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Mannatech’s new enhanced compensation plan
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Why the need to enhance? Mannatech pays out a total 42% in commissions and incentives. When looking at the compensation plan we found that there was some areas paying non-productive money Mannatech pays out 42% in commissions and incentives, and always has done so. This is one of the very highest in the industry, and something that Mannatech is very proud of and will retain! However, over the past year or so many Mannatech leaders felt they were not suitably being rewarded for their long term commitments and efforts. Non productive money was being paid to those not interested in the compensation plan so Mannatech has streamlined its plan making it even move productive. 2
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So where was this money being rewarded?
Team Bonus was being used as a targeted amount against product purchase price. This did not encourage business growth. Unilateral payments were not effectively paying on level 1-5 Many customers were receiving the Team Bonus as an offset against product orders. This targeted amount was holding customers back from sharing the Mannatech opportunity in fear of losing this money They also found that the Unilateral payments on level 1-5 were being paid for no effort which did not encourage any activity 3
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The compensation plan enhancements
Insert pic The compensation plan enhancements 4
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It’s simpler than before
Team Bonus A$90 Must Be Qualified 100PV 600 GPV No more than 65% and 390 GPV from one leg! It’s simpler than before The new Team bonus amount is A$90, but it is now paid ON TOP of all other income, so does not act as a cap to limit your income. The new plan pays anyone who is an associate or Regional Director with a 100 PV, a guaranteed amount of AUD$90 every BP in which they have 600 GPV or more with no more than 65% (390PV) coming from any one leg. So with the new Team Bonus added on top, if you structure your business correctly, you can certainly earn a great income from the outset! Under the new plan you can now earn all bonuses without any ceiling! PLUS you can earn all the other bonuses such as the member bonus, direct bonus, automatic order bonus, leadership bonus and team development bonus on top of this guaranteed amount. AND now that there is PV on sign up packs all the activity in your organisation will contribute towards your qualifications, making this bonus ever easier to earn! 5
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Team Development Bonus
By helping your team earn a Team Bonus you will earn a Team development bonus of A$12 as the first qualified upline. Another A$12 is given to the second qualified upline. Each Team Bonus earned by a qualified Associate generates Two Team Development Bonuses. The first generation will pay to the first Team Bonus earner or RD and above. The second generation will pay to the first RD and above from the 1st generational Team Development Bonus earner. The first and second generation earners will receive AUD $12 each So now that it is even easier to earn a Team Bonus take a look at your tree diagram and see who you can help. By helping them you help yourself 6
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Earn right from the get go!
A$90 Team Bonus A$12 Team Development Bonus A$75 Pack Bonus (Direct) (Multiple times) 3% AO Bonus on amounts paid A$400 Power Bonus (multiple times) So let’s look at some of the early income that can be earned right from the get go! 7
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Organisational Income
**PV now on ALL packs** Makes it easier to earn: Team Bonus Leadership Lifestyle Rewards Now that there is PV on all packs it is so easy to take advantage of: Team Bonus New Leadership levels and the bonuses attached to each of these The new Lifestyle bonuses that start at National Director level and get higher as you go up in Leadership level 8
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Immediate Income It pays more to be a Champion All Star Associate
Enhancements to the Direct Bonus will mean higher bonuses to the enroller if you are a Champion All Star. The Direct Bonus is also paid to the 1st and 2nd generational up line leaders. Training certificate of A$20 in All Star packs Firstly, it pays more to be a Champion All Star Associate The member bonus is 20% if you are a qualified Champion All Star but 15% if you are a preferred associate. Similarly the Direct bonuses on packs are higher for an All Star enroller e.g.. If you are an All Star and you recruit someone on the $498 Champion All Star pack you earn $75, whereas if you recruit the same person on the same pack, but you are a preferred associate you earn $50. Secondly, a Direct Bonus is also paid to the 1st and 2nd generational up line leaders. Thirdly, a Training Certificate is included in every Champion All Star Pack. This certificate can be used by the new person by presenting to anyone who is a National Director or higher, in “payment” for training provided. The person providing the training then presents the certificate to our Customer Service office who will make the training payment to them in their next commission payment cheque. 9
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Summary of bonuses Read from chart. 10
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Summary of bonuses In BP8 we see the Leadership generational bonuses increasing from 4% to 5% on your first generation leaders and an increase from 2% to 4% on second generation leaders. PD’s will see an increase on their Primary APO, which will go from 7% up to 8%. 11
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Lifestyle Bonuses Paid every BP to National Director level and above
Paid on top of all product and pack earnings ND A$400 ED A$875 PD A$2,000 Lifestyle bonuses have been introduced and paid every BP to Leaders from the ND level upwards They are paid on top of product and pack earnings and based on total GPV (including PV/APO from packs and product orders) ND A$400 / NZ$440 / SG$500 ED A$875 / NZ$965 / SG$1095 PD A$2000 / NZ$2200 / SG$2500 12
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Every time you qualify as a National Director not only will you be rewarded with a lifestyle bonus of $400, you will also be impacting the lives of 60 children through the GFR program. Each time you qualify to the level of Executive Director you will receive a lifestyle bonus of $875 and impact 200 children. Each time you qualify as a Presidential Director you will receive a lifestyle bonus of $2,000 and impact 600 children 13
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The Presidential Development bonus will reward you for developing PD’s beneath you.
