Compensation by pengxuebo

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									 Pre-Paid Legal Services®, Inc. • $10 Enrollment Fee • Effective August 6, 2004



  Compensation
                                                                                                                                                                           Executive
 $16 Standard Plan                                                                                                                                                         Director
                                                                                                                                     Director
                                                                                                                                                                            Reach Executive
                                                                                                                                                                            Director when you
                                                                                              Manager                                 Achieve Director                      have 3 legs with an
                                                                                                                                      status when you have                  active Director in each
                                                                                                                                      3 legs with a Manager
                                                        Senior                                 Achieve Manager                        or above in each leg,
                                                                                                                                                                            leg & 75 membership
                                                                                                                                                                            sales in one month.
                                                        Associate                              status when you have                   OR you personally sell
                                                                                               3 legs with a Senior
                Associate                                                                      Associate or above in
                                                                                                                                      250 memberships,
                                                                                                                                      OR you and your
                                                                                                                                                                            You may count
                                                                                                                                                                            personal sales & up to
                                                        You become a                           each one & you attend                  organization sell 250                 25 sales per leg
                 Receive advance                        Senior Associate                       a Fast Start Training                  memberships, with no                  containing an active
                 commissions starting                   after you make                         Class** OR you and                     more than 200                         Director OR person-
                 with your first sale...                3 personal sales and                   your organization sell                 memberships from                      ally sell 75 member-
                 when you meet                          have 1 new recruit                     100 PPL member-                        1 leg.                                ships each month.
                                                                                               ships.
                 the Fast Start                         OR make 5 personal                                                            Qualified Directors will              You qualify in one month &
                 qualification of                       sales.                                 **It’s to your advantage to            receive Breakaway Bonuses             receive your bonus on the
                 3 personal sales                                                              attend a Fast Start Training           on up to 6 generations of             next month’s business.
                                                        OR you and your                                                               qualified Breakaway
                 and 1 new recruit                                                             Class immediately after
                                                                                                                                      Directors!
                 OR 5 personal sales                    organization sell 50                   signing as an Associate.
                                                        PPL memberships.                                                              (See Docs on Demand
                 within 15 days of                                                                                                    #51380 for details.)
                 attending your Fast
                 Start training*.

                  $46.14                                 $61.53                                $76.91                                  $92.29                               $112.29
Personal
   Sales
Advances

               With Team Override Advances, when a member of your team at the level shown below at left makes a sale, you are paid the corresponding amount shown below.
    Team
 Override
Advances
                Director                                   Ex: If you’re at
                                                           Manager level & a
                                                                                                                                                                                  $20.00+
                                                           member of your
                Manager                                    team at Associate
                                                           level makes a
                                                                                                                                              $15.38                            When you reach
                                                                                                                                                                                ED, you’re paid
                                                           sale, you receive                                                                                                    $20.00 IN
                Senior AA                                  $32.70!
                                                                                                       $15.38                                 $30.76                            ADDITION to
                                                                                                                                                                                bonus advances
                                                                                                                                                                                you receive for
                AA                                             $15.38                                  $32.70                                 $46.14                            all other levels!

              * Recruits must be “Fast Start” Associates rather than $65 Track Associates. Associates on the $65 Track and Fast Start Associates who do not meet Fast Start requirements will receive as-earned
              commissions on sales 1-3 and advance commissions thereafter. Fast Start Associates have 30 days from the effective date of their Associate Agreement to attend a Fast Start to Success Training and
              an additional 15 days after the training to meet their qualification requirements. NOTE: $65 Track Associates must advance through the compensation plan through organizational membership sales
              requirements as shown above. • Commissions are paid only when a membership sale is made. • Commission amounts shown above represent advances. If a membership cancels during the advance
              period, you will be charged back against future commission advances.• You will be charged a $35 Non-Taken Fee (in addition to the chargeback amount) for memberships on which money is not
              collected. • This Compensation Plan is subject to change at any time without notice and is subject to all PPLSI Policies and Procedures.



