U.S. Compensation Plan Overview - Drtchiro

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U.S. CompensationPlan OverviewEffective January 1, 2014Updated July 1, 2014

U.S. Compensation Plan OverviewEffective January 1 , 2014Compensation is earned at ACN only whencustomers are acquired.The ACN Opportunity has been designed to help you build a successful business of your own. ACNIndependent Business Owners (IBOs) can earn money in two ways:Access your IBO Back Office for details on ACN’smonthly, promotional bonuses – designed to getnew IBOs off to a fast start. Monthly residual commissions based on their personal and downline customers’ usage of ACN’s services Weekly and Monthly Bonuses based on customer acquisitionPositions & QualificationsSTARTING POSITION: Every IBO starts as a Team Trainer (TT)Qualified Team Trainer (QTT)5 Customer Pointsand 3 PreferredServicesTo become a Qualified Team Trainer you must have a minimum of 5 Customer Points and at least 3 Preferred Services. At least one of those Preferred Services must beoutside of your household.EARNED POSITIONS:Executive Team Trainer (ETT)Executive Team Leader (ETL)YouYou7 Customer Pointsand 3 Preferred Services**15 Customer Pointsand 4 PreferredServices**Team Coordinator (TC)Regional Director (RD)Regional Vice President tsSenior Vice President (SVP)TCTCTCRVPTCQTTRD RVPTCETTTCTCYou acquire 7 Customer Points and3 Preferred Services and1 QTT in 2 separate legs at any levelYou acquire 15 Customer Points and4 Preferred Services and1 ETT in 3 separate legs at any level200 Customer Pointsin 3 separate legs1 TC in 2 separate legs at anylevel and a third leg with200 Customer Points1 TC in 4 separate legs at any levelMinimum Monthly DownlineBillings 150,000(Limit 75,000 per leg)Platinum RVP†Minimum Monthly DownlineBillings: 300,000(Limit 150,000 per leg)TCMust have 1 TC or above in 6separate legs, including at least2 RVP legs and 1 RD legMinimum MonthlyDownline Billings: 500,000(Limit 250,000 per leg)TCs and above must maintain 15 Customer Points and 4 Preferred Services** to receive earned position compensation.*RVPs as of March 31, 2014, have until January 1, 2015, to meet these qualifications.Platinum RVP is a designation that applies to North American IBOs only.†**At least one of the Preferred Services must be outside of your household.Success as an ACN Independent Business Owner is not guaranteed, but rather influenced by an individual’s specific effort. Not all IBOs make a profit and no one can be guaranteed success as an ACN IBO. ACN’s Compensation Plan issubject to change without notice at ACN’s discretion and for any reason. ACN Opportunity, LLC 2014 CompPlanOverview RP W 0701141

