Page 1 What are we going to go over? • • • • • Why a plan enhancement is needed Explain the new plan Examples Transition Setting expectations Why enhance the Plan? • We have learned a lot since our change in 2005 – Best practices – Common characteristics of successful Career plans • Competition has increased – We learn from our competitors and become stronger • More opportunity and success for YOU – Better success rate for new Consultants Why Enhance the Plan? • To properly reward leaders for developing their rising stars • To properly balance structure and volume in the career plan – Current plan drives team structure more than volume Key Objectives of New Plan • Better opportunity for new Consultants & early builders • Create stronger teams and team leaders • Reward builders for helping others succeed • Reward leaders better for developing leaders • Transition existing Consultants to the new plan fairly over time CAREER PATH P. 6 When this banner appears on the screen, turn to the page listed in your Career Plan book to follow along. Page 7 P. 6 Selling Retention THE FIVE GOLDEN BEHAVIORS Leading Sponsoring Building a Team Natural Progression Career Path Start Hobbyist/ Consumer Ramp Up Business Builder Transition Zone 1 Passive to Business Team Leader Leads a Small Team Leader Focuses on Rising Stars Transition Zone 2 Part Time to Full Time Who Are We? Who Are We? “It’s What we love and What we Do!” Career Path to Team Leader Fragrance Senior Premier Elite Platinum Team Leader No PV 0 Active Leg 250 PV 1 Active Leg 300 PV 1250 TV 2 Active Legs 600 PV 2500 TV 2 Active Legs (1 @ Senior) 900 PV 5000 TV 2 Active Legs 1200 PV / 7500 TV 3 Active Legs (2 @ Premier) 3 4 1 2 (2 @ Senior) 5 6 P. 14 Fragrance Consultant Qualifications: No Required Monthly Personal Volume (PV) No Active Leg Fragrance Senior Premier Elite Platinum Team Leader P.16 Senior Consultant Qualifications: 250 Fragrance 250 Monthly Personal Volume (PV) Senior Premier Elite Platinum Team Leader PV – Personal Volume Total personal volume of orders placed by a Consultant and their customers US: $18.98 (26 oz. Heritage) PV: 18.98 (Remember this is NOT a dollar value) P. 16 Senior Consultant Qualifications: 250 250 Monthly Personal Volume (PV) 1 Active Leg Fragrance Senior Premier Elite Platinum Team Leader P. 17 What is an Active Leg? Active Have 250 PV for the month Leg A consultant you have personally sponsored and everybody under them infinitely deep Active Leg A leg with one or more active Consultants anywhere in the leg 250 PV 250 PV Premier Consultant P. 18 Qualifications: 300 Monthly Personal Volume (PV) 300 2 Active Legs 1,250 Team Volume (TV) 250 250 1,250 TV Fragrance Senior Premier Elite Platinum Team Leader TV – Team Volume Total personal volume from the Consultant themselves and their entire personal team US: $18.98 (26 oz. Heritage) PV: 18.98 TV: 18.98 (Remember this is NOT a dollar value) Premier Consultant P. 18 Qualifications: 300 Monthly Personal Volume (PV) 300 2 Active Legs 1,250 Team Volume (TV) 250 250 1,250 TV Fragrance Senior Premier Elite Platinum Team Leader Elite Consultant P. 19 Qualifications: 600 600 Monthly Personal Volume (PV) 2,500 Team Volume (TV) 2 Active Legs (1 @ Sr. Consultant or higher) 2,500 TV Fragrance Senior Premier Elite Platinum Team Leader Platinum Consultant P. 20 Qualifications: 900 900 Monthly Personal Volume (PV) 5,000 Team Volume (TV) SC Senior Senior 2 Active Legs (2 @ Sr. Consultant or higher) 5,000 TV Fragrance Senior Premier Elite Platinum Team Leader Team