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Orvanna

Orvanna International

The Orvanna
Compensation Plan

This is the compensation plan for the Conductors of Orvanna, the company that sells artificial intelligence (AI) agents by subscription. It sets out, in full and with the arithmetic in plain sight, how a Conductor is paid: three earning layers, one qualification gate, five ranks, and a hard ceiling on what any single order can ever pay.

Demonstration document Read start to finish

Orvanna is a demonstration company. Its products, its Conductors and the organisations shown in this document are not real, and no money is paid to anybody under this plan. Nothing here is an offer to enrol, an offer to sell, or a contract. Section fifteen states this in full.

3earning layers
1qualification gate
5ranks
20%of the price is the most any one order can ever pay

Contents

What is in this document

Read it in order once. It gives you the words first, then the volume, then the single gate that decides whether anybody is paid at all, and only then the money. Each section opens with a drawing, and the words underneath the drawing say the same thing again, so nothing depends on your reading a picture correctly.

There is a companion page, the Orvanna compensation plan page. It covers the same plan and separates what is running today from what is only modelled. This document does not draw that line, so read that page for it.

Some of the drawings are wider than a phone screen. Those scroll sideways inside their own frame, and the page itself never does. On paper every drawing is fitted to the page.

  1. 1How you earn, in one page
  2. 1AWhere each part of this plan comes from
  3. 2The words, defined before they are used
  4. 3Volume, and the eighty percent rule
  5. 4The qualified month: the single gate
  6. 5The organisation every example uses
  7. 6Layer one: the five paid levels
  8. 7Layer two: the Builder override
  9. 8Layer three: the second-leg bonus
  10. 9The rank ladder
  11. 10The twenty percent ceiling
  12. 11Nothing carries over
  13. 12A complete month, to the cent
  14. 13What this plan never pays for
  15. 14Key terms
  16. 15Legal notice and income disclosure

How to read the drawings

Colour carries meaning in every drawing in this document, and it means the same thing every time.

  • Green is layer one, level pay. The 10, 5, 5, 3 and 2 percent paid up the levels.
  • Blue is layer two, the Builder override, and it also marks anybody holding Builder rank.
  • Teal is layer three, the second-leg bonus, and it also marks the leg the bonus is paid on.
  • Amber is the ceiling, the 20 percent of the price that no order can pay beyond.
  • Red is what is not paid: an unqualified month, a level out of reach, or a claim the ceiling left nothing for.

Nothing in this document depends on telling those colours apart. Every drawing also labels its parts in words, and every rule shown in a drawing is written as a sentence somewhere in the text.

Acronym key, used throughout and spelled out again on first use in the body: artificial intelligence (AI), Personal Volume (PV), Sales Volume (SV), Commissionable Volume (CV), Team Volume (TV).

Section one

How you earn, in one page

Orvanna sells artificial intelligence (AI) agents by subscription. Conductors subscribe to agents and introduce other people who do the same. The plan pays Conductors on the volume their organisation buys, through three layers that all draw from the same capped pot of money.

