Glossary of Terms

Glossary of Terms

ACTIVE REQUIREMENT: In order to qualify for any bonus under the Sales Compensation Plan, Distributors and Qualifying Executive Distributors must have 200 L1 volume and five Customer sales per month; Executive Distributors must have 2000 Group Sales Volume (GSV) and five Customer sales per month.

 

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 the upline’s GSV. When this event occurs, the upline Executive can qualify to receive the Breakaway Bonus on the Commissionable Sales Value (CSV) of their new Breakaway Executive. If a downline Distributor submits their LOI before you do, you may reclaim them as a Breakaway Executive by submitting your LOI before their last month of Executive qualification.


BREAKAWAY EXECUTIVE BONUS: A bonus that offers up to 5% earnings on the Commissionable Sales Value (CSV) of each generation 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, Preferred Customers and Distributors. For Executives, a circle group includes all Retail Customers, Preferred Customers, Distributors and Qualifying Executives.

 

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 discounts (which may include taxes, Fast-Start Payments, ADR or Web discounts). Qualification requirements will be based upon GSV.

 

CUSTOMER: A Customer refers collectively to non-participants in the Sales Compensation Plan who are either (i) Retail Customers, or (ii) Preferred Customers.

 

DBLG1: Double G1 Bonus is a bonus that offers 10% earnings on the total CSV 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 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 Enterprises’ 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 Circle Group GSV. Executive Bonuses percentages range from 9% to 15% based on the total GSV (see chart in Step 2). 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 Maximizer calculation if it contributes to the higher payout of the two alternatives.

 

EXECUTIVE MAINTENANCE REQUIREMENTS: 2000 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 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.

 

FAST-START PAYMENT: The Fast-Start Payment is earned by selling corporately approved Fast-Start Product Packages to newly sponsored Customers and Distributors. There will be a $1 processing fee, per transaction, for the weekly direct deposit option (only available in the US).

 

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

 

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.

 

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 month.

 

LOI: Letter of Intent is a letter showing a Distributor’s intention to become an Executive. 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 VOLUME: The wholesale point value of products purchased by (i) your Retail Customers, who purchase directly from the company, (ii) your L1 Preferred Customers, and (iii) the PSV of personally sponsored Distributors provided this sales volume is within your GSV.

LEADERSHIP AND LOYALTY BONUS: Breakaway Bonus paid to Ruby and higher Executives based on their Breakaway Executives CSV on levels G3-G6. This payment is based on your compliance with the requirements of the Sales Compensation Plan and Policies and Procedures, including acting exclusively as a Nu Skin Distributor. If you are directly or indirectly involved in any manner with another Direct Sales Company (as defined in the Policies and Procedures), you will not be eligible to receive the Leadership and Loyalty Bonus. Additionally, your account may be subject to other disciplinary actions, including termination. (Please see Chapter 5 of the P&P for more details)

LEVEL 1 (L1) BONUS: A 5% bonus paid based on the CSV of all personally sponsored accounts. L1 Bonus is paid only to Distributors that fulfill the Active Requirement.

PIN TITLE GRACE MONTH: If an Executive fails to meet Executive maintenance requirements, 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 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.

PSV: Personal Sales Volume is the monthly point wholesale value of the products and services you purchase from the Company primarily for retail sale or personal consumption.**

PREFERRED CUSTOMER: A Preferred Customer is a non-Distributor who receives at least one order or service through the ADR program. A Preferred Customer qualifies for product purchases at discounted prices; plus, a Preferred Customer can earn ADR points to redeem for free products. Distributors are paid the L1 Bonus on personally sponsored Preferred Customer 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. For complete details regarding Provisional Executive usage, please visit our website www.nuskin.com and click on Join our Team.

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 from a Distributor or from the Company. The point value of products purchased by a Retail Customer, who purchases directly from the company, count towards the Sponsor’s PSV.†

ROLL-UP 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.

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 Maximizer (including Extra Executive Bonus + Double G1 Bonus) OR Depth Maximizer (including Breakaway Executive Bonus).


Generating meaningful compensation as a distributor requires considerable time, effort, and commitment. To qualify for any bonus you must meet all requirements of the Sales Compensation Plan including retail sales to customers. For a complete summary of distributor earnings paid to distributors at all levels within the Sales Compensation Plan, please contact the Company at 800-487-1000 or visit www.nuskin.com/cadistributorearnings or www.nuskin.com/usdistributorearnings

 

† 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 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 20th of the following month.

** 80% of PSV must be sold or consumed prior to your next order.

 

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