Compensation Plan

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Nature’s Sunshine Products, Inc.

Compensation Plan

How To Build Your Path To Prosperity

Nature’s Sunshine enjoys rewarding people for sharing products with friends and neighbors. Unlike most companies, we offer two separate compensation plans that each provide a path for growth and business development. Depending on how you want to build your business, choose from Legacy or Classic with all of their accompanying bene ts.

Rebates/Commissions

Qualification Volume (QV)

Every NSP product has an assigned point value called “Quali cation Volume.” Nature’s Sunshine uses these points to calculate monthly bonuses and commissions to which Members are entitled.

QV points are also used for quali cations to determine all payment levels, rank maintenance, rank advancement, convention quali cation and Top Achievers Club membership.

Bonus-earners should remember that compensation from promotional sign-up packages is calculated separately from regular paid-on QV.

Rebate

Money that is returned to the Member for personal purchases is considered a rebate.

This rebate is a further reduction in the cost of product purchased. Rebates will not be reported to the IRS (Form 1099) unless they exceed $5,000 in any given year. NSP does not report the actual amount of the product you purchased to the IRS.

When a Member orders from NSP and his/her personal QV points are at least 100 for the entire month, NSP pays a rebate (based on “paid on” QV points of purchased NSP products) on the earned amount. If a Member purchases NSP products from his/her upline Manager, the Manager should transfer QV points on the total amount of purchase.

Commission

Money earned by a Member from the Member’s successline is considered a commission (i.e., non-employee compensation). NSP is required to withhold applicable taxes on commissions earned for those accounts without a valid Social Security Number (SSN), Federal Tax Identi cation Number (FTIN) or Individual Tax Identi cation Number (ITIN) on le with NSP.

Commissions or non-employee compensation will not be reported to the IRS if the total amount is less than $600 (box 7 of IRS form 1099). If you fall into this category, consult with your tax advisor as to where you need to report this amount.

EXCEPTION: If you have tax withholding (box 4), then box 7 (non-employee compensation) of form 1099 WILL be reported. Nothing contained in this compensation plan shall be considered tax advice on the part of NSP.

SmartStart Sponsoring Bonuses

Nature’s Sunshine will often create special sponsoring programs that reward those who share NSP with others. In the sign-up month only (generally), these program rules will supersede the normal compensation plan rules. Please visit http://www.naturessunshine.com for details.

Rebate/Commission Schedules

Members earn rebates based on their own personal sales volume, according to the Compensation Plan they have selected (Legacy or Classic). They also earn commissions based on the personal purchases of each of the Members in their group, according to the type of membership each Member has, and the total volume of all the Members in their group.


NOTE: Classic-plan rebates and commissions paid to all Members within a successline group will be deducted from the above amount. Personal Paid-On QV Example: Jane has a personal QV of 300 points. Her group QV (which includes her personal QV) is 750 points. Both Kay and Larry are Members in Jane’s group. Kay has 80 QV points and Larry has 370 QV points. Based on the payment schedule (above), Jane would earn eighteen percent (18%) on her personal QV as well as a full eighteen percent (18%) on Kay’s QV. Larry quali es to receive twelve percent (12%) back on his QV. Since Jane quali ed at eighteen percent (18%), she would receive a six percent (6%) commission on Larry’s QV (18%–12% = 6%).


NOTE: Legacy-plan rebates and commissions paid to all Members within a successline group will be deducted from the above amount. Personal Paid-On QV Example: Jane has a personal QV of 510 points. Her group QV (which includes her personal QV) is 750 points. Both Kay and Larry are Members in Jane’s group. Kay has 80 QV points and Larry has 160 QV points. Based on the payment schedule (above), Jane would earn fteen percent (15%) on her personal QV as well as a full fteen percent (15%) on Kay’s QV. Larry quali es to receive ten percent (10%) back on his QV. Since Jane quali ed at 15 percent (15%), she would receive a ve percent (5%) commission on Larry’s QV (15%–10% = 5%).


To be a Manager, you must accumulate at least 100 QV points each month in personal purchases and have 1,000 Group QV points.

  1. The requirements for rst-level Manager may include QV and Leadership Equivalents. (Receive one QV equivalent for every 2,000 QV points above 1,000.) Based on a six-month average.
  2. 50 Managers of the 200 need to be from foreign markets; must have at least one Manager in each of five foreign countries and at least one first-level Manager in three of those foreign countries.

Note: Learn all about the exciting perks and benefits that are available with each rank you achieve.


