CompPlan Jan14
B R AN D R E P
COMPENSATION PLAN
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
CONTENTS
Your Bona Clara Compensation Plan
3
Compensation Plan Vocabulary Learn some important terms used throughout the compensation plan.
4
Earning On Your Personal Sales How to earn on your retail sales!
5
Building Your Team: Promotions How to promote by sponsoring a team!
6
Building Your Team: Sponsoring Commissions Your commissions on your growing team.
7
Building Your Team: Mentor Bonuses Earn bonus commissions on newly sponsored reps on your team!
8
Building Your Team: Promotion Bonuses Earn extra bonuses on promoting to Brand Manager and Director.
9
Directors: Group Volume Bonus Earn extra on your group as a Director.
10
Directors: Promoting Beyond Your career path continues after you reach Director.
11
Directors: Generations Commissions Your reward for growing new Directors.
12
Getting Paid: Your Pink Card How you receive your commissions.
13
Getting Paid: Frequency Commissions are paid twice a month. Learn how.
14
Cancellation & Refunds Learn about what happens when a Brand Rep cancels. Or a customer gets a refund.
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
Compensation Plan Vocabulary
Before we delve into some of the specifics, it’s important to be familiar with some of the terms used throughout the compensation plan and in explaining your commissions and promotions.
2 Types of Sales Volume P-QV
CV
(Personal Qualifying Volume)
(Commissionable Volume)
A type of volume used to calculate your commissions which includes the total QV (qualifying volume) of your personal purchases and that of your personally enrolled customers. This does not include hostess rewards or tax or shipping. QV, or Qualifying Volume, is generally the full retail price of products. For example: for a treatment cream that your retail customer purchases for $75, the QV = $75.
The type of volume used to calculate sponsoring commissions. Example: Because your Team brand reps have earned 30% of the full retail price, your commissions on their sales will be based on a percentage of the remaining 70%: this is the CV.
Other Commonly-Used Terms Active- You are an active Rep in a monthly pay period if you achieve $300 P-QV.
Group- A subset of your Team. If there are Directors in your Team, your Group does not include those Directors or any of the people under them.
Active Branch- Includes a single Active Rep sponsored by you and all of the people under them.
Sponsor- A Rep who personally brings in a new Rep and who first explains the business opportunity.
Career Title- The highest title that you qualify for based upon your P-QV, Team Size, and Group volume qualifications.
Team- Every person under you at every level.
Paid-As Title- Commissions will be calculated according at the highest title at which you qualify that month. That title is your paid-as title. It may differ from your career title.
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
Upline- the Rep or Reps above you in any Genealogy.
3
E A R N I N G ON YOU R PE R S ON A L S A L E S
YOU EARN 30% You earn 30% of the full retail price of products sold to your personally enrolled retail and Auto-ship customers. Your personally enrolled retail customers include your regular party customers, and customers who purchase through your retail page. Hostess rewards are not used to calculate your commissions.
purchase products for myself through my Business center? Do I earn commissions on those?
A: Products you purchase
at wholesale price through your Business Center generally have a 30% discount already applied and as a result are not used to calculate your retail commissions.
A REFRESHER:
HOW TO EARN
3%, 5%, or 10% Extra of P-QV POWER SELLER BONUS We believe in rewarding hard work. If you have an incredible month of sales, it should show beyond the 30%. This is why we created the Power Seller Bonus. This bonus pays you an extra percentage of your P-QV in a month when you pass a certain threshold. It can boost your commissions all the way to 40% on all your sales for the month! See the table below for the thresholds and additional percentages. Remember P-QV includes QV of personal wholesale orders. Minimum P-QV
Q: What about if I
P-QV = QV of your own purchases + QV of your retail sales.
Q: When do I have to
qualify for the power seller bonus?
A: There is no specific
time in the month that you need to qualify. As long as you pass one of the thresholds in P-QV by 11:59pm EST on the last day of the month, you will have qualified.
Q: Does the Power Seller
Bonus apply to all my sales for the month, or just those that go beyond the threshold?
A: This is the great thing
about the power seller bonus: it applies to ALL your sales for the month!
% of P-QV Payout Q: Is there a maximum
1500
3%
number of times I can qualify for the Power Seller bonus?
2500
5%
A: No! You can qualify for
5000
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
10%
4
it every month! This means you can earn 40% every month. There is no limit.
R E A DY T O PR OM O T E ?
Career Titles & Qualifications CAREER TITLES Building a Team is one of the most rewarding parts of being a Brand Rep. As you begin to sponsor and build out your organization, your opportunity to earn additional income increases dramatically. Not only will you earn from the sales of the Reps you directly sponsor, but you will be able to earn from the Reps they sponsor as well. The growth of your Team and your sales can also earn you a promotion! Once you have submitted your application and purchased a Welcome Kit, you are officially a Brand Rep. This is your first Career Title! When you reach certain P-QV, Team Size, and Group volume qualifications in a pay period, you will receive a promotion to your new Career Title in that period along with the great commissions and potential bonuses that come with it!
