Announcement from Nu Skin Enterprises Hong Kong, LLC Amendments of Policies and Procedures (December 1, 2015)
Announcement from Nu Skin Enterprises Hong Kong, LLC
Amendments of Policies and Procedures
December 1, 2015
Dear Nu Skin Distributors,
Our vision is to become the world’s leading direct selling company by generating more income for sales leaders than any other company. In order to optimize our Sales Compensation Plan, we will launch the Commission Maximizer on January 1, 2016 introducing CSV (Commissionable Sales Value) and GCSV (Group Commissionable Sales Value) to calculate commissions while using the existing PSV and GSV to determine qualifications and titles. CSV (Commissionable Sales Value) is the wholesale price less any taxes and discounts. After the Commission Maximizer takes effect, every product and sales aid will be given a CSV in addition to the existing PSV. At times of inflation and price increase, commissions calculated by CSV will be higher than those calculated using the present method of PSV, which means that distributors will enjoy higher commission earnings.
The relevant provisions of our Sales Compensation Plan and Section 3.5 and 6.8 of Chapter 2 of our Company’s Policies and Procedures will be revised for the launch of the Commission Maximizer. Definitions of CSV and GCSV will also be added to Addendum A of our Company’s Policies and Procedures. We will make the relevant amendments to the various forms, such as the Distributor and International Sponsor Agreement, Automatic Re-Ordering Program Enrollment Agreement and Nourish the Children Donation Form*, adding in CSV(Commissionable Sales Value).
Please see below for details of the above-mentioned revisions to our Policies and Procedures. We encourage you to re-read the Policies and Procedures in order to familiarize yourselves with this very important document. A full version of the revised Policies and Procedures is available at www.policiesandprocedures.hk, the relevant revised wordings of the Sales Compensation Plan can be viewed [here] and the revised Nourish the Children Donation Form can be viewed [here].
*Amendments to the Nourish the Children Donation Form will take effect on January 12, 2016.
Chapter 2 of Policies and Procedures (Operating Your Business)
Section 3.5 Issuing Credits
A Company credit may be issued in instances of overpayment, Product exchanges, or in other circumstances when an order cannot be completely filled. Personal Sales Volume and Group Sales Volume (or if applicable, Commissionable Sales Value and Group Commissionable Sales Value), are credited when the Company credit is used.
Section 6.8 Timing
An order for Products is included in the Bonus and Executive qualification computations for a given month only if received by the Company on or before the last business day of that month. If the Company places Products on backorder, Personal Sales Volume (or if applicable, Commissionable Sales Value) for those Products will only be included in the Bonus and Executive qualification computations in the month the Products are shipped.
Addendum A of Policies and Procedures (Glossary of Defined Terms)
Commissionable Sales Value is the monthly currency value of the commissionable products and services purchased from the Company upon which Sales Compensation Plan bonuses and commissions will be calculated. CSV is equal to the wholesale price of a product or service minus any taxes and discounts. Qualification requirements will be based on PSV and GSV.
Group CommissionableSales Value is the monthly currency value of the commissionable products and services purchased from the Company by yourself and by those in your Circle Group for a given month.
Should you have any questions, please contact your Executive Partners.
Nu Skin Enterprises Hong Kong, LLC