SalES COMPENSaTION PlaN - Nu Skin

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SalES COMPENSaTION PlaN NU SKIN IS ThE DIffERENCE. DEMONSTRaTED. BY PaRTNERING WITh YOU, WE CONTINUE TO DISTINGUISh OURSElVES aS ThE TRUE lEaDERS IN GlOBal COMPENSaTION.

Transcript of SalES COMPENSaTION PlaN - Nu Skin

SalESCOMPENSaTIONPlaNNUSKINISThEDIffERENCE.DEMONSTRaTED.BYPaRTNERINGWIThYOU,WECONTINUETODISTINGUIShOURSElVESaSThETRUElEaDERSINGlOBalCOMPENSaTION.

In order to qualify for any bonus, Distributors must meet all Active Requirements (see Glossary). All bonuses are paid only when products are sold. To view products available please refer to the product catalogue or visit our websites www.nuskin.com.au/www.nuskin.co.nz.

STEP

GettinG started

FAST-START PAYMENTS, RETAIL PROFITS, AND VOLUME COMMISSIONS earninGs Potential

As a Distributor there are 3 ways to get paid:

• Fast-Start Payments

• Up to 43% profit on Retail Customer purchases**

• 5% commission on L1 sales volume generated monthly

Note:CommissionsandsalesbonusesarepaidonlytoactiveDistributors.InordertobeanactiveDistributorandqualifyforanybonusundertheSalesCompensationPlan,youmustobtain100PSVandmakefiveretailsalespermonth.†lOIandaboveneedtohaveamonthlyaDRorder.

* Theonlyrequiredpurchasetobecomeadistributorisanot-for-profitBusinessPortfolio.allproductpurchasesareoptional.Therearenobonusespaidforrecruiting. All bonuses are paid only when products are sold.

** YouarefreetosetyourownresalepricestoRetailCustomers.Thepublishedpurchase price is only a suggested purchase price.

YOU

PRIVILEGED MEMBER

DISTRIBUTORDISTRIBUTOR

RETAIL CUSTOMER

See Glossary for explanation of terms. This brochure is an overview only. The most complete and updated details are available online by visiting any of our websites www.nuskin.com.au / www.nuskin.co.nz and clicking on Opportunity.

LEVEL 1 (L1)

RETAIL CUSTOMER

1STEP

leadershiP develoPment

FOUNDATION FOR YOUR FUTURE

BuildyourorganisationtobecomeanExecutiveleaderandsee your earnings multiply.‡

earninGs Potential

During Executive Qualification you can earn:

• Commissions from Step 1, PLUS

• Opportunity to participate in the Performance Bonus Pool

YOU

DISTRIBUTORDISTRIBUTOR

DISTRIBUTORDISTRIBUTOR DISTRIBUTOR

PRIVILEGED MEMBER

PRIVILEGED MEMBER

PRIVILEGED MEMBER

RETAIL CUSTOMER

how to Qualify as an eXecutive…MONTH 1 (LOI) MONTH 2 (Q1) MONTH 3 (Q2)

100 PSV* and 1,000 GSV# 100 PSV* and 1,500 GSV# 100 PSV* and 2,000 GSV#

9% 2,000-2,999 GSV

10% 3,000-4,999 GSV

11% 5,000-9,999 GSV

12% 10,000-14,999 GSV

13% 15,000-24,999 GSV

14% 25,000-49,999 GSV

15% 50,000-GSV

eXecutive bonus…aNDThENEaRN

earninGs Potential

As an Executive you can earn:

• The same as a Qualifying Executive, PLUS

• A monthly Executive Bonus (EB)† on your total GSV*

Note:Executivemaintenancerequirementsareaminimum100PSV,2,000GSV.ToqualifyforExecutiveBonusesamonthly50PVminimumaDRorderisalsorequired.

#GSVrepresentsthecumulativevolumeofallPSV,RetailCustomers,PrivilegedMembers,andDistributorsinyourCircleGroup.

upline title (you)DISTRIBUTOR MONTH 1 (LOI) MONTH 2 (Q1) MONTH 3 (Q2) EXECUTIVE PEXEC

DISTRIBUTOR * * * * * *

MONTH 1 (LOI) * * * * * *

MONTH 2 (Q1) * *

MONTH 3 (Q2) * *

EXECUTIVE

PEXEC

Whosesalesvolumecanyoucount?Thechart,atleft,explainshowyourdownline’svolumemaycounttowardyourGSVrequirement.

