COMPENSATION PLAN FREQUENTLY ASKED QUESTIONS QUALIFICATION AND ACTIVATION FOR EXISTING QNET IRS Q. As an existing QNET World Plan IR, what do I need to do to move over to QNET Philippines’s enhanced Compensation Plan? A. Once we launch the QNET local plan, you will be notified through your Virtual Office (VO) that you have the option to migrate to QNET Philippines Plan. Q. Who is allowed to migrate over to the enhanced Plan? A. Only existing renewed QNET Philippines. IRs will have the option to migrate over. Nonrenewed IRs must first renew, and then they have the option to migrate to QNET Philippines. Q. Will my Business Volume (BV) and Group Business Volume (GBV) be moved to the enhanced Plan? A. Your BV and Group Business Volume in the existing Compensation Plan will remain the same once you migrated over to QNET Philippines. Q. Can a non-renewed IR refer new IRs? A. Yes, but a non-renewed IR will not be entitled to earn the Business Volume (BV) and commission from the purchases made by his/her Direct Referrals. Q. Will all my existing Tracking Centres (TCs) be carried forward to the QNET Philippines Plan? A. Yes, all your existing TCs will be carried forward. Q. Will my existing Direct Referrals be moved to the enhanced Plan? A. Yes, they will remain as your Direct Referrals. Q. Will my existing Direct Referrals be counted in my Rank Advancement? A. Yes. Please refer to your Rank Advancement schedule in QNET’s enhanced Compensation Plan. Q. Can I still view my transactions from my existing Compensation Plan? A. Yes, you can view your recent 12-month transaction history. Q. Can I change my Referrer or my Placement when I have migrated over to the enhanced Plan? A. No, you must maintain your existing Referrer and your Placement.
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COMPENSATION PLAN FREQUENTLY ASKED QUESTIONS Q. Can I re-allocate my Business Volume (BV) from one (1) Tracking Centre (TC) to another TC extension when I have migrated over to the enhanced Plan? A. No. Once you have allocated your BV to your TCs, they can no longer be re-allocated. Q. What will happen to my Q Account (QA) balance, products and eVoucher Points (EP) when I migrate over to the enhanced Plan? Will they be forfeited? A. We advise you to clear your commissions and redeem your Redemption Points, undelivered products, unused eCards and unremitted Q Account balances from QNET LTD. as soon as possible. QNET LTD will continue to be liable to you for any and all your rights incurred prior to 23 March 2013. You should handle all pending issues directly with QNET LTD through its hotline or by submitting a Customer Request Form in your QNET LTD Virtual Office. QNET Philippines shall not be liable for any of these claims. Q. What will my genealogy report look like when I migrate over to the QNET Philippines Plan? A. Your genealogy report will remain the same as in the existing QNET World Compensation Plan. Q. Do I need to apply for a new Independent Representative Number (IR ID Number) upon being migrated over to the enhanced Plan? A. No, your IR ID Number will remain the same.
ENROLMENT, QUALIFICATION AND ACTIVATION FOR NEW QNET IRS Q. How will I register to become an Independent Representative in QNET Philippines’ enhanced Compensation Plan? A. Register online through www.qnet.net.ph or and simply pay for your one-year IRship Package. Q. How many Tracking Centres (TCs) do I get upon enrolment? A. You will be given three (3) TCs immediately upon enrolment. Q. How can I qualify my Tracking Centre (TC) in the enhanced Plan? A. You need to generate the required qualifying Business Volume (BV) by selling a product to a Retail Customer or making a Personal Purchase.
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COMPENSATION PLAN FREQUENTLY ASKED QUESTIONS Tracking Centre
Required Qualifying BV
001
500 BV
002
500 BV
003
500 BV
Note: IR can add and qualify TC 004 and subsequent TCs with 1000 BV.