YBA counts as 2 Points and1 Preferred CustomerCustomer Point System & Commissionable RevenueThe only way to earn income at ACN is through the acquisition of customers; therefore all IBOs must acquire customers in order to meetqualifications and advance through ACN’s earned positions. ACN utilizes a Customer Point system for each of its products and services. CoreServices provide long-term residual income.for the life of your subscription!1CorePreferredCustomersCustomer PointsPhone Adapter – Transfer Phone NumberH33 Points100%Life of CustomerPhone Adapter – New Phone NumberH32 Points100%Life of Customer32 Points100%Life of CustomerH33 Points100%Life of CustomerH31st Line 3 Points2nd Line 5 Points3rd Line 7 Points4th Line 9 Points100%Life of Customer100%Data/fax line is notcommissionableLife of Customer31-2 Lines 3 Points3-4 Lines 5 Points5-6 Lines 7 Points7 Lines 1 Additional Point Per LineExcludes Data/Fax Line1 PointPay As You Go 0 Points100%Life of Customer3 Points per LineMobile Hotspots: Commission Only100%Life of Customer2 Points per Line100%Life of CustomerProduct / ServiceMonthly Commissionable Revenue*Duration of Pointsand CommissionsResidential – Digital Phone ServiceVideo PhoneACN Advantage – Local and Long DistanceBusiness – Digital Phone ServicePhoneServicesDigitalTalk ExpressBusiness Advantage Local and Long DistanceHACN ViewWirelessEnergy –Natural Gasor ElectricityMerchantServicesFlash Wireless (s) and Flash WirelessUnlimited Voice, Text and DataH3Flash Wireless (s) and Flash WirelessUnlimited Voice or Unlimited Voice and TextH3XOOM Energy ResidentialH31 Point per ServiceH32 Points per Service50%**50%**Life of CustomerXOOM Energy Small Businessup to 50%**Life of Customer100%Paid on AnoviaRevenue for the Lifeof CustomerXOOM Energy Big BusinessH32-5 Points per ServiceAnovia Merchant Sevices with Over 3,000Processing/monthH33 PointsAnovia Merchant Services - New Merchants/Merchants Processing Less Than 3,000/monthNew & Up to 1,500/month 1 Point 1,500 to 3,000/month 2 PointsLife of Customer*Commissionable revenue is billed revenue less taxes, surcharges and an allowance for bad debt. ACN reserves the right to reduce commissionable revenue by a percentage factor for promotional plans, products, negotiated pricing or certain services.Commissionable Billing for some products is a fixed amount. IBOs receive a percentage of these amounts each month depending on where they fall in the Compensation Plan.**Energy rates subject to fluctuation. ACN reserves the right to cap commissionable billing at 1/therm and 13.5 /kilowatt-hour. IBOs will receive commissions on 50% of the customers’ actual energy usage excluding bad debt, taxes and surcharges.1If a Your Business Assistant subscription was used for CAB or TCAB qualifications and is cancelled within the first 60 days, the bonus will be retracted. ACN Opportunity, LLC 2014 CompPlanOverview RP W 0701142

Customer Point System & Commissionable RevenueThe only way to earn income at ACN is through the acquisition of customers; therefore all IBOs must acquire customers in order to meet qualifications and advance through ACN’s earned positions. ACN utilizes acustomer point system for each of its products and services.Product / ServiceSecurity andAutomationTelevision &High SpeedInternetTelevisionVivint Home Security & AutomationPreferredCustomersCustomer PointsMonthly Commissionable Revenue*Duration of Pointsand Commissions33 Points100%42 monthsProtect America Business Security & Automation32 Points100%3 yearsADT Home Security & Automation31 Point 353 yearsAT&T U-verse/DSLTV & Internet:2 U200, U200 Latino, U300, U45031 Point 100Verizon FiOSTV & Internet231 Point After 60 Days 50†2 years1 Point 60†2 yearsHAT&T U-verse/DSLTV & Internet:2 U-Family or U1002Satellite TV – DIRECTV or DISH(Residential or Business)Satellite TV – DISH FLEX24 Plan & Smart Pack2 years50% Commissionable†3DIRECTV – 2 Points (Special Promo)DISH – 1 PointDIRECTV – 40;DISH – 402 years1 Point 19.992 years1 Point 50†2 yearsAT&T U-verseTV Only: U-Family, U10020 Points 20†2 years50% Commissionable†1 Point 352 yearsAT&T U-verseU-verse Internet Only1 Point 35†2 yearsAT&T DSLAT&T Basic DSLVerizon FiOS1 Point 25†2 years1 Point After 60 Days 25†2 yearsTime Warner Cable, Cox (15M )Comcast1 Point After 60 Days1 Point After 60 Days 20†2 years2 yearsCenturyLink1 Point1.5M - 25†3M, 5M, 7M - 35†10M - 50†2 yearsFrontier DSL1 Point 25†2 years1 Point3Mbps - 20†6Mbps or 12Mbps - 25†2 years3Windstream DSL 15††PremiumTechnicalSupport†AT&T U-verseTV Only: U200, U200 Latino, U300, U450 (HD)2HughesNetHigh SpeedInternetCorePremium Technical Support(Residential or Business)Residential:1 PC 1 PointUp to 3 and up to 5 PCs 2 PointsBusiness:1 PC 1 PointUp to 3 and up to 5PCs 2 PointsUp to 7 and up to 10 PCs 3 Points50% Commissionable100%Life of Customer*Commissionable revenue is billed revenue less taxes, surcharges and an allowance for bad debt. ACN reserves the right to reduce commissionable revenue by a percentage factor for promotional plans, products, negotiated pricing or certain services. CommissionableBilling for some products is a fixed amount. IBOs receive a percentage of these amounts each month depending on where they fall in the Compensation Plan.2For AT&T U-verse and Verizon FiOS bundled plans, the television and Internet Points will appear separately on reporting. For example, 1 Point for the TV portion and 0 Points for the Internet portion, for a total of 1 point (1 Preferred Customer). ACN Opportunity, LLC 2014 CompPlanOverview RP W 0701143