Earnpaymentswhenyousell fast-StartProductPackages

EXAMPLE ONE

•AU$489+ / NZ$577.50+ agelOCSpaBeautypackage* •250PV •AU/NZ$100 paid to the seller

EXAMPLE TWO

•AU$1,950+ / NZ$2,300+ agelOCBusinessinaBoxpackage* •1000PV •AU/NZ$400 paid to the seller

† 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.

2

+Pricessubjecttochange

*including 50PV minimum ADR

In order to qualify for any bonus, Distributors must meet all Active Requirements (see Glossary). All bonuses are paid only when products are sold. To view products available please refer to the product catalogue or visit our websites www.nuskin.com.au/www.nuskin.co.nz.

nu skin revolutionary wealth maXimizer

ENSURES THE MAXIMUM PAYOUT FOR YOU

EXTRA EXECUTIVE BONUS

MIN GSV BONUS %

3,000 5%

+

DOUBLE G1 BONUS (DBLG1)

MIN GSV BONUS %

3,000 10%

earn an extra 5% commission on your Gsv plus 10% commission on the Gsv of your

G1 breakaway executives

VOLUME MAXIMIZER: eXtra eXecutive + double G1

DEPtH MAXIMIZER: breakaway eXecutive bonus

wealth maXimizer MAXIMIZE YOUR BONUS POTENTIAL

bonus Payout eXamPle

increase your earning potential as an executive distributor when nu skin pays you the maximum commission possible.

3STEP

DEPTH MAXIMIZER

Generation 1 (G1) at 5% 600pts

Generation 2 (G2) at 5% 300pts

TOTALAU$1,080NZ$1,260

VOLUME MAXIMIZER

Extra Executive Bonus (EEB) at 5% 150pts

Double G1 (DBLG1) at 10% 1,200pts

TOTALAU$1,620NZ$1,890

TITLE GOLD LAPIS RUBY EMERALD DIAMOND BLUE DIAMOND

NUMBER OF G1 BREAKAWAY EXECUTIVES

1 2,3 4,5 6,7 8,9,10,11 12

1 5%5%

5%5%

5%5%

2

3

4

5

6

earn up to 5% commission on the Gsv of every breakaway executive in your organisation

EXECUTIVE 3,000 GSV

YOU 100 PSV, 3,000 GSV

RUBY EXECUTIVE

EXECUTIVE 3,000 GSV

EXECUTIVE 3,000 GSV

GOLD 3,000 GSV

GOLD 3,000 GSV

EXECUTIVE 3,000 GSV

G1

G2

or

earninGs Potential

With Wealth Maximizer earn:

• Commissions from Steps 1 and 2, PLUS

• The method that pays you the most from the Wealth Maximizer calculations

nu skin automatically maximises your commissions, every month, and pays you the calculation that earns you the most.

WEALTH MAXIMIZER

or

EXECUTIVE 3,000 GSV

YOU 100 PSV, 3,000 GSV

RUBY EXECUTIVE

EXECUTIVE 3,000 GSV

EXECUTIVE 3,000 GSV

GOLD 3,000 GSV

GOLD 3,000 GSV

EXECUTIVE 3,000 GSV

G1

G2

In order to qualify for any bonus, Distributors must meet all Active Requirements (see Glossary). All bonuses are paid only when products are sold. To view products available please refer to the product catalogue or visit our websites www.nuskin.com.au/www.nuskin.co.nz.

Psv Gsv title Paid as uPline Paid as

may 100 1900 GRaCE DISTRIBUTOR G1

June 100 800 PEXEC1 DISTRIBUTOR G1

July 100 800 PEXEC2 DISTRIBUTOR G1

auG 100 800 PEXEC3 DISTRIBUTOR G1

sePt 100 800 DISTRIBUTOR DISTRIBUTOR ROll-UP

Provisional eXecutive

anExecutivewhodoesnotmaintaintheirExecutivestatusanddoesnothaveagracemonthavailablewillbecomeaProvisionalExecutive.ProvisionalExecutivescountasExecutivesforgenealogypurposes,i.e.,theycountasaBreakawayExecutiveuntilsuchtimeastheybecomeaDEXEC.TheirGSVisnotincludedintheirupline’sGSV,andtheymaintaintheirownBreakawayExecutives.aDistributoraccountcanmaintainthetitleofProvisionalExecutiveforupto3consecutivemonths.Ifatanytimeduringthe3monthstheProvisionalExecutivemeetsExecutivemaintenancerequirements,he/shewillbeimmediatelypromotedtoandpaidasanExecutiveinthatsamemonth.IfanExecutive,whohasbeenaProvisionalExecutive,subsequentlyfailstomaintainExecutivestatus,he/shewillfallbacktoDistributoratthefirstofthenextmonth.ProvisionalExecutivestatusisavailableonceperExecutivequalification.ProvisionalExecutivescanonlyearnl1Bonusat