FACTORS THAT QUALIFY YOU FOR A PROMOTION: DIRECTOR
1) Your P-QV
SENIOR BRAND MANAGER
2) Team Size 3) Group Volume
BRAND MANAGER SENIOR BRAND REP ASSOCIATE BRAND REP BRAND REP
START HERE
HOW TO PROMOTE: The Qualifications
Personal QV
Team Size
Brand Rep
Associate Brand Rep
Senior Brand Rep
Brand Manager
Senior Brand Manager
Director
$0
$300
$400
$500
$600
$800
3 Active Branches
4 Active Branches (at least two are paid-as Associate Brand Reps)
5 Active Branches (at least two are paid-as Brand Managers)
$2000
$4000
$8000
-
1 Active Branch
2 Active Branches
Group QV
Group QV is the total QV of all Reps in your Group. See page 9 for more on Groups.
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5
HOW A PR OM O T ION C H A N G E S YO U R C OM M I S S ION S As with any promotion, your commissions and earning potential improves -hooray! You start earning additional commissions beyond your 30%. This means that you could potentially be earning beyond 40%. Lets find out more about your new set of earnings: % OF YOUR SALES
70% }
SPONSORING COMMISSIONS When you start sponsoring someone, you start earning a new kind of commissions: Sponsoring Commissions. These are based on Commissionable Volume, or CV. The CV is calculated on 70% of the retail price. Here is why: Because the Rep you are
CV is Calculated from here. This remaining 70% is where your Sponsoring Commissions come from. So when we say % of CV. It is a % of this 70%.
30%
sponsoring will be earning their 30% commissions of the full retail price, your sponsoring commissions on their sales will be based on the remaining 70%.
30% Goes to the Rep
making the sale (these are their commissions).
YOU LEVEL 1
LEVEL 1 Your Level 1 Reps are your personally sponsored Reps directly below you.
2
LEVEL 2
LEVEL 2 Your Level 2 Reps are Reps sponsored by your Level 1 Reps (2 levels down).
3
LEVEL 3
LEVEL 3 Your Level 3 Reps are Reps sponsored by your Level 2 Reps (3 levels down).
1
1
2 3
1
NOTE: Senior Brand Rep and higher receive sponsoring commissions for Level 2 Reps. Once you achieve the Senior Brand Manager title, you will start to receive sponsoring commissions for your Level 3 Reps in addition to the Level 1 and 2 Reps. Brand Rep
Associate Brand Rep
Senior Brand Rep
Brand Manager
Senior Brand Manager
Director
Level 1 % of CV
-
6%
8%
10%
10%
10%
Level 2 % of CV
-
-
2%
3%
5%
5%
Level 3 % of CV
-
-
-
-
2%
2%
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
6
MORE PERKS FOR SPONSORING MENTOR BONUSES Helping a new Brand Rep succeed takes extra time and dedication and that it should be rewarded. This is why we created our Mentor Bonuses. Their goal is to reward you not only for sponsoring, but helping those new Reps succeed early on. Remember, those first 90 days are critical! These Mentor Bonuses are earned on top of your sponsoring commissions. There are two sets: 90-DAY MENTOR BONUS: When you recruit a new Brand Rep (Level 1), you earn an extra bonus (on top of sponsoring commissions) on her CV during her first 90 days. If your active Level 1 Rep also recruits someone (your Level 2), then you are also eligible for a bonus on the the commissions of that new Rep’s CV during her first 90 days.
DOUBLE-90 MENTOR BONUS: Lastly, if you qualify for the 90-day Mentor Bonus within your first 90 days as a Brand Rep, those Level 1 and Level 2 bonuses are doubled!
90-Day Mentor Bonus
DOUBLE 90 Mentor Bonus
6%
12%
3%
6%
Level 1 % of CV LEVEL 1 MENTOR BONUS: Earn 6% of the CV of your new recruit within 90 days. If you are within your first 90 days, this doubles to 12%
Level 2 % of CV LEVEL 2 MENTOR BONUS: Earn 3% of the CV of your new recruit within 90 days. If you are within your first 90 days, this doubles to 6%! NOTE: This means your sponsoring commissions can be as high as: 18% - 22% CV on Level 1 8% - 11% CV on Level 2
Revisit the chart on the previous page, and add these CV%’s to see how much the commissions grow in each case.
NOTE: To receive the Level 1 Mentor Bonus, you must be active. To receive the Level 2 Mentor Bonus, you must be active and have a Paid-As Rank of Associate Brand Rep or higher. If the Level 1 Sponsor is inactive then the bonus for their recruit is not paid out.
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
7
MORE PERKS FOR SPONSORING PROMOTION BONUSES
$250
$500
$250 FOR PROMOTING TO BRAND MANAGER
$500 FOR PROMOTING TO DIRECTOR
In addition to the increased commissions associated with promoting to a new Career Title, you earn one-time bonus of $250 when you promote to Brand Manager within your first 4 months (the calendar month you join + the next 3 months). The Sponsor of a Brand Rep who achieves the Career Title of Brand Manager also gets a matching $250 bonus if the Sponsor has a Career Title of Brand Manager or higher.