Q. How can I activate my Tracking Centre (TCs) in the QNET Philippines Plan? A. You need to be a Qualified IR and directly refer at least one (1) Qualified Direct Referral per side of any of your TCs. Q. If I generate 240 BV from my repeat sales, can I use the 240 BV as advance maintenance for one (1) year (based on the required 60 BV/quarter)? And can I accumulate even more Business Volume (BV) and use it for advance maintenance for more than one (1) year? A. You are allowed to advance-maintain for the maximum of one (1) year. Therefore, yes, yo u may use 240 BV to advance-maintain for up to one (1) year or 52 weeks (including the current week). But you cannot accumulate more Business Volume (BV) and use them to adva nce-maintain longer than this one (1) year period. Q. Will the four (4)-week pre-qualification bonus to IRs be implemented? A: No, there will be no pre-qualification bonus. All IRs will have to achieve the minimum quarterly qualification of 60 BV. Q. Can I use my Business Volume (BV) that is generated from repeat sales to qualify my Tracking Centres (TCs)? A: Yes. Q. For non-renewed IRs, do they have to pay the renewal fee amount of the existing Co mpensation Plan or the renewal fee in the enhanced Plan? A. Non-renewed QNET IRs who would like to be promoted over to QNET Philippines’ Com pensation Plan must pay the renewal fee under the enhanced Plan. Renewal is only PHP1, 200. 3
COMPENSATION PLAN FREQUENTLY ASKED QUESTIONS Q. Is there any time limit for the non-renewed IRs to renew their IRship? A. No. There will be no time limit. Non-renewed IRs can renew their IRship anytime, provided that they pay all the accumulated and accurate outstanding renewal fees. Q. Can I Self Activate my IRship with a purchase of one (1) product with 1,500 BV? A. Yes, you can Self Activate, but only during the launch promo period. Q. Can one (1) product with 1,000 BV be distributed to an IR's two (2) Tracking Centres (TCs) for qualification? A. Yes. Q. Can I immediately start purchasing from the QNET Philippines. Repeat eStore upon enrolment? A. Yes. You just need to meet the quarterly maintenance of 60 BV to earn RSP. You do not need to be qualified and activated to purchase from QNET Philippines. Repeat eStore. Q. What is the Enrolment Fee for new IRs under the enhanced Plan? A. Registration and Renewal fee is: PHP 1,200 Q. For Activation, can I combine Personal Sponsorship and Business Volume (BV) from Retail Purchase? A. Yes. Q. Is Self Activation a permanent way of Activation, or is it a promo? A. Self Activation is for a special launch promo period until further notice. Q. Can I qualify my Tracking Centre (TC) by using my Business Volume (BV) earned from Personal Purchases or Retail Sales? A. Yes. Q. Can I qualify someone using my Business Volume (BV)? A. No. Q. Can I allocate more than 500 BV to my Primary Tracking Centre (TC-001)? A. Yes. You can allocate more than 500 BV to TC-001 but you are not allowed to reallocate it to other TC extensions later on.
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COMPENSATION PLAN FREQUENTLY ASKED QUESTIONS Q. Am I allowed to freely allocate Business Volume (BV) to Tracking Centre (TC) extensions, other than the Primary TC-001? A. Yes. Q. What does ‘Business Volume (BV) from new Direct Referrals’ mean? A. It means that you must have new Direct Referrals selling or purchasing products with the required BVs on a quarterly basis. Q. Can I do transfer of ownerships, such as transfer of products and Business Volume (BV) to another IR? A. Yes, but please refer to the existing country SOPs for details.
EARLY PAYOUT Q. How does the Early Payout work? A. The Early Payout only applies to new IR’s Primary TC (TC-001) in Cycle 1, Step 1 who achieve the required Business Volume (BV) in both left and right legs in any of their Tracking Centres (TCs) and is paid according to the Commission Schedule. This illustrates Payout to IRs under Bronze Star Rank: Lower-Volume Leg
Early Pay Out
Time Frame
1,000 BV
PHP 2,150
1,000 BV
PHP 2,150
1,000 BV
PHP 4,300
IR must achieve the required lower-volume leg within the first 4 weeks from IR's Registration Date IR must achieve the required lower-volume leg within the first6weeks from IR's Registration Date N/A
Q. Will Early Payout be allowed for all commission steps? A. No. Early Payout only applies to Step 1 (Cycle 1 of TC-001).
