ACCUMULATING TEAM VOLUME

 

Once a Coach Business Center (CBC) achieves Active Status and meets the qualifications for the rank of Emerald Coach or higher, the CBC can start accumulating and banking (holding) Team Volume (TV) from its left and right downline legs (regardless of depth) and may become eligible to start earning Team Cycle Bonuses and other bonuses per the Beachbody Coach Compensation Plan.

 

ACTIVATED

 

The status reached when a CBC first becomes Active AND personally sponsors two Coaches, one placed in each of the Coach’s left and right legs, who both become Active. Once a CBC is Activated, it begins to accumulate and bank (hold) Team Volume (TV) from each downline leg for the purpose of earning Team Cycle Bonuses and other bonuses. Once a CBC becomes activated, that CBC retains that status indefinitely.

 

ACTIVE AND QUALIFIED

 

The status where a CBC has achieved Active Status AND has fully met the qualifications for a specific Rank level within the Beachbody Compensation Plan within the Bonus Qualification Period.

 

ACTIVE STATUS

 

A CBC achieves Active Status by (a) earning and maintaining a total of 50 or greater Personal Volume (PV) within the Bonus Week; (b) accumulating and maintaining 50 or greater PV within the Bonus Qualification Period from your personal Home Direct orders; or (c) becoming a new Coach by directly responding to for the initial Bonus Week (i.e., solely for the new Coach’s first 35 days).

 

Active Status must be maintained by continuing to have accumulated 50 PV or greater as the Bonus Qualification Period rolls forward each week.

 

AGREEMENT

 

The contract between Beachbody and each Independent Beachbody Coach, which includes the Independent Beachbody Coach Application and Agreement, the Beachbody Coach Policies and Procedures, and the Beachbody Coach Compensation Plan, all in their current form and as may be amended by Beachbody in its sole discretion. These documents are collectively referred to as the “Agreement.”

 

BINARY GENEALOGY

 

The tree-like organizational structure utilized by the Beachbody Compensation Plan to organize Independent Beachbody Coach businesses, to create the related sponsorship connections between CBCs, and to calculate Rank levels and bonus compensation. A Binary Genealogy structure has one CBC in a position with exactly two CBC positions directly below that CBC, creating a left leg and a right leg for each CBC. This structure repeats for each CBC within the overall Binary Genealogy.

 

BONUS (ES)

 

Additional compensation paid per the Beachbody Compensation Plan. There are five (5) different bonuses: 1) Team Cycle Bonus, 2) Matching Check Bonus, 3) Shakeology Fast Start Bonus, 4) Shakeology Fast Start Plus Bonus, and 5) Star Diamond Leadership Bonus.

 

BONUS EARNING PERIOD

 

This is the weekly timeframe for totaling and calculating all sales, volume, commissions and bonuses. The period commences each Thursday morning at 12:00 am ET and continues until 11:59 pm ET the following Wednesday night. Commissions and Bonuses are processed and paid weekly (one week in arrears) based upon a day-by-day calculation of sales activity within the Bonus Earning Period.

 

BONUS POINTS

 

Points used to determine Commissions and bonuses to be paid to a Coach each Bonus Earning Period. Bonus Points are a universal denomination to which the Company multiples a currency conversion rate (current conversion rate for each registered country to be published in the Coach FAQ) to determine the actual amount paid to a Coach in the applicable country currency. BONUS

 

QUALIFICATION PERIOD

 

The timeframe within which Active Status for a CBC is determined for a given Bonus Earning Period. The Bonus Qualification Period is the 35-day period prior to and including the last day of the most recently completed Bonus Earning Period.

 

BUSINESS SERVICES FEES (BSF)

 

The monthly cost of maintaining a CBC and receiving the proprietary back office tools, dashboard, and replicated Web site charged to Coaches by Beachbody. Payment of the monthly Business Services Fees by a CBC is required for that CBC to remain Current.

 

CARRY-OVER VOLUME

 

TV that remains after all possible Cycles have been calculated for a given day. This remaining TV is brought forward to the next day and is added to any new TV generated by a CBC until additional Cycles may be achieved. 45 Updated September 22, 2015

 

COACH BUSINESS CENTER (CBC)

 

An independent sales position within the Beachbody Genealogy, which is assigned to and represents an Independent Beachbody Coach business. Each position is used to track a Coach’s retail sales activity and to track any TV generated by a Coach’s downline sales organization.

 

COMMISSION

 

A portion of the retail volume of a Beachbody product that is paid to a Coach as compensation for their sales in the Beachbody Coach Business opportunity.

