Velocity Bonuses

Sales Performance Plan
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Velocity Bonuses

2.1 SHARING AND RETAILING BONUS (DAILY)

2.2 BUILDING BONUS (WEEKLY)

2.3 LEADING BONUS (MONTHLY)

2.1 Retail Bonus and Sharing Bonus (Daily)

A. Description of the Sharing Bonus

The Sharing Bonus compensates you for Product purchases by your Personally Registered Customers.

B. Sharing Bonus Calculation

The Sharing Bonus is a dollar amount set for each Product. You can obtain information regarding the Sharing Bonus amount, pricing and other sales compensation related information for each Product by signing in to your market’s Brand Affiliate website.

IMPORTANT NOTE – SHARING BONUS: You will not be paid a Sharing Bonus on the following:

Purchases by Brand Representatives.
Your own purchases, including purchases for resale to unregistered customers, unless you are a Brand Representative.
Purchases by your Registered Customers who are not your Personally Registered Customers (i.e., a Registered Customer who became your Registered Customer due to the inactivity of the Brand Affiliate who registered them).

IMPORTANT NOTE – DISCOUNTS: Product prices and Sharing Bonuses are subject to promotional discounts and may be reduced by the same percentage, unless otherwise noted by the market.

C. Retailing Bonus Description

The Retailing Bonus compensates you for Product purchases by your Retail Customers.

D. Retailing Bonus Calculation

The difference between (1) the retail price paid by your Retail Customer after any discounts (excluding shipping costs and taxes) when they purchase Products directly from Nu Skin and (2) the Member Price.

You earn the Retailing Bonus on purchases by all your Retail Customers, regardless of whether they are your Personally Registered Customers.

E. Daily Pay

The Sharing Bonus and Retailing Bonus will generally be recorded in your Velocity Account (found in your “Volumes & Genealogy” tool) within one business day following the purchase.

F. Eligibility

To be eligible to receive the Sharing Bonus and Retailing Bonus, you must be a Brand Affiliate.

2.2 BUILDING BONUS (WEEKLY)

A. Description

As a Brand Representative, in addition to the Sharing Bonus and Retailing Bonus, you can also earn a Building Bonus. The Building Bonus compensates you weekly for building your Consumer Group, providing customer service to them, and assisting Brand Affiliates and Qualifying Brand Representatives in the promotion of Products to their customers.

BUILDING BLOCKS: A Building Block is 500 points of Sales Volume from your Consumer Group. The number of Building Blocks you complete will determine the percentages used to calculate your Building Bonus. Your number of Building Blocks resets to zero after each month, so your first 500 points of Sales Volume in a new month will result in your first Building Block for that month. If you have an incomplete Building Block at the end of the month, it will not carry forward to the next month.

B. Building Bonus Calculation

The Building Bonus is a percentage of the Commissionable Sales Value of your Consumer Group’s Product purchases that starts at 5% on your first Building Block and scales up to 40% on your 16th Building Block and beyond, as illustrated in the following diagram.

The Building Bonus for each Building Block is calculated by multiplying:

the total Commissionable Sales Value of that Building Block, by
the specific Building Bonus Percentage for that Building Block.

IMPORTANT NOTE – BUILDING BONUS PERCENTAGE: The Building Bonus Percentage for a specific Building Block is limited to that specific Building Block and is not applied to previous Building Blocks. For example, you earn 5% on the Commissionable Sales Value of your first two Building Blocks and 10% on the Commissionable Sales Value of your third Building Block (but you do not earn 10% on your first two Building Blocks) in a month.

EXAMPLE: Assuming the Commissionable Sales Value for each Building Block was $500, the Building Bonus for your first Building Block would be $25, and the Building Bonus for your 8th Building Block would be $175.

If Flex Blocks are used to hold your Brand Representative status, you will only be eligible for a Building Bonus on any completed Building Blocks and no Bonus is paid on Flex Blocks. See Section 3.3.

C. Weekly Pay

Four times a month, we pay you a Building Bonus for any newly completed Building Blocks through the end of each weekly period. Your Building Bonus will generally be recorded in your Velocity Account within one business day following the end of the weekly period.

D. Eligibility

To be eligible to receive a Building Bonus, you must be a Brand Representative. If you lose your status as a Brand Representative, you will not be eligible for a Building Bonus, effective the following month. See Section 3.2 for more details.

IMPORTANT NOTE – INCOMPLETE BUILDING BLOCKS: If you have completed 4 or more Building Blocks by the end of the month, you will be paid a Building Bonus on any Commissionable Sales Value from an incomplete Building Block using the same Building Bonus Percentage applicable to the last completed Building Block.

EXAMPLE: If you have completed 6 blocks and part of your 7th block in a given month, you will be paid a 25% Building Bonus on the Commissionable Sales Value of your 7th Building Block.

2.3 LEADING BONUS (MONTHLY)

A. Description

When you become a Brand Partner or Brand Director, in addition to receiving the Sharing, Retailing and Building Bonuses, you will earn a Leading Bonus for developing and leading other Brand Representatives. This involves helping your Brand Affiliates qualify as new Brand Representatives, and motivating, directing, and training the Brand Representatives who you directly lead in your Team (referred to as your G1 Brand Representatives).

