THE PLAN
PERSONAL DISCOUNT
Your first step is to learn how to earn income from personal sales.
This is simple: show the catalogue to people you know and collect their orders. You earn up to 26% difference between the catalogue prices and Consultant prices. This is the first type of Faberlic Consultant income.
COMMISSION FOR GROUP SALES
Your second step is to learn how to invite new people
to join your team and get them interested in your activity. Soon you will be earning commission for your personal and personal group sales volume. This second type of income is the Performance Commission.
DIRECTOR BONUS
Your third step is to learn how to identify promising members of your Personal Group and help them to develop their leadership skills. Educate future leaders to look for newcomers and make them interested in our business. Motivate leaders in your team to make personal sales, so that your group can successfully develop, as the bigger your team is, the bigger your sales and income could be. Then after some time you can also get the third type of income: Director bonus based on the amount of the 23% branches in your downline.
PERFORMANCE COMMISSION
You can get the Performance Commission(PC) for your Personal Group Volume, if your personal group volume (PGV) is more than 100 points for the catalog period.
Under the terms of Faberlic’s compensation plan, Performance Bonus is divided between the Independent Consultants according to the difference between the percentages of their PC levels. For example, for a group with sales of more than 3,000 points, 23% PC is calculated for the Director (see table), which will be distributed among the team.
If there is a Vice-Director (PGV 1,500 points, 15% PC), the Director will receive the 8% difference (23% - 15% = 8%); if there is a Leader on the team (PGV 600 points, 9% PC), the Director gets 14% (23% - 9% = 14%), and so on.
As your team grows, so does your PGV, which increases your PC percentage
* This table uses the average value of a point, equal to $1.60
Important
All of the examples provided in this section are intended to illustrate how to calculate Performance Commission and combine it with income from gross retail margins under the Faberlic Sales and Marketing Plan. They are not intended to suggest an average achievement under the Plan. The examples are based on assumptions that may or may not apply to your circumstances. Actual results will depend on a number of factors and will vary from person to person. For example, net income will be determined after subtracting any applicable taxes and costs of overhead, including business expenses, that you may have. Your net profit may differ greatly from the examples below and will depend on many factors, including how efficiently you are able to conduct your business activities.
THE PLAN | PC DIFFERENTIAL CALCULATION
Performance commission is calculated every catalog period (the validity period of one catalogue). This is how it’s done: Personal Group’s sales volume for the period is multiplied by the corresponding percentage in the compensation plan, and the resulting sum of points is multiplied by the cost of one point. This is your team’s commission.
All compensation plan calculations are automatically performed and displayed in the Consultant’s personal account on faberlic.com
Important
All of the examples provided in this section are intended to illustrate how to calculate Performance Commission and combine it with income from gross retail margins under the Faberlic Sales and Marketing Plan. They are not intended to suggest an average achievement under the Plan. The examples are based on assumptions that may or may not apply to your circumstances. Actual results will depend on a number of factors and will vary from person to person. For example, net income will be determined after subtracting any applicable taxes and costs of overhead, including business expenses, that you may have. Your net profit may differ greatly from the examples below and will depend on many factors, including how efficiently you are able to conduct your business activities.
HOW IS A SPONSOR’S COMISSION CALCULATED ALLOWING FOR THE PC % DIFFERENCE?*
- Consultants A and B achieved a PGV of more than 100 points under the compensation plan, and they can get their PC for this catalog period. But Consultant A’s PC is larger than Consultant B’s PC, because A has a higher PC percent (6%) than B (3%). A’s Performance Commission for personal sales is calculated like this: 100 Pts x $1.60 x 6% = $9.60
- At the same time there is Consultant B, a member of A’s team, who achieved 100 points of PV and PGV and has 3% PC. For 100 points, Sponsor A’s PGV PC is calculated as the difference from Consultant B’s PC percentage, equal to 3% (6%-3%) so, 100 points x $1.60 x 3% =$4.80.
- While Consultant B’s PC for personal sales is calculated like this: 100 Pts x $1.60 x 3% = $4.80 and B doesn’t have sales made by his team, so his PV equals his PGV.
PC is calculated in the same way for any bonus level in the compensation plan, from 3% to 23%.
* This example uses the average value of a point, equal to $1.60
DIRECTOR BONUS
When a member of your Personal Group reaches Director qualification, the computer system automatically singles out their team as a new DIRECTOR BRANCH (23% BRANCH) separate from yours. This branch’s volume will not count as a part of your PGV anymore. You delegate the responsibilities for this branch to the new leader and start to earn the next form of Faberlic Consultant commission: Director bonus.
