Glossary

Glossary

ARO: Automatic Re-Ordering is a program that offers the convenience of monthly automatic re-ordering of Nu Skin and Pharmanex products with special discounts.

Business Portfolio is a non-commissionable at-cost kit and is the only purchase required to become a Distributor. It contains Nu Skin’s Policies and Procedures, Distributor Agreement and other sales and demonstration materials to assist a Distributor in starting and conducting his/her independent business.

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 can qualify to receive the Leadership Bonus on the GSV of their new Breakaway Executive.

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

DEXEC: Demoting Executive is an Executive who fails to maintain Executive requirements and is in the process of being demoted back to Distributor. This usually occurs at the conclusion of the Provisional Executive (PEXEC) status. Distributor: an independent contractor authorised by Nu Skin to purchase and retail Nu Skin’s products and services and to recruit other Distributors and receive bonuses in accordance with the requirements of the sales compensation plan.

Double G1 Bonus: is a bonus that offers 10% earnings on the total GSV of G1 Executives. To receive 10% Double G1 Bonus, an Executive must have at least 3,000GSV. This bonus is only paid on the Volume Maximizer calculation if it constitutes the higher payout of the two options.

EB: Executive Bonus is a bonus earned monthly on your total GSV. Executive Bonus ranges from 9% to 15% depending on the total GSV.

EEB: Extra Executive Bonus is a bonus that offers an additional 5% earnings on your GSV. To receive this 5% Extra Executive Bonus, an Executive must have at least 3,000GSV. This bonus is only paid in accordance with the Volume Maximizer calculation if it constitutes the higher payout of the 2 options.

Executive Maintenance Requirements:
100 Personal Sales Volume, 2,000 Group Sales Volumes and a monthly ARO.

Executive Re-entry: this 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 after 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 within six months after falling to Distributor.

Fast-Start Payments: The Fast-Start Payment is earned by selling Corporatedesignated Fast-Start Payment Packages to personally sponsored Distributors.

G1:
Generation 1 refers to a Distributor’s first generation Breakaway Executives.

Grace Month: if an Executive fails to maintain Executive Maintenance Requirements, he/she may take a grace 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 in 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 requirement of 100PSV and a personal ARO.

GSV: Group Sales Volume represents the total PSV in a Distributor’s Circle Group including his/her own PSV for a given month but not counting an Executive’s 100 PSV which counts to his/her upline Executive’s GSV (This rule is applicable to Singapore/ Malaysia/ Brunei/ Indonesia Executives only).

L1: Level 1 includes all personally sponsored Distributors, regardless of title.

L1 Bonus: Level 1 Bonus is a 5% bonus paid based on the PSV of all personally sponsored Distributors. L1 Bonus is paid only to Distributors who fulfill the minimum active requirement of 100PSV.

Leadership Bonus: a bonus that offers up to 5% earnings on the sales volume of each generation based on the total number of G1 Breakaway Executive. To receive a 5% Leadership Bonus, an Executive must at least have 3,000GSV. If the GSV falls between 2,000-2,999, then the Leadership Bonus will be paid at 2.5% on the G1 to G6 Breakaway Executives for that month.

LOI: Letter of Intent is a letter showing a Distributor’s intention to become an Executive. During the 1st month of Executive qualification period, a Distributor is often referred to as an “LOI Distributor”. An LOI Distributor 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 new LOI form.

PEXEC: Provisional Executive is an Executive who has not met Executive Maintenance Requirements and has already used the Grace Month. A PEXEC keeps all of their Breakaway Executives 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.


PSV: Personal Sales Volume is the monthly point value of the product and services  Distributor purchased from Nu Skin primarily for retail sales.
QEXEC: Qualifying Executive is a Distributor who has successfully passed their first month of Executive qualification (called an LOI month) and is not fully on track to be qualified as an Executive.

Roll-up Executive: An Executive who used to be on your second generation (G2) of Breakaway Executives but because their immediate upline Executive failed tomaintain their Executive Maintenance Requirements, which make him/her a firstgeneration Breakaway (G1) Executive to you.

Roll-up GSV: when a first generation (G1) Breakaway Executive falls to Distributor, the GSV of the fallen Executive rolls-up in to their upline’s GSV. The portion of one’s GSV that comes from fallen Breakaway Executive is called “roll-up GSV”. Executives cannot count roll-up GSV towards their Executive Maintenance Requirements.

Sponsor: a Distributor who personally recruits another Distributor to sign up in his/ her L1.

Wealth Maximizer: a bonus calculating component of the Sales Compensation Plan that will automatically pay the higher of two alternative bonus calculation: Volume Maximizer (including Extra Executive Bonus + Double G1 Bonus) or Depth Maximizer (including Leadership Bonus).

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