*The successline requirements for rank are unchanged, including rst-level Managers. Please note: Just like QV Equivalents, Leadership Equivalents are averaged over a six-month period. Leadership Equivalents have been in effect since Jan. 1, 2001. Leadership Equivalents may only be applied on the rst-level Managers, as shown in the above table. You must be an Area Manager or higher before Leadership Equivalents are in effect.



To be a Manager, you must accumulate at least 100 QV points each month in personal purchases and have 1,000 Group QV points.

  1. 50 Managers of the 200 need to be from foreign markets; must have at least one manager each in ve foreign countries and at least one rst-level Manager in three of those foreign countries.
  2. Overrides for 7th level and beyond available to Global Elites with at least 100 Managers in their successline from foreign markets.

Note: Learn all about the exciting perks and bene ts that are available with each rank you achieve.


NSP Managers

Manager QV Requirements

  1. A Member becomes a Manager when he/she achieves a minimum of 1,000 Group QV points (as de ned hereafter), at least 100 of which must be Personal QV points (as de ned hereafter) for one calendar month. The month in which a Member attains 1,000 Group QV points, he/she automatically quali es as a Manager.

  2. To retain Manager status, a Member must maintain this minimum volume in subsequent months.

  3. If a Manager’s Group QV drops below 1,000 points in any given month, a Member will receive rebates and commissions on his/her own Quali cation Volume (QV) and that of his/her successline Members, based on the normal rebates/commissions schedule, but will lose all Manager commissions on his/her successline Managers and other Manager bene ts for that month. During such month, all lost commissions automatically “roll up” to the next upline Manager. This is in addition to the normal 1st Level Manager commissions paid to that upline Manager from any Group QV of the pending Manager.

  4. A Manager can drop below 1,000 Group QV points two out of every 12 months (within the calendar year) without losing Manager status, but the Manager will be paid commissions only as a Member in those months, based on the normal rebates/commissions schedule. Such months are called “pending” months. On the third month in which the Manager fails to reach 1,000 Group QV points, he/ she will lose Manager status until he/she re-qualifies as a Manager. If these two months are consecutive at the end/beginning of the calendar year (i.e., November and December or December and January), then if the minimum Group QV requirement is not met, the Manager will lose status in the month that immediately follows those two pending months. Managers who have “pending months” in December and January and do not meet their required volumes for February will have used their two pending months for the new calendar year. Managers who lose their Manager status are automatically reinstated in the month in which they achieve at least 1,000 Group QV points.

  5. When a Manager quali es as a new Manager, the QV requirement for the upline Manager is reduced to 500 Group QV points (which includes 100 personal QV points) for that month only. NSP does not recognize a reinstated Manager as a new Manager breakout unless he/she dropped Manager status at least 12 months prior to the reinstatement.

Manager Benefits

NSP Managers enjoy:

    1. Higher percentage volume rebates for personal sales, provided all QV requirements are maintained.

    2. The opportunity to develop and promote other Members to Manager status.

    3. Manager overrides on the sales of each rst-level Manager he/she promotes.

    4. Participation in all Manager incentive programs, including contests, quali cation for conventions and competition for Manager recognition and Development Award programs.

    5. A subscription to our quarterly Manager Extra e-magazine.

    6. The opportunity to attend National Convention. Managers can qualify to have NSP pay part of the cost of attending.

    7. All Managers receive a special pin and a rank advancement certi cate after they have achieved three consecutive months as a Manager.


Compensation Plan Benefits

The Classic and Legacy Override charts show how you can earn money based on volume within your successline. For example, should you qualify for overrides on your third level, consult the Classic chart for the percentage paid on all of your third-level Classic QV and the Legacy chart for all of your third-level Legacy QV.

Manager QV Equivalents–Classic Plan

When Classic Managers accumulate a six-month average of 2,000 Group QV points above the 1,000 Group QV points monthly requirement for Manager status, they earn a “Manager Equivalent.” Each Manager Equivalent counts as a rst-level Manager toward rank advancement and car credit where applicable. However, Manager Equivalents do not count toward earning annual Manager Increase Awards or Leadership Equivalents.

Leadership Equivalents–Classic Plan

Leadership Equivalents allow you to advance in rank more quickly by giving you extra credit for rst-level Managers who hold advanced ranks. Apply the Equivalents granted chart to your rst-level Managers to determine the number of leadership equivalents for which you may qualify. You must be an Area Manager or higher before Leadership Equivalents take effect.

