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Now we get to the fun part. You will be absolutely excited about the potential earnings designed into this program. As you read on it just keeps getting better and better. The company understands that a successful organization depends on the movement of product. The ability to obtain and retain quality Representatives is directly associated to the commission plan. We have invested a great deal of time and effort into designing an understandable program that excites and rewards people for their efforts and results. This Commission Plan is made a part of the Representative Agreement. The Commission Plan may be modified and modifications are binding in respect to your Representative Agreement. Definition and Qualifications of New Customer 1. Customer has met qualifications and has been accepted by Protect America, Inc. 2. System has been installed and is monitored by Protect America, Inc. monitoring facility. 3. Customer has provided all required paperwork and fees (including $10 donation to Feed the Children) to Protect America, Inc. prior to cut-off date for that commission period. New Customer must meet all qualifications for the Representative to receive commission. Each commission period is one (1) calendar month. Volume of New Customers, in determining commissions, does not carryover to the next month. Active/Inactive Representative: To receive commissions a Representative must be Active during a commission period. Active status is obtained by personally generating one (1) New Customer or your Marketing Organization generating a minimum of 50 New Customers during commission period. Inactive status for that particular commission period is having NOT met one of the requirements for Active Status. New Customer Volume Representatives receive commissions on their personal production, and on the production of other Representatives or Referral Agents that the Representative has sponsored into their Commission Group, or Representatives that have been sponsored by Representatives that they have sponsored and so on. One Representative sponsoring another Representative forms levels within your Commission Group. Representatives are paid commissions based upon New Customers who have been referred by the Representative’s Commission Group. The total number of New Customers is referred to as New-CV. (New Customer Volume.) A Representatives New-CV (including the New-CV of the Representatives Referral Agents) is included in the calculating the total of New-CV for the Representatives Commission Group. Commission Group (CG) Your Commission Group (CG) may consist of up to the first seven (7) levels of your Marketing Organization. The number of levels you will be paid on will be determined by your Marketing Organization’s New-CV for that commission period. To maximize your commissions the Company counts the total number of New Customers acquired by your entire Marketing Organization to determine the levels you are paid on. Calculating your New-CV using your entire Marketing Organization maximizes your commission. Compression- The Company will move Active Representatives up one level (or more) to replace Inactive Representatives, when computing commission. (Example of Compression: You are eligible this commission period to be paid on all seven levels of your Commission Group. A Representative on the 7th level this month does not produce a New Customer. Your representative on the 8th level (who is active), produces 2 New Customers. Your 8th level Representative moves up to the 7th level for that commission period and you receive commission on his/her production. Since the Company uses full compression all Inactive Representatives are removed to compute and maximize your commission. Titles There are five (5) different titles earned by a Representative. These are Distributor, Senior Distributor, Director, Regional Director, and Executive Director. The word Representative refers to all titles. Titles can change from month-to-month based on New-CV. DISTRIBUTOR: Representative’s title upon entering the program. SENIOR DISTRIBUTOR: You receive the title of Senior Distributor when the production of your Marketing Organization equals or exceeds 10 New Customers during a calendar month. DIRECTOR: You receive the title of Director when your Marketing Organization’s production equals or exceeds 50 New Customers during a calendar month. REGIONAL DIRECTOR: You receive the title of Regional Director when your Marketing Organization’s production equals or exceeds 150 New Customers during a calendar month. EXECUTIVE DIRECTOR: You receive the title of Executive Director when your Marketing Organization’s production equals or exceeds 250 New Customers during a calendar month. Executive Director shall also receive and additional $500 allowance for that commission period. Referral Agent Program (RAP) Referral Agents are individuals or companies who elect not to become a Representative but do wish to promote the special security offer by distributing promotional materials. They are paid a flat one-time commission of $100 on each New Customer installation obtained by their direct referral. (Referral Agents do not sponsor other Referral Agents or Representatives.) PERSONAL COMMISSION IS CALCULATED ON: Personal Commission: Representative is paid a one-time personal commission on New CV acquired as a result of Representative’s referral. (Example:June you get 5 Customers = $825) Referral Agent production is included in the computation of Representatives personal New-CV. The Representative is paid the difference between the Referral Agents commission and what the Representative would have been paid for the same Customer had the Representative referred the Customer. (Example: Representative based on their personal production qualifies for $150 this commission period on each New Customer. They will also be paid $150 minus $100 Referral Agent commission on each New Customer referred by their personally sponsored Referral Agents.) Personal Commission on Additional Product: Representative is paid a one-time ten (10%) commission based on any additional product ordered by a New Customer that was referred by the Representative. MARKETING ORGANIZATION COMMISSION CALCULATED: Bonus Commission: Column and levels paid on is determined by Marketing Organization New CV. Dollar amount calculated from Commission Group (CG). Bonus Commission on Additional Product: Dollar Amount paid to Representative for additional product purchased by the New Customers that were included in the calculation of Bonus Commission. Recurring Revenue Commission: A monthly amount paid to Representative based on Customer Recurring Revenue paid to Protect America, Inc. Representative shall qualify for Recurring Revenue Commission each calendar month that Representative’s Marketing Organization New CV equals or exceeds 150. Dollar amount shall be computed from New Customers that were included in the calculation of Bonus Commission. Customer if over 30 days delinquent on monitoring services fees owed to Protect America, Inc., will not be included in the calculation of Recurring Revenue Commission for that commission period. PIN Number Commissions are credited to a Representative or Referral Agent whose Personal Identification Number (PIN) appears on the Standard Monitoring Agreement. Commission Distribution Date Commissions and New CV are computed on the first of each month for the previous calendar month. Commissions are distributed on the 10th of each month. (Please allow 5-10 days for postal delivery.) Any monies owed to Company by Representative will be deducted from commissions. Minimum Commission Check The minimum commission paid during any commission period is $100.00. If the Representative’s commission is less than $100.00 for a particular commission period, the commission will be held over, and paid during the next commission period, providing commission has then reached a minimum of $100.00. Official Commission Schedule PERSONAL PRODUCTION
Directors, Regional Directors, and Executive Directors receive $200 personal referral commission per New Customer Installation. Personal Commission on Additional Equipment is 10% MARKETING ORGANIZATION
Bonus Commission
Bonus Commission on Additional Product
Recurring Revenue Commission
*The Official Compensation Plan illustrates the dollar amounts, percentages, and formula for calculating commissions owed to a Representative. The Official Compensation Plan does not guarantee commissions. Your commissions will be based upon your personal production, as well as the production of your Marketing Organization.
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