The LifeVantage compensation plan

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Welcome to the Own Your Family.
 
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Hi, my name is Dave Fleming. I’m the Senior Vice President of Field Development for LifeVantage and for the next few minutes I want to introduce to you the LifeVantage Compensation Plan. Now LifeVantage has a fantastic compensation plan that’s very rewarding, but there are few a things that I can introduce you to that’s going to help you understand it a little bit better. As with anything new, when you’re learning something for the first time, sometimes there are terms or definitions that you need to know in order to understand the rest of the plan or the rest of the topic more thoroughly. The first few terms that I want to share with you have something to do with what we call volume. Now when we talk about volume, what we’re really talking about is sales, but we use different terms in order to help define more carefully exactly what sales means and in what context. The first term that you need to know is called PV or personal volume. Personal volume is very simply the volume that you personally order. Every product that LifeVantage sells has a volume assigned to it. Your personal volume is simply that. It’s the volume that you personally purchase.
 
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we also count personal volume as the volume your personal customers order.
 
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your personal volume each month is a total of what you personally purchase as well as what your personal customers purchase as well. That’s PV. The second term that I want to introduce you to is called commissionable volume or CV. Now commissionable volume is really simple. It’s the volume that each product has assigned to it and that’s the volume that we determine commissions paid on every single product. For example, every bottle of ProTandem has a CV or commissionable volume assigned to it of 40 points. As we determine what bonuses and commissions are paid on every product sale, we look at the commissionable volume to determine that commission that’s paid. CV very simply is the volume that we determine every commission and every bonus that we pay.
 
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third term is organizational volume and that very simply put is all of the commissionable volume that happens in your entire organization. So every customer, every distributor, everybody on your team who orders has an order volume assigned and that contributes to a total organizational volume. So all of your commissionable volume from all of your customers and all of your distributors forms your organizational volume.
 
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as we go further into the introduction of this compensation plan, there are a few more terms I’ll introduce you to, but for now that’s what you need to know. So let’s get started with some of the more important information.
 
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you grow your LifeVantage business, you’ll reach different ranks. Now LifeVantage has several different ranks in our compensation plan and each of those ranks has different requirements in order to reach those ranks.
 
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start at Pro 1 and we go all the way through Presidential Master.
 
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the way, your organizational volume or OV and also your legs will contribute to qualifying for these different ranks. Every single rank at LifeVantage does have an organizational volume requirement, which means your total team volume, your organizational volume, has to be at least a certain amount to achieve that certain rank. And I’ll give you a few examples to help you understand how this works. But there’s also a second requirement which is a leg qualification. Now what we talk about at LifeVantage is each leg is part of your team. So for example, if I introduce a distributor to my team and that distributor starts building a business, that’s one leg on my team. The next distributor that I introduce to the business can be a separate leg and I can have as many legs as I need on my business. There’s no limit and there’s no restriction.
 
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rank requirement does not only require an organizational volume, but also a leg requirement. I’ll give you an example how this works. It’s pretty simple once you get used to it, but in order to help you get used to it and understand this concept a little bit more easily, I’ll start with a very common rank which is our Premier Pro 5 rank. At Pro 5, you need 20 ,000 points of organizational volume and you need three legs on your team. One of the nuances of leg volume and leg requirements is that you can’t have any more than 60 % of your volume from your largest leg and you have to have at least 10 % of your volume from your smallest leg. So at Pro 5, you need 20 ,000 points of volume. Let’s do some simple math. No more than 60 % or 12 ,000 points can come from your largest leg and you have to have at least 10 % or 2 ,000 points of organizational volume from your smallest leg.
 
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Now in order to help you qualify a little more easily, what LifeVantage does is that we combine all of your small legs together. So you’ll have a large leg, no more than 60 % allowed from that leg towards your organizational volume requirement. You’ll have a second leg and then everything else falls into your smallest leg. So a combination of your third, fourth, fifth, sixth, etc. all of that counts towards your smaller leg and that needs to make up at least 10 % of your organization. So going back to our Pro 5 example, your largest leg, let’s say you have 10 ,000 points in that leg. You still need 10 ,000 points of organizational volume. So in your second leg, let’s say you have 5 ,000 points. Now you have 15 ,000 points of organizational volume and two legs and let’s say your third, fourth, fifth, sixth, etc.
 