 

CURRENT STATUS

 

A CBC is determined to be Current if the monthly Business Services Fees has been paid for that CBC during the current Bonus Qualification Period. Any CBC that does not have Current Status is subject to the withholding or forfeiture of any earned and unpaid compensation, as well as additional penalties, including suspension and/or termination of the CBC if the account is not brought Current within specified timeframes as defined in the Beachbody Policies and Procedures document.

 

CUSTOMER

 

A purchaser of Beachbody products or membership services, either as a Retail Customer or as a Club Member. Each Customer is assigned to a Coach, but Customers are not placed in any Genealogy, nor may they sign up Coaches or other Customers. Further, Customers cannot receive Commissions or Bonuses.

 

CYCLE (CYCLING)

 

 

 

DAY PERIOD

 

A day is defined as 12:00am ET to 11:59pm ET (Eastern Standard Time).

 

DIRECT LINE OF SPONSORSHIP

 

The lineage within the Binary Genealogy that begins with a specific CBC and moves to that CBC’s personally sponsoring CBC, then to that CBC’s personally sponsoring CBC, and so on (i.e., Mary is personally sponsored by Bob, who is personally sponsored by Sally, etc.). The Direct Line of Sponsorship is NOT necessarily the same as the Genealogy lineage, as it is possible that two adjacent CBC’s could not have a personally sponsoring relationship.

 

DOWNLINE

 

A term that defines the Binary Genealogy structure that begins with the two positions directly below a specific CBC and extends to all CBCs that emanate from those two positions, whether or not they're Personally Sponsored by that specific CBC.

 

DOWNLINE ACTIVITY REPORTS (GENEALOGY REPORTS)

 

Refers to any of several reports generated by Beachbody or from Beachbody-controlled data that provide critical data relating to the identities of Coaches, sales information, and enrollment activity of each Coach’s Downline. These reports contain confidential and trade secret information, which is proprietary to Beachbody.

 

GENEALOGY

 

The organizational structure utilized by the Beachbody Compensation Plan to organize Independent Beachbody Coach businesses, to create the related sponsorship connections between CBCs, and to calculate Rank levels and bonus compensation. A Binary Genealogy structure has one CBC in a position with exactly two CBC positions directly below that CBC, creating a left leg and a right leg for each CBC. This structure repeats for each CBC within the overall Binary Genealogy.

 

HOME DIRECT (aka AUTOSHIP)

 

A convenience program wherein preselected products are shipped to you or to your Beachbody Customers each month and are automatically billed to the credit card that was provided at the initiation of the program.

 

INACTIVE STATUS

 

The status that exists for a CBC when 49 PV or less has been accumulated in any Bonus Qualification Period. Inactive Status will cause a demotion to the rank of Coach and will also cause permanent removal of all Team Volume banked at the time the Coach goes Inactive. Upon achieving a minimum of 50 PV or greater, the status of a CBC will be changed to Active, and TV may again begin to accumulate for that CBC.

 

LEFT TEAM VOLUME

 

Represents a CBC’s accumulated TV generated from the downline Coaches in the left leg of the CBC.

 

LIFETIME CYCLES

 

The number of Cycles achieved in the lifetime of a CBC.

 

LIFETIME RANK

 

The highest Rank level that a CBC has achieved in its lifetime. Once a Rank is achieved, it is permanent for Coach recognition purposes; however, Bonuses will be calculated and paid based upon the Paid-As Rank determined in the current Bonus Earning Period. Also known as Highest Achieved Rank or Official Rank.

 

MASTER CYCLE

 

Each time a CBC completes 5,000 consecutive Cycles, a Master Cycle occurs and a maximum of 5,000 TV from the CBC’s strong leg and the entire TV from the CBC’s weak leg is carried over to the next Cycle. Cycling may resume on the same day.

 

MATCHING BONUS

 

One of the bonus opportunities under the Beachbody Compensation Plan, which may be paid to Active and Qualified Ruby and Diamond Coaches. This bonus is calculated and paid weekly as a 5 percent (Ruby) or 10 percent (Diamond) matching payment based on the Team Cycle Bonus earnings of a Coach’s Personally Sponsored downline Coaches.

 

PAID-AS RANK

 

The Rank level for a CBC that has been achieved in the current Bonus Earning Period. This Rank level will determine the calculation of Bonuses earned in the current period. This rank may be equal to or lower than the Lifetime Rank for the CBC.

 

PERSONALLY SPONSORED

 

Any or all of the Beachbody Coaches who have been directly sponsored by a specific Beachbody Coach.

