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Section 10. Sales Compensation Plan

doTERRA Thailand Policy Manual

There are two fundamental ways in which a Wellness Advocate can earn bonuses: (1) through retail markups; and (2) through bonuses (sometimes called commissions) paid on a Wellness Advocate’s product sales and the sales of other Wellness Advocates in his Organization.

Bonuses. Wellness Advocates can also earn bonuses based on the sale of products in all markets where the Company conducts business. Not all products or promotions from the Company generate bonuses. All products or promotions that will generate a bonus are assigned a Personal Volume (PV) value.

A. Definitions

Wellness Advocate: An independent distributor under the Direct Sales and Direct Marketing Act, B.E. 2545 (2002)

Commissionable Order: An order that is assigned Personal Volume points, which is timely ordered and paid for by a Wellness Advocate, Retail Customer or Wholesale Customer.

Company Volume: Company Volume is the total amount of Personal Volume sold to all Wellness Advocates, Wholesale Customers, and Retail Customers.

Frontline Organization: A Frontline Organization is the Organization of one of a Wellness Advocate’s personally sponsored Wellness Advocates and his Customers.

Local Market Volume: The collective Personal Volume of all Wellness Advocates that live in a designated Local Market. Local Market Volume is a term used to define the Founder’s Bonus. Organizational Volume (OV): The sales volume measured in Personal Volume, of a Wellness Advocate, and of all other Wellness Advocates, Wholesale Customers, and Retail Customers in the Wellness Advocate’s Organization. Thailand is the local market in this Policy Manual.

Personal Volume (PV): The sales volume, measured in points, of products sold to a Wellness Advocate in one calendar month, primarily for resale to customers or personal consumption. Not all products qualify for PV value. PV does not include products sold with Product Credit. The PV of a product is clearly delineated on the Product Order Form. The calculation ratio is 1 PV equals Baht 32.

Primary Bonus: The sum total of all bonuses paid to a Wellness Advocate except the Fast Start Bonus and the Founders Bonus. The Primary Bonus consists of Uni-level, Power of Three, Infinity Performance Pool and Diamond Pool Bonuses. The Primary Bonus is paid monthly.

Qualified Leg: A Qualified Leg is an Enrollee who attains a designated Rank within a Frontline Organization of his Enroller. For purposes of an Enroller’s Rank qualification, each Qualified Leg must be within a separate Frontline Organization of the Enroller.

Loyalty Rewards Programs: A program that allows Wellness Advocate to automatically place monthly order in advance. 

Qualified LRP Orders: A Qualified LRP Order is a single LRP order over 100 PV in the qualifying month for a sponsored Wellness Advocate or Wholesale Customer. All Qualified LRP Orders must be paid for by credit card or check in the name of the Wellness Advocate or Wholesale Customer listed on the account, or with cash, and must be shipped to the primary address listed on the account. A Qualified LRP Order that is returned will result in recoupment of the unearned but previously paid bonus earned.

Team: A term used in the Power of Three Bonus. A Team is made up of a Placement Sponsor, and those Wellness Advocates, retail customers and Wholesale Customers who are organizationally on the first level of the Placement Sponsor’s Organization.

Team Volume (TV): The combined Personal Volume of the members of a Team. A term used in the Power of Three Bonus.

B. Bonuses. Compensation to Wellness Advocates is geared toward rewarding the sustained efforts of everyone from the beginning Wellness Advocate to the seasoned professional Wellness Advocate. doTERRA’s bonuses include the Retail Profit Bonus, Fast Start Bonus, Power of Three Bonus, Uni-level Bonus, Infinity Performance Pools, and Diamond Pools, and Founder’s Club Bonus.

1. Retail Markups. Around 33 % of wholesale price.

Wellness Advocates buy doTERRA products from the Company at wholesale prices for resale to customers, for use as sales aids, or for personal consumption. The Company suggests retail prices which Wellness Advocate may receive retail markups around 33 percent of wholesale prices. As a result, the Company neither provides an estimate of average income from retail sales nor includes retail income in its average bonus information.

Example: A is a Consultant Wellness Advocate and buys Aroma Touch Essential Oil Blend from doTERRA at wholesale price, Baht 1,165. A sells that Aroma Touch Essential Oil Blend to B at suggested retail price, Baht 1,555. A will receive retail markups for Baht 390 or 33 % of wholesale price.  

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3. Power of Three Bonus – Baht 1,600 - 48,000 or 12.8 % of wholesale price.

Overview. The Power of Three Bonus is a monthly bonus paid to Sponsors within 30 days from the end of the qualifying month, which can be Baht 1,600, Baht 8,000, or Baht 48,000. Any Sponsor with a Qualified LRP Order may participate in the bonus.

The Baht 1,600 Power of Three Bonus. In order to qualify for the Baht 1,600 bonus, a Wellness Advocate must make a Qualified LRP Order. The Wellness Advocate must also have three personally sponsored Wellness Advocates or Wholesale Customers with Qualified LRP Orders, and a minimum Team Volume (TV) of 600.

The Baht 8,000 Power of Three Bonus. In order to qualify for the Baht 8,000 bonus, a Wellness Advocate must first qualify for the Baht 1,600 Bonus. The three personally sponsored Wellness Advocates or Wholesale Customers who assisted him to qualify for the Baht 1,600 Bonus must also qualify for the Baht 1,600 Bonus. See, Figure 2. 

The Baht 48,000 Power of Three Bonus. In order to qualify for the Baht 48,000 bonus, a Wellness Advocate must first qualify for the Baht 8,000 Bonus. The three personally sponsored Wellness Advocates or Wholesale Customers who assisted him to qualify for the Baht 8,000 Bonus must also qualify for the Baht 8,000 Bonus. See, Figure 2.

Additional Power of Three Structures. Wellness Advocates can have multiple Power of Three structures. When a Wellness Advocate completes a Baht 48,000 Power of Three structure, the Wellness Advocate can qualify to be paid on an additional structure. The personally sponsored Wellness Advocates and Wholesale Customers and volume from sales counted in the first bonus structure cannot be used to qualify a Sponsor for additional bonus structures.

Example: A is a Platinum Wellness Advocate joined and ordered LRP for 300 PV a month and has B, C, and D, who are Diamond Wellness Advocates, as his frontline downlines as shown in the below diagram. Each of them joined and ordered LRP for 300 PV a month. Therefore, A is qualified for Power of Three Bonus

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Calculation: As A is qualified for Power of Three Bonus and has total TV for 300 PV + 300 PV + 300 PV + 300 PV = 1,200 PV which is more than 600 PV, A will promptly receive Baht 1,600 Power of Three Bonus.

If each of B, C, and D has three frontline downlines who joined and ordered LRP for 300 PV a month, B, C, and D will receive Baht 1,600 Power of Three Bonus and A will promptly receive Baht 8,000 Power of Three Bonus.

And if all nine Wellness Advocates in the second level of the diagram are qualified for Baht 1,600 Power of Three Bonus, B, C, and D will receive Baht 8,000 Power of Three Bonus and A will promptly receive Baht 48,000 Power of Three Bonus.

Therefore, A receive Baht 48,000 Power of Three Bonus from the total OV from 40 Wellness Advocate, i.e. B, C, D, nine Wellness Advocates in the second level, and 27 Wellness Advocates in the third level, total 39 Wellness Advocates. A receives Power of Three Bonus for 12.8 % of the total wholesale price from members in Organization.

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