wakeupnow compensation guide krystal taylor

Compensation Plan

United States

E!ective March 1, 2014

Income Disclosure Statement available at wakeupnow.com/ids. Avg. IBO earns less than $100/mo.All IBOs must maintain a minimum of 3, 7, or 10 retail customers as applicable

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Table of Contents

Welcome ................................................................................................................. 2Product ......................................................................................................................................2

Customers .............................................................................................................. 4Qualified Preferred Customers ..........................................................................................4

Requirements to Earn Commissions .............................................................. 5Qualified IBO ...........................................................................................................................5Customers and Structures ...................................................................................................5Commission Types .................................................................................................................6

Retail Payouts ........................................................................................................ 7Retail Purchases .....................................................................................................................7Personal Retail Commissions ............................................................................................7Group Retail Commissions ..................................................................................................7Refunds and Charge Backs ................................................................................................8

Team Payouts ........................................................................................................ 9Director Bonus ........................................................................................................................9Founder Bonus .................................................................................................................... 10Executive ................................................................................................................................12Leadership Overrides .........................................................................................................12

Luxury Payouts .....................................................................................................13Vacation Dollars ....................................................................................................................13Auto Bonus .............................................................................................................................15Jet Time ...................................................................................................................................16

Glossary .................................................................................................................17

Income Disclosure Statement ....................................................................... 22

Income Disclosure Statement available at wakeupnow.com/ids. Avg. IBO earns less than $100/mo.All IBOs must maintain a minimum of 3, 7, or 10 retail customers as applicableVersion 3.2014.001

WakeUpNow: Live the WUNLIFE.

2 Income Disclosure Statement available at wakeupnow.com/ids. Avg. IBO earns less than $100/mo.All IBOs must maintain a minimum of 3, 7, or 10 retail customers as applicable

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Welcome

Congratulations on joining WakeUpNow! WakeUpNow’s business model is built on the oldest type of advertising: word-of-mouth. Instead of buying advertising like television and radio ads, WakeUpNow pays commissions for sharing its amazing products and services with others.

It is important to understand that all commissions are based on the sale of products and services to end consumers—that is to customers who purchase WakeUpNow products for their personal use.

When you elect to convert from a Preferred Customer to a distributor (Independent Business Owner or IBO), you have taken the first step to earning commissions. You don’t earn commissions for recruiting other IBOs, but you can earn commissions whenever those IBOs or their customers buy products—and the more IBOs you bring in, the more products your organization can sell.

As customers renew their product purchases, you can earn residual recurring income just for helping someone else to live a better life. As with any business, results are not guaranteed, and your success will depend on your own hard work, leadership skill, talent, diligence, and perseverance.

This booklet will provide an understanding of the three factors that determine how you, as a WakeUpNow IBO, make money when you share products with others: (1) the number of customers you sell to, (2) how much those customers purchase each month, and (3) your effectiveness in building a marketing organization that expands your customer base by including other IBOs. A brief summary version, entitled Compensation Overview, can be found in the Resources section of the HUB, or at wakeupnow.com/overview.

Product

WakeUpNow provides solutions for a better life. Those solutions are delivered via subscription to a software program called the HUB. The HUB is a web-based software platform that includes a search engine populated with deals on everything from household products, to vacations, to entertainment, to online offers. HUB memberships can be customized to include some great financial tools like Finance™ and Taxbot™, which are designed to help customers take the money they save on purchases and apply them to debts and financial goals in order to achieve true financial freedom. IBOs have access to wholesale pricing in order to purchase products for resale.

Users can subscribe to the HUB at various levels depending on the benefits that are most important to them. See the comparison chart on the next page for more information about what WakeUpNow customers receive with some of the most popular on-demand product suites.

3Income Disclosure Statement available at wakeupnow.com/ids. Avg. IBO earns less than $100/mo.All IBOs must maintain a minimum of 3, 7, or 10 retail customers as applicableVersion 3.2014.001

SILVER$24.95*

monthly(8 CV)

GOLD$64.95*

monthly(45 CV)

PLATINUM$99.95*

monthly(90 CV)

All WakeUpNow products are accessed via the HUB.

WakeUpNow Marketplace™Product Suites and upgrades.

WUN Shop.Up to 40% cash back for onl ine

purchases from over 5,800 stores.WakeUpNow FREE

Social sharing.




Social sharing.




Social sharing.

WakeUpNow Protect™ Services:Cyberhood Watch by INVISUS

(Upgrades Avai lable)

WakeUpNow Protect™ Services:Cyberhood Watch by INVISUS.

iDefend ID Thef t Protec t by INVISUS. Annual Ex treme PC Makeover (PC &

Mac).(Upgrades Avai lable)

WakeUpNow Protect™ Services:Cyberhood Watch by INVISUS.

iDefend ID Thef t Protec t by INVISUS. Annual Ex treme PC Makeover (PC &

Mac).(Upgrades Avai lable)

Premiums Local Deals & Grocery Coupons



—

Corporate DiscountsGet corporate discounts on car rentals

from Her tz Gold and the Enterprise Emerald Club, as well as corporate rates

on the ent ire range of Choice Hotels.

Also receive discounts on purchases from stores l ike Of f ice Depot as well as

mobile phone rate plans from AT&T.

Corporate DiscountsGet corporate discounts on car rentals

from Her tz Gold and the Enterprise Emerald Club, as well as corporate rates

on the ent ire range of Choice Hotels.

Also receive discounts on purchases from stores l ike Of f ice Depot as well as

mobile phone rate plans from AT&T.

— Taxbot™ Taxbot™

—WakeUpNow Vacation Club™

2 Bookings per Year**WakeUpNow Vacation Club™Unlimited Bookings per Year**

—Newsstand Subscriptions

Choose 2 MagazinesNewsstand Subscriptions

Choose 3 Magazines

— — WakeUpNow Finance™

— —

WakeUpNow Speak™ Language Learning Software

Resources avai lable in over 100 languages

*Wholesale prices. **WakeUpNow Vacation Club requires an $89 one-time activation fee.


Version 3.2014.001

Customers

When WakeUpNow IBOs share products or services with potential customers, those customers have the option to enroll and become members. They can be either Deal Stream Insiders or Preferred Customers (PCs).

