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QNET COMPENSATION PLAN

Questions and Answers Enrol as an IR Q1. What is an Independent Representative (IR)? Independent Representative or ‘IR’ is a person who has enrolled in QNET’s Compensation Plan to build a business organisation by selling products and referring others to become an IR. Q2. Can anyone enrol to become an IR? No. A person must be of legal age in his/her country to enrol as an IR. Q3. How can a customer enrol to become a QNET IR? A customer can enrol online to be a QNET IR through www.qnetindia.in. Q4. Is there any fee when enrolling as a QNET IR? Registration fee to become an IR is totally free. Q5. Is there any fee to renew the Representativeship annually? QNET offers the existing IR an Annual IRship package worth INR 1,500.00 on every IR’s Anniversary date to maintain his/her record, services and tools that have been provided since enrolment. The package includes the following:    

Updated online Business Planner & Product Portfolio Continuous Access to your Virtual Office Continuous Access to the QNET eStore Updated Business, marketing and eCommerce tools

Q6. Can a customer enrol as an IR even without any Referrer? No. A customer must have a Referrer who is an existing QNET IR before he/she can enrol online as an IR through the QNET website. In the case that the customer does not know any QNET Referrer, he/she may contact QNET office for an assignment of a referrer. Q7. How many Tracking Centres (TCs) does a new IR get upon enrolment? A new IR gets one (1) Primary TC 001 and two (2) Secondary TCs 002 and 003. Q8. Can a new IR immediately purchase any product from the QNET eStore upon enrolment? Yes. Q9. Upon enrolment, can the new IR avail of the IR discounted price on the first purchase of QNET products?

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QNET COMPENSATION PLAN

Questions and Answers IR can only avail of the IR’s discounted price on subsequent purchases, after his first qualifying purchase. Q10. How can a new IR view and check his/her personal information, genealogy and other relevant information? A new IR has to log in to the Virtual Office, with his/her IR Identification Number (IR ID No.) and password. IR Identification Number and password are created and confirmed during his/her enrolment.

QUALIFICATION OF TRACKING CENTRE Q1. What is a Tracking Centre ‘TC’? Tracking Centre, or ‘TC’, is the account granted to the IR upon enrolment that shows his/her position in the Company’s database. Commissions and/or bonuses are calculated with reference to each Tracking Centre. Q2. What is Business Volume ‘BV’? Business volume, or ‘BV’, is the point value assigned to each QNET product used for qualification of TC and basis for calculation of Step Commission. Q3. How can an IR qualify his/her TC? An IR can qualify his/her TC by achieving and allocating a minimum five hundred (500) BV each to any of his/her first three (3) TCs and a minimum of one thousand (1,000) BV each to TC 004 and subsequent TCs. Tracking Centre

Required Qualifying BV

001

500 BV

002

500 BV

003

500 BV

004 TCs

and

subsequent

1,000 BV

Q4. How can an IR achieve the required BV to qualify his/her TC? An IR can achieve the required qualifying BV by either selling QNET products to a retail customer or purchasing QNET products for personal consumption. 3|Page


QNET COMPENSATION PLAN

Questions and Answers Q5. Can an IR use the BV achieved from repeat sales to qualify his/her TC? Yes, an IR can accumulate a minimum of 500 BV from repeat sales to qualify any of his/her TCs. Q6. Can an IR split 1,000 BV from retail sale or personal purchase of one (1) product and allocate 500 BV each to his two (2) TCs? Yes. Q7. Can an IR transfer BV to another IR to qualify a TC? No. Q8. Can an IR use the BV redeemed with earned RSP to qualify a TC? Yes, provided the minimum qualifying BV requirement per TC is fulfilled. Q9. Can the BV currently placed in the IR’s BV bank qualify the IR’s TC? No. The IR is required to allocate the BV to qualify any of his/her TCs. Q10. Will the BV from retail sale automatically qualify the TC of the referrer? No. The BV from retail sale will be stored to the BV Bank of the referrer. The referrer must allocate the BV from BV Bank to qualify a TC.

ACTIVATION OF TRACKING CENTRE Q1. How can an IR activate his/her IRship? An IR must first qualify his/her TC before Activation. A Qualified IR can activate his/her TC by achieving and allocating a minimum of five hundred (500) BV on each side of any of his TCs. Q2. Can an IR use the BV from retail sale to activate his/her IRship? Yes, provided that the IR has fulfilled the required 500 qualifying BV allocated to each leg of the TC. Q3. Can the IR use the BV from his own purchase of QNET products to activate his/her IRship? Answer: Yes, provided that the IR has fulfilled the required 500 qualifying BV allocated to each leg of the TC. Q4. Can an IR combine BV from retail sale and personal purchase of QNET products to activate his/her IRship?