Executive Director Levels                                                                                  $0.31
                                                                                                 $0.31 Platinum
                                                                                        $0.31
                                                                                              Platinum 7
 To reach the Bronze level and above, you must be an
 Executive Director and meet the requirements below:                           $0.31
                                                                      $0.31          Platinum 6
                                                             $0.31          Platinum 5
                                                     $1.23         Platinum 4
                                          $2.46 Platinum Platinum 3
     Team Override           $3.08
                                      Gold                 2
          Advance $4.31
                                  Silver
   Personal   Bronze
      Sales
  Advances    $116.60 $119.68 $122.14 $123.37 $123.68 $123.99 $124.30 $124.61 $124.92 $125.23
              1 Executive         2 Executive         3 Executive         4 Executive         5 Executive         6 Executive         7 Executive         8 Executive         9 Executive         10 Executive
              Director Leg        Director Legs       Director Legs       Director Legs       Director Legs       Director Legs       Director Legs       Director Legs       Director Legs       Director Legs
              or 150              or 200              or 250              or 300              or 350              or 400              or 450              or 500              or 550              or 600
              Personal            Personal            Personal            Personal            Personal            Personal            Personal            Personal            Personal            Personal Sales
              Sales               Sales               Sales               Sales               Sales               Sales               Sales               Sales               Sales



                                         Making a Living & Making a Difference                                                                                                            COMP.16 • 51380 • (8.04)
                    How the Pre-Paid Legal
                                   Compensation Plan Works
                                   When you submit a new
                                   membership, you receive a                                            If a membership cancels, you’ll incur a
                                    commission advance                                                  commission chargeback
                                    Whether you are on the 1-Year Earnings Plan or
                                                                                                        You’ll receive “advance” commissions when you make a
                                    3-Year Earnings Plan is up to you. You may choose your
                                                                                                        membership sale. You’ll “earn” commissions as the
                                    method of receiving compensation when you apply to be
                                                                                                        member pays for his or her membership each month.
                                    an Associate. You also have the option of changing your
                                                                                                        Commissions you receive during the advance period will
                                    payment method up to once per year by calling Marketing
                                                                                                        not actually “earn out” until the end of the advance period
                                    Services at (580) 436-7424.
                                                                                                        (end of year one under the 1-Year Earnings Plan and end
                                                                                                        of year three under the 3-Year Earnings Plan).
                                    The advance amount you receive is the same under both
                                    options, but your earnings and chargeback amounts will
                                                                                                        If the member cancels during the advance period, you will
                                    differ between the two as shown below.
                                                                                                        be “charged back” any remaining balance of the amount
                                                                                                        you were advanced when you sold the membership.
                                   With each membership payment,                                        • Under the 1-Year Earnings Plan, 100% of the
                                   you are credited with                                                  unearned advance on cancelled memberships will be
                                                                                                          deducted from your future commission advances.
                                   commission earnings                                                  • Under the 3-Year Earnings Plan, 50% of the
                                    What’s the difference between “advances” and “earnings”?              unearned advance on memberships will be deducted
How often will I get paid?          When you sell a membership and are advanced the amount                from your future commission advances, and the
Commissions are paid daily          shown on the reverse, it creates a debit balance that is              remaining 50% will remain in your debit balance
via direct deposit with a                                                                                 (if at least one membership payment has been made).
                                    reduced as monthly membership payments are made by the
minimum of $25, or once
weekly by check at $50 cash         member. You earn the 1-year advance at 1/12th (or the 3-            If the member cancels after the 12th monthly payment
accrued if you have                 year advance at 1/36th) of the amount shown each month              (on the 1-Year Earnings Plan) or the 36th monthly
submitted a processable             as membership fees are paid. Earnings are first applied to          payment (on the 3-Year Plan), you will not be charged
membership during the               any outstanding debit balance and are payable only after all        back because you will have fully earned your advance
month. If you are not writing       sums advanced have been earned.                                     amount.
personal business, monthly
checks are directly deposited