5%,providedtheycontinuetomeetactivityRequirements.ProvisionalExecutivescanstillearnfast-StartPaymentsandRetailProfits.

see eXamPle below:

Becarefulwhendeterminingwhichaccountsshouldusethefast-Trackoption.Volumefromafast-Trackingdownlinewillnotcounttowardsthefast-Trackrequirementsoftheupline.

ExecutiveQualificationfast-TrackisanautomatedoptionandwillbeautomaticallyprocessedthefirsttimethataDistributorachievestheminimumrequirementsforeithertheone-ortwo-monthfast-Trackoption.Thevolumefromafast-Trackingdownlinewillnotcounttowardsthefast-Trackrequirements of the upline.

eXecutive Qualification FASt-tRACK OPtIONS

eXamPle

ExecutiveQualificationfast-TrackisanoptioncreatedforthoseuniqueleaderswhowishtoacceleratetheirExecutiveQualification.Thisqualificationoptionrequiresachievingatleast4,500GroupSalesVolume(GSV)ineitheroneortwomonths,withthefinalmonthrequirementbeingatleastanunencumbered2,000GSV(pleasesee below for details).

1ONEMONThfaST-TRaCKTOEXECUTIVE

• Achieve 100 Personal Sales Volume (PSV) and 4,500 GSV in one month.note: IfsomeoneinyourdownlineiscompletingtheirExecutivequalificationthesamemonthasyoubyachieving4500GSV,youarealsorequiredtohaveatleast2000GSVinadditiontothevolume you receive from them.

2TWOMONThfaST-TRaCKTOEXECUTIVE

• Achieve a total of 4,500 GSV in two consecutive months – please be aware of the minimum month 1 & 2 requirements below. MONtH 1: Minimum100PSV+1000GSV

MONtH 2: Minimum100PSV (includingaminimum50PVaDR)+2000GSV

note:IfsomeoneinyourdownlineiscompletingtheirExecutivequalificationthesamemonthasyoubyachieving4500GSV,youarealsorequiredtohaveatleast2000GSVinadditiontothevolume you receive from them.

distributor month 1 month 2

a 4600GSV (volumecomesfromB)+100PSV

Q1

B sponsored by

A

4500GSV (volumecomesfromC) +100PSV

Q1

C sponsored by

B

4500GSV

Enters1MonthfastTrack

Executive

Month1Distributora&BwillnotautomaticallyfastTrackastheyneed2000GSVseparatefromthe4500GSVtheyreceivedfromtheirdownline(B+C)

Inmonth2,DistributorCbreaksasanExecutiveasthey passed qualification

Inmonth2,Distributorsa&BenterQ1astheydidnothavetheminimum2000GSVneededtocounttheir fast tracking downlines volumes.

In order to qualify for any bonus, Distributors must meet all Active Requirements (see Glossary). All bonuses are paid only when products are sold. To view products available please refer to the product catalogue or visit our websites www.nuskin.com.au/www.nuskin.co.nz.

EXCLUSIONS• ExistingExecutiveswhoarePEXECandsubsequentlycompletePEXECrequirementswillnotbecountedasnewExecutivesforpurpose

ofcountingtowardsthetotalnumberofnewExecutives.

• InordertobepaidtheGoDoubleChallengeBonuses,allChallengersmustmaintainExecutiverequirementsuntilthemonththebonuses are paid.

Please visit www.nuskin.co.nz under the tab ‘oPPortunity’ for additional terms and conditions.

