Glossary

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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.

 

ADR: Select a monthly automatic delivery order of NSE products or a monthly donation to Nourish the Children®  and receive rewarding benefits for your loyalty.

 

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 Commissionable Sales Value (CSV). When this event occurs, the upline Executive can qualify to receive the Breakaway Bonus on the GSV of their new Breakaway Executive. To recapture a Breakaway Executive, the upline Executive’s qualification date must be on or before the roll-up Breakaway Executive’s date.

 

BEB: Breakaway Executive Bonus is a bonus that offers up to 5% earnings on the Commissionable Sales Value (CSV) 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 Executive’s CSV for that month.

 

Circle Group: For non-Executives, a Circle Group consists of all retail customers, Preferred Customers and Distributors. For Executives, a Circle Group includes all retail customers, Preferred Customers, Distributors and Qualifying Executives.

 

Commissions: An amount you get paid based on your product sales.


CSV: Commissionable Sales Value:
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 discounts (which may include taxes, Fast-Start Payments, ADR or Web discounts). Qualification requirements will be based upon PSV and GSV.

 

DBLG1: Double G1 Bonus is a bonus that offers 10% earnings on the total GSV 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 Maximiser calculation if it contributes to the higher payout of the two alternatives.

 

DEXEC: Demoted 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 if Provisional Executive status has already been used during the Executiveship.

 

EB: Executive Bonus is a bonus earned monthly on your total CSV. Executive Bonuses range from 9% to 15% depending on total GSV. Percentages are paid from the total CSV of your Circle Group.

 

EEB: Extra Executive Bonus is a bonus that offers an additional 5% earnings on your circle group CSV. 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 Maximiser calculation if it contributes to the higher payout of the two alternatives.

 

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 six 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 first six months after falling to Distributor.

 

Fast-Start Payment: The Fast-Start Payment is earned by selling corporately approved Fast-Start Product Packages to newly sponsored customers and Distributors.

 

G1: Generation 1 refers to your first generation of Breakaway Executives.

 

GSV: Group Sales Volume represents the total PSV in your Circle Group, including your own PSV, for a given month.

 

LOI: Letter of Intent is a letter showing a Distributor’s intention to become an Executive. The Distributor should visit V&G Navigator. There, they can submit their intent to be put into 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 a “LOI.” A LOI is not the same as a Qualifying Executive (Q1, Q2), 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 all accounts that are currently sponsored by a Distributor 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 Requirements.

 

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 activity requirements.

 

Preferred Customer: A Preferred Customer is a non- Distributor who is entitled to purchase products from the Company at a discounted price.

 

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.

 

PEXEC: Provisional Executive is an Executive who has not met Executive Maintenance Requirements and has already used their grace month. A PEXEC 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 the requirements.

 

QEXEC: Qualifying Executive (Q1, Q2) is a Distributor who has successfully passed their first month of Executive qualification (called a LOI Month) and is now fully on track to qualifying as an Executive Distributor for NSE (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.

 

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’s qualification date must be on or before the roll-up Breakaway Executive’s date.

 

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 uplines who have Breakaway Executives in markets that do not participate in the PEXEC programme. The DEXEC’s GSV will not roll up until the following month when their title is Distributor.

 

Sponsor: A Distributor who personally recruits another Distributor or Preferred Customer to sign up in 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 Maximiser (including Extra Executive Bonus + Double G1 Bonus) OR Depth Maximiser (including Breakaway Executive Bonus).

 

Notes

• 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 25th of the following month.

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