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   COMPENSATION
 PLAN



                            cmp-compplan-001

1 | COMPENSATION PLAN
TABLE OF
CONTENTS
      Welcome to It Works! .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 1

      Your First 30 Days.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 2

      Start Climbing the Ranks .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5

      Management Levels  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 6
                      . .

      Management Bonuses.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 7

      Leadership Levels.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 8

      Diamond Generations.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9

      Dimaond Bonus.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 12

      Diamond Ranks.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 13

      Leadership Bonuses .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 16

      Glossary of Terms. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 18




                                                                                                                                                                                                                         cmp-compplan-001

COMPENSATION PLAN
WELCOME TO
                      Welcome to the It Works! Compensation Plan, your guide to achieving your optimum
                                                                1


                       earnings potential, reaching your financial goals, and fulfilling your dreams for a life
                       filled with friendships, fun, and, best of all, FREEDOM! Whether your goal is to pay off
                    your mortgage, send your kids to college, or quit your job to spend your days however
                                      you choose, the It Works! Compensation Plan can help you achieve it!



                           ARE YOU READY TO LEARN HOW? WELL, LET’S GET STARTED!


               RELATIONSHIP BUILDING—AND EARNING!

               At It Works!, we believe in the power and potential of people. Connecting with people is how
               you can build a successful business and unbelievable income with It Works!. How you earn and
               how much you earn starts with the three distinct people that make up your It Works! business.

               •	Retail Customers: These are customers who make a onetime, retail price purchase of
                 It Works! products. When you make a retail customer sale, you earn a retail commission,
                 a onetime retail profit (the difference between the retail price and the wholesale price
                 of the product) on that sale. Commissions are paid to the enrolling Distributor on retail
                 orders whether or not they are commission qualified for the month.

               •	Loyal Customers: Loyal Customers are your customers who sign up for the minimum three
                 month auto-ship agreement for their product orders and receive wholesale pricing on all
                 of these products. With sales to Loyal Customers, you earn a percentage commission with
                 every qualifying order placed.

               •	Distributors: Distributors are members of your team who have completed the Distributor
                 enrollment process and want to build a business. You will earn commissions on their orders
                 and the orders in their downline for the levels that you are qualified for.


               As you build a team of Distributors and start to promote, the number of pay levels will increase
               and your income will continue to grow. The bigger the team that you build, the more money
               you can make. This is why building your team by investing your effort, energy, and time in
               others will help you maximize your earnings. It Works! recommends that to maximize your
               earnings, Distributors should maintain the enrollment of their Distributors and Loyal Customers.
               If you choose to change placement, it may impact your commissions.

All references to income, implied or stated, through the It Works! Compensation Plan are for demonstration purposes only. It Works! does NOT guarantee any level of income or earnings to any Distributor. Earnings from this
1

Compensation Plan depend solely on sales and each Distributor’s skill, ability, and personal application. This Compensation Plan is subject to change.
                                                                                                                                                                                                        cmp-compplan-001

1 | COMPENSATION PLAN
YOUR FIRST
30 DAYS
    1           BECOME
                COMMISSION QUALIFIED                                             2     EARN FREE PRODUCT WITH
                                                                                       THE DISTRIBUTOR REBATE CREDIT

            In order to start earning your commissions                               Build your business by enrolling Loyal Customers
            on your It Works! business, you need to be                               and you can earn free It Works! products for
            Commission Qualified. This enables you to                                your business—or yourself! That’s the Distributor
            earn commissions on the Bonus Volume from                                Rebate Credit—$120 in product credit that
            your Loyal Customer and Distributor orders.                              rewards you for gathering four Qualified Active
            If you enrolled with the Business Builder Kit,                           Loyal Customers within your first 30 days.2
            congratulations, you are already commission
            qualified for the month you enrolled. If you
            didn’t, or if it is after your enrolling month, you                      QUALIFIED ACTIVE LOYAL CUSTOMER:
            must complete one of the following:                                      This is a Loyal Customer who is in the process
                                                                                     or has fulfilled the It Works! Loyal Customer
            •	Process your minimum 80 BV auto-shipment                               agreement and who does not share an
            •	Have at least 400 Personal Bonus Volume                                address with the enroller, any other Distributor,
              for the month.                                                         or any other Loyal Customer. A Qualified
                                                                                     Active Loyal Customer counts towards bonuses
                                                                                     and rewards. The Qualified Active Loyal
            VOLUME DEFINITIONS:
                                                                                     Customer does not need to have an active
            Bonus Volume (BV):                                                       auto-shipment profile if they have already
            Bonus Volume is the assigned value of a                                  completed the Loyal Customer agreement.
            product for the purpose of qualification and                             Any Loyal Customer who is counted towards a
            calculation of bonuses and commissions.                                  bonus, reward, or credit but fails to complete
                                                                                     the Loyal Customer agreement must be
            Personal Bonus Volume (PBV):                                             replaced within 14 days or the bonus, reward,
            PBV is the sum of the bonus volume from a                                or credit that was earned using this Loyal
            Distributor’s personal orders and all personally                         Customer will be recovered.
            enrolled loyal and retail customer orders.


            Group Volume (GV):
            GV is the sum of your PBV plus the PBV of every
            Distributor in your downline organization.




2
    Rebate Credit can only be used up to the Bonus Volume amount of the order.
                                                                                                                        cmp-compplan-001

2 | COMPENSATION PLAN
HOW TO EARN
THE DISTRIBUTOR REBATE CREDIT
                                                 DISTRIBUTOR:
                                                 •	Purchase the Business Builder kit.
                                                 •	Set up your minimum 80 BV auto-shipment to process in your first 30 days.  
                                                                                                                               3
                                                 •	Enroll 4 Qualified Active Loyal Customers.




      QUALIFIED ACTIVE                                 QUALIFIED ACTIVE                               QUALIFIED ACTIVE                                QUALIFIED ACTIVE
      Loyal Customer (1)                               Loyal Customer (2)                             Loyal Customer (3)                              Loyal Customer (4)




3             GET REWARDED WITH WRAP REWARDS!

         As you continue to enroll Loyal Customers you’ll earn Wrap Rewards you can use to purchase the
         It Works! Wrap™ or the Facial Applicator™ at a reduced price. You earn one Wrap Reward for every
         two Qualified Active Loyal Customers you enroll. These rewards are good for 60 days from the date
         they are applied to your account.




                                                                                                                                                                                        1
              DISTRIBUTOR                              QUALIFIED ACTIVE                                   QUALIFIED ACTIVE                                                           WRAP
                                                      LOYAL CUSTOMER (1)                                 LOYAL CUSTOMER (2)                                                         REWARD




         Your Wrap Rewards will be calculated and applied to your account nightly using this formula:




                                                       2                                            #                                                CURRENT WRAP
                                                                                                                                                       REWARDS
       NUMBER OF                                                                     NUMBER OF
    QUALIFIED ACTIVE                                                            APPLICATOR REWARDS
    LOYAL CUSTOMERS                                                               ALREADY APPLIED


3
 Please note:  oyal Customers may not share an address with either the enroller, any other Distributor, or another Loyal Customer and any Loyal Customer used for a credit, reward, or bonus who cancels prior to completing the
              L
agreement must be replaced or the credit, reward, or bonus will be recovered through a commission adjustment.
                                                                                                                                                                                                        cmp-compplan-001

3 | COMPENSATION PLAN
4             BECOME FAST START BONUS QUALIFIED

          The Fast Start Bonus is a $100 cash bonus you can earn by enrolling new Distributors who meet
          the Fast Start Bonus qualifications in their first 30 days. To earn the bonus, you need to be Fast
          Start Bonus qualified.




         HOW TO BE
         FAST START BONUS QUALIFIED
                                                  DISTRIBUTOR:
                                                  •	Purchase the Business Builder kit.
                                                  •	Set up a minimum 80 BV auto-ship to process within the first 30 days of enrollment.  
                                                  •	Enroll 2 Qualified Active Loyal Customers.




