Marketing booklet 15_05_2015

SAMIR MODI AZADI PLAN

Key Benefits

• You benefit /earn from the 3 most important behaviors – Self Use, Share and team development

• Better opportunity for new consultants & business builders

• Rewards developing your team in Width and Depth

• Rewards developing your team’s competency

Modicare Plan offers you 8 Areas of Income

1 Savings on consumption – upto 20%

2 Retail profit – Upto 20%

3 Accumulative Performance Bonus – 7% - 22%

4 Director Bonus - 14%

5 Leadership Productivity Bonus - 15%

6 Outbound Travel Fund- 3%

7 Dream Vehicle Fund - 5%

8 Dream Home Fund - 3%

Savings on Consumption Upto 20%

• Modicare offers products in 9 categories that are of regular use for the entire family. As a Modicare consultant you buy products on a discount upto 20% on the MRP (maximum retail price) which means savings in your household expenses month on month

Retail Profit Upto 20%

• Sharing products to your customers is the first step in building a strong foundation for your business. As a Modicare Consultant you purchase products at Consultant price and can share the products with your Customers at Retail price/MRP. The difference between the price that you pay and the price at which the products are sold is the Retail profit that you earn. You can earn Retail profits of upto 20%.

• Example: You share products worth Rs. 2500 at MRP at an upto 20% markup on consultant price. The consultant price of these products is Rs. 2000. Hence, you will earn upto Rs. 500 as the Retail Profit

Accumulative Performance Bonus

• Earn bonus right from word go… no waiting, no minimum purchase… practically any product purchase would qualify for a cheque

• You never start with zero… accumulation helps you grow your and team’s level and thereby continuous growth in level / titles and more income, more rewards…

Accumulative Performance Bonus (APB) Slabs – 7%- 22%

Performance Bonus

Level

Accumulative

PV

Accumulative

BV %

Range Range

Consultant 1-300 25-7,524 7%

Senior Consultant

301-1,200 7,525-30,024 10%

Associate Supervisor

1,201-2,700 30,025-67,524 13%

Deputy Supervisor 2,701-4,500 67,525-1,12,524 16%

Supervisor 4,501-6,000 1,12,525-

1,50,024 19%

Director 6,001+ 1,50,025+ 22%

•To qualify for performance bonus, a distributor must have a minimum personal purchase of 300 BV till the level of Supervisor and 600 BV from Director Level upwards. •If in any case a consultant fails to make the required minimum personal purchase, the bonus earned in that month is carried forward and is released in the month, the distributor makes the required minimum personal purchase.

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Modicare Fast Start Program

Single Month Fast Start

240 PV (6,000 GBV) in a single

month before hitting 10%

Granted a special growth and level of

10% PLUS Free Accidental Insurance

worth Rs 1 Lac

• Applicable to consultants who have still not qualified for 10% level

Example 1: Performance Bonus Calculation • Let’s assume that in month 1 when you have joined,

• You have sponsored 4 of your friends as your downline distributors.

You

PBV-6000

A

PBV-4000

B

PBV-3000

C

PBV-2000

D

PBV-20000

Your Group Business Volume (GBV) 35,000

Your Group is entitled to 13% performance bonus = 35,000 X 13% = Rs. 4550

Rs. 4550 are to be divided amongst your downlines and you according to the levels of their

achievement.

A is qualified for 7% and gets 4,000 X 7% = Rs. 280

B is qualified for 7% and gets 3000 X 7% = Rs. 210

C is qualified for 7% and gets 2000 X 7% = Rs. 140

D is qualified for 10% and gets 20000 X 10% = Rs. 2000

Rs. 2630 is distributed to your downlines and the balance Rs. 1920 is your performance

bonus for the month.