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COMPENSATION PLAN FREQUENTLY ASKED QUESTIONS Q. Will Early Payout be applicable to all my Tracking Centre (TC) extensions? A. No, Early Payout is only applicable to your TC-001. Q. Is there any time limit to reach the desired Lower-Volume Leg payable with the Early Payout? A. Yes. Please refer to the table below Lower-Volume Leg
Early Pay Out
Time Frame
1,000 BV
PHP 2,150
1,000 BV
PHP 2,150
1,000 BV
PHP 4,300
IR must achieve the required lower-volume leg within the first 4 weeks from IR's Registration Date IR must achieve the required lower-volume leg within the first6weeks from IR's Registration Date N/A
Q. Is there any possibility for me to be paid with the Early Payout at Silver Star or Gold Star Rank? A. Yes, the Early Payout is paid according to the highest rank that you have achieved.
STEP COMMISSION Q. How will I start earning the Step Commission? A. You must be Qualified and Activated in order for you to start earning Step Commission. Q. How many commission steps are there in one cycle? A. There are six (6) commission steps in one (1) cycle. Q. How much is the payout per commission step? A. The payout per commission step varies with an IR’s rank. The payout increases as the rank advances. From Step 1 to Step 5, the payout will be in a monetary value. At Step 6, the payout will be in eVouchers, which are equivalent to 10 eVoucher Points (EP) and used to redeem for exclusive products in the QNET Redeem eStore. 6
COMPENSATION PLAN FREQUENTLY ASKED QUESTIONS Q. Can eVoucher Points (EP) be used as a mode of payment for purchases in any of the eStores? A. No, EP are only used for special product redemption in the QNET Redeem eStore. Q. Will my Upline earn commission from my product redemption with eVoucher Points (EP)? A. No. Q. Is my Business Volume (BV) from repeat sales counted to the Group Repeat Business Volume (GRBV) for the calculation of Step Commission? A. Yes Q. How is Step Commission calculated? A. Step Commission is calculated based on the Lower-Volume Leg of 3,000 BV and payout is according to the rank that you have achieved.
REPEAT SALES POINTS (RSP) Q. What are Repeat Sales Points (RSP)? A. Repeat Sales Points are points earned from the sales of products from the QNET Repeat eStore, which can be converted into either cash or Business Volume (BV). Q. How can I qualify to earn Repeat Sales Points (RSP)? A. You need to maintain at least 60 BV from the sales of products from the QNET Repeat eStore every quarter (13 weeks). Q. Can I choose to earn commission from Repeat Sales Points (RSP) only, and not earn Step Commission? A. Yes, as long as you meet the quarterly maintenance of 60 BV. Q. Can a non-renewed IR purchase products from the QNET Repeat eStore? A. No, non-renewed IRs cannot access their VO and eStore for purchasing products. Q. I am a non-renewed IR and my Direct Referral is Active and has purchased products from the QNET Repeat eStore. Will I still earn the Repeat Sales Points (RSP) from his purchase when I renew my IRship? A. No. You have to renew your IRship first and meet the quarterly requirements of 60 BV in order to earn the RSP. 7
COMPENSATION PLAN FREQUENTLY ASKED QUESTIONS Q. If I earn 60 BV from the sales of products from the QNET Repeat eStore twice within one (1) quarter, will I be qualified for two (2) consecutive quarters? A. Yes. Your extra 60 BV will be used to maintain your qualification for the following quarter. Advance maintenance is limited to four (4) quarters only (one (1) year). Q. How can I get paid with Repeat Sales Points (RSP)? A. Your RSP will be credited to your RSP Bank in two (2) weeks after the date of purchase. Q. How can I convert my Repeat Sales Points (RSP) to cash or Business Volume (BV)? A. You can use the RSP Bank module available in your Virtual Office (VO) to convert your RSP to cash or BV. Q. Do Repeat Sales Points (RSP) have an expiration date? A. Yes, your RSP will expire two (2) quarters from the date of issuance. Upon expiry, the RSP will be automatically converted to cash. Q. How much is the cash and Business Volume (BV) equivalent of my earned Repeat Sales Points (RSP)? A. The table below shows the cash and BV equivalent of your RSP.
