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Commission Specification Guidelines

Introduction

See the sections below for configuration steps in the Exigo Portal.

Table of contents

In this topic:

PURPOSE

Each company will need to develop their specification that outlines all of the rules associated with

their commission program. The information below describes the information needed in order for

Exigo to consider your specification complete and ready for programming.

ORGANIZATION OF INFORMATION

The specification document should contain a glossary of terms, followed by a description of the

member types involved, hierarchy organizations, pricing and points, rank descriptions, detailed

requirements and benefits for each compensation type and concludes with detailed information by

rank to explain the rank advancement requirements, rank maintenance requirements and a

summary of benefits.

GLOSSARY OF TERMS

Please identify all labels, status types, volume types, and programs that you will include in your

documentation. Examples are, definitions of Active, definition of Personal Volume, and definition of

Representative member type.

MEMBER TYPES

Please identify the different member types that will participate in your commission program either

as a source of volume (e.g., Retail Customer) or as an earner of commissions (e.g., Distributor).

For each member type, describe the rules that apply. Some rules to keep in mind:

•

Can this member receive any kind of compensation?

•

Can this member upgrade to another member type?

•

Can this member be included in any of the relationship trees? For example, Retail Customer

goes into the Enroller Tree, but not the Sponsor Tree.

•

Are there any membership renewal rules for this member?

•

Are there any status types that would disqualify the member from earning commissions or

advancing in rank? (e.g., Inactive, Terminated, Suspended)

COMPENSATION TYPES

Please list the names of each bonus as you would want them to appear on a commission statement.

For each bonus, please provide the following information:

•

Frequency of payout (e.g, weekly, monthly, quarterly, yearly)

•

Which relationship tree is used to determine the payout of the bonus?

•

Which member types are allowed to earn this bonus?

•

Are there earning caps for any bonus?

•

What triggers the bonus?

•

What does the bonus pay on? (e.g., volume type, pricing, points, shares)

EXAMPLE:

The following table lists how often Compensation is paid:

Compensation

Weekly

Monthly

Quarterly

Yearly

Type

Retail Profit

X

Quick Start

X

Builder Bonus

X

Unilevel Bonus

X

Team

Commission

X

Executive

Matching Bonus

X

Leadership

Bonus Pool

X

Retention

Bonus

X

Compensation is paid using the following organizations:

Compensation Type

Enroller

Placement Sponsor

Retail Profit

X

Quick Start

X

Builder Bonus

X

Unilevel Bonus

X

Team Commission

X

Executive Matching Bonus

X

Leadership Bonus Pool

X

Payment Method

Other rules relating to compensation:

•

When will the compensation be calculated after the close of the commission period?

•

When will commissions be paid after the acceptance of commissions? For example, commissions

for week ending Saturday, Feb 7 2009 would be paid on Friday, Feb 20 2009.

•

What currency will be used to pay commissions?

•

What are the payment methods to be used to payout commissions?

•

Are there minimum payment amounts (by payment method)?

•

Are there country restrictions on payment methods?

•

Are there any withholding rules for taxation deductions?

•

Are there accounting fees to be deducted from the earnings?

•

Are earnings capped? If so, describe by bonus or commission period.

EXAMPLE:

Country

Accounting Fee Amt

Minimum Payment

Amt*

Electronic

All Countries

USD $ 3.00

USD $ 20.00

Check

All Countries

USD $ 5.00

USD $ 25.00

*Earnings are accumulated and held until the minimum payment amount is reached.

HIERARCHAL ORGANIZATIONS

Describe the relationship organization trees you plan to use for your compensation plan (e.g.,

Enroller, Sponsor, Matrix, Binary)

For each relationship tree, provide the following rules for each member type that is stored in the

tree:

•

Which member types can have downline in this tree?

•

Are there depth restrictions for the downline?

•

Are there any special upline relationships for this tree?

•

Are there any width restrictions for this tree?

•

What is the structure of the tree (legs or levels)?

•

Is there any special terminology for how the occupied positions in the tree are regarded?

•

Is there any special terminology for how upline or downline members are regarded? (e.g., upline

sponsor or downline placement)

•

Is there any special terminology for how legs of the tree are regarded?

•

What are the placement rules for how new members are added to the downline in this tree?

PRICING AND VOLUME

Describe the different price types you plan to use for your products or services. Show which

member types are eligible to purchase for each price type.