      QUALIFIED ACTIVE                                         QUALIFIED ACTIVE
     LOYAL CUSTOMER (1)                                       LOYAL CUSTOMER (2)


               Once you have met all of the requirements, you can earn Fast Start bonuses on any of your
               qualified Distributors that are still within their first 30 days.4




4
 You don’t have to be Fast Start qualified yourself when you enroll a new Distributor, but you do need to become Fast Start Bonus Qualified within your new Distributor’s first 30 days in order to collect a Fast Start bonus on the
new Distributor.
                                                                                                                                                                                                             cmp-compplan-001

4 | COMPENSATION PLAN
START CLIMBING
THE RANKS
         All new enrolling Distributors will start with the                                                               Compression:
         title of Distributor once they have completed                                                                    During the commission process, commissions are
         the enrollment process and purchased an                                                                          “compressed” to allow you to earn commission on
         It Works! Distributor enrollment kit. All Distributors                                                           sales originating further down in your organization.
         must be commission qualified for the month in                                                                    Only commission qualified Distributors count as
         order to earn commissions. All Distributors will                                                                 a level in the commission calculation process.
         earn 10% commission on their first two levels                                                                    Personal Bonus Volume generated from
         and a 5% enroller bonus if they personally                                                                       Distributors who are not commission qualified is
         enrolled the Distributor or Loyal Customer                                                                       therefore moved up in the genealogy to the next
         who placed the order. To earn commissions                                                                        commission qualified level.
         on additional levels you will need to promote
         to a higher rank. The following pages provide
         the qualifications that must be met to be
         paid at each rank along with the monthly
         commissions and bonuses that you will be
         paid at those ranks. All monthly commissions
         are paid by the end of the day on the 15th of
         the following month and are based on the
         paid ranks of distributors for the current month.




         Leg:
         Each Independent Distributor on your first level
         represents a separate “Leg” in your team. Legs in
         your organization grow as your first-level Distribu-
         tors begin to build their own teams (downlines).


         Qualified Leg:
         A Qualified Leg is one with at least 400 total
         Group Volume coming from anywhere in the
         depth of the Leg. The top Distributor of a Leg
         does not have to be Commission Qualified for
         the Leg to be considered a Qualified Leg.




Please note: A Distributor does not earn commissions on personal orders or on orders that other Distributors place directly under them.
                                                                                                                                                                 cmp-compplan-001

5 | COMPENSATION PLAN
MANAGEMENT
LEVELS
      EXECUTIVE                                                         EXECUTIVE


    To qualify to be paid as an Executive, you must
    complete the same steps as a Distributor AND have
    a minimum of 2 Qualified Legs.
    As an Executive, you are eligible to be paid on three
    levels of your downline orders after compression. See
    Management Bonuses chart, page 7.
                                                              QUALIFIED QUALIFIED
                                                                LEG       LEG



      RUBY
                                                                        RUBY

    To qualify to be paid as a Ruby, gather and build to
    3 Qualified Legs with at least 1 of the 3 Legs being
    an Executive Leg.
    Executive Leg: a Leg with an Executive somewhere
    in the depth of the Leg.
    As a Ruby, you are eligible to be paid on four levels
    of your downline orders after compression. See            EXECUTIVE QUALIFIED QUALIFIED
                                                                 LEG      LEG       LEG
    Management Bonuses chart, page 7.


      EMERALD
                                                                        EMERALD

    To qualify to be paid as an Emerald, gather and
    build to 4 Qualified Legs with at least 2 of the 4 Legs
    being Ruby Legs.
    Ruby Leg: a Leg with a Ruby somewhere in the
    depth of the Leg.
    As an Emerald, you are eligible to be paid on five
    levels of your downline orders after compression.           RUBY      RUBY      QUALIFIED QUALIFIED
    See Management Bonuses chart, page 7.                        LEG       LEG        LEG       LEG

    As an Emerald, you will also earn the Emerald Bonus.
    With the Emerald Bonus, you’ll earn an additional
    2% payout on the Bonus Volume on unlimited levels
    starting with the sixth level and going through the
    fifth level of the first Emerald or higher in any Leg
    after compression is applied.
                                                                                              cmp-compplan-001

6 | COMPENSATION PLAN
MANAGEMENT
BONUSES

                                                                                                             RUBY             EMERALD
                                                                                    EXECUTIVE
RANKS  LEVELS                                     DISTRIBUTOR                                         80 BV auto-ship       80 BV auto-ship
                                                                                                         OR 400 PBV            OR 400 PBV
                                                                                   80 BV auto-ship            PLUS                 PLUS
    Initial/Monthly                               80 BV auto-ship                    OR 400 PBV
                                                                                                       3 Qualified Legs      4 Qualified Legs
    Qualifications                                             OR                        PLUS             (1 being an            (2 being
    Requirements                                          400 PBV                  2 Qualified Legs      Executive Leg)         Ruby Legs )




        Level 1                                             10%                         10%                  10%                  10%


        Level 2                                             10%                         10%                  10%                  10%


        Level 3                                                                         5%                    5%                  5%


        Level 4                                                                                               5%                  5%


        Level 5                                                                                                                   5%


        Level 6                                                               Emerald Bonus Level                                 2%

                                                 All qualified Distributors also earn a 5% Enroller Bonus on volume orders
                                                      placed by personally enrolled Distributors or Loyal customers.

Please note: The chart refers to levels after compression has been applied.
                                                                                                                                cmp-compplan-001

7 | COMPENSATION PLAN
LEADERSHIP
LEVELS
                        When you reach Diamond you’ve reached the Leadership Level,
                        a “Whole’ Notha Level” of bonuses and income earnings potential!




      GENERATION BONUSES

    Every new Diamond is a new generation—literally!            With every new generation comes a Generation
    Each new Diamond that promotes in a                         Bonus. Diamonds and above can earn
    Distributor’s downline starts a new Generation              Generation Bonuses on up to five generations
    in that Leg and the generation is made up of                based on their Paid as Rank. As a Diamond,
    the Diamond’s Personal Group Bonus Volume.                  you will be paid a 2% commission on your
                                                                first generation, your PGBV. Reach Double
                                                                Diamond and you’re paid a 4% commission on
    Generation:                                                 your second generation, and so on. With each
    Each new Diamond that promotes in your                      promotion comes another generation you
    downline starts a new generation in that                    can earn bonuses on. These bonuses are paid
    Leg and the generation is made up of the                    on the Personal Group Bonus Volume and are
    Diamond’s PGBV.                                             paid with the monthly commissions. See the
                                                                Diamond Generation Payouts chart.

    The Personal Group                                          When members in your team that you have
    Bonus Volume (PGBV):                                        personally enrolled achieve the rank of Diamond
    The PGBV is your Personal Bonus Volume                      or higher and you are also a Diamond or
    combined with the Personal Bonus Volume of                  higher, you receive a 5% Generational Enroller
    all Distributors in your downline outside of any            Bonus on their PGBV.
    Diamonds or higher in each Leg.




                                                                                                 cmp-compplan-001

8 | COMPENSATION PLAN
DIAMOND
GENERATION PAYOUTS
                                                                      80 BV auto-ship
                                                                        OR 400 PBV
                                                                            PLUS
                                                                      4 Qualified Legs
                                                                          (2 being
                                                                         Ruby Legs )



                                   DOUBLE     TRIPLE   PRESIDENTIAL    AMBASSADOR
RANK PAYOUT             DIAMOND   DIAMOND   DIAMOND     DIAMOND         DIAMOND

    1st
 Generation             2% PGBV   2% PGBV   2% PGBV    2% PGBV          2% PGBV

    2nd
 Generation                       4% PGBV   4% PGBV    4% PGBV          4% PGBV

    3rd
 Generation                                 2% PGBV    2% PGBV          2% PGBV

    4th                                                1% PGBV          1% PGBV
 Generation

    5th
 Generation                                                             1% PGBV




                                                                         cmp-compplan-001

9 | COMPENSATION PLAN
DOUBLE DIAMOND
GENERATION PAYOUTS
 You earn a 2% 1st Generation bonus on PGBV.


     QUALIFIED                                               DOUBLE             QUALIFIED
       LEG                                                   DIAMOND              LEG




                              EMERALD
    DISTRIBUTOR                                                    QUALIFIED   DISTRIBUTOR
                                                                     LEG




       RUBY         RUBY     QUALIFIED QUALIFIED
        LEG          LEG       LEG       LEG



                         2ND GENERATION


          You earn a 4% bonus (2nd Generation payout)
          on the first Diamond or higher PGBV in each
          individual Leg. Earn an additional 5% on                DIAMOND
                                                                     LEG
          personally enrolled Diamonds or higher PGBV.




                                 EMERALD        RUBY     QUALIFIED QUALIFIED QUALIFIED
                                   LEG           LEG       LEG       LEG       LEG
                                                                                    cmp-compplan-001

10 | COMPENSATION PLAN
TRIPLE DIAMOND
GENERATION PAYOUTS
 You earn a 2% 1st Generation bonus on PGBV.

