QNET Compensation Plan Presentation (2014)

HOW DO I START?

ENROL

QUALIFY

ACTIVATE

Enrol 1. Enrol online through www.qnet.net 2. Pay for your one-year IRship Package (USD 30)  Online Business Planner & Product Portfolio  Access to your Virtual Office  Access to the QNET eStore  Business, marketing, and eCommerce tools

MAXIMISE

Renew Pay for the Annual IRship Package worth USD 30 for continuous access to and maintenance of the following services:  Online Business Planner & Product Portfolio  Access to your Virtual Office  Access to the QNET eStore  Business, marketing, and eCommerce tools

ENROL

QUALIFY ACTIVATE MAXIMISE

Qualify at least one of your Tracking Centres with a minimum of 500 qualifying BV each by selling products to a Retail Customer or purchasing Products for Personal Consumption.

ENROL

QUALIFY

ACTIVATE MAXIMISE

To ACTIVATE means that a Qualified IR has to achieve a minimum of 500 BV on each side of any of his/her Tracking Centres through Personal Sponsorship.

There are 3 ways to Activate.

ENROL

QUALIFY

ACTIVATE MAXIMISE

Through Retail Sales All products are purchased by the Retail Customer but corresponding BV is allocated to Referrer’s TCs.

ENROL

QUALIFY

ACTIVATE MAXIMISE

Combination of Sales and Purchases

Directly Referred Retail Customer’s Purchase and Directly Referred Qualified IR’s Purchase allocated to your Tracking Centres.

ENROL

QUALIFY

ACTIVATE MAXIMISE

Personal Sponsorship

ENROL

QUALIFY

ACTIVATE

MAXIMISE

Move to action as you build and lead an organisation of people who share the same dreams and goals as you.

By achieving the QNET Star Ranks, you can maximise earnings and enjoy a richer and fuller lifestyle as a member of the growing QNET universal community.

Q1

RETAIL PROFIT

Q2

FIRST PURCHASE PROFIT

Q3

EARLY PAYOUT

Q4

STEP COMMISSION

Q5

REPEAT SALES POINTS

Q6

RANK ADVANCEMENT BONUS

Q7

YEAR ROUND REWARDS

Q8

OTHER INCENTIVES

Q1 RETAIL PROFIT

When you refer a Retail Customer who purchases from the Company, you receive the Retail Profit, which is the difference between your customer’s Retail Price and your discounted price as an IR. An IR could immediately start earning Retail Profits from purchases of his/her Retail Customers. The IR is not required to make any product purchase to start earning the Retail Profit.

Price paid

by Retail Customer

Your Price

Q2 FIRST PURCHASE PROFIT As a Referrer, you will receive the First Purchase Profit from the qualifying purchase made by your new personally sponsored IR. The First Purchase Profit is the difference between the price of the first qualifying purchase of an IR (made at Retail Price) and the IR Discounted Price.

Price paid by personally Sponsored IR

IR Discounted Price

Q3 EARLY PAYOUT The Early Payout applies only to Primary TC 001, at Cycle 1, Step 1 and is paid according to the following Commission Schedule.

Group Business Volume in any Lower Volume Leg (GBV)

Early Payout (USD)

1,000 BV

USD 50

Within the first 4 weeks from the IR’s registration date

1,000 BV

USD 50

Within the first 6 weeks from the IR’s registration date

1,000 BV

USD 100

- NA -

Time Frame

This illustrates Early Payout to IR under Bronze Star Rank.

Q4 STEP COMMISSION Qualified & Activated

Step Commission is the commission paid according to an IR’s compensation level.

At the end of each commission period (week), the QNET Commission Engine searches down your Tree to determine group BV in any of the lower volume leg and the allowable commission amounts per Tracking Centre determined by active rank.

Retail Customer 2,000 BV

Retail Customer 1,000 BV

Direct Referrer 3,500 BV

Downline 2,000 BV

Retail Customer 1,000 BV

Direct Referrer 1,500 BV

Downline 1,500 BV

Step Commission Chart Step

Business Volume in any Lower Volume Leg, (BV)

Rank Bronze Star

Silver Star

Gold Star

Platinum Star

Diamond Star

1 2 3 4 5 6 *EP stands for eVoucher Points, which are used to redeem products in the QNET Redemption eStore.

