Canada Leaders:

As December fast approaches, I wanted to communicate in detail the pricing and point changes taking effect.

These changes are designed to have one system for OTG and NFR that pays correctly for the efforts produced. You should also expect changes to the points leading to rank achievements.  As we analyze the effects of these changes on your business, there are a couple of key points to note.

  1. NFR pricing and points will not change from the November price changes. As a whole, this will mean between 50-60% of market sales will remain unaffected.
  2. Personal care and household care products will have a slight price increase to accommodate for the 5, 10, & 15% Smart Ship and Save discount program. Commission points are also discounted at the same rate the price is discounted. This product grouping represents about 23% of sales that will be affected Dec. 1.

– E.g. Antioxidant Gel- Current price and pts S31.99 and 29 pts. New price $33.99 a la carte with 24 points. Where the current points are not converted, the new point value will be converted at an approximate exchange rate of 1.3.

  1. The biggest effect will be on BioCell products, a tremendous success for the health and growth of many Canadians.
  • Price Change- $155 CAD to $164.99 CAD
  • On a 5% discounted Smart ship, the price will be $156.75 CAD
  • Note that at the current exchange rate the price is set at about $128.69 USD and for a superior product is a great price. We will continue to offer this discount as long as we must require a surcharge.

Point Changes

Because we have been approved to keep a lower price, we will also be reducing the points to 110. This is 10 points lower than the US, but will be offset for payout and rank with the following:

– With our new conversion of all points, the 110 will be converted in the following way.

For example:

  Pts 10% payout
Current 140  $14.00
New base 110  
Converted 143  $14.30

 

Essentially, SMs will be getting paid slightly more despite lower points under the new plan.

Qualification

This will also affect qualifications and Team Builder Bonuses. With the points adjusting to a standard North American value, there will be an adjustment when qualifying for ranks and bonuses. We announced at launch a couple of reasons to drive in December to overcome the adjustment, and have an updated announcement.

  1. Beginning with the December commission period paid in January, we will be converting the TBB payouts correctly. This means a higher TBB bonus in CAD that is on par with the US payouts in USD.
    1. For example, currently a $500 CAD bonus is paid for D1 rank qualification. This bonus will be adjusted to $650 CAD to reward equally to the $500 USD bonus paid in the U.S.
  2. We will be honoring the announced bonuses for payouts in December
    1. If an SM drops one rank in December from November 2017, we will pay the Team Builder Bonus at the rank hit in November.
    2. If an SM maintains their rank from Nov to Dec of 2017, we will pay a 25% bonus on the Team Builder Bonus.
    3. If an SM increases their rank from Nov to Dec of 2017, we will pay a 50% bonus on the Team Builder Bonus.
  3. To help with the transition, for the month of December we will keep the BV (Qualifying volume) at the 140 mark on 4 pack Liquid BioCell and the 70 mark for the 2 pack, despite the decrease in CV (Commissionable Volume) to 110.

We hope this course correction will pay dividends in the short and long term as we strive to continue the momentum you have created. With the changes in point structure and pricing, we will be able to have a more congruent commission payout for all of Canada.

Thank you again for all of your amazing leadership during this Launch phase of Canada.

Sincerely,

David Goodman