Similarly, there is an advancement bonus for promoting to the “Director” Career Title within your first 7 months (the calendar month you join + the next 6 months). The one-time bonus is $500. Similar to the Brand Manager promotion, there is a matching $500 Bonus for Sponsors who are at the Director rank or higher.
Brand Manager Promotion Bonus
$250
Director Promotion Bonus
$500
Sponsor Matching Bonus (Brand Manager or Above)
$250
Sponsor Matching Bonus (Director or Above)
$500
NOTE: You can earn the Advancement Bonuses whenever your Level 1 Reps are promoted to these titles. While you can only collect your personal bonus once, there is no limit to how many times you can collect the matching bonus from the promotion of your Level 1 consultants.
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8
T H E B ON A C L A R A DI R E C T OR
All Directors earn an extra 3% of CV on their group! DIRECTOR’S GROUP VOLUME BONUS Directors earn an additional 3% of their Group’s CV on top of sponsoring commissions! Remember, your Group is you and all the members of your Team under you down to the first director in each branch.
YOU Director
This is the first Director in this Branch. She and everyone under her are not in your group.
Brand Manager
New Directors keep their Paid-As Title for 2 months! Achieving Director is a huge accomplishment. Following your promotion to Director, you are guaranteed to keep that as your Paid-As Title for one additional month even if you do not meet the qualifications for Director that month. Reps with a Director title need to be Paid-As a Director at least once every 12 months (current + prior 11 months. Otherwise, their Career Title will become their Paid-As Title achieved in the 12th month.
THIS IS YOUR GROUP
Associate Brand Rep
Maintaining Your Director Title
Associate Brand Rep
Career Titles lower than Director are permanent. Reminder: Career Title Vs. Paid-As Title
Director
Associate Brand Rep
Associate Brand Rep
Director
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
You maintain your Career Title even if in the following months after your promotion you do not reach the same qualifications. In any given month, if you don’t hit your qualifications, you keep your Career Title, however, commissions will be calculated according at the highest title at which you qualify that month. This is your Paid-As Title.
9
T H E DI R E C T OR C A R E E R PA T H PROMOTING BEYOND DIRECTOR
JUST LIKE DIRECTOR:
The Director title opens the door for additional growth and promotion opportunities. Your team is next in line to achieve this prestigious career title. As a Director, you have the experience to coach your downline towards success! When you sponsor your first director in your Level 1, you qualify to become a Senior Director.
To maintain these as your Career Title, you need to achieve them once every 12 months. You also keep these as your PaidAs Title for 2 months even if you don’t meet qualifications in the 2nd month after promoting!
FACTORS THAT QUALIFY YOU FOR A PROMOTION BEYOND DIRECTOR: 1. Qualifying as a Director (see page 5) 2. Director Team Size 3. Team QV
PRINCIPAL DIRECTOR SENIOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR
REMINDER: Your Level 1 Reps are your personally sponsored Reps directly below you.
SENIOR DIRECTOR START HERE
DIRECTOR
HOW TO PROMOTE: The Qualifications Senior Director
Executive Director
Senior Executive Director
Principal Director
$800 P-QV $8,000 G-QV
$800 P-QV $8,000 G-QV
$800 P-QV $8,000 G-QV
$800 P-QV $8,000 G-QV
Director Team Size
1 Director Branch
2 Director Branches
4 Director Branches, 2 paid-as Senior Director
Team QV
-
$30,000
$75,000
Personal QV, Group QV
Team QV is the total QV of all Reps under you, including those outside your group.
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10
6 Director Branches, 2 paid-as Senior Director, and 1 new Director sponsored every 12 months
$200,000
G E N E R A T ION C OM M I S S ION S :
Your commissions for growing new directors! Promoting beyond Director occurs when you grow new Directors on your team. When this happens, the new Directors and those Reps under them are now no longer in your group – they are now in a new generation. This opens the door for you to earn Generation Commissions.
YOU
Executive Director YOUR GROUP
Associate Brand Rep
Associate Brand Rep
Associate Brand Rep
Senior Director
Director
Brand Rep
GENERATION 1 Brand Rep
Director
GENERATION 2
Associate Brand Rep
EARNINGS
Generation 1
Senior Director
Executive Director
Senior Executive Director
Principal Director
6%
8%
10%
10%
Generation 2
-
2%
3%
5%
Generation 3
-
-
-
2%
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
11
Generation Commissions pays on a % of CV with one exception: new Brand Reps who are earning their Mentor Bonus (see page 7 for Mentor Bonus) are not counted towards this total CV.
LEVELS & GENERATIONS CAN STACK! Level commissions that you earn from sponsoring (see page 6) still apply even after you qualify for Generation commissions. After you promote to director and beyond, you will be paid on both types of commissions.
Generations:
Levels: LEVEL 1
Your directly sponsored reps.