Sunshine Select

Biannually, Managers may qualify for special Sunshine Select status by participating in a personalized development program. Quali cation terms are six months long, and quali ers will enjoy exclusive Sunshine Select bene ts for the six-month period immediately following quali cation. Sunshine Select bene ts include discounts on personal purchases. Sunshine Select requirements and rewards are subject to change.

Managers receive other bene ts in addition to the commissions and bene ts outlined in the Manager Rank, Quali cations and Commissions charts.


Awards and Recognition

I-Inspire Development Awards

Nature’s Sunshine recognizes the top 20* I-Inspire- eligible Managers who earned the I-Inspire trip and National Convention with the highest total points, as follows:

Manager of the Year Award

Each year, a Home Of ce committee carefully selects one manager/team from the top 5 I-Inspire point earners to be honored as Managers of the Year. This person or team not only demonstrates impressive achievement in the I-Inspire program but exempli es principles of success, including integrity, service, commitment and ethical practices. Recipients of this award will receive:

  • A $5,000 bonus (awarded after attending National Convention)

  • Manager of the Year trophy

  • A special onstage presentation during National Convention

  • Airfare for two to next year’s National Convention with VIP treatment

President’s Award – The Top 5** I-Inspire Point Earners

Top 5 point earners will receive:

  • A $1,000 bonus (awarded after attending National Convention)

  • President’s Award trophy

  • Onstage recognition during National Convention

Leadership Award – The Top 6-20 I-Inspire Point Earners

The next 15 I-Inspire point earners receive:

  • A $500 bonus (awarded after attending National Convention)

  • Leadership Award trophy

  • Onstage recognition during National Convention

*Award winners will receive only the highest award they achieve, along with the accompanying prize.

**Does not include Manager of the Year.

Large Group QV Award – Achievers and Growers

Our top Achievers and Growers in both Retail and Practitioner categories will receive:

  • A VIP dinner with NSP executives and $500 cash while on the I-Inspire trip

  • A special onstage presentation during National Convention

  • A personalized plaque


Rank Advancement Awards

We recognize managers who have achieved a new, higher rank for three to six consecutive months during the qualification period. Rank advancement pins and certificates will be sent to advancing account holders after they have maintained the new rank (or higher) for three consecutive months.

Note: Once a Rank Advancement category is earned, participants will be presented with their rewards and bene ts as indicated. Rewards and bene ts are not retroactive and will not be held over from year to year. They will be considered forfeited if not used when described.

Star Manager

Requirements

New Star Managers must hold six consecutive months at the Star Manager level or above during the quali cation period.

Benefits

After the third consecutive month, new Star Managers receive:

  • Star Manager certi cate
  • Star Manager pin

After the sixth consecutive month, new Star Managers receive:*

  • $300 convention travel allowance (reimbursed after attending National Convention)

  • An invitation to attend a special luncheon during National Convention

  • A beautiful award

*Travel costs to National Convention are not included and are the responsibility of the Star Manager. New Star Managers can take advantage of the six-month bene ts at the next National Convention following the quali cation period. Bene ts will not be held over from year to year and will be considered forfeited if not used.


District Manager

Requirements

New District Managers must hold six consecutive months at the District Manager level or above during the quali cation period.

Benefits

After the third consecutive month, new District Managers receive:

  • District Manager certificate
  • District Manager pin

After the sixth consecutive month, new District Managers receive:*

  • $600 convention travel allowance (awarded after attending National Convention)

  • An invitation to attend a special luncheon during National Convention

  • A beautiful award

*Travel costs to National Convention are not included and are the responsibility of the District Manager. New District Managers can take advantage of the six-month bene ts at the next National Convention following the quali cation period. Bene ts will not be held over from year to year and will be considered forfeited if not used.


Area Manager

Requirements

New Area Managers must hold six consecutive months at the Area Manager level or above during the quali cation period.

Benefits

After the third consecutive month, new Area Managers receive:

  • Area Manager certificate
  • Area Manager pin

After the sixth consecutive month, new Area Managers receive:

  • A beautiful award presented onstage at National Convention

  • An invitation to attend a special New Area event*

*The New Area event is a special experience tailored to new Area Managers and in most circumstances will be held within the same year that the National Convention recognition takes place. The actual event and location may change from year to year. Bene ts are not retroactive, will not be held over from year to year and will be considered forfeited if not used.


Regional Manager

Benefits

Requirements

New Regional Managers must hold three consecutive months at the Regional Manager level or above during the quali cation period.

Benefits

After one month, new Regional Managers receive:

  • $250 a month for car allowance. Regional Managers and above may take advantage of this great bene t (see Car Program Benefits).