Leader P. 23 Qualifications: 1200 1,200 Monthly Personal Volume (PV) 7,500 Team Volume (TV) Premier Premier 3 Active legs (2 @ Premier or higher) 7,500 TV Fragrance Senior Premier Elite Platinum Team Leader Paid-As Title vs. Career Title Paid-As Title • Your paycheck is determined by your Paid-As title • Your Paid-As title is determined by your monthly performance • Your downline will not see your Paid-As title • You see your downline’s Paid-As title (Why? so you can help them) Career Title • Career Title is the highest title you have achieved, it’s your recognition title • Advancements to a new title occurs in the same month as qualification • Up to Platinum, title never drops • For Team Leader and higher – Kept as long as you are paid-as your title for 3 out of the last 12 rolling months • Emotional win! What is a Premier Leg? YOU A “Leg” that has a Paid-As Premier or higher anywhere in it Premier Remember what an Active Leg is: A leg with one or more active Consultants anywhere in the leg How Many Premier Legs? YOU Premier Premier How Many Premier Legs? YOU Senior Platinum Premier Premier How Many Premier Legs? YOU Team Leader Legs count as Premier Legs Team Leader Team Leader Premier THE MONEY Gold Canyon New Plan Overview Generation Overrides Quick Start Advancement Matching Advancement Level Overrides Retail Profits Team Override PV Bonus Fragrance Consultants Team Builder Leaders 1 • Retail + PV Bonus 2 • Level Overrides 3 • Quick Start Sponsor 4 • Team Override 5 • Advancement Bonus 6 • Generation Overrides 6 Ways for Everyone to Earn More Personal Volume Old Percent New Bonus New Percent (Non-Fundraiser) ForPlan All • Current 1 25% 25% 600 26.5% 2% 27% 1,200 28% 5% 30% 2,400 29% 7% 32% 4,800 31% 9% 34% 6,000 33% 11% 36% • Retail + PV Bonus PV Fundraiser Bonus 1 Percent 9% • Current Plan 2,500 10% 4,000 1% 11% 5,500 1.5% 11.5% 7,000 2% 12% 8,500 2.5% 12.5% 10,000 3% 13% 11,500 3.5% 13.5% 13,000+ 4% 14% 1 P. 52 • Retail + PV Bonus Fundraisers Stay the Same 1 • Retail + PV Bonus 2 • Level Overrides 3 • Quick Start Sponsor 4 • Team Override 5 • Advancement Bonus 6 • Generation Overrides 6 Ways for Everyone to Earn More P. 11 Level Overrides Paid on Commissionable Volume Level SC Prem Elite Plat TL+ 1 3% 5% 5% 5% 5% 2% 3% 3% 2% 2% 2 3 2 • Level Overrides Commissionable Volume • All overrides are paid on the Commissionable Volume (CV) “really wholesale” rather than on retail volume – CV is 75% of Retail Price for non-fundraiser orders – CV is 50% of Retail Price for fundraiser orders • Increased Percentages on wholesale is better than small percentages on retail (Best Practices) 2 • Level Overrides Level 1 Old New Old New Old New Old New Old New Sr Demo Sr. Consult Gold Demo Premier Gold Demo Elite Mgr Plat Sr. Mgr Team Leader 10.00 22.50 25.00 37.50 25.00 37.50 35.00 37.50 45.00 37.50 15.00 15.00 22.50 25.00 22.50 15.00 10.00 15.00 Level 2 Level 3 TV OR 45.00 10.00 22.50 25.00 37.50 25.00 52.50 Old Plan pays on retail: $1000.00 New Plan pays on CV: $750.00 Page 38 50.00 75.00 80.00 120.00 How to Maximize Your Level Overrides • Keep selling – No selling = no sponsoring – Parties are best sponsoring opportunities • Sponsor those who want an income – Wholesale buyers reduce your $$ per Hour • Over Build to establish a strong foundation • Work more with your rising stars 2 • Level Overrides 1 • Retail + PV Bonus 2 • Level Overrides 3 • Quick Start Sponsor 4 • Team Override 5 • Advancement Bonus 6 • Generation Overrides 6 Ways for Everyone to Earn More Quick Start Sponsor