SPECIAL incentives – valid from 1st June to 31st december 2012

EachNEWExecutivethatreaches3000GSVwill receiveaNewExecutiveBonuseachmonththattheymaintain3000GSVforupto4months-totalling NZ$1250asfollows:

month 1 BecomeaNEW Executive and reach 3000GSV in your first month and get a NZ$250Bonus*

month 2 Maintain 3000GSV in your second month and get a NZ$250Bonus*

month 3 Maintain 3000GSV in your third month and get a NZ$250Bonus*

month 4 Maintain 3000GSV in your fourth month and get a NZ$500Bonus*

PaCIfIC GO DOUbLE ChallENGEThePacificGoDoubleChallengerewardspaidasRubyandaboveExecutiveswhocreate20newExecutivesontheirG1 toG6organisation,eachreaching3000GSVintheirfirstmonth,between1stJuneand31stDecember2012.TheRubyExecutivewillreceiveaUS$7,000bonusforevery20newqualifyingExecutivescreated.

EXCLUSIONS• Executivesthatfallbelow3000GSVatanytimeduringtheirfirstfourmonthsasanewExecutivewillbeineligibletoreceivebonusfor

the remaining months. • Executivescannottakeagraceduringthefourmonthqualificationtimeframe• Re-promotedExecutivesfromPEXECandRe-entryExecutivetrackwillnotbecountedasnewExecutives.• NonPacificExecutiveswillnotcount.Please visit www.nuskin.co.nz under the tab ‘oPPortunity’ for additional terms and conditions.

Qualification criteria

• ThequalificationperiodfornewExecutivestoparticipatebeginswithJune2012volumesandwillendwithDecember2012volumes.

• NewExecutiveswithanExecDateofDecember2012can qualifytoparticipateintheincentivethroughMarch2013volumes.

• OnlynewExecutivesfrommarketswithinthePacificRegion will participate in the incentive.

• Inordertoqualifyforpayment,accountsmustbeactive (100PV,including50PVaDR),andhaveminimum of3000GSV.

• NewExecutivesmustmaintain3000GSVconsecutivelyfor thefirstfourmonthsofExecutiveshipinordertoreceivethenewincentive for each of the four months.

• Previouslyfall-outExecutiveswhohavesubmittedandcompletednewlOIandExecutiveQualificationwillbeeligibletoparticipate.

Qualification criteria

• OpentoallpaidasRubyExecutivesandabovefromanymarketsfromthePacificRegion (australia,NewZealand,frenchPolynesia,NewCaledonia)

• allqualifiersmustbepaidasRubyoraboveforanyfour(4)monthswithinthe7monthqualificationperiodfromJune2012to December2012.

• ExecutivescreatedmustbeNEWandreach3000GSVintheirfirstmonthofExecutivetitle. (forexampleanewExecutivetitledJuly1st,musthave3000GSVinJulytocountinthePacificGoDoubleChallenge)

• allnewExecutivescreatedmustnothavebeenapreviousExecutivewithinJune1sttoDecember31st2012.IfafallenExecutive(pre-June2012)completeslOIandExecutivequalificationagain,theywillcount.

• allNewExecutivescreatedmustcomefromanyofthePacificmarkets.• IfanUplineExecutiveisalsoqualifyingforthe“GoDoubleChallenge”,he/shecanonlycountamaximumof5Executiveswithinhis

G1-G6createdfromeachlineofanotherdownlineExecutiveifthedownlineisalsoqualifyingChallenger.

PaCIfIC NEW EXECUtIVE BONUS

*Paidintothatmonthscommissions.

Sydney Head Office and Distributor Support CentreUnit2/2EdenParkDrive,NorthRyde,NSW,2113,australiaPhone:(612)94910900fax:(612)94910907www.nuskin.com.au Product ordering Phone: 1300NUSKIN/1300687546Product ordering fax: 1300aDRfaX/1300237329

©2012 nu skin enterprises australia & new zealand, inc. incorporated with limited liability in utah, usa abn 90 057 203 531

Glossary

SalESCOMPENSaTIONPlaN

nz 16000080 07/12

Auckland Head Office and Distributor CentrePOBox107145,aucklandairport,Manukau,2150,NewZealandPhone: (649)2544180fax:(649)2544181www.nuskin.co.nzProduct ordering Phone:0800NUSKIN/0800687546Product ordering fax:0800aDRfaX/0800237329

