The Science Behind the 4LifeTM Pay Plan

(USA)

"The Hypothesis Behind Our Science"

Every compensation plan has a purpose or strategy behind it. This strategy can work for or
against you. Knowing the strategy behind a pay plan can help you select a compensation plan
that will accommodate your strengths and enhance your chance for ultimate success. Knowing
the dynamics of a pay plan will allow you to maximize its benefits. The following synopsis will
reveal the science behind 4Life'sTM compensation strategy. The principles you learn in this
synopsis can be applied to understanding other pay plans.
I have been involved in this industry for more than three decades. I have analyzed a number of
pay plans and have had the opportunity to watch many come and go. My greatest opportunity to
understand the dynamics of pay plans came through the million dollar study of the MLM
industry conducted by an independent market research firm that I financed. Forty-years of MLM
history were studied and more than 300 programs were examined. Genealogies containing
information on more than two million networkers and customers were carefully analyzed. From
this study, I learned a great deal about how pay plans affect distributors.
I had the privilege of being involved in the evolution of the 4LifeTM pay plan. In my 37 years of
networking experience, I have never seen a pay plan with more thoughtful science behind it. Let
us now venture into the understanding of the dynamics of compensation plans and especially the
4Life ResearchTM pay plan.
From a company's perspective, the purpose of a pay plan is not simply to fairly reward you for
your work or achievements. The average networker has no idea that there is a specific strategy
behind the pay plan that will affect his personal potential income. Some compensation plans are
designed to attract certain types of networkers. Other pay plans are designed to encourage certain
types of behavior. Examples of these strategies would be: deep paying programs to attract
heavier hitters, high front-end paying programs to attract more grassroots distributors and larger
fast-start bonuses to encourage more sponsoring.
These strategies create mathematical boundaries that control the maximum percentage of
individuals in any particular segment of marketers that can be in profit. These mathematical
boundaries will influence how difficult or easy it is for each segment of marketers to earn
potential incomes. When you join a company that has a compensation plan that is imbalanced
away from your category, you will find it very difficult to achieve your full potential. You might
say that "the cards are stacked against you." The majority of pay plans are designed to attract
certain distributors and create a few big checks quickly with very little regard for how the pay
plan will affect the long-range success of its participants. This reality has led to a tremendous
attrition problem in our industry and to the very failure of a number of companies.
Throughout my career (1967-2004), I have observed that the majority of pay plans have been
designed to attract individuals that are considered to be "heavy hitters." By heavy hitter, I mean

someone with the experience to build a very large organization. The common heavy hitter has
had the paradigm that the ideal strategy is to earn as much money as possible as quickly as
possible at the expense of building solidly. Unfortunately, this mindset has led to massive
attrition in this industry. The heavy hitter actually ends up earning less overall income as well as
an unstable residual income. The heavy hitter will actually earn the greatest amount of stable
residual income when all segments of distributors are fairly compensated. A wise heavy hitter
will select a program that doesn't overcompensate him too quickly but spreads the income
appropriately throughout all segments of marketers.
When I hear someone brag that their upline leader is earning $200,000 per month in his first year
from an organization of 25,000 distributors, it saddens me. Actually, the bragging distributor is
glorifying the "knife that stabbed him in the back." What this means to me is that a great number
of mid-level builders and grassroots distributors are being underpaid. The paradox is that the
heavy hitter's days of success are limited and failure is right around the corner. You can read my
synopsis, "Science Behind an Effective Pay Plan," to enhance your understanding of the
principles behind this statement.
Success has an equation of factors that determines its dynamics. When you include as many of
these factors as possible into your building strategy, you maximize the degree of success that you
can achieve. When you overpay the upper end of your leaders on a given volume, eventually, the
underpaid segment of your organization will drop out.
This marketing philosophy and strategy has created a scenario where the majority of heavy
hitters move from company to company every 6-10 years (sometimes even more quickly). Greed
can be a great leader's downfall. Everyone in your organization will be more successful when
each person is compensated correctly in direct relationship to his role in building and
maintaining the organization.
4Life'sTM compensation plan is the most scientifically designed program that I have observed in
this industry. The first phase of the 4LifeTM pay plan reflected many of the principles derived
from the extensive study of the industry that I mentioned earlier. Genealogies containing
information on two million people were examined. Statistics on all aspects of network marketing
were compiled, including marketing trends, attrition/retention ratios, sponsoring data, the
relationship between pay plans and growth, the value of various segments of distributors, the
impact of various marketing strategies, product philosophies/strategies and their impact on
success.
The second phase of our pay plan strategy was initiated in March 2004. This phase continued
along the same basic principles that the first phase followed. The actual field experience of the
first phase helped us target areas of the plan that, when refined, would perfect it. Many leaders
from different segments of networking, including Dave Daughtrey (with 20+ years of
experience) and myself, worked closely with David Lisonbee and company management for
more than a year on the final design.
The key to our success in developing the most scientific and effective pay plan in the industry
was the heart behind the minds involved. A great pay plan can only be designed by unselfish

leaders that have a broad vision for lasting success. Each of us recognized the value of properly
rewarding each segment fairly, appropriately and effectively. We realized that a well designed
pay plan should encourage and reward the productive behavior of all of its participants.
Achieving this goal would become a cornerstone to lasting success for the company and its
"partners" in the field.
I identified seven categories of distributors (listed below) from the data derived from the study of
the industry. These categories were targeted by the 4LifeTM pay plan.