One order, followed all the way to every person it pays A hundred dollar order carries a hundred of Personal Volume and a hundred of Sales Volume, eighty dollars of Commissionable Volume, and a ceiling of twenty dollars. The buyer's sponsor, who holds Builder rank, receives eight dollars of level pay at ten percent and one dollar sixty of second-leg bonus at two percent, nine dollars sixty in total. The person above that sponsor receives four dollars of level pay at five percent and one dollar twenty of Builder override at one point five percent, five dollars twenty in total. Nobody else is paid on this order. Fourteen dollars eighty of the twenty dollar ceiling is paid and five dollars twenty is unspent. One order $100.00 Personal and Sales Volume 100.00 Commissionable Volume, 0.80 x 80.00 Ceiling, 20% of the price 20.00 THE PERSON ABOVE THE SPONSOR qualified, reaches level 2 and beyond receives 5.20 from this order THE BUYER'S SPONSOR qualified, holds BUILDER this month receives 9.60 from this order THE BUYER one $100.00 agent, CV 80.00 is paid nothing on their own order 9.60 5.20 PAID TO THE PERSON ABOVE THE SPONSOR 4.00 level pay at level 2: 0.05 x 80.00 1.20 Builder override: 0.015 x 80.00 The buyer sits inside the sponsor's group, and the sponsor is a Builder. Total to this person: 5.20 PAID TO THE BUYER'S SPONSOR 8.00 level pay at level 1: 0.10 x 80.00 1.60 second-leg bonus: 0.020 x 80.00 The buyer heads this sponsor's second-strongest leg. Total to this person: 9.60 NOBODY ELSE IS PAID ON THIS ORDER No payment for enrolling anybody. No payment to the buyer. Anything the rates describe but nobody can receive is paid to nobody. THE WHOLE CEILING OF 20.00, DRAWN TO SCALE 9.60 to the sponsor 5.20 above 5.20 unspent Four payments, two people, three layers: 14.80 paid of a 20.00 ceiling, with 5.20 never claimed.
One order, followed all the way to every person it pays A hundred dollar order carries a hundred of Personal Volume and a hundred of Sales Volume, eighty dollars of Commissionable Volume, and a ceiling of twenty dollars. The buyer's sponsor, who holds Builder rank, receives eight dollars of level pay at ten percent and one dollar sixty of second-leg bonus at two percent, nine dollars sixty in total. The person above that sponsor receives four dollars of level pay at five percent and one dollar twenty of Builder override at one point five percent, five dollars twenty in total. Nobody else is paid on this order. Fourteen dollars eighty of the twenty dollar ceiling is paid and five dollars twenty is unspent. One order $100.00 Personal and Sales Volume 100.00 Commissionable Volume, 0.80 x 80.00 Ceiling, 20% of the price 20.00 THE PERSON ABOVE THE SPONSOR 5.20 qualified, reaches level 2 and beyond 4.00 level pay at level 2: 0.05 x 80.00 1.20 Builder override: 0.015 x 80.00 The buyer sits inside the sponsor's group, and the sponsor is a Builder. THE BUYER'S SPONSOR 9.60 qualified, holds BUILDER this month 8.00 level pay at level 1: 0.10 x 80.00 1.60 second-leg bonus: 0.020 x 80.00 The buyer heads this sponsor's second-strongest leg. THE BUYER one $100.00 agent, CV 80.00 is paid nothing on their own order NOBODY ELSE IS PAID ON THIS ORDER No payment for enrolling anybody. No payment to the buyer. Anything the rates describe but nobody can receive is paid to nobody. THE WHOLE CEILING OF 20.00, DRAWN TO SCALE 9.60 5.20 5.20 9.60 to the sponsor 5.20 above 5.20 unspent Four payments, two people, three layers: 14.80 paid of a 20.00 ceiling, with 5.20 never claimed.
Scrolls sideways inside its frameFigure 1What the drawing shows. One $100.00 order followed all the way to everybody it pays. The order carries 100 of Personal Volume, so 100.00 of Sales Volume, so 80.00 of Commissionable Volume, and its ceiling is 20.00. The buyer's sponsor, who holds Builder rank this month, is paid 8.00 of level pay at 10 percent and 1.60 of second-leg bonus at 2.0 percent, which is 9.60 in total. The person above that sponsor is paid 4.00 of level pay at 5 percent and 1.20 of Builder override at 1.5 percent, which is 5.20 in total. The buyer is paid nothing on their own order and nobody else is paid at all. Of the 20.00 ceiling, 14.80 is paid and 5.20 is never claimed by anybody. What it proves is the entire plan in one picture: several people are paid on one order, each for a different reason, and the sum of everything they receive is held below 20 percent of the price by the arithmetic that calculates it.

That is the whole plan in one order. The rest of this document explains each of the four payments, why each person qualified for it, and what happens when the ceiling is reached.

