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COMPENSATION PLANMyCenterbid Ltd. Nicosia, CyprusRevised June 2013
MYCENTERBID LTD | COMPENSATION PLAN2TABLE OF CONTENTSINTRODUCTION 3COMMISSIONS AND BONUSES 5Personal Team Bonus 6Dual Team...
MYCENTERBID LTD | COMPENSATION PLAN3INTRODUCTIONMyCenterbid is a Network Marketing business which uses the power of person...
MYCENTERBID LTD | COMPENSATION PLAN4THE DIFFERENCE BETWEEN AFFILIATES AND CUSTOMERSTo understand MyCenterbid’s Compensatio...
MYCENTERBID LTD | COMPENSATION PLAN5COMMISSIONS AND BONUSESThe following bonuses will be paid to every Affiliate who meets...
MYCENTERBID LTD | COMPENSATION PLAN6PERSONAL TEAM BONUSAs people join your team and generate bid sales, you earn Personal ...
MYCENTERBID LTD | COMPENSATION PLAN7DUAL TEAM BONUSEach time your team generates sales volume in both your left and right ...
MYCENTERBID LTD | COMPENSATION PLAN8CLIENT AQUISITION POINTS (CAP)When someone you have referred places a bid at an auctio...
MYCENTERBID LTD | COMPENSATION PLAN9AUCTION WINNER BONUSIf you have referred a customer that wins an auction in Centerbid,...
MYCENTERBID LTD | COMPENSATION PLAN10DREAM HOME BONUSRefer ten (10) Affiliates who refer five (5) Affiliates each, who ref...
MYCENTERBID LTD | COMPENSATION PLAN11APPENDIXDREAM CAR BONUS POLICYPayments by MyCenterbid will be maintained as long as t...
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Detailed Compensation Plan MyCenterbid

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Transcript of "Detailed Compensation Plan MyCenterbid"

  1. 1. COMPENSATION PLANMyCenterbid Ltd. Nicosia, CyprusRevised June 2013
  2. 2. MYCENTERBID LTD | COMPENSATION PLAN2TABLE OF CONTENTSINTRODUCTION 3COMMISSIONS AND BONUSES 5Personal Team Bonus 6Dual Team Bonus 7Client Aquisition Points (CAPs) 8Client Aquisition Bonus (CABs) 8Surplus Calculation Formula 8Auction Winner Bonus 9Dream Car Bonus 9Dream Home Bonus 10Auction Sellback 10Charge Backs & Refunds 10APPENDIX 11Dream Car Bonus Policy 11Dream Home Bonus Policy 11
  3. 3. MYCENTERBID LTD | COMPENSATION PLAN3INTRODUCTIONMyCenterbid is a Network Marketing business which uses the power of personalrecommendation and social media to promote its products. The company is the marketingarm of the new online auction website centerbid.eu which provides customers with the chanceto win consumer products at a dramatically reduced price.Central to the success of the auction is the network of affiliates established by MyCenterbid.These global partnerships will utilize personal connections to promote the Centerbid.eu site,harnessing the power of social media to build brand awareness and introduce new customersto this amazing online opportunity.By utilizing the above our aim is to earn and keep our affiliates trust, respect and loyalty sothat they can achieve their personal and financial goals. Along the way they’ll be helpingthousands of customers around the world to save money and have fun.This compensation plan is apliccable for all Independent Affiliates in MyCenterbid.Personal Team - OrganizationThe Personal Team is very simple: Who sponsored whom? If an Affiliate personallysponsors seven Affiliates, then he/she will have seven different teams (sometimes called“legs”). Each of these are independent from the other, and each will probably have adifferent number of Active Affiliates and Customers over time. An Affiliate’s PersonalOrganization only includes Affiliates and Customers added through a direct line ofsponsorship and is independent of the Dual Team Organization. (See Fig. 1)Dual Team - OrganizationThe Dual Team Organization is built in two legs. Each Affiliate has a left side and a rightside and may only be related to a single Affiliate on each side. This looks like the examplein Figure 2.In the example, Affiliate A has one relationship on his left, Affiliate B, and one relationshipon his right, Affiliate C. Affiliates B and C each have exactly the same relationships underthem, left and right.If Affiliate A sponsors another Affiliate, he/she must go under B or C and A chooses wherehe/she goes. This is called “Spillover.” Affiliate D would spillover into B or C’s organization.Note: An Affiliate may have Affiliates in his/her Dual Team Organization who are not in his/her Personal TeamOrganization because of “Spillover.” These Affiliates are a part of his/her Dual Team Organization, but they are nota part of his/her Personal Team Organization.