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all of those legs total 5 ,000 points. That gives you a total of 20 ,000 points of organizational volume and three legs where no more than 60 % of your volume came from your largest leg and at least 10 % of your volume came from your third, fourth, fifth, sixth, etc. to form that small leg requirement. That’s how leg requirements work. That’s how organizational volume requirements work. Now as we go through the compensation plan and you reach higher ranks, you’ll see that those rank requirements change. At Pro 7, you need 100 ,000 points of organizational volume. At Pro 10, you need a million points of volume in your organization every single month.
 
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let’s start talking about some of the specific bonuses and commissions that you can earn through the Life Vantage Compensation Plan. Remember, we talked about personal volume. You’ll want to maintain at least 200 points of PV every single month to maximize all of your bonuses and commissions. The first bonus that applies to is called our Smart Start bonus. You can earn 40 % commission based on the commissionable volume every single first order that you help somebody place. That includes first -time customers, first -time subscription customers, and even first -time distributors on the products they place on their initial order. The difference between earning 40%, which is the most you can earn on your Smart Start bonus, and 30 % is your personal volume. If you have at least 200 points of personal volume every single month, you’ll earn 40 % Smart Start bonus. If you have less than 200, but more than 100, you’ll earn 30 % on your Smart Start bonus. And if you have less than 100 points of PV, then you won’t earn a Smart Start bonus. Let me give you a quick example how the Smart Start bonus works. As a distributor with at least 200 PV every single month, I earn 40 % of what my new distributors, my new subscription customers, and my new customers order on their first order. An easy example of this is a Platinum Pack. If I sign up a new distributor who purchases a Platinum Pack, I’m going to earn 40 % of the commissionable volume of that Platinum Pack. Now a Platinum Pack has a CV, or commissionable volume, of a thousand points. So 40 % of a thousand points is $400. That bonus is paid every single week. So if I sign up a new distributor who purchases a Platinum Pack this week,
 
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week I get paid $400. The second bonus that I want to describe to you is called the Launch bonus. Now this bonus is a little bit more complicated, but bear with me. I’ll give you an example to help you understand exactly how this works, and exactly how you get paid on this. Every product package that we sell, including the Platinum Pack, the Gold Pack, and the Silver Pack, have a Launch bonus assigned to it.
 
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Upline Pro 3, Pro 5, Pro 7, and Pro 10 all earn a portion of this Launch bonus. So when you’re qualified as a Pro 3, Pro 5, Pro 7, or Pro 10, you’ll also earn a portion of this Launch bonus, depending on your rank. Let me give you a quick example so you can see exactly how this works. If I’m a new distributor, and I sign up a brand new distributor who purchases a Platinum Pack, there’s a $50 bonus that goes to the Upline Pro 3. There’s another $50 bonus that’s paid to the Upline Pro 5. Additionally, there’s a $50 bonus paid to the Upline Pro 7, and there’s ultimately a $25 bonus paid to the Upline Pro 10. What this does, very simply, is that it inspires people to work with the brand new distributor, because a Pro 3, a Pro 5, a Pro 7, and a Pro 10 have already been paid a commission on their first product purchase, and therefore they have a vested interest in this new distributor’s success. That means you have a dedicated Upline who’s already interested in helping you reach your goals here at LifeVantage, and this Launch bonus is paid on every single product pack. Every Silver, every Gold, every Platinum Pack will pay the Launch bonus. So as you climb through the ranks of your LifeVantage business, this is one more great bonus that you earn each and every week.
 
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next bonus I want to talk to you about is called the Royalty bonus. Now the Royalty bonus is very simple, and we pay it every single month, but it’s a very important and lucrative part of the LifeVantage compensation plan. Our whole business is based on a very simple concept, which is when I introduce somebody to these products and they purchase those products, I’m paid a royalty for that introduction, and I earn that royalty in perpetuity every single time they purchase. So my incentive is to help as many people purchase products as I possibly can. The Royalty bonus works also as I introduce new distributors to my team.
 
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a distributor, when I enroll a new distributor who purchases product, I’ll earn a royalty on their product purchase. When they introduce a distributor or a customer, I’ll earn a royalty on that purchase as well. At LifeVantage, we pay up to nine levels of royalty bonus, which means that me, my team member that I enrolled, his team member that he enrolled, and so on through nine levels is what I potentially can earn on every single product purchase that’s placed throughout my entire organization.
 
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of the great things that we do here at LifeVantage is we have a concept called dynamic compression. Now you don’t need to worry about exactly what that means and how it works, but remember this part of what it does.
 
