Glossary of Terms
ACTIVE: An Independent Business Associate is considered “Basic” Active” in any month that he/she maintains the minimum requirement of at least $150 in Personal Bonus Value (PBV) or that subscribe to a $75 PBV monthly Autoship order. Or, as an option, you will be considered “Fully” active by creating $200 PBV or by subscribing to a $150 PBV monthly Autoship.
APPLICATION AND/OR AGREEMENT FORM: This is a legal binding agreement between you and the Company, which covers your rights, duties, and responsibilities and those of the Company. This is vital and necessary information. The Policies & Procedures manual is an extension of this Agreement and should be read carefully.
BONUS: Not to be confused with Commissions. This is the remuneration that is based on the percentage of product sales volume of others downline of the payee in accordance with the respective provisions of the Compensation Plan.
BONUS QUALIFIED: You are Bonus Qualified when you are an Independent Business Associate in good standing and have met the minimum personal sales requirements for the applicable pay period.
BONUS VALUE: The assigned dollar value for qualification and calculation of bonuses on the products purchased. Every Synterra Health product that is purchased carries an assigned Bonus Value (BV) applicable to each particular product based wholesale price of 75% of suggested retail. However, occasionally certain products may be assigned a Bonus Value that varies from the assigned Bonus Value due low profit margins or special promotions. The accumulated Bonus Value of all products purchased by you and your retail customers during a given pay period are combined to determine your “Personal Bonus Value” (PBV) for that pay period.
BUSINESS KIT: Tools, forms, tapes, brochures, manuals and application forms, relative to the Synterra Health business opportunity necessary to begin your new business.
COMMISSION: Although it is profit, the difference in the amount of money that an Independent Business Associate earns when a product is sold at retail but purchased at wholesale is Commission. This should not to be mistaken as a Bonus. Some companies call a bonus a commission. It is important to understand the difference.
COMPANY: The Synterra Health corporate or home office.
COMPENSATION PLAN: (Sometimes called the “Marketing Plan”) The official set of definitions and performance requirements, as published in the Synterra Health Independent Business Associate Manual by which the Independent Business Associates get paid.
COMPRESSION: MegaLevel and Generation Bonuses are earned by and paid to Independent Business Associates that are Active and Qualified at a particular rank. When an Independent Business Associate fails to meet the minimum maintenance requirements for earning bonuses at his or her titled position, the Company's computer searches downline until it finds an Independent Business Associate who is considered active no matter how far downline it has to search. That qualified Independent Business Associate’s personal volume for the MegaLevel plan or group volume for the generation plan then “Compresses” to include all the volume that may have been generated by all non-qualified Independent Business Associates in between to create the next level or generation respectively until it has satisfied its payout requirements with qualified Independent Business Associate levels or Generations. The term “Compression” is used to describe the temporary condition that occurs when an Independent Business Associate fails to meet the maintenance requirements for a particular pay period and the term. Compression does not apply to Enroller Matching Bonuses. (See also “Rollup”)
DIRECT: Refers to an Independent Business Associate that you have personally and directly enrolled. (See “Leg”)
DOWNLINE: Those people directly sponsored by an Independent Business Associate, plus all the people whose line of sponsorship resulted from and came through that Independent Business Associate. Your Downline consists of all Independent Business Associates on your Level 1, Level 2, Level 3, etc, through unlimited depth. (See “Level”)
ENROLL: To sign and submit an Independent Business Associate Application and Agreement form to Synterra Health for the purpose of becoming an Independent Business Associate for the Company.
ENROLLEE: An enrolling or newly enrolled Independent Business Associate.
ENROLLER: The Synterra Health Independent Business Associate, who introduces an Enrollee to the opportunity, explains the program, assists in the enrollment, and provides preliminary training to the Enrollee.
60% RULE: As it pertains to Team Leaders and Directors, no more than 60% Total Group Bonus Value (TGBV) may be applied from any one Leg for the purpose of meeting rank qualification maintenance.
40% RULE: As it pertains to Executives or higher titled people, no more than 40% Total Group Bonus Value (TGBV) may be applied from any one Leg for the purpose of meeting rank qualification maintenance.