Seven Segments of Network Marketers

Grassroots Distributor Product User: A distributor that primarily purchases the product but
does not sponsor other individuals. This segment may have a few customers.
Grassroots Distributor Enroller: Generally, this distributor enrolls a few other distributors and
a few customers. This individual does not demonstrate traits of a leader and doesn't experience
much geometric growth in his organization.
Grassroots Distributor High Achiever: This individual, if properly motivated, can enroll a
significant number of other distributors and customers. This distributor may or may not
demonstrate leadership characteristics. His/her leadership skills are undeveloped but promising.
Often he/she enrolls a great number of distributors but the geometric growth dead ends unless
someone upline is proactively involved in training and support. A few of these individuals can
reach Diamond status through high enrollments and the excitement this generates without a great
deal of help from upline.
Mid-Level Leader: This individual not only can enroll other distributors but can create
moderate geometric growth from his downline partners. Usually, his leadership characteristics
are becoming evident. Generally, this type of leader is at a crossroads. With the right assistance,
this individual can continue developing leadership skills. He/she is involved in problem solving
but is somewhat a novice at it. He/she is able to identify and train other potential leaders to a
degree. The average level of achievement for this segment is a Diamond with a few Diamonds or
a Presidential Diamond within his group.
Upper Mid-Level Leader: This leader is able to identify potential leaders and successfully train
them. He/she is able to organize conference calls and create some marketing tools and systems.
Generally, he/she is charismatic and is a center of influence for other upcoming leaders. He/she
is capable of public speaking. The average achievement level of this segment is a very successful
Presidential Diamond or International Diamond.
Mid-Level Executive Leader or Heavy Hitter: This leader develops overall strategies for his
organization and sets the pace for whatever marketing philosophy will be followed by his
organization. The mid-level heavy hitter develops strategy for his group. He/she is able to garner
respect and loyalty from other leaders. This leader has an overall understanding of the industry
and is able to navigate his organization successfully through competitive elements that threaten
his "kingdom." The heavy hitter is able to convey an image that has a magnetic effect on key

pillars of his/her organization. In 4LifeTM this would be the realm of Gold Internationals. At the
heavy hitter level or Gold International level, there is a wide range of talent and achievement.
Top Level Executive Leader or Heavy Hitter: He/she is everything the mid-level heavy hitter
is but works harder at it or is more talented. There is a very wide range of achievement at the
Gold International Diamond position (GID). The volume requirement for a GID is only $250,000
per month. A few of us at this level have several million dollars in volume each month.
The boundaries between these segments are not precise. With teamwork and successful
interaction with the right upline, each of these categories can achieve far beyond their potential
or experience.
(Footnote: In order to broaden your understanding of the relevance of 4Life'sTM pay plan, I
suggest that you read "Cold Facts Exposed" and "Science Behind an Effective Pay Plan, A
Philosophical and Historical Perspective of Compensation Strategy." Also, be sure to examine
the "Survey of the Top 30 Network Marketing Companies in the World." In this survey, 4LifeTM
was found to pay at least $15 million more in compensation on every $100 million in volume
than the average rate paid by the other 30 companies. This is remarkable when you consider that
4LifeTM invests a greater percentage of its revenue into product research and development than
the great majority of other network marketing companies.)
Keep in mind that compensation strategy is only one factor in the equation for success. The
paradigm of the corporate leaders, marketing philosophy followed, and the company's product
strategy are equally important. Also, support philosophy and strategy are paramount to success.
Let me introduce you to the science behind, what I believe is, the best pay plan in the industry.

"Understanding the 4LifeTM Pay Plan & the Science Behind It"
Terms and Definitions
Seamless Pay Plan: The 4LifeTM pay plan is seamless internationally. This means that we have
the same pay plan throughout the world. You only need to enroll in one country to receive
bonuses on all distributors in your organization throughout the world. All commissions are based
on the first 100LP of the distributors in their pay grid.
LP or Life Points: This refers to the credit you are given for a product purchase. A bonus is paid
on the LP and not the wholesale purchase price. The purpose for LP (some companies call it CV,
BV, PV, etc.) is to compensate for the difference in profit for each product. The cost of raw
materials, research, competition or other manufacturing factors will cause the profit in different
products to vary. Instead of having a different bonus scale for each product, it is more efficient to
assign a different credit value to each product. In comparing pay plans, it is important to compare
the actual credit value of the primary products promoted by each company.
The following example illustrates the relevance of the credit value assigned to each product:

