Version: 1.0
Effective March 3, 1998
Updated: June 18, 1998
It is simple to make money with Yorkbest. Just do these simple
tasks:
1. Buy/sell at least 250PV (about US$32.50) of Yorkbest products
every weeks. 1PV = HK$1.00.
2. Sponsor 2 or more Active Distributors as your downline.
3. Train your downlines to do the same (tasks 1,2,3).
To work effectively, you need a plan:
1. Write down a list of at least 100 names, and sort them according
to potential for income.
2. Set goals for yourself. A typical goal is to develop one Active
Distributor per month, and train your downlines to do the same.
To achieve this goal, you need to work daily to: See the People,
Share the Products, Show the Plan.
You don't have to work alone. You have many successful uplines who are willing to help you succeed. Just remember the ABC of Network Marketing:
A = Advisor (Your uplines)
B = Bridge (You)
C = Customer (Your prospect)
When you team up with your uplines, you can duplicate their success.
The Yorkbest 98 Compensation Plan has been designed to reward retail sales and excellence in training and management. Your income potential is not limited to what you alone can do in a 24-hour day. Your training and management of others will lay the foundation for realizing your personal and financial objectives.
In the following paragraphs, special terms are defined at the end of this page.
Sign-up is free. Simply fill in the Sign-up Form and Agreement to qualify for purchase at wholesale prices. There is no annual renewal fee. Non-distributors must buy products at retail prices.
Each new Distributor is assigned a Sales Center in the Sales Organization. Each Sales Center can only have two branches called Legs (Left and Right). All new recruits must be placed in one of the open positions in the Left or Right Leg.
Each Distributor can start with one or three Sales Centers. Buy 750PV (Point Value) at wholesale prices over any four-week period to activate one Sales Center. Buy 2,250PV at the time of sign up to activate three Sales Centers. Once the choice is made to start with one Sales Center, it will not be possible to start three Sales Centers later. So it is important to understand the advantages of having three Sales Centers before sign up.
001
/ \
002 003
Since Sales Center 002 is placed on the left of Sales Center 001, and Sales Center 003 is placed on the right of Sales Center 001, the advantages of having three Sales Centers are:
1. You can double your Bonus on the same sales volume.
2. You can earn three times the Bonus with two times the effort.
3. You can earn Bonus without any downline.
You have the option of qualifying only Sales Center 001, until the other two Sales Centers have generated enough income to justify the additional purchases.
Commissions and Bonuses are paid weekly, based on purchases from 9:30AM on Tuesday to 9:30PM the following Monday. Amounts over HK$100 are paid out. Otherwise the small amounts are carried forward to the next period. Payments will be made every Monday, one week from the week when sales takes place.
There are five ways to earn income with the Yorkbest 98 Compensation Plan:
1. Retail profit: Distributors earn 25% or more by buying at wholesale and selling at the suggested retail prices. The exact profit depends on the actual selling price.
2. Group Bonus: Distributors receive 5% Group Bonus on the amount of sales in the weak Leg plus the same amount of sales in the strong Leg. If the total sales in the Left and Right Legs is 7,000PV or more, the Group Bonus rate is 5%. Otherwise the rate is half, i.e. 2.5%. Excess volume in the strong Leg is carried forward to the next week, until the maximum of 38,000PV (Max-out) is exceeded.
Before you can qualify for any Bonus, you must Activate one or three Sales Centers and accumulate at least 2,250GPV (Group Point Value).
To qualify for Bonus in any particular week,
(a) For one Sales Center, the Distributor must become Active by purchasing at least 250PV during the week, or 1,000PV to qualify for the next four weeks, or 6,500PV to qualify for the next 26 weeks (6 months), or 13,000PV to qualify for the next 52 weeks (1 year).
(b) For three Sales Centers, the Distributor must become Active by purchasing at least 500PV during the week, or 2,000PV to qualify for the next four weeks, or 13,000PV to qualify for the next 26 weeks (6 months). If the purchase is between 250PV and 500PV per week, only Center number 001 will generate income. Centers 002 and 003 must be qualified together by placing an order of at least 250PV and allocating 125PV to each Sales Center.
When all existing Sales Centers have reached Max-out (38,000PV on each side), the Distributor will be given a Re-entry Certificate and has a new opportunity to invest in one or three more Sales Centers, placed below his/her downlines. The purchase requirement for the fourth Sales Center is 200PV per week (or 800PV for a four-week period), and for the fifth and sixth Sales Centers is also another 200PV per week. The total requirement for the fourth to sixth Sales Centers is therefore 1,600PV in a four-week period. When the fourth, fifth, and sixth Sales Centers have all reached Max-out, the seventh to nineth Sales Centers can be started with no purchase requirement. There is no limit to the number of Sales Centers you can invest in.
