Scentsy Compensation Plan

Definitions Team •  The total enrolled consultants under another consultant down to but

not including the next Director

Group •  A group begins with a consultant and includes all enrolled downline

Consultants and Directors

Generation •  The relationship between an upline Director and a downline Director.

The first Director in a leg is first generation. The next Director in that leg is 2nd generation, then 3rd generation, etc.

Breakaway •  When a Consultant is promoted to Director they “break away” from

their sponsor’s Team. Their Team Wholesale Volume (TWV) is no longer included in their upline Director’s TWV.

Definitions Downline Organization •  Same as a group

Level •  The layers of a downline organization

Frontline •  The first level of a consultant’s group

Leg •  Each frontline consultant and their respective

group

Definitions Retail Profit •  The 20% or 25% that a consultant earns in commissions

from personal retail sales is calculated from 100% of the retail price

Example: 25% commission on a $100 order (without shipping and taxes) would be $25.00

Personal Retail Sales Volume (PRSV) •  The commissionable value of products sold in a calendar

month by the company to a consultant or by the company to a consultant’s customer

Definitions Wholesale Volume •  Retail Sales Volume x 75% = Wholesale Volume

Personal Wholesale Volume (PWV) •  The wholesale volume of products sold in a calendar

month by the company to the consultant or by the company to the consultant’s customer

•  PRSV x 75% = PWV

Team Wholesale Volume (TWV) •  The sum of the PWV of each person on a team

Group Wholesale Volume (GWV) •  The sum of the PWV of each person in a group

(downline organization)

Definitions Active •  A consultant is considered active if they have at least

$150 in PRSV during the commission period

Rebate •  The amount paid to a consultant for a retail sale

represented as a percentage of the retail price

Bonus •  The amount paid out to leaders (Lead Consultant and

above) as a percentage of PWV on personal sales and the PWV of downline consultant’s sales

Definitions Rank •  The qualification level at which the

consultant’s compensation will be determined from month to month

Title •  The highest rank achieved

Understanding Team & Group

Team

1st Generation

Director

Your Team is everyone (including you) downline from you. Down to but not including the next Director (Generation)

2nd Generation

Director 3rd

Generation Director Group

Your Group is your Total Downline Organization. It includes all Directors (Generations)

YOU

TEAM

GROUP

1stGenera3onDirectors

2ndGen3rd

Gen

Team and Group are the same until you promote out your first Director

Title vs Rank for Pay •  You are paid based on your rank during the

commission period •  You receive a bonus on your frontline

consultant’s team wholesale volume (TWV) based on their title and your rank

•  Your bonus the consultant’s team is calculated the percentage you qualify for on your frontline consultant

Example: •  If you are a Superstar Consultant and have a Star Consultant (SC)

frontline to you but the SC only qualifies during the current commission period as a Lead Consultant then you would still be paid a bonus on the SC at the title of SC even though the SC would get paid at the rank of a Lead Consultant that month

Escential Consultant

•  Enroll with Scentsy •  Purchase starter kit for $99.00 •  Earn 20% commission on first $1000 of

PRSV

You Has purchased a kit

and enrolled in Scentsy

Certified Consultant • Do $1000 in cumulative PRSV as an

Escential Consultant •  Earn 25% rebate on PRSV •  Earn 5% additional when personal retail

sales reach $2000 during a commission period

25% commission on PRSV is now permanent for Certified Consultant and higher ranks. On the following illustrations it will not be shown

but can be assumed it is being paid out for those ranks

You Has sold $1000 in

PRSV since Enrollment

Lead Consultant •  $500 PRSV in the month •  $1000 GWV in the month • One Active Frontline Consultant or higher

– 2% on PWV – 2% on Frontline Escential or Certified

Consultant TWV You

$500 PRSV

Active Frontline

$150 PRSV

Star Consultant •  $500 PRSV in the month •  $2500 in GWV in the month •  Two Active Frontline Consultants or higher

– 4% on PWV – 4% on Frontline Escential or Certified

Consultants TWV – 2% on Frontline Lead Consultant TWV

Must have a total of $2500 in GWV. Graphical illustration only shows the minimum for each consultant personally