Please refer to Income Disclaimer.

Weekly Maximised Step Commission per TC Rank Payout per step Maximised steps per week Maximised payout per week

Bronze Star

Silver Star

Gold Star

Platinum Star

Diamond Star

Q5 REPEAT SALES POINTS For every repeat product transaction, the IR and active Direct Referrers up to five (5) levels, including his/her own, will earn the Repeat Sales Points.

RSP are automatically computed and you can easily manage them in your Virtual Office.

What are Repeat Sales Points (RSP)?

RSP are points that are earned from repeat sales.

These points are convertible into either Cash or BV.

Why RSP? You can earn from the Repeat Purchases of your downlines.

RSP can help you move up in ranks.

You need RSP to maintain your rank.

RSP Conversion to Cash and BV RSP

Cash equivalent*

BV equivalent

60

USD 10

20 BV

120

USD 20

40 BV

300

USD 60

160 BV

600

USD 150

420 BV

1,000

USD 300

900 BV

You are given the options to redeem your accumulated RSP by converting them into either Cash or BV within six (6) months from the earned date.

Before Compression

After Compression

Compression Creates Excitement!

When an IR misses the quarterly requirement, active IRs from below temporarily move up to replace them.

QNET pays producers!

IR Quarterly Requirement Achieved?

Yes = Active IR No = Inactive IR NOTE: B and D are temporarily replaced by F and I but will resume their positions once they again meet their quarterly activity requirements.

Direct Referrer Level III Receives Repeat Sales Points

Direct Referrer Level II Receives Repeat Sales Points

Direct Referrer Level I Receives Repeat Sales Points

Direct Referrer Level IV Receives Repeat Sales Points

Retail sale or IR’s repeat purchases IR gets the Repeat Sales Points

Don’t get skipped!

Maintain PBVs to earn RSP from Downlines

Rank

New

Bronze Star Silver Star Gold Star Platinum Star Diamond Star

120 PBV/quarter

Remember!

RSP not converted into BV will be automatically converted into cash if not redeemed within six (6) months.

BV converted from RSP is credited to the IR and accumulated in the BV Bank. It is used to qualify a Tracking Centre and counts in GBV for Step Commission calculation.

RSP are automatically computed and you can easily manage them in your Virtual Office.

Q6 RANK ADVANCEMENT BONUS With Rank Advancement in the Step Commission, you can be rewarded with up to USD 60,300 in cash plus eVoucher Points each week!

As you grow and advance in rank, the amount paid per step increases, the number of weekly steps allowed increases, and the maximised weekly payout can be achieved.

It pays to grow!

The QNET Star Ranks Rank

Qualifications

Bronze Star

• Tracking Centres must be Qualified and Account must be Activated**

Silver Star

Option 1 Tracking Centres must be Qualified and Account must be Activated + 1 more Qualified Direct Referral ***

Weekly Maximised Cash* Up to USD 20,400/week (USD 6,800/TC/week) Up to USD 28,350/week (USD 9,450/TC/week)

OR Option 2 3 Qualified Direct Referrals with 500 BV each*** OR Option 3 2 Qualified Direct Referrals with 1,000 BV each*** And One-time 40 BV from Repeat Sales*** *Quarterly requirements **One-time requirement achieved at Bronze Star rank ***One-time requirement achieved at Silver Star rank (One-time 40 BV at Silver Star rank can also be used as your RSP maintenance for the first quarter) ****One-time requirement achieved at Gold Star rank

The QNET Star Ranks Rank

Qualifications

Gold Star

• Earn 2 Steps**** • Retail sales/personal purchase of 120 RBV/quarter • Achieve 80 Repeat Sales Points (RSP)/quarter* RSP PROMO: Only 60 RSP requirement within the first 90 days of launch • Achieve 500 BV from new Direct Referral(s)/quarter* • Achieve 1,000 RBV in Group Repeat Business Volume/quarter*

Weekly Maximised Cash* Up to USD 37,500/week (USD 12,500/TC/week)