QUALIFIED                                                                                                 QUALIFIED
                                                                  TRIPLE                                    LEG
  LEG
                                                                  DIAMOND




                         2ND GENERATION
                         You earn a 4% bonus (2nd Generation
                         payout) on the first Diamond or higher
     DIAMOND             PGBV in each individual Leg. Earn an                             DISTRIBUTOR
        LEG
                         additional 5% on personally enrolled
                         Diamonds or higher PGBV.                   DISTRIBUTOR




                                                                                          DISTRIBUTOR


    EMERALD      RUBY    QUALIFIED QUALIFIED QUALIFIED
      LEG         LEG      LEG       LEG       LEG


2ND GENERATION                      DOUBLE
                                   DIAMOND                                                DISTRIBUTOR
You earn a 4% bonus (2nd
                                      LEG
Generation payout) on the first
Diamond or higher PGBV in each
individual Leg. Earn an additional                                                                      DIAMOND
5% on personally enrolled Diamonds                                                                         LEG
or higher PGBV.




              EMERALD             QUALIFIED QUALIFIED QUALIFIED               EMERALD                      QUALIFIED
                                                                                           QUALIFIED
                LEG                 LEG       LEG       LEG                     LEG                          LEG
                                                                                             LEG

                                   3RD GENERATION
                                   You earn a 2% bonus (3rd Generation
            DIAMOND                payout) on all third generation Diamonds
               LEG                 (or higher) PGBV. Earn an additional 5%              RUBY      QUALIFIED
                                   on personally enrolled Diamonds or                    LEG        LEG
                                   higher PGBV.
                                                                              2ND GENERATION
                                                                              You earn a 4% bonus (2nd Generation
                                                                              payout) on the first Diamond or higher
                                                                              PGBV ineachindividual Leg. Earn an
                                                                              additional5% on personally enrolled
                                                                              Diamonds or higher PGBV.
              EMERALD    RUBY     QUALIFIED QUALIFIED QUALIFIED
                LEG       LEG       LEG       LEG       LEG
                                                                                                        cmp-compplan-001

11 | COMPENSATION PLAN
DIAMOND
BONUS (formerly CAB Bonus)
    As a Diamond Distributor or above, you’re              enrolled through these new Legs until a new
    meeting your goals, building your team, and            Diamond promotes somewhere in one of the
    increasing your earnings. Your leadership skills       Legs. At that time, the new Diamond will be
    have brought you this far and we believe you           the Diamond Sponsor for any new Legs
    should be awarded with a bonus that is just for        they create but you will continue to be the
    our leaders, Diamonds and above.                       Diamond Sponsor for all their previous Legs.

    By reaching Diamond, you now have a                    Diamond Bonuses are paid out according
    chance to seriously impact your monthly                to the Leadership Level Sponsors for each
    earnings by taking advantage of the Diamond            new qualified Distributor. As Leadership Level
    Bonus. The Diamond Bonus is an $80 bonus that          Distributors promote up through the Diamond
    is paid to the Diamond Level Sponsor of a new          ranks, it’s important to create new Legs at
    Distributor who meets the Fast Start Bonus             each rank to take advantage of being the
    qualifications in their first 30 days.                 assigned Leadership Level Sponsor at the new
                                                           rank. With each Leadership Level promotion,
    For each new Distributor you personally enroll         you will be creating Legs where you are the
    you will earn a Diamond Bonus. You will also be        assigned Leadership Level Sponsor for more
    the Diamond Level Sponsor for the entire Leg           levels and additional bonuses are paid at
    that is created by these new enrollees.                each level.
    For each new Distributor that you enroll once          In order to earn the Diamond Bonus, you must
    you promote to Diamond, you will be their              be qualified at the Paid As bonus level for the
    Diamond Level Sponsor. You will also be the            month the bonus is paid.
    Diamond Level Sponsor of all new Distributors


                               DIAMOND BONUS PAYOUT WITH EACH LEVEL
         Rank                                  Diamond Bonus

         DIAMOND                               $80 for each new qualifying Distributor who is in the
                                               Diamond Leadership Level Sponsor Leg.

         DOUBLE DIAMOND                        $40 for each new qualifying Distributor who is in the
                                               Double Diamond Leadership Level Sponsor Leg.

         TRIPLE DIAMOND                        $15 for each new qualifying Distributor who is in the
                                               Triple Diamond Leadership Level Sponsor Leg.

         PRESIDENTIAL DIAMOND                  $10 for each new qualifying Distributor who is in the
                                               Presidential Diamond Leadership Level Sponsor Leg.

         AMBASSADOR DIAMOND                    $5 for each new qualifying Distributor who is in the
                                               Ambassador Diamond Leadership Level Sponsor Leg.




                                                                                                       cmp-compplan-001

12 | COMPENSATION PLAN
DIAMOND
RANKS
DIAMOND
To qualify to be paid as a Diamond, you must have 5 Qualified Legs with at least 1 of the 5 Legs being a
Ruby Leg and 1 of the 5 Legs being an Emerald Leg.5 The Ruby and Emerald must be in separate Legs.


                                                             DIAMOND




                                        QUALIFIED                         QUALIFIED                        QUALIFIED                              RUBY                           EMERALD
                                          LEG                               LEG                              LEG
                 As a Diamond you will earn all of the same residual commissions and Bonuses as an Emerald plus your new
                 Leadership Level Generation and Diamond Bonuses:
                 •  n additional 2% Generation 1 Bonus on your own Personal Group Bonus Volume.
                   A
                 •  5% Generational Enroller Bonus on the Personal Group Bonus Volume of any personally enrolled Diamonds
                   A
                   (or higher).
                 •  iamond Bonus of $80 for each new personally enrolled qualifying Distributor who is in the Diamond
                   D
                   Leadership Level Sponsor Leg and the downline Distributors that you are the Diamond Level Sponsor for in
                   these new Legs.


DOUBLE DIAMOND
To qualify to be paid as a Double Diamond you must build on the requirements for Diamond by having
5 Qualified Legs with at least 1 of the Legs being an Emerald Leg and 1 of the Legs being a Diamond Leg.6
The Emerald and Diamond must be in separate Legs.


                                                             DOUBLE
                                                            DIAMOND




                                        QUALIFIED                       QUALIFIED                         QUALIFIED                          DIAMOND                            EMERALD
                                          LEG                             LEG                               LEG
                 As a Double Diamond you will earn the same residual commissions and Bonuses as a Diamond plus:
                 •  n additional 4% Generation 2 Bonus on the Personal Group Bonus Volume of your 2nd generation
                   A
                   Diamonds (first “paid as” Diamond or higher in each individual Leg).
                 •  n additional Double Diamond Bonus of $40 for each new personally enrolled qualifying Distributor who
                   A
                   is in the Double Diamond Leadership Level Sponsor Leg and the downline Distributors that you are the
                   Double Diamond Level Sponsor for in these new Legs.
5
    A Ruby Leg is a Leg with a Ruby somewhere in the depth of the Leg. An Emerald Leg is a Leg with an Emerald somewhere in the depth of the Leg.
6
    A Diamond Leg is a Leg with a Diamond somewhere in the depth of the Leg.
Please note:  ew titles are not official until the overnight title update process has completed. A new title must be official before a Distributor can be considered as a Leadership Level Sponsor at the new rank. Newly promoted
             N
Leadership Level Distributors should never enroll a new Distributor until the day following their promotion to ensure the title has been officially verified by the system title update process.
                                                                                                                                                                                                             cmp-compplan-001

13 | COMPENSATION PLAN
TRIPLE DIAMOND
To qualify to be paid as a Triple Diamond you need to build on what you’ve accomplished as a Double
Diamond by having 5 Qualified Legs with at least 2 of the 5 Legs being Diamond Legs, and 1 of the 5 Legs
being a Double Diamond Leg.3 The 2 Diamonds and 1 Double Diamond must all be in separate Legs.


                                                     TRIPLE
                                                   DIAMOND




                           QUALIFIED                             QUALIFIED                              DIAMOND                                 DIAMOND                                  DOUBLE
                             LEG                                   LEG                                                                                                                  DIAMOND

                  As a Triple Diamond you will earn the same residual commissions and bonuses as a Double Diamond plus:
                  •  2% Generation 3 Bonus on the Personal Group Bonus Volume of your 3rd Generation Diamonds or
                    A
                    higher (second “paid as” Diamond or higher in each individual Leg).
                  •  n additional Triple Diamond Bonus of $15 for each new personally enrolled qualifying Distributor who is
                    A
                    in the Triple Diamond Leadership Level Sponsor Leg and the downline Distributors that you are the Triple
                    Diamond Level Sponsor for in these new Legs.


PRESIDENTIAL DIAMOND
To qualify to be paid as a Presidential Diamond you need to build on what you’ve accomplished as a
Triple Diamond by having 5 Qualified Legs with at least 2 of the 5 Legs being Diamond Legs, 1 of the 5
Legs being a Double Diamond Leg, and 1 of the 5 Legs being a Triple Diamond Leg.4 The 2 Diamonds,
1 Double Diamond, and 1 Triple Diamond must all be in separate Legs.


