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Compensation Plan GLOBAL May 8, 2017

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Page 1: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

Compensation Plan

GLOBAL

May 8, 2017

Page 2: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

1. Create the most attractive and

competitive compensation plan in

the industry.

GOALS

Page 3: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

2. Simplicity:

Do This

Get That

GOALS

Page 4: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

3. Incentivize proper behaviors to create a long-term,

profitable and sustainable business.

GOALS

Be a

product

of the

product

Servicing/

retaining

customers

Create

volume

and sales

Develop

leaders

Expand

your

Associate

team

RetentionSell

product

Page 5: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

TIMELESS PRINCIPLES

Page 6: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

Growth comes from sales,

retention and recruiting.

Page 7: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

First 90-day goals must

be achievable:• Rewards must be proportional to time and

energy spent.

• More opportunities for quick advancement

and recognition.

• Improve retention.

Page 8: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

The only way to advance,

is to lift others.

“You can have everything in life you want, if you

will just help other people get what they want.”

– Zig Ziglar

Page 9: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

Success comes from

developing and keeping

leaders.

Page 10: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

The dream is real.

Page 11: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

NEW COMPENSATION PLAN

Page 12: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

NEW COMPENSATION PLAN

NEW TERMS

Monthly system will replace the 4-week Business Period.

Commissionable Volume (CV) will replace APO.

PPV Personal order + your customer volume.

GPV PPV + your volume on the first five levels.

DPV Your PPV + all Downline volume

Page 13: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

COMPENSATION PLAN ENHANCEMENT

DPVAll Downline+

GPVYour volume

on the first

five levels

+PPV

Personal

volume

Customer

volume+

Page 14: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

LEADERSHIP PATH

Page 15: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

PATHWAY TO PRESIDENTIAL OVERVIEW

ASSOCIATE DIRECTOR PDEXECUTIVE

DIRECTOR

Page 16: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

PATHWAY TO PRESIDENTIAL

Page 17: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

PATHWAY TO CROWN OVERVIEW

PRESIDENTIALS CROWN

PLATINUMPLATINUM

PRESIDENTIALS

Page 18: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

PATHWAY TO CROWN

Page 19: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

6 WAYS TO EARN INCOME

Page 20: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

BONUS 1: CUSTOMER/POWER SELLER BONUSES

Power Seller Bonus*Tiered Customer Commissions Based

on Customer Volume

Tier 1 150-499 PPV 5% Power Seller Bonus

Tier 2 500-999 PPV 10% Power Seller Bonus

Tier 3 1,000 or more PPV 15% Power Seller Bonus

* Includes your own Associate Purchase(s) plus your Customer Volume

Page 21: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

BONUS 1: AUTOSHIP QUALIFIED (AQ) CUSTOMER BONUS

AQ = Customer with an Auto Order of 100 or more Point Volume

Count of AQ Customers

(minimum 100 PV each)

$ Per

Month

AQ Personal 5 AQ Customers $75/mo

AQ Team

1. You must be AQ Personal qualified.

2. Enroll 2 Associates who achieve AQ

Personal requirements.$300/mo

Page 22: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

BONUS 2: FIRST ORDER BONUS

FIRST ORDER

PRODUCT

VALUE

BUNDLES

Bundle A

Bundle B

Bundle C

PAY TO

ENROLLER

BUNDLES CAN BECOME

AUTO ORDERS

ALL FUTURE ORDERS WILL HAVE FULL COMMISSIONABLE VOLUME

15%

Building Your Organization

First Order Value Bundles will be assigned a commissionable volume of 60%.

Page 23: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

BONUS 3: MENTOR BONUS

Monthly Bonus

Gold Associate – 750 DPV $30

Director – 1,500 DPV $40Silver Director – 2,500 DPV $50Gold Director – 4,000 DPV $75

Executive Director (and above) –6,000 DPV

$100

Mentor Bonus pays a monthly commission to the ENROLLER of equal or higher rank. If the ENROLLER has a lower rank, their bonus is limited to the

corresponding title bonus of their rank. USD Shown.

Page 24: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

BONUS 4: UNI-LEVEL PAYOUTS/INFINITY BONUS

SA

300 DPV

GA

750 DPV

D

1,500 DPV

SD

2,500 DPV

GD

4,000 DPV

E

6,000 DPV

SE

10,000 DPV

GE

20,000 DPV

PD

40,000 DPV

BPD

80,000 DPV

SPDand above

Level 1 3% 4% 5% 6% 7% 8% 8% 8% 8% 8% 8%Level 2 2% 3% 4% 6% 8% 8% 8% 8% 8% 8%Level 3 2% 4% 6% 8% 8% 8% 8% 8% 8%Level 4 3% 4% 6% 6% 6% 6% 6% 6%Level 5 5% 5% 6% 6% 6% 6%Level 6 4% 4% 5% 6% 6%Level 7 4% 6% 6%

INFINITY

BONUS

w/Cap

UNILEVEL

Side Volume Bonus

1% 1% 1% 1% 1% 1%Big Leg Bonus

Page 25: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

BONUS 4: INFINITY BONUS—CAPS

E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP

Big Leg

Infinity Bonus

(with Cap)

1%

$200

1%

$400

1%

$600

1%

$800

1%

$1,000

Side Volume

Infinity Bonus

(with Cap)

1%

$2,500

1%

$5,000

1%

$10,000

1%

NO

CAP

1%

NO

CAP

1%

NO

CAP

1%

NO

CAP

1%

NO

CAP

Page 26: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

BONUS 5: LEADER CHECK MATCH

SE10K

GE20K

PD40K

BPD80K

SPD160K

GPD240K

PPD320K

1*PPD640K

2*PPD1.25M

3*PPD2.5M

4*PPD5M

CP10M

Cap per

Downline leader $250 $500 $750 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $5,000 $10,000

Gen 1 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%

Gen 2 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%

Gen 3 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

Gen 4 10% 10% 10% 10% 10% 10% 10% 10% 10%

Gen 5 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Gen 6 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

You earn check

match on ALL

Executive

Directors (6K)

and above.