Monthly Residual CommissionsOver time, the majority of your compensation will come from the residual income of your customers’ monthly billings. Customer acquisition is the fuel for your business,creating long-term lasting income and by teaching other people how to do the same thing, you will build residual income for yourself.Personal CommissionsAs you acquire your own, personal customers, you qualify to earn between 1% and 10% of their monthly bills.This percentage is based on your total number of Customer Points:1-29 Customer Points 1%Example:(Average 40 Monthly Bill)30-39 Customer Points 3%40 Customer Points 40/month personal commission40-59 Customer Points 5%60 Customer Points 10%20 Customers (totaling 40 Customer Points) x 40 bill x 5% 40/month personal commission60 Customer Points 120/month personal commission30 Customers (totaling 60 Customer Points) x 40 bill x 10% 120/month personal commissionOverriding Residual CommissionsSchedule of commissions earned from customer acquisition in your organization and Personal Customer Points required:Commissions by ServicePlatinum RVP is a designation that applies to North American IBOs only.†Energy forLarge BusinessQUALIFICATIONS FOR EACH COMMISSION LEVEL1-10 %2%See box above1/4 %1/4 %1/2 %1/4 %10341/4 %1/2 %1/4 ions andEssential ServicesPersonal127Open Line RVP1st Generation RVP2nd Generation RVPOpen Line SVP1st Generation SVPRVP1 1/2%1%1/2%Personal Customer Points------60Platinum RVP†3%2%1/2%1/2%-----------A Platinum RVP and RVP earn commissions on allcustomers below 7th level to an unlimited number oflevels to the next RVP’s 7th level. For energy largebusiness, this applies for customers below the 4th level.2%1%1/2 %------A SVP earns commissions on all customers below 7thlevel to an unlimited number of levels to the next SVP’s7th level. For energy large business, this applies forcustomers below the 4th level. ACN Opportunity, LLC 2014 CompPlanOverview RP W 070114Complete customers must be received by 2:00pm ET on the first Friday of the month in order for IBOs to qualify forcommissions. Commissions are released on the first business day following the third Friday of each month. Commissionsare paid the third month after the close of the month the customer is billed.Commissions on large commercial accounts and customers acquired by Affinity programs (such as not-for-profitorganizations) may be paid according to a custom commission schedule that will be determined at the time the program/contract is completed.4

Weekly and Monthly BonusesThe second way IBOs can earn compensation is through weekly Customer Acquisition Bonuses (CABs) and monthly Team Customer Acquisition Bonuses (TCABs).Customer Acquisition Bonuses – CABsCustomer Acquisition Bonuses (CABs) are paid when your newly sponsored Team Trainers become qualified within 30 days of their start date. In order to count for qualifications, all new customers must show a“complete” status on the IBO’s Personal Customer List. A customer will show a “complete” status when all the necessary information has been received and processed by ACN.CABs will be paid 14 days following the new TT’s start date once they qualify within their first 30 days.TC and Above CABs:Team Coordinators and above can earn CABs on all the new QTTs in their open line – and not just the QTTs they directly sponsor.TIP: An IBO’s open line consists of all the IBOs in their organization down to the next IBO at their same earned position or higher.Customer Acquisition Bonus ScheduleTCRVPSVPOpen Line 501st generation 20Open Line 301st generation 15Open Line 301st generation 10RDs, RVPs and SVPs can earn TC CABs on newly Qualified Team Trainers in their TC open line.Remember:Compensation is earned at ACN only when customers are acquired. ACN reserves the right toretract the payment of any bonus or commis sion if it is found that a customer used to qualifyfor a bonus or a certain commission level was not a valid billing customer. ACN Opportunity, LLC 2014 CompPlanOverview RP W 0701145