3. Family Link Bonus: Your Family Link Bonus is the sum total of the
exact amounts of Group Bonus earned by all your Direct (personally sponsored)
Downlines. To qualify for Family Link Bonus, a Distributor must
have six or more Active Direct Downlines (personally-sponsored distributors).
Family Link Bonus Qualification Waiver: A
special single order of at least 10,000PV within the first four weeks
after sign up will qualify the Distributor for Family Link Bonus
for life, up to and including all Direct Downlines' third Sales Center.
To receive Family Link Bonus from the Direct Downlines' fourth and subsequent Sales Centers, a Sponsor must be qualified to receive Leadership Bonus (see below) and have been Active for at least eight months continuously.
4. Leadership Bonus: After a Sales Center has reached Max-out three times, it earns one Bonus Point in the Leadership Bonus pool which is 2% of the sales of the entire company during the week. Each time one of the Sales Centers reaches Max-out, the Distributor once again earns a Bonus Point. If three Sales Centers reach Max-out at the same time, the Distributor earns three Bonus Points. The Bonus Pool is shared among qualified leaders according to the number of Bonus Points.
5. Loyalty and Commitment Bonus is paid to all Distributors who remain qualified to receive Group Bonus every week for at least two years. The rate is 2% of the accumulated Group Bonus for the first two years, 3% for the third year, etc., up to 10% for the tenth year and beyond. Half of the Loyalty and Commitment Bonus may be claimed at or after two years. The other half may be claimed at or after five years.
Active Distributor
After you have activated your Sales Center and buy at least 250PV during the week, or at least 1,000 PV every four weeks, or at least 6,500 PV every six months, or at least 13,000 PV every year, you qualify as an Active Distributor.
Currently, 1 PV = HK$1.00 = US$0.13 for all products.
Supervisor
A Supervisor is a Distributor who has sponsored two Active Direct Downlines.
Manager
A Manager is a Supervisor who has sponsored six Active Direct Downlines.
Executive
An Executive is a Manager who has one Sales Center that has reached Max-out.
Gold Executive
A Gold Executive is an Executive who has three Sales Centers that have reached Max-out.
Jade Executive
A Jade Executive is a Gold Executive who has five Sales Centers that have reached Max-out.
Diamond Executive
A Diamond Executive is a Jade Executive who has eight Sales Centers that have reached Max-out.
This is the top rank at Yorkbest.
Active Distributor: A Distributor of any rank who has earned
at least 250 Personal PV during the week, or at least 1,000 Personal PV in any consecutive four-week period, or at least 6,500 Personal PV in any consecutive 26-week period, or at least 13,000 Personal PV in any consecutive 52-week period.
Direct Downline: A Distributor which you sponsor directly into Yorkbest.
Downline: A Distributor's entire organization.
Frontline: A Sales Center located on the first level of a Distributor's downline.
Group Point Value (GPV): The combined Point Value (PV)
of a Distributor's purchases and those of his/her Direct Downlines.
Leg: That part of a Distributor's organization consisting
of a Sales Center and its downline.
Level: A Distributor's Level refers to his or her depth
in a downline without regard to rank or qualification.
Personal Point Value (PPV): The combined Point Value (PV)
of a Distributor's Retail Sales.
Placement: A Sales Center under which a given Distributor's
Sales Center is positioned in the organization.
Point Value (PV): The value, assigned to all Yorkbest products,
that is used towards Rank Advancement and Bonus Qualification.
PV is independent of currency and, for a given product, is usually
the same in every country.
Sponsor: A Distributor who personally introduces another
individual into Yorkbest and enrolls him/her as a Distributor.
Upline: Sales Centers which are related to a given Sales
Center but placed earlier in the organization.
1. The YORKBEST 98 COMPENSATION PLAN is based on units called Sales Centers. Each Sales Center may only have two frontlines, that is, a left and a right Leg. Each Distributor may sponsor more than two other Distributors, but the third Distributor (and any subsequent ones) recruited must be placed in the second or lower level and becomes the downline of the Sales Center on either the left or right Leg. The Placement location is decided by the Sponsor.
