As we move forward together into a bright new year, we would like to inform you of some important upcoming updates to our Distributor policies. In-depth discussion with the Presidential Advisory Committee (PAC) and feedback from the Executive Council and Founder’s Circle, as well as many other Distributors, have resulted in some key policy changes that are scheduled to go into effect beginning March 1, 2013.
Regarding Distributor Incentive Pricing and Commissions*:
- Distributor Incentive Pricing (discounts) will no longer be available on the sale of drinking water systems; this means that all products must be sold at full retail price.
- Distributors will continue to earn their percentage commission (based on their level of achievement). This is computed on the commissionable net of the product, not on the retail price.
- Distributors will earn commission plus the Distributor Incentive (retail price minus the commissionable net).
*This policy does not include the Aquasource and Aquamini.
EXAMPLE: A Master Builder sells a below-sink Aquaversa. Its full retail price is $429.95, and its commissionable net is $370. The Master Builder will receive $59.95 plus 35% of the commissionable net, for a total earnings of $59.95 + $160 = $219.95.
What this means beginning March 1, 2013: This means that all retail sales products must be sold at full price. You will receive the Distributor Incentive (discount) plus percentage commission on the commissionable net of the product.
Regarding the New Distributor Signup Incentive**:
- To coincide with the removal of the Distributor Incentive Pricing (discount), customers will receive a $40 discount off of the price of a Starter Kit when purchased with a Distributor-qualifying product (e.g., Aquadome, Aquaversa, Aquaperform, etc.), when they sign up as a Distributor.
- This discount is provided automatically with the new Distributor purchase and signup, and is taken out of the Distributor Incentive portion of the system price (i.e., the Distributor Incentive of a DWS sale is reduced from $59.95 to $19.95).
**The New Distributor Signup Incentive only applies if the new Distributor purchases a Starter Kit with their qualifying system OR purchases a Product Starter Kit (Aquadome Starter Kit, Aquaversa Starter Kit, Aquaperform Starter Kit, Ultimate Business Builder Kit, wriggle Starter Kit, or Multipure Vitalic Starter Kit).
What this means beginning March 1, 2013: This gives you the ability to provide a discount to customers for registering as a Distributor with a qualifying purchase, while still offering you a portion of the Distributor Incentive earnings. It also creates an even pricing field for all Distributors, allowing all to earn more from each sale. There will be a 30-day grace period beginning March 1, 2013, to allow for orders placed with the old Distributor Incentive Pricing.
Regarding the Back Office Incentive***:
- All active Back Office Distributors are placed in the Back Office Allocation Queue (BAQ) for allocation of product purchases made without a selling Distributor or for new Distributor signups made without a sponsoring Distributor.
- Once a Back Office Distributor has been allocated a product commission and/or new Distributor signup, they are removed from the BAQ until the BAQ is empty.
- Once the BAQ is empty, it is refilled with all active Back Office Distributors.
- Any customer drinking water system (DWS) purchases made without a selling Distributor will be allocated for commission to active Distributors in the BAQ.
- A percentage of the DWS commissionable net of each direct customer purchase is allocated to the current Distributor in the BAQ for commission purposes; the percentage value begins at 25%, but increases to 50% for Founders’ Circle Distributors and 75% for Executive Council Distributors.
- If the purchasing customer also signs up as a new Distributor at the same time, they will be assigned to the 2nd Level of the same Back Office Distributor that receives the product commission.
- Back Office commissions will also be allocated to the 10 levels of upline for the allocated Distributor.
- Any new Distributor signups made without a sponsoring Distributor and without a DWS purchase will be allocated to the 2nd Level of active Distributors in the BAQ.
- Orders allocated through the BAQ do not count toward ALV, MALV, PAR, or contest points.
***The Back Office Incentive only applies to PAR-qualified Distributors.
EXAMPLE: A customer purchases a below-sink Aquaversa without a selling Distributor. Its full retail price is $429.95, and its commissionable net is $370. The purchase is assigned to the next Distributor in the BAQ, Senior Builder John Doe. Because he is not EC or FC, the value of the allocated purchase is 25% of $370, or $92.50. As a Senior Builder, he earns 30% commission of that $92.50, or $27.75. The members of his 10-level upline also receive their respective commission percentages of that $92.50. If the purchasing customer signs up as a new Distributor at the same time, the new Distributor is assigned to the 2nd Level of John Doe’s network.
What this means beginning March 1, 2013: The Back Office Incentive provides an additional incentive to utilizing the Back Office, as it guarantees commissions from purchases made directly through Multipure as well as additional downline members from new Distributor signups made directly through Multipure.
Although the scheduled implementation date for these changes is March 1, 2013, it is subject to change, and we will advise you about the final implementation date as it approaches. Understand that these changes to Distributor Policy have been stringently analyzed and discussed by your peers in the field, and are being enacted for the mutual benefit of all of our Distributors.