Deal Stream Insiders

Insiders, PCs, and IBOs are able to log in to the HUB and share offers found there. Social sharing links are attached to products available for purchase both in the Marketplace and the Deal Stream areas of the HUB.

When a customer signs up during the redemption of a shared offer, a sponsorship relationship is created between them (see Customers and Structures on page 5) and the IBO or PC (or the next IBO or PC upline if it was shared by an Insider) who originated the sharing link. IBOs and PCs are able to see these relationships from within the HUB.

Insiders may purchase from the HUB, are eligible for special pricing and can opt-in to receive marketing directly from WakeUpNow.

Preferred Customers

Preferred Customers (PCs) also get discounted pricing, receive access to the HUB based on their product purchases, and may opt-in to receive additional offers from WakeUpNow in the future.

PCs sign up from the marketing website of an IBO or another PC. They may also join from wakeupnow.com. PCs can also refer other PCs via their own marketing websites, which can be set up in the HUB.

PCs do not earn commissions, but the volume generated when they share creates group volume for IBOs in their upline.

Qualified Preferred Customers

No purchase is necessary to become a PC. However, PCs who purchase enough to achieve 90 volume (PV) are termed Qualified Preferred Customers (QPCs). This means they would have enough volume to be qualified to earn commissions if they were to choose to become IBOs (i.e., sign the IBO Enrollment form and agree to the Terms and Conditions and agree to abide by the Policies and Procedures).

A PC may refer others in anticipation of eventually becoming an IBO. Once a PC has referred at least three others who are all achieving at least 90 volume, WakeUpNow invites them to become an IBO and begin receiving commissions (see Director Bonus on page 9). PCs are able to convert to IBOs at any time.

Purchase of WakeUpNow’s products and services by IBOs is entirely optional. No purchase of products or services are necessary to become an IBO, move up in rank,

or to participate fully in the Compensation Plan.


Requirements to Earn Commissions

WakeUpNow pays three types of commission: Retail Payouts, Team Payouts, and Luxury Payouts.

All payouts are calculated using the following criteria each month:

1. Are you a Qualified IBO?

2. Do you meet the customer, product sales volume, and structural requirements to qualify for any particular payout?

3. Do you meet the ancillary requirements for any particular payout?

Qualified IBO

You must be an IBO in order to be eligible to receive commissions. By qualifying each month, you will maintain your eligibility. Here’s how:

1. Be enrolled as an IBO. This requires completing the IBO Enrollment form (either online or in hard copy), agreeing to abide by the Policies and Procedures, accepting the Terms and Conditions, and providing accurate information required to send you payment, such as valid contact information and your SSN. No product purchase is necessary.

2. Achieve 90 Personal Volume (PV). PV is generated by selling WakeUpNow products. No product purchase is necessary. However, your purchases are an acceptable method of generating PV. Any combination of products and services sold to customers or purchased for personal use, which allows an IBO to achieve 90 PV, is acceptable.

Customers and Structures

IBO to Customer

The most common relationship an IBO has is with the customers with whom he or she has shared the WakeUpNow products. Insiders and PCs are directly linked to the IBO or customer who referred them.

IBOs are free to sell WakeUpNow products to as many customers as they like, but they need to maintain a minimum of three at the Director level, seven at the Founder level, and ten at the Executive level each month. Preferred Customers, Insiders, customers who check out or redeem shared deals as a guest, and any customer who purchases retail product can count toward this requirement.

Enrollment Structure vs. Sponsorship Structure**

As IBOs share WakeUpNow with others and they become qualified IBOs, a marketing organization is created. Relationships between IBOs and others in the marketing organization as well as between each of the IBOs and their customers are described in terms of structure. Product purchases made within the structure of your marketing organization generate commissions for you.

There are two structures to be concerned about, which reflect two types of relationships: enrollment and sponsorship, which are created whenever a new IBO or customer enrolls. All commissions are affected by these two relationships.

The enroller or sponsor relationship is created when someone new enrolls as a member of WakeUpNow. This is typically done during the shared deal redemption process or by clicking

** References to enrollment and sponsorship are simply descriptive of the method of building one’s organization, i.e., personally enrolling other participants into WakeUpNow as members. This phrase is not intended to imply any connection between the

act of enrollment and payment of compensation.


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sign up from either the WakeUpNow website or an IBO marketing website.

Sign-ups during a shared deal redemption are typically Insiders and are automatically assigned with the enroller and sponsor username of the person who shared the deal. PCs typically enroll via another member’s marketing website. Corporate website sign-ups require the new enrollee to enter the username of an enroller and a sponsor (they are often the same).

Enroller

When someone enrolls as a Preferred Customer via your marketing website, your username is automatically submitted as their enroller. They do not need to enter it during the sign-up process. Essentially, enroller relationships are always front-line and there is no restriction on width, i.e., you can enroll as many customers as you want. Enrollment relationships impact the Retail Payouts (page 7).

Sponsor

By default your username is also automatically submitted as the sponsor when Preferred Customers sign up via your marketing website. If you would like to enable the option for a different sponsor username to be entered during sign up, you can turn on this feature of your website.

You can also turn on a Waiting Room feature that temporarily allows new members to sign up without creating a sponsor relationship. The Waiting Room allows you a short time to place new members where you choose within your organization. Note that new members are automatically sponsored to you if they are left in your Waiting Room more than seven days after they sign up (and all must be placed before the end of the commission month).

Both the toggle for the Sponsor Field during sign up and the Waiting Room are features you can access within the admin tools of the HUB.

Sponsorship relationships impact the Team Payouts (page 9) and Luxury Payouts (page 13).

You can view both structures and how each customer and IBO in your organization is connected from within the HUB.

Commission Types

Commission payments are based on the requirements met at the close of the month. Commissions are typically paid on the 15th of the month following, or the next U.S. business day after the 15th.

The remainder of this booklet outlines the particular requirements.


Retail Payouts

Retail Payouts are paid from each qualified retail purchase made by you, your downline, or any customer referred by anyone in your marketing organization. Every product available for purchase is assigned a Retail Commission Volume (RCV) which is used to calculate commissions on that sale. Because there are many types of retail purchase, not all have the same economics. For each type of Retail Purchase, an RCV is designated and used as the basis for calculating how much of each Retail Payout is paid and to whom.