                                                   PRESIDENTIAL
                                                    DIAMOND




                           QUALIFIED                             DIAMOND                                 DIAMOND                                  DOUBLE                                   TRIPLE
                             LEG                                                                                                                 DIAMOND                                 DIAMOND

                 As a Presidential Diamond you will earn the same residual commissions and bonuses as a Triple Diamond plus:
                 •  1% Generation 4 Bonus on the Personal Group Bonus Volume of their 4th Generation Diamonds or higher
                   A
                   (third “paid as” Diamond or higher in each individual Leg).
                 •  n additional Presidential Diamond Bonus of $10 for each new qualifying Distributor who is in the Presidential
                   A
                   Diamond Leadership Level Sponsor Leg and the downline Distributors that you are the Presidential Diamond
                   Level Sponsor for in these new Legs.
7
    A Double Diamond Leg is a Leg with a Double Diamond somewhere in the depth of the Leg.
8
    A Triple Diamond Leg is a Leg with a Triple Diamond somewhere in the depth of the Leg.
Please note:  ew titles are not official until the overnight title update process has completed. A new title must be official before a Distributor can be considered as a Leadership Level Sponsor at the new rank. Newly promoted
             N
Leadership Level Distributors should never enroll a new Distributor until the day following their promotion to ensure the title has been officially verified by the system title update process.
                                                                                                                                                                                                             cmp-compplan-001

14 | COMPENSATION PLAN
AMBASSADOR DIAMOND
To qualify to be paid as an Ambassador Diamond you need to build on what you’ve accomplished as
a Presidential Diamond by having 5 Qualified Legs with at least 2 of the 5 Legs being Double Diamond
Legs, 2 of the 5 Legs being Triple Diamond Legs, and 1 of the 5 Legs being a Presidential Diamond Leg.
The 2 Double Diamonds, 2 Triple Diamonds, and 1 Presidential Diamond must all be in separate Legs.



                                           AMBASSADOR
                                            DIAMOND




                 DOUBLE                                     DOUBLE                                       TRIPLE                                      TRIPLE                                 PRESIDENTIAL
                DIAMOND                                    DIAMOND                                     DIAMOND                                     DIAMOND                                   DIAMOND

               As an Ambassador Diamond you will earn all the same residual commissions and bonuses as a Presidential
               Diamond plus the following:
               •  1% Generation 5 Bonus on the Personal Group Bonus Volume of their 5th Generation Diamonds or
                 A
                 higher (fourth “paid as” Diamond or higher in each individual Leg).
               •  n additional Ambassador Diamond Bonus of $5 for each new qualifying Distributor who is in the
                 A
                 Ambassador Diamond Leadership Level Sponsor Leg and the downline Distributors that you are the Am-
                 bassador Diamond Level Sponsor for in these new Legs.




Please note: New titles are not official until the overnight title update process has completed. A new title must be official before a Distributor can be considered as a Leadership Level Sponsor at the new rank. Newly promoted
Leadership Level Distributors should never enroll a new Distributor until the day following their promotion to ensure the title has been officially verified by the system title update process.
                                                                                                                                                                                                            cmp-compplan-001

15 | COMPENSATION PLAN
LEADERSHIP
BONUSES


                                                                                                                              PRESIDENTIAL          AMBASSADOR
                                                                                                                               DIAMOND               DIAMOND
                                                                                   DOUBLE                    TRIPLE
                                                                                  DIAMOND                  DIAMOND             Commission             Commission
                                             DIAMOND                                                                            Qualified*         80 BV auto-ship
                                                                                                                                                       Qualified*
                                                                                                                                    PLUS             OR 400 PBV
                                                                                                                                                           PLUS
                                                                                  Commission               Commission                                    PLUS
   RANK                                     Commission                                                                         5 Qualified            5 Qualified
                                                                                   Qualified*               Qualified*                             4 Qualified Legs
 GENERATIONS                                  Qualified*                                                                           Legs                   Legs
                                                                                          PLUS                  PLUS                                    (2 being
                                                                                                                              (2 being Diamond       (2 being Double
                                                     PLUS                                                   5 Qualified                               Ruby Legs )
                                                                                   5 Qualified                                Legs AND 1 being        Diamond Legs,
                                              5 Qualified                             Legs                     Legs                a Double            2 being Triple
    Initial/Monthly                              Legs                              (1 being an            (2 being Diamond       Diamond Leg          Diamond Legs
    Qualifications                           (1 being a Ruby                       Emerald Leg                 Legs AND              AND               AND 1 being
    Requirements                            Leg AND 1 being                       AND 1 being a            1 being a Double     1 being a Triple       a Presidential
                                            an Emerald Leg)                       Diamond Leg)               Diamond Leg)       Diamond Leg)          Diamond Leg)


     1st
  Generation                                 2% PGBV                             2% PGBV                   2% PGBV             2% PGBV               2% PGBV

     2nd
  Generation                                                                     4% PGBV                   4% PGBV             4% PGBV               4% PGBV

     3rd
  Generation                                                                                               2% PGBV             2% PGBV               2% PGBV

     4th                                                                                                                       1% PGBV               1% PGBV
  Generation

     5th
  Generation                                                                                                                                         1% PGBV

     Diamond                                         $
                                                         80                               $
                                                                                              40                $
                                                                                                                    15              $
                                                                                                                                        10                 $
                                                                                                                                                               5
      Bonus

                           All Leadership Level ranks (Diamond or higher) will also earn a 5% Generational Enroller Bonus
                                    on the PGBV of any Diamond or higher that they have personally enrolled.




*To be commission qualified in any pay period you must maintain 400 PBV or process 80 BV auto-shipment.
                                                                                                                                                      cmp-compplan-001

16 | COMPENSATION PLAN
MONTHLY MAINTENANCE

                 Starting with Emerald, you can maintain your “paid as” title through Monthly Maintenance.
                 Monthly Maintenance allows you to use your Leg volumes to re-qualify for a Rank rather than use
                 the Leg requirements. You may not use more than 50% of the maintenance requirement from any
                 one Leg.



                                                                              MONTHLY MAINTENANCE CHART
                     Rank                                                                     Monthly Maintenance Requirement

                     EMERALD                                                                  8,000 GV with no more than 4,000 BV counting from
                                                                                              any one Leg

                     DIAMOND                                                                  10,000 GV with no more than 5,000 BV counting from
                                                                                              any one Leg

                     DOUBLE DIAMOND                                                           25,000 GV with no more than 12,5000 BV counting
                                                                                              from any one Leg

                     TRIPLE DIAMOND                                                           50,000 GV with no more than 25,000 BV counting from
                                                                                              any one Leg

                     PRESIDENTIAL DIAMOND                                                     100,000 GV with no more than 50,000 BV counting
                                                                                              from any one Leg

                     AMBASSADOR DIAMOND                                                       250,000 GV with no more than 125,000 BV counting
                                                                                              from any one Leg




                 LOYAL CUSTOMER BONUS (formerly Car Bonus)

                 Gathering Loyal Customers and providing them with excellent service is just as important as
                 building a team of Distributors. The Loyal Customer Bonus rewards you for doing just that!

                 Personally enroll and maintain a minimum of 60 Qualified Active Loyal Customers5 and
                 accumulate 3,000 Personal Bonus Volume for the month and you’re qualified for the $600
                 Loyal Customer Bonus. This bonus will be paid out every month that both of these requirements
                 are met.