2. Each new Distributor has a Sponsor and a Placement. The Sponsor is the Distributor who introduces Yorkbest to the new Distributor. The Placement is the Sales Center under which the new Dsitributor is placed by the Sponsor. The Distributor you have directly sponsored is called your Direct Downline.
3. Sign-up is free. There is no annual renewal fee. All it takes to become a Distributor is fill out the Sign-up Form and Agreement.
4. Non-Distributors must pay Retail Prices. After sign-up, a new Distributor can start buying products at wholesale prices.
5. Each Distributor may activate one or three Sales Centers. Before all existing Sales Centers have reached Max-out, no more Sales Centers may be activated. After Max-out, the sales volume of any new Sales Centers will not be counted towards the sales volume of the old Sales Centers.
6. Max-out refers to the case when both the left and right Legs have achieved sales volumes greater than or equal to 38,000PV (a total of 76,000PV). After Max-out, any sales volume exceeding 38,000PV will not be used in calculating Group Bonus. (PV = Point Value. Each PV is equal to HK$1.00.)
7. To receive any Bonus, a Sales Center must be activated:
(a) To activate one Sales Center: accumulate 750PV within any four-week period.
(b) To activate three Sales Centers: buy at least 2,250PV upon sign-up.
Amounts used for activating Sales Centers will not count towards Bonus qualifications.
8. The minimum qualifications to receive Group Bonus for each Distributor are:
(a) Become an Active Distributor (250PV per week)
(b) For details, refer to the Table of Bonus Qualifications and Calculations.
9. If a new Sales Center is not activated within 3 months of sign-up, and the purchase during this period is less than 500PV, Yorkbest reserves the right to relocate the Sales Center's placement. The Distributor will have to fill out another form when he/she decides to activate the Sales Center. A new placement location will be chosen by the Sponsor.
10. If any Distributor who has an activated Sales Center buys less than 1,000PV in a year, he/she is considered an inactive Distributor. Yorkbest reserves the right to relocate his/her placement position without prior notice. The Distributor will have to fill out another form when he/she decides to activate the Sales Center again. A new placement location will be chosen by the Sponsor.
11. A Business Week starts from 9:30AM each Tuesday and ends at 9:30PM the following Monday.
12. Yorkbest will pay out Bonuses each Monday, a week after sales takes place.
13. Amounts less than HK$100 will not be paid out, but will be carried forward to the following week until the amount exceeds HK$100.
14. When the first three Sales Centers have all reached Max-out, one or three additional Sales Centers may be activated at any time in one of the open positions in the downline. Similarly, when the fourth, fifth, and sixth Sales Centers have all reached Max-out, the seventh, eighth, and ninth Sales Centers may be activated. There is no purchasing requirement starting from the seventh Sales Center.
15. When a Distributor buys 1,000PV or more, the entire sales volume will be counted in the week of the purchase. However, the Distributor will be considered an Active Distributor for the next four weeks.
16. With three Sales Centers or more, a Distributor must specify on the Order Form which purchase belongs to which Sales Center. Only one Sales Center number is allowed on each Order Form. Yorkbest will not be responsible for dividing an order among several Sales Centers. (Note: If no Sales Center number is specified, then the entire order will be counted towards Center number 001.)
17. If a Distributor cannot remain Active within the first two years, no Loyalty and Commitment Bonus will be given. The starting date will be reset to the date when the Distributor begins to buy product again.
18. After remaining Active for two years, if a Distributor fails to remain Active (purchase 1,000PV every four weeks), the starting date will be reset to the beginning of the third year. If there is remaining unpaid Loyalty and Commitment Bonus, it will not be paid out.
19. Transfer of Distributorship can only be done by Executives or above. A form must be filled out and a service charge of HK$500 must be paid. Yorkbest reserves the right to approve or reject the application for transfer of distributorship. The recipient must be 18 years or older, must not be an employee of another network marketing company, and must not be a company or organization. The recipient must be an individual person. Priority for the transfer must be given to the Sponsor.
20. A Distributor may specify an heir for the distributorship, but the rank must be Executive or above. A form must be filled out and a service charge of HK$500 must be paid. Once the Distributor is deceased, the heir may take over his/her organization. The heir must be 18 years or older, must not be a company or organization. The heir must be an individual person, and must develop the business according to Yorkbest regulations and learn the methods of network marketing.
This Web page and all linked pages are designed and developed by Dr. Gilbert Ng. Email: gng@hk.super.net
Copyright © 1998. All rights reserved. No part of this document
may be reproduced by any means or in any form without permission
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