FRONT LINE: Refers to all Independent Business Associates that are personally sponsored and/or enrolled (Level 1) by a particular Independent Business Associate or by the Company. (See also “Direct”)
GENEALOGY: The complete set of relationships (as defined by “Levels” and “Legs”) between an Independent Business Associate and his or her upline and Downline. It is the “family tree” of any Independent Business Associate.
GENEALOGY REPORT: A computer printout of your Downline.
I.D. #: The identification number used by the Company to identify each Independent Business Associate for Compensation Plan purposes.
INDEPENDENT BUSINESS ASSOCIATE: The generic name for an independent contractor who has signed an Independent Business Associate Application and Agreement form with the Company, and whose Independent Business Associate Application and Agreement the Company has accepted. Upon acceptance of such Agreement by the Company, an Independent Business Associate is eligible to purchase the Company's products at a wholesale price for resale and can enroll and sponsor other people into their Downline retail Sales Team. An Independent Business Associate is eligible to earn Commissions and Bonuses in accordance with the terms and provisions of the Compensation Plan.
INDIRECT: All Independent Business Associates in your Downline that are not directly enrolled by you. (See also “Downline”).
LEG: Each personally sponsored Independent Business Associate on your first level is part of your total Downline and is a separate “Leg.” You and your entire Sales Team (Downline) are one “Leg” to your sponsor.
LEVEL: The people you personally enroll and/or sponsor are your first level. The ones they enroll and/or sponsor are your second level. The ones your second level sponsors are your third level, etc.
MAINTENANCE: The standard of performance involving an Independent Business Associate that is required for that Independent Business Associate to continue being “Paid As” a particular rank after meeting the initial qualification requirements for that rank.
MARKETING PLAN: In Network Marketing this is also known as the Compensation Plan. It is usually depicted in a graphic manner in a promotional brochure and in detail in the Company's manual.
MEGALEVEL: The part of the Compensation Plan that is based on fixed Sponsorship genealogical relationships, i.e. Override Bonuses.
MULTI-LEVEL MARKETING (MLM): Another name for network marketing. (See “Network Marketing”)
NETWORK MARKETING: A non-storefront type of selling where a manufacturer or its Independent Business Associates (a network marketing company) sells directly to the consumer through a “network” of independent contractors rather than through conventional outlets. Independent Business Associates multiply themselves directly and indirectly by sponsoring other Independent Business Associates and are paid accordingly on multiple levels.
OPPORTUNITY MEETING: A periodic meeting, or gathering of Network Marketing Independent Business Associates for the purpose of introducing and explaining the business opportunities to prospects.
PAID AS: Independent Business Associates that have earned the various title designations according to their sponsoring and sales performance will retain those titles indefinitely even if they do not meet the specified bonus qualifications in a pay period. However, they will be PAID AS the level at which they meet bonus qualifications for the pay period.
PERSONAL BONUS VALUE (PBV): Every Synterra Health product that is purchased carries an assigned “Bonus Value” (BV) usually based on 75% of Suggested Retail Value. However, occasionally a low profit margin product may be assigned a Bonus Value that is lower than 75% so it can be supported by the compensation plan. The accumulated Bonus Value of all products purchased by you and your retail customers during a given pay period are combined to determine your “Personal Bonus Value” (PBV) for that pay period. This PBV is used to calculate bonuses in the Compensation Plan. Unless otherwise specifically noted, Synterra Health BV is 75% of suggested retail price.
PERSONAL GROUP: For purposes of this Compensation Plan, a Personal Group consists of an Independent Business Associate at the top of a Sales Team, and every Independent Business Associate below that person in that Team, through each and every Leg.
POLICIES & PROCEDURES: The governing rules of Synterra Health that define the relationship between the Company and its Independent Business Associates, as well as between Independent Business Associates and other Independent Business Associates. The Policies & Procedures are specifically incorporated into and made a part of the Independent Business Associate’s Agreement, which each Independent Business Associate must sign in order to enroll.