The three earning layers and the ceiling they share A single one hundred dollar order produces eighty dollars of Commissionable Volume and can pay a maximum of twenty dollars. Layer one, level pay, draws first at ten, five, five, three and two percent. Layer two, the Builder override, draws next at one point five percent on a first generation and one percent on a second. Layer three, the second-leg bonus, draws last at two to two point five percent. The three together can never exceed twenty dollars. ONE ORDER OF $100.00 A MONTH Commissionable Volume 80.00, which is 0.80 of the price. Most this order can ever pay, all layers added: 20.00. 1 LEVEL PAY 10, 5, 5, 3 and 2 percent of the buyer's Commissionable Volume, up to five levels up. Drawn first and never reduced. 2 BUILDER OVERRIDE 1.5 percent of the whole group volume of a Builder below you, and 1.0 percent on a second generation of Builders. 3 SECOND-LEG BONUS 2.0 percent of your second-strongest leg's volume, rising to 2.3 and 2.5 percent as you hold three and four active legs. Layers 2 and 3 are paid only out of what layer 1 left behind on that order.
The three earning layers and the ceiling they share A single one hundred dollar order produces eighty dollars of Commissionable Volume and can pay a maximum of twenty dollars. Layer one, level pay, draws first at ten, five, five, three and two percent. Layer two, the Builder override, draws next at one point five percent on a first generation and one percent on a second. Layer three, the second-leg bonus, draws last at two to two point five percent. The three together can never exceed twenty dollars. ONE ORDER OF $100.00 A MONTH Commissionable Volume 80.00, which is 0.80 of the price. Most this order can ever pay, all layers added: 20.00. 1 LEVEL PAY 10, 5, 5, 3 and 2 percent of the buyer's Commissionable Volume, up to five levels up. Drawn first and never reduced. 2 BUILDER OVERRIDE 1.5 percent of the whole group volume of a Builder below you, and 1.0 percent on a second generation of Builders. 3 SECOND-LEG BONUS 2.0 percent of your second-strongest leg's volume, rising to 2.3 and 2.5 percent as you hold three and four active legs. Layers 2 and 3 are paid only out of what layer 1 left behind on that order.
Scrolls sideways inside its frameFigure 2What the drawing shows. A single order of $100.00 carries 80.00 of Commissionable Volume and can never pay more than 20.00 in total. Level pay draws on that 20.00 first and is always paid in full. The Builder override draws on what remains. The second-leg bonus draws on what is left after that. What it proves is that the three layers are not three separate budgets: they share one capped amount per order, so adding layers cannot raise what the order costs the company.

The plan in six sentences

  1. Everything your account buys in a calendar month is added into your Sales Volume (SV), and 80 percent of that becomes Commissionable Volume (CV), the only figure any percentage is applied to.
  2. If your own SV reaches 100.00 in a month, you are qualified, and qualifying is the only gate there is.
  3. Layer one pays you 10 percent of the CV of everybody you personally sponsored, then 5, 5, 3 and 2 percent of the next four levels below them, as deep as your rank reaches.
  4. Layer two pays you 1.5 percent of the entire group volume of any Conductor below you who holds Builder rank this month, and 1.0 percent again on a second generation of Builders below those.
  5. Layer three pays you 2.0 percent of your second-strongest leg's volume, stepping to 2.3 percent at three active legs and 2.5 percent at four or more.
  6. No order ever pays out more than 20 percent of its price across all three layers combined, and every layer is recalculated from scratch every month.

The one sentence to hold on to. Layers two and three are funded entirely by money layer one did not claim. They redirect the plan's existing ceiling toward people who develop other people; they do not raise it.

Section 1A

Where each part of this plan comes from

Nothing in this plan is new arithmetic. Every mechanism in it has decades of industry service, and anybody who knows this industry should recognise every part on sight. What is new is the assembly, and that each part is fitted here with its best-known failure mode absent from the arithmetic rather than forbidden by a rule.

