Glossary
Active Requirement: In order to qualify for any bonus under the Sales Compensation Plan, obtain 100 PSV and make five retail sales per month.† LOI and above also need to have a monthly ADR order.‡
ADR: Automatic Delivery Rewards is a program that offers the convenience of monthly automatic delivery of Nu Skin, Pharmanex, and some Big Planet products with the opportunity to earn rewards points.
Breakaway Executive: A Distributor who has completed Executive Qualification and “broken away” from their upline, meaning that the sales volume of the new Executive and their circle group no longer count toward their upline’s GSV. When this event occurs, the upline Executive can qualify to receive the Breakaway Bonus on the GSV of their new Breakaway Executive. If a downline Distributor submits their LOI before you do, you may reclaim them as a breakaway executive by passing your LOI in or before their last month of qualification.
Breakaway Executive Bonus: a bonus that offers up to 5% earnings on the sales volume of each generation level based on the total number of G1 Breakaway Executives (see chart on Step 3). To receive a 5% Breakaway Executive Bonus, an Executive must have at least 3,000 GSV. If the GSV falls between 2,000 and 2,999, then the Breakaway Executive Bonus will be paid at 2.5% on the G1 to G6 Breakaway Executives’ GSV for that month.≠
Circle Group: For non-Executives, a circle group consists of all Retail Customers, Privileged Members and Distributors. For Executives, a circle group includes all Retail Customers, Privileged Members, Distributors and Qualifying Executives.
Company: Nu Skin International, Affiliated Companies, and Nu Skin Personal Care, Pharmanex and Big Planet.
DBLG1: Double G1 Bonus is a bonus that offers 10% earnings on the total GSVof G1 Executives. To receive a 10% Double G1 Bonus, an Executive must have at least 3,000 GSV. This bonus is only paid in accordance with the Volume Maximizer calculation if it contributes to the higher payout of the two alternatives.
DEXEC: Demoting Executive is an Executive who has failed to maintain Executive requirements and is in the process of being demoted back to Distributor. This usually occurs at the conclusion of Provisional Executive (PEXEC) status.
Distributor: A person engaged in the general distribution of Nu Skin products or services. The only required purchase to become a distributor is a not-for-profit Business Portfolio. All product purchases are optional.
EB: Executive Bonus is a bonus earned monthly on your total GSV. Executive Bonuses range from 9% to 15% depending on total GSV, and the Extra Executive Bonus (see chart in Step 2). To qualify for Executive Bonus a qualifying ADR order is required.
EEB: Extra Executive Bonus is a bonus that offers an additional 5% earnings on your GSV. To receive this extra 5% Extra Executive Bonus, an Executive must have at least 3,000 GSV (see chart on Step 3). This bonus is only paid in accordance with the Volume Maximizer calculation if it contributes to the higher payout of the two alternatives.
Executive: A Distributor who has fulfilled the qualification requirements as set forth in this Sales Compensation Plan. Qualification periods are on a calendar month basis.
Executive Maintenance Requirements: 100 PSV, 2,000 GSV.
Executive Re-entry: The process by which fallen Executives complete the qualification process again and regain Executive status. If an account who was once an Executive goes through qualification and passes to Executive within 6 months of falling to Distributor, they will recapture their former Breakaway organisation. While an account can go through qualification as many times as they like, the option to recapture one’s Breakaway organisation is only available during the six months after falling to Distributor. Executive Re-entry is only available once per Executiveship.
Fast-Start Payment: The Fast-Start Payment is earned by selling corporately approved Fast-Start Product Packages.
Fast-Start Product Packages: Is a package containing products which when purchased will generate a Fast-Start Payment to the referring sponsor
G1: Generation 1 refers to your first “generation” of Breakaway Executives.
GRP: Gross Retail Profit is the amount earned by purchasing products at wholesale price and re-selling at retail. It is earned by selling product to retail customers at the suggested retail price or at any price you choose to set for products.
GSV: Group Sales Volume represents the total PSV in your Circle Group, including your own PSV, for a given calendar month.
LOI: Letter of Intent is a letter showing a Distributor’s intention to become an Executive. A Distributor will automatically be put in to Executive qualification once they meet the requirements for Month 1 (referred to as the LOI Month). During their first month of Executive Qualification, a Distributor is often referred to as an “LOI.” An LOI is not the same as a Qualifying Executive (QEXEC), although both are in qualification to become an Executive. If a Distributor has been a Qualifying Executive in the past and wishes to enter Executive Qualification again, the Distributor must submit a formal LOI to the Company.
L1: Level 1 includes personally sponsored accounts, regardless of title.
Level 1 (L1) Bonus: A 5% bonus paid based on the PSV of all personally sponsored accounts. L1 Bonus is paid only to Distributors that fulfil the Active Requirement. ≠
Pacific Go Double Challenge: Pacific Ruby and above leaders can participate in the Pacific Go Double challenge by helping build 20 new Executives that reach 3000GSV in their first month in the ruby and above leaders G1-G6 organisation that are created between June 1st 2012 -31st December 2012. Open to all paid as Ruby Executives and above from any markets from the Pacific Region (Australia, New Zealand, French Polynesia, New Caledonia). The Pacific Go Double challenge is a temporary incentive and not considered a part of the Sales Compensation Plan, and may be modified or discontinued with 30 days notice from Nu Skin. Complete details are available online by going to any of our websites and logging into “My Office”.