YOUR GROUP
You and all members of your team down to the first director in each branch. (This is like your own Generation.)
LEVEL 2
Reps directly sponsored by Level 1.
GENERATION 1
Your first line of Directors and their Groups.
LEVEL 3
Reps directly sponsored by Level 2.
GENERATION 2
The next line of Directors and their below Generation 1 Directors.
Example For An Executive Director: As a Paid-As Executive Director, you earn 10% CV of your Level 1, 5% CV of your Level 2, and 2% CV of your Level 3. Your Generation Commissions are 8% CV on your Generation 1, and 2% on your Generation 2.
YOUR GROUP
YOU
EARNINGS FROM JORDAN
Executive Director LEVEL 1
(3% CV)
+
Brand Manager
GENERATION 1
Total:
GENERATION 1
Director
10% CV 8% CV
18% CV!
Jordan
Senior Director
(8% CV)
Molly
EARNINGS FROM MOLLY
Brand Manager
GENERATION 2 (2% CV)
Director
+
LEVEL 2
5% CV
GENERATION 1
8% CV
Total:
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12
13% CV!
IT’S HOW YOU GET YOUR COMMISSIONS
YOUR PINK CARD:
The Bona Clara Prepaid Visa Card The Bona Clara Pink Card is a flexible Prepaid Visa card designated for all your commissions. (It’s a great conversation starter too!) You will receive a card separately in the mail from your welcome kit. It is up to you to activate it online. Once activated, your commissions and earnings can be made available and can be used wherever Visa debit cards are accepted.
Why You’ll
PINK CARD
it:
RAPID ACCESS TO YOUR COMMISSIONS: When a pay period comes to a close, your earnings are automatically available to you within days, giving you quick and convenient access to all your commissions. BRANDING: Show off your job and start a conversation whenever you use your Bona Clara Pink Card. It is sure to be noticed! EASY ONLINE MANAGEMENT: Each card also comes with an easy online portal for you to view your transactions, change your PIN, and manage your commissions. EASY TRANSFERS TO DIRECT DEPOSIT: Through the online portal you can easily designate which percentage you would like to stay on the prepaid card and which percentage you would like automatically transferred directly to your bank account. You can make this automatic for each pay period so that you don’t have to think about it, or you can do it manually yourself. This is great for flexibility and budgeting. USE IT EVERYWHERE: Use your Bona Clara Pink Card everywhere Visa debit cards are accepted (in-store, online, worldwide, and at ATMs).
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
13
PAYOUT FREQUENCY Commissions are calculated and paid 2x a month: Mid-month & End-of-month. They will soon be your favorite times! Your earnings are automatically loaded onto your Pink Visa Card.
MID-MONTH COMMISSIONS
END OF MONTH COMMISSIONS
PAYOUT DATE:
PAYOUT DATE:
16th
1st
(If this is a weekend the payout will take place on the next business day)
(Of the following month. If this is a weekend the payout will take place on the next business day)
INCLUDES: 30% Sales Commissions Earned 1st - 15th
INCLUDES: 30% Sales Commissions Earned 1st - 15th
Sponsoring Commissions Earned over the entire month. Power Seller & Promotion Bonuses Earned over the entire month.
MID-MONTH COMMISSIONS: Your 30% sales commissions (Retained Earnings and Retail Profit) earned between the 1st and 15th of the month will be calculated and paid out on the 16th of that month (or the next business day if the 16th is on a weekend) as well as on the 1st of the month. All other bonuses are calculated once a month and paid out on the 1st of that month (or the next business day if the 1st is on a weekend). END-OF-MONTH COMMISSIONS: Your 30% sales commissions (Retained Earnings and Retail Profit) earned between the 16th and the last day of the month. It will also include the Power Seller bonus accumulated over the whole month and earnings from your downline sales. CALCULATING POWER SELLER BONUSES: Power Seller bonuses are calculated for the total Personal Qualifying Volume accumulated over the course of the whole month and will be paid out in the commissions calculated at the end of the month. CALCULATING SPONSORING COMMISSIONS: Your mentor bonuses, promotion bonuses and Level 1-3 override bonuses will be calculated once a month at the end of each month.
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
14
CANCELLING AS A BRAND REP
CANCELLATION As a Bona Clara Brand Rep, you need to have a minimum of $900 P-QV in a rolling 12-month period in order to continue keep your Team and continue a Brand Rep. If a Brand Rep leaves Bona Clara on your team or is unable to meet the $900 yearly P-QV, Brand Reps under her are moved up one level. In this example, a Brand Rep in your Level 1 leaves. The two Brand Reps that she has sponsored are now moved up from your Level 2 to your Level 1.
BEFORE
AFTER
YOU
YOU
LEVEL 1
LEVEL 1 CANCELED
LEVEL 2
REFUNDS We want all of our customers to love Bona Clara Products. Returns occasionally do happen. All returns are handled by the corporate office by calling 1-855-4BCLARA. You or your customers will have their refund credited back to the card originally used to purchase. In the event of a refund, commissions on returned products will be subtracted from your future earnings.