Example 1: Performance Bonus Calculation

Example 2: Performance Bonus

• Let’s assume that in month 2 you and your downlines have done the following business:

You

PBV-5000

Accumulated BV-6000 Total-11000

A PBV-10000

Accumulated BV-4000

Total-14000

B

PBV-15000

Accumulated

BV-3000

Total-18000

C PBV-5000

Accumulated BV-2000

Total-7000

D PBV-20000

Accumulated BV-20000

Total-40000

Your Group Business Volume (GBV) for Month 2 is 55,000

Your Last month Group Business Volume (GBV) was 35,000

Your accumulative GBV is 90000

• You are paid on the Business Volume (BV) which you have generated in the current month whereas previous month BV is added to determine the performance bonus levels

• Your Group is entitled to 16% performance bonus = 55000 X 16% = Rs. 8800

• Rs. 8800 is to be divided amongst you and your downlines according to the levels of their achievement. Let's see how your downlines earn their bonuses:

Consultant A

• Last month BV 4,000

• This month BV 10,000

• Cumulative BV 14,000

• A is now qualified for 10 % on this month's BV gets Rs. 1000

Consultant B

• Last month BV 3,000

• This month BV 15000

• Cumulative BV 18000

• B is now qualified for 10% on this month's BV gets Rs. 1500


Consultant C

• Last month BV 2000



• C is now qualified for 7 % on this month's BV and gets Rs. 350

Consultant D

• Last month BV 20000



• D is now qualified for 13% on this month's BV and gets Rs. 2600

Total bonus distributed in your team is Rs. 5450

Your APB earning = 8800-5450 = Rs. 3350/-

• This way your Business Volume gets accumulated month after month.

• In Modicare, everyone can achieve the Director level and there are no demotions in titles

• These are mathematical examples only for illustration purposes. Incentives are paid out only when personal targets are met


How do you progress with Modicare

TITLE No. of Qualified

DIRECTOR Legs QUALIFYING CONDITIONS

Director NA PBV≥ 600, PGBV≥31250

Senior Director 1 PBV≥ 600, PGBV≥27500

Executive Director 2 PBV≥ 600, PGBV≥22500

Senior Executive Director

3 PBV≥ 600, PGBV≥15000

Platinum Director 4 PBV≥ 600, PGBV≥7500

Presidential Director 6 PBV≥ 600

Crown Diamond

Director 8

PBV≥ 600

Royal Black Diamond

Director 11

PBV≥ 600

Global Black Diamond

Director ≥ 14

PBV≥ 600

PBV is included in PGBV

Qualified Director

Month-1

You PBV-600+

Total team vol. 6001+ PV / 1,50,025

PGBV (Fresh or accumulated)

Qualified Director

Month-2 You

PBV-600+

Total team vol. Min. 1250 PV or

31,250 PGBV (current month

fresh PGBV)

Qualified Director

Fast Start Director

• If any distributor achieves 4800 PV (120000 GBV) in a single business month before hitting 22% level, then he / she qualify as Fast Start Director

Scenario 1: Qualified Titles in May 2015 • In this Example A,B, C &D are Qualified Directors • “X” is a Qualified Platinum Director (4 Qualified Director Legs and PGBV of ≥ 7500

• “X” would qualify for Accumulative Performance Bonus, Director Bonus, Leadership Productivity Bonus, OTF and DVF

• A,B,C,D would qualify for Accumulative Performance Bonus and Director Bonus

X

PBV≥ 600

PGBV-20000

A

PBV≥ 600

PGBV-50000

B

PBV≥ 600

PGBV-40000

C

PBV≥ 600

PGBV-40000

D

PBV≥ 600

PGBV-35000

Scenario 2: Qualified Titles in June 2015 • In this Example A,B, C &D are Valid Directors , but due to non achievement of min. PGBV of

31250, B, C, D would not be Qualified Directors in June. However A is a Qualified Director

• “X” is a Valid Platinum Director , but only one leg A is a Qualified Director and B, C, and D are not… and “X” does not have any PGBV, hence “X” would not qualify for any title in June and thereby looses on income – makes 22% APB on his/her PBV

• Why would “X” want to loose and can adopt 2 routes. First, put his/her PGBV of min. 27500 and qualify as Sr. Director and earn applicable bonuses. Alternatively, he/she can make B,C, D put min. PGBV of 31250 and put his/her own PGBV of ≥ 7500 to re-qualify as Platinum Director and earn all applicable bonuses

X

PBV≥ 600

PGBV-0

A

PBV≥ 600

PGBV-50000

B

PBV≥ 600

PGBV-10000

C

PBV≥ 600

PGBV-10000

D

PBV≥ 600

PGBV-5000

Scenario 3: Disqualified Title

• In this case A, B, C, D are Qualified Directors

• “X” has four Qualified Directors Legs

• In the absence of PGBV “X” doesn’t qualify for any title and hence looses on all bonuses and benefits. However he/she will be entitled only for the APB on his PBV

