Your Central, Promoting and Pick-Up Credits



Your Central, Promoting, Pick-Up Credits and Performance Account

These topics are all interrelated and quite confusing to the new Consultant. The SuccessPlan and Policies & Procedures Manual will serve as a further reference to this document but unfortunately the logic of these topics is difficult to grasp from just reading the Manual.

Let’s start looking at this first from the prospective that you are a Consultant. Arbonne pays you a commission or override based on the Retail Volume (RV) that you and your team accumulate during a month. However the actual 4% commission is based on the Override Volume (OV) which is 65% of RV (in other words – Arbonne pay you based on the wholesale value). For the purposes of checking qualification for promotion to the next management title, Arbonne credits your account with the full RV. The RV requirements necessary to qualify you to promote to District Manager are defined at the bottom of page 5 of the SuccessPlan and Policies & Procedures Manual. Since these qualifications in themselves are quite confusing you may also want to reference the document created by Ken Streit titled, Requirements to Become a District Manger.

Now let’s assume that you are a District Manager (DM) and no one in your District has yet promoted out below you to also become a DM. At this point, everyone in your District is considered to be in your Central District and you are receiving full RV credit for everyone in your Central District. The definition on page 8 of the Manual defines a Central District as: “Your Central District is comprised of you, your personally-sponsored Independent Consultants and all other Consultants sponsored by them.”

When you are a DM and a member of your team promotes out to become a DM below you, you become an Executive District Manager (EDM). However, this new DM and his/her team are no longer a part of your Central District. They have broken away from you to form their own District (and their webstat detail will also be broken out or removed from you webstats). Therefore, as the Successplan Summary commission chart at the bottom of page 6 indicates, you as an EDM will now be paid 8% on what is left of your own Central District and also 8% on the first Generation DM below you. Or course this amounts to 8% in either case. However, if before you promote to Area Manager, that first Generation DM has a person on his/her team that also promotes to a DM, then you will be 2 generations deep with DMs. As the Successplan Summary chart indicates, you will be paid a commission of 2% on that 2nd generation. And likewise, you will receive 1% on a 3rd generation.

BTW, the definition of Generations on page 8 is correct. The definition of a Generation in the back of the Manual is wrong. The definition in the back actually defines a Level not a Generation. This is something that is confusing and hopefully Arbonne will some day clean up.

Anyway, when you promote to Area Manager you get back all of the promoted out DMs and they now become part of your Central Area. Their webstat detail now also becomes available for you to view in your own webstats.

If you are not yet a DM and you have a person on your team who promotes out to be a DM, they promote out to have their own Central District and are no longer a part of your Central as a Consultant. You will still receive a 4% override on their business but this means that you will no longer be able to receive RV credit toward your DM promotion from their business. This is not all bad because Arbonne realizes two things. First, it was your effort that got this person to be a DM so you should be rewarded for your effort. And two, you should not be penalized for the loss of a leg of your business that you still need to depend on to promote to DM yourself. Therefore, Arbonne provides assistance in the form of Pick-Up credits.

As you can see from the District Manager Qualifications at the bottom of page 5, Arbonne provides a “Permanent Pick-Up Credit of $650 ($815.50 in Canada) for one or more promoted, paid as District Managers, 1st Generation, each month.” This means that you will continue to receive this credit in the form of RV each month (this is the permanent part), until you promote, to help you toward your own qualification for DM promotion. You will only receive one of these credits even if more than one DM has promoted out below you. This formula is actually a very good idea because it encourages you to build your organization wide instead of just deep. There is a similar system of Pick-Up Credits available to us as an Area Manager (AM), Regional Vice President (RVP) and National Vice President (NVP).

As a manager (DM, AM, RVP or NVP), Arbonne maintains a Performance Account of your RV. Each month all new Central RV is added to your Performance Account balance and each month Arbonne deducts from your Performance Account the amount necessary to maintain your management title. This then acts like a bank account of RV. If you are short a month and don’t have enough RV to maintain your manager title, you can dip into your Performance Account for what you are short. Therefore, you have a buffer against losing your management title if you have a slow month. As you can see from the explanation in the middle of page 7, Arbonne gives you further assistance to maintain you new management title when you first promote.

For example, when you first become an Area Manager you may have a difficult time maintaining the RV that you will need to keep your Area. Therefore, Arbonne does not withdraw any RV from your Performance Account for the first 2 months of your new promotion. This then is a time to help you build a Performance Account buffer to weather any initial slow months. Arbonne also provides you with another 2-month building period whenever someone in your Central promotes out to your same management title. This is extremely helpful, because you will be losing their Central RV when they promote.

For further research and reference, please also see Arbonne’s “SuccessPlan Presentation”. Go to the Arbonne home page, press on the Company / Presentations / SuccessPlan Presentation. There is also an excellent Arbonne University module title, SuccessPlan Basics that should be viewed.

Although this is all very confusing and complex, it is also an ingenious system to encourage your success. Arbonne has done an incredible job designing your compensation program. Be sure your Successline understands and appreciates it.

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