Lifevantage Full Business Plan

COMPENSATION PLAN INTRODUCTION

We have 7 ways that you can earn at LifeVantage:

01 SMART START BONUS

02 LAUNCH BONUS

03 UNILEVEL COMMISSIONS

04 GENERATIONAL MATCHING BONUS

05 ELITE BONUS POOL

06 RANK ACHIEVEMENT BONUS

07 BUSINESS CENTERS

01 SMART START BONUS (paid weekly)

One of the first ways to earn a commission is by taking advantage of our SMART START BONUS. There are a few different ways to qualify for the SMART START BONUS. LifeVantage will pay you a commission for products sold to your personally-enrolled Customers.

A Customer is defined as someone who purchases our products through a monthly subscription. You will receive a 40% SMART START BONUS on any product purchased by a Customer within their first calendar month.

You can also earn the SMART START BONUS by selling product packs (to Customers and/or new Distributors). We have three different pack options to choose from:

1. SILVER PACK

2. GOLD PACK

3. PLATINUM PACK

In order to qualify for the 40% SMART START BONUS, you must maintain a Personal Volume (PV) of 200. If your Personal Volume is between 100 and 199 you will receive a 30% BONUS.

Note: *Personal Volume is derived from your personal product purchases (which must total at least 40 PV), as well as purchases made by your personally-enrolled Customers. *The Smart Start Bonus will be paid on up to 1,000 Commissionable Volume purchased by a new Customer or Distributor within their first calendar month. Any additional volume purchased will fall into the dynamically compressed Unilevel Unilevel Commission program

02 LAUNCH BONUS (paid weekly)

LIFEVANTAGE LAUNCH BONUS EXAMPLES LifeVantage wants to reward you for more than just the Customers and Distributors you personally enroll, so we have created the “LAUNCH BONUS” to reward you for Customers and Distributors enrolled by others in your organization. As with the SMART START BONUS, you must maintain a Personal Volume of 200 to qualify for the LAUNCH BONUS.*

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The LAUNCH BONUS works as a “trickle up” bonus, paying the first “qualified paid as” Distributor of each of the following ranks as it moves up the enrollment tree.

PRO 3 & 4 LAUNCH BONUS – If you are a Distributor being “paid as” a PRO 3 or PRO 4 you can earn up to $50 for each new pack purchased in your personal organization. This bonus will pay out to the first “qualified paid as” PRO 3 or PRO 4 when looking upline.

PRO 5 & PRO 6 LAUNCH BONUS – If you are a Distributor being “paid as” PRO 5 or PRO 6 you can earn up to $50 for each new pack purchased in your personal organization. This bonus will pay out to the first “qualified paid as” PRO 5 or PRO 6 when looking upline.

PRO 7, PRO 8, & PRO 9 LAUNCH BONUS – If you are a Distributor being “paid as” PRO 7, PRO 8, or PRO 9 you can earn up to $50 for each new pack purchased in your personal organization. This bonus will pay out to the first “qualified paid as” PRO 7, PRO 8 or PRO 9 when looking upline.

PRO 10 LAUNCH BONUS –

If you are a Distributor being “paid as” PRO 10 you can earn up to $25 for each new pack purchased in your personal organization. This bonus will pay out to the first “qualified paid as” PRO 10 when looking upline.

• EXECUTIVE MASTER LAUNCH BONUS If you are a Distributor being “paid as” EXECUTIVE MASTER you can earn up to $15 for each new pack purchased in your personal organization.

This bonus will pay out to the first “qualified paid as” EXECUTIVE MASTER PRO 10 when looking upline

. • PRESIDENTIAL MASTER LAUNCH BONUS – If you are a Distributor being “paid as” PRESIDENTIAL MASTER you can earn up to $10 for each new pack purchased in your personal organization. This bonus will pay out to the first “qualified paid as” PRESIDENTIAL MASTER PRO 10 when looking upline.

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03 UNILEVEL COMMISSIONS (paid monthly)

The UNILEVEL COMMISSION is your long-term, residual income opportunity. Simply put, these are commissions earned from recurring product sales within your organization. LifeVantage pays up to 43% on each product purchase within your organization. Your rank dictates how many levels down you can earn commission. As a PRO 1, you earn commissions from your first two levels. As a PRO 2,

you earn commissions from your first four levels. As a PRO 3, your first five levels, and so on. See table at the bottom of this page But wait!

There is something that really sets LifeVantage apart from the rest. It’s called dynamic compression. To understand dynamic compression, you need to know that every product order tries to pay 9 levels of commission up the placement tree. So the easiest way to see dynamic compression is to start with a purchase. Looking at the tree on the right, we are going to assume each of these distributors have qualifying volume. The rank of each distributor is listed. Let’s say that Sara places an order and as you move up the tree you can see how the commissions dynamically compress past distributors that do not qualify for that level of pay out.

*All Master Ranks must maintain the Rank for 3 consecutive months to be recognized Definition of terms: CV: Commissionable Volume. A value amount assigned to each product. Amounts can be found in your back office. PV: Personal Volume. The combined CV value of all product personally consumed or sold by a Distributor and/or their Customers. OV: Organizational Volume. The combined CV value of all product consumed or sold by a Distributor’s entire downline organization, which includes their own PV. Leg: The organizational volume derived from distributors who are placed in your downline. Distributors can be placed directly by you or placed there by an upline Distributor. % per leg: The minimum requirement to meet and hold a rank. It is the amount of product volume per leg that is counted toward meeting the OV requirement of any given rank. For example, an Elite Pro 7 whose OV requirement is 100,000 may count 60% of the OV requirement from a single leg. They may count up to 30% of the OV requirement from a second leg, and at least 10% must come from a third-leg or third leg equivalent (a combination of multiple legs). If a distributor has only three legs, they must have at least 10% and no more than 60% of the OV requirement in each leg.

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_ 04 GENERATIONAL MATCHING BONUS (paid monthly) Not only do you earn your own Unilevel Commissions, but once you achieve the rank of PRO 3, you also earn a 10% match of your personally-enrolled Distributors’ Unilevel Commissions. But that is not all. You also earn a 5% match of your 2nd, 3rd, 4th, and 5th generation’s Unilevel Commissions. GENERATIONS: 1st generation: any personally enrolled Distributors (downline) 2nd generation: any personally enrolled Distributors (downline) that are enrolled by your 1st generation Distributors 3rd generation: any personally enrolled Distributors (downline) that are enrolled by your 2nd generation Distributors 4th generation: any personally enrolled Distributors (downline) that are enrolled by your 3rd generation Distributors 5th generation: any personally enrolled Distributors (downline) that are enrolled by your 4th generation Distributors

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