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somebody fails to place an order or if somebody doesn’t capture all nine levels on your organization, what LifeVantage does for you is that we roll the organization up to fill in any empty slot, which means you’ll always earn as many levels of royalty bonus as you’re qualified for. You’ll never have to worry about leaving money on the table and you never have to do anything in order to earn it because LifeVantage has already done that for you. The next bonus, which is also very powerful and lucrative bonus, is called the generational check match bonus. Now how this works is also pretty simple and it’s based on the topic that we just discussed, which is the royalty bonus.
 
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also want to introduce you to a new concept, which is the enroller tree versus the placement tree. The enroller tree is very simple. When I introduce a new distributor, he’s part of my enroller tree. When he or she introduces a new distributor, that’s part of my enroller tree. They don’t necessarily have to be in that order in my organization, however. I can place my new distributors in different parts. I can place new distributors under other distributors. I can place new distributors farther down in my organization, and I’ll explain why that’s an important distinction. The generational check match follows the enroller tree, which means I have an incentive to help my personally enrolled distributors earn as much as they can through the royalty bonus. Here’s how this works. When I enroll a new distributor, I have an incentive to help him or her earn as much as he or she possibly can through the royalty bonus. Because I earn a generational check match, so the more that that person earns, the more I earn.
 
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generational check match does follow the enroller tree, which means when I enroll a new distributor, that’s part of my enroller tree, and that’s who I check match. When he or she enrolls a new distributor,
 
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part of my enroller tree, and I earn a portion of what he or she earns through the royalty bonus.
 
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generational check match starts when I reach the rank of Pro 3,
 
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I earn up to five generations of check match. That means I earn 10 % of the check of all the people that I personally introduced to this business. I earn 5 % on my second level, 5 % on my third, 5 % on my fourth, and 5 % on my fifth level of generational check match. What that means is that I have a personal incentive to help my personally enrolled distributors succeed, because the more that they earn, the more I earn.
 
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I earn 10 % of what my personally enrolled distributors earn, that means if they’re making $10 ,000 a month through the royalty commission bonus, I earn $1 ,000.
 
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my incentive as a team leader is to help as many distributors earn as much as they possibly can in my organization.
 
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next bonus that I want to talk to you about is called the Elite Bonus Pool. Now this is a really interesting and great bonus for people who participate in the global results of LifeVantage Corporation. As an individual, you might work in your local market, but when you reach the rank of Pro 7 and beyond, you’ll get to participate in the global sales that LifeVantage as a corporation is achieving worldwide. How this works is we take 4 % of the global commissionable volume and we put that into four different bonus pools. 1 % is contributed to the Pro 7 Elite Bonus Pool, and every Pro 7 and above, so Pro 7, Pro 8, Pro 9, and Pro 10, all earn a share of that bonus pool that’s paid out every single month.
 
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additional percent is paid to our Pro 8 Bonus Pool, so Pro 8, Pro 9, Pro 10, everyone earns a share of the Pro 8 Bonus Pool. Pro 9 Bonus Pool, same concept, Pro 9 and Pro 10 all earn a share of that bonus pool. The last 1 % is placed into a Pro 10 Bonus Pool, and every qualified Master Pro 10 and above earns a share of that pool as well.
 
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the Elite Bonus Pool allows you to do is to build locally but benefit globally. As LifeVantage Corporation expands and grows, as long as you’re building and qualifying at Elite Ranks Pro 7, 8, 9, or Master Pro 10, you’ll continue to earn shares of the global commissionable volume no matter where your business is. The last bonus that I want to talk to you about is called the Rank Achievement Bonus. As you get to the higher end of the LifeVantage Compensation Plan, there are significant cash bonuses that are paid simply for achieving the ranks of Master Pro 10, Executive Master Pro 10, and Presidential Master Pro 10. Just for achieving the rank of Master Pro 10, LifeVantage Corporation will pay you a $100 ,000.
 
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achieving the rank of Executive Master Pro 10, LifeVantage Corporation will pay $250 ,000. And finally, at the rank of Presidential Master Pro 10, LifeVantage Corporation will pay you a half million dollars simply for achieving that rank.
 
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you can see, LifeVantage has built a very lucrative, very rewarding compensation plan. And I appreciate that you’ve taken some time to learn a little bit more about us and how this all works. If you have questions, you can always go back and watch certain sections again. Or if you continue to have questions, talk to the person who invited you to watch this video and get those questions answered. We’d love to have you as part of our LifeVantage family. Thanks for all that you do, and thanks for being the best part of what we do.
 
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