After three consecutive months, new Regional Managers Receive:

  • Regional Manager certificate
  • Regional Manager pin
  • A beautiful award presented onstage at National Convention

Divisional Manager

Requirements

New Divisional Managers must hold three consecutive months at the Divisional Manager level or above during the quali cation period.

Benefits

After one month, new Divisional Managers receive:

  • $400 a month for car allowance. (see Car Program Benefits).

After three consecutive months, new Divisional Managers receive:

  • A $2,000 bonus (awarded after attending National Convention)

  • Divisional Manager certificate

  • Divisional Manager pin

  • A beautiful award presented onstage at National Convention


Senior Divisional Manager

Requirements

New Senior Divisional Managers must hold three consecutive months at the Senior Divisional Manager level or above during the qualification period.

Benefits

After one month, new Senior Divisional Managers receive: •

  • $550 a month for car allowance (see Car Program Benefits).

After three consecutive months, new Senior Divisional Managers receive:

  • A $3,000 bonus (awarded after attending National Convention)

  • Senior Divisional Manager certi cate

  • Senior Divisional Manager pin

  • A beautiful award presented onstage at National Convention


National Manager*

Requirements:

New National Managers must hold three consecutive months at the National Manager level or above during the quali cation period.

Benefits

After one month, new National Managers receive:

  • $700 a month for car allowance (see Car Program Benefits).

After three consecutive months, new National Managers receive:**

  • National Manager certificate
  • A white gold and diamond National Manager pin
  • A $5,000 bonus (awarded after attending National Convention)
  • I-Inspire Trip – Platinum level (at the next I-Inpire trip following rank achievement)*
  • National Convention for two including:*
    – Airfare for two
    – VIP treatment (upgraded hotel room, in-room amenity, transportation, reserved seating, etc.)
    – Invitation to attend the VIP Manager Activity and Dinner
    – A beautiful award presented onstage at National Convention

*To continue receiving National Convention bene ts, National Managers must maintain their rank (National Manager or above) for 12 out of 12 months in a calendar year (unless otherwise stated in the I-Inspire quali cation rules.)

**New National Managers can take advantage of the three-month bene ts at the next National Convention following the quali cation period. Bene ts are not retroactive and will not be held over from year to year and will be considered forfeited if not used.


Senior National Manager*

Requirements:

New Senior National Managers must hold three consecutive months at the Senior National Manager level or above during the quali cation period.

Benefits

After one month, new Senior National Managers receive:

  • $850 a month for car allowance (see Car Program Benefits).

After three consecutive months, new Senior National Managers receive:**

  • Senior National Manager certfiicate
  • A white gold and diamond Senior National Manager pin A $10,000 bonus (awarded after attending National Convention)
  • I-Inspire Trip – Platinum level (at the next I-Inpire trip following rank achievement)*
  • National Convention for two including:*
    – Airfare for two
    –  VIP treatment (upgraded hotel room, in-room amenity, VIP transportation, reserved seating, etc.)
    – Invitation to attend the VIP Manager Activity and DinnerA beautiful award presented onstage at National Convention

*To continue receiving National Convention bene ts, Senior National Managers must maintain the rank of National Manager or above for 12 out of 12 months in a calendar year (unless otherwise stated in the I-Inspire quali cation rules.)

** New Senior National Managers can take advantage of the three-month bene ts at the next National Convention following the quali cation period. Bene ts are not retroactive and will not be held over from year to year and will be considered forfeited if not used.


Global Elite Manager*

Requirements:

New Global Elite Managers must hold three consecutive months at the Global Elite Manager level during the quali cation period.

Benefits

After one month, new Global Elite Managers receive:

  • $1,000 a month for car allowance (see Car Program Bene ts on this page.)

  • After three consecutive months, new Global Elite Managers receive:**

  • Global Elite Manager certi cate

  • A white gold and diamond Global Elite Manager pin

  • A $20,000 bonus (awarded after attending National Convention)

  • I-Inspire Trip – Platinum level (at the next I-Inpire trip following rank achievement)

  • National Convention* for two including:
    – Airfare for two
    – VIP treatment (upgraded hotel room, in-room amenity, VIP transportation, reserved seating, etc.)
    – Invitation to attend the VIP Manager Activity and Dinner
    – A beautiful award presented onstage at National Convention

*To continue receiving National Convention bene ts, Global Elite Managers must maintain the rank of National Manager or above for 12 out of 12 months in a calendar year (unless otherwise stated in the I-Inspire quali cation rules.)