Company A: Cost of product: $100. Credit value of the product: $75. Bonus paid: 30%.
30% x $75 = $22.50 bonus amount
Company B: Cost of product: $100. Credit value of the product: $93. Bonus paid: 25%.
25% x $93 = $23.25 bonus amount
As you can see, even though Company A paid a 30% bonus, it actually paid less cash to the
distributor on the same wholesale price.
GLP: The total group LP volume within the individual's first three levels. (No compression.)
Organizational Volume: The total group volume within the distributors total organization.
Autoship: The distributor sets up a bank draft or credit card draft for a particular order on a
particular date each month.
Back-Up Autoship: The distributor sets up a back-up bank draft or a credit card draft for a
particular order that will only be activated if the individual does not place an order before that
date.
Personally Enrolled: The individual that actually enrolls the new distributor is considered the
enroller.
Personal Volume Requirements: The LP purchase or retail sale that is required of each
distributor in order for that distributor to qualify for a particular achievement position.
Sponsor: The individual directly above the distributor. The enroller and sponsor can be different
people.
Volume Rebate: After a distributor's first purchase, the distributor can receive a 25% rebate on
purchases over 100LP. The distributor must be at least at a Leader 4Life level. The key to
helping individuals at this level is to make sure they have a clear understanding of the products,
and keep reinforcing their belief in the product through the sharing of research and testimonies.
Also, conveying a sense of value (their value to you) and appreciation is important.
Power Bonus Pool: Three percent of 4Life'sTM International sales is divided into a 2% cash
bonus pool and 1% into a luxurious travel program. The cash pool is divided into shares. When a
distributor enrolls three new distributors that purchase at least 100LP in product within a single
month, and these distributors reorder in the second month at least 100LP in product, the enroller
earns a share of the International Power Pool Bonus. Multiple shares can be earned with a $1,000
cap. One percent of the pool will be used to finance the "The Great Escape." Each month, from a
random drawing, 4LifeTM distributors are awarded this dream vacation for two. Distributors
qualifying for this Power Pool will receive one drawing ticket for each new distributor brought in
with at least 100LP and two tickets for each distributor that joins with at least 400LP. In order

for the enroller to earn his shares, the new distributors must submit to 4Life a completed
application and a W-9 or W-8 form.
Premier Bonus Pool: The Premier Pool represents two percent of 4Life'sTM monthly LP.
International Diamonds and above qualify for this bonus. One-half of the amount paid through
the bonus pool is paid on a pro rata basis based on shares earned. Each month that a distributor
qualifies as an International Diamond, one share is earned. Each month that a distributor
qualifies as a Gold International Diamond, two shares are earned. The remaining half is paid on a
pro rata basis monthly based on the volume upon which the individual is paid.
Customer: A consumer that purchases 4LifeTM products that is not registered as a distributor.
An ordinary customer will purchase product from a 4LifeTM distributor at a retail price.
Preferred Customer: A preferred customer (PC) receives a special customer ID# and orders
directly from 4LifeTM. The 4LifeTM distributor who enrolled the preferred customer receives
credit for the PC's purchases.
Pass-Through: A bonus paid to a 4LifeTM Distributor for which another in the downline has not
qualified to receive.
Infinity Bonuses: Diamond positions and above earn Infinity Bonuses. The definition of
infinity is an indefinitely large number. The definition of indefinite is Lacking precise
limits. The depth of an Infinity Bonus is determined by components of each individuals
downline organization.
You always continue earning a infinity bonus until someone under you begins earning that
bonus. Generally, you are paid down through the 3rd level of the blocking distributor.
You start earning an infinity bonus on the level that you qualify for it which is the 4th level.
There are single level Infinity bonuses and Group Infinity Bonuses. The Diamond Infinity Bonus
is 6% on each individual from your forth level down until you are blocked by another Diamond
or higher pin level position. The singlelevel Presidential Diamond Infinity Bonus begins on the
4th level and continues until blocked by a equal of higher level pin level position.
For a Diamond and above the 4th level is a guaranteed infinity bonus. Being guaranteed means
that your 4th level bonus cannot be blocked.
A Group Infinity Bonus is paid on a downline leaders complete organization down through the
3rd level of the blocking distributor.

The Rewards and Achievement Levels of the 4LifeTM Pay Plan

The Science Behind Each Component

Grassroots Distributor Category: Your future organization will consist of 75-80%

grassroots distributors and customers. The grassroots category is a very important factor in your
future success. It is very important that a compensation plan address the needs of this category.
The majority of pay plans in this industry do not effectively address the needs of this category.
The result is massive attrition.
As a side note concerning the grassroots segment of our industry, I would like to say that we
should not look at this category as a failure group. I have observed that a number of leaders in
the MLM industry promote the perspective that people who don't excel in network marketing are
failures because of personal weaknesses. This view is counter-productive. The segment makes up
80% of the industry. A number of these people have different goals, time considerations, and
different value priorities, and should not be perceived as failures. Making this segment feel like
they are perceived as such increases attrition in their ranks. We should convey true appreciation
and value to the people that create 80% of our income. Twenty to thirty percent of the
grassroots distributors are capable of moving into the mid-level leadership category with the
proper encouragement and training. The primary product user category will always stay between
75% and 90% regardless of how many individuals move up into the leadership category. This is
a mathematical certainty due to geometric constants that set these boundaries in every pay plan
(refer to "Science Behind an Effective Pay Plan").
Common short-term causes of attrition are empty promotions, hype, motivation and blaming the
grassroots distributor for not doing what it takes. The cornerstone of retention at the grassroots
level is a unique and effective product. In my 37+ years in nutrition and network marketing, I
have never experienced a product that comes close to Transfer FactorTM in that area. In addition,
4Life ResearchTM has effectively addressed the needs for this category with the following Life
Reward features: Preferred Customer, Associate Position, Leader Position, Leader 4Life Position
and the Power Bonus Pool.
Preferred Customer: The Preferred Customer position is very important to the grassroots
distributor. This customer registers with 4Life ResearchTM and can order products directly from
4LifeTM at the wholesale price. 4LifeTM will ship products directly to the Preferred Customer. A
Leader 4Life will be paid 25% on the LP of all products ordered by the Preferred Customers. All
Preferred Customers must be placed on the first level of their sponsoring distributor.
Commissions are paid upline in the same way the Rapid Reward is paid.
Basic Grassroots Distributor Positions: This segment consists of individuals that may sponsor
a few distributors or have a few customers. Generally, distributors at this level desire to break
even on their product purchases or to supplement their income by a few hundred dollars. 4LifeTM
has provided four features for this segment.