  4. 4. MYCENTERBID LTD | COMPENSATION PLAN4THE DIFFERENCE BETWEEN AFFILIATES AND CUSTOMERSTo understand MyCenterbid’s Compensation Plan, it is important to understand the distinction between Affiliatesand Customers. MyCenterbid is in the business of acquiring new Customers for our Penny Auction who purchaseour Products (Bid Packages). Affiliates are compensated based strictly on the sale of MyCenterbid’s andCenterbid’s Products (both their personal sales and the sales made by their Team).No commissions are paid for recruiting new Affiliates.Additionally, only Affiliates may be placed in any of the two bonus Tree’s/organizations.Customers are listed separately under ”My Customers”.AFFILIATE BUSINESS SYSTEM PURCHASE REQUIREMENTIn order to familiarize new Affiliates with MyCenterbid’s Products, sales techniques, sales aids, and other matters,the Company requires that Affiliates purchase an Affiliate Business System for an initial fee and a monthly feefrom then on. Except for the purchase of the Affiliate Business System, no person is required to purchaseMyCenterbid products or sales aids, or to pay any charge or fee to become an affiliate. The Affiliate BusinessSystem is an online tool that includes a personalized marketing website and a back office system with essentialsales and marketing tools to help Affiliates build their MyCenterbid business. The initial and monthly fees for thepurchase of the Affiliate Business System are not commissionable.ACTIVE CUSTOMERSActive Customers will be listed in the Affiliates’s back office under “My Customers”.Customer Sales Volume is credited as Client Aquisition Points (CAPs), to the affiliate who generated the sale oncethe bids are used in the auction. CAPs can generate a bonus every day, for 30 days and are used to calculate howmuch of the daily surplus from the penny auction the Affiliate will receive in form of a Client Aquisition Bonus(CAB) .GOOD STANDING STATUS REQUIREMENTAll MyCenterbid Affiliates must be in “Good Standing” to be eligible to accumulate sales points, CAPs or to earncommissions and bonuses.An Affiliate is/remains in Good Standing by paying his/her monthly Affiliate Business System renewal fee.Once an Affiliate is in Good Standing, he/she begins to accumulate Sales Points toward earning commissions andbonuses and he/she continues to accrue Sales Points while he/she remains in Good Standing. Commissions andBonuses are paid once an Affiliate is in Good Standing and provided he/she remains Active and Tier Qualified.a) If an Affiliate becomes and remains Inactive for more than thirty (30) days, the Sales Volume he/she hasaccumulated will irrevocably expire.b) If an Affiliate becomes and remains Inactive for more than sixty (60) days at any time, the Affiliates’s Agreementmay be terminated at the option of MyCenterbid. An Affiliate terminated for inactivity cannot register for a newposition for twelve (12) months.Enrollment as an Affiliate creates a “Business Center” in the MyCenterbid Dual Team Tree and theMyCenterbid Personal Team Tree, which tracks the sales generated by the Affiliate and his/her team.Affiliates can be, and often are, also Customers.