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QNET COMPENSATION PLAN

Questions and Answers Yes, provided that the IR has fulfilled the required 500 qualifying BV allocated to each leg of the TC. Q5. Can an upline or referrer use the BV of his/her Qualified Direct Referrals to activate a TC? Yes. Q6. Can an IR allocate more than 500 BV to his/her Primary Tracking Centre (TC 001)? Yes. An IR can allocate more than 500 BV to TC 001 or any other TCs but he/she is not allowed to reallocate it to other TC extensions later on. Q7. Will an IRship be activated when two (2) Qualified Direct Referrals are placed in one leg of a TC? No. Q8. Can an IR activate his/her IRship without first qualifying the IRship? Yes, an IR can activate his TC but any BV from downline will not be counted to his/her GBV unless the IR is Qualified on the same week of the Activation. Q9. Can an IR qualify Secondary TC 002 or TC 003 before Primary TC 001? No. First purchase of product with 500 BV is automatically allocated and qualifies the Primary TC 001. Q10. Can IR move his Qualified Direct Referral from one side to another, in order to activate his/her TC? No. Change of placement is not allowed after the allowable grace period.

COMMISSION AND BONUSES Q1. How can an IR earn from QNET Compensation Plan? An IR can earn in 8 Ways 1. 2. 3. 4. 5. 6. 7. 8.

Retail Profit First Purchase Profit Early Payout Step Commission Repeat Sales Points Rank Advancement Bonuses Year Round Rewards Other Incentives

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QNET COMPENSATION PLAN

Questions and Answers Q2. How can IR receive his/her earned commissions/bonuses? QNET pays the commissions/bonuses by crediting the amount to the IR’s Commission Payable Account. Q3. What is Commission Payable Account? Commission Payable Account is an accounting record of the IR’s earned commission/bonuses accessible from IR’s Virtual Office (VO). Q4. What is retail profit? Retail Profit is a type of commission paid to the IR for selling QNET products to a retail customer. It is equivalent to the difference between the Retail Price and IR’s discounted price. Q5. Does an IR need to be Qualified and Activated to earn the retail profit? No. An IR can immediately earn retail profit from retail sale upon successful enrolment. Q6. When is the retail profit paid to the referrer? Retail profit is paid to the referrer on the corresponding commission week by crediting the amount to his/her Commission Payable Account. Q7. What is First Purchase Profit (FPP)? First Purchase Profit is the commission paid to the IR when his/her Qualified Direct referral made the first qualifying purchase of QNET products at retail price. It is equivalent to the difference between the Retail Price and IR’s discounted price. Q8. Does an IR need to be Qualified and Activated to earn the First Purchase Profit (FPP)? No. An IR can immediately earn First Purchase Profit (FPP) upon successfully referring a Qualified Direct Referral. Q9. When is the First Purchase Profit (FPP) paid to the IR? First Purchase Profit (FPP) is paid to the IR on the corresponding commission week by crediting the amount to the IR’s Commission Payable Account. Q10. Can a Referrer earn the First Purchase Profit from the purchases of repeat products by his/her direct referrals with less than 500 BV? Yes Q11. What is Early Payout?

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QNET COMPENSATION PLAN

Questions and Answers Early Payout is a partial payment of the full Cycle 1, Step 1 commission paid in advance to the IR, amounting to INR2,750 upon achieving a lower volume leg of 1,000 GBV under the Primary TC. Q12. How can an IR start earning the Early Payout? IR must be Qualified, Activated and achieve the required GBV in any of the Lower Volume Leg of the Primary TC. Q13. What does Group Business Volume (GBV) mean? Group Business Volume is the total BV achieved from the left and right downline group. Q14. How does the Early Payout work? The Early Payout only applies to a qualified and activated IR’s Primary TC (TC 001) in Cycle 1, Step 1 who achieves the required Group Business Volume (GBV) in any of the lower volume leg within the given time frame and is paid according to the Commission Schedule. This illustrates Payout to IRs under Bronze Star Rank:

Q15. Can the IR earn the Early Payout at Silver Star or Gold Star Rank? Yes, the Early Payout is paid according to the highest rank that the IR has achieved within the given time frame Q16. What is Step Commission? Step Commission is a commission paid to the Qualified and Activated IR for every 3,000 GBV that he/she achieved at the Lower Volume Leg. Q17. How much is the payout per Commission Step?