                                    What you will earn:                                         Chargeback Amounts ($26 Expanded Plan; Senior Associate level)
or mailed at month-end if
you have accrued $150.              The amounts shown on the compensation plan represent                     1-Yr Earnings Plan    3-Yr Earnings Plan
                                    a 1- or 3 year Personal Sales Advance as shown on the                    (100% Chargeback)     (50% Chargeback)
                                                                                                             Cancels after payment Cancels after payment
How will Override                   reverse. If you’re at the Senior Associate level and sell a
                                                                                                             0 $100.00             0 $100.00
Advances pay out if an
Associate in my downline is
                                    $26 Expanded Plan membership, you’ll be advanced $100,                   1 $91.67              1 $48.61
set up on a different               which represents your earnings over a period                             2 $83.33              2 $47.22
Earnings Plan than I am?            of 12 months if you are on the 1-Year                                    3 $75.00              3 $45.83
Overrides will pay according        Earnings Plan. If you are marketing the $26                              4 $66.67              4 $44.44
to the Earnings Plan you have                                                                                5 $58.33              5 $43.06
selected, not the one your
                                    expanded plan, you’ll earn $8.33 per month.
                                                                                                                       6    $50.00        6    $41.67
downline selects.                     Advance: $100 ÷ 12 months                                                        7    $41.67        7    $40.28
                                        = Earnings: $8.33/month                                                        8    $33.33        8    $38.89
How often can I change my                                                                                              9    $25.00        9    $37.50
Earnings Plan?                      Cumulative earnings after monthly
                                                                                                                       10   $16.67        10   $36.11
You may change from the             membership payments are made by member:                                            11   $8.33         11   $34.72
1-Year Earnings Plan to the         1-Year Earnings Plan         3-Year Earnings Plan                                  12   —             12   $33.33
3-Year Plan, or vice versa, once                                                                                       13   —             13   $31.94
                                    Payments Received            Payments Received              Example reflects the
per twelve month period by                                                                      $26 Expanded Plan      14   —             14   $30.56
calling Marketing Services at       1 $8.33                      1 $2.78         19 $52.78
                                                                                                                       15   —             15   $29.17
(580) 436-7424.                     2 $16.67                     2 $5.56         20 $55.56
                                                                                                                       16   —             16   $27.78
                                    3 $25.00                     3 $8.33         21 $58.33                             17   —             17   $26.39
Are commissions paid if a           4 $33.33                     4 $11.11        22 $61.11                             18   —             18   $25.00
member cancels and wants
to reinstate?                       5 $41.67                     5 $13.89        23 $63.89                             19   —             19   $23.61
Yes, if the membership has          6 $50.00                     6 $16.67        24 $66.67                             20   —             20   $22.22
                                                                 7 $19.44        25 $69.45                             21   —             21   $20.83
been cancelled longer than 90       7 $58.33
                                                                                                                       22   —             22   $19.44
days, the new writing agent         8 $66.67                     8 $22.22        26 $72.22                             23   —             23   $18.06
will be paid a reinstatement        9 $75.00                     9 $25.00        27 $75.00                             24   —             24   $16.67
commission of $30-$40               10 $83.33                    10 $27.78       28 $77.78                             25   —             25   $15.28
(depending on the member’s                                                                                             26   —             26   $13.89
                                    11 $91.67                    11 $30.56       29 $80.56
original plan rate).                                                                                                   27   —             27   $12.50
                                    12 $100.00                   12 $33.33       30 $83.33
                                                                                                                       28   —             28   $11.11
If the membership has been                                       13 $36.11       31 $86.11
                                                                                                                       29   —             29   $9.72
cancelled for five (5) years or     Please see the Renewal
                                                                 14 $38.89       32 $88.89                             30   —             30   $8.33
longer, the new writing agent       Income document for          15 $41.67       33 $91.67                             31   —             31   $6.94
                                    complete details on
will be paid advance                earnings after the initial   16 $44.44       34 $94.45                             32   —             32   $5.56
commissions on the sale as a        1- or 3-Year Advance         17 $47.22       35 $97.22                             33   —             33   $4.17
new membership.                     period.
                                                                 18 $50.00       36 $100.00                            34   —             34   $2.78
                                                                                                                       35   —             35   $1.39
                                                                                                                       36   —             36   —
     P r e - P a i d L e g a l S e r v i c e s ®, I n c . • $ 1 6 S t a n d a r d F a m i l y P l a n • E f f e c t i v e A p r i l 1 , 2 0 0 3