5
    The Loyal Customers do not have to have an active auto-shipment as long as they have completed the minimum three month agreement.
                                                                                                                                                 cmp-compplan-001

17 | COMPENSATION PLAN
GLOSSARY
OF TERMS
    Active Distributor:                                 qualified level. Distributors and Loyal Customers
    A Distributor who is commission qualified during    do not ever physically move up in the genealogy
    the current commission month (see Distributors      during this process, only the order bonus
    definition on below).                               volume will compress up. Distributors will see
                                                        this on their Earnings Statement as orders that
    Bonus Volume (BV):                                  are compressed will show as paid on a higher
    Bonus Volume is the assigned value of a             level than they were actually entered on.
    product for the purpose of qualification and        Compression helps maximize a Distributor’s
    calculation of bonuses and commissions.             commissions by bringing volume that they
    Canceled Distributor:                               would not normally qualify to be paid on up
    A Distributor who has passed their renewal          into their pay levels.
    date and has not renewed their It Works!            Compression Example: Sally is commission
    Distributor account or has canceled their           qualified in the month of March and has an
    Distributor account with It Works! Global™.         order placed on her 3rd level by Bill who is
    Clawback:                                           also commission qualified. One of the two
    Recovery of commissions from a return order         Distributors between Sally and Bill does not
    that a Distributor was paid on in a past            become commission qualified in March. This
    commission month. Distributors will see the         will cause Bill’s order to be paid on Sally’s 2nd
    clawback for each return order on their             level instead of her 3rd level.
    Earnings Statement. If a Distributor earned         Diamond Leg:
    more than one type of commission or bonus           This is a Leg with a Diamond somewhere in the
    on an order that was later returned, they will      depth of the Leg.
    see the order listed more than once in the
    Product Return section of their Earnings            Distributors:
    Statement. The order will be listed once for        Distributors are members of your team who
    each commission or bonus type that the              have completed the Distributor enrollment
    Distributor was paid for on the original order.     process and want to build a business. You
                                                        will earn commissions on their orders and the
    Compression:                                        orders in their downline for the levels that you
    Compression is part of the commission calculation   are qualified for.
    process that will move order volume up in the
    genealogy past any Distributors who are not         Emerald Leg:
    commission qualified for the month. Only            An Emerald Leg is a Leg with an Emerald
    commission qualified Distributors count as a        somewhere in the depth of the Leg.
    level in the commission calculation process so
                                                        Executive Leg:
    any Personal Bonus Volume that is generated
                                                        This is a Leg with an Executive somewhere in
    by a Distributor who is not commission qualified
                                                        the depth of the Leg.
    is compressed up to the next commission

                                                                                            cmp-compplan-001

18 | COMPENSATION PLAN
Glossary of Terms (continued)

    Generation:
    Each new Diamond that promotes in your
    downline starts a new generation in that
    Leg and the generation is made up of the
    Diamond’s PGBV.

    Group Volume (GV):
    GV is the sum of your PBV plus the PBV of every
    Distributor in your downline organization.

    Inactive Distributor:
    A Distributor who is not commission qualified
    during the commission month but still has the
    right to distribute It Works! products.

    Leg:
    Each Independent Distributor on your first
    level represents a separate “Leg” in your
    team. Legs in your organization grow as your
    first-level Distributors begin to build their own
    teams (downlines).

    Personal Bonus Volume (PBV):
    PBV is the sum of the bonus volume from a
    Distributor’s personal orders and all personally
    enrolled loyal and retail customer orders.

    Personal Group Bonus Volume (PGBV):
    The PGBV is your Personal Bonus Volume
    combined with the Personal Bonus Volume of
    all Distributors in your downline outside of any
    Diamonds or higher in each Leg.

    Qualified Leg:
    A Qualified Leg is one with at least 400 total
    Group Bonus Volume coming from anywhere
    in the depth of the Leg. The top Distributor of a
    Leg does not have to be Commission Qualified
    for the Leg to be considered a Qualified Leg.

    Ruby Leg:
    This a Leg with a Ruby somewhere in the depth
    of the Leg.




