), although both are in qualification to become an Executive.
If a Distributor has been a Qualifying Executive in the past and wishes to enter Executive Qualification
again, the Distributor must submit a formal LOI to the Company.
L1: Level 1 includes all accounts that are currently sponsored by a Distributor regardless of title.
Level 1 (L1) Bonus: A 5% bonus paid based on the CSV of all personally sponsored accounts. L1
Bonus is paid only to Distributors that fulfil the Active Requirements.
Pin Title Grace Month: If an Executive fails to meet Executive Maintenance Requirements, they
may take a grace month and maintain their Executive status. Each Executive is entitled to one grace
month per 12-month rolling calendar period. For example, if you use a grace month in May, the next
time you can take one is May of the following year. Executive bonuses will not be paid during a grace
month. An Executive may earn the L1 Bonus during a grace month if they meet the minimum activity
requirements.
Preferred Customer: A Preferred Customer is a non-Distributor who is entitled to purchase products
from the Company at a discounted price.
PSV: Personal Sales Volume is the monthly point value of the products and services you purchase from
the Company primarily for retail sale or personal consumption. PSV includes points from purchases
made directly from the Company by your personal retail customers.
PEXEC: Provisional Executive is an Executive who has not met Executive Maintenance Requirements
and has already used their grace month. A PEXEC keeps all of their own Breakaways in addition to
counting as a Breakaway Executive to their upline. A PEXEC’s GSV is not included in their upline’s
GSV. An account may be a PEXEC for up to three consecutive months. If a PEXEC meets Executive
Maintenance Requirements, they will be immediately promoted to an Executive in the month that
they meet the requirements.
QEXEC: Qualifying Executive (Q1, Q2) is a Distributor who has successfully passed their first month
of Executive qualification (called a LOI Month) and is now fully on track to qualifying as an Executive
Distributor for NSE (see chart in Step 2 for monthly requirement details).
Retail Customer: A retail customer is a non-Distributor who purchases products at retail price from
a Distributor or from the Company. Volume from product purchases made through the Company by
retail customers assigned to a Distributor account are counted towards the sponsor’s PSV.
12
RPF: Retail Processing Fee is a 15% fee of the gross retail profit, retained by the Company as fee for
all retail orders placed directly through the Company.
Roll-up Breakaway Executive: A Breakaway Executive in your G1-G6 who, because their upline
Executive fails to maintain their Executive status, rolls up to the next eligible upline Executive. To
recapture a Breakaway Executive, the upline Executive’s qualification date must be on or before the
roll-up Breakaway Executive’s date.
Roll-up GSV: When a first-level (G1) Breakaway Executive falls to Distributor, the GSV of that fallen
Breakaway Executive rolls-up in to their upline’s GSV. The portion of one’s GSV that comes from
fallen Breakaway Executives is called “roll-up GSV.” This only applies to uplines who have Breakaway
Executives in markets that do not participate in the PEXEC programme. The DEXEC’s GSV will not
roll up until the following month when their title is Distributor.
Sponsor: A Distributor who personally recruits another Distributor or Preferred Customer to sign up
in their L1.
Wealth Maximiser: A bonus calculating component of the Sales Compensation Plan that will
automatically pay the higher of two alternate bonus calculations: Volume Maximiser (including Extra
Executive Bonus + Double G1 Bonus) OR Depth Maximiser (including Breakaway Executive Bonus).
Notes:
• Qualification for all bonuses requires retail sales to at least five individuals on a monthly basis. You
must keep all records of retail sales for at least four years.
• Compliance with the retail sales requirements of the Company is randomly monitored.
• Each product purchased through ADR orders by non-Distributors or customers is automatically
counted on a monthly basis toward retail sales requirements.
• Bonuses are never paid for recruiting. The only way to earn bonuses is through the sale of products.
• All bonuses are calculated on a monthly basis and mailed or deposited on or about the 25th of the
following month.
www.nuskin.com
EN_Q2_2014_LM_CM
© 2014 NSE Products, Inc.

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