 

PERSONAL RETAIL CUSTOMER

 

A Coach’s Personal Retail Customers, including: 1) those Home Direct Customers whom the Coach enrolls into the Home Direct Program (excluding those who are already Coaches); and 2) those non-Coaches who make product or membership service purchases from a Coach’s Beachbody Web site. Coaches may additionally sell products to third parties, from their personal inventory or in other manners, which are not placed through their Coach’s Beachbody Web site, provided that these sales will not provide any volume or commissions toward their CBC.

 

PERSONAL VOLUME (PV)

 

PV is a value assigned to products and Membership services sold in a Bonus Earning Period either by a Coach’s personal purchases or by a Coach to his or her Personal Retail Customers. PV is used to determine Active Status and is also a factor in calculating the payout earned by a Coach for each Cycle.

 

QUALIFIED

 

Indicates that a Coach has fully met all requirements to achieve a specific Rank level.

 

RANKS

 

The 19 different levels a Coach may qualify for within the Beachbody Compensation Plan. Rank levels have a direct impact on the amount of compensation a Coach may earn, and may also be a qualifier for participation in various Beachbody programs and promotions. Rank levels are recalculated weekly.

 

The Rank levels are: 1. Coach 2. Emerald Coach 3. Ruby Coach 4. Diamond Coach 5. One Star Diamond Coach 5. Two Star Diamond Coach 6. Three Star Diamond Coach 7. Four Star Diamond coach 8. Five Star Diamond Coach 9. Six Star Diamond Coach 10. Seven Star Diamond Coach 11. Eight Star Diamond Coach 12. Nine Star Diamond Coach 13. Ten Star Diamond Coach 14. Ten Star Diamond Coach 15. Eleven Star Diamond Coach 16. Twelve Star Diamond Coach 17. Thirteen Star Diamond Coach 18. Fourteen Star Diamond Coach 19. Fifteen Star Diamond Coach

 

RETAIL COMMISSIONS

 

One of the commission opportunities that may be paid to Coaches under the Beachbody Compensation Plan. This commission is calculated and paid weekly on the sales of products and Membership services to a Coach’s Personal Retail Customers through that Coach’s Team Beachbody Web site so long as that customer remains attached to that Beachbody Coach.

 

RETAIL VOLUME

 

Retail Volume is a value assigned to each product in order to calculate Commissions paid in Bonus Points. It is equal to the current US retail price for each product.

 

RETAIL SALES

 

Retail sales are purchases made by an individual who is not a Beachbody Coach.

 

RIGHT TEAM VOLUME

 

Represents a CBC’s accumulated TV generated from the downline Coaches in the Right leg of the CBC.

 

SPONSOR

 

A Beachbody Coach who enrolls another Beachbody Coach into the Company. The act of enrolling others and training them to become Beachbody Coaches is called “sponsoring” or “Personally Sponsoring.”

 

STAR DIAMOND LEADERSHIP BONUS

 

One of the bonus opportunities that may be paid to Coaches under the Beachbody Compensation Plan. This bonus is calculated and paid quarterly based on a percentage of the total Company TV, and is paid to those meeting and maintaining Star Diamond qualifications for six (6) consecutive weeks within each quarter.

 

STRONG LEG

 

In evaluating the TV from a CBC’s Downline, the leg with the higher accumulated TV at any time is deemed the Strong Leg at that time.

 

SUBSCRIPTION COMMISSIONS (aka CLUB COMMISSIONS)

 

One of the commission opportunities that may be paid to Coaches under the Beachbody Compensation Plan. This commission is calculated and paid weekly on the sales and renewals of Team Beachbody Club Memberships to a Coach’s Personal Retail Customers or Personally Sponsored Coaches.

 

TEAM CYCLE BONUS

 

One of the bonus opportunities that may be paid to Active and Qualified Emerald or higher Coaches under the Beachbody Compensation Plan. This bonus is calculated and paid weekly on the accumulated TV from a CBC’s Downline.

 

TEAM VOLUME (TV)

 

TV is a value assigned to products and Membership services sold in a Bonus Earning Period and is used to calculate Team Cycle Bonus. The TV for a CBC is the sum of all TV generated from purchases made by the CBCs Downline Personal Sponsored Coaches and their Personal Retail Customers. TV for a CBC does not include volume generated by the CBC’s personal purchases or purchases of their Personal Retail Customers.

 

UPLINE

 

This term refers to the CBCs above a particular Beachbody Coach in the Direct Line of Sponsorship.

 

WEAK LEG

 

In evaluating the TV from a CBC’s Downline, the leg with the lower accumulated TV at any time is deemed the Weak Leg at that time.

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