DIRECTOR & EXECUTIVE DIRECTOR                                                                                                              $16
Breakaway Bonuses
                                                                                                                                          Standard
                                                                                                                                        Family Plan




 Director                                                                           Executive Director
 Breakaway Bonus                                                                    Breakaway Bonus
 Who qualifies for this bonus?                                                      Who qualifies for this bonus?
 Directors who have at least 15 organizational                                      You must be an Executive Director and have an
 sales with no more than 5 sales in any leg OR                                      Executive Director in your organization to
 Directors with at least 15 personal sales qualify.                                 qualify.

 You qualify in one month and receive the
 bonus on the next month’s business.
                                                                                    You qualify in one month and receive the
 Amounts below are advanced through 6                                               bonus on the next month’s business.
 Director “Generations”:

                                                                                    Amounts below are advanced through 7
Example                                     $0.62        Director6                  Executive Director “Generations”:

    Qualified
   Director4              $1.85                                                                               Executive Director            $1.85
                          Director          $1.23        Director5                                                                          ED Breakaway3
                          Breakaway
   Senior
  Associate                                 $1.85        Director4
                                                                                                                              ED            $3.08
                                                                                                                                            ED Breakaway2
   Non-Qualified
     Director                               $2.46        Director3
                                                                                                    ED                                    ED
    Qualified             $2.46
   Director     3
                          Director          $3.08        Director2
                          Breakaway
   Senior                                                                                                 $6.15
  Associate                                                                                   ED Breakaway1                ED
                                            $3.69        Director1
    Qualified
   Director 2             $3.08                                                                     $20.00
                          Director                                                                                     ED
                          Breakaway                                                 ED Bonus Override
   Non-Qualified
     Director
                                                                                              Sale is made here                                   = No Generation
   Associate
                                                                                                                                                  = 1st Generation

    Qualified                                                                                                                                     = 2nd Generation
   Director1              $3.69                                                                      $0.31        Executive
                                                                                                                  Director7
                          Director
                          Breakaway                                                                                                               = 3rd Generation
    Senior                                                                                                        Executive
   Associate                                                                                         $0.31        Director6
                          $15.38                                                                                                              An ED
   Director               Director
                          Bonus Override                                                             $0.62        Executive                   Generation
                                                                                                                  Director5
                                                                                                                                              begins with your
   Manager                Sale is made here                                                                                                   first ED and
                                                                                                     $0.62        Executive                   continues down
                                                                                                                  Director4
                                                                                                                                              to but does not
                                                                                                                  Executive                   include your
 PLUS! Platinum Breakaway Bonuses!                                                                   $1.85        Director3                   next ED.
 Receive $0.62 on all memberships through 3 Generations of
 Platinum Executive Directors. Applicable to Associates at                                           $3.08        Executive
 Platinum or above at the time of the membership sale.                                                            Director2

                                                                                                     $6.15        Executive
 Please Note:                                                                                                     Director1
 All amounts listed represent one-year advance amounts. If a membership
 cancels before the end of the advance period, chargebacks will occur.

                                                                                                                                                        51380 • (3.03)
Pre-Paid Legal Services®, Inc. • $16 Standard Plan • Effective August 4, 2003



  Renewal Income                                                                                                   $16 Standard Plan