Team Customer Acquisition Bonuses (TCABs)Monthly Team Acquisition Bonuses (TCABs) are paid to ETTs and above for helping new TTs in your open line get qualified within their first 30 days and vary from 100 to 50,000 depending on your earnedposition and the number of new, open line, QTTs in a calendar month.Executive Team Trainer (ETT) TCABExecutive Team Leader (ETL) TCABAnyone who is an ETT during a month of this promotion is eligible. An ETT who hasat least 2 open line TTs, whose start dates are during a calendar month of thispromotion, and each of those TTs are qualified(1) within 30 daysof their start date will receive a 100 BONUS!Anyone who is an ETL during a month of this promotion is eligible. An ETL who has at least 3 openline TTs, whose start dates are during a calendar month of this promotion,and each of those TTs are qualified(1) within 30 days of their vstartdate will receive a 200 BONUS!Amount of TCABCompensationAmount of TCABCompensation 1002 QTTs 5004 QTTs 1,0006 QTTs 1,5009 QTTs 2,50012 QTTs 3,000 2003 QTTs15 QTTs 7505 QTTs 1,50010 QTTs 2,50015 QTTs 3,00020 QTTs 4,00025 QTTs 5,00030 QTTsTeam Coordinator (TC) TCABRegional Director (RD) TCABAnyone who is a TC, RD, RVP or SVP during a month of this promotion is eligible. A TC who has at least 5open line TTs, whose start dates are during a calendar month of thispromotion, and each of those TTs are qualified(1) within 30 days of their startdate will receive a 500 BONUS!Anyone who is a Regional Director during a month of this promotion is eligible. A RD who has atleast 10 open line TTs whose start dates are during acalendar month of this promotion, and each of those TTs are qualified(1)within 30 days of their start date will receivea 1,000 bonus! 5005 QTTs 1,50010 QTTs35 QTTs 7,00040 QTTsThe number of new open line TTs who become qualified within their first 30 days.The number of new open line TTs who become qualified within their first 30 days.Amount of TCABCompensation 6,000Amount of TCABCompensation 3,00015 QTTs 5,00020 QTTs 6,50025 QTTs 8,00030 QTTs 10,00040 QTTs 12,00050 QTTs 1,000 25,00010 QTTs100 QTTsThe number of new open line TTs who become qualified within their first 30 days.Regional Vice President (RVP) TCAB 2,50020 QTTs 4,00030 QTTs 6,00040 QTTs 10,00050 QTTs 15,00075 QTTs 20,000100 QTTs 30,000150 QTTsThe number of new open line TTs who become qualified within their first 30 days.RVPs will earn the higher of the RVP TCABS or RD TCABs each month. RVP TCABS will continue to becalculated weekly and any adjustment for RD TCABS will occur at least every two weeks.Anyone who is a RVP or SVP during a month of this promotion is eligible. A RVP who has at least25 open line TTs, whose start dates are during a calendar month of this promotion, and each ofthose TTs are qualified(1) within 30 days of their start date will receive a 2,000 BONUS!For Example: An RVP with an RVP open line of 100 QTTs ( 10,000 TCAB) and RD open line of 75 QTTs( 15,000 TCAB) would get paid on the RD open line of 15,000 as this is the higher TCABs.Amount of TCABCompensationTCs and above with QTTs in other countries will earn TCABs prorated by the number of QTTs in eachcountry.TCABs will be paid 14 days following the new Team Trainer’s start date, once they qualify within their first30 days. Bonus payments will be calculated and paid weekly and reconciled after the close of the applicablecalendar month. In order to receive TCABs, ETTs and ETLs must maintain the minimum number of personalcustomers to be qualified as a Team Trainer.1 2,00025 QTTs 5,00050 QTTs 7,50075 QTTs 10,000100 QTTs 15,000150 QTTs 25,000250 QTTs 50,000500 QTTsThe number of new open line TTs who become qualified within their first 30 days. ACN Opportunity, LLC 2014 CompPlanOverview RP W 0701146

Anovia Merchant Sevices with Over 3,000 Processing/month H 3 3 Points 100% Paid on Anovia Revenue for the Life Anovia Merchant Services - New Merchants/ of Customer Merchants Processing Less Than 3,000/month New & Up to 1,500/month 1 Point 1,500 to 3,000/month 2 Points Phone ServiceS WireleSS energy – natural gaS or electricity .