  5. 5. MYCENTERBID LTD | COMPENSATION PLAN5COMMISSIONS AND BONUSESThe following bonuses will be paid to every Affiliate who meets the qualification requirements in MyCenterbid.DUAL TEAM QUALIFICATIONTo qualify for the Dual Team Bonus payouts, you the Affiliate must have sponsoredat least one (1) Affiliate in the left team and one (1) Affiliate in the right team. Fig 3.These two (2) Affiliates must be active and in ”Good Standing” to count in thequalification requirement.BONUS TIERS:The following Bonus Tiers unclock the various commission levels. An Active Customer is someone that has verifiedtheir account, logged in and placed a bid in one of the Centerbid Auctions. (Free Auctions do not count.)IMPORTANT:There is "NO INDUSTRY STANDARD" or "NO INDUSTRY AVERAGE" used for calculation of surplus and bonuspayouts in Centerbid. This is a real business and all revenue is calculated on a daily basis indicative of auctionactivity. There is no guarantee that CAPs will generate any bonuses.Levels Tier 1 Tier 2 Tier 3 Tier 4 Tier 5MonthlyQualificationRequirements50 PV 100 PV200 GV150 PV300 GV200 PV400 GV300 PV600 GVPersonallyReferredCustomerRequirementRefer Minimum1 ActiveCustomerRefer minimum3 ActiveCustomersRefer Minimum5 ActiveCustomersRefer Minimum10 ActiveCustomersRefer Minimum20 ActiveCustomersCAPs Awardedfor bids used bypersonallyreferredcustomers inCenterbid0,60 CAPsper bid used bypersonallyreferredcustomers inCenterbid0,70 CAPsper bid used bypersonallyreferredcustomers inCenterbid0,80 CAPsper bid used bypersonallyreferredcustomers inCenterbid0,90 CAPsper bid used bypersonallyreferredcustomers inCenterbid1 CAPsper bid used bypersonallyreferredcustomers inCenterbid
  6. 6. MYCENTERBID LTD | COMPENSATION PLAN6PERSONAL TEAM BONUSAs people join your team and generate bid sales, you earn Personal Team bonuses.The more sales generated, the more you can potentially earn. Personal Team bonuses are calculated fromsales of Premium Bids, to be used in Premium Auction in Centerbid.PREMIUM AUCTION BIDSPremium auction bids cost €1 per bid and can be shared with any of your personally referred customers orused by yourself. Every time someone you have referred uses a bid you will be awarded CAPs based on your TierQualification.Levels Tier 1 Tier 2 Tier 3 Tier 4 Tier 5MonthlyQualificationsRequirement50 PV 100 PV200 GV150 PV300 GV200 PV400 GV300 PV600 GVCustomerRequirement1 ActiveCustomer3 ActiveCustomers5 ActiveCustomers10 ActiveCustomers20 ActiveCustomersLevel 1 5% 5% 5% 5% 5%Level 2 5% 5% 5% 5% 5%Level 3 5% 5% 5% 5% 5%Level 4 0.5% 0.5% 0.5% 0.5%Level 5 5% 5% 5% 5%Level 6 0.5% 0.5% 0.5%Level 7 0.5% 0.5% 0.5%Level 8 0.5% 0.5% 0.5%Level 9 0.5% 0.5%Level 10 5% 5%Level 11 0.5%Level 12 0.5%Level 13 0.5%Level 14 0.5%Level 15 5%
  7. 7. MYCENTERBID LTD | COMPENSATION PLAN7DUAL TEAM BONUSEach time your team generates sales volume in both your left and right teams, whether you made the sale or not,which adds up to a total of 300 Sale Points in any of the following combinations: 100:200, 150:150 or 200:100 ratioyou earn a commission cycle.Each commission cycle pays out a €50 Bonus.You can do this over and over again each day up to €25,000.- per week. Any unbalanced sales volume is carriedforward for six months from point of sale.Affiliates warn on the sales of those Affiliates you, your up-line and your down-line place within your team.PERSONAL BID PACKAGES (PV PACKAGE)The following bid packages generate Sale Points in the Dual Team and monthly PV for Tier Qualifications.COMMISSION CYCLESHow to calculate the value of a commission cycle:Multiply the 300 VPs that that make up each commission cycle by the current X-Factor to determine the value ofthe cycle. The standard value of the X-factor is 0.1666 which makes the standard value of each commission cycle€50.-NOTE:If in any given week, if the allocated ratio of gross incoming sales is not enough to cover the commission cyclepayout, the x-factor will be slightly adjusted. If the company wants to increase the commission cycle payout forany reason, the x-factor will be slightly adjusted. This will slightly reduce or increase the normal commission cyclepayout of € 50 per cycle, but will ensure the long term income opportunity with MyCenterbid for all Affiliates.PACKAGE BIDS SALES PONTSPRICE50 PV PACKAGE 50 Personal Bids 25 Sale Points€50100 PV PACKAGE 100 Personal Bids 50 Sale Points€100150 PV PACKAGE 150 Personal Bids 75 Sale Points€150200 PV PACKAGE 200 Personal Bids 100 Sale Points€200300 PV PACKAGE 300 Personal Bids 150 Sale Points€300150 SPLEFT150 SPRIGHT1 CYCLE€50.-+ =