The size of your income directly depends on the amount of 1st generation director branches in your downline.
For example, a Gold Director has three 1st generation director branches. The Gold Director is able to earn commission for the three generations:
• 5% for the 1st generation;
• 1% for the 2nd generation;
• 0.5% for the 3rd generation.
The bonus is calculated if the Gold Director’s own PGV is more than 1,000 points, and PG maintains sales volume according to the required PGV in the compensation plan.
When you have created a stable and balanced team, in which less than 60% of a Group Sales Volume is made by one 1st generation director branch* and the advanced criteria of a Group Sales Volume(GV) is fulfilled, you are able to receive Advanced Bonus.
For example, a Gold Director has three first-generation director groups and GV is more than 20,000 Pts. The Gold Director is able to earn commission from all three generations of the downline, including Advanced Bonus:
• 5% from the 1st generation;
• 2% from the 2nd generation;
• 0.75% from the 3rd generation.
*The Rule of 60% - to receive Advanced Bonus no more than 60% of your GV must be created by one 1st generation director branch.
The advanced bonus is calculated if the Gold Director’s own PGV is more than 1,000 points, PG maintains sales volume according to the required PGV in the compensation plan, GV is not less than 20,000 Pts. and The Rule of 60% is fulfilled.
THE PLAN |DIRECTOR BONUS CALCULATION
Gold Director A achieved PGV of 3,000 points and has three 1st Generation 23% branches in her downline, and so she receives the full bonus for the three generations of her downline.
For the 1st generation, her commission is 5%: the total PGV of directors B, C, and D. So, the bonus is:
10,000 points x $1.60 x 5% = $800
For the 2nd generation, her advanced commission is 2%: the total PGV of directors E and F.
So, the bonus for the 2nd generation is:
7,500 points x $1.60 x 2% = $240
For the 3rd generation, her advanced commission is 0.75%:
3,500 points (G’s PGV) x $1.60 x 0.75% = $42
Important
All of the examples provided in this section are intended to illustrate how to calculate Director Bonus and combine it with income from gross retail margins under the Faberlic Sales and Marketing Plan. They are not intended to suggest an average achievement under the Plan. The examples are based on assumptions that may or may not apply to your circumstances. Actual results will depend on a number of factors and will vary from person to person. For example, net income will be determined after subtracting any applicable taxes and costs of overhead, including business expenses, that you may have. Your net profit may differ greatly from the examples below and will depend on many factors, including how efficiently you are able to conduct your business activities.
* This example uses the average value of a point, equal to $1.60
THE PLAN |DIRECTOR BONUS IF YOUR STRUCTURE’S DEPTH INCLUDES A 23% BRANCH
A leader with their own 23% branch from any depth of your structure can become your 1st generation director if there are no other Directors between that leader’s 23% branch and you (meaning leaders that have achieved the required PGV of 3,000 or more points in the current catalog period).*
EXAMPLE OF THE COMMISSION CALCULATION
Consultant F’s personal group sales volume goes up to Sponsor A for as long as Consultant F’s group hasn’t achieved 3,000 points worth of sales for the catalog period (23% of the compensation plan).
Once that happens, Consultant F’s group is divided into a separate 23% branch and the percentage of the calculated PC “goes up” for all Consultants until the next Director (in this case, A), regardless of their PGV in the compensation plan.
Director A receives the 5% director bonus for the combined Group volume of Consultants C, D, E, and F (4,800 points): 4,800 points x $1.60 x 5%
Director A’s total commission from the Group Volume (GV) of all 23% branches (C, D, E, and F) is $384
EXAMPLE OF THE QUALIFICATION CALCULATION
Consultant C is not a director, because she has a PGV of 500 points. This is a 23% branch with a Group Volume (GV) of 6,500 points, for which Director A gets a 5% Director Bonus of $520 (6,500 points x $1.60 x 5%).
But for Director A’s title, this is one 1st generation director.
*This rule applies when calculating the number of 1st generation 23% groups in all cases.
Important
All of the examples provided in this section are intended to illustrate how to calculate Director Bonus and combine it with income from gross retail margins under the Faberlic Sales and Marketing Plan. They are not intended to suggest an average achievement under the Plan. The examples are based on assumptions that may or may not apply to your circumstances. Actual results will depend on a number of factors and will vary from person to person. For example, net income will be determined after subtracting any applicable taxes and costs of overhead, including business expenses, that you may have. Your net profit may differ greatly from the examples below and will depend on many factors, including how efficiently you are able to conduct your business activities.
