Compensation Plan Details & Definitions

Affiliate (Retailer only): An independent contractor who has signed up to retail the product only. There is no charge for this however if an Affiliate wants to convert to a Distributor they must go to the first open spot in the binary downline (it can't be used to hold a position). A special webpage will be provided for Affiliates who are Internet retailers to get their Affiliate link. An Affiliate position feeds wholesale volume into your Binary leg for pay but the only commissions they collect are the difference between wholesale and retail.

Autoship: A standing order of XB-Fit products that is sent to a Distributor or Customer each month.

Business Center: A "Business Center" is a position in the pay plan. A Business Center is generated when monthly requirements are met by a Distributor.

Customer Position: A wholesale Customer enrolled in the Autoship program does Not receive commissions, but their purchases create Binary Commissions. The customer order generates sales volume to all Distributor Binary Centers above it. The customer volume will be applied to the lesser leg's volume of the enrolling distributor.

Customer Conversion: If a wholesale customer wants to convert to a Distributor, they must generate at least 65 PSV. Their Distributor position will be placed at the first open position in the Binary downline selected by the Sponsor.

Cycle: Every time $195 in Sales Volume accrues in each of the Distributor's legs is a "cycle". The amount used for a cycle is deducted from your Group Sales Volume. Any excess not used is carried over to the next week. The amount paid per Cycle is targeted at $15 and $25 depending on the distributors paid rank, but will float to maintain the target 50% of commissionable volume payouts.

Group Sales Volume (GSV): Sales Volume that accumulates in your Binary legs. Sales volume can come from your Downline Distributor's team sales Volume and/or sales Preferred Customer's wholesale sales volume or Affiliate wholesale Sales Volume. Distributors who fail to Qualify (see "Qualified Distributor") will have all GSV deleted from their Business Center (BC), and Distributors who are not Qualified will not accumulate GSV until they reach Qualified status by meeting and maintaining the stated requirements. The GSV on each Business Center leg is decreased weekly by the amount of sales volume used in order to generate a cycle or cycles when calculating commissions. The remaining amount of GSV is carried over to the next cycle.

Check Matching Bonus: When the Distributor reaches the Rank of Power Distributor and above they will collect a matching bonus of what their Personally Sponsored (they enrolled) Distributors earn in binary commissions. See compensation plan.

Personal Sales Volume (PSV): A combination of the Sales Volume of a Distributor's personal purchases for self consumption or face to face retail and the wholesale sales volume of Preferred Customer sales and Affiliates whom the Distributor Personally Sponsored.

Personally Sponsored (PS): The Enrollment of a new Distributor, Preferred Customer or Affiliate by a Distributor. The personal Sponsor of another Distributor is the eligible for matching bonuses! These bonuses can paid on either the right or left side of your Business Center. This is a great reward for personally enrolling and sponsoring Distributors.

Preferred Customer (PC): A wholesale customer who enrolls in the XB-Fit Autoship Program. The Preferred Customer volume is applied to the enroller's lesser leg. The customers' Autoship Wholesale Sales Volume feeds up to your Distributor Business Center (as Part of your Business Center's Group Volume).

Placement: The position where a new Distributor or Customer is placed by the Sponsor when enrolled (see definition of "Sponsor" below) in the Sponsor's Binary legs under her or his Business Center. This could be at any level below the Sponsor in one of the Sponsor's Binary Team Legs, creating volume and stimulating Distributor team commissions.

Qualified Distributor: The Qualified Distributor shall maintain a minimum monthly Personal Sales Volume from Autoship in the chart in the first page one of the Complan; Page 1 Chart. A Qualified Distributor is eligible to participate in the XB-FIT compensation plan and will receive all entitled GSV (Group Sales Volume) for payment. If a Distributor drops out of qualification all GSV is dropped out of all their Business Centers and GSV doesn't accumulate again for pay purposes until the Distributor becomes fully qualified again.

Rank: Rank in the XB-FIT Binary Pay Plan is determined by several qualification factors including enrollments, team promotions, Group Sales Volume, Balanced Volume, and Personal Sales Volume. The Rank demonstrates the commitment and hard work the Distributor has put into their business to reach that level of financial achievement. When a Distributor achieves a rank within the XB-FIT Pay Plan, they will keep that title but will be paid at whatever rank they are qualified at each week.

Renewal: An annual administration fee of (see policies and procedures) is due by the anniversary of the date the Distributor joined the company. Distributors that do not renew at the time of their annual anniversary will cease being Active and will lose the right to collect commissions as of that date.

Retail Customer: A customer who is not a Distributor in the XB-FIT Pay Plan who buys services (or merchandise) as a Preferred Customer or as the Customer of an Affiliate or as the Customer of a Distributor from a web site or other location.

Retail Profits: The difference between Distributor/Affiliate cost for XB-FIT fine products and selling them at Suggested Retail Prices OR in the case of a Preferred Customer on autoship paying 10% over Wholesale is also considered Retail Profit. An Affiliate sells at full retail and collects all the difference between wholesale and retail.

Sponsor: The Distributor who enrolls a new Distributor, Preferred Customer or Affiliate. When enrolling a Sponsor places the Distributor, Customer or Affiliate on their left or right legs in the binary structure. The Sponsor has a Placement option of which downline pay center they want the new Distributor or Customer placed under. The sponsor has two major duties (1) to help the new Distributor or Affiliate (This means the sponsor helps with training using the XB-FIT system (2) With Preferred Customers the Distributor will maximize their income by maintaining personal contact with the Preferred Customer and answering questions

Volume Accumulation Maintenance: A powerful moderating feature of the XB-FIT Pay Plan allowing unpaid Group Sales Volume in each Distributor's leg to accumulate towards the next cycle or cycles. This occurs as long as the Distributor remains a Qualified Distributor by meeting requirements. The integrity of the Pay Plan will be maintained at 50% payout. If the 50% limit is exceeded the following will be performed: Matching Bonus is capped first and to 90% of value, Cycle and Pools reduced by 1% for every 2% that matching is reduced. For example, if the cap is exceeded, matching is dropped until payout is within cap and Matching is 90%. Cycle and Pool are paid at 100%. When dropping Matching below 90%, drop 2% and then drop Cycle and Pools by 1%. Next drop Matching and then Cycle and Pools. Strong side volume is carried forward for maximum of 12 months. Carry forward is capped at 32,000 per week. The amount of carry forward used in any one week may not be more than 50% of lesser side volume.

Xtreme Lean Series