It was previously paid out on a share basis however from BP8 will now pay as a fixed bonus amount of $600 AUD per PD you develop. 14
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Mannatech loyalty program
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Loyalty Program Better rewards for loyal customers
We are now offering a 20% Loyalty Credit rather than a 10% discount Associate pay wholesale price for all orders Earn credits every 3 consecutive BP’s Receive 20% credit of the total of those orders No PV or APO is attached on loyalty credit orders One Year Expiration Mannatech found that the discounted 10% AO did not create constant consumers, so they wanted to create a program that rewarded loyal customers better. The new Loyalty program has been improved so that the Mannatech Associate base and loyal customers double their benefits and earn loyalty points to the value of 20% of the product purchase price of the 3 prior consecutive Automatic orders. The existing 10% Automatic order price has now been removed so all Mannatech Associates will now be charged the Associate price for all orders. Earn the credits on the product value ONLY of the 3 prior consecutive automatic orders. Credits can only be applied to a “one-off” product order type, which can ONLY be placed by calling Customer Service this order can combined with your AO to save shipping. The one off loyalty points order must be no greater $ value than the Loyalty points accumulated. They can be less and those un-utilised credit points carry forward until they are either used or expire. One off Loyalty point orders do not earn any PV or APO. The loyalty order can be sent with your regular automatic order so as to avoid extra shipping costs – or can go separately- but will attract normal shipping charges. 16
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Loyalty Program Total order value over 3 BPs worth A$600
Business Period 1 Business Period 2 Business Period 3 Your automatic order Your automatic order Your automatic order Order value $200 Order value $200 Order value $200 Loyalty credit $40 Loyalty credit $40 Loyalty credit $40 Total order value over 3 BPs worth A$600 20% loyalty credit over 3BPs worth A$120 Applies towards getting a FREE product of equivalent dollar value Note: product purchases using credits have no APO attached For example, let’s say each Automatic order has a product value of $200. You will receive a A$40 credit from each of those orders giving you a total of $120 that can be used to purchase future product or can be accumulated over a year and used for a special occasion such as a Birthday or a Christmas gift. So the benefits have actually doubled from 10% - 20% . Please note that each AO does not have to be the same value just that it is consecutive. 17
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Who is Automatically opted in to the new Loyalty Program ?
All new Associates and members who join Mannatech from BP8 All Associates who hold a leadership level of RD or above as at the start of BP8 Anyone who has earned a Team Bonus in BP 6 or 7 continued…… If you are one of the following people: All new Associates and members who join Mannatech from BP8 All Associates who hold a leadership level of RD or above as at the start of BP8 Anyone who has earned a Team Bonus in BP6 or 7, you do not have to do anything to be a part of the Loyalty Program. You will AUTOMATICALLY be opted in straight away! But anyone else can also opt in too by either contacting Customer Service or making the change on the dashboard of your Mannatech account when you log in. 19
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Who is Automatically opted in to the new Loyalty Program ?
Any Associate who earns a Team Bonus for the first time from BP8 onwards. Any Associate who becomes a leader for the first time from BP8 onwards. Any Associate who is not included in the above groups and who ceases to hold an AO as at or after BP8. Associates who do not fall in the above category need to choose to opt in Continuing people who are opted in: Any Associate who earns a Team Bonus for the first time from BP8 onwards. Any Associate who becomes a leader for the first time from BP8 onwards. Any Associate who is not included in the above groups and who ceases to hold an AO as at or after BP8. So, if you are not in any of these groups – REMEMBER you can still opt in too by either contacting Customer Service or making the change on the dashboard of your Mannatech account when you log in. If you have an associate who does not fall in the above they will need to choose if they would like the 20% or 10%. It works just like a frequent flyer program - pay now get something free later. 20
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Summary In summary… Calculations to date have indicated that on average, most people will earn anywhere from 2- 26% higher than previously if they have a leadership level. There will of course be some who do not earn at these levels but now with the changes to recurring Power bonus, a more effective team bonus and PV on packs to assist achievement of leadership levels – everyone will have a greater opportunity to increase earnings through both recruitment and faster leadership growth. 21
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