  8. 8. MYCENTERBID LTD | COMPENSATION PLAN8CLIENT AQUISITION POINTS (CAP)When someone you have referred places a bid at an auction in Centerbid you are awarded CAPs.The amount of CAPs awarded is determined by your own Tier Level Qualification. As your performance increases,you are awarded more CAPs.CAPs retire after 30 days.NOTE: There are no CAPs or bonuses generated from the 25 FREE bids everybody gets when signing up inCenterbid and MyCenterbid. All CAPs have a ZERO value and cannot be exchanged or converted to cash.CAPs cannot be purchased, they can only be awarded. There is no guarantee that CAPs will generate any bonuses.CLIENT AQUISITION BONUS (CAB)Affiliates that have been awarded CAPs can earn a CAB bonus calculated from the daily surplus in Centerbid.Only USED BIDS are taken into the calculation of the daily surplus.The CAB is driven by 50% of the daily Centerbid Surplus.CAB Bonuses are calculated daily right after midnight GMT.SURPLUS CALCULATION FORMULANOTE: Unused bids are not calculated in the daily surplus. Until a bid is used it’s a financial liability for Centerbid,hence cannot be taken into our daily surplus calculation.STEP 1TODAYS REVENUEVALUE OF PAID BIDS USEDTODAY+VALUE OF PAID, WONAUCTIONS TODAY+20% OF TODAYS SELLBACK=TODAYS REVENUESTEP 2TODAYS SURPLUSTODAYS REVENUE-TODAYS PRODUCT COST FORWON AUCTIONS-TODAYS ADMINISTRATIVE COST=TODAYS SURPLUSSTEP 3TODAYS CAP PAYOUT50% OF TODAYS SURPLUS/TODAYS TOTAL AMOUNT OFCAPS IN THE SYSTEM=TODAYS CAB PAYOUTPER CAP
  9. 9. MYCENTERBID LTD | COMPENSATION PLAN9AUCTION WINNER BONUSIf you have referred a customer that wins an auction in Centerbid, You will be awarded an Auction Winner Bonus.This bonus will be paid three levels deep as described in the chart below.Bonus Example:A customer you have referred wins a brand new iPad for €250.11The auction surplus is calculated to €12105.61Your customer saves over 50% off retail on the iPad.You earn a €605,28 auction winner bonus for referring that customer.Your sponsor earns a €363.28 bonus.Your sponsor’s sponsor earns a €242,11 bonus.NOTE: Auction winner bonuses are generated when the auction is paid for.DREAM CAR BONUSRefer five (5) Affiliates who refer five (5) Affiliates each, who refer five (5) Affiliates each, and each Affiliate has a minimum 100PVeach month. The total of Affiliates required is: Level 1: 5 Affiliates, Level 2: 25 Affiliates, Level 3 125 Affiliates.All Affiliates must remain in good standing with a minimum 100 PV each.When an Affiliate achieves the monthly bonus requirements, MyCenterbid will pay him/her up to €1,500 per month as a DreamCar Bonus. The Affiliate must have an Active Status at 11:59:59 PM (Midnight) GMT on the last day of the monthly pay period tobe qualified to earn the Dream Car Bonus for the following month.The Affiliate must also have submitted either a copy of the car financing agreement or payment receipt by the fifteenth day of themonth following the month in which he/she first achieves the bonus. Documentation must be submitted in a form acceptable toMyCenterbid to prove purchase or leasing of a car. Dream Car Bonuses are paid to the Affiliate monthly, on the 30thof eachmonth, as long as the affiliate qualifies for the bonus. Qualifying organization must be in good standing and meet the monthly PVrequirements every month. For more details on the Dream Car Bonus, please see Appendix: Dream Car BonusBonus Levels Comm %YOU 5%Your Sponsor 3%Your Sponsor’s Sponsor 2%Total Bonus Percentage 10%Example: Jane achieves the Dream Car Bonus on June 4. She will be eligible for the July Dream CarBonus, which is paid on August 30, provided she submits acceptable documentation by July 15.