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
15
COMPENSATION PLAN
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
CONTENTS
Your Bona Clara Compensation Plan
3
Compensation Plan Vocabulary Learn some important terms used throughout the compensation plan.
4
Earning On Your Personal Sales How to earn on your retail sales!
5
Building Your Team: Promotions How to promote by sponsoring a team!
6
Building Your Team: Sponsoring Commissions Your commissions on your growing team.
7
Building Your Team: Mentor Bonuses Earn bonus commissions on newly sponsored reps on your team!
8
Building Your Team: Promotion Bonuses Earn extra bonuses on promoting to Brand Manager and Director.
9
Directors: Group Volume Bonus Earn extra on your group as a Director.
10
Directors: Promoting Beyond Your career path continues after you reach Director.
11
Directors: Generations Commissions Your reward for growing new Directors.
12
Getting Paid: Your Pink Card How you receive your commissions.
13
Getting Paid: Frequency Commissions are paid twice a month. Learn how.
14
Cancellation & Refunds Learn about what happens when a Brand Rep cancels. Or a customer gets a refund.
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
Compensation Plan Vocabulary
Before we delve into some of the specifics, it’s important to be familiar with some of the terms used throughout the compensation plan and in explaining your commissions and promotions.
2 Types of Sales Volume P-QV
CV
(Personal Qualifying Volume)
(Commissionable Volume)
A type of volume used to calculate your commissions which includes the total QV (qualifying volume) of your personal purchases and that of your personally enrolled customers. This does not include hostess rewards or tax or shipping. QV, or Qualifying Volume, is generally the full retail price of products. For example: for a treatment cream that your retail customer purchases for $75, the QV = $75.
The type of volume used to calculate sponsoring commissions. Example: Because your Team brand reps have earned 30% of the full retail price, your commissions on their sales will be based on a percentage of the remaining 70%: this is the CV.
Other Commonly-Used Terms Active- You are an active Rep in a monthly pay period if you achieve $300 P-QV.
Group- A subset of your Team. If there are Directors in your Team, your Group does not include those Directors or any of the people under them.
Active Branch- Includes a single Active Rep sponsored by you and all of the people under them.
Sponsor- A Rep who personally brings in a new Rep and who first explains the business opportunity.
Career Title- The highest title that you qualify for based upon your P-QV, Team Size, and Group volume qualifications.
Team- Every person under you at every level.
Paid-As Title- Commissions will be calculated according at the highest title at which you qualify that month. That title is your paid-as title. It may differ from your career title.
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
Upline- the Rep or Reps above you in any Genealogy.
3
E A R N I N G ON YOU R PE R S ON A L S A L E S
YOU EARN 30% You earn 30% of the full retail price of products sold to your personally enrolled retail and Auto-ship customers. Your personally enrolled retail customers include your regular party customers, and customers who purchase through your retail page. Hostess rewards are not used to calculate your commissions.
purchase products for myself through my Business center? Do I earn commissions on those?
A: Products you purchase
at wholesale price through your Business Center generally have a 30% discount already applied and as a result are not used to calculate your retail commissions.
A REFRESHER:
HOW TO EARN
3%, 5%, or 10% Extra of P-QV POWER SELLER BONUS We believe in rewarding hard work. If you have an incredible month of sales, it should show beyond the 30%. This is why we created the Power Seller Bonus. This bonus pays you an extra percentage of your P-QV in a month when you pass a certain threshold. It can boost your commissions all the way to 40% on all your sales for the month! See the table below for the thresholds and additional percentages. Remember P-QV includes QV of personal wholesale orders. Minimum P-QV
Q: What about if I
P-QV = QV of your own purchases + QV of your retail sales.
Q: When do I have to
qualify for the power seller bonus?
A: There is no specific
time in the month that you need to qualify. As long as you pass one of the thresholds in P-QV by 11:59pm EST on the last day of the month, you will have qualified.
Q: Does the Power Seller
Bonus apply to all my sales for the month, or just those that go beyond the threshold?
A: This is the great thing
about the power seller bonus: it applies to ALL your sales for the month!
% of P-QV Payout Q: Is there a maximum
1500
3%
number of times I can qualify for the Power Seller bonus?
2500
5%
A: No! You can qualify for
5000
VERSION 1.2 EFFECTIVE DATE: JANUARY 8TH, 2014
10%
4
it every month! This means you can earn 40% every month. There is no limit.
R E A DY T O PR OM O T E ?
Career Titles & Qualifications CAREER TITLES Building a Team is one of the most rewarding parts of being a Brand Rep. As you begin to sponsor and build out your organization, your opportunity to earn additional income increases dramatically. Not only will you earn from the sales of the Reps you directly sponsor, but you will be able to earn from the Reps they sponsor as well. The growth of your Team and your sales can also earn you a promotion! Once you have submitted your application and purchased a Welcome Kit, you are officially a Brand Rep. This is your first Career Title! When you reach certain P-QV, Team Size, and Group volume qualifications in a pay period, you will receive a promotion to your new Career Title in that period along with the great commissions and potential bonuses that come with it!