You $500 PRSV

$150 PRSV

$150 PRSV

Star Consultant Bonus

Star

4% Escential Certified

2% Lead

Bonuses are based on the title of the frontline position. The bonus is paid on the Team Wholesale Volume (TWV) of the frontline person and her/his team

Super Star Consultant •  $500 in PRSV in the month •  $6000 in GWV in the month •  Three Active Frontline Consultants or higher

–  7% on PWV –  7% on Frontline Escential or Certified Consultant GWV –  5% on Frontline Lead Consultant GWV –  3% on Frontline Star Consultant GWV

Must have a total of $6000 in GWV. Graphical illustration only shows the minimum for each consultant personally

You $500 PRSV

$150 PRSV

$150 PRSV

$150 PRSV

Super Star Consultant Bonus

Bonuses are based on the title of the frontline position. The bonus is paid on the Team Wholesale Volume (TWV) of the frontline person and her/his team

Super Star 7% Escential Certified

5% Lead

3% Star

Director •  $500 PRSV in the month •  $2000 in TWV •  $10,000 in GWV ($2000 must be your TWV) •  Three Active Frontline Consultants or higher

–  9% on PWV –  9% on Frontline Escential or Certified Consultants TWV –  7% on Frontline Lead Consultants TWV –  5% on Frontline Star Consultant TWV –  2% on Frontline Super Star Consultants TWV –  3% on First Generation Director TWV

Must have a total of $10,000 in GWV. Graphical illustration only shows the minimum for each consultant personally

You $500 PRSV $2000 TWV

$150 PRSV $150

PRSV

$150 PRSV

Director Bonus

Director 9% Escential Certified

7% Lead 5%

Star

2% Super Star

3% 1st Gen Director

Star Director •  $500 PRSV in the month •  $6000 in TWV in the month •  $30,000 in GWV ($6000 must be your TWV) •  Three Active Frontline Consultants or higher •  Two First Generation Directors

–  9% on PWV –  9% on Frontline Escential or Certified Consultants TWV –  7% on Frontline Lead Consultants TWV –  5% on Frontline Star Consultants TWV –  2% on Frontline Super Star Consultants TWV –  3% on First Generation Directors TWV –  4% on Second Generation Director TWV

Must have a total of $30,000 in GWV. Graphical illustration only shows the minimum for each consultant personally

You $500 PRSV $6000 TWV

$150 PRSV

$150 PRSV

$150 PRSV

1st Gen Director

1st Gen Director

Note: Your two First Gen. Directors could be 2 of the 3 frontline people you need

Star Director Bonus

Star Director 9%

Escential Certified

7% Lead 5%

Star

2% Super Star

3% 1st Gen

Directors

4% 2nd Gen Directors

Super Star Director •  $500 PRSV in the month •  $10,000 in TWV in the month •  $80,000 in GWV in the month ($10,000 must be in TWV •  Three Active Frontline Consultants or higher •  Four First Generation Directors

–  9% on PWV –  9% on Frontline Escential or Certified Consultants TWV –  7% on Frontline Lead Consultants TWV –  5% on Frontline Star Consultants TWV –  2% on Frontline Super Star Consultants TWV –  3% on First Generation Director TWV –  4% on Second Generation Director TWV –  5% on Third Generation Director TWV

Must have a total of $80,000 in GWV. Graphical illustration only shows the minimum for each consultant personally

You $500 PRSV

$10,000 TWV $150 PRSV

$150 PRSV

$150 PRSV

1st Gen Director

1st Gen Director 1st Gen

Director 1st Gen Director

3 of your 1st Gen Directors could be 3 of your frontline people you need

Super Star Director Bonus

Super Star Director 9%

Escential Certified

7% Lead 5%

Star

2% Super Star

3% 1st Gen

Directors 4%

2nd Gen Directors 5%

3rd Gen Directors

When a lower rank has a higher rank under them

Super Star

Lead

Star

Super Star receives a 5% bonus on the Lead TWV

Lead receives no bonus on Star since the Star is at a higher title

The Super Star receives a 5% bonus on the entire team volume of the Lead regardless of the title of the downline consultants in the Lead’s team. The bonus is calculated on the frontline bonus position