*Quarterly requirements **One-time requirement achieved at Bronze Star rank ***One-time requirement achieved at Silver Star rank (One-time 40 BV at Silver Star rank can also be used as your RSP maintenance for the first quarter) ****One-time requirement achieved at Gold Star rank

The QNET Star Ranks Rank

Qualifications

Platinum Star

• •

• •

• • •

Retail sales/personal purchase of 120 RBV/quarter Achieve 240 Repeat Sales Points (RSP)/quarter* RSP PROMO: Only 180 RSP requirement within the first 90 days of launch Achieve 1,000 BV from new Direct Referrals/quarter* Achieve 15,000 BV in Group Repeat Business Volume/quarter with no more than 7,500 BV coming from each of 2 or more direct Referral lines 30 Indirect Referrals with new Rank Advancement from Silver Star Rank upwards/quarter Achieve 120,000 BV in the Lower Volume Leg per week for 8 weeks within a quarter Achieve Platinum Star requirements and maintain the same requirements for another two (2) quarters PROMO: Achieve Platinum Star requirements and maintain the same requirements for another one (1) quarter

Weekly Maximised Cash* Up to USD 48,675/week (USD 16,225/TC/week)

*Quarterly requirements **One-time requirement achieved at Bronze Star rank ***One-time requirement achieved at Silver Star rank (One-time 40 BV at Silver Star rank can also be used as your RSP maintenance for the first quarter) ****One-time requirement achieved at Gold Star rank

The QNET Star Ranks Rank

Qualifications

Diamond Star

• •

• •

•

• •

Retail sales/personal purchase of 120 RBV/quarter Achieve 480 Repeat Sales Points (RSP)/quarter* RSP PROMO: Only 360 RSP requirement within the first 90 days of launch Achieve 1,500 BV from New Direct Referral(s)/quarter* Achieve 50,000 RBV in Group Repeat Business Volume/quarter with no more than 12,500 BV coming from each of 4 or more direct Referral lines 90 Indirect Referrals with new Rank Advancement from Silver Rank upwards/quarter Achieve 180,000 BV in the Lower Volume Leg per week for 8 weeks within a quarter Achieve Diamond Star requirements and maintain the same requirements for another four (4) quarters PROMO: Achieve Diamond Star requirements and maintain the same requirements for another two (2) consecutive quarters.

Weekly Maximised Cash* Up to USD 60,300/week (USD 20,100/TC/week)

*Quarterly requirements **One-time requirement achieved at Bronze Star rank ***One-time requirement achieved at Silver Star rank (One-time 40 BV at Silver Star rank can also be used as your RSP maintenance for the first quarter) ****One-time requirement achieved at Gold Star rank

Maintaining Your Rank per Quarter Criteria

Bronze Star

Silver Star

Gold Star

Platinum Star

Diamond Star

Personal Business Volume from Repeat Sale

N/A

N/A

120

120

120

Steps Earned

N/A

N/A

N/A

N/A

N/A

No. of Qualified Direct Referrals

N/A

N/A

N/A

N/A

N/A

Repeat Sales Points (RSP)

N/A

N/A

80

240

480

BV from New Direct Referrals

N/A

N/A

500

1,000

1,500

Group Repeat Business Volume (GRBV)

N/A

N/A

1,000

15,000

50,000

Indirect Referrals with New Rank Advancement

N/A

N/A

N/A

30

90

N/A

N/A

N/A

120,000 BV per week for 8 weeks/quarter

180,000 BV per week for 8 weeks/quarter

Lower Volume Leg, BV

Q7 YEAR-ROUND REWARDS

eVOUCHERS FOR PRODUCT REDEMPTION

% DISCOUNTS ON BESTBELLERS!