A generation is defined as SE (10K) and above.

Page 27: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

BONUS 6: GLOBAL POOL BONUS

Pays on all qualified and active SPDs and above.

Leadership Rank Shares

Silver PD 1

Gold PD 1.5

Platinum PD 2

1* Platinum 2.5

2* Platinum 3

3* Platinum 3.5

4* Platinum 4

Crown Platinum Ambassador 5

• Must maintain leadership rank for three consecutive months.

• Activity will be determined by consistently growing your business.

Page 28: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

QUALIFICATION CRITERIA

*Transition Qualification ends in January 2018

Silver

Associate

SA

Gold

Associate

GA

Director

D

Silver

Director

SD

Gold

Director

GD

Executive

Director

E

Transition PPV 100 PPV 100 PPV 150 PPV 150 PPV 150 PPV 150 PPV

DPV 300 750 1,500 2,500 4,000 6,000

DPV - Max Leg 60/40 180 450 900 1,500 2,400 3,600

Transition Active

Legs

(100 PPV = Active)

2 2 2 2 2 2

Page 29: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

LEADER LEVEL QUALIFICATION CRITERIA

*Transition Qualification ends in January 2018

SE

10K

GE

20K

PD

40K

BPD

80K

SPD

160K

GPD

240K

PPD

320K

1*PPD

640K

2*PPD

1.25M

3*PPD

2.5M

4*PPD

5M

CP

10M

Transition

PPV150 150 150 150 150 150 150 150 150 150 150 150

DPV 10K 20K 40K 80K 160K 240K 320K 640K 1.25M 2.5M 5M 10M

Max Leg

70/307K 14K 28K 56K 112K 168K 224K 448K 875K 1.75M 3.5M 7M

Transition

Active

Legs

2 3 3 3 3 3 4 4 4 4 4 4

Page 30: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

LEADER POINTS AND STRUCTURE

GE

20K

PD

40K

BPD

80K

SPD

160K

GPD

240K

PPD

320K

1*PPD

640K

2*PPD

1.25M

3*PPD

2.5M

4*PPD

5M

CP

10M

Leader Leg

Points0.5 1 1.5 2 2.5 3 3 3 3 3 3

BPD

80K

SPD

160K

GPD

240K

PPD

320K

1*PPD

640K

2*PPD

1.25M

3*PPD

2.5M

4*PPD

5M

CP

10M

Minimum

Structure

Required

1 Pt2 GEs

2 Pts

3 GEs

3 Pts4 GEs

4 Pts4 PDs

6 Pts4 PDs

8 Pts4 PDs

10 Pts4 PDs

12 Pts5 PDs

15 Pts

Page 31: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

DRAFT

Confidential Document of Comp Plan Concepts:

• Not for distribution

• Not finalized

• The requirements and rules are still being determined.

• This Comp Plan has not been formally approved.

Page 32: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

2016 U.S. INCOME AVERAGES STATEMENT

MANNATECH CAREER AND COMPENSATION PLAN

Page 33: Compensation Plan GLOBAL · Commissionable Volume (CV) will replace APO. PPV Personal order + your customer ... E SE GE PD BPD SPD GPD PPD 1*PPD 2*PPD 3*PPD 4*PPD CP Big Leg Infinity

2016 CANADA INCOME AVERAGES STATEMENT

MANNATECH CAREER AND COMPENSATION PLAN

Mannatech divides each year into 13 four-week Business Periods (BPs). An Active Associate is an Associate who has placed an order within a 365-day reporting period. In BP 2016–13, the total number of Active Associates (Associates with a minimum of 100 QV/PV in BP 13 OR Associates who earned commissions in BP 13) was 2,955.

1. The total number of Business Builders who received commissions in BP 2016–13 was 1,087 (Business Builder count).

2. Total number of Consumer Associates who had at least 100 QV/PV, but did not earn commissions in BP 2016–13 was 1,868. Please see the Mannatech Career and Compensation Plan for the definition of Personal Volume (PV).

3. Of the total Active Associates, 37% were “Business Builders” and 63% were “Consumer Associates.” The term “Consumer Associate” means Associates who only ordered product and did not earn income. Consumer Associates benefit from buying Mannatech products at a discounted price for themselves and their families. Some Consumer Associates may retail Mannatech products to others; however, this income is not included in the table above.

For the purposes of this Income Averages Statement, the term “Business Builder” means Associates who ordered greater than or equal to 100 PPV, sold products and earned income from their sales and sales made by their downline organization.

All income is earned on the sale of Mannatech products. No benefits or bonuses are paid or received solely from recruiting or sponsoring other Associates and no earning are guaranteed from mere participation in the Compensation Plan.

The figures above do not include any retail profit that an Associate may earn from selling Mannatech products to others. Associates must supply sales receipts to all retail customers and must maintain copies of sales receipts for at least two years. The figures above do not include expenses incurred by Associates in the operation and promotion of their Mannatech business. These expenses vary from Associate to Associate. By way of example, these expenses may include product samples, training, rent, travel expenses, telephone and Internet costs and other business-related expenses. The Associate earnings in the above chart are not necessarily representative of the income that an individual can or will earn through his/her participation in the Mannatech Compensation Plan. These figures should not be regarded as a guarantee or projection of actual earnings. Actual earnings depend on your individual efforts, the customer base available to you and the time devoted to your business. These factors differ from Associate to Associate.