Associate Position: There are two requirements for achieving the Associate position.
1. Purchase at least 50LP per month.
2. Purchase a distributor kit.

Rewards:

1.
2.
3.
4.

A bonus of 2% on all first level distributors

A bonus of 15% on all on second level distributors
A bonus of 15% on all Preferred Customers
Participation in the Power Pool of 3% of the International sales volume

Leader Position: There are four requirements for reaching the Leader position.
1. Purchase 100LP in product each month.
2. Set up either an autoship or back-up autoship for at least 100LP.
3. Enroll four distributors that purchase 100LP per month. At least two of these distributors
need to be on your first level.
4. Purchase a distributor kit.
*There are no time limits for reaching the Leader position.

Rewards:
1. Volume purchase rebate - 4LifeTM will pay you a bonus of 25% on all LP above your
monthly purchase of 100LP.
2. A bonus of 25% on all of your Preferred Customers' purchases
3. A Rapid reward bonus of 25% on all of the first purchases of new distributors enrolled by
you
4. A bonus of 2% on all first level distributors
5. A 25% bonus on all second level distributors
6. A 5% bonus on all third level distributors' customers
7. The privilege of participating in the Power Pool Bonus

Leader 4Life: The Leader 4Life position has the following requirements.
1. Purchase 100LP in product each month.
2. Set up either an autoship or back-up autoship of 100LP.
3. Purchase a distributor kit.
(These requirements must be fulfilled at the time of enrollment. A Leader4Life does not have to
personally enroll a certain number of distributors for qualification.)

Rewards:
1. Volume purchase rebate - 4LifeTM will pay you a bonus of 25% all LP above your
monthly purchase of 100LP.
2. A bonus of 25% on all of the purchases by your Preferred Customers
3. A Rapid reward bonus of 25% on all of the first purchases of new distributors enrolled by
you
4. A bonus of 2% on all first level distributors
5. A 25% bonus on all second level distributors
6. A 5% bonus on all third level distributors' customers

7. The privilege of participating in the Power Pool Bonus

The Science Behind the Grassroots Features

The Preferred Customer (PC) position is designed to give new distributors an immediate avenue
to create income. The 25% bonus on PCs will quickly provide this income. Grassroots
distributors are usually able to secure customers more easily than enrolling distributors. The
features of the PC position accommodate the dynamics of the part timer's circumstances.
Generally, the grassroots distributor is working a full-time job with little extra time and has very
little experience in servicing customers and keeping records. Once the Preferred Customer is
connected to 4Life ResearchTM, the company services the customer directly. The PC position
facilitates the need to maintain a positive break-even ratio that I refer to in my synopsis.
The Volume Purchase feature allows a distributor to receive a rebate or bonus of 25% of all
purchases above 100LP. In order to qualify for this bonus, the distributor qualify as a Leader or
higher rank. This feature allows the grassroots distributor to reduce his cost of consuming
4LifeTM products, leaving more funds available to build his business. Also the VP feature
encourages more product purchases, leading to more product experience. The more the
grassroots distributor experiences the product, the more he will feel comfortable in promoting the
product.
The Rapid Reward bonus provides the grassroots distributor immediate income with which to
build his 4LifeTM business. With more immediate funds available to the grassroots distributor,
he/she will experience less attrition. (One reason for attrition is the cost of building a network
marketing business.)
The Power Pool Bonus (PPB) provides the grassroots distributor with the opportunity to quickly
earn a serious income and to reinvest into his future. Also, this feature is a great psychological
encouragement for the new distributor to immediately move into action. One great challenge, at
the grassroots level, is to move new distributors into immediate action. The PPB provides an
avenue for the builder to finance the development of an income without digging into savings and
overcharging his credit cards. An extra $1,000 comes in handy when you are busy building your
future.
The Associate position is created for the very base grassroots distributor that wants or needs to
enter the 4LifeTM opportunity at the least possible cost. This gives an individual a chance to work
his way up the ladder in spite of a cash flow challenge.
The 2% bonus on all first level distributors is purposely a small bonus. A grassroots distributor
will have the least number of distributors on his first level. This leaves more bonus money
available for payout on the second level where duplication will create more distributors.
The 25% bonus on the second level provides the grassroots distributor with immediate income.
This bonus promotes a better break-even ratio for your overall organization, reducing attrition.
(See synopsis, "Science Behind an Effective Pay Plan.") The 25% bonus on the second level