SPECIAL CASH INCENTIVES

FUN & EXCITING PROMOTIONS

Q8 OTHER INCENTIVES QNET celebrates milestones and leadership with AIRE:

AWARDS INCENTIVES RECOGNITIONS EVENTS

WE HONOUR MILESTONES. AWARDS INCENTIVES RECOGNITIONS EVENTS

 Rank Pins for Gold, Platinum and Diamond Stars  Rank eCertificates

WE REWARD ACCOMPLISHMENTS. AWARDS INCENTIVES

 Cash incentives*  Free QNET Life Site subscriptions**/***  Exclusive Travel Incentives

RECOGNITIONS

EVENTS *Cash Incentives vary per rank (Diamond and Platinum Star only) **For Diamond Stars (upon successfully maintaining 4 consecutive quarters as a Diamond Star) ***For Platinum Stars (upon successfully maintaining 4 consecutive quarters as a Platinum Star)

WE RECOGNISE HARD WORK. AWARDS

INCENTIVES RECOGNITIONS EVENTS *Applicable to both Platinum and Diamond Star ranks **For Platinum Stars – upon achieving the Platinum Star rank ***For Diamond Stars – upon achieving the Diamond Star rank

   

Portrait Display in the Wall of Fame* Success Story featured in the Achievers’ Buzz* Regional Events Stage Recognition** V-Con Stage Recognition***

WE CELEBRATE ACHIEVEMENTS. AWARDS

INCENTIVES RECOGNITIONS EVENTS

 V-Con  Regional V-Con

 Local Events  ...and so much more!

Compensation Plan at a Glance

Q4

STEP COMMISSION

3000 GBV on Lower Volume Leg

Commission Payout

Rank Bronze Star

200

Silver Star

225

Gold Star

250

Platinum Star

275

Diamond Star

300

Q7

Q5

REPEAT SALES POINTS

III Active Direct Referrer

IV Active Direct Referrer

II Active Direct Referrer

YEAR ROUND REWARDS

eVOUCHERS FOR PRODUCT REDEMPTION

% DISCOUNTS ON BESTBELLERS!

SPECIAL CASH INCENTIVES

FUN & EXCITING PROMOTIONS

Q6

I Direct Referrer

Q8

OTHER INCENTIVES

RETAIL PROFIT

Q2

FIRST PURCHASE PROFIT

Q3

EARLY PAYOUT

RANK ADVANCEMENT BONUS

BRONZE Tracking Centres must be Qualified and Account must be Activated**

IR

Q1

SILVER Option 1 Tracking Centres must be Qualified and Account must be Activated + 1 more Qualified Direct Referral***

OR Option 2 3 Qualified Direct Referrals with 500 BV each*** OR Option 3 2 Qualified Direct Referrals with 1,000 BV | each*** And One-time 40 BV from Repeat Sales***

RANK PINS | eCERTIFICATES CASH INCENTIVES | TRAVEL INCENTIVES | REGIONAL & GLOBAL STAGE RECOGNITIONS | …AND MORE!

GOLD STAR  Earn 2 Steps****  Retail sales/personal purchase of 120 RBV/quarter  Achieve 80 Repeat Sales Points (RSP)/quarter*  Achieve 500 BV from new Direct Referral(s)/quart er*  Achieve 1,000 BV in Group Repeat Business Volume/quarter*

PLATINUM STAR  Retail sales/personal purchase of 120 RBV/quarter  Achieve 240 Repeat Sales Points (RSP)/quarter*  Achieve 1,000 BV from new Direct Referrals/quarter*  Achieve 15,000 BV in Group Repeat Business Volume/quarter*  30 Indirect Referrals with new Rank Advancement from Silver Star Rank upwards/quarter  Achieve 120,000 BV in the Lower Volume Leg per week for 8 weeks  Achieve Platinum Star requirements and maintain for another two (2) quarter

DIAMOND STAR  Retail sales/personal purchase of 120 RBV/quarter  Achieve 480 Repeat Sales Points (RSP)/quarter*  Achieve 1,500 BV from New Direct Referral(s)/quarter *  Achieve 50,000 BV in Group Repeat Business Volume/quarter*  90 Indirect Referrals with new Rank Advancement from Silver Rank upwards/quarter  Achieve 180,000 BV in the Lower Volume Leg per week for 8 weeks  Achieve Diamond Star requirements and maintain another four (4) quarters

*Quarterly requirements **One-time requirement achieved at Bronze Star rank ***One-time requirement achieved at Silver Star rank (One-time 40 BV at Silver Star rank can also be used as your RSP maintenance for the first quarter) ****One-time requirement achieved at Gold Star rank