  10. 10. MYCENTERBID LTD | COMPENSATION PLAN10DREAM HOME BONUSRefer ten (10) Affiliates who refer five (5) Affiliates each, who refer five (5) Affiliates each, and each Affiliate has a minimum100PV each month. The total of Affiliates required is: Level 1: 10 Affiliates, Level 2: 50 Affiliates, Level 3: 250 Affiliates.All Affiliates must remain in good standing with a minimum 100 PV each.When an Affiliate achieves the monthly bonus requirements, MyCenterbid will pay him/her up to €3,000 per month as a DreamHome Bonus. The Affiliate must have an Active Status at 11:59:59 PM (Midnight) GMT on the last day of the monthly pay period tobe qualified to earn the Dream Home Bonus for the following month.The Affiliate must also have submitted either a copy of the home financing agreement or payment receipt by the fifteenth day ofthe month following the month in which he/she first achieves the bonus. Documentation must be submitted in a form acceptableto MyCenterbid to prove purchase or leasing of a home. Dream Home Bonuses are paid to the Affiliate monthly, on the 30thofeach month, as long as the Affiliate qualifies for the bonus. Qualifying organization must be in good standing and meet themonthly PV requirements every month. For more details on the Dream Home Bonus, please see Appendix: Dream Home BonusAUCTION SELLBACKAnyone who wins an auction in Centerbid can choose to sell back the product to Centerbid. If sellback is chosen,Centerbid will pay 80% of the products retail value as cash to your Centerbid Cash account.You can use this cash to either purchase new bids to bid at a dfferent auction or you can withdraw the cash viaone of the pay-out options available in the centerbid back office.NOTE: If you use the sellback option, bids used by you in that auction willnot be returned.CHARGE BACKS & REFUNDSMyCebterbid reserves the right to recover Sales Volume credited or commissions paid to an Affiliate any time acommissionable purchase of any kind is refunded to a Customer in accordance with the EU Distance and salesoutside permanent sales outlets Act.Example: John achieves the Dream Home Bonus on February 4. He will be eligible for the MarchDream Home Bonus, which is paid on April 30, provided He submits acceptable documentation byMarch 15.Example: Sarah used 120 bids to win an iPad2 valued €500. Se really wants the iPad3 so she decided tosell back the product and use the cash to purchase the iPad3 by her self.In this example, Sarah would receive €400 to her cash account.
  11. 11. MYCENTERBID LTD | COMPENSATION PLAN11APPENDIXDREAM CAR BONUS POLICYPayments by MyCenterbid will be maintained as long as the Affiliate maintains his/her qualification. The Affiliatemust be willing to provide a promotional picture and personal biography.MyCenterbid will make payment to the Affiliate, up to €1,500 monthly. MyCenterbid will issue a bonus to theAffiliate in the amount of the actual car payment, up to but not exceeding the monthly maximum (e.g., An Affiliatewith a €700 car payment would only receive a bonus of €700).DREAM CAR REQUIRENTS Car must be new. If purchased, it must be within the last three model years. If pre-owned, it must “looknew.” Color of the car must be White. Purchase or Lease is acceptable. Must place the MyCenterbid logo visible on the car. Affiliate must be in Good Standing and have a minimum of 100PV each month. Minimum 100 personal bids must be used in Centerbid by the qualifying affiliate each month. Group must have minimum 100 pv each. The group must use minimum 100 personal bids in Centerbid each month.DREAM HOME BONUS POLICYPayments by MyCenterbid will be maintained as long as the Affiliate maintains his/her qualification. The Affiliatemust be willing to provide a promotional picture and personal biography.MyCenterbid will make payment to the Affiliate, up to €3,000 monthly. MyCenterbid will issue a bonus to theAffiliate in the amount of the actual home payment, up to but not exceeding the monthly maximum (e.g., AnAffiliate with a €2,500 home payment would only receive a bonus of €2,500).DREAM HOME REQUIRENTS Can be a new home or the Affiliates existing home. Can be an apartment, condo or house. Can be leased or purchased. Must fully document that residence belongs to the Affiliate. Affiliate must be in Good Standing and have a minimum of 300PV each month. Minimum 300 personal bids must be used in Centerbid by the qualifying affiliate each month. Group must have minimum 100 pv each. The group must use minimum 100 personal bids in Centerbid each month.

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