Active Requirement:InordertoqualifyforanybonusundertheSalesCompensationPlan,obtain100PSVandmakefiveretailsalespermonth.† lOIandabovealsoneedtohaveamonthlyaDRorder.‡ADR: Automatic Delivery Rewards is a program that offers the convenience of monthly automatic deliveryofNuSkin,Pharmanex,andsomeBigPlanetproductswiththeopportunitytoearnrewards points.breakaway Executive:aDistributorwhohascompletedExecutiveQualificationand“brokenaway”fromtheirupline,meaningthatthesalesvolumeofthenewExecutiveandtheircirclegroupnolongercounttowardtheirupline’sGSV.Whenthiseventoccurs,theuplineExecutivecanqualifytoreceivetheBreakawayBonusontheGSVoftheirnewBreakawayExecutive.IfadownlineDistributorsubmitstheirlOIbeforeyoudo,youmayreclaimthemasabreakawayexecutivebypassingyourlOIinorbeforetheirlastmonthofqualification.breakaway Executive bonus: a bonus that offers up to 5% earnings on the sales volume of each generationlevelbasedonthetotalnumberofG1BreakawayExecutives(seechartonStep3).Toreceivea5%BreakawayExecutiveBonus,anExecutivemusthaveatleast3,000GSV.IftheGSVfallsbetween2,000and2,999,thentheBreakawayExecutiveBonuswillbepaidat2.5%ontheG1toG6BreakawayExecutives’GSVforthatmonth.Circle Group:fornon-Executives,acirclegroupconsistsofallRetailCustomers,PrivilegedMembersandDistributors.forExecutives,acirclegroupincludesallRetailCustomers,PrivilegedMembers,DistributorsandQualifyingExecutives.Company:NuSkinInternational,affiliatedCompanies,andNuSkinPersonalCare,PharmanexandBigPlanet.DbLG1: Double G1 bonusisabonusthatoffers10%earningsonthetotalGSVofG1Executives.Toreceivea10%DoubleG1Bonus,anExecutivemusthaveatleast3,000GSV.ThisbonusisonlypaidinaccordancewiththeVolumeMaximizercalculationifitcontributestothehigher payout of the two alternatives.DEXEC: Demoting ExecutiveisanExecutivewhohasfailedtomaintainExecutiverequirementsand is in the process of being demoted back to Distributor. This usually occurs at the conclusion of ProvisionalExecutive(PEXEC)status.Distributor:apersonengagedinthegeneraldistributionofNuSkinproductsorservices.Theonlyrequiredpurchasetobecomeadistributorisanot-for-profitBusinessPortfolio.allproductpurchases are optional.Eb: Executive bonusisabonusearnedmonthlyonyourtotalGSV.ExecutiveBonusesrangefrom9%to15%dependingontotalGSV,andtheExtraExecutiveBonus(seechartinStep2).ToqualifyforExecutiveBonusaqualifyingaDRorderisrequired.EEb: Extra Executive bonusisabonusthatoffersanadditional5%earningsonyourGSV.Toreceivethisextra5%ExtraExecutiveBonus,anExecutivemusthaveatleast3,000GSV(seechartonStep3).ThisbonusisonlypaidinaccordancewiththeVolumeMaximizercalculationifitcontributes to the higher payout of the two