Retail Payouts rely on the enrollment structure (see page 6).

Retail Purchases

When an IBO enrolled downline on your team or a customer with whom you shared a WakeUpNow product makes a purchase, it generates RCV, which becomes cash paid to you. There are two kinds of Retail Payout: Personal Retail Commissions and Group Retail Commissions.

Personal Retail Commissions

Personal Retail Commissions are paid on sales you make personally; that is, you share the deal or introduce or otherwise enroll the new customer. Retail purchases, such as HUB subscriptions and many purchases from the Marketplace generate an immediate commission. The commission is up to 50% of the RCV, which can represent as much as 40% of the purchase

price of the product.

Group Retail Commissions

Up to 50% of the RCV is set aside as Group Retail Commission Volume (GRCV), which is used to calculate Group Retail Commissions. As a result of these calculations, a small portion of

each retail purchase, down six generations in your organization, is paid to you as a Group Retail Commission.

Retail Purchases made within the first generation, by IBOs enrolled to you and by customers referred by you, generate a Group Retail Commission of 25% of the GRCV.

Retail Purchases made within generations 2 through 6 will generate additional Group Retail Commissions of 10% of the GRCV.

Founder 7

Group Retail Commissions get even better when you reach F7. For those who reach the rank of F7 and higher, ALL Retail Purchases in your downline contribute to your Group Retail Commission, except purchases where there are four or more IBOs who are a rank of F7 or higher between you and the customer making the purchase.

Group Retail Commission

Rank Generation % of GRCV

Qualified IBO or Higher

1 25%

2 10%

3 10%

4 10%

5 10%

6 10%

F7 or Higher ALL* 5%

* Unless four or more IBOs who are F7 or higher are between you and the customer making the retail purchase. Max payout of 100% of GRCV.


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For example, let’s say one member requests a refund on his or her purchase of the Platinum subscription after the commission month closes. If the upline includes three IBOs—one F3, one F4, and one F6—the following represents the impact on the upline:

Refunds and Charge Backs

WakeUpNow pays commissions on the sale of products and services. If a purchaser requests a refund or charges back (i.e., notifies their credit card company that the charge was unauthorized) anytime after commissions have been paid for that month, the company is put in a position of using sales that it did not truly make for purposes of calculating commissions.

of having paid commissions on sales that didn’t go through.

When this occurs, IBOs do not have to return commission paid in a previous month. However, IBOs F3 and above do pay a small portion of their next month’s commission as a clawback. Here’s how it works:

1. IBOs with a rank of D3 and below are NOT subject to clawbacks.

2. Clawback amounts for affected IBOs are capped at 15% of their team payout commission for the month.

3. Upline from where the refund occurred in the sponsor structure, IBOs experience a clawback amount equal to the portion of their total volume that the reversed sale represents. The formula is: (Refund Volume/Total Volume) ! Team Payout

Commissions Paid

4. Additional costs associated with a refund or charge back (i.e., if there is a balance left after all clawbacks to recover the cost of the sale, and if there are miscellaneous costs, such as merchant or banking fees associated) are deducted from the Founder and Executive Override Reserves.

5. Retail Payout (Personal Retail Commission and Group Retail Commission) clawbacks are simply 100% of the commission attached to the sale.

Rank Volume Calc FactorTeam

PayoutClawback

F6 90/40,000 0.23% $6,000 $13.50

F4 90/10,000 0.90% $2,000 $18.00

F3 90/1,170 7.69% $600 $46.15


Team Payouts

Team Payouts are tied to your rank, which is based on the size, sales volume, and configuration of your sponsorship structure. The sponsorship structure only counts qualified IBOs or qualified PCs when calculating rank for any commission month. IBOs and PCs are qualified when they have each achieved 90 PV via product sales and/or purchases.

The three rank levels at WakeUpNow are Director, Founder, and Executive. Within these levels are the ranks you may advance through as your marketing organization of qualified IBOs and your customer base of PCs and Insiders grow.

You can advance through three levels of Team Payout—Director, Founder, and Executive—plus you can qualify for special Leadership Overrides.

Individual success is tied to your ability to help others be successful. WakeUpNow recommends you follow a strategy of B3H3G3, which stands for Bring Three. Help Three, Get Three customers. This strategy is about growing your customer base and your marketing organization. As you enroll your first three IBOs and they become a part of your marketing organization and meet their minimum customer requirement, you will be laying the foundation for success.

Next, help your front-line IBOs build their front lines and customer bases to continue growing your sales.

Director Bonus

Director ranks are achieved by personally sponsoring new qualified PCs or qualified IBOs directly beneath you.

Prior to Director 3, ranks do not affect commission payments. They only help you chart

your progress as you increase your customer base or marketing organization.

As a PC, you start with no volume and are unqualified. But once you make a product sale or purchase (which may have been when you signed up), you begin to accrue volume. Once you reach 90 volume, you are qualified (QPC). Refer another PC who reaches 90 volume and you become a QPC-1. Two, and you become a QPC-2. When you get a third, you are ready to convert to an IBO and become a Director 3.

If you become an IBO (e.g., by signing the IBO Enrollment form) before reaching Director 3, you can mark similar progress in sponsoring qualified PCs or qualified IBOs. A qualified IBO who sponsors one qualified PC or qualified IBO has reached the rank of Director 1 (D1). Sponsoring two qualified PCs or qualified IBOs makes you a Director 2 (D2).

Director 3

When you Bring Three PCs or IBOs and help them become qualified, you will become a Director 3 (D3). You need to be a qualified IBO and directly sponsor three qualified PCs and/or qualified IBOs (who have each achieved at least 90 PV). As a Director 3, you qualify to receive, the Director Bonus. The Director Bonus is $100 per month, each month that you meet the requirements as a Director 3.

All members downline from one of your front-line enrollees form a line in your organization.

The B3H3G3 strategy will help you get to the next rank as you Help Three do what you did. Those three will form your required lines, and the customers and IBOs will contribute the volume you need. When you have three lines with 360 volume in each you will have achieved the Founder level.