encourages sponsors to assist their first level distributors in enrolling other distributors. This
bonus rewards the sponsor well for his efforts.
4Life'sTM compensation plan pays its distributors up to 500% more on the second level than the
average MLM company does. Also, keep in mind that the spread between LP and the wholesale
price on 4Life'sTM transfer factor products is less than the majority of other companies. This is a
powerful feature.
Consider the power of the following example when you enroll three distributors during the same
month:
3 x 100LP = 300LP x 25% Rapid Reward = $ 75US
*Power Pool Bonus = $100US ($100US to $200)
Total = $175US ($175-$275)
(*Power Pool Bonus will vary depending on how many people qualify for the pool.)
You create 300LP in volume and get paid between $175US and $275US in bonuses. WOW! You
are being rewarded a bonus of 58% to 92% for your efforts.
Three-level group qualification requirements: Although this requirement is for the leadership
level, it is a scientifically designed benefit for the grassroots segment. There is a tendency for
leaders to enroll a number of distributors but not fulfill their promises of support. The typical
leader in this industry will enroll anywhere from 25 to 100 individuals. The leader will identify a
few leaders within his downline and work with them, and the rest of the group will rarely hear
from this leader. The norm for this industry is for leaders to go downline to find other leaders
and to only share their personal mentoring talents with other leaders. It is not fair and honest to
bring ordinary distributors into the program and then leave them stranded without a personal
available sponsor. Three-level volume is in compressed.
The three-level group bonus forces the Leader to support, train and lead the very people he
sponsored. This requirement will encourage the leader to develop systems and marketing tools
for the grassroots distributor in order to keep his three-level volume strong. In the long-run, this
strategy is best for the leader because it will reduce attrition in the grassroots segment.
Examples of how to quickly break even and move into profit:
1. You purchase 100LP in product per month.
2. You enroll 4 Preferred Customers that purchase 100LP per month. Your bonus is 25% of
400LP earning you a total of $100US.
3. You enroll 8 Preferred Customers that purchase 50LP per month. Your bonus is 25% of
400LP earning you a total of $100US.
4. You enroll one new distributor on your first level that purchase 100LP per month. You
and your new distributor on first level enroll a total of four new distributors on your

second level. You earn 2% on first level or $2. You earn 25% on second level distributors
X $100 for a total monthly bonus of $102US.
Any combination of the above.
4LifeTM has addressed the needs of the product user and grassroots distributor very well!

Leadership and Builder Positions

The following two achievement levels or positions target mid-level leaders:

*Diamond: There are five qualifications for achieving the Diamond status.
1. Purchase 100LP in product each month.
2. Set up either an autoship or back-up autoship for at least 100LP.
3. Enroll six distributors that purchase 100LP per month. At least three of these distributors
must be on your firstlevel.
4. Purchase a distributor kit.
5. You must have a total three-level volume of at least 3,000LP each month.
(*You can qualify for the Diamond position at the time of enrollment if you purchase at least
400LP in product, set up an autoship (or back-up autoship), and purchase a distributor kit.
4LifeTM will waive the three-level volume and enrollment qualifications for the remainder of the
enrollment month and for two additional months. You can extend this grace period by qualifying
for the Power Bonus Pool each month from the second month on.)

Rewards:
1. Volume purchase rebate - 4LifeTM will pay you a bonus of 25% on all of the LP from
personal purchases above your monthly purchase of 100LP.
2. A bonus of 25% on all of your Preferred Customers' purchases
3. A Rapid reward bonus of 25% on all of the first purchases of new distributors enrolled by
you
4. A bonus of 2% on all first level distributors
5. A 25% bonus on all second level distributors
6. A 5% bonus on all third level distributors' customers
7. A guaranteed 4th level 6% infinity bonus
8. A 6% infinity bonus from the 5th level down to and including the 3rd level of the next
qualifying Diamond (or higher rank)
9. The privilege of participating in the Power Pool Bonus

An example of how the Diamond infinity bonus works:

You earn an infinity bonus of 6% to the bottom of your leg unless someone qualifies at Diamond
or above in that particular leg. A Diamond in one leg doesn't affect what you earn in the rest of
your legs.

(You Earn) Diamond

Level
Level
Level
Level
Level
Level
Level
Level
Level

1
2
3
4
5
6
7
8
9

2%
25%
5%
6% (guaranteed)
6% (1st Downline Diamond earns)
6% 2% Level 1 of 1st Diamond downline from you.
6% 25% Level 2 of 1st Diamond downline from you.
6% 5% Level 3 of 1st Diamond downline from you.
0% 6% Level 4 of 1st Diamond downline from you.

He gets paid down to the third level of the next Diamond.

Presidential Diamond Requirements:

1. Purchase 100LP in product each month.
2. Set up either an autoship or back-up autoship for at least 100LP.
3. Enroll eight distributors that purchase 100LP per month. At least four of these
distributors must to be on your first level.
4. Purchase a distributor kit.
5. You must have a total three-level volume of at least 10,000LP each month.
(uncompressed)
6. You must have two separate legs with a qualified Diamond in each leg.

Rewards:
1. Volume purchase rebate - 4LifeTM will pay you a bonus of 25% on all of the LP from
personal purchases above your monthly purchase of 100LP.
2. 2. A bonus of 25% on all of your Preferred Customers' purchases
3. A Rapid reward bonus of 25% on all of the first purchases of new distributors enrolled by
you
4. A bonus of 2% on all first level distributors
5. A 25% bonus on all second level distributors
6. A 5% bonus on all third level distributors' customers
7. A guaranteed 4th level 12% infinity bonus
8. A 12% infinity bonus from the 5th level down to and including the 3rd level of the next
qualifying Diamond, Presidential Diamond or higher rank
9. A 6% bonus from the 4th level of the first Diamond downline through the 3rd level of the
first Presidential Diamond or higher rank
10. A 3% bonus from the 4th level of the first Presidential Diamond down through the 3rd
level of the second Presidential Diamond
11. A 3% bonus from the 4th level of the second Presidential Diamond down through the 3rd
level of the third Presidential Diamond
12. The privilege of participating in the Power Pool Bonus

An example of how the Presidential Diamond Bonus works:

Presidential Diamond
Level 1
Level 2
Level 3
Level 4
Level 5
Level 6
Level 7
Level 8