Bonus Senior 3% +3%= 6% 3 Paid to the sponsor of new Consultant during their Quick Start period (90 days) Doubles your Level 1 Override based on your Paid-As Title Sr. Consultants 3%3% + 3% = 6% Sr. Consultants + 3% = 6% • Quick Start Sponsor Quick Start Sponsor Bonus Paid to the sponsor of new Consultant during their Quick Start period (90 days) Premier 3% +3%= 6% 5%+5%=10% 3 5% +5% =10% • Quick Start Sponsor Doubles your Level 1 Override based on your Paid-As Title Sr. + 3% = 6% 3% xConsultants 2 = 6% for Sr.3% Consultants Premier 5% + 5% = 10% How to Maximize Your QS Bonus • Keep sponsoring new people • Teach them how to sell and earn high retail profits • High volume new sponsor = high QS bonus 3 • Quick Start Sponsor 1 • Retail + PV Bonus 2 • Level Overrides 3 • Quick Start Sponsor 4 • Team Override 5 • Advancement Bonus 6 • Generation Overrides 6 Ways for Everyone to Earn More Team Volume Override Volume Override of 2% 2% Team is paid to Paid-As Team Leaders or higher on their entire Personal Team, infinitely deep Personal Team: you and your downline, down to the next Team Leader or above 4 • Team Override Team Volume Overrides + Levels 2% 5% Level 1 3% Level 2 2% Level 3 4 • Team Override Double Dipping! Team Leaders receive BOTH their Level Overrides AND their 2% TV Override 1 • Retail + PV Bonus 2 • Level Overrides 3 • Quick Start Sponsor 4 • Team Override 5 • Advancement Bonus 6 • Generation Overrides 6 Ways for Everyone to Earn More Premier Advancement Bonus Qualifications: Premier 300 300 Monthly PV 1,250 Team Volume (TV) 250 2 Active Legs 250 1,250 TV 5 • Advancement Bonus Premier Advancement Bonus $50 Premier 5 $50 • Advancement Bonus Sponsor must be Paid-As a Premier or higher in the same month Team Leader Advancement Bonus Qualifications: 1200 1,200 Monthly PV 7,500 Team Volume (TV) Premier Premier 3 Active legs (2 @ Premier or higher) 7,500 TV Team Leader Advancement Bonus Team Leader 5 $250 $250 • Advancement Bonus Matching bonus is paid to the first upline Team Leader or higher. They must be paid-as TL (or higher) MISCELLANEOUS ITEMS Cancellation Policy • 900 PV in a rolling 9 months window – We call it “9 in 9” Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 50 200 75 300 0 50 100 125 75 0 0 100 0 0 0 0 0 0 925 825 975 PV • When cancelled, permanent loss of downline and title • Downline and customers are compressed to next upline • Can rejoin at any time under same sponsor One Career Plan for ALL Countries Benefits: • • • • • • One Career Plan One set of requirements for all countries Simplifies teaching the Career plan across borders One collateral for all countries Combined Team Meetings Remember Overrides are paid on CV (which is Wholesale) US: $18.98 (26 oz. Heritage) Qualifying Volume 55 CDN: $22.00 (26 oz. Heritage) PV: 18.98 TV: 18.98 PV: 18.98 TV: 18.98 # of Candles Sold Retail Sales PV, TV US 64 $1,215 1215 CDN 64 $1,408 1215 Qualifying Volume One Career Plan for ALL Countries • Commission and PV Bonus is paid off the Retail sale amount – Commissions & PV Bonus = Retail – Overrides = Wholesale # of Candles Sold Retail Sales PV, TV Retail Commission PV Bonus Commission Payout US 64 $1,215 1215 25% 5% $364.50 CDN 64 $1,408 1215 25% 5% $422.40 • You are paid in your home currency - Breakdown shown of earnings in each volume currency Paying Commissions Converted to your country $ at time of payment $4,560 USA $ 3,500 CDN ¥200,000 Yen £800 Pounds Paying Commissions Converted to your country $ at time of payment $4,560 USA $ 3,500 CDN ¥200,000 