1-Year Earnings Plan
What are renewals?                                                                                                                                               Annual
Renewals are amounts you earn* on memberships that             Persistency          Levels          Up to 55%   56-65%      66-75%      76-85%     over 85%     Earnings
“renew” or continue paying after the first 12 months of
the life of the membership. Since you receive a                 Annual Renewal Amounts based on the 1-Year Earnings Plan
commission advance amount representing your
commissions for the first 12 months of payments made,            Associate                         $ 2.90       $ 5.79     $ 8.69      $ 11.59     $ 14.49       $ 15.38
all additional payments made by the member after month           Senior Associate                    0.97        1.93        2.90        3.86       4.83              5.13
12 represent renewal payments which you earn.
The persistency of your business and the business of             Manager                             0.97        1.93        2.90        3.86       4.83              5.13
your team–calculated on a month by month basis– is               Director                            0.97        1.93        2.90        3.86       4.83              5.13
the key element in renewal income. Your personal and
                                                                 Executive Director                  1.26        2.51        3.77        5.02       6.28              6.67
organizational persistency is calculated separately.
                                                                 Bronze ED                           0.27        0.54        0.81        1.08       1.35              1.44
When will I be paid?                                             Silver ED                           0.19        0.39        0.58        0.77       0.97              1.03
You will begin receiving renewal earnings from residuals
at the beginning of month 16—including all renewal               Gold ED                             0.15        0.31        0.46        0.62       0.77              0.82
payments made by the member prior to the end of month            Platinum ED                         0.08        0.15        0.23        0.31       0.39              0.41
15. Renewal earnings will first be applied to any
                                                                 Platinum 2                          0.02        0.04        0.06        0.08       0.10              0.10
outstanding debit balance you may have or be paid to
you (if no debit balance exists).                                Platinum 3                          0.02        0.04        0.06        0.08       0.10              0.10
                                                                 Platinum 4                          0.02        0.04        0.06        0.08       0.10              0.10
So how exactly does all this work?
Say, for example, you personally sell 20 memberships             Platinum 5                          0.02        0.04        0.06        0.08       0.10              0.10
and your team sells 100 memberships in August of                 Platinum 6                          0.02        0.04        0.06        0.08       0.10              0.10
2003. Persistency is established on the first 12 months
                                                                 Platinum 7                          0.02        0.04        0.06        0.08       0.10              0.10
of the membership but cannot be determined until the
end of month 15 because of the 45-day pre-cancel                 Director Breakaway1                 0.23        0.46        0.70        0.93       1.16              1.23
window. At the end of month 15 (which would be the               Director Breakaway2                 0.19        0.39        0.58        0.77       0.97              1.03
end of October, 2004 in this example), your persistency
levels for the block of memberships you and your team            Director Breakaway3                 0.15        0.31        0.46        0.62       0.77              0.82
sold in August 2003 will be established. Using this              Director Breakaway4                 0.12        0.23        0.35        0.46       0.58              0.62
scenario, say 14 out of the original 20 personal sales
are still active or made 12 payments before cancelling           Director Breakaway5                 0.08        0.15        0.23        0.31       0.39              0.41
and 62 out of the original 100 memberships your team             Director Breakaway6                 0.04        0.08        0.12        0.15       0.19              0.21
sold are still active or made 12 payments before
                                                                 ED Breakaway1                       0.39        0.77        1.16        1.55       1.93              2.05
cancelling as of month 15 (October 2004).
                                                                 ED Breakaway2                       0.19        0.39        0.58        0.77       0.97              1.03
    Your personal persistency                                    ED Breakaway3                       0.12        0.23        0.35        0.46       0.58              0.62
    would be 70%
                                                                 ED Breakaway4                       0.04        0.08        0.12        0.15       0.19              0.21
    Your organizational persistency                              ED Breakaway5                       0.04        0.08        0.12        0.15       0.19              0.21
    would be 62%
                                                                 ED Breakaway6                       0.02        0.04        0.06        0.08       0.10              0.10
The renewal amount you’ll earn depends on the                    ED Breakaway7                       0.02        0.04        0.06        0.08       0.10              0.10
persistency levels established at the end of month 15            Platinum Generation1                0.04        0.08        0.12        0.15       0.19              0.21
AND on the level you were at when you originally
received personal or override commissions on those               Platinum Generation2                0.04        0.08        0.12        0.15       0.19              0.21
sales.                                                           Platinum Generation3                0.04        0.08        0.12        0.15       0.19              0.21

For Example:                                                  * ALL renewal amounts shown are first applied to any debit balance you might have.
Continuing with the above numbers of 20 personal
membership sales and 100 organizational membership
sales:                                                        3-Year Earnings Plan
   Personal Persistency 14/20 = 70%                                What are renewals?
   If your 14 personal sales were made at Senior                   On the 3-Year Earnings Plan, renewals are amounts you earn* on memberships that “renew” or continue
   Associate level, you would receive renewal amounts              paying after the first 36 months of the life of the membership. Since you receive a commission advance
   annually shown in the 66-75% column for Associate               amount representing your commissions for the first 36 months of payments made, all additional payments
   PLUS Sr. Associate Levels.                                      made by the member after month 36 represent renewal payments which you earn.

   Organizational Persistency 62/100 = 62%                         When will I be paid?
   If you originally received override commissions at              You will begin receiving earnings for renewals at the beginning of month 37 and again every month as long as
   Senior Associate level on 20 out of the 62 remaining            that membership remains active. Renewal earnings will first be applied to any outstanding debit balance you
   organizational memberships and at manager level on              may have or be paid to you (if no debit balance exists).
   42 of them, you would receive renewal amounts
   annually in the 56-65% column for Senior Associate              So how exactly does all this work?
   level for 20 and Manager override renewals for 42.              Say, for example, you personally sell 20 memberships at Senior Associate level in August of 2003. Using this
                                                                   scenario, say 14 out of the original 20 personal sales are active and make a payment in the 37th month.
That persistency rate will be locked in for the life of the        You will receive renewal earnings with the members’ 37th monthly payment at Senior Associate Level as
membership and will be established in exactly the same             reflected in the far right column above.
way for memberships you sell each month. You literally
establish your future income on a month by month basis             What about organizational memberships?
by what you do TODAY.                                              Using the same example above, say you were a Manager and that your Senior Associate made the above
                                                                   sales. You would receive renewal earnings at the Manager override level when the members make their 37th
                                                                   monthly payment.
                                                                                                                                                              51380d • (8.03)

								
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