• To get the title of Platinum Director “X” only needs a PGBV of ≥ 7500

X

PBV≥ 600

PGBV-0

A

PBV≥ 600

PGBV-

50000

B

PBV≥ 600

PGBV-

40000

C

PBV≥ 600

PGBV-

35000

D

PBV≥ 600

PGBV-

32000

Director Bonus (14% Pool)

• Modicare TO SET ASIDE 14% of Company's monthly BV as Director Bonus (DB) Pool.

• This is computed by a "Point System" based on the Director Bonus points earned by all qualifying Director and above achievers.

• DB point index would be allotted basis the monthly computation and is likely to vary from month to month and would be determined and announced post month closing.

• The formula of determining DB points is as mentioned below:

• Modicare’s total monthly BV = A

• Director Bonus Pool (14% of A) = B

• Sum Total of DB points collected by

all DB qualifiers in a month = C

• DB Point index (Rupees) = B/C

Status Qualified

Director Leg Qualifying Conditions

Qualified Director Generation in %

You 1 2 3 4 5 6 7 8 9

Director PBV≥ 600BV

PGBV≥31250 BV 7

Senior Director 1 PBV≥ 600BV

PGBV≥27500 BV 7 6 5

Executive Director

2 PBV≥ 600BV

PGBV≥22500 BV 7 6 5 4


3 PBV≥ 600BV

PGBV≥15000 BV 7 6 5 4 3

Platinum Director

4 PBV≥ 600BV

PGBV≥7500 BV 7 6 5 4 3 2

Presidential Director

6 PBV≥ 600BV 7 6 5 4 3 2 1

Crown Diamond Director

8 PBV≥ 600BV 7 6 5 4 3 2 1 0.5

Royal Black Diamond Director

11 PBV≥ 600BV 7 6 5 4 3 2 1 0.5 0.5

Global Black Diamond Director

≥ 14 PBV≥ 600BV 7 6 5 4 3 2 1 0.5 0.5 0.5


• In the example an illustration is shown how the Director Bonus points are calculated. Please note that these examples are assumptions only and mentioned for the purpose of concept clarity.

• There is a distributor X who has a downline X1 and X1 also has a downline A

X(PBV 600BV)

PGBV - 35000

X1(PBV 600BV)

PGBV - 35000

A(PBV 600BV)

PGBV - 155000


X is a Senior Director and is eligible to get Director Bonus on 2 generations.

DB Points computation for X:

7% on his own PGBV = 7% of 35000 = 2450 points

6% on X1’s PGBV = 6% of 35000 = 2100 points

5% on A’s PGBV = 5% of 155000 = 7750 points

Total Points collected by Senior Director X = 2450+2100+7750 = 12300

In the above example X1 is also a qualified Senior Director and is eligible to receive

Director Bonus points:

DB Points computation for X1:


6% on A’s PGBV = 6% of 155000 = 9300 points

Total Points collected by Senior Director Director X1 = 2450+9300 = 11750

In the above example A is a qualified Director and is eligible to receive Director Bonus points:

DB Points computation for A:


Total Points collected by Director A = 10850


For illustration purposes we assume that the company’s Business Volume for the

month is 1 Crore and DB points collected by all Director and above achievers are 17 Lacs:

Modicare’s total monthly BV = A = 10000000

Director Bonus Pool (14% of A) = B = 1400000

Sum Total of DB points collected by

All DB qualifiers in a month = C = 1700000

DB Point index (Rupees) = B/C = 0.82

Basis the above DB point index the Director Bonus earnings would be as follows:

Distributor DB Points DB Point Index

DB Earning

(Rs.)

X 12300 0.82 10086

X1 11750 0.82 9635

A 10850 0.82 8897


Dynamic Compression

• To qualify for DB, all qualifiers have to have a personal purchase of 600 PBV.

• DB will be paid on all qualified director groups

• If your direct director downline has not qualified, then the PGBV of non qualified directors is clubbed down till a qualified director irrespective of the generation. However, If no Qualified Director is found then the PGBV of non qualified directors is clubbed to the PGBV of the first Qualified Director above.