alternatives. Executive:aDistributorwhohascompletedtheformalqualificationprocessoutlinedinthisSalesCompensationPlantobecomeanExecutive.ExecutivesbreakawayfromtheirSponsor’sgroupandtheirvolumedoesnotcounttowardstheirSponsor’svolumetotalsormaintenancerequirementsbuttheSponsorcontinuestoreceiveBreakawayBonusesonthegroupasdefinedinthisSalesCompensationPlan.Executive Maintenance Requirements:100PSV(includeminimum50PVaDR),2,000GSV.Executive Re-entry:TheprocessbywhichfallenExecutivescompletethequalificationprocessagainandregainExecutivestatus.IfanaccountwhowasonceanExecutivegoesthroughqualificationandpassestoExecutivewithin6monthsoffallingtoDistributor,theywillrecapturetheirformerBreakawayorganisation.Whileanaccountcangothroughqualificationasmanytimesastheylike,theoptiontorecaptureone’sBreakawayorganisationisonlyavailableduringthesixmonthsafterfallingtoDistributor.ExecutiveRe-entryisonlyavailableonceperExecutiveship.Fast-Start Payment:Thefast-StartPaymentisearnedbysellingcorporatelyapprovedfast-StartProductPackages.Fast-Start Product Packages: Is a package containing products which when purchased will generateafast-StartPaymenttothereferringsponsorG1: Generation 1referstoyourfirst“generation”ofBreakawayExecutives.GRP: Gross Retail Profit is the amount earned by purchasing products at wholesale price and re-sellingatretail.Itisearnedbysellingproducttoretailcustomersatthesuggestedretailpriceorat any price you choose to set for products.GSV: Group Sales VolumerepresentsthetotalPSVinyourCircleGroup,includingyourownPSV,foragivencalendarmonth.LOI: Letter of IntentisalettershowingaDistributor’sintentiontobecomeanExecutive.aDistributorwillautomaticallybeputintoExecutivequalificationoncetheymeettherequirementsforMonth1(referredtoasthelOIMonth).DuringtheirfirstmonthofExecutiveQualification,aDistributorisoftenreferredtoasan“lOI.”anlOIisnotthesameasaQualifyingExecutive(QEXEC),althoughbothareinqualificationtobecomeanExecutive.IfaDistributorhasbeenaQualifyingExecutiveinthepastandwishestoenterExecutiveQualificationagain,theDistributormustsubmitaformallOItotheCompany.L1: Level 1 includes personally sponsored accounts, regardless of title.Level 1 (L1) bonus:a5%bonuspaidbasedonthePSVofallpersonallysponsoredaccounts.l1BonusispaidonlytoDistributorsthatfulfiltheactiveRequirement.Pacific Go Double Challenge:PacificRubyandaboveleaderscanparticipateinthePacificGoDoublechallengebyhelpingbuild20newExecutivesthatreach3000GSVintheirfirstmonthintherubyandaboveleadersG1-G6organisationthatarecreatedbetweenJune1st2012-31stDecember2012.OpentoallpaidasRubyExecutivesandabovefromanymarketsfromthePacificRegion(australia,NewZealand,frenchPolynesia,NewCaledonia).ThePacificGoDoublechallengeisatemporaryincentiveandnotconsideredapartoftheSalesCompensationPlan,andmaybemodifiedordiscontinuedwith30daysnoticefromNuSkin.Completedetailsareavailableonlinebygoingtoanyofourwebsitesandlogginginto“MyOffice”.