2%
25%
5%
12%
12%
12%
12%
12%

1st Diamond
Level 1

Level 9
Level 10
Level 11
Level 12
Level 13
Level 14
Level 15
Level 16
Level 17
Level 18
Level 19
Level 20
Level 21
Level 22
Level 23
Level 24
Level 25
Level 26
Level 27
Level 28
Level 29
Level 30
Level 31

12%
12%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
0

Level 2
Level 3
Level 4
Level 5
2nd Diamond
Level 1
Level 2
Level 3
1st Presidential Diamond
Level 1
Level 2
Level 3
Level 4
1st Presidential Diamond 3% Bonus Begins
2nd Presidential Diamond
Level 1
Level 2
Level 3
Level 4
2nd Presidential Diamond3% Bonus Begins
3rd Presidential Diamond
Level 1
Level 2
Level 3
Level 4

Science Behind the Mid-level Builder or Leadership Features

Diamond and Presidential Diamond
While the grassroots segment is most important to long-term stability and retention because
ultimately it will always be the largest segment, the mid-level leadership segment is very
important for the growth of an organization. These builders and future leaders are the energy of
the team. Mid-level builders work in the trenches with the foot soldiers, training, motivating and
leading. Successful mid-level leaders are the conduits that connect the distributors scattered
throughout the organization with the marketing philosophy and marketing strategies of the
executive leaders of the organization. Often this segment is neglected. Our independent study
found that when the bridge between grassroots distributors and executive level leadership is too
great, an organization will never reach its full potential growth. The mid-level leader is that
bridge. A well-rewarded mid-level leader segment will be energetic and drive the growth.

The incentive features for this segment need to be very creative and scientifically designed. A
successful incentive program should avoid encouraging plateaus or "parking lots." When there
are wide gaps between achievement levels, leaders have a tendency to stagnate on the front edge
of the gap. Also, if the plan pays too much too soon, it will short-change the leader from
achieving his full potential. Why work harder and pull from deep within your best effort if the
incentive isn't there?
A plan with carefully designed transitional stages will empower the leader to reach his highest
potential. The journey to one's ultimate best isn't natural or easy. A wise compensation plan will
encourage the right behavior at the right point in the leader's ascension.
The creators of a compensation plan use the various bonuses, group volume qualifications and
structural requirements to mold a multi-talented team of leaders into a synergistic growth
machine. The following are the features that have been designed to empower this leadership tier.
Infinity Bonus: The infinity bonus is an incentive that rewards the mid-level leader who begins
to drive the growth in-depth, creating a strong foundation for a secure and long-lasting residual
income. While the three level bonuses primarily reward the enroller and individual that works
with their immediate downline distributors, the Infinity Bonus rewards the individual that
assumes a wider range of leadership responsibilities.
The infinity bonus encourages and rewards a leader to help distributors from his fourth level
down. It is important to create a two-step Infinity Bonus so that a leader will be encouraged to
develop leadership in-depth. Without a two-step Infinity Bonus, there would be a temptation to
avoid developing a leader that would block your infinity bonus.
The Diamond Infinity Bonus of 6% is for the mid-level leader that is on his way up the ladder of
leadership. The Presidential Diamond Infinity Bonus of 12% targets the aggressive and more
experienced mid-level leader that is developing other leaders. This bonus can be substantial.
The three-level volume requirement for the Diamond position (and above) encourages the leader
to develop his leadership skills and build a more solid foundation for future success. There is a
tendency for leaders to skip over grassroots distributors and work with individuals that already
have marketing skills. In the long-run, this practice will rob the leader of success through
attrition and weak spots in his downline.
The three-level volume requirements of $3,000, $10,000 and $20,000 for these mid and upperlevel leaders serve as tools in the creation of the escalator of success.
The personal enrollment requirements: The right balance in personal enrollment requirements is
essential for maximum growth. Requiring too many enrollments will rob the broader group of
the leader's organizational skills. Core leaders need to be able to work deep within their
organizations. Requiring the leader to sponsor too wide will keep this from happening.
It is wise to require a leader to enroll a moderate number of distributors. A leader should have
the best mentoring skills. The leaders within an organization create a foundation of experience,

knowledge and skills that permeate throughout the organization. These leaders are a type of
lifeline to the organization. In my 37+ years of network marketing, I have observed that, when a
core group of leaders leaves a company or organization, the unit falls apart and excessive
attrition takes place.
The core followers that surround a leader duplicate many of the leader's skills and characteristics.
Requiring each leader to mentor a personal group of disciples will only strengthen the
organization's foundation.
Presidential Diamond Bonus: As the more experienced mid-level leader climbs the ladder of
leadership, he will develop a number of other leaders at his same achievement level. A
compensation plan must reward the leader for doing so. 4LifeTM rewards the Presidential
Diamond for developing leaders at the PD level.
A Presidential Diamond will receive a 3% bonus on his first downline Presidential Diamond's
business through the 3rd level of the second downline Presidential Diamond's business. When
the first 3% bonus is blocked at the 4th level of the second downline PD, the Presidential will
receive a 3% bonus from the 4th level downline through the 3rd level of the third Presidential
Diamond.

International Diamond Requirements:

1. Purchase 100LP in product each month.
2. Set up either an autoship or back-up autoship for at least 100LP.
3. Enroll ten distributors that purchase 100LP per month. At least five of these distributors
must be on your first level.
4. Purchase a distributor kit.
5. You must have a total three-level volume of at least 20,000LP each month.
(uncompressed)
6. You must have two separate legs with a qualified Presidential Diamond in each leg.