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Founder Bonus

The first Founder rank is Founder 3 (F3). To reach the rank of Founder 3, you must be a qualified IBO and sponsor three qualified lines that each have a QPC or a qualified IBO and a minimum of 360 total Commissionable Volume (CV). An F3 no longer receives a Director Bonus, but instead receives the next level Team Payout: the Founder Bonus, which starts at $600 per month. We call this the 600 Club!

Increasing Your Founder Bonus

As you increase your Group Volume (GV),† your Founder Bonus grows. GV is the CV generated by you and your entire marketing organization downline from you (i.e., your group). As an F3 you will already have a minimum GV of 1,170. If you increase your GV to 2,500, your Founder Bonus grows to $700 per month. At a GV of 5,000, your Founder Bonus goes up to $800 per month. And finally, when your sales volume drives your GV to at least 7,500, your Founder Bonus goes up to $1,000 per month.

Line Maximum

The Founder Bonus above $600 is also subject to a Line Maximum, which starts at 50% (see chart on page 11). The Line Maximum is the highest GV that can be counted from any one line in your organization.

For example, if you are an F3 and have 2,500 GV with 1,250 in one line and 625 in each of your second and third lines, you would qualify to receive the $700 Founder Bonus because your line with the most Volume (at 1,250) meets the requirement of being equal to 50% of the Line Max or less. In contrast, if you had 4,000 GV in one line and 500 in each of the other two, you would not qualify because 1,250 is the maximum that can be counted from any one line. Your GV total would be calculated as 1,250 + 500 + 500 = 2,250, which is less than the 2,500 GV required.

Founder 4–Founder 7

In addition to volume, ranks above F3, require adding qualified lines, i.e., lines with at least one qualified PC or IBO and a minimum of 360 in CV.

To reach the rank of Founder 4 (F4), you need to be a qualified IBO with a minimum of four qualified lines and GV of 10,000 or more with a 50% line maximum. F4s earn a Founder Bonus of $2,000 per month.

To reach the rank of Founder 5 (F5), you need to be a qualified IBO with a minimum of five qualified lines and GV of 20,000 or more with a 45% line maximum. F5s earn a Founder Bonus of $4,000 per month.

To reach the rank of Founder 6 (F6), you need to be a qualified IBO with a minimum of six qualified lines and GV of 40,000 or more with a 40% line maximum. F6s earn a Founder Bonus of $6,000 per month.

To reach the rank of Founder 7 (F7), you need to be a qualified IBO with a minimum of seven qualified lines and GV of 80,000 or more with a 40% line maximum. F7s earn a Founder Bonus of $10,000 per month.

† GV must be somewhat balanced; for a detailed breakdown of minimum requirements refer to Line Max on the chart

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Version 3.2014.001

Executive

Beyond Founder ranks are the Executive ranks. Executive ranks continue to earn $10,000/mo. in Founder Bonus, plus they qualify for the Leadership Overrides (see below). Executive ranks require you to qualify with 180 PV and a GV that reaches each level with a 35% line maximum.

The Executive ranks and corresponding GV requirements are as follows: Executive, 120,000; Pearl, 160,000; Ruby, 240,000; Emerald, 320,000; Sapphire, 480,000; Diamond, 640,000; Global Executive, 1,000,000.

Leadership Overrides

WakeUpNow reserves up to 12.5% of the total worldwide company CV less any balances and fees (see page 8) from all product purchases for the monthly payment of Leadership Overrides. The Leadership Overrides are comprised of two reserves. Up to 5% of total company CV is set aside in the Founder Override reserve, and up to 7.5% of total company CV is set aside in the Executive Override reserve. Reserve shares are paid to qualified IBOs starting at the rank of F4 each month. There is a maximum payout for each rank.

Two things are required to qualify:

1. Rank (includes Volume)

2. Customers

Founder Override

Up to 5% of the total worldwide company CV from all product purchases is reserved for IBOs from F4 through F7, up to the maximum. See chart on page 11 for the requirements, the shares, and the maximum override payout for each Founder rank.

The actual payout of the Founder Override is calculated by dividing the total Founder

Override reserve each month by the number of shares issued. The Founder Override then pays the corresponding amount per share to each IBO who has shares and is eligible, up to the maximum.

Executive Override

Up to an additional 7.5% of total worldwide company CV from all product purchases is reserved for IBOs in the Executive Ranks. The chart on page 11 shows the requirements, the allocation of shares, and the maximum override payout for each corresponding Executive rank.

Executive ranks receive shares in the Executive Override reserve as well as 10 shares in the Founder Override reserve. The actual payout on these Founder Override shares is calculated as explained under Founder Override.

The actual payout of the Executive Override is calculated similarly by dividing the total Executive Override reserve each month by the number of shares issued. The Executive Override then pays the corresponding amount per share to each IBO who has shares and is eligible, up to the maximum.


is all about. All the required submissions can be made online at luxpay.wakeupnow.com.

Vacation Dollars

IBOs who have achieved the rank of Founder 4 can begin taking advantage of the Vacation Dollars portion of the WakeUpNow Luxury Payout. Redeeming your Vacation Dollars is easy; here’s how it works:

Step 1

Complete the Luxury Payout Request to start accruing Vacation Dollars.

Step 2

For corporate events, just indicate you want to pay with Vacation Dollars when you register.

For other types of travel, complete the Travel Itinerary and attach any documentation of your travel-related expenses.

Step 3

After your trip, send us the Your Experience form, along with your photos and videos.

That’s it. Within 30 days of a complete request, WakeUpNow will make a deposit to your wallet balance and debit your Vacation Dollars balance as appropriate.

Any legitimate travel- or vacation-related expense (flights, hotels, tours, etc.) is an appropriate use for your Vacation Dollars. It is preferable to submit your expenses in advance of your travel where possible, but we understand that sometimes that is not practical. You can submit expenses for reimbursement up to 90 days after the day you return home from your trip or the date you incurred the expense, whichever comes later.

Luxury Payouts

When you use the Luxury Payouts and report your experience, you inspire others and contribute to the fun and success that is part of the WakeUpNow culture. Once you achieve the qualifying rank, there are a few things you need to do to redeem these payouts (see below). Each Luxury Payout includes a requirement to submit photos and videos and to tell us about your experience.