Yen £800 Pounds Fundraiser Program • Same as past – Amount Organization receives – Amount Consultant receives – Requirement for Consultant: $2,700 & Certified • Fundraiser volume will pay out the full Career plan at 50% of retail volume “wholesale” (instead of 75% of wholesale for non-FR) • 100% of FR volume counts toward your PV, TV Old Plan vs. New Plan EXAMPLES Sr. Demonstrator (Old Plan) Old Plan New Plan Premier Consultant 1200 1200 $51.50 ahead 500 500 $1,200 x 25%= $300 Retail Profit $1,200 x 3% = $36.00 PV Bonus $1000 x 1% = $10.00 Level Override 500 500 $1,200 x 25%= $300 Retail Profit $1,200 x 5% = $60.00 PV Bonus $750 x 5% = $37.50 Level Override Gold Demonstrator (Old) Old Plan New Plan Premier Consultant 1200 1200 500 500 500 $1,200 x 25% = $300 Retail Profit $1,200 x 3%% = $36.00 PV Bonus $1500 x 2.5% = $37.50 Level Override $42.75 ahead 500 500 500 $1,200 x 25% = $300 Retail Profit $1,200 x 5% = $60.00 PV Bonus $1,125 x 5% = $56.25 Level Override Sr. Manager (Old) PV: $1200 Level 1: 2,000 Level 2: 3,000 Level 3: 2,000 Old Plan New Plan Team Leader Ret. Profit: $360 Level 1: $90 Level 2: $75 Level 3: 20 ------------------$545 Ret. Profit: $360 Level 1: $75 Level 2: $68 Level 3: $30 TVO: $123 ------------------$656 $111.00 ahead TRANSITION PLAN Earning More / Earning Less When a company changes its Career plan, some will earn more and some will earn less in the beginning Subsidy • Some will earn less under the new plan until they adjust – Will pay the higher of the new plan or the old plan based on the percentages below • Percentages are applied to the shortfall, if any – 6 months duration – Minimum $20 shortfall – Must be Paid-As Senior Consultant or above Sep Oct Nov Dec Jan Feb Mar 100% 90% 80% 70% 60% 50% 0% OLD Plan $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 NEW Plan $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 Subsidy $1,000 $900 $800 $700 $600 $500 0 6 Month Transition Plan Months: Sep Oct Nov Dec Jan Feb PV: Elite & above 450 450 450 600 600 600 PV: Platinum & above 450 450 450 800 800 800 TV: Team Leader & above Premier Legs: TL & above 5000 5000 5000 6000 6000 6000 1 1 1 2 2 These relaxed requirements are for title maintenance only, full requirements must be met to advance. 2 New Title Transition • Starting Career titles are determined by highest modeled Paid-As title during May, June, and July, 2011 – Under relaxed PV rules • Your starting title does NOT affect your income – Your monthly Paid-As Title determines how you are paid Transition Plan • Charter Demonstrators – No special adjustment or benefits offered under the new plan • Incentive Programs – Current trip remains in force – not affected by new plan – Leadership Bonus Program to be discontinued with a transition plan – Annual recognition to be announced at convention • New reporting system – New system will provide significant improvements in reporting, visibility, etc. What to Expect • Confusion as you learn the new plan and adapt – Need to learn how the new plan works – Need to learn how to work the plan to your benefit • Likely to happen – – – – Sponsoring will increase Sales will follow Long term: new leaders will emerge Retention will improve Career Path to Team Leader Review Fragrance Senior Premier Elite Platinum Team Leader No PV 0 Active Leg 250 PV 1 Active Leg 300 PV 1250 TV 2 Active Legs 600 PV 2500 TV 2 Active Legs (1 @ Senior) 900 PV 5000 TV 2 Active Legs 1200 PV / 7500 TV 3 Active Legs (2 @ Premier) 3 4 1 2 (2 @ Senior) 5 6 Rewarding Leaders for Leading