HOW TO CREATE

1

• HOW TO CREATE
• A NEW
• COMPENSATION PLAN

2
How to Create a New Compensation Plan

• Distributor Roles
• Sell product and recruit new Distributors.
  Everybody in the organization has the role of
  Distributor.
• Manager Roles
• When Distributors sponsor new Distributors, they
  have to teach them how to sell and recruit.
  Therefore, in a small way, they assume the role
  of Manager.
• Mentors their recruit and helps them to mentor
  new recruits.
• Managers positions also represent a transition
  from part time to almost a full time commitment.
• Sets the example Do what I do and you will
  succeed. A Manager continues to be a
  Distributor.

3
How to Create a New Compensation Plan

• Leader Roles
• When a Manager succeeds in nurturing new Managers
  in his/her organization, they assume a new role
  one of helping new downline Managers succeed with
  their own group and in turn become Leaders.
• A Leader continues to be a Distributor and a
  Manager.

4
How to Create a New Compensation Plan

• Steps to design a career path for Distributors
• Design the top position.
• Design the beginning steps of the career path.
• Design the Manager position.
• Create the leadership steps of the career path.

5
How to Create a New Compensation Plan

• The top position
• Should not be easy to achieve.
• We must define what top leaders should do.
• It should take several years to achieve.

6
How to Create a New Compensation Plan

• The Manager position
• We must define what Managers should do
• How many Distributors they should enroll.
• What should be their average Organizational
  Volume.
• The beginning steps
• Need to be defined and as a rule the first one or
  two steps should be relatively easy and then
  build gradually.

7

• Matols New 10Plus Plan

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Why Change Current Plan

• P.O.W.E.R. Bonus doesnt work originally
  designed to benefit new Distributors.
• Encourages wide and shallow organization.
• Geared more toward a retail business.
• Not enough steps to grow into higher titles.
• Achieving a new title is too easy.
• To become EFA is not challenging enough which
  devalues the title.
• Leadership Bonus does not benefit true leaders
  only shares are not fair.

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Problem

• P.O.W.E.R. Bonus was meant to benefit newer
  Distributors while paying the uplines. In reality
  it does not happen.

Solution

• New P.O.W.E.R. Bonus.

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The P.O.W.E.R. BONUS

• One time incentive paid to qualified enrollers
  on volume generated by newly enrolled
  Distributors.
• Qualified enrollers will receive a 60 Power
  Bonus on 50 of the total volume generated by
  newly enrolled Distributors in their signup month
  to a maximum of 300 CP.
• On the remaining 50 of volume up to 300 CP and
  all volume above 300 CP, regular Royalties will
  be paid to the qualified uplines starting with
  the new Distributors sponsor.
• In order to qualify for this bonus, the enroller
  must be an Active Distributor or ROQ Supervisor
  or higher in the same calendar month in which
  their new Distributors are enrolled.
• No other Bonuses or Royalties will be paid on
  volume paid on the Power Bonus.

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Problem

• Pay out structure encourages wide and shallow
  organization.

Solution

• New Payout to encourage building deep.

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Building Shallow
YOU
13
Building Deep
YOU
14
Problem

• Geared more toward a retail business.

Solution

• Change from a retail philosophy to a Multilevel
  Marketing concept OF BUILDING DEEP.

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Problem

• Not enough steps to grow in to higher titles.

Solution

• Added new titles.

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Matols New 10Plus Plan
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Matols New 10Plus Plan
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Matols New 10Plus Plan
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Matols New 10Plus Plan
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Matols New 10Plus Plan
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Matols New 10Plus Plan
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Matols New 10Plus Plan
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Matols New 10Plus Plan
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Compression
New Plan
Old Plan
259 CP 259 CP 259 CP 259 CP 259 CP 259 CP 259
CP 259 CP
259 CP 259 CP 259 CP 259 CP 259 CP 259 CP 259
CP 259 CP
G1 G1 G1 G1 G1 G1 G1 G1
G1 G2 G3 G4 G5 G6

NO PAYOUT
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Problem

• Leadership Bonus not in the true spirit of
  benefiting the leaders shares are not fair.