*A balance RSP will be calculated into PHP using a proportion rate based on 60 RSP. RSP will be automatically converted into cash after two (2) quarters and directly credited to the Q Account (QA). Q. Will I earn Repeat Sales Points (RSP) from the purchases made by all of my Downlines? A. No. You can only earn RSP from your three (3) level Downlines. Q. Can I qualify my Tracking Centre (TC) by using my Business Volume (BV) earned from Personal Purchases or Retail Sales of products from the QNET Repeat eStore? A. Yes.
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COMPENSATION PLAN FREQUENTLY ASKED QUESTIONS Q. Where can I view my Repeat Sales Points (RSP) and Business Volume (BV) that I have earned? A. They are automatically credited to your BV Bank and RSP Bank available in your Virtual Office (VO). Q. Does my Group Repeat Business Volume (GRBV) include my Personal Business Volume (BV) and the BV converted from Repeat Sales Points (RSP)? A. No. Q. What is ‘Spill-over’ Business Volume (BV)? A. Spill-over BV is from Downlines/IRs who are not in your Line of Referralship and placed by your Upline. Q. Can I use my accumulated Business Volume (BV) from repeat purchase to maintain the requirement to earn Repeat Sales Points (RSP) for a specific quarter? A. Yes. Q: Are the Repeat Sales Points (RSP) transferable from one IR to another, such as a Downline or another IR? A: No. Q: Can I convert Repeat Sales Points (RSP) into Business Volume (BV) and cash under one (1) transaction? A: No. RSP conversion into cash and BV must be transacted separately. Q: Can I convert my Repeat Sales Points (RSP) that are less than 60 to cash? A: Yes. On a pro-rated basis after six (6) months. Q: Will Repeat Sales Points (RSP) generated from my Personal Purchases be credited to me? A: No. RSP will only be credited to the active Referrers up to three (3) levels. Q: If Active Referrers up to three (3) levels earn Repeat Sales Points (RSP) from their D irect Downline’s repeat purchases, will those three (3) Referrers receive the same numbe r of RSP? A: Yes, all three (3) Referrers will get the same number of RSP. Q: If I have 20 Direct Referrals and each buys a product from the QNET Repeat eStore, will I get all the Repeat Sales Points (RSP)? 9
COMPENSATION PLAN FREQUENTLY ASKED QUESTIONS A: Yes. You will get all the RSP from your 20 Direct Referrals, provided that you have met the quarterly maintenance of 60 BV. You will not be affected if one of your Direct Referrals did not maintain for that particular quarter Q: Can I move my Direct Referrals under the sponsorship of another Direct Referral to benefit more from Repeat Sales Points (RSP)? A: No. Direct Referrals cannot be transferred. Q. Can I earn Business Volume (BV) from repeat sales to my directly referred Retail Cu stomers? A. Yes, Q. Can I earn Repeat Sales Points (RSP) achieved from the repeat sales to my directly r eferred Retail Customers? A. Yes, you, being the first level active referrer of the retail customer, will earn both RSP and BV.