Rewards:
1. Volume purchase rebate - 4LifeTM will pay you a bonus of 25% on all of the LP from
personal purchases above your monthly purchase of 100LP.
2. A bonus of 25% on all of your Preferred Customers' purchases
3. A Rapid reward bonus of 25% on all of the first purchases of new distributors enrolled by
you
4. A bonus of 2% on all first level distributors
5. A 25% bonus on all second level distributors
6. A 5% bonus on all third level distributors' customers
7. A guaranteed 4th level 12% infinity bonus
8. A 12% infinity bonus from the 5th level down to and including the 3rd level of the next
qualifying Diamond, Presidential Diamond or higher rank
9. A 6% bonus from the 4th level of the first Diamond downline through the 3rd level of the
first Presidential Diamond or higher rank

10. A 3% bonus from the 4th level of the first Presidential Diamond down through the 3rd
level of the second Presidential Diamond
11. A 3% bonus from the 4th level of the second Presidential Diamond down through the 3rd
level of the third Presidential Diamond
12. A 2% bonus from the 4th level of the first International Diamond down through the 3rd
level of the second International Diamond
13. A 2% bonus from the 4th level of the second International Diamond down through the
3rd level of the third International Diamond
14. The privilege of participating in the Power Pool Bonus
15. A share of the Premiere Bonus Pool (2% of the International Diamond Pool)

An example of how the International Diamond Bonus works:

International Diamond
Level
1
Level
2
Level
3
Level
4
Level
5
Level
6
Level
7
Level
8
Level
9
Level
10
Level
11
Level
12
Level
13
Level
14

2%
25%
5%
12%
12%

Diamond

12%

Level 1

12%

Level 2

12%

Level 3

6%

Level 4

6%

Presidential
Diamond

6%

Level 1

6%

Level 2

6%

Level 3

3%

Level 4

1st Presidential Diamond 3% Bonus Begins

Level
15
Level
16
Level
17
Level
18
Level
19

3%

Level 5

3%

2nd Presidential
Diamond

3%

Level 1

3%

Level 2

3%

Level 3

Level
3%
20

Level 4

Level
21
Level
22
Level
23
Level
24
Level
25

3%

1st International
Diamond

3%

Level 1

3%

Level 2

3%

Level 3

2%

Level 4

Level
2%
26
Level
27
Level
28
Level
29
Level
30
Level
31
Level
32
Level
33
Level
34

2nd Presidential Diamond 3% Bonus Begins (This bonus is paid

through 3rd level of either the 3rd Presidential Diamond or the 3rd
level of the 1st International Diamond whichever comes first)

1st International Diamond 2% Bonus Begins

2nd
International
Diamond

2%

Level 1

2%

Level 2

2%

Level 3

2%

Level 4

2%

3rd International
Diamond

2%

Level 1

2%

Level 2

2%

Level 3

2nd International Diamond 2% Bonus Begins

Level
35

Level 4

Gold International Diamond:

1. Purchase 100LP in product each month.
2. Set up either an autoship or back-up autoship for at least 100LP.
3. Enroll twelve distributors that purchase 100LP per month. At least six of these
distributors must be on your first level.
4. Purchase a distributor kit.
5. You must have a total three-level volume of at least 20,000LP each month.
(uncompressed)
6. You must have three separate legs with a qualified International Diamond in each leg.
7. You must have at least 250,000LP in overall organization.

Rewards:
1. Volume purchase rebate - 4LifeTM will pay you a bonus of 25% on all of the LP from
personal purchases above your monthly purchase of 100LP.
2. A bonus of 25% on all of your Preferred Customers' purchases
3. A Rapid reward bonus of 25% on all of the first purchases of new distributors enrolled by
you
4. A bonus of 2% on all first level distributors
5. A 25% bonus on all second level distributors
6. A 5% bonus on all third level distributors' customers
7. A guaranteed 4th level 12% infinity bonus
8. A 12% infinity bonus from the 5th level down to and including the 3rd level of the next
qualifying Diamond, Presidential Diamond or higher rank
9. A 6% bonus from the 4th level of the first Diamond downline through the 3rd level of the
first Presidential Diamond or higher rank
10. A 3% bonus from the 4th level of the first Presidential Diamond down through the 3rd
level of the second Presidential Diamond
11. A 3% bonus from the 4th level of the second Presidential Diamond down through the 3rd
level of the third Presidential Diamond
12. First International Diamond Bonus: A 2% bonus from the 4th level of the first
International Diamond down through the 3rd level of the second International Diamond
13. Second International Diamond Bonus: A 2% bonus from the 4th level of the second
International Diamond down through the 3rd level of the third International Diamond
14. A 2% bonus from the 4th level of the first Gold International Diamond down through the
3rd level of the second Gold International Diamond
15. A 2% bonus from the 4th level of the second Gold International Diamond down through
the 3rd level of the third Gold International Diamond
16. The privilege of participating in the Power Pool Bonus

17. A share of the Premiere Bonus Pool (2% of the International Diamond Pool)

An example of the Gold International Diamond bonus:

Gold International Diamond
Level 1 2%
Level 2 25%
Level 3 5%
Level 4 12%
Level 5 12%
Level 6 12%
Level 7 12%
Level 8 12%
Level 9 6%
Level 10 6%
Level 11 6%
Level 12 6%
Level 13 6%

Diamond
Level 1
Level 2
Level 3
Level 4
Presidential Diamond
Level 1
Level 2
Level 3