The rate of pay is the only thing that changes. You are always paid of team wholesale volume (TWV) of frontline consultants

The Concept of Siding

Star

Lead A

Certified

Example: If the Certified Consultant becomes a Lead before the upline Lead promotes to Star then this is considered “siding” and Lead A would not get a bonus on the Lead B. But Lead A would still count Lead B’s team wholesale volume (TWV) for qualification and promotion

Lead B

Another Example of a Generation

YOU Director

Consultant A

1st

Generation Director

Consultant B

2nd

Generation Director

When Consultant B becomes a Director then your existing 2nd Generation Director will become your 3rd Generation Director

Question 1

• Can a downline Super Star Consultant push an upline Super Star Consultant to Director the same month the downline Super Star Consultant goes to Director?

• Can the same TWV be counted for both of them? NO

•  See next slide for example……

SSC A

SSC B

SSC (A) recruits SSC (B). Both are now at SSC. They both do $500 PRSV. Both have 3 active frontline consultants. SSC (A) team not including SSC (B’s) team only does $1000 in TWV. If SSC (B) does $10,000 TWV/GWV and has no Directors under her then SSC (B) would promote to Director. SSC (B) GWV is part of SSC (A) GWV but SSC (A) would need at least $2000 of TWV outside of SSC (B) TWV to qualify for Director.

SSC A has 3 active frontline consultants & $500 PRSV

SSC B has 3 active frontline consultants & $500 PRSV + $10,000 GWV

Question 2 •  Is there any kind of a grace period for a

Director that promotes out another Director so that the upline Director can recoup her breakaway volume? (Yes)

•  If a Director promotes another frontline Director then the TWV of the promoting Directors counts towards the immediate upline Director for promotion and maintenance the month the Director promotes out of the team.

Question 3 • Does TWV from a downline Director roll-up to

the next qualified Director when the downline Director is paid at a lower rank during a commission period? (NO)

•  (See next slide for example)

Director A

Director B

Director (A) is a fully qualified Director who has Director (B) as a 1st Generation Director

One month Director (B) only does $8000 TWV & GWV in her team and is paid at the rank of SSC for the month. She has no downline Directors so all of the volume is considered TWV

Director (A) gets paid on the $8000 TWV at the 1st Generation rate of 3% (1st generation bonus). Director B’s TWV does not roll-up to the TWV of Director A. The only time this would occur is if Director B did not meet her qualifications for Director for 3 consecutive months and was demoted to a lower title. Then the TWV of the demoted Director B would roll-up to Director A’s TWV

Question 4 •  In the qualifications below for Super Star Director it states that a person

needs 4 First Generation Directors. It also states that the person needs 3 Active Frontline Consultants or higher.

•  The question is do the First Generation Directors need to be active Directors by rank each month after the Super Star Director promotes for the Super Star Director to continued to get paid as a Super Star Director each month? (NO)

•  This same scenario could be asked about Director and Star Director

Super Star Director Qualifications •  $500 PRSV in the month •  $10,000 in TWV in the month •  $80,000 in GWV in the month ($10,000 must be in TWV •  Three Active Frontline Consultants or higher •  Four First Generation Directors

•  See example on next 2 slides….

Super Star Director

1st Gen Director

A

1st Gen Director

B

1st Gen Director

C

1st Gen Director

D

Meets all of the volume and 1st Generation Director requirements

Example:

The Super Star Director promoted six months ago when Director (A) only qualifies as a Super Star Consultant during the month but Directors (B,C & D) qualify as Directors during the month.

Question: Is the Super Star Director paid as a Star Director or a Super Star Director since Director (A) has the title of Director but is paid at the rank of Super Star Consultant? She is paid as a Super Star Director

In the previous example the only case where the Super Star Director would not get paid as a Super Star Director is if one of her four frontline Directors was demoted to a lower title. This would cause the Super Star Director to be paid as a Star Director since she no longer has 4 frontline Directors. In this case the TWV of the demoted Director would roll-up to the TWV of the Super Star Director