Your info helps us share the vision of the program and lets others see what the program

Luxury Payout

RankVacation Dollars

Auto Bonus

Jet Time

Founder 4 250 – –

Founder 5 250 $250 –

Founder 6 375 $375 –

Founder 7 500 $500 –

Executive 550 $550 –

Pearl 625 $625 –

Ruby 750 $750 –

Emerald 875 $875 –

Sapphire 1,000 $1,000 –

Diamond 1,000 $1,000 1 Hr/Mo.

Global Exec. 1,000 $1,000 2 Hrs/Mo.

Vacation Dollars accrue up to three months. Auto Bonus and Jet Time are maximums based on qualifying vehicles or usage. Jet time allocates $4,000 per hour. In lieu, IBOs may choose to accept 50% of the value of the Auto Bonus or Jet Time.


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Vacation Dollars can only be used after they are earned; you can’t get reimbursed for Vacation Dollars you expect to receive in the future, and reimbursements can’t exceed your entire remaining Vacation Dollars balance. You need to have it before you spend it.

Here are a few more things you should know:

WUN Adventure Kit

When you submit your first request for Vacation Dollars, 250 Vacation Dollars are used to purchase and send you the WUN Adventure Kit.

What’s in the kit? Items to make reporting back on your experience easy, such as a backpack, GoPro® action camera, and some great WakeUpNow SWAG to sport on your travels.

Don’t Procrastinate

Vacation Dollars can accrue for up to three months. Unused Vacation Dollars expire after that time (Vacation Dollars cannot be redeemed for cash like the other Luxury Payouts). We hope this will add more travel and enjoyment to your lifestyle, but sometimes even a positive opportunity, like traveling more, can be overlooked in the hustle and bustle of our busy lives. We hope that the expiration date on

Vacation Dollars motivates you to take a trip at least every three months.

Corporate Events

Once you begin requesting Vacation Dollars, you must use them to register and purchase at least two (2) full tickets* to the Annual WakeUpNow Corporate Conference. This event is too big to miss and we want you there! The conference is a powerful place to network with others, experience the WUN culture, and receive world class training, education, and motivation.

Vacation Dollars can be used to register for other corporate events, such as the Escape Trips and special invitation-only Leadership Retreats. IBOs with a rank of F7 up to Pearl are required to use Vacation Dollars for at least one corporate Escape Trip per year (rolling 12 months starting the first month you achieve the rank). Invitation-only Leadership Retreats are typically available to IBOs with a rank of Ruby and above. These IBOs are required to use Vacation Dollars for a minimum of one Leadership Retreat per year.

Vacation Dollars can be used for travel-related expenses (flights, hotels, etc.) incurred while attending corporate events in the same manner as for your vacations.

Events may have special pricing, such as a discount for early registration. Unless otherwise specified, redeeming Vacation Dollars does not affect the price. In other words, if you register during early registration, you receive the early registration discount. If you register at the door, you pay the door price.

If you cannot attend a corporate event, including the Annual WakeUpNow Corporate Conference, you are allowed to gift your tickets to others who can attend. Just make sure to register in the name of those attending. You can gift

* Otherwise the value of the full-price conference tickets will be deducted from your Vacation Dollars balance in the month(s) immediately following the conference.


event registration to IBOs in your organization, customers, or guests so long as they would be eligible to register and attend themselves. The number of gifts you can make is limited only by the number of Vacation Dollars you have. Gifts must be free-will—you cannot sell your Vacation Dollars or require something in exchange.

WUN Travel Specialist

WakeUpNow offers many travel benefits that may be available to you, such as the WakeUpNow Vacation Club, and discounts on hotels and car rentals. You aren’t required to use these when booking your trip, but we highly recommend it. You can contact a WakeUpNow Travel Specialist to help you get the most out of your Vacation Dollars. The Travel Specialist is NOT a travel agent, but he or she can help you book your corporate trip, event, or vacation.

Auto Bonus

IBOs who have achieved the rank of Founder 5 can begin taking advantage of the Auto Bonus portion of the WakeUpNow Luxury Payout.

Auto Bonuses are paid toward the purchase or lease of a vehicle newer than five years old (or other qualifying purchase). You must qualify for at least three months before Auto Bonuses are paid, and they do not accrue.

Following the purchase/lease of your new luxury vehicle, we ask you to

Step 1

Complete the Luxury Payout Request, if you haven’t anready, and request WakeUpNow decals for your vehicle.

Step 2

Apply the appropriate WakeUpNow decals. Complete the Luxury Payout Request, including the Vehicle Information section. Submit the items on the checklist, including the Your Experience form along with your photos and videos.

That’s it. Within 90 days, WakeUpNow will begin making a monthly deposit to your wallet balance as long as you continue to qualify and the payments don’t exceed the total amount of your vehicle.

If your vehicle is paid for (nice job), you can receive monthly payments equal to your full Auto Bonus until the total of those payments equals the purchase price of the vehicle.

If your Auto Bonus is greater than your monthly payment, you may choose to

1. Voluntarily increase your monthly payment to pay off your vehicle financing earlier. Simply request this from the financial institution that receives your payment and provide documentation.

2. Treat the overage with the Cash option below. For example, if my Auto Bonus is $500, but my payment is $400, I can apply the extra $100 to the 50% cash option and take $50 in cash each month in lieu of payments on a vehicle.

3. Purchase another vehicle or approved alternative (see Alternatives below) and apply the balance there.

Cash

You may elect to take 50% of the value of this bonus as cash in lieu of reimbursements for your vehicle. Just submit a request at luxpay.wakeupnow.com with the relevant details. You can change this election with one month’s notice.


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Exceptions

If you have a vehicle that is older than five years for which you would like to request an exception (for example, a restored classic or a slightly older vehicle in great condition), send a request with supporting information at luxpay.wakeupnow.com. Understand that WakeUpNow wants your experience to inspire others, so if you submit a beat up rusted out Gremlin, approval is going to be unlikely. We think we are pretty reasonable, but WakeUpNow reserves the right to make the final decision on any exceptions.

