MARKETING PLAN

Marketing Plan – definitions   

  Registered Customer, Customer – a person who signed up on the Company's website, has a unique registration number and the right to purchase products at a 20% discount on catalogue prices for orders up to 70 euros, 25% discount for orders above 70 euros, and 30% discount for orders above 145 euros.

A Registered Customer is removed from the Company's database after 10 inactive billing cycles (when no purchases are made).

Catalogue Price – the current product price expressed in the currency of the country including VAT specified in the catalogue determined within a single billing cycle.

Registered Customer Price – the current product price expressed in the currency of the country with VAT following a discount of 20, 25, or 30% depending on the order value.

Directora Registered Customer who met the criteria to be classified as a Director: PGV from 5000 euros / PV from 25 euros.

17% Director's Basket - a group of direct Directors Mentor whose PGV is less than €2,500.

Registration Number – a unique number assigned to a Registered Customer during registration with the Company.

Billing Cycle – a 21-day period when specific special offers and catalogue discounts apply and a period when the Marketing Plan conditions are pursued.

Marketing Plan – a document containing terms and conditions of collaboration with the Company, i.e. specifying targets, statuses, conditions of achieving them, remunerations, bonuses, etc.

Personal Group (PG) – Registered Customers who were acquired and registered personally by the Customers and Personal Groups of Registered Customers, Director's Groups excluded.

Director's Group (DG) – a Personal Group (PG) of a Director.

Euro (Є) – the currency used to measure the product sales turnover. The euro exchange rates for currencies of individual countries are set by the Company at a rate close to the official rate.

Sales Volume (SV) – the turnover for product purchases in a given billing cycle in EURO and local currency at Registered Customer Prices.

Personal Volume (PV) – the sum of a Registered Customer personal orders in a given billing cycle in EURO and local currency. The minimum amount of Personal Volume for all MP participants is 25 EURO. In case the predefined condition is not reached at the end of the billing cycle, the MP remuneration will be held back by the Company and will not be paid.

Personal Group's Volume (PGV) – the sum of Personal Volumes of all Registered Customers in a Personal Group and your Personal Volume (PV) in a given billing cycle in  EURO and local currency.

Group Volume (GV) – the sum of Personal Volumes of all Registered Customers in the structure, including the PGV of Director's Groups and your Personal Volume (PV) in a given billing cycle.

Qualification – the fact that a Registered Customer meets conditions of the Director status or higher.

Open Qualification – the fact that a Registered Customer meets conditions of the Director status or higher for the first time.

Closed Qualification – the fact that a Registered Customer meets conditions of the Director status or higher for 6 billing cycles out of 12.

          The status of Director and above is assigned for 12 periods. 

If a Director (or higher) has not confirmed his/her status for the last 12 periods, he/she loses the privileges of his/her status (gifts for holidays, participation in programmes, ratings and events for Directors, etc.) 

In order to renew the status, it is necessary to fulfil the conditions of the MP for the lost status at least once. After that, the status will be assigned again for 12 periods.

Remuneration – a payout of an amount depending on the Sales Volume (SV) of your Personal Group and your Personal Volume.

 

The algorithm for calculating the remuneration

 

A Director's remuneration is the sum of the following components:

  1. Remuneration for the Personal Group (PG) turnover;
  2. Director's bonuses (remuneration for Director's Group's (DG) purchase turnover)
  3. Qualification bonuses (bonuses for new statuses);
  4. Parental bonus.

 

1.       The method for calculating Personal Group (PG) Sales Volume remuneration

The remuneration is calculated depending on the extent to which the conditions in Table 1 are met. The percent of accrual increases as the PGV increases.

Table 1. Conditions for remuneration payment

Tier

PV (euro)

PGV (euro)

Remuneration payout percentage

  1. Customer

 

below 100

0

  1. Consultant

25

100 and more

2%

  1. Advisor

250 and more

4%

  1. Senior Advisor

500 and more

6%

  1. Leader

1,000 and more

8%

  1. Senior Leader

1,500 and more

10%

  1. Partner

2,000 and more

12%

  1. Vice Director

3,000 and more

14%

  1. Director

         5,000 and more

17%

 

Table 2 Calculating payout percentage depending on the tier

Tier

Payout percentage

PGV (euro)

Percentage differences between your remuneration and that of your Customer

Director

17%

5,000 and more

 

Vice Director

14%

3,000 and more

 

3%

Partner

12%

2,000 and more

 

2%

5%

Senior Leader

10%

1,500 and more

 

2%

4%

7%

Leader

8%

1,000 and more

 

2%

4%

6%

9%

Senior Advisor

6%

500 and more

 

2%

4%

6%

8%

11%

Advisor

4%

250 and more

 

2%

4%

6%

8%

10%

13%

Consultant

2%

100 and more

 

2%

4%

6%

8%

10%

12%

15%

Customer

0%

below 100

2%

4%

6%

8%

10%

12%

14%

17%

 

 

Example: A Senior Leader achieves a 1 600 euros sales volume at Registered Customer Prices.
Their structure includes:

        2 Consultants – 2% with a Sales Volume of 240 euros.

        1 Advisor – 4% with a Sales Volume of 360 euros.

        Customers with a Sales Volume of 1,000 euros.

 

Calculation of the Senior Leader's remuneration:

        240 euros х (10% - 2%) =240 euros. х 8% = 19.2 euros – the Senior Leader's remuneration for Consultants 2%

        360 euros х (10% - 4%) = 360 euros х 6% = 21.6 euros – the Senior Leader's remuneration for the Advisor 4%

        1,000 euros х 10% = 100 euros – the Senior Leader's remuneration for Customers

        19.2 euros. + 21.6 euros + 100 euros = 140.8 euros — the total remuneration of the Senior Leader

 

Your remuneration is the difference between the payout percentage for your tier and the tier of your Customers of Personal Group.