These examples use the average value of a point, equal to $1.60
THE PLAN | DIRECTOR BONUS FULL AND PARTIAL DIRECTOR BONUSES
Under the compensation plan, director bonuses are calculated in full (full bonus) if your personal group’s volume (PGV) is 3,000 points or more, and partially (partial bonus) if PGV is less than 3,000 points for the catalog period.
EXAMPLE FULL VOLUME AND PARTIAL DIRECTOR BONUS CALCULATION
FULL BONUS: Director A achieved a PGV of more than 3,000 points. Under the compensation plan, this means that the company will pay her the full 5% bonus from Director C’s PGV.
3,000 points х $1.60 х 5% = $240
Important
All of the examples provided in this section are intended to illustrate how to calculate Director Bonus and combine it with income from gross retail margins under the Faberlic Sales and Marketing Plan. They are not intended to suggest an average achievement under the Plan. The examples are based on assumptions that may or may not apply to your circumstances. Actual results will depend on a number of factors and will vary from person to person. For example, net income will be determined after subtracting any applicable taxes and costs of overhead, including business expenses, that you may have. Your net profit may differ greatly from the examples below and will depend on many factors, including how efficiently you are able to conduct your business activities.
PARTIAL BONUS: Director E achieved PGV necessary for Director bonus calculation in the compensation plan (not less than 3,000 points), but Director C achieved a PGV of 2,500 points, so his 5% Director bonus from junior Director E will not be calculated in full. Director C fell short of the full bonus calculation by 500 points (3,000-2,500). 500 points х $1.60 х 5% = $40
Director C’s full bonus would have been $240, but instead it is $240 - $40 = $200
These examples use the average value of a point, equal to $1.60
THE PLAN | QUALIFICATION BONUSES
Qualification bonus is a one-time reward from Faberlic for the growth of 1st generation Directors in your group.
The Qualification bonus is calculated once you confirm your status 8 times in the course of a business year (doesn’t have to be consecutive), which starts once you have reached the qualification for the first time.
Qualification status can be “Unconfirmed” or “Confirmed”. If you have the required number of 23% 1st generation branches in your group for a certain status during 1-7 catalog periods, your status is “Unconfirmed”. Your title will be “Confirmed” after the calculation of Qualification Bonus.
*If you have previously received the Director’s qualification bonus, the amount of the Senior Director’s qualification Bonus is $500. You can qualify as Senior Director without 1st generation 23% branches in case your PGV equals 5,000 Pts. or more.
THE PLAN | DEVELOPMENT BONUS
If you are a Diamond Director (or higher) and continue to do business in the company, you can earn an additional yearly reward called the Development Bonus.
This is 30% of all Qualification Bonuses in your Diamond Director structure earned in the past year.
If a new Diamond Director appears in your group, they will receive the Development Bonus for their own group themselves.
Important
All of the examples provided in this section are intended to illustrate how to calculate Development Bonus and combine it with income from gross retail margins under the Faberlic Sales and Marketing Plan. They are not intended to suggest an average achievement under the Plan. The examples are based on assumptions that may or may not apply to your circumstances. Actual results will depend on a number of factors and will vary from person to person. For example, net income will be determined after subtracting any applicable taxes and costs of overhead, including business expenses, that you may have. Your net profit may differ greatly from the examples below and will depend on many factors, including how efficiently you are able to conduct your business activities.
The Development Bonus is paid to a Consultant if the following requirements are met:
The Independent Consultant keeps the status no lower than Diamond Director, until the end of the last catalog period of qualification;
The Independent Consultant must add eight 1st generation 23% branches in the current year compared to the previous year.
The bonus is only paid for those Directors in the downline who kept their confirmed status in one of the last two qualification catalog periods (12th and 13th) of the current business year.
The total of all Qualification Bonuses in your team is:
Director: $1,000 x 8 = $8,000
Senior Director: $1,500 x 2 = $3,000
Silver Director: $1,500
Gold Director: $2,500
Ruby Director: $3,000
Total: $18,000
YOUR DEVELOPMENT BONUS IS:
$18,000 X 30% = $5,400
The Development Bonus for a new Diamond Director starts being calculated from the period the Diamond Director status was confirmed (Qualification bonus was paid).
The bonus is calculated at the end of the 13th campaign each business year.