Alternatives

This bonus can be applied to appropriate alternatives to a luxury vehicle, for example a boat or ATV. Alternatives go through the same approval process as Exceptions above. For considerations for approval, we primarily ask the following:

• Does it reflect the WakeUpNow lifestyle and values?

• Is this obvious to others via some type of decal or image?

Jet Time

IBOs who have achieved the rank of Diamond can begin taking advantage of the Jet Time portion of the WakeUpNow Luxury Payout.

Jet time is awarded beginning the first month in which qualification is met and can be accrued for up to 12 months.

Step 1

Complete the Luxury Payout Request if you have not done so previously.

Step 2

Upon your return, send in the Your Experience form with a summary, photos, and a video of your experience. We need this for each flight you take.


Glossary600 Club IBOs earn a Founder Bonus of $600 per month for each Commission Month in which they achieve the

rank of Founder 3. IBOs who have achieved this rank or higher are considered members of the 600 Club. See page 10.

Auto Bonus One of three Luxury Payouts offerred to IBOs who achieve the rank of Founder 5 and above. The Auto Bonus is a dollar amount, based on an IBOs achieved rank, to be applied to the purchase or lease of a vehicle with a model year 5 years old or newer. See page 13. See also the document Luxury Payouts

available in the Resources section of the HUB.™

Commission Month Commission months are the calendar months (Mountain Time) for which commissions are calculated. Commission payments are based on the requirements met at the close of the month. For instance, if an IBO achieved the rank of Founder 3 in the calendar month of April, his $600 Founder Bonus for achiveing that rank would be said to have been earned in the commission month of April, which would be paid out as a commission payment in May.

Commissionable Volume (CV) Qualified Retail Purchases generate CV for the IBO and/or Marketing Organization responsible for the sale. The CV is the portion of the sale used to calculate when IBOs achieve the various ranks and commissions.

Commissions Payments issued to IBOs for the sale of products.

Compensation Plan The system and terms by which WakeUpNow pays IBOs for their contribution in advertising, marketing, distributing, and selling WakeUpNow’s products.

Corporate Discounts WakeUpNow customers enjoy various Corporate Discounts depending on their subscription. These discounts may include improved pricing on rental cars, hotels, office supplies, mobile phone rate plans, and more. See page 3.

Current IBO An IBO who is not past due on any product subscriptions and is slated to become a Qualified IBO before the end of the month.

Customer A purchaser of WakeUpNow products or services for personal use.

Cyberhood Watch™ Part of the WakeUpNow Protect™ suite by Invisus, Cyberhood Watch is a PC monitoring service designed to alert you if your computer has been compromised by malware. Cyberhood Watch is included in the Silver, Gold, and Platinum level subscriptions.

Deal Stream Insider See Insider.

Diamond Diamond is an Executive rank, requiring the IBO to meet the requirements for Founder 7, plus achieve a qualifying PV of 180, plus achieve a GV of 640,000.

Director 1 (D1) A Qualified IBO with one additional personally sponsored Qualified IBO in their Sponsor Structure.

Director 2 (D2) A Qualified IBO with two additional personally sponsored Qualified IBOs in their Sponsor Structure.

Director 3 (D3) A Qualified IBO with three additional personally sponsored Qualified IBOs in their Sponsor Structure.

Director Bonus A $100 monthly commission paid to Qualified IBOs who have achieved the rank of D3.

Distributor See Independent Business Owner (IBO).

Downline The subordinate levels of an IBOs Sponsorship Structure form that IBOs downline. See Marketing Organization.

Emerald Emerald is an Executive rank, requiring the IBO to meet the requirements for Founder 7, plus achieve a qualifying PV of 180, plus achieve a GV of 320,000.

End Consumer See Customer.

Enroll To enroll in WakeUpNow is to sign up as a member.

Enroller When one IBO introduces someone to WakeUpNow and that person becomes a member, the IBO who made the introduction is the Enroller.

Enrollment Structure Enrollment Structure illustrates the relationships beteween Enrollers and the members they enroll. The Enrollment Structure is used to determine the correct Retail Payouts and Check Match (see page 6)based on where in the structure retail sales occur.


Version 3.2014.001

GlossaryExecutive The highest category of rank for WakeUpNow IBOs. Executives must qualify by achieving all the

requirements for Founder 7, plus achieve 180 PV, plus the corresponding GV requirements. See Executive, Pearl, Ruby, Emerald, Sapphire, Diamond, and Global Executive. See page 12.

Executive Override IBOs who achieve one of the Executive ranks can receive shares in the Executive Override corresponding to their particular rank (see page 11). Shares represent the proportionate amount of the Executive Override Reserve, which are paid each month up to the maximum.

Executive Override Reserve Up to 7.5% of worldwide CV from all product purchases is set aside in the Executive Override Reserve each month. Overrides are paid from this reserve.

Extreme PC Makeover™ The Extreme PC Makeover by Invisus is a part of the WakeUpNow Protect™ suite available in many WakeUpNow HUB™ product subscriptions.

Finance™ WakeUpNow Finance™ is a Personal Financial Management (PFM) software available in WakeUpNow HUB product subscriptions.

Founder 3 (F3) A Qualified IBO with at least three Qualified Lines, i.e., lines containing at least one Qualified IBO or PC and a minimum of 360 CV in their Sponsor Structure. F3s earn a Founder Bonus of $600 per month. See page 10.

Founder 4 (F4) A Qualified IBO with at least four Qualified Lines in their Sponsor Structure and a minimum of 10,000 GV with a Line Max of 50%. F4s earn a Founder Bonus of $2,000 per month. See page 10.

Founder 5 (F5) A Qualified IBO with at least five Qualified Lines in their Sponsor Structure and a minimum of 20,000 GV with a Line Max of 45%. F5s earn a Founder Bonus of $4,000 per month. See page 10.

Founder 6 (F6) A Qualified IBO with at least six Qualified Lines in their Sponsor Structure and a minimum of 40,000 GV with a Line Max of 45%. F6s earn a Founder Bonus of $6,000 per month. See page 10.

Founder 7 (F7) A Qualified IBO with at least seven Qualified Lines in their Sponsor Structure and a minimum of 80,000 GV with a Line Max of 40%. F7s earn a Founder Bonus of $10,000 per month. See page 10.