 

 

2.       Director's Bonuses

 

A Registered Customer who created Director's Groups 17% is granted a Director's Bonus for their PGV. When a Registered Customer PG includes Director's Groups 17%, they are granted a symbolic title of ‘Director’ for one year after they meet the qualification conditions for the status.

 

Table 3. Conditions for Director's Bonuses

Status

Number of Director's

Groups

PGV (euro)

Line payments

 

1

2

3

4

5

Director

0

5,000

 

 

 

 

 

Senior Director

1

2,500 

5%

 

 

 

 

Structural Director

2

2,500

5%

1%

 

 

 

Business Director

3

2,500

5%

1%

0.5%

 

 

Senior Business Director

4

2,500

5%

1%

0.5%

0.25%

 

Elite Director

6

2,500

5%

1%

0.5%

0.25%

0.125%

National Director

9

2,500

5%

1.5%

0.75%

0.35%

0.125%

Senior National Director

12

2,500

5%

1.5%

0,75%

0.35%

0.175%

International Director

15

2,500

5%

1.5%

0.75%

0.35%

0.175%

Senior International Director

18

2,500

5%

2%

1%

0.5%

0.175%

Managing Director

22

2,500

5%

2%

1%

0.5%

0.175%

Senior Managing Director

26, including 5 Elite

2,500

5%

2.5%

1.5%

0,75%

0.225%

Director General

30, including 10 Elite

2,500

5%

2.5%

1.5%

0,75%

0.225%

 

Whether or not a Director is granted any status within the hierarchy outlined above depends on the number of Director's Groups in their structure. Note that these Director's Groups should be led by First Line Directors. The First Line means that there are no other director's groups between Directors higher and lower in the hierarchy. The number of other (non-First Line) Director's Groups does not affect the Director's status in the hierarchy, but it does influence their remuneration (Director's Bonus). The Director's Bonus is granted depending on the status in the Director hierarchy. The bonus is calculated based on the PGV of your Director's Groups. The precondition for the bonus is the value of the Director's PGV. It must reach a turnover of 2,500 euro regardless of the Director's position in the hierarchy. The method for determining the status in the hierarchy of Directors, principles of calculating the Director's Bonuses, and their amount are shown in Table 3.

In the case where a Director does not reach the 5,000/2,500 euros. PGV at the end of the billing cycle, his Personal Group Volume shall be transferred to the higher status Director PGV.  In such billing cycle, his First Line Director Groups become the First Line Director Groups of the higher status Director.

If the direct Mentor of a Director group has an PGV of less than €2,500, such group becomes a Director basket with 17%. The Director basket is extracted from the PGV of the higher level Director together with all its 1st line Director groups. Such a Mentor receives 17% from his PGV, but is not a Director and cannot claim bonuses.

For a higher level Director, if a Director group (basket) is created in his/her 1st line - no matter how many Director groups this Leader has (more than 1) - such group will always count as 1st line Director group.

 

3.       Qualification Bonuses

 

             Qualification bonuses are calculated at the Director's level once after the Director hierarchy status is achieved. The amount of the qualification bonus depends on the Director's status. Three conditions have to be met simultaneously. They are:

        achievement of the status of a Director and a specific status in the hierarchy of Directors,

        preservation of the Director status for six out of twelve billing cycles (starting with the billing cycle when the status or hierarchy status was achieved),

        PV of 25 euros and PGV of at least 2,500 euros.

 

 

Table 4. The amount of the qualification bonus

Status

Number of DGs

Qualification bonus

 in euro

Director

0

1,000 

Senior Director*

0/1*

500

Structural Director

2

2,000

Business Director

3

3,000

Senior Business Director

4

4,000

Elite Director

6

6,000

National Director

9

10,000

Senior National Director

12

15,000

International Director

15

20,000

Senior International Director

18

30,000

Managing Director

22

50,000

Senior Managing Director

26, including 5 Elite

100,000

Director General

30, including 10 Elite

 500,000

 

*The qualification bonus is paid out in 2 stages:

1. a Director who achieved PGV of 6 200 euro and maintained the turnover for 3 billing cycles out of 6, counting from the first achievement of a certain sales volume, gets a payout - 250 euro.

2. After receiving the first payout, when achieving an PGV of 7 500 euro.  (if 1 First Line Director is acquired, the PGV must be from 2 500 euro) and has maintained it for three periods out of six, counting from the first achievement of a certain volume of sales - the Director gets a second payout of 250 euro. A Director who has received both payments is granted the title of Senior Director.

** In the case where a Director Group(s) appears in the structure due to the deletion of a First Line Director's registration number, the Qualification Bonus will not be paid for the titles gained as a result of this situation. A further Qualification Bonus will be paid when the next Title will be achieved.

 

4.       Parental bonus

The bonus is paid out if a Consultant collaborating with the company becomes a parent or a foster parent. A relevant application may be submitted from the Vice Director status (14%) maintained for at least 6 cycles of the recent year.

The bonus amount is 40 euros. The bonus is paid out in each billing cycle during one year, if a child comes into the family. For the second and next children - a bonus of 50 euros for each billing cycle.

The payout is made for a born or adopted child in each billing cycle for one year following the birth or adoption. The Personal Volume for each cycle of the year should also be 25 euros. The bonus is granted to Customers registered with the Company under a ‘Family Contract’.

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