**New Global Elite Managers can take advantage of the three- month bene ts at the next National Convention following the quali cation period. Bene ts are not retroactive and will not be held over from year to year and will be considered forfeited if not used.

Note: Global Elite Managers are required to have three international first-level Managers (each from a different international country) and a total of 50 successline Managers in ve international markets. To qualify for pay beyond the 6th level, a total of 100 international Managers is required.

Existing Global Elite, Senior And National Manager Benefits:

All existing Managers who have ever achieved the ranks of Global Elite, Senior and National Managers and want to be recognized at Nature’s Sunshine Products events at the highest rank they have achieved must meet the following requirements:

  • Global Elite Managers must hold at least Sr. National Manager status
  • Sr. National Managers must hold at least National Manager status
  • National Managers must hold at least Sr. Divisional Manager status

Note: Managers must hold rank for the duration of the quali cation period for each event they are recognized for. For example: If a Manager has been a National Manager in the past and wants to be recognized as a National Manager at National Convention, he/she must hold Sr. Divisional rank for the duration of the quali cation period.

All other Managers will be treated as current rank status for all future events.


Description Of Manager Benefits

 

Car Program Benefits

To qualify for the Car Program, participants must:

  1. Be paid as a Regional Manager or higher each month to receive a car allowance included in the bonus payment based on the following table. Allowance is paid according to the “paid at” rank each month. Regional Manager $250 Divisional Manager $400 Sr. Divisional Manager $550 National Manager $700 Sr. National Manager $850 Global Elite Manager $1,000
  2. After you purchase/lease your new car and send us a copy of the contract, you will receive your monthly car allowance as long as you are paid as a Regional Manager or above.
  3. You choose the vehicle make and model. The car must be less than 60 months/5 years of age.
  4. If your rank drops below Regional Manager in any month, you will not receive an allowance for that month.
  5. No payments will be made until NSP has a valid purchase/ lease agreement (car contract) on file.
  6. Your car allowance will be added to your monthly bonus check until the vehicle reaches 60 months of age. In order to continue receiving an allowance, you will need to send us a purchase or lease agreement for a new vehicle before your existing one passes the 60-month mark. We will send you a reminder letter approximately 3 months prior to the 60th month.
  7. Once you have your new car, please fax the contract to 1-800-633-2698, Attention: Leadership Support Services. The name on your car contract must match the NSP account holder’s name. Email leadershipsupport@natr.com with any questions, or call 1-800-833-4143.

NOTE: You are responsible for ALL insurance, licensing, maintenance and expenses related to the operation of your vehicle.

If a car program participant sells the qualifying car or terminates the lease, he/she must notify NSP Home Of ce within 10 days. No car allowance payment will be made in the month in which a car is sold unless a new purchase or lease agreement is submitted prior to the end of such month.

NOTE: All car program payments are considered income to the Manager and will be reported on the Manager’s federal IRS 1099 tax form from NSP.


Events

I-Inspire

Through our I-Inspire program, top Managers may qualify for an exclusive vacation to some of the world’s most interesting locales, enjoying wonderful accommodations, food, entertainment and culture. These trips create memories and strengthen bonds between leaders and with NSP executives. Recent trips include a Mediterranean cruise, an Alaska cruise and a week in Ireland! Quali cation requirements may vary for each trip.

National Convention

All Managers and above may qualify to attend this event held at various locations in the U.S. The convention focuses on product education, training and business skills. All Managers may qualify to have NSP pay up to one hundred percent (100%) of the convention costs (excluding travel expenses). Quali cations may vary from year to year and are mailed to all Managers. If a Manager quali es for two attendees, he or she may bring a spouse, partner or other Manager. Quali cations are non-transferable.

Leaders Conference

Nature’s Sunshine’s sales leaders meet together each year at Leaders Conference for business and product training. Participants take part in informative workshops and round table discussions as well as motivating general sessions. Costs to attend this event are paid by each participant. New Area Managers may qualify for NSP to pay the costs to attend Leaders Conference (including reasonable travel expenses approved by NSP).


International Sponsoring/ Orders

Market to Market orders – PV from the orders placed by a US Member in a foreign market will be entered in the US commission engine in the same month, unless the order is placed during the last 5 days, the order may still count, but might roll over to the next commission period.

International Downline PV – PV from the orders placed by the foreign downline of a US Member is not entered in the US commission engine. Commissions from this volume is paid separately with a 1 month delay.

Rank achieved through Global Sponsoring – Any international downline volume that would change your US payout is paid with a 1 month delay, along with any commissions earned in international markets.


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