Founder Bonus IBOs who achieve the rank of Founder and above each month receive a Team Payout called the Founder Bonus based on their corresponding rank and volume.

Founder Override IBOs who achieve the rank of F4 and above can receive shares in the Founder Override corresponding to their particular rank (see page 11). Shares represent the proportionate amount of the Founder Override Reserve, which are paid each month up to the maximum.

Founder Override Reserve Up to 5% of worldwide CV from all product purchases is set aside in the Founder Override Reserve each month. Overrides are paid from this reserve.

FREE™ WakeUpNow Free™ is a collection of free Internet offers available as part of many WakeUpNow HUB product subscriptions.

Front Line Members for whom you are the Sponsor form the Front Line of your Sponsor Structure. Members for whom you are the Enroller form the Front Line of your Enrollment Structure.

Generation A Generation is a Level of like kind. Generations are used when calculating the Group Retail Commissions See page 7.

Global Executive Global Executive is an Executive rank, requiring the IBO to meet the requirements for Founder 7, plus achieve a qualifying PV of 180, plus achieve a minimum GV of 1,000,000 .

Gold A HUB subscription available for $64.95 per month. For a list of features in the Gold subscription. See page 3.

Grocery WakeUpNow Grocery is software for finding grocery deals from national chains and is included in many WakeUpNow HUB product subscriptions.

Group Retail Commission Group Retail Commissions are a Retail Payout representing a small portion of each retail purchase made up to six generations down in the IBOs Enrollment Structure. The amount is determined as a corresponding percentage of the GRCV. See page 7.

Group Retail Commission Volume (GRCV)

The aggregate CV attached to each product purchased that contributes to the Group Retail Commission.

Group Volume (GV) The total CV generated by product sales within your group. In other words, the total CV generated by product sales within your Sponsorhip Structure, inclusive of your own PV.


GlossaryHUB™ WakeUpNow’s product is a software platform called the HUB, which is delivered as a monthly Software-

as-a Service (SaaS) membership subscription. HUB subscribers can search, purchase, and use many types of products and services based on the subscription level (such as Silver, Gold, or Platinum). Product subscription sales generate CV.

IBO Number See Member Number.

iDefend™ iDefend™ is an Identity Theft Protection product part of the WakeUpNow Protect™ suite available in many WakeUpNow HUB™ product subscriptions.

Income Disclosure Statement WakeUpNow issues an Income Disclosure Statement indicating actual commissions paid for a given period. The most current Income Disclosure Statement is available at wakeupnow.com/ids.

Independent Business Owner (IBO) Someone who has signed up to be eligible to earn commissions for participating in WakeUpNow’s advertising and distribution program for selling products to customers.

Insider A Deal Stream Insider is a member who subscribes to WakeUpNow marketing messages and deals, typically via social sharing.

Invoice IBOs invoice WakeUpNow for their commissions each month.

Leadership Overrides Leadership Overrides encompass two types of commission for which IBOs can be eligible based on their rank: the Founder Override and the Executive Override. Overrides are paid as proportionate shares of the corresponding Override Reserve, which is derived as a percentage of total worldwide CV from product purchases less any balances and fees.

Level Each subordinate layer in any structure represents a Level.

Line Your front line Members and all Members subordinate to them in your Sponsor Structure create a Line in your Marketing Organization.

Line Maximum When calculating GV for rank advancement, a Line Maximum percentage is applied, which coresponds to each rank. For example, the rank of F7 requires 80,000 GV with a Line Maximum of 40%. That means no more than 32,000 CV (40% of 80,000) can be counted from any one line as Qualifying Volume for reaching rank.

Luxury Payouts The Luxury Payout is a way the WakeUpNow Compensation Plan is designed to improve the lives of each IBO as they grow their marketing organizations and drive increased product purchases. Luxury Payouts include Vacation Dollars, Auto Bonus, and Jet Time.

Marketing Organization IBOs increase their chances of success in advertising, distributing, and selling WakeUpNow products by building a netowork of IBOs who reinforce and support each other in driving product sales. When an IBO enrolls other IBOs into subordinate positions in their Sponsorship Structure, this group of IBOs is a Marketing Organization.

Marketing Website IBOs are provided a Marketing Website to help them advertise WakeUpNow’s products. The URL for each Marketing Website is username.wakeupnow.com by default.

Marketplace The WakeUpNow Marketplace is an area within the HUB where users can search for online offers for cash back, WakeUpNow offers, and other specials like free shipping, coupons, etc. The Marketplace is software included in many WakeUpNow HUB product subscriptions.

Member Customers (Insiders and Preferred Customers) and IBOs are all WakeUpNow members.

Member Number New WakeUpNow members are assigned a unique number when they enroll.

Newsstand Newsstand offers free and discounted magazine subscriptions and is included in many WakeUpNow HUB product subscriptions.

Pearl Pearl is an Executive rank, requiring the IBO to meet the requirements for Founder 7, plus achieve a qualifying PV of 180, plus achieve a GV of 160,000.

Personal Retail Commissions Personal Retail Commissions are a Retail Payout paid directly to the IBO who makes a product sale on qualifying products (see page 7). Personal Retail Commissions are up to 50% of RCV.

Personal Use Personal Use denotes that product will be consumed and not resold to others.

Personal Volume (PV) CV counts as PV when it arises from sales made by an IBO personally, or by Retail Customers sold prodcts by that IBO.


Version 3.2014.001

GlossaryPlatinum A HUB subscription available for $99.95 per month. For a list of features in the Platinum subscription, see

page 3.

Policies and Procedures WakeUpNow’s official Policies and Procedures must be read and agreed to by each IBO in order to participate in the WakeUpNow Compensation Plan.

Preferred Customer Any Customer who has signed up to be a Preferred Customer with WakeUpNow.

Premiums WakeUpNow Premiums™ is software for finding special deals from local merchants and is included in many WakeUpNow HUB product subscriptions.

Products WakeUpNow’s product is a Software-as-a-Service subscription to a web-based software platform called the HUB. The HUB is available in various configurations and price points, such as Silver, Gold, and Platinum. The HUB is a platform and search engine for accessing additional features, such as financial management software, WakeUpNow proprietary Select products, discounts, and special offers.

