Life Abundance Compensation Plan Template - Free Download | Page 2
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life’s abundance compensation plan
Commissionable vs.
Non-Commissionable Products
We sell two types of products: commissionable
products and non-commissionable products.
A commissionable product is one that pays out
a commission, while a non-commissionable
product never pays out a commission of any
type. The majority of the products that we sell are
commissionable.
As a general rule, products sold to customers are
commissionable. Examples of non-commissionable
products include sales aids like product catalogs,
sell sheets and product samples. Thus, with
regards to this document, non-commissionable
products are excluded. All references to products
in the Compensation Plan are applicable to
commissionable products only.
Commissionable Sales
Each commissionable product has an assigned
Commissionable Sales (CS) amount. The
Commissionable Sales is important because
most of the bonuses referenced in the rest of the
Compensation Plan are based upon a percentage of
Commissionable Sales (CS).
The CS amount varies by product, but it is always
less than the wholesale price of the product.
This is due to many factors, including different
manufacturing costs and the need to ensure Life’s
Abundance products remain competitively priced in
the marketplace.
For example, two products may both have a
wholesale price of $10.00. Let’s say Product A has
a CS of $8.00 and Product B has a CS of $7.00.
Product A may have a higher CS because it costs
less to manufacture than product B.
In the event that a product is sold for less than
the wholesale price, the CS is also reduced
proportionately. For example, if the wholesale price
of Product A is $10.00, with a CS of $8.00, and
Product A was sold for $7.50 during a special sale,
the CS on Product A for that sale would be reduced
to $6.00.
The CS amount for each product is listed in the Field
Rep Price List, which can be viewed or printed from
the “Business Center” section of your Replicator Site.
The next terms that are important to understand are
Personal Sales and Personal Commissionable Sales.
Personal Commissionable Sales
Personal Commissionable Sales (PCS) is the total
Commissionable Sales (CS) value of all products
purchased by you and your customers.
Understanding the Basics
Life’s Abundance offers a fair and highly comprehensive compensation plan. In fact, our
compensation plan has ve different ways you can earn money.
First, let’s become acquainted with the concepts that form the basic building blocks of the
compensation plan.
Life’s Abundance
®
Compensation Plan
source: lifesabundance.com