FACTORS THAT QUALIFY YOU FOR A PROMOTION: DIRECTOR
1) Your P-QV
SENIOR BRAND MANAGER
2) Team Size 3) Group Volume
BRAND MANAGER SENIOR BRAND REP ASSOCIATE BRAND REP BRAND REP
START HERE
HOW TO PROMOTE: The Qualifications
Personal QV
Team Size
Brand Rep
Associate Brand Rep
Senior Brand Rep
Brand Manager
Senior Brand Manager
Director
$0
$300
$400
$500
$600
$800
3 Active Branches
4 Active Branches (at least two are paid-as Associate Brand Reps)
5 Active Branches (at least two are paid-as Brand Managers)
$2000
$4000
$8000
-
1 Active Branch
2 Active Branches
Group QV
Group QV is the total QV of all Reps in your Group. See page 9 for more on Groups.
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5
HOW A PR OM O T ION C H A N G E S YO U R C OM M I S S ION S As with any promotion, your commissions and earning potential improves -hooray! You start earning additional commissions beyond your 30%. This means that you could potentially be earning beyond 40%. Lets find out more about your new set of earnings: % OF YOUR SALES
70% }
SPONSORING COMMISSIONS When you start sponsoring someone, you start earning a new kind of commissions: Sponsoring Commissions. These are based on Commissionable Volume, or CV. The CV is calculated on 70% of the retail price. Here is why: Because the Rep you are
CV is Calculated from here. This remaining 70% is where your Sponsoring Commissions come from. So when we say % of CV. It is a % of this 70%.
30%
sponsoring will be earning their 30% commissions of the full retail price, your sponsoring commissions on their sales will be based on the remaining 70%.
30% Goes to the Rep
making the sale (these are their commissions).
YOU LEVEL 1
LEVEL 1 Your Level 1 Reps are your personally sponsored Reps directly below you.
2
LEVEL 2
LEVEL 2 Your Level 2 Reps are Reps sponsored by your Level 1 Reps (2 levels down).
3
LEVEL 3
LEVEL 3 Your Level 3 Reps are Reps sponsored by your Level 2 Reps (3 levels down).
1
1
2 3
1
NOTE: Senior Brand Rep and higher receive sponsoring commissions for Level 2 Reps. Once you achieve the Senior Brand Manager title, you will start to receive sponsoring commissions for your Level 3 Reps in addition to the Level 1 and 2 Reps. Brand Rep
Associate Brand Rep
Senior Brand Rep
Brand Manager
Senior Brand Manager
Director
Level 1 % of CV
-
6%
8%
10%
10%
10%
Level 2 % of CV
-
-
2%
3%
5%
5%
Level 3 % of CV
-
-
-
-
2%
2%
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MORE PERKS FOR SPONSORING MENTOR BONUSES Helping a new Brand Rep succeed takes extra time and dedication and that it should be rewarded. This is why we created our Mentor Bonuses. Their goal is to reward you not only for sponsoring, but helping those new Reps succeed early on. Remember, those first 90 days are critical! These Mentor Bonuses are earned on top of your sponsoring commissions. There are two sets: 90-DAY MENTOR BONUS: When you recruit a new Brand Rep (Level 1), you earn an extra bonus (on top of sponsoring commissions) on her CV during her first 90 days. If your active Level 1 Rep also recruits someone (your Level 2), then you are also eligible for a bonus on the the commissions of that new Rep’s CV during her first 90 days.
DOUBLE-90 MENTOR BONUS: Lastly, if you qualify for the 90-day Mentor Bonus within your first 90 days as a Brand Rep, those Level 1 and Level 2 bonuses are doubled!
90-Day Mentor Bonus
DOUBLE 90 Mentor Bonus
6%
12%
3%
6%
Level 1 % of CV LEVEL 1 MENTOR BONUS: Earn 6% of the CV of your new recruit within 90 days. If you are within your first 90 days, this doubles to 12%
Level 2 % of CV LEVEL 2 MENTOR BONUS: Earn 3% of the CV of your new recruit within 90 days. If you are within your first 90 days, this doubles to 6%! NOTE: This means your sponsoring commissions can be as high as: 18% - 22% CV on Level 1 8% - 11% CV on Level 2
Revisit the chart on the previous page, and add these CV%’s to see how much the commissions grow in each case.
NOTE: To receive the Level 1 Mentor Bonus, you must be active. To receive the Level 2 Mentor Bonus, you must be active and have a Paid-As Rank of Associate Brand Rep or higher. If the Level 1 Sponsor is inactive then the bonus for their recruit is not paid out.
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MORE PERKS FOR SPONSORING PROMOTION BONUSES
$250
$500
$250 FOR PROMOTING TO BRAND MANAGER
$500 FOR PROMOTING TO DIRECTOR
In addition to the increased commissions associated with promoting to a new Career Title, you earn one-time bonus of $250 when you promote to Brand Manager within your first 4 months (the calendar month you join + the next 3 months). The Sponsor of a Brand Rep who achieves the Career Title of Brand Manager also gets a matching $250 bonus if the Sponsor has a Career Title of Brand Manager or higher.