Senior Exec Director

600 PBV, PGBV 27500

600 PBV, PGBV 28000

PGBV 10000

PGBV 5000

600 PBV, PGBV 30000

600 PBV, PGBV 35000

PGBV 20000

PGBV 15000

A

D

E

Non Qualified Director Qualified Director

You

B

C

F

G

Generation 3

35000+20000+

15000= 70000

Generation 2

10000+5000+

30000 =

45000

Generation 1

PGBV 28000

Dynamic Compression- Example

Since E is a qualified director, and F and G are not, the PGBV of F and G will be added to the PGBV of E.

Leadership Productivity Bonus (15% Pool) • This bonus as the name suggests is paid as a reward to create leaders in

your Line Of Sponsorship.

• Modicare would set aside 15% of Company's monthly BV as Leadership Productivity Bonus (LPB).

• It is paid to all Qualified Senior Director and above. The percentage of the LPB and no. of generations paid would depend on your own title and that of downline’s and is paid upto 8 generations deep.

• In order to get paid LPB all Qualified Senior Director and above distributors must complete 600 PBV and 90000 GBV excluding PBV that must come from a single downline group.

STATUS Qualified Director Groups

QUALIFYING CONDITIONS

GENERATION PAID IN %

You 1 2 3 4 5 6 7 8

Senior Director 1 GBV 90000 6 6

Executive Director 2 GBV 90000 6 6 5


3 GBV 90000 6 6 5 5

Platinum Director 4 GBV 90000 6 6 5 5 4

Presidential Director

6 GBV 90000 6 6 5 5 4 3

Crown Diamond Director

8 GBV 90000 6 6 5 5 4 3 2

Royal Black Diamond Director

11 GBV 90000 6 6 5 5 4 3 2 1

Global Black Diamond Director ≥ 14 GBV 90000 6 6 5 5 4 3 2 1 0.5

If your Director downline does not have a GBV of 90,000 then GBV of qualified/unqualified Director distributors is rolled up till 90,000 GBV is achieved.

Leadership Productivity Bonus

Rules:

• You can earn upto 8 generations deep depending upon your title and that of your downline’s

• A qualifying up-line Senior Director and above can earn LPB only on all Director and above down-lines upto 8 generations

• This is computed by a "Point System" based on the LPB points earned by all qualifying Senior Director and above achievers.

• LPB point index would be allotted basis the monthly computation and is likely to vary from month to month and would be determined and announced post month closing.

• All Senior Director and above distributors who are eligible to earn LPB must give a “Guarantee” of 90000 BV to the next qualifying Senior Director and above up-line

• In order to earn on all the qualifying generations in your depth (as mentioned in LPB table) you must maintain a title equal or higher than all qualifying downlines, however

– If your title is lower than any LPB qualifier downline; then you would get paid only on the PGBV of such downline and all the generations below would be blocked


LPB Point Index would be computed as mentioned below:

Modicare’s total monthly BV = A

Leadership Productivity Bonus Pool (15% of A) = B

Sum Total of LPB points collected by

All LPB qualifiers in a month = C

LPB Point index (Rupees) = B/C

In the below example an illustration is shown how the Leadership Productivity

Bonus points are calculated. Please note that these examples are assumptions

only and mentioned for the purpose of concept clarity.


Example-1

1 generation deep

Sr. Director

“X”-Sr. Director PGBV-30000

“A”-Sr. Director

PGBV-30000

“B”-DIRECTOR PGBV-60000

Guarantee of 5400 points

1 generation deep

In the above example we shall calculate the LPB points of Senior Director “X” 1. As per rules Senior Director “X” would get LPB on a first generation Senior Director “A” 2. Though “A” is also a qualifying Senior Director, but he would not qualify for LPB as his downline “B”

is Director with less than 90000 GBV 3. BV of A+B would be rolled up

Points Calculation: A+B (Generation-1) @6% = 90000*6% = 5400 LPB points X’s PGBV @ 6% = 30000*6% = 1800 LPB points X would give Guarantee of 5400 LPB points to upline Senior Director. X’s LPB points =(5400+1800)-5400 = 1800 LPB POINTS


