In order to qualify for any bonus, Distributors must meet all Active Requirements (see Glossary). All bonuses are paid only when products are sold. To view products available please refer to
the product catalogue or visit our websites www.nuskin.com.au/www.nuskin.co.nz.
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.†
LOI and above also need to have a monthly ADR order.‡
ADR: Automatic Delivery Rewards is a program that offers the convenience of
monthly automatic delivery of Nu Skin, Pharmanex, and some Big Planet products
with the opportunity to earn rewards points.
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 GSV. When
this event occurs, the upline Executive can qualify to receive the Breakaway Bonus
on the GSV of their new Breakaway Executive.
Breakaway Executive Bonus: a bonus that offers up to 5% earnings on the
sales volume 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 Executives’ GSV for that month.≠
Circle Group: For non-Executives, a circle group consists of all Retail Customers,
Privileged Members and Distributors. For Executives, a circle group includes all
Retail customers, Privileged Members, Distributors and Qualifying Executives.
Company: Nu Skin International, Affiliated Companies, and Nu Skin Personal
Care, Pharmanex and Big Planet.
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 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 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 GSV. Executive
Bonuses range from 9% to 15% depending on total GSV, the Additional 5%
Executive Bonus and the Extra Executive Bonus (see chart in Step 2). To qualify for
Executive Bonus a qualifying ADR order is required.
EEB: Extra Executive Bonus is a bonus that offers an additional 5% earnings on
your GSV. 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: A Distributor who has fulfilled the qualification requirements as set
forth in this Sales Compensation Plan. Qualification periods are on a calendar-
month basis.
Executive Maintenance Requirements: 100 PSV, 2,000 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
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 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. ≠
Fast-Start Product Packages: Is a package containing products which when
purchased will generate a Fast-Start Payment to the referring sponsor
G1: Generation 1 refers to your first “generation” of Breakaway Executives.
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. A Distributor will automatically be put in to 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 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: Level 1 includes personally sponsored accounts, 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
Requirement. ≠
Mega Performance Bonus Pool: Qualifying Executives and Executives may earn
a share of the Americas, Europe, and South Pacific commissionable sales through
the Mega Performance Bonus Pool.†† The Mega Performance Bonus Pool
incorporates monthly commissionable volume from the United States, Canada,
Europe, Russia, Israel, South Africa, Latin America and the South Pacific. This
bonus pool is a temporary incentive and not considered a part of the Sales
Compensation Plan, and may be modified or discontinued with 30 days notice
from Nu Skin. Complete details are available online by going to any of our
websites and logging into “My Office”.
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 active requirements.
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. PSV includes points from purchases
made directly from the company by your personal retail customers.
Privileged Member: A Privileged Member is a non-Distributor who qualifies for
product purchases at wholesale prices. A Privileged member must complete the
registration process to receive wholesale pricing and they are placed on the first
level of the Distributor Sponsor. Distributors are paid the L1 Bonus on personally
sponsored Privileged Member 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 PEXEC usage please visit our websites
www.nuskin.com.au / www.nuskin.co.nz
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
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. †
Retail Profit: please refer to Gross Retail Profit (GRP) definition.
Roll-up Distributors and Privileged Members: This occurs when the original
sponsor either terminates or becomes inactive.
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.
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 upline’s who have Breakaway Executives in markets
that do not participate in the PEXEC program. Executives cannot count roll-up
GSV towards Executive Maintenance. †
Sponsor: A Distributor who personally recruits another Distributor or Privileged
Member to sign up on 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).
† 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 ADP 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 24th of the following month.
†† In order to qualify for the Mega Performance Bonus Pool, a Qualifying Executive must meet the minimum bonus and sales
criteria in effect at the end of each commission period as set forth by the Company and fulfil the other Active Requirements
of the Sales Compensation Plan. Complete details are available online by visiting any of our websites (www.nuskin.com.au /
www.nuskin.co.nz) and logging into “My Office.”
¥ 80% of PSV must be sold or consumed prior to your next order.
‡ For a summary of distributor compensation paid to distributors at all levels within the Sales Compensation Plan, please refer
to the Resource section of the CD-rom located in your business portfolio; visit our company websites at www.nuskin.com.au /
www.nuskin.co.nz; or contact the company by telephone at 02 9491 0900 (Australia) or 09 373 1288 (New Zealand).