Solution

• Change the Leadership Bonus to reflect what needs
  to be more focused on New Bonuses.

26
The Breakaway Bonus
Distributors who breakaway to new titles and are
Paid as their new title or higher the following
calendar month will earn shares of the Breakaway
Bonus. The number of shares escalates depending
on the new titles achieved as follows

• Supervisor 1 share
• Bronze Key Supervisor 2 shares
• Silver Key Supervisor 3 shares
• Gold Key Supervisor 4 shares
• Field Advisor 5 shares
• Executive Field Advisor 6 shares
• Master Field Advisor 7 shares
• The Breakaway Bonus is calculated on 2 of
  Matols total monthly Commissionable Point Volume
  and paid on a pro-rated basis.

27
The Performance Bonus

• Distributors must achieve the title of Supervisor
  or higher.
• Each time they enroll a new Distributor who
  achieves the title of Supervisor or higher in
  their sign up month, they will earn 1 share of
  the Performance Bonus.
• Enroller must be ROQ in the same calendar month
  in which new Distributors are enrolled.
• The Performance Bonus is calculated on 2 of
  Matols total monthly Commissionable Point Volume
  and paid on a pro-rated basis.

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Matol Star Bonus

• Field, Executive Field and Master Field Advisors
  are eligible to participate in the monthly Matol
  Star Bonus by fulfilling the following
  requirements in the same calendar month
• Qualify to be Paid as as their title.
• Consistently increase their Organizational Volume
  (OV) within level 1 to 6 based on any previous
  calendar month in which they qualified for the
  Star Bonus.
• Organize and host one registered verifiable
  Matol meeting.
• The Matol Star Bonus is calculated on 2 of
  Matols total monthly Commissionable Point Volume
  and paid on a pro-rated basis.

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Annual Requalification Volume
1,400 CP (PGV)
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Transition Period

• The new 10Plus Plan will be implemented as of
  January 1, 2007.
• Distributors registered prior to January 1, 2007
  are considered current Distributors.
• Current Distributors with the title of Silver Key
  or higher have the option to qualify according to
  the previous compensation plan requirements for
  an indefinite period of time.
• To qualify under the previous plan all current
  Distributors regardless of their titles need to
  qualify as a Paid as Silver Key Supervisor or
  higher. They will be paid royalties under the new
  plan but cannot participate in the Matol Star
  Bonus unless they qualify under the new 10Plus
  Plan.
• Distributors who choose to qualify as a Paid as
  Supervisor need to qualify under the new 10Plus
  Plan requirements.
• All Distributors who register as of January 1,
  2007 will fall under the new 10Plus Plan.
• The calendar month of December, 2006 will be
  considered the base month for all current
  Distributors to set their Paid as title for
  their future qualification requirements
  throughout the transition period.

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Transition Period

• The calendar month of December, 2006 will be
  considered the base month for all current
  Distributors to set their Paid as title for
  their future qualification requirements
  throughout the transition period.
• Example A current Distributor with the title of
  Gold Key Supervisor qualifies as a Paid as Gold
  Key Supervisor in the base month of December,
  2006. Starting in January, 2007, and each month
  thereafter they can choose to qualify as a Paid
  as Gold Key Supervisor for an indefinite period
  as long as they do not go below that Paid as
  title.

(PP) Previous Plan - (NP) New 10Plus Plan
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Transition Period

• If in any given calendar month after January 1,
  2007 a current Distributor qualifies at any Paid
  as title below the base month of December, 2006,
  they must then qualify under the new 10Plus Plan
  to achieve any higher Paid as title.

(PP) Previous Plan - (NP) New 10Plus Plan
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Transition Period

• If in any given calendar month after January 1,
  2007 a current Distributor achieves a Paid as
  title under the new plan equal to or higher than
  their lowest Paid as title under the previous
  plan during the transition period, they will
  automatically fall under the new 10Plus Plan from
  then on.

(PP) Previous Plan - (NP) New 10Plus Plan
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• Matols New 10Plus Plan