• Example-2: Ex. Director

“X”-Ex. Director PGBV-30000

“A”-Sr. Director

PGBV-90000

“B”-Sr. Director PGBV-90000

Guarantee of 5400 points

2 generations deep

“C”-Sr. Director PGBV-32000

“D”-DIRECTOR PGBV-60000

In the above example we shall calculate the LPB points of Executive Director “X” 1. As per rules EXECUTIVE DIRECTOR “X” would get LPB on 2 generations i.e Senior

Director “A” & “B” and SENIOR DIRECTOR “C”


Points Calculation:

A+B (Generation-1) @6% = (90000+90000)*6% = 10800 LPB points

C (Generation-2) @ 5% = 32000 *5% = 1600 LPB Points

X’s PGBV @ 6% = 30000* 6% = 1800 LPB points

X would give Guarantee of 5400 LPB points to upline Executive Director.

X’s LPB points =(10800+1600+1800)-5400 = 8800 LPB POINTS


Modicare Outbound Travel Fund 3%

Rules:

1. The OTF is to be used for travel trips announced by the company

2. Director Bonus points to be used for the OTF calculation

Qualified Senior Director and above

OTF Point Value = 3% x Total Company BV

Total OTF Points collected

Rules:

1. Maintain Qualified Senior Executive Director or higher for 3 consecutive months and earn the DVF from fourth

month onwards

2. A consultant qualifying for the Dream Vehicle Fund has to purchase a car after getting approval from the company

3. Rs 1,00,000/month is maximum you can earn in DVF

4. Director Bonus points to be used for the DVF calculation

5. Once a distributor qualifies for DVF ; then He / She can keep earning this even after qualifying as > Senior Director

Achiever

Qualified Senior Executive Director and above

DVF Point Value

5% x Total Company BV

Total DVF Points collected =

Modicare Dream Vehicle Fund 5%

=

Rules:

1. Maintain Qualified Presidential Director or higher for 3 consecutive months and earn DHF from fourth month

onwards

2. The Dream Home Fund will be released by Modicare in the following month along with the Bonus Cheque

3. Rs 1,20,000/month is the maximum you can earn in DHF

4. Director Bonus points to be used for the DHF calculation

5. Once a distributor qualifies for DVF ; then He / She can keep earning this even after qualifying as > Senior

Director Achiever

Qualified Presidential Director and above

DHF Point Value

3% x Total Company BV

Total DHF Points collected =

Modicare Dream Home Fund 3%

Other Rules

• To earn bonus, minimum PBV required is :

– 300 PBV (Consultant to Supervisor)

– 600 PBV (Director and above)

• Renewals

– No Renewal required

• All Bonuses are subject to TDS as per rules

Glossary of Important Terms

PV : Point Value is a unit amount assigned to each product. The total PV associated with your monthly sales volume is tracked to determine your performance bonus level %.

BV : Business Volume is the value the Company assigns to each product and is used to calculate the Consultants’ bonus and status for any particular month. Currently the PV BV ratio is 1: 25 and is subject to change by the company from time to time

PBV : Personal Business Volume. This is the sum total of BV of all products bought by you personally in any particular month

PGBV : Personal Group Business Volume, is the business volume of your entire group & does not include the business volume of Director group/groups. PGBV includes your personal business volume


GBV : Group Business Volume, is business volume generated by your entire group in any particular month and includes your personal business volume

CummBV : Cumulative Business Volume, is Business volumes accumulated by your group

Downline: Those people directly sponsored by an Independent Consultant, plus the people sponsored by these Independent consultant and so on

Leg: Each personally sponsored Independent Consultant on your first level is part of your total Downline and is a separate “leg.” You and your entire organization (Downline) are one “leg” to your sponsor.

Level: The people you personally sponsor are your first level. The ones they sponsor are your second level. The ones your second level sponsors are your third level, etc.


Qualified Director: A consultant can become a director through the accumulation of the GBV over a period of time. However for him/her to be qualified director in any given calendar month, he/she has to do the required PGBV. Monthly bonuses for Director require the Director to be qualified for the same. For all titles, monthly payouts will be determined basis “Qualified” directors in the team.

Generation: The first Qualified Director or above in your enrolment legs will be your first Generation and so on