Volume

Include the types of volume that you will assign to your products or services. (Be sure to include

your volume types in your glossary of terms). For each volume type, please provide the following:

•

Name to be shown on commission statement.

•

The bonus(es) that will use this volume type to calculate commissions.

•

The value of the volume type if multi-currency supported. List the country/currency specific

rules.

•

Any accumulations of the volume type that is used for qualification or calculation.

EXAMPLE:

The following is an example of the Pricing and Volume:

Price

Product

Currency

Wholesale

Pref Cust

Retail

BV

CV

Product 1

USA/USD

$65

$75

$80

Product 2

USA/USD

$130

$150

$160

Product 3

USA/USD

$250

$300

$320

Service A

USA/USD

$500

$600

$640

Service B

USA/USD

$1,000

$1,200

$1,280

1,000

1,000

The following table shows the Price Type paid by Member Type:

Member Type

Price Type

Retail Cust

Pref Cust

Distributor

Retail Price

X

Preferred Price

X

Wholesale Price

X

RANKS

List the names of the ranks in your compensation plan as you want them to appear on a

commission statement.

List any special rules for each rank. Here are some rules to consider:

•

Which commission period or frequency is used to promote rank?

•

Does the rank reset at the beginning of each commission period or frequency?

•

Are there any rank levels that can be purchased as part of a signup?

•

Can a member type advance more than one rank level in a given commission period?

•

Are there different rank levels used for Achieved Rank vs. Paid-As Rank?

•

Will a member’s achieved rank ever demote?

COMPENSATION TYPE QUALIFICATION AND BENEFITS

For each bonus,

•

Which member type can earn this bonus?

•

Which rank levels can earn this bonus?

•

What are the qualification requirements to earn this bonus?

o

Minimum volume amounts

o

Autoship requirements

o

Active status requirements

o

Personal enrollees required

o

Rank level requirements

o

Group volume from teams or legs

o

Generations paid

o

Any capping?

o

Any compression or rollup?

•

What are the benefits if bonus is earned?

o

Pays percentage of volume type

o

Pays difference between Retail price and other price types

o

Pays on BV of first order

o

Pays percentage of team or leg group volume

o

Pays percentage of another bonus (matching bonus)

o

Pays share or percentage participation in a bonus pool

•

If member not qualified to earn this bonus, does it pay to anyone else?

•

Are there any adjustments to the volume of an order if this bonus is paid before subsequent

bonuses are calculated?

•

Will the bonus be held and carried forward if any qualification rules are not met?

•

Are there any requirements from previous commission periods that need to be met in order to

earn this bonus? (e.g., maintain rank level for 2 consecutive months).

•

Is there compression? (streamlined or standard)

Note: For Binary plans, please address the rules for the following concepts:

o

Banking Volume

o

Carry Over Volume

o

Resetting (flushing) Volume

o

Cycles or Steps

RANK ADVANCEMENT

For each rank level, list the minimum requirements for advancement and maintenance, as well as

the benefits for each rank level.

Note: The requirements for advancement and maintenance may be the same, but you should

outline then separately just to be sure nothing is missed.

EXAMPLE:

Diamond (Rank-12):

Advancement Requirements These requirements must be met each week for four (4) consecutive

weeks

(i.e., 4 weeks = the current week and previous 3 weeks)

•

200 PV within the last 5-weeks

•

Have two (2) personally-enrolled Distributors that are Active and on Autoship

•

1,000,000 GBV in the Enrollment Tree

o

No more than 50,000 GBV from any single Enrollment Tree Leg

•

Seven (7) Enrollment Tree Legs with a Paid-As Rank of Silver (rank 5) or above

Maintenance Requirements

These requirements must be met in the current week:

•

200 PV within the last 5-weeks

•

Have two (2) personally-enrolled Distributors that are Active and on Autoship

•

1,000,000 GBV in the Enrollment Tree

o

No more than 50,000 OGBV from any single Enrollment Tree Leg

•

Seven (7) Enrollment Tree Legs with a Paid-As Rank of Silver (rank 5) or above

Benefits

•

Retail Profit

•

Quick Start

•

Builder Bonus

•

Unilevel Bonus

•

Team Commission

•

Executive Matching Bonus (0 to 7 Generations)

You should use version control on your document since there may be subsequent revisions or

changes.

Section 9

Your specification document will be used as the baseline for all future change requests and you will

be asked to keep this document up to date to reflect your current version of your commission

programming.