Similarly, there is an advancement bonus for promoting to the “Director” Career Title within your first 7 months (the calendar month you join + the next 6 months). The one-time bonus is $500. Similar to the Brand Manager promotion, there is a matching $500 Bonus for Sponsors who are at the Director rank or higher.
Brand Manager Promotion Bonus
$250
Director Promotion Bonus
$500
Sponsor Matching Bonus (Brand Manager or Above)
$250
Sponsor Matching Bonus (Director or Above)
$500
NOTE: You can earn the Advancement Bonuses whenever your Level 1 Reps are promoted to these titles. While you can only collect your personal bonus once, there is no limit to how many times you can collect the matching bonus from the promotion of your Level 1 consultants.
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T H E B ON A C L A R A DI R E C T OR
All Directors earn an extra 3% of CV on their group! DIRECTOR’S GROUP VOLUME BONUS Directors earn an additional 3% of their Group’s CV on top of sponsoring commissions! Remember, your Group is you and all the members of your Team under you down to the first director in each branch.
YOU Director
This is the first Director in this Branch. She and everyone under her are not in your group.
Brand Manager
New Directors keep their Paid-As Title for 2 months! Achieving Director is a huge accomplishment. Following your promotion to Director, you are guaranteed to keep that as your Paid-As Title for one additional month even if you do not meet the qualifications for Director that month. Reps with a Director title need to be Paid-As a Director at least once every 12 months (current + prior 11 months. Otherwise, their Career Title will become their Paid-As Title achieved in the 12th month.
THIS IS YOUR GROUP
Associate Brand Rep
Maintaining Your Director Title
Associate Brand Rep
Career Titles lower than Director are permanent. Reminder: Career Title Vs. Paid-As Title
Director
Associate Brand Rep
Associate Brand Rep
Director
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You maintain your Career Title even if in the following months after your promotion you do not reach the same qualifications. In any given month, if you don’t hit your qualifications, you keep your Career Title, however, commissions will be calculated according at the highest title at which you qualify that month. This is your Paid-As Title.
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T H E DI R E C T OR C A R E E R PA T H PROMOTING BEYOND DIRECTOR
JUST LIKE DIRECTOR:
The Director title opens the door for additional growth and promotion opportunities. Your team is next in line to achieve this prestigious career title. As a Director, you have the experience to coach your downline towards success! When you sponsor your first director in your Level 1, you qualify to become a Senior Director.
To maintain these as your Career Title, you need to achieve them once every 12 months. You also keep these as your PaidAs Title for 2 months even if you don’t meet qualifications in the 2nd month after promoting!
FACTORS THAT QUALIFY YOU FOR A PROMOTION BEYOND DIRECTOR: 1. Qualifying as a Director (see page 5) 2. Director Team Size 3. Team QV
PRINCIPAL DIRECTOR SENIOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR
REMINDER: Your Level 1 Reps are your personally sponsored Reps directly below you.
SENIOR DIRECTOR START HERE
DIRECTOR
HOW TO PROMOTE: The Qualifications Senior Director
Executive Director
Senior Executive Director
Principal Director
$800 P-QV $8,000 G-QV
$800 P-QV $8,000 G-QV
$800 P-QV $8,000 G-QV
$800 P-QV $8,000 G-QV
Director Team Size
1 Director Branch
2 Director Branches
4 Director Branches, 2 paid-as Senior Director
Team QV
-
$30,000
$75,000
Personal QV, Group QV
Team QV is the total QV of all Reps under you, including those outside your group.
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6 Director Branches, 2 paid-as Senior Director, and 1 new Director sponsored every 12 months
$200,000
G E N E R A T ION C OM M I S S ION S :
Your commissions for growing new directors! Promoting beyond Director occurs when you grow new Directors on your team. When this happens, the new Directors and those Reps under them are now no longer in your group – they are now in a new generation. This opens the door for you to earn Generation Commissions.
YOU
Executive Director YOUR GROUP
Associate Brand Rep
Associate Brand Rep
Associate Brand Rep
Senior Director
Director
Brand Rep
GENERATION 1 Brand Rep
Director
GENERATION 2
Associate Brand Rep
EARNINGS
Generation 1
Senior Director
Executive Director
Senior Executive Director
Principal Director
6%
8%
10%
10%
Generation 2
-
2%
3%
5%
Generation 3
-
-
-
2%
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Generation Commissions pays on a % of CV with one exception: new Brand Reps who are earning their Mentor Bonus (see page 7 for Mentor Bonus) are not counted towards this total CV.
LEVELS & GENERATIONS CAN STACK! Level commissions that you earn from sponsoring (see page 6) still apply even after you qualify for Generation commissions. After you promote to director and beyond, you will be paid on both types of commissions.
Generations:
Levels: LEVEL 1
Your directly sponsored reps.