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QNET COMPENSATION PLAN

Questions and Answers The payout per commission step varies with the IR’s rank and Commission Level. 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) which is used to redeem exclusive products in the QNET Redemption eStore. Please refer to the table below.

Q18. How will an IR start earning the Step Commission? An IR must be Qualified, Activated and achieve the required GBV in any of the Lower Volume Leg to start earning Step Commission. Q19. What are Repeat Sales Points (RSP)? Repeat Sales Points are points earned from repeat sales which are convertible into either cash or BV. Q20. How can an IR earn RSP? IR must purchase repeat products and earn the corresponding RSP assigned to those repeat products that he/she purchased. Q21, How can an IR earn RSP from downlines? An IR must fulfil the quarterly PBV maintenance of 120 PBV from repeat sale to be eligible to earn RSP from downlines of up to four levels by referralship. Q22. Can an IR choose to focus on earning commission from RSP and not earn Step Commission? Yes, as long as the IR is active by meeting the quarterly maintenance of 120 PBV. Q23. If an IR achieves 240 BV from repeat sales within one (1) quarter, will he/she be qualified to earn RSP for two (2) consecutive quarters? Yes. Advance maintenance is limited to four (4) quarters only (one (1) year). 8|Page


QNET COMPENSATION PLAN

Questions and Answers Q24. How can an IR receive his/her earned RSP? The RSP will be credited to the RSP Bank accessible from the IR’s Virtual Office (VO) within two (2) weeks of the transaction date. Q25. How can an IR redeem RSP with either cash or BV? Answer: IR can use the RSP Settlement module available in the Virtual Office (VO) to redeem his/her earned RSP with cash or BV within six (6) months (two (2) quarters) from the issuance date. Q26. Are RSPs still valid if the IR fails to redeem it with cash or BV within 6 months of the issuance date? Yes, RSP will be automatically converted into cash after six (6) months of the issuance date. Q27. What is the cash and BV equivalent of the earned RSP? The table below shows the cash and BV equivalent of your RSP.

RSP

Cash Equivalent, INR

BV Equivalent BV

60

INR

550

20

120

INR

1100

40

300

INR

3300

160

600

INR

8250

420

1,000

INR

16500

900

*A balance RSP will be calculated into cash using a proportion rate based on 60 RSP. RSP will be automatically converted into cash after two (2) quarters and directly credited to the Commission Payable Account.

Q28. Will the IR earn RSP from the repeat sales made by all downlines? No. Only Active IRs can earn RSP from four (4) level downlines by referralship. Q29. Is the BV earned from RSPs counted to the IR’s Group Repeat Business Volume (GRBV) and Group Business Volume (GRBV)? Yes. Q30. What is ‘Spill-over’ Business Volume (BV)?

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QNET COMPENSATION PLAN

Questions and Answers Spill-over BV is the BV from downlines placed by your uplines who are not in your Line of Referralship. Q31. Can the IR accumulate BV from repeat sale to meet the 120 PBV maintenance to earn RSP for a specific quarter? Answer: Yes. Q32. Are the Repeat Sales Points (RSP) transferable from one IR to another? Answer: No. Q33. Can the IR convert less than 60 RSP into cash? Yes. RSP can be converted into cash on a pro-rated basis after six (6) months. Q34. Will the IR earn RSP and BV from his own repeat sales? Yes. Q35. How much RSPs will the active uplines by referralship up to four (4) levels earn from the repeat purchases of downlines? Active uplines will earn the same number of RSP which is equivalent to the sum of RSP of the products purchased by his/her downlines of up to four (4) levels by referralship. Q36. If an IR has 20 Direct Referrals and each buys a repeat product with 40 RSP, will the IR get all the Repeat Sales Points (RSP)? Yes. The IR will get all the 20x40 RSP from his/her 20 Direct Referrals, provided that he/she has met the quarterly maintenance of 120 BV. Q37. Can an IR earn BV from the repeat sales made to his/her directly referred Retail Customers? Yes Q38. Can an IR earn RSP from the repeat sales made to his/her directly referred Retail Customers? Yes Q39. Can the IR earn Repeat Sales Points (RSP) from his own purchase of repeat products? Yes. Q40. Can an IR earn RSP from his personal purchase even if he has not met the quarterly maintenance of 120 PBV?

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QNET COMPENSATION PLAN

Questions and Answers Yes. An IR does not need to meet the quarterly PBV maintenance of 120 to earn RSP form his/her own purchases of repeat products.