As your G1 Brand Representatives develop into Brand Partners and Brand Directors, your role evolves. In addition to developing other Brand Representatives, you will lead a Team that includes Brand Representatives on other Generations (e.g., G2, G3 etc.), as they work to develop their own Consumer Groups and increase Product sales. The Leading Bonus is designed to maximize the Bonus paid to you based on the changing composition of your Team and your development and leadership focus.

TEAM: Your Team consists of all Generations on which you are eligible to be paid a Leading Bonus. Your Title determines the number of Generations of Brand Representatives and their Consumer Groups on your Team, as shown in the Velocity Title Determination table. Your Team does not include your Consumer Group.

Your Title and your Team are based on your performance. As you demonstrate the ability to develop Brand Representatives and help them build their Consumer Groups and drive sales through their Teams, your Team will expand to include more Generations of Brand Representatives.

G1 BRAND REPRESENTATIVES: Every Brand Representative you directly lead and who is the first Brand Representative below you in your Team is your G1 Brand Representative.

LEADERSHIP TEAM SALES VOLUME: Leadership Team Sales Volume is the sum of Consumer Group Sales Volume in your G1-G6 for a given G1 Brand Representative.

Your Title and the number of Generations of Brand Representatives included in your Team is based on your number of G1 Brand Representatives and Leadership Teams, as set forth in the following Velocity Title Determination table:

VELOCITY TITLE DETERMINATION

TITLE			REQUIRED NUMBER OF G1 BRAND REPRESENTATIVES	LEADERSHIP TEAM SALES VOLUME REQUIREMENTS	NUMBER OF GENERATIONS ON YOUR TEAM
BRAND REPRESENTATIVES		BRAND REPRESENTATIVE	0	N/A	N/A
	BRAND PARTNERS	BRAND PARTNER (Gold Partner)	1	N/A	1
		SENIOR BRAND PARTNER (LAPIS PARTNER)	2	N/A	2
		EXECUTIVE BRAND PARTNER (RUBY PARTNER)	4	N/A	3*
	BRAND DIRECTORS	BRAND DIRECTOR (EMERALD PARTNER)	4	1 WITH ≥ 10,000	4*
		SENIOR BRAND DIRECTOR (DIAMOND PARTNER)	5	1 WITH ≥ 10,000 1 WITH ≥ 20,000	5*
		EXECUTIVE BRAND DIRECTOR (BLUE DIAMOND PARTNER)	6	1 WITH ≥ 10,000 1 WITH ≥ 20,000 1 WITH ≥ 30,000	6*
		PRESIDENTIAL DIRECTOR** (TEAM ELITE)	6	1 WITH ≥ 10,000 1 WITH ≥ 20,000 1 WITH ≥ 30,000 1 WITH ≥ 40,000	6*

*To be eligible to be paid on Generations 3-6 you must not be involved in Business Development Activities for another Direct Sales Company.

** Executive Brand Directors (Blue Diamonds) and Presidential Directors (Team Elite) qualify for a Business Builder Position and Presidential Director Business Builder Position, respectively. Your Leadership Team requirements may be satisfied by Leadership Teams on your Business Builder Position and Presidential Director Business Builder Position. Please see Addendum D for details. Please contact your local market for details regarding recognition and trip requirements, which may differ from the requirements of this Plan.

B. Leading Bonus Calculation

To incentivize Brand Partners and Brand Directors to continue to build and maintain Product sales within their own Consumer Groups, the method of calculating the Leading Bonus is based on the number of Building Blocks that you complete in your own Consumer Group during the month.

Completion of Six or More Building Blocks: When you complete six or more Building Blocks in your Consumer Group in a month, then you are paid the greater of the following two Leading Bonus calculations:
- Developing G1 Brand Representatives
  10% of the Commissionable Sales Value of the Product purchases by the Consumer Groups of all your G1 Brand Representatives.
- Leading a Team
  5% of the Commissionable Sales Value of the Product purchases by the Consumer Groups of all the Brand Representatives within your Team.
Completion of Four or Five Building Blocks: If you only complete four or five Building Blocks in a month, then you are paid 2.5% of the Commissionable Sales Value of the Product purchases by the Consumer Groups of all the Brand Representatives within your Team.

LEADING BONUS

EARN	IF YOU COMPLETE
10% LEADING BONUS ON YOUR G1 CSV	6+ BLOCKS
5% LEADING BONUS ON YOUR TEAM CSV	6+ BLOCKS
2.5% LEADING BONUS ON YOUR TEAM CSV	4–5 BLOCKS

C. Paid Monthly

Following the end of each month, we calculate your Leading Bonus. The Leading Bonus is generally recorded in your Velocity Account within one business day following the end of the monthly Bonus calculation and is automatically transferred to the financial institution that you select.

D. Eligibility

To be eligible to receive a Leading Bonus:

be a Brand Representative;
have a minimum of one G1 Brand Representative; and
complete four Building Blocks from your Consumer Group.

You are not eligible for a Leading Bonus for a month that we hold your Brand Representative status or you lose your Brand Representative status. See Section 3.2 for more details.