LEADER CAREER PATH “Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others.” — Jack Welch Leadership Career Path P. 32 P. 37 Senior Team Leader Qualifications: 1,200 Monthly PV 7,500 Team Volume (TV) 3 Active legs (1 @ Team Leader) 75 Sr. Team Ldr. Business Ldr. Executive Sr. Executive VP Sr. VP Exec VP Sr. Exec VP P. 37 Senior Team Leader TV – Team Volume Total personal volume from the Consultant themselves and their entire personal team. Personal team includes your PV and your entire team down to the next Team Leader. 76 Sr. Team Ldr. Business Ldr. Executive Sr. Executive VP Sr. VP Exec VP Sr. Exec VP P. 38 Business Leader Qualifications: 1,200 Monthly PV 7,500 Team Volume (TV) 3 Active legs (2 @ Team Leader) 25,000 Downline Volume (DV) 77 Sr. Team Ldr. Business Ldr. Executive Sr. Executive VP Sr. VP Exec VP Sr. Exec VP What is Downline Volume? Business Leader Downline volume (DV) is your personal volume and everyone below you infinitely deep 7,500 Team Leader 7,500 Team Leader 7,500 22,500 DV 78 P. 40 Executive Qualifications: 1,200 Monthly PV 7,500 Team Volume (TV) 50,000 Downline Volume (DV) 3 TL legs (1 @ Sr. Team Leader or +) Sr. Team Ldr. Business Ldr. Executive Sr. Executive VP Sr. VP Exec VP Sr. Exec VP P. 42 Senior Executive Qualifications: 1,200 Monthly PV 7,500 Team Volume (TV) 100,000 Downline Volume (DV) 4 TL legs (2 @ Business Leader) Sr. Team Ldr. Business Ldr. Executive Sr. Executive VP Sr. VP Exec VP Sr. Exec VP P. 43 Vice President (V.P.) Qualifications: 1,200 Monthly PV 7,500 Team Volume (TV) 200,000 Downline Volume (DV) 5 TL legs (2 @ Executive) Sr. Team Ldr. Business Ldr. Executive Sr. Executive VP Sr. VP Exec VP Sr. Exec VP P. 44 Senior V.P. Qualifications: 1,200 Monthly PV 7,500 Team Volume (TV) 400,000 Downline Volume (DV) 6 TL legs (3 @ Executive) Sr. Team Ldr. Business Ldr. Executive Sr. Executive VP Sr. VP Exec VP Sr. Exec VP P. 45 Executive V.P. Qualifications: 1,200 Monthly PV 7,500 Team Volume (TV) 800,000 Downline Volume (DV) 7 TL legs (4 @ Executive) Sr. Team Ldr. Business Ldr. Executive Sr. Executive VP Sr. VP Exec VP Sr. Exec VP P. 46 Senior Executive V.P. Qualifications: 1,200 Monthly PV 7,500 Team Volume (TV) 1.5M Downline Volume (DV) 8 TL legs (4 @ Sr. Executive) Sr. Team Ldr. Business Ldr. Executive Sr. Executive VP Sr. VP Exec VP Sr. Exec VP Leadership Career Path P. 32 1 • Retail + PV Bonus 2 • Level Overrides 3 • Quick Start Sponsor 4 • Team Override 5 • Advancement Bonus 6 • Generation Overrides 6 Ways for Everyone to Earn More What is a Generation? P. 29 When a Team Leader promotes out, everyone in their team becomes a generation to you. Lisa 2% Sue Sue 3% 6 • Generation Overrides P. 29 Generation Overrides • Sue promotes to Team Leader • Lisa gets a raise! • 3% Generation Override on Sue’s entire team • Replaces the 2% TV Override Lisa previously received on Sue’s team Lisa 2% Sue Sue 3% 6 • Generation Overrides Generation & Level Overrides 5% Level 1 Double Dipping! 3% Level 2 • Lisa continues to receive her Level 1 – 3 Overrides as before 2% Level 3 • Lisa still receives her 2% Team Volume Override on those remaining in her Personal Team Generation Overrides Gen 1 Gen 2 Gen 3 Gen 4 STL BL EXEC Sr EXEC VP Sr VP Exec VP Sr EVP 3% 3% 3% 3% 3% 3% 3% 3% 2% 3% 3% 3% 3% 3% 3% 2% 3% 3% 3% 3% 3% 2% 3% 4% 4% 4% 3% 4% 5% 5% Gen 5 6 • Generation Overrides Grace Months • When you promote out a new Team Leader from your Personal Team: – In the month of promotion, their TV is included in yours – In the following 2 months, your TV