Pacific New Executive Bonus: For every new Executive that achieves 3000GSV in their first four months we be entitled to earn $200USD every month. The Pacific New Executive Bonus is a temporary incentive and not considered a part of the Sales Compensation Plan, and may be modified or discontinued with 30 days notice from Nu Skin. Complete details are available online by going to any of our websites and logging into “My Office”.
Performance Bonus Pool: Qualifying Executives and Executives may earn a share of the Pacific Region (Australia, New Zealand, French Polynesia and New Caledonia) commissionable sales through the Performance Bonus Pool.†† The Performance Bonus Pool incorporates monthly commissionable volume from the Pacific Region (Australia, New Zealand, French Polynesia and New Caledonia). This bonus pool is a temporary incentive and not considered a part of the Sales Compensation Plan, and may be modified or discontinued with 30 days notice from Nu Skin. Complete details are available online by going to any of our websites and logging into “My Office”.
Pin Title Grace Month: If an Executive fails to meet Executive maintenance requirements, they may take a grace month and maintain their Executive status. Each Executive is entitled to one grace month per 12-month rolling calendar period. For example, if you use a grace month in May, the next time you can take one is May of the following year. Executive bonuses will not be paid during a grace month. An Executive may earn the L1 bonus during a grace month if they meet the minimum active requirements.
PSV: Personal Sales Volume is the monthly Point Value of the products and services you purchase from the Company primarily for retail sale or personal consumption.¥ PSV includes points from purchases made directly from the company by your personal retail customers.
Privileged Member: A Privileged Member is a non-Distributor who qualifies for product purchases at wholesale prices. A Privileged member must complete the registration process to receive wholesale pricing and they are placed on the first level of the Distributor Sponsor. Distributors are paid the L1 Bonus on personally sponsored Privileged Member purchases.
PEXEC: Provisional Executive is an Executive who has not met Executive maintenance requirements and has already used their grace month. A Provisional Executive keeps all of their own Breakaways in addition to counting as a Breakaway Executive to their upline. A PEXEC’s GSV is not included in their upline’s GSV. An account may be a PEXEC for up to three consecutive months. If a PEXEC meets Executive maintenance requirements, they will be immediately promoted to an Executive in the month that they meet Executive maintenance requirements. Provisional Executive is only available once per Executiveship. During an account’s Provisional Executive Status, the account is not allowed to be involved in a merge, termination, or any type of sponsor change. Those who fall from Executive to Distributor and qualify as an Executive again, at a later date, must wait at least 12 months since the completion of the most recent Provisional Executive cycle before using it again. If a fallen Executive uses the Executive Re-Entry option (see Executive Re-Entry for details) to retain their previous Executiveship, they are not eligible to reuse Provisional Executive status. For complete details regarding PEXEC usage please log into “My Office”.
QEXEC: Qualifying Executive is a Distributor who has successfully passed their first month of Executive qualification (called an LOI month) and is now fully on track to qualifying as an Executive distributor for Nu Skin (see chart in Step 2 for monthly requirement details).
Retail Customer: A Retail Customer is a non-Distributor who purchases products at retail price from a Distributor or from the Company. Volume from product purchases made through the company by retail customers assigned to a Distributor account are counted towards the sponsor’s PSV. †
Retail Profit: please refer to Gross Retail Profit (GRP) definition.
Roll-up Distributors and Privileged Members: This occurs when the original sponsor either terminates or becomes inactive.
Roll-up Executive: An Executive that used to be on your second breakaway generation (G2), but because their upline Executive failed to maintain their Executive status, is now a first generation Breakaway (G1) Executive to you.
Roll-up Breakaway Executive: A Breakaway Executive in your G1-G6 who, because their upline Executive fails to maintain their Executive status, rolls up to the next eligible upline Executive. To recapture a Breakaway Executive, the upline Executive qualification date must be on or before the roll-up Breakaway’s Executive’s dates.
Roll-up GSV: When a first-level (G1) Breakaway Executive falls to Distributor, the GSV of that fallen Breakaway Executive rolls-up in to their upline’s GSV. The portion of one’s GSV that comes from fallen Breakaway Executives is called “roll-up GSV.” This only applies to upline’s who have Breakaway Executives in markets that do not participate in the PEXEC program. Executives cannot count roll-up GSV towards Executive Maintenance. †
Sponsor: A Distributor who personally recruits another Distributor or Privileged Member to sign up on their L1.
Wealth Maximizer: A bonus calculating component of the Sales Compensation Plan that will automatically pay the higher of two alternate bonus calculations: Volume Maximizer (including Extra Executive Bonus + Double G1 Bonus) OR Depth Maximizer (including Breakaway Executive Bonus).
† 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.
≠ All bonuses are calculated on a monthly basis, and mailed or deposited on or about the 24th of the following month.
†† In order to qualify for the Performance Bonus Pool, a Qualifying Executive must meet the minimum bonus and sales
criteria in effect at the end of each commission period as set forth by the Company and fulfil the other Active Requirements
of the Sales Compensation Plan. Complete details are available online by visiting any of our websites (www.nuskin.com.au /
www.nuskin.co.nz) and logging into “My Office” or contact the company by telephone at 02 9491 0900 (Australia) or 09
254 4180 (New Zealand).