Level 14 3%

Level 4

Level 15
Level 16
Level 17
Level 18
Level 19
Level 20
Level 21
Level 22
Level 23
Level 24
Level 25
Level 26
Level 27
Level 28
Level 29
Level 30
Level 31
Level 32

3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
2%
2%
2%
2%
2%
2%
2%
2%

Level 5
2nd Presidential Diamond
Level 1
Level 2
Level 3
Level 4
3rd Presidential Diamond
Level 1
Level 2
Level 3
Level 4
1st International Diamond
Level 1
Level 2
Level 3
Level 4
2nd International Diamond
Level 1

1st Presidential Diamond 3% Bonus Begins

2nd Presidential Diamond 3% Bonus Begins

1st International Diamond 2% Bonus Begins

Level 33
Level 34
Level 35
Level 36
Level 37
Level 38
Level 39
Level 40

2%
2%
2%
2%
2%
2%
2%
2%

Level 2
Level 3
Level 4
3rd International Diamond
Level 1
Level 2
Level 3
Level 4

Level 41
Level 42
Level 43
Level 44
Level 45
Level 46
Level 47
Level 48
Level 49
Level 50
Level 51
Level 52
Level 53
Level 54
Level 55

2%
1st Gold International
2%
Level 1
2%
Level 2
2%
Level 3
2%
Level 4
2% 2nd Gold International Diamond
2%
Level 1
2%
Level 2
2%
Level 3
2%
Level 4
2nd Gold International 2% Bonus Begins
2% 3rd Gold International Diamond
2%
Level 1
2%
Level 2
2%
Level 3
0
Level 4

2nd International Diamond 2% Bonus Begins

Begins 1st Gold International 2% Bonus Begins

Platinum Diamond: All requirements and rewards for this position are the same as for the
Gold International Diamond except for the total organizational volume of 1,000,000LP.

The Science Behind the Upper-Mid Level and Executive Leader

Features
International Diamonds, Gold International Diamonds & Platinum
The compensation features must also reward the leaders for identifying and training other
leaders. Some pay plans discourage leaders from helping other leaders reach new levels of
achievement. Sometimes it means a cut in pay for one leader to help another leader advance.
4LifeTM uses the three-level volume requirement of 20,000LP to encourage the executive level
leaders to develop strategies, systems and training that will work for grassroots distributors. The

top level leader cannot afford to invest, on a continuous basis, his personal time in maintaining
three-level volume.
The majority of three-level volume is produced by grassroots distributors. If an executive leader
spends a majority of his time building and replacing what has fallen away, he doesn't have time
to develop quality leadership throughout the world. This predicament pressures the leader to
develop automatic systems, marketing tools and effective training that will support grassroots
distributors. Although leaders attempt to create these strategies, generally, they fall short.
The three-level volume requirement is a powerful force to encourage the leader to take time to
create more effective strategies for the grassroots distributor. Another purpose of the three-level
volume requirement is to appropriately reward the upline sponsor who brought the leader into the
business. There is a tendency for the executive leader to only fulfill whatever volume is required
and then move deeper within the organization in search of other leaders. If the three-level
volume requirement is too low, the sponsor isn't rewarded appropriately.
A careful balance is needed between three-level volume and overall group volume. If the threelevel volume is too high, it will rob the overall organization of the leader's personal skills. If the
three-level volume is too low, there will not be enough incentive to motivate the leader to
develop the best possible systems and strategies for grassroots distributors.
4LifeTM uses a combination of structural requirements and overall group volume to create the
"stepping stone" process that encourages the development of leadership throughout the
organization in order to build a strong foundation for continuous growth and the retention of its
distributors.
Volume requirements without structural requirements have a tendency to leave large groups of
distributors stranded without intermediate levels of leaders to manage the growth of that
particular group. It is important to have leaders of various levels of experience scattered
throughout your organization. These leaders serve as pillars supporting the superstructure of your
organization. Every distributor will function better when there is a leader within reach.
International Diamonds are required to have one Presidential Diamond in two different legs.
Each of these PDs are required to have one Diamond in two different legs. This equation,
theoretically, could provide six leaders per 20,000LP. A smart leader will try to position leaders
in such a manner that every 20,000-30,000LP will be supported by at least six leaders. It is better
to work smart and save yourself a great deal of headaches in the future. An organization without
sound management will suffer a great deal of attrition.
The group volume requirement of 250,000LP for Gold International Diamond, along with the
two 2% Gold Bonuses, creates the potential for very deep penetration. This category is for the
"super heavyweights." A lower volume requirement would have created excessive blockage and
limited the depth of penetration. In order to attract the "super heavyweights" it is important to
provide the potential for deep penetration.

The Premiere Bonus of 2% creates an incentive for a team paradigm. The influence of a Gold
International Diamond has a tendency to cross organizational boundaries. This bonus is a reward
for such influence. In addition, the company needs the Gold Internationals to work together
unselfishly in order to help develop company-wide strategies. The Premiere Bonus is 2% of the
total international sales volume. One-half of this bonus pool is divided equally between
International Diamonds and above. The other half is decided based on the volume of each
participant.
The Platinum bonus is one percent of the total International sales volume. This pool is divided
between Platinum International Diamonds.
In my 37+ year career, I have never encountered a compensation plan so scientifically designed.
The 4LifeTM pay plan addresses the needs of each segment of networkers better than any other
program that I have studied. The purpose of a compensation plan is to encourage and reward
productive behavior. This compensation strategy addresses these core purposes better than any
other pay plan that our research team examined.
- Mike Akins