                                                        cmp-compplan-001

19 | COMPENSATION PLAN

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It Works Compensation Plan

  • 1. ® COMPENSATION PLAN cmp-compplan-001 1 | COMPENSATION PLAN
  • 2. TABLE OF CONTENTS Welcome to It Works! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Your First 30 Days. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Start Climbing the Ranks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Management Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . Management Bonuses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Leadership Levels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Diamond Generations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Dimaond Bonus. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Diamond Ranks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Leadership Bonuses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Glossary of Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 cmp-compplan-001 COMPENSATION PLAN
  • 3. WELCOME TO Welcome to the It Works! Compensation Plan, your guide to achieving your optimum 1 earnings potential, reaching your financial goals, and fulfilling your dreams for a life filled with friendships, fun, and, best of all, FREEDOM! Whether your goal is to pay off your mortgage, send your kids to college, or quit your job to spend your days however you choose, the It Works! Compensation Plan can help you achieve it! ARE YOU READY TO LEARN HOW? WELL, LET’S GET STARTED! RELATIONSHIP BUILDING—AND EARNING! At It Works!, we believe in the power and potential of people. Connecting with people is how you can build a successful business and unbelievable income with It Works!. How you earn and how much you earn starts with the three distinct people that make up your It Works! business. • Retail Customers: These are customers who make a onetime, retail price purchase of It Works! products. When you make a retail customer sale, you earn a retail commission, a onetime retail profit (the difference between the retail price and the wholesale price of the product) on that sale. Commissions are paid to the enrolling Distributor on retail orders whether or not they are commission qualified for the month. • Loyal Customers: Loyal Customers are your customers who sign up for the minimum three month auto-ship agreement for their product orders and receive wholesale pricing on all of these products. With sales to Loyal Customers, you earn a percentage commission with every qualifying order placed. • Distributors: Distributors are members of your team who have completed the Distributor enrollment process and want to build a business. You will earn commissions on their orders and the orders in their downline for the levels that you are qualified for. As you build a team of Distributors and start to promote, the number of pay levels will increase and your income will continue to grow. The bigger the team that you build, the more money you can make. This is why building your team by investing your effort, energy, and time in others will help you maximize your earnings. It Works! recommends that to maximize your earnings, Distributors should maintain the enrollment of their Distributors and Loyal Customers. If you choose to change placement, it may impact your commissions. All references to income, implied or stated, through the It Works! Compensation Plan are for demonstration purposes only. It Works! does NOT guarantee any level of income or earnings to any Distributor. Earnings from this 1 Compensation Plan depend solely on sales and each Distributor’s skill, ability, and personal application. This Compensation Plan is subject to change. cmp-compplan-001 1 | COMPENSATION PLAN
  • 4. YOUR FIRST 30 DAYS 1 BECOME COMMISSION QUALIFIED 2 EARN FREE PRODUCT WITH THE DISTRIBUTOR REBATE CREDIT In order to start earning your commissions Build your business by enrolling Loyal Customers on your It Works! business, you need to be and you can earn free It Works! products for Commission Qualified. This enables you to your business—or yourself! That’s the Distributor earn commissions on the Bonus Volume from Rebate Credit—$120 in product credit that your Loyal Customer and Distributor orders. rewards you for gathering four Qualified Active If you enrolled with the Business Builder Kit, Loyal Customers within your first 30 days.2 congratulations, you are already commission qualified for the month you enrolled. If you didn’t, or if it is after your enrolling month, you QUALIFIED ACTIVE LOYAL CUSTOMER: must complete one of the following: This is a Loyal Customer who is in the process or has fulfilled the It Works! Loyal Customer • Process your minimum 80 BV auto-shipment agreement and who does not share an • Have at least 400 Personal Bonus Volume address with the enroller, any other Distributor, for the month. or any other Loyal Customer. A Qualified Active Loyal Customer counts towards bonuses and rewards. The Qualified Active Loyal VOLUME DEFINITIONS: Customer does not need to have an active Bonus Volume (BV): auto-shipment profile if they have already Bonus Volume is the assigned value of a completed the Loyal Customer agreement. product for the purpose of qualification and Any Loyal Customer who is counted towards a calculation of bonuses and commissions. bonus, reward, or credit but fails to complete the Loyal Customer agreement must be Personal Bonus Volume (PBV): replaced within 14 days or the bonus, reward, PBV is the sum of the bonus volume from a or credit that was earned using this Loyal Distributor’s personal orders and all personally Customer will be recovered. enrolled loyal and retail customer orders. Group Volume (GV): GV is the sum of your PBV plus the PBV of every Distributor in your downline organization. 2 Rebate Credit can only be used up to the Bonus Volume amount of the order. cmp-compplan-001 2 | COMPENSATION PLAN
  • 5. HOW TO EARN THE DISTRIBUTOR REBATE CREDIT DISTRIBUTOR: • Purchase the Business Builder kit. • Set up your minimum 80 BV auto-shipment to process in your first 30 days. 3 • Enroll 4 Qualified Active Loyal Customers. QUALIFIED ACTIVE QUALIFIED ACTIVE QUALIFIED ACTIVE QUALIFIED ACTIVE Loyal Customer (1) Loyal Customer (2) Loyal Customer (3) Loyal Customer (4) 3 GET REWARDED WITH WRAP REWARDS! As you continue to enroll Loyal Customers you’ll earn Wrap Rewards you can use to purchase the It Works! Wrap™ or the Facial Applicator™ at a reduced price. You earn one Wrap Reward for every two Qualified Active Loyal Customers you enroll. These rewards are good for 60 days from the date they are applied to your account. 1 DISTRIBUTOR QUALIFIED ACTIVE QUALIFIED ACTIVE WRAP LOYAL CUSTOMER (1) LOYAL CUSTOMER (2) REWARD Your Wrap Rewards will be calculated and applied to your account nightly using this formula: 2 # CURRENT WRAP REWARDS NUMBER OF NUMBER OF QUALIFIED ACTIVE APPLICATOR REWARDS LOYAL CUSTOMERS ALREADY APPLIED 3 Please note: oyal Customers may not share an address with either the enroller, any other Distributor, or another Loyal Customer and any Loyal Customer used for a credit, reward, or bonus who cancels prior to completing the L agreement must be replaced or the credit, reward, or bonus will be recovered through a commission adjustment. cmp-compplan-001 3 | COMPENSATION PLAN
  • 6. 4 BECOME FAST START BONUS QUALIFIED The Fast Start Bonus is a $100 cash bonus you can earn by enrolling new Distributors who meet the Fast Start Bonus qualifications in their first 30 days. To earn the bonus, you need to be Fast Start Bonus qualified. HOW TO BE FAST START BONUS QUALIFIED DISTRIBUTOR: • Purchase the Business Builder kit. • Set up a minimum 80 BV auto-ship to process within the first 30 days of enrollment. • Enroll 2 Qualified Active Loyal Customers. QUALIFIED ACTIVE QUALIFIED ACTIVE LOYAL CUSTOMER (1) LOYAL CUSTOMER (2) Once you have met all of the requirements, you can earn Fast Start bonuses on any of your qualified Distributors that are still within their first 30 days.4 4 You don’t have to be Fast Start qualified yourself when you enroll a new Distributor, but you do need to become Fast Start Bonus Qualified within your new Distributor’s first 30 days in order to collect a Fast Start bonus on the new Distributor. cmp-compplan-001 4 | COMPENSATION PLAN
  • 7. START CLIMBING THE RANKS All new enrolling Distributors will start with the Compression: title of Distributor once they have completed During the commission process, commissions are the enrollment process and purchased an “compressed” to allow you to earn commission on It Works! Distributor enrollment kit. All Distributors sales originating further down in your organization. must be commission qualified for the month in Only commission qualified Distributors count as order to earn commissions. All Distributors will a level in the commission calculation process. earn 10% commission on their first two levels Personal Bonus Volume generated from and a 5% enroller bonus if they personally Distributors who are not commission qualified is enrolled the Distributor or Loyal Customer therefore moved up in the genealogy to the next who placed the order. To earn commissions commission qualified level. on additional levels you will need to promote to a higher rank. The following pages provide the qualifications that must be met to be paid at each rank along with the monthly commissions and bonuses that you will be paid at those ranks. All monthly commissions are paid by the end of the day on the 15th of the following month and are based on the paid ranks of distributors for the current month. Leg: Each Independent Distributor on your first level represents a separate “Leg” in your team. Legs in your organization grow as your first-level Distribu- tors begin to build their own teams (downlines). Qualified Leg: A Qualified Leg is one with at least 400 total Group Volume coming from anywhere in the depth of the Leg. The top Distributor of a Leg does not have to be Commission Qualified for the Leg to be considered a Qualified Leg. Please note: A Distributor does not earn commissions on personal orders or on orders that other Distributors place directly under them. cmp-compplan-001 5 | COMPENSATION PLAN