RANK ADVANCEMENT AND RANK MAINTENANCE Q1. How can an IR advance rank? An IR must achieve all the rank advancement requirements within a quarter to advance to a higher rank. Q2. Will an IR earn bonuses when he/she advances in Rank? Yes. The Commission level increases as the IR advances in rank. Q3. Is there any given time frame for an IR to advance from his current rank to a higher rank? Yes. The IR must advance to a higher rank (Gold Star, Platinum Star and Diamond Star) within a quarter. Q4. If an IR achieves all the requirements of the higher rank, when will the new pay rank and title rank be reflected? IR’s new pay rank and title rank will be reflected on the corresponding commission week. Q5. If an IR achieves all the requirements of the higher rank, when will the new commission level take effect? The new commission level will take effect on the corresponding commission week when the rank is updated. Q6. If the IR is currently at Silver Star Rank and fulfils the requirements for Platinum Star Rank in one (1) quarter, can he/she skip over Gold Star Rank and be promoted to Platinum Star Rank immediately? Yes. Q7. Can the BV earned from RSP contribute to the IR’s Rank Advancement? Yes. Q8. Do the Rank Advancement counters reset to zero (0) whenever the IR upgrades his/her rank? No, the Rank Advancement is always based on your last 13 weeks regardless of any Rank Advancement during that period. Q9. How does an IR maintain his current rank? 11 | P a g e


QNET COMPENSATION PLAN

Questions and Answers An IR must achieve all the corresponding rank maintenance requirements within a quarter. Q10. Is there any given time frame for an IR to maintain his current rank? There is no given time frame for Bronze Star and Silver Star to maintain their current rank. However, Gold Star, Platinum Star and Diamond Star are given a quarter to achieve the rank maintenance requirements. Q11. Will there be a reminder in the Virtual Office (VO) to notify the IR of the remaining maintenance requirements that he/she needs to achieve before the end of the quarter Yes. The reminder is available in the IR’s VO. Q12. Can the IR upgrade the rank more than once in a week? No. The IR will be upgraded to the highest rank he/she achieved in the corresponding commission week. Q13. Are all the five (5) ranks of QNET Compensation Plan required to be maintained quarterly? Gold Star, Platinum Star and Diamond Star ranks are required to meet the quarterly rank maintenance. Q10. What happens if a Gold Star fails to achieve the quarterly maintenance within a quarter? The IR will keep the Title Rank as Gold Star but ‘Paid as’ the lower rank. Q11. Once the IR reaches Silver Star Rank, will the rank be demoted to Bronze Star if the IR fails to meet the quarterly rank maintenance requirements? No, the IR will not go back to the base rank, Bronze Star, once he/she has reached Silver Star Rank. At this point, Silver Star becomes the base rank. Q12. Can the IR combine BV from new Direct Referrals with BV from personal repeat purchase? No, they are separate requirements for the Rank Advancement and Rank Maintenance. Q13. Is the spill-over volume counted to the Group Business Volume (GRBV)? No. Q14. Can the IR hold his/her current rank and save the qualification for later? 12 | P a g e


QNET COMPENSATION PLAN

Questions and Answers No, the rank maintenance, advancement and your commission are calculated automatically. Q15. Is there visibility regarding the Rank Advancement within the group? Answer: Yes.

COMPRESSION AND RANK DEMOTION Q1. If the IR is inactive and failed to meet the 120 PBV quarterly maintenance, who will get the Repeat Sales Points (RSP) from downlines? Will the RSP be forfeited? The RSP will not be forfeited, but instead it will be credited to the next Active Direct Referrer of up to four (4) levels. Q2. If the IR purchases a product with 120 BV within the current week, can the IR still earn the Repeat Sales Points (RSP) from the repeat purchases of his/her four (4) Direct downlines from the previous weeks? No. Those RSPs were already credited to the Active Referrers up to four (4) levels in the corresponding commission week. Q3. If the IR is inactive and fails to meet the quarterly PBV requirements of 120, will the IR still be qualified to earn the Step Commission? Yes. As long as the Tracking Centres (TCs) are Qualified and Activated. Q4. What happens if the IR fails to meet the quarterly rank maintenance requirements? The IR will retain his Title Rank but will be ‘Paid as’ the lower pay rank. Q5. Will a Silver Star be demoted to Bronze star if he/she fails to upgrade to a higher rank within a quarter? No. If an IR achieves all the requirements of Silver Star, this rank will be the new base rank and will no longer be demoted to Bronze star.

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