Glossary

Glossary

ACTIVE REQUIREMENTS:
To qualify for any bonus under the Sales Compensation Plan, 100 PSV each month is required. For LOI and above, enrolling in an 18-month personal ARO program is also required and each month during the ARO program, an ARO order must also be successfully placed and shipped.

AUTOMATIC RE-ORDERING (“ARO”):
An automatic re-ordering program that offers product discounts and privileged promotions.

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 towards their upline’s GSV. When this event occurs, the upline Executive is qualified to receive the Breakaway Bonus on the GCSV of their new Breakaway Executive.

Circle Group:
For non-Executives, a circle group consists of all Retail Customers and Distributors. For Executives, a circle group consists of all Retail Customers, Distributors and Qualifying Executives.

Commissionable Sales Value (“CSV”):
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.

DOUBLE G1 BONUS (“DBLG1”):
DBLG1 is a bonus that offers a 10% earnings on the total GCSV of 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 Plan if the bonus calculated under the Volume Maximizer Plan constitutes a higher payout than that calculated under the Depth Maximizer Plan.

DEMOTING EXECUTIVE (“DEXEC”):
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. A Demoting Executive is counted as a Breakaway Executive to the upline. A DEXEC’s GSV is not included in the upline’s GSV.

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 NU SKIN Enterprises Business Portfolio. All product purchases are optional.

EXECUTIVE BONUS (“EB”):
A monthly bonus ranging from 9% to 15% of GCSV. The applicable Executive Bonus percentage is determined based on total GSV (see chart in Step 2).

EXTRA EXECUTIVE BONUS (“EEB”):
EEB is a bonus that offers an additional 5% earnings on your GCSV. 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 Plan if the payout calculated under the Volume Maximizer constitutes a higher payout than that calculated under the Depth Maximizer.

EXECUTIVE MAINTENANCE REQUIREMENTS:
Qualification for the Executive Bonus requires that a Distributor meet all Active Requirements and have GSV of 2,000 or greater each month.

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 organization. While an account can go through qualification as many times as they like, the option to recapture one’s Breakaway organization is only available during the six months after falling to Distributor. Executive Re-entry is only available once per Executiveship.  

Group Commissionable Sales Value (“GCSV”):
Group Commissionable Sales 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.


GROUP SALES VOLUME (“GSV”):
Represents the total PSV in your Circle Group, including the volumes of retail customers, prefer customers and distributors, for a given month.

GRACE MONTH:

If an Executive or above fails to meet Executive maintenance requirements (100PSV, 2,000GSV), a grace month may be used to maintain 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 a grace month will be May of the following year. Executive bonuses will not be paid for a grace month. An Executive may earn the L1 bonus during a grace month if he/she meets all Active Requirements for the month.

LETTER OF INTENT (“LOI”):
A letter showing a Distributor’s intention to become an Executive. A Distributor can submit a formal LOI to the Company when meeting First Month requirement: 500PSV, 1000GSV & signed an 18-month personal ARO.

LEADERSHIP BONUS:

A bonus that offers 5% or 2.5% earnings on the CSV of each generation level based on the total number of G1 Breakaway Executives (see chart on Step 3). To receive a 5% Leadership Bonus, an Executive must have at least 3,000 GSV. If the GSV falls between 2,000 and 2,999, then the Leadership Bonus will be paid at 2.5% on the GCSV of the G1 to G6 Breakaway Executives.


LEVEL 1 (“L1”) BONUS:

A 5% bonus to be paid based on the total CSV of all personally sponsored first level distributors. L1 Bonus is paid only to Distributors that fulfill the Active Requirement.

PERSONAL SALES VOLUME (“PSV”):
Is the monthly Point Value of the products and services you purchase from the Company primarily for retail sale or personal consumption.

PROVISIONAL EXECUTIVE (“PEXEC”):  
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.

QUALIFYING EXECUTIVE (“QEXEC”):
A distributor who has successfully passed his first month of Executive qualification (called an LOI month) and is now fully on track to qualifying as an Executive. (see chart in Step 2 for monthly requirement details).

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. If Provisional Executive falls to Distributor, that downline Executive will roll-up to the upline.

WEALTH MAXIMIZER PLAN:
A bonus calculating component of the Sales Compensation Plan that will automatically pay the higher of two alternative bonus calculations: Volume Maximizer Plan (including Extra Executive Bonus + Double G1 Bonus) OR Depth Maximizer Plan (including Breakaway Executive Bonus).

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