  • 8. MANAGEMENT LEVELS EXECUTIVE EXECUTIVE To qualify to be paid as an Executive, you must complete the same steps as a Distributor AND have a minimum of 2 Qualified Legs. As an Executive, you are eligible to be paid on three levels of your downline orders after compression. See Management Bonuses chart, page 7. QUALIFIED QUALIFIED LEG LEG RUBY RUBY To qualify to be paid as a Ruby, gather and build to 3 Qualified Legs with at least 1 of the 3 Legs being an Executive Leg. Executive Leg: a Leg with an Executive somewhere in the depth of the Leg. As a Ruby, you are eligible to be paid on four levels of your downline orders after compression. See EXECUTIVE QUALIFIED QUALIFIED LEG LEG LEG Management Bonuses chart, page 7. EMERALD EMERALD To qualify to be paid as an Emerald, gather and build to 4 Qualified Legs with at least 2 of the 4 Legs being Ruby Legs. Ruby Leg: a Leg with a Ruby somewhere in the depth of the Leg. As an Emerald, you are eligible to be paid on five levels of your downline orders after compression. RUBY RUBY QUALIFIED QUALIFIED See Management Bonuses chart, page 7. LEG LEG LEG LEG As an Emerald, you will also earn the Emerald Bonus. With the Emerald Bonus, you’ll earn an additional 2% payout on the Bonus Volume on unlimited levels starting with the sixth level and going through the fifth level of the first Emerald or higher in any Leg after compression is applied. cmp-compplan-001 6 | COMPENSATION PLAN
  • 9. MANAGEMENT BONUSES RUBY EMERALD EXECUTIVE RANKS LEVELS DISTRIBUTOR 80 BV auto-ship 80 BV auto-ship OR 400 PBV OR 400 PBV 80 BV auto-ship PLUS PLUS Initial/Monthly 80 BV auto-ship OR 400 PBV 3 Qualified Legs 4 Qualified Legs Qualifications OR PLUS (1 being an (2 being Requirements 400 PBV 2 Qualified Legs Executive Leg) Ruby Legs ) Level 1 10% 10% 10% 10% Level 2 10% 10% 10% 10% Level 3 5% 5% 5% Level 4 5% 5% Level 5 5% Level 6 Emerald Bonus Level 2% All qualified Distributors also earn a 5% Enroller Bonus on volume orders placed by personally enrolled Distributors or Loyal customers. Please note: The chart refers to levels after compression has been applied. cmp-compplan-001 7 | COMPENSATION PLAN
  • 10. LEADERSHIP LEVELS When you reach Diamond you’ve reached the Leadership Level, a “Whole’ Notha Level” of bonuses and income earnings potential! GENERATION BONUSES Every new Diamond is a new generation—literally! With every new generation comes a Generation Each new Diamond that promotes in a Bonus. Diamonds and above can earn Distributor’s downline starts a new Generation Generation Bonuses on up to five generations in that Leg and the generation is made up of based on their Paid as Rank. As a Diamond, the Diamond’s Personal Group Bonus Volume. you will be paid a 2% commission on your first generation, your PGBV. Reach Double Diamond and you’re paid a 4% commission on Generation: your second generation, and so on. With each Each new Diamond that promotes in your promotion comes another generation you downline starts a new generation in that can earn bonuses on. These bonuses are paid Leg and the generation is made up of the on the Personal Group Bonus Volume and are Diamond’s PGBV. paid with the monthly commissions. See the Diamond Generation Payouts chart. The Personal Group When members in your team that you have Bonus Volume (PGBV): personally enrolled achieve the rank of Diamond The PGBV is your Personal Bonus Volume or higher and you are also a Diamond or combined with the Personal Bonus Volume of higher, you receive a 5% Generational Enroller all Distributors in your downline outside of any Bonus on their PGBV. Diamonds or higher in each Leg. cmp-compplan-001 8 | COMPENSATION PLAN
  • 11. DIAMOND GENERATION PAYOUTS 80 BV auto-ship OR 400 PBV PLUS 4 Qualified Legs (2 being Ruby Legs ) DOUBLE TRIPLE PRESIDENTIAL AMBASSADOR RANK PAYOUT DIAMOND DIAMOND DIAMOND DIAMOND DIAMOND 1st Generation 2% PGBV 2% PGBV 2% PGBV 2% PGBV 2% PGBV 2nd Generation 4% PGBV 4% PGBV 4% PGBV 4% PGBV 3rd Generation 2% PGBV 2% PGBV 2% PGBV 4th 1% PGBV 1% PGBV Generation 5th Generation 1% PGBV cmp-compplan-001 9 | COMPENSATION PLAN
  • 12. DOUBLE DIAMOND GENERATION PAYOUTS You earn a 2% 1st Generation bonus on PGBV. QUALIFIED DOUBLE QUALIFIED LEG DIAMOND LEG EMERALD DISTRIBUTOR QUALIFIED DISTRIBUTOR LEG RUBY RUBY QUALIFIED QUALIFIED LEG LEG LEG LEG 2ND GENERATION You earn a 4% bonus (2nd Generation payout) on the first Diamond or higher PGBV in each individual Leg. Earn an additional 5% on DIAMOND LEG personally enrolled Diamonds or higher PGBV. EMERALD RUBY QUALIFIED QUALIFIED QUALIFIED LEG LEG LEG LEG LEG cmp-compplan-001 10 | COMPENSATION PLAN
  • 13. TRIPLE DIAMOND GENERATION PAYOUTS You earn a 2% 1st Generation bonus on PGBV. QUALIFIED QUALIFIED TRIPLE LEG LEG DIAMOND 2ND GENERATION You earn a 4% bonus (2nd Generation payout) on the first Diamond or higher DIAMOND PGBV in each individual Leg. Earn an DISTRIBUTOR LEG additional 5% on personally enrolled Diamonds or higher PGBV. DISTRIBUTOR DISTRIBUTOR EMERALD RUBY QUALIFIED QUALIFIED QUALIFIED LEG LEG LEG LEG LEG 2ND GENERATION DOUBLE DIAMOND DISTRIBUTOR You earn a 4% bonus (2nd LEG Generation payout) on the first Diamond or higher PGBV in each individual Leg. Earn an additional DIAMOND 5% on personally enrolled Diamonds LEG or higher PGBV. EMERALD QUALIFIED QUALIFIED QUALIFIED EMERALD QUALIFIED QUALIFIED LEG LEG LEG LEG LEG LEG LEG 3RD GENERATION You earn a 2% bonus (3rd Generation DIAMOND payout) on all third generation Diamonds LEG (or higher) PGBV. Earn an additional 5% RUBY QUALIFIED on personally enrolled Diamonds or LEG LEG higher PGBV. 2ND GENERATION You earn a 4% bonus (2nd Generation payout) on the first Diamond or higher PGBV ineachindividual Leg. Earn an additional5% on personally enrolled Diamonds or higher PGBV. EMERALD RUBY QUALIFIED QUALIFIED QUALIFIED LEG LEG LEG LEG LEG cmp-compplan-001 11 | COMPENSATION PLAN
  • 14. DIAMOND BONUS (formerly CAB Bonus) As a Diamond Distributor or above, you’re enrolled through these new Legs until a new meeting your goals, building your team, and Diamond promotes somewhere in one of the increasing your earnings. Your leadership skills Legs. At that time, the new Diamond will be have brought you this far and we believe you the Diamond Sponsor for any new Legs should be awarded with a bonus that is just for they create but you will continue to be the our leaders, Diamonds and above. Diamond Sponsor for all their previous Legs. By reaching Diamond, you now have a Diamond Bonuses are paid out according chance to seriously impact your monthly to the Leadership Level Sponsors for each earnings by taking advantage of the Diamond new qualified Distributor. As Leadership Level Bonus. The Diamond Bonus is an $80 bonus that Distributors promote up through the Diamond is paid to the Diamond Level Sponsor of a new ranks, it’s important to create new Legs at Distributor who meets the Fast Start Bonus each rank to take advantage of being the qualifications in their first 30 days. assigned Leadership Level Sponsor at the new rank. With each Leadership Level promotion, For each new Distributor you personally enroll you will be creating Legs where you are the you will earn a Diamond Bonus. You will also be assigned Leadership Level Sponsor for more the Diamond Level Sponsor for the entire Leg levels and additional bonuses are paid at that is created by these new enrollees. each level. For each new Distributor that you enroll once In order to earn the Diamond Bonus, you must you promote to Diamond, you will be their be qualified at the Paid As bonus level for the Diamond Level Sponsor. You will also be the month the bonus is paid. Diamond Level Sponsor of all new Distributors DIAMOND BONUS PAYOUT WITH EACH LEVEL Rank Diamond Bonus DIAMOND $80 for each new qualifying Distributor who is in the Diamond Leadership Level Sponsor Leg. DOUBLE DIAMOND $40 for each new qualifying Distributor who is in the Double Diamond Leadership Level Sponsor Leg. TRIPLE DIAMOND $15 for each new qualifying Distributor who is in the Triple Diamond Leadership Level Sponsor Leg. PRESIDENTIAL DIAMOND $10 for each new qualifying Distributor who is in the Presidential Diamond Leadership Level Sponsor Leg. AMBASSADOR DIAMOND $5 for each new qualifying Distributor who is in the Ambassador Diamond Leadership Level Sponsor Leg. cmp-compplan-001 12 | COMPENSATION PLAN
  • 15. DIAMOND RANKS DIAMOND To qualify to be paid as a Diamond, you must have 5 Qualified Legs with at least 1 of the 5 Legs being a Ruby Leg and 1 of the 5 Legs being an Emerald Leg.5 The Ruby and Emerald must be in separate Legs. DIAMOND QUALIFIED QUALIFIED QUALIFIED RUBY EMERALD LEG LEG LEG As a Diamond you will earn all of the same residual commissions and Bonuses as an Emerald plus your new Leadership Level Generation and Diamond Bonuses: • n additional 2% Generation 1 Bonus on your own Personal Group Bonus Volume. A • 5% Generational Enroller Bonus on the Personal Group Bonus Volume of any personally enrolled Diamonds A (or higher). • iamond Bonus of $80 for each new personally enrolled qualifying Distributor who is in the Diamond D Leadership Level Sponsor Leg and the downline Distributors that you are the Diamond Level Sponsor for in these new Legs. DOUBLE DIAMOND To qualify to be paid as a Double Diamond you must build on the requirements for Diamond by having 5 Qualified Legs with at least 1 of the Legs being an Emerald Leg and 1 of the Legs being a Diamond Leg.6 The Emerald and Diamond must be in separate Legs. DOUBLE DIAMOND QUALIFIED QUALIFIED QUALIFIED DIAMOND EMERALD LEG LEG LEG As a Double Diamond you will earn the same residual commissions and Bonuses as a Diamond plus: • n additional 4% Generation 2 Bonus on the Personal Group Bonus Volume of your 2nd generation A Diamonds (first “paid as” Diamond or higher in each individual Leg). • n additional Double Diamond Bonus of $40 for each new personally enrolled qualifying Distributor who A is in the Double Diamond Leadership Level Sponsor Leg and the downline Distributors that you are the Double Diamond Level Sponsor for in these new Legs. 5 A Ruby Leg is a Leg with a Ruby somewhere in the depth of the Leg. An Emerald Leg is a Leg with an Emerald somewhere in the depth of the Leg. 6 A Diamond Leg is a Leg with a Diamond somewhere in the depth of the Leg. Please note: ew titles are not official until the overnight title update process has completed. A new title must be official before a Distributor can be considered as a Leadership Level Sponsor at the new rank. Newly promoted N Leadership Level Distributors should never enroll a new Distributor until the day following their promotion to ensure the title has been officially verified by the system title update process. cmp-compplan-001 13 | COMPENSATION PLAN