RANK ADVANCEMENT Q. Do I have to achieve and maintain my Rank Maintenance requirements every quarter to keep being paid at my current rank? A. Yes. Q. If I fail to meet the quarterly rank maintenance requirements of my current Star Rank, will I be downgraded to a lower or default Star Rank? A. Yes, however you will keep your title and only be ‘paid as’ the lower rank. Q. Once I reach Silver Star Rank, will I be demoted to Bronze Star Rank once I failed to meet the rank maintenance requirements? A. No, you will not go back once you have reached Silver Star Rank. At this point, Silver Star becomes your base rank. Q. If I am promoted to a higher rank, when will my new rank be effective and reflected in my Virtual Office (VO)? A. Your new rank will be effective and reflected in your VO in the following Commission Week for a period of one (1) quarter (13 weeks). Q. If I am currently at Silver Star Rank and I fulfil the requirements for Platinum Star Rank in one (1) quarter, can I skip over Gold Star Rank and be promoted to Platinum Star Rank immediately? 10
COMPENSATION PLAN FREQUENTLY ASKED QUESTIONS A. Yes. Q. Can the Business Volume (BV) converted from Repeat Sale Points (RSP) contribute to my Rank Advancement? A. Yes. Q. Can I combine Business Volume (BV) from my new Direct Referrals with BV from my personal repeat purchase? A. No, they are separate requirements for the Rank Advancement and Rank Maintenance. Q. Can I upgrade my rank more than once in a week? A. You will be upgraded to the highest rank you achieved for that week. Q. Does the Indirect Referrals requirement for Rank Advancement and Maintenance include Downline/s from Spill-over? A. No. We only include those Indirect Referrals who are in your line of referralship, Downlines from Spill-over are not included. Q. Can I hold my current rank and save my qualification for later? A. No, your Rank Advancement and your commission are calculated automatically. Q. Do my Rank Advancement counters reset to zero (0) when I upgrade rank? A. No, your Rank Advancement is always based on your last quarter (13 weeks) regardless of any Rank Advancement during that period. Q. Can I carry forward any excess Business Volume (BV) from my new Direct Referrals for Rank Advancement? A. Yes, you can carry forward excess BV for Rank Advancement. Q. Is there any time limit to move up from Bronze Star Rank to Silver Star Rank? A. No, but a time limit of one (1) quarter applies to other ranks, from Gold Star to Diamond Star. Q. To advance from Platinum Star Rank to the top Diamond Star Rank, how many Indirect Referrals with new Rank Advancement must I have? A. You must have 90 Indirect Referrals with new Rank Advancement from Silver Star Rank per quarter.
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COMPENSATION PLAN FREQUENTLY ASKED QUESTIONS Q: Can I carry forward my excess Repeat Sales Points (RSP) for my Rank Advancement? A: Yes, you can carry excess RSP for 2 consecutive Quarters Q. Will there be a reminder module in my Virtual Office (VO) for my remaining requirements for Rank Advancement? A. Yes. Reminder is now available in your VO. Q. Can I use my earned eVoucher Points (EP) for my Rank Advancement? A. No. Q. Is there any way to reduce the requirements for Rank Advancement and maintenance as Gold Star Rank? A. No. Q. Under which rank will the existing QNET WP Enrolled IRs be, upon being migrated over to QNET Philippines Plan? A. If an IR is Enrolled but not Qualified or Activated, they will be promoted over to the Bronze Star Rank with the maximum weekly payout of PHP 292,400 and 60 eVoucher Points (EP) per Tracking Centre (TC) (PHP 877,200 and 180 EP for three (3) TCs/week) Q. Under which rank will the existing QNET WP Qualified IRs be, upon being migrated over to QNET Philippines Plan? A. All Qualified IRs, regardless of their rank in the existing Compensation Plan, will be prom oted over to the Gold Star Rank with the maximum weekly payout of PHP 537,500 and 100 e Voucher Points (EP) per Tracking Centre (TC) (PHP 1,612,500 and 300 EP for three (3) TCs/ week). Q. If I am non-renewed, but Qualified, and if I only renew my IRship after the launch of the enhanced Plan, will I be promoted over to the Gold Star Rank? A. You need to renew your IRship first. Q. Is there visibility regarding the Rank Advancement within the group? A. Yes. Q: Am I able to immediately see my Left and Right Volume/Downlines through my VO? A: Yes. There will be real-time updates. It will be the same as the existing view, whereby you can see your BV under the running BV column.
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COMPENSATION PLAN FREQUENTLY ASKED QUESTIONS COMPRESSION Q. If I am inactive and failed to meet the 60 PBV quarterly maintenance, who will get the Repeat Sales Points (RSP) generated from my Downlines? Will the RSP be forfeited? A. The RSP will not be forfeited, but instead it will be credited to the next Active Direct Referrer, up to three (3) levels. Q. If I purchase a product with 60 BV within the current week, can I still earn the Repeat Sales Points (RSP) from the repeat purchases of my three (3) Direct Downlines from the previous weeks? A. No. those RSP were already credited to the Active Referrers up to three (3) levels in that particular week/s. Q. If I am inactive and failed to meet the quarterly requirements of 60 PBV, will I be still qualified to earn the Step Commission? A. Yes. As long as your Tracking Centres (TCs) are Qualified and Activated
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