PREFERRED CUSTOMER PROGRAM: Someone who does not want to participate in the Network Marketing opportunity but would like to purchase Synterra Health products at wholesale prices may subscribe to an Autoship and be considered a Preferred Customer.
PROSPECT: A person to whom you want to offer the Synterra Health business opportunity.
QUALIFIED: An Active Independent Business Associate that is qualified to be “Paid As” a particular rank is considered Qualified at that rank. (See “Paid As)
QUALIFIED LEG: A leg that contains at least $300 of Bonus Value somewhere in the depth of the leg is considered to be a Qualified Leg.
RANK: A new title is claimed at each level with increased percentages of bonus participation. You will always carry the title of the highest rank you reach, but are paid at the rank for which you qualify each month.
RECRUITING: Inviting others to join your Team to share the same opportunity.
RENEWAL: Synterra Health Independent Business Associates must renew their Independent Business Associate Agreement each year no later than the anniversary date of their joining the Company. If an Independent Business Associate does not renew their relationship with Synterra Health, they will be dropped from the computer files and any sponsored or enrolled Independent Business Associates will be moved up to the next active Independent Business Associate. If they wish to rejoin Synterra Health at a later date, they may not reclaim their previous rank or Downline, but must join at the standard entry level in the program. (See “Roll-up”)
RETAIL: Sales of the Synterra Health products to the end users of those products. Retail sales are the foundation of your Synterra Health business, and the ultimate purpose of all other activities within the business, including enrolling, sponsoring, training, etc.
RETAIL COMMISSION: Regardless of your rank, you have the opportunity to purchase and sell products and services and receive a retail commission on all of the Synterra Health products.
ROLL-UP: The permanent form of Compression. When an Independent Business Associate terminates his Independent Business Associate Agreement or does not exercise his yearly renewal, his entire Downline rolls upline to his sponsor or the next qualified person and his name is deleted from the Company records. (See “Compression”).
70% RULE: Seventy per cent (70%) of products obtained from Synterra Health must be retailed or consumed before reorders are made. (See Policies and Procedures)
SALES TEAM: Your Sales Team consists of you and the people that you directly enroll as Independent Business Associate’s, and the people that they enroll as Independent Business Associates, and so on, and so on, and so on. There is no limit to how wide or deep that your Sales Team can grow. (See “Downline” and “Leg”)
SPONSOR: An Independent Business Associate who agrees to be responsible for helping and developing another Independent Business Associate with his business by teaching the new Independent Business Associate how to build the business, and by assisting, encouraging and supporting him. Every Independent Business Associate must be sponsored, either by another Independent Business Associate in good standing with the Company, or by the Company itself. As consideration for being a Sponsor, the Independent Business Associate may earn bonuses based on the PBV of Independent Business Associate’s in their Downline, to the extent that the Sponsor is qualified. It is important to note that in some other Network Marketing companies, the term “Sponsor” may include the act of introducing prospective new Independent Business Associates to the opportunity and helping them sign up as new Independent Business Associates. In Synterra Health this is called “enrolling”. While bonuses may be earned for being a Sponsor, no payment is ever made for recruiting or enrolling. (See “Enroll”).
SUGGESTED RETAIL PRICE: The retail price as suggested by the Company. An Independent Business Associate may sell the product or service for whatever price he or she chooses.
TOTAL GROUP BONUS VALUE (TGBV): The total Personal Bonus Value of all your downline IBA’s though unlimited depth is totaled to determine your Total Group Bonus Value. This BV is used to calculate various forms of qualification for earning new rank promotions and in rank maintenance in various phases of the Compensation Plan.
UNLIMITED DEPTH: As used in this Compensation Plan, the term “unlimited depth” describes any number of levels in depth that is not blocked by another Independent Business Associate of equal or higher rank.
UPLINE: The term “upline” refers to that portion of either your Enroller or Sponsor genealogy that precedes you. Your upline consists of the Independent Business Associate who is your Enroller and/or Sponsor, and his Enroller and/or Sponsor, and his Enroller and/or Sponsor, etc., all the way to the Company. (See also “Enroller” and “Sponsor”)