maintenance requirement is 50% of normal • • • • 6 Team Leader or higher: Platinum: Elite: Premier: • Generation Overrides 3,750 TV 2,500 TV 1,250 TV 625 TV How to Maximize Generation Overrides • Promote new Team Leaders to increase your income – Allows you to balance your time better • Keep sponsoring and building your Personal Team • Teach your Team Leaders to promote out their own Team Leaders – This is the “secret” of highly successful leaders 6 • Generation Overrides Award Levels Bronze Business Leader (or above) 40k DV Silver Sr. Executive (or above) 150k DV P. 53 Gold Sr. VP (or above) 600k DV P. 38 Business Leader Qualifications: 1,200 Monthly PV 7,500 Team Volume (TV) 3 Active legs (2 @ Team Leader) 25,000 Downline Volume (DV) 95 Sr. Team Ldr. Business Ldr. Executive Sr. Executive VP Sr. VP Exec VP Sr. Exec VP Award Levels Bronze Business Leader (or above) 40k DV Silver Sr. Executive (or above) 150k DV P. 53 Gold Sr. VP (or above) 600k DV P. 42 Senior Executive Qualifications: 1,200 Monthly PV 7,500 Team Volume (TV) 4 TL legs (2 @ Business Leader) 100,000 Downline Volume (DV) Sr. Team Ldr. Business Ldr. Executive Sr. Executive VP Sr. VP Exec VP Sr. Exec VP Award Levels Bronze Business Leader (or above) 40k DV Silver Sr. Executive (or above) 150k DV P. 53 Gold Sr. VP (or above) 600k DV P. 44 Senior V.P. Qualifications: 1,200 Monthly PV 7,500 Team Volume (TV) 6 TL legs (3 @ Executive) 400,000 Downline Volume (DV) Sr. Team Ldr. Business Ldr. Executive Sr. Executive VP Sr. VP Exec VP Sr. Exec VP Car Program Requirements • Meet qualifying requirements for 4 consecutive months • Promote 1 new first generation Team Leader after you have achieved the required title • Buy an authorized car for your award level • Monthly award amount will be paid in commissions Car Program Maintenance • If insufficient Downline Volume: 75% • If Paid-As Sr. Team Leader: 50% • If Paid-As TL for 3 consecutive months: must requalify Car Program Upgrades • If a car award recipient later qualifies for a higher car award, will receive the higher car award amount until the original car is 36 months old • After 36 months, must purchase a replacement vehicle at the higher car award level LET’S REVIEW Page 103 New Plan Advantages • New Consultants earn more – – – – – Higher retention Higher volumes Higher commissions to upline Emotional Wins! Paid-As title vs. Career Title New Plan Advantages • Baby steps in early career path – – – – – More people moving up Fewer failures / more successes Higher retention More opportunities for recognition Easier to coax people to stretch just a little more New Plan Advantages • Career path designed as a “game plan” – Coach each person to advance one step higher – Crystal clear what they need to do – Higher earnings at each new step New Plan Advantages • Deeper pay for builders – – – – Rewards for helping their rising stars succeed Is helping others worth it? YES!!! Better retention of real builders Higher dollar-per-hour for real builders • Will spend more time on their business if it is worth it New Plan Advantages • Leaders rewarded for helping others succeed – Generation pay starts where your top performers are even if they are not frontline to you – Rewarded for helping your great performers become super performers – Much deeper pay through Generation Overrides New Plan Advantages • World class / Global plan – Allows Gold Canyon to expand internationally – Plan competes with top plans of the world – Has what leaders want Gold Canyon Career Plan Realize Your Dreams!