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Sales Incentive

Definitions

Group Miles:
Group Miles are the Miles accumulated to you based on first time products purchase by your team IBA. 100% of the Group Miles (upto first 100 miles)will be accumulated to you for your Group Sales Incentive.

Group MyMiles: Group MyMiles are the Miles accumulated to you based on repeated purchase(after first 100 miles) of products by your team IBA. 100% of the Group MyMiles will be accumulated to you for your Group Sales Incentive as Group MyMiles.

Personal MyMiles: Personal MyMiles are the Miles accumulated to you based on repeated purchase of products personally by you. 100% of Personal MyMiles will be accumulated to you for your Group Sales Incentive.

Group Sales Incentive: Based on the volume of products sold by your team of IBA’s, miles will be accumulated in your IBA id. Based on the miles(Group Miles and Group MyMiles) accumulated every week, Group Sales Incentive will be paid to you as per the eligibility criteria and as per Group Sales Incentive Plan.

Group Sales Incentive

The Sales Incentives is calculated on the principle: “Higher the accumulated Miles, more the Sales Incentives “. Within this broad principle, the company has a progressive Sales Incentives structure. Such a structure is beneficial to both associates and the company as it results in the highest sales. At high volume levels, the total accumulated miles of an associate depends significantly on the miles of team Associates.

Your Sales Incentives depends on the miles (Group Miles and Group MyMiles) accrued by you, subject to the condition (Balancing Criteria) that the ratio of miles on your weaker side to those on the stronger side must be 1:2 or more. 1:2 is also written as 0.5; similarly 3:4 can be treated as 0.75, which is higher than 0.5. Therefore a ratio of 3:4 is considered ‘more’ than 1:2; on the other hand, a ratio of 1:3 is treated as ‘less’ than 1:2.

What happens if my miles are not balanced, if the ratio is less than 1:2?
In case, miles on one side are more than double the miles on the weaker side, then the number of eligible miles on the stronger side are limited to double the miles on weaker side. For instance, if you have 4800 miles on the left side, and 1200 miles on the right side, the ratio is 1:4 which is less than 1:2. So, on the stronger side, left in this case, the number of eligible miles would be limited to 2400 miles, double the 1200 miles on the weaker side. More examples make this point clear.
For the first 4,500 eligible miles, currently the Group Sales Incentives is paid as follows:

First 900 miles	Rs.4800 (with an early advantage offer)*
Second 900 miles	Rs. 4700
Third 900 miles	Rs. 4700
Fourth 900 miles	Rs. 4700
Fifth 900 miles	Rs. 4700

Please note that the above are the amounts what you are eligible for. The Government of India stipulates certain statutory deductions on Sales Incentives payments, which will be deducted by the company before making a Sales Incentives Cheque/ ECS in your favour.

10% of the weekly Group Sales Incentive will be given in terms of Merchandising Voucher and remaining in terms of Cheque. For first 900 miles Sales Incentives, Merchandising Voucher is not applicable.

*Early advantage offer entitles breaking up the first 900 miles in to three slabs of 300 miles each. Please check the website of the company or contact your referrer to find out if this offer is currently on. Sales Incentives payable under the Early Advantage offer is as follows:

First 300 miles	Rs. 1600
Second 300 miles	Rs. 1600
Third 300 miles	Rs. 1600

*Early Advantage offer is at the discretion of the company

What happens if I have 1200 miles?

Since Group Sales Incentives are paid in ‘steps’ of 900 miles, those miles for which Group Sales Incentives was not paid will be carried forward to the next week. This is done for each leg separately. Suppose that you have 600 miles on each side. For the given week, 450 miles from each leg are considered and the balance 150 miles on each leg are carried forward in the next week. Further suppose that you get sales of 200 in the left leg, and 800 in the right leg in the next week. The total eligible miles, and those further carried forward, would be:

	Left	Right	Total	Eligible
Week n	600	600	1200	1200
Group Sales Incentives paid out on	450	450	900	900
Carried forward	150	150	300	–
Miles in Week n + 1	200	800	1000	–
Total miles in Week n+1	350	950	1300	1300
Group Sales Incentives, Wk n+1	300	600	900	900
Carried forward to Wk n + 2	50	350	400	–

After the first 4500 miles, the Group Sales Incentives earned by you decreases according to the Step-Rate for the given week. Step-Rate is the Group Sales Incentives paid for each ‘Step’ of 900 miles. This varies from week to week, and is set such that the overall sales incentives paid by the company is capped at Rs. 45 per unique Mile of sales. This cap, is reviewed from time to time.

Since the variation in the step rate makes planning of your work and income difficult, the company has a Motivational Step Rate for those with limited business. For those associates who have already received Group Sales Incentives for 4500 eligible miles, but whose weekly eligible miles are only of one step, that is, 900 miles, Group Sales Incentives is calculated at the Motivational Step Rate. In case your sales increase to 2 steps (1800 miles), your Group Sales Incentives would be calculated as per the actual Step Rate. After receiving Group Sales Incentives at actual Step Rate for a few weeks, if your sales again drop down to the single step in any given week, Sales Incentives for the week is calculated at the Motivational Step Rate. Thus, the Step Rate applicable after accumulating 4500 eligible miles depends on the number of steps in a given week.

Currently, effective 16th July 2011, the Motivational Step Rate is for Single Step is Rs. 3,400/-, which is as usual paid after statutory deductions. The difference between the Motivational Step Rate and the actual Step Rate is funded by the top 10 earners and the company. Please note that this is reviewed every quarter.

Disclaimer: Please be aware that the examples and income figures presented are indicative. Some Associates will do better; others will not do as well. As such, these figures should not be considered representations, guarantees or projections of gross or net earnings as actual results will depend on individual effort and activities in selling company products.