  • 16. TRIPLE DIAMOND To qualify to be paid as a Triple Diamond you need to build on what you’ve accomplished as a Double Diamond by having 5 Qualified Legs with at least 2 of the 5 Legs being Diamond Legs, and 1 of the 5 Legs being a Double Diamond Leg.3 The 2 Diamonds and 1 Double Diamond must all be in separate Legs. TRIPLE DIAMOND QUALIFIED QUALIFIED DIAMOND DIAMOND DOUBLE LEG LEG DIAMOND As a Triple Diamond you will earn the same residual commissions and bonuses as a Double Diamond plus: • 2% Generation 3 Bonus on the Personal Group Bonus Volume of your 3rd Generation Diamonds or A higher (second “paid as” Diamond or higher in each individual Leg). • n additional Triple Diamond Bonus of $15 for each new personally enrolled qualifying Distributor who is A in the Triple Diamond Leadership Level Sponsor Leg and the downline Distributors that you are the Triple Diamond Level Sponsor for in these new Legs. PRESIDENTIAL DIAMOND To qualify to be paid as a Presidential Diamond you need to build on what you’ve accomplished as a Triple Diamond by having 5 Qualified Legs with at least 2 of the 5 Legs being Diamond Legs, 1 of the 5 Legs being a Double Diamond Leg, and 1 of the 5 Legs being a Triple Diamond Leg.4 The 2 Diamonds, 1 Double Diamond, and 1 Triple Diamond must all be in separate Legs. PRESIDENTIAL DIAMOND QUALIFIED DIAMOND DIAMOND DOUBLE TRIPLE LEG DIAMOND DIAMOND As a Presidential Diamond you will earn the same residual commissions and bonuses as a Triple Diamond plus: • 1% Generation 4 Bonus on the Personal Group Bonus Volume of their 4th Generation Diamonds or higher A (third “paid as” Diamond or higher in each individual Leg). • n additional Presidential Diamond Bonus of $10 for each new qualifying Distributor who is in the Presidential A Diamond Leadership Level Sponsor Leg and the downline Distributors that you are the Presidential Diamond Level Sponsor for in these new Legs. 7 A Double Diamond Leg is a Leg with a Double Diamond somewhere in the depth of the Leg. 8 A Triple Diamond Leg is a Leg with a Triple Diamond somewhere in the depth of the Leg. Please note: ew titles are not official until the overnight title update process has completed. A new title must be official before a Distributor can be considered as a Leadership Level Sponsor at the new rank. Newly promoted N Leadership Level Distributors should never enroll a new Distributor until the day following their promotion to ensure the title has been officially verified by the system title update process. cmp-compplan-001 14 | COMPENSATION PLAN
  • 17. AMBASSADOR DIAMOND To qualify to be paid as an Ambassador Diamond you need to build on what you’ve accomplished as a Presidential Diamond by having 5 Qualified Legs with at least 2 of the 5 Legs being Double Diamond Legs, 2 of the 5 Legs being Triple Diamond Legs, and 1 of the 5 Legs being a Presidential Diamond Leg. The 2 Double Diamonds, 2 Triple Diamonds, and 1 Presidential Diamond must all be in separate Legs. AMBASSADOR DIAMOND DOUBLE DOUBLE TRIPLE TRIPLE PRESIDENTIAL DIAMOND DIAMOND DIAMOND DIAMOND DIAMOND As an Ambassador Diamond you will earn all the same residual commissions and bonuses as a Presidential Diamond plus the following: • 1% Generation 5 Bonus on the Personal Group Bonus Volume of their 5th Generation Diamonds or A higher (fourth “paid as” Diamond or higher in each individual Leg). • n additional Ambassador Diamond Bonus of $5 for each new qualifying Distributor who is in the A Ambassador Diamond Leadership Level Sponsor Leg and the downline Distributors that you are the Am- bassador Diamond Level Sponsor for in these new Legs. Please note: New titles are not official until the overnight title update process has completed. A new title must be official before a Distributor can be considered as a Leadership Level Sponsor at the new rank. Newly promoted Leadership Level Distributors should never enroll a new Distributor until the day following their promotion to ensure the title has been officially verified by the system title update process. cmp-compplan-001 15 | COMPENSATION PLAN
  • 18. LEADERSHIP BONUSES PRESIDENTIAL AMBASSADOR DIAMOND DIAMOND DOUBLE TRIPLE DIAMOND DIAMOND Commission Commission DIAMOND Qualified* 80 BV auto-ship Qualified* PLUS OR 400 PBV PLUS Commission Commission PLUS RANK Commission 5 Qualified 5 Qualified Qualified* Qualified* 4 Qualified Legs GENERATIONS Qualified* Legs Legs PLUS PLUS (2 being (2 being Diamond (2 being Double PLUS 5 Qualified Ruby Legs ) 5 Qualified Legs AND 1 being Diamond Legs, 5 Qualified Legs Legs a Double 2 being Triple Initial/Monthly Legs (1 being an (2 being Diamond Diamond Leg Diamond Legs Qualifications (1 being a Ruby Emerald Leg Legs AND AND AND 1 being Requirements Leg AND 1 being AND 1 being a 1 being a Double 1 being a Triple a Presidential an Emerald Leg) Diamond Leg) Diamond Leg) Diamond Leg) Diamond Leg) 1st Generation 2% PGBV 2% PGBV 2% PGBV 2% PGBV 2% PGBV 2nd Generation 4% PGBV 4% PGBV 4% PGBV 4% PGBV 3rd Generation 2% PGBV 2% PGBV 2% PGBV 4th 1% PGBV 1% PGBV Generation 5th Generation 1% PGBV Diamond $ 80 $ 40 $ 15 $ 10 $ 5 Bonus All Leadership Level ranks (Diamond or higher) will also earn a 5% Generational Enroller Bonus on the PGBV of any Diamond or higher that they have personally enrolled. *To be commission qualified in any pay period you must maintain 400 PBV or process 80 BV auto-shipment. cmp-compplan-001 16 | COMPENSATION PLAN
  • 19. MONTHLY MAINTENANCE Starting with Emerald, you can maintain your “paid as” title through Monthly Maintenance. Monthly Maintenance allows you to use your Leg volumes to re-qualify for a Rank rather than use the Leg requirements. You may not use more than 50% of the maintenance requirement from any one Leg. MONTHLY MAINTENANCE CHART Rank Monthly Maintenance Requirement EMERALD 8,000 GV with no more than 4,000 BV counting from any one Leg DIAMOND 10,000 GV with no more than 5,000 BV counting from any one Leg DOUBLE DIAMOND 25,000 GV with no more than 12,5000 BV counting from any one Leg TRIPLE DIAMOND 50,000 GV with no more than 25,000 BV counting from any one Leg PRESIDENTIAL DIAMOND 100,000 GV with no more than 50,000 BV counting from any one Leg AMBASSADOR DIAMOND 250,000 GV with no more than 125,000 BV counting from any one Leg LOYAL CUSTOMER BONUS (formerly Car Bonus) Gathering Loyal Customers and providing them with excellent service is just as important as building a team of Distributors. The Loyal Customer Bonus rewards you for doing just that! Personally enroll and maintain a minimum of 60 Qualified Active Loyal Customers5 and accumulate 3,000 Personal Bonus Volume for the month and you’re qualified for the $600 Loyal Customer Bonus. This bonus will be paid out every month that both of these requirements are met. 5 The Loyal Customers do not have to have an active auto-shipment as long as they have completed the minimum three month agreement. cmp-compplan-001 17 | COMPENSATION PLAN
  • 20. GLOSSARY OF TERMS Active Distributor: qualified level. Distributors and Loyal Customers A Distributor who is commission qualified during do not ever physically move up in the genealogy the current commission month (see Distributors during this process, only the order bonus definition on below). volume will compress up. Distributors will see this on their Earnings Statement as orders that Bonus Volume (BV): are compressed will show as paid on a higher Bonus Volume is the assigned value of a level than they were actually entered on. product for the purpose of qualification and Compression helps maximize a Distributor’s calculation of bonuses and commissions. commissions by bringing volume that they Canceled Distributor: would not normally qualify to be paid on up A Distributor who has passed their renewal into their pay levels. date and has not renewed their It Works! Compression Example: Sally is commission Distributor account or has canceled their qualified in the month of March and has an Distributor account with It Works! Global™. order placed on her 3rd level by Bill who is Clawback: also commission qualified. One of the two Recovery of commissions from a return order Distributors between Sally and Bill does not that a Distributor was paid on in a past become commission qualified in March. This commission month. Distributors will see the will cause Bill’s order to be paid on Sally’s 2nd clawback for each return order on their level instead of her 3rd level. Earnings Statement. If a Distributor earned Diamond Leg: more than one type of commission or bonus This is a Leg with a Diamond somewhere in the on an order that was later returned, they will depth of the Leg. see the order listed more than once in the Product Return section of their Earnings Distributors: Statement. The order will be listed once for Distributors are members of your team who each commission or bonus type that the have completed the Distributor enrollment Distributor was paid for on the original order. process and want to build a business. You will earn commissions on their orders and the Compression: orders in their downline for the levels that you Compression is part of the commission calculation are qualified for. process that will move order volume up in the genealogy past any Distributors who are not Emerald Leg: commission qualified for the month. Only An Emerald Leg is a Leg with an Emerald commission qualified Distributors count as a somewhere in the depth of the Leg. level in the commission calculation process so Executive Leg: any Personal Bonus Volume that is generated This is a Leg with an Executive somewhere in by a Distributor who is not commission qualified the depth of the Leg. is compressed up to the next commission cmp-compplan-001 18 | COMPENSATION PLAN
  • 21. Glossary of Terms (continued) Generation: Each new Diamond that promotes in your downline starts a new generation in that Leg and the generation is made up of the Diamond’s PGBV. Group Volume (GV): GV is the sum of your PBV plus the PBV of every Distributor in your downline organization. Inactive Distributor: A Distributor who is not commission qualified during the commission month but still has the right to distribute It Works! products. Leg: Each Independent Distributor on your first level represents a separate “Leg” in your team. Legs in your organization grow as your first-level Distributors begin to build their own teams (downlines). Personal Bonus Volume (PBV): PBV is the sum of the bonus volume from a Distributor’s personal orders and all personally enrolled loyal and retail customer orders. Personal Group Bonus Volume (PGBV): The PGBV is your Personal Bonus Volume combined with the Personal Bonus Volume of all Distributors in your downline outside of any Diamonds or higher in each Leg. Qualified Leg: A Qualified Leg is one with at least 400 total Group Bonus Volume coming from anywhere in the depth of the Leg. The top Distributor of a Leg does not have to be Commission Qualified for the Leg to be considered a Qualified Leg. Ruby Leg: This a Leg with a Ruby somewhere in the depth of the Leg. cmp-compplan-001 19 | COMPENSATION PLAN