YOUR GROUP
You and all members of your team down to the first director in each branch. (This is like your own Generation.)
LEVEL 2
Reps directly sponsored by Level 1.
GENERATION 1
Your first line of Directors and their Groups.
LEVEL 3
Reps directly sponsored by Level 2.
GENERATION 2
The next line of Directors and their below Generation 1 Directors.
Example For An Executive Director: As a Paid-As Executive Director, you earn 10% CV of your Level 1, 5% CV of your Level 2, and 2% CV of your Level 3. Your Generation Commissions are 8% CV on your Generation 1, and 2% on your Generation 2.
YOUR GROUP
YOU
EARNINGS FROM JORDAN
Executive Director LEVEL 1
(3% CV)
+
Brand Manager
GENERATION 1
Total:
GENERATION 1
Director
10% CV 8% CV
18% CV!
Jordan
Senior Director
(8% CV)
Molly
EARNINGS FROM MOLLY
Brand Manager
GENERATION 2 (2% CV)
Director
+
LEVEL 2
5% CV
GENERATION 1
8% CV
Total:
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13% CV!
IT’S HOW YOU GET YOUR COMMISSIONS
YOUR PINK CARD:
The Bona Clara Prepaid Visa Card The Bona Clara Pink Card is a flexible Prepaid Visa card designated for all your commissions. (It’s a great conversation starter too!) You will receive a card separately in the mail from your welcome kit. It is up to you to activate it online. Once activated, your commissions and earnings can be made available and can be used wherever Visa debit cards are accepted.
Why You’ll
PINK CARD
it:
RAPID ACCESS TO YOUR COMMISSIONS: When a pay period comes to a close, your earnings are automatically available to you within days, giving you quick and convenient access to all your commissions. BRANDING: Show off your job and start a conversation whenever you use your Bona Clara Pink Card. It is sure to be noticed! EASY ONLINE MANAGEMENT: Each card also comes with an easy online portal for you to view your transactions, change your PIN, and manage your commissions. EASY TRANSFERS TO DIRECT DEPOSIT: Through the online portal you can easily designate which percentage you would like to stay on the prepaid card and which percentage you would like automatically transferred directly to your bank account. You can make this automatic for each pay period so that you don’t have to think about it, or you can do it manually yourself. This is great for flexibility and budgeting. USE IT EVERYWHERE: Use your Bona Clara Pink Card everywhere Visa debit cards are accepted (in-store, online, worldwide, and at ATMs).
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PAYOUT FREQUENCY Commissions are calculated and paid 2x a month: Mid-month & End-of-month. They will soon be your favorite times! Your earnings are automatically loaded onto your Pink Visa Card.
MID-MONTH COMMISSIONS
END OF MONTH COMMISSIONS
PAYOUT DATE:
PAYOUT DATE:
16th
1st
(If this is a weekend the payout will take place on the next business day)
(Of the following month. If this is a weekend the payout will take place on the next business day)
INCLUDES: 30% Sales Commissions Earned 1st - 15th
INCLUDES: 30% Sales Commissions Earned 1st - 15th
Sponsoring Commissions Earned over the entire month. Power Seller & Promotion Bonuses Earned over the entire month.
MID-MONTH COMMISSIONS: Your 30% sales commissions (Retained Earnings and Retail Profit) earned between the 1st and 15th of the month will be calculated and paid out on the 16th of that month (or the next business day if the 16th is on a weekend) as well as on the 1st of the month. All other bonuses are calculated once a month and paid out on the 1st of that month (or the next business day if the 1st is on a weekend). END-OF-MONTH COMMISSIONS: Your 30% sales commissions (Retained Earnings and Retail Profit) earned between the 16th and the last day of the month. It will also include the Power Seller bonus accumulated over the whole month and earnings from your downline sales. CALCULATING POWER SELLER BONUSES: Power Seller bonuses are calculated for the total Personal Qualifying Volume accumulated over the course of the whole month and will be paid out in the commissions calculated at the end of the month. CALCULATING SPONSORING COMMISSIONS: Your mentor bonuses, promotion bonuses and Level 1-3 override bonuses will be calculated once a month at the end of each month.
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CANCELLING AS A BRAND REP
CANCELLATION As a Bona Clara Brand Rep, you need to have a minimum of $900 P-QV in a rolling 12-month period in order to continue keep your Team and continue a Brand Rep. If a Brand Rep leaves Bona Clara on your team or is unable to meet the $900 yearly P-QV, Brand Reps under her are moved up one level. In this example, a Brand Rep in your Level 1 leaves. The two Brand Reps that she has sponsored are now moved up from your Level 2 to your Level 1.
BEFORE
AFTER
YOU
YOU
LEVEL 1
LEVEL 1 CANCELED
LEVEL 2
REFUNDS We want all of our customers to love Bona Clara Products. Returns occasionally do happen. All returns are handled by the corporate office by calling 1-855-4BCLARA. You or your customers will have their refund credited back to the card originally used to purchase. In the event of a refund, commissions on returned products will be subtracted from your future earnings.
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