Protect™ The WakeUpNow Protect™ suite includes iDefend™, iSafe™, and Cyberhood Watch™ by Invisus.

Qualified IBO A Qualified IBO is one who has achieved 90 PV.

Qualified Line A Line with at least one Qualified IBO and a minimum of 360 in CV.

Qualified Preferred Customer (QPC) A Preferred Customer who has achived 90 PV.

QPC 1 A QPC with 1 QPC or Qualified IBO in their Sponsor Structure.

QPC 2+ A QPC with 2 or more QPCs, Qualified IBOs, or a combination of the two in their Sponsor Structure.

Qualified Retail Purchase A Retail Purchase that qualifies to generate a type of commission, CV, or both.

Qualifying Volume (QV) CV that is under the Line Maximums for the corresponding rate and so qualifies to be counted toward GV for determinng rank.

Rank The WakeUpNow Compensation Plan includes requirements for various Ranks based on an IBOs success in generating product sales and building a Marketing Organization that contributes to the overall generation of product sales.

Retail Customer See Customer.

Retail Commission Volume (RCV) The CV designated for each product.

Retail Payouts Includes Personal Retail Commission and Group Retail Commission.

Retail Purchase Any purchase of WakeUpNow products for personal use.

Ruby Ruby is an Executive rank requiring the IBO to meet the requirements for Founder 7, plus achieve a qualifying PV of 180, plus achieve a GV of 240,000.

Sapphire Sapphire is an Executive rank requiring the IBO to meet the requirements for Founder 7, plus achieve a qualifying PV of 180, plus achieve a GV of 480,000.

Shares Each Share of the Leadership Overrides represents a proportional percentage equal to the value of the entire respective Override Reserve divided by the total number of shares.

Silver A HUB subscription available for $24.95 per month. For a list of features in the Silver subscription, see page 3.

Sponsor The IBO directly above another Member in the Sponsorhip Structure is the Sponsor.

Sponsorship Structure Sponsorship structure illustrates the relationships beteween Sponsors and the IBOs subordinate to them in their Marketing Organization. The Sponsorship Structure is used to determine the correct Team Payouts, and Luxury Payouts (see page 6).

Structure Structure refers to the relationships between IBOs, such as Enrollment Structure or Sponsorship Structure.

Subscription WakeUpNow’s core products are purchased via monthly subscription, i.e., the Software-as-a-Service model. Many products available in the Marketplace also may be purchased with a monthly renewal and autopay.

TaxBot™ TaxBot™ is a tracking software and smartphone app for tracking possible tax deductions (WakeUpNow does not offer tax advice. Please be sure to check with your CPA or tax attorney to see how TaxBot can best apply in your situation.) TaxBot is included in many WakeUpNow HUB product subscriptions.


GlossaryTeam Payouts Includes Director Bonus, Founder Bonus, and Leadership Overrides (see page 9).

Tell Me More™ Tell Me More™ is a language learning software system included in many WakeUpNow HUB product subscriptions.

Terms & Conditions WakeUpNow’s official Terms and Conditions must be read and agreed to by each Customer before using WakeUpNow products.

Vacation Club WakeUpNow Vacation Club™ allows access to a special travel advisor and members-only pricing on unused inventory of timeshare condominiums, discounted hotels, and discounted cruises. Vacation Club membership is available for a one-time purchase of $100 with many WakeUpNow HUB product subscriptions.

Vacation Dollars Vacation Dollars are how the vacation portion of the Luxury Payout are accrued. Vacation Dollars can be reimbursed as USD by those who qualify to receive Vacation Dollars as part of their compensation and who meet the requirements of the Luxury Payout program.

Waiting Room A feature in the Office section of the HUB that allows time for IBOs to place their enrollees into their Sponsor Structure before the end of the Commission Month.

WakeUpNow Finance See Finance™.

WakeUpNow FREE See Free™.

WakeUpNow Protect See Protect™.

WakeUpNow Speak WakeUpNow Speak is a language learning software system provided by Transparent Language. WakeUpNow Speak is included in many WakeUpNow HUB product subscriptions.

WakeUpNow Vacation Club See Vacation Club™.


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Income Disclosure Statement available at wakeupnow.com/ids. Avg. IBO earns less than $100/mo.

Income DisclosureStatement

Worldwide December 2013

Rank% of IBOs

Avg. Hrs/Wk

Monthly IncomeAvg.

AnnualLow Average High

IBO 53% <1 $0.00 $0.00 $0.00 $0.00

Director 1 18% <2 $0.00 $0.00 $0.00 $0.00

Director 2 10% <2 $0.00 $0.00 $0.00 $0.00

Director 3 14% <2 $99.95 $101.09 $115.00 $1,213.05

Founder 3 4% 4 $420.00 $633.76 $1,000.00 $7,605.13

Founder 4 <1% 5 $2,058.15 $2,357.23 $2,558.15 $28,286.72

Founder 5 <1% 6 $4,569.37 $4,770.63 $5,116.30 $57,247.61

Founder 6 <1% 8 $7,107.60 $7,540.08 $7,982.60 $90,480.92

Founder 7 <1% 9 $13,581.50 $13,601.80 $13,723.59 $163,221.58

Executive <1% 12 $18,681.50 $18,681.50 $18,681.50 $224,178.00

Pearl <1% 12 $23,831.50 $23,831.50 $23,831.50 $285,978.00

Ruby <1% 12 $29,081.50 $29,081.50 $29,081.50 $348,978.00

Emerald <1% 13 $34,331.50 $34,331.50 $34,331.50 $411,978.00

Diamond <1% 18 $54,581.50 $54,581.50 $54,581.50 $654,978.00

The income statistics above are for all WakeUpNow Distributors (Independent Business Owners) who were qualified during the month of December, 2013. This compensation is all inclusive.

The earnings of the Distributors (Independent Business Owners) in this chart are not necessarily representative of the income, if any, that a WakeUpNow Distributor can or will earn through his or her participation in the WakeUpNow Compensation Plan. Your success depends upon your skills, work effort, and market conditions. WakeUp Now does not guarantee any level of income or success.

wakeupnow compensation guide krystal taylor

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