Pacific New Executive bonus: foreverynewExecutivethatachieves3000GSVintheirfirstthreemonthswebeentitledtoearn$200everymonthandonthefourthmonththenewExecutivereaches3000GSVthebonuswilldoubleandtheywillbeentitledtoearn$400.ThePacificNewExecutiveBonusisatemporaryincentiveandnotconsideredapartoftheSalesCompensationPlan,andmaybemodifiedordiscontinuedwith30daysnoticefromNuSkin.Completedetailsareavailableonlinebygoingtoanyofourwebsitesandlogginginto“MyOffice”.Pin title Grace Month:IfanExecutivefailstomeetExecutivemaintenancerequirements,theymaytakeagracemonthandmaintaintheirExecutivestatus.EachExecutiveisentitledtoonegracemonthper12-monthrollingcalendarperiod.forexample,ifyouuseagracemonthinMay,thenexttimeyoucantakeoneisMayofthefollowingyear.Executivebonuseswillnotbepaidduringagracemonth.anExecutivemayearnthel1bonusduringagracemonthiftheymeettheminimum active requirements.PSV: Personal Sales VolumeisthemonthlyPointValueoftheproductsandservicesyoupurchasefromtheCompanyprimarilyforretailsaleorpersonalconsumption.¥PSVincludespoints from purchases made directly from the company by your personal retail customers.Privileged Member:aPrivilegedMemberisanon-Distributorwhoqualifiesforproductpurchasesatwholesaleprices.aPrivilegedmembermustcompletetheregistrationprocesstoreceivewholesalepricingandtheyareplacedonthefirstleveloftheDistributorSponsor.Distributorsarepaidthel1BonusonpersonallysponsoredPrivilegedMemberpurchases.PEXEC: Provisional ExecutiveisanExecutivewhohasnotmetExecutivemaintenancerequirementsandhasalreadyusedtheirgracemonth.aProvisionalExecutivekeepsalloftheirownBreakawaysinadditiontocountingasaBreakawayExecutivetotheirupline.aPEXEC’sGSVisnotincludedintheirupline’sGSV.anaccountmaybeaPEXECforuptothreeconsecutivemonths. IfaPEXECmeetsExecutivemaintenancerequirements,theywillbeimmediatelypromotedtoanExecutiveinthemonththattheymeetExecutivemaintenancerequirements.ProvisionalExecutiveisonlyavailableonceperExecutiveship.Duringanaccount’sProvisionalExecutiveStatus,theaccount is not allowed to be involved in a merge, termination, or any type of sponsor change. ThosewhofallfromExecutivetoDistributorandqualifyasanExecutiveagain,atalaterdate,mustwaitatleast12monthssincethecompletionofthemostrecentProvisionalExecutivecyclebeforeusingitagain.IfafallenExecutiveusestheExecutiveRe-Entryoption(seeExecutiveRe-Entryfordetails)toretaintheirpreviousExecutiveship,theyarenoteligibletoreuseProvisionalExecutivestatus. forcompletedetailsregardingPEXECusagepleaseloginto“MyOffice”.QEXEC: Qualifying Executive is a Distributor who has successfully passed their first month of Executivequalification(calledanlOImonth)andisnowfullyontracktoqualifyingasanExecutivedistributorforNuSkin(seechartinStep2formonthlyrequirementdetails).Retail Customer:aRetailCustomerisanon-DistributorwhopurchasesproductsatretailpricefromaDistributororfromtheCompany.Volumefromproductpurchasesmadethroughthecompany by retail customers assigned to a Distributor account are counted towards the sponsor’s PSV.†Retail Profit:pleaserefertoGrossRetailProfit(GRP)definition.Roll-up Distributors and Privileged Members: This occurs when the original sponsor either terminates or becomes inactive.Roll-up Executive:anExecutivethatusedtobeonyoursecondbreakawaygeneration(G2),butbecausetheiruplineExecutivefailedtomaintaintheirExecutivestatus,isnowafirst-generationBreakaway(G1)Executivetoyou.Roll-up breakaway Executive:aBreakawayExecutiveinyourG1-G6who,becausetheiruplineExecutivefailstomaintaintheirExecutivestatus,rollsuptothenexteligibleuplineExecutive.TorecaptureaBreakawayExecutive,theuplineExecutivequalificationdatemustbeonorbeforetheroll-upBreakaway’sExecutive’sdates.Roll-up GSV:Whenafirst-level(G1)BreakawayExecutivefallstoDistributor,theGSVofthatfallenBreakawayExecutiverolls-upintotheirupline’sGSV.Theportionofone’sGSVthatcomesfromfallenBreakawayExecutivesiscalled“roll-upGSV.”Thisonlyappliestoupline’swhohaveBreakawayExecutivesinmarketsthatdonotparticipateinthePEXECprogram.Executivescannotcountroll-upGSVtowardsExecutiveMaintenance.†Sponsor: A Distributorship under which another Distributorship is originally placed after it has applied to become a Distributor.Wealth Maximizer:abonuscalculatingcomponentoftheSalesCompensationPlanthatwillautomaticallypaythehigheroftwoalternatebonuscalculations:VolumeMaximizer(includingExtraExecutiveBonus+DoubleG1Bonus)ORDepthMaximizer(includingBreakawayExecutiveBonus).† Qualificationforallbonusesrequiresretailsalestoatleastfiveindividualsonamonthlybasis.Youmustkeepallrecords

ofretailsalesforatleastfouryears.CompliancewiththeretailsalesrequirementsoftheCompanyisrandomlymoni-tored.EachproductpurchasedthroughaDRordersbynon-DistributorsorCustomersisautomaticallycountedonamonthlybasistowardretailsalesrequirements.Bonusesareneverpaidforrecruiting.Theonlywaytoearnbonusesisthrough the sale of products.

All bonuses are calculated on a monthly basis and deposited on or about the 21st of the following month. ††InordertoqualifyforthePerformanceBonusPool,aQualifyingExecutivemustmeettheminimumbonusandsales

criteriaineffectattheendofeachcommissionperiodassetforthbytheCompanyandfulfiltheotheractiveRequire-mentsoftheSalesCompensationPlan.Completedetailsareavailableonlinebyvisitinganyofourwebsites(www.nuskin.com.au/www.nuskin.co.nz)andlogginginto“MyOffice”orcontactthecompanybytelephoneat0294910900(Australia) or 092544188(NewZealand).

¥ 80%ofPSVmustbesoldorconsumedpriortoyournextorder.