Four proven mechanisms assembled into one plan, each with its known failure removed Everything sits inside one hard payout ceiling, which is standard solvency discipline and which leaves behind cost drift because it is enforced per order inside the calculation. Three modules stand on a base. The first is generation overrides, layer two, from generational and breakaway plans, which leaves behind volume theft because nothing ever leaves your group. The second is the second-leg bonus, layer three, which is binary's engine of paying on the weaker leg, and which leaves behind placement gaming and carryover because no placement tree exists and nothing carries over. The third is the leg-count multiplier, a standard leadership-bonus structure, which leaves behind cliff effects because the steps are shallow and each one needs another active person. All three stand on the unilevel spine, layer one, the industry's most common chassis, which leaves behind passivity toward development because layers two and three pay for development explicitly. THE PAYOUT CEILING Standard solvency discipline. Long-standing practice in this industry. LEAVES BEHIND Cost drift. It is enforced per order inside the calculation, not reviewed afterwards. Section ten. GENERATION OVERRIDES, LAYER TWO From generational and breakaway plans, the oldest family in the industry. LEAVES BEHIND Volume theft. Breakaway takes a promoted leader's group out of your volume. Nothing ever leaves your group here. Section seven. SECOND-LEG BONUS, LAYER THREE Binary's proven engine: paying on the weaker leg is what drives balance. LEAVES BEHIND Placement gaming and carryover. No placement tree exists here, legs are the real sponsorship, and nothing carries over. Sections eight and eleven. THE LEG-COUNT MULTIPLIER Standard leadership-bonus structure: how rank bonuses have long worked. LEAVES BEHIND Cliff effects at magic numbers. The steps here are shallow, and each one needs another active person, not a purchase. Section eight. THE UNILEVEL SPINE, LAYER ONE The industry's most common chassis: the easiest plan to explain and the hardest to game. LEAVES BEHIND Passivity toward development: it pays on whatever depth happens to exist and nothing extra for developing a leader. Layers two and three pay for that, and the spine is untouched. Every part is proven and decades old. What is new is the assembly, and that each part arrives with its best-known abuse absent from the arithmetic rather than forbidden by a rule.
Scrolls sideways inside its frameFigure 3What the drawing shows. Four proven mechanisms assembled into one plan, each labelled with the failure its own family is known for and with the reason that failure is not present here. The unilevel spine is the base everything stands on. Generation overrides, the second-leg bonus and the leg-count multiplier stand on it. All four sit inside the payout ceiling. What it proves is that this plan is an assembly of parts a veteran reader already knows, and that the argument for it is not that the parts are new but that each one arrives without the abuse that family is known for.

The five parts, and what each one leaves behind

MechanismThe family it comes fromThe known failure modeWhy it is not present here
Layer one, the unilevel spineThe unilevel, the industry's most common chassis. More plans are built on a unilevel base than on anything else, because it is the easiest to explain and the hardest to game.Passivity toward development. A pure unilevel pays on whatever depth happens to exist and pays nothing extra for turning a recruit into a leader, so it under-rewards the one behaviour that grows an organisation.Layers two and three exist to pay for development explicitly. The spine itself is untouched, so it keeps the thing that made it worth using.
Layer two, the Builder overrideGeneration overrides, the core of generational and breakaway plans and the oldest family in the industry. Leaders earn on the groups of the leaders they develop, generations deep.Volume theft. In a classic breakaway, promoting a leader removes their whole group from your volume, so the plan punishes the promotion it says it wants and the field learns to hold its best people back.There is no breakaway here, stated as a rule in section seven. No volume ever leaves anybody's group, so developing a Builder is addition with no subtraction, and no rank anybody below you reaches costs you a unit of volume.
Layer three, the second-leg bonusThe binary's proven engine. Paying on the weaker leg is the most effective known driver of teamwork and balance, which is why that family dominates the fast-growth end of the industry.Placement gaming and carryover. Binary plans invite strategic placement, spillover lotteries and purchased positions in the tree, and they bank volume that carries forward.No placement tree exists here at all. Legs are the real sponsorship organisation, exactly as it happened, so there is nothing to place and no spillover to wait for, and nothing carries over from one month to the next. Sections eight and eleven.
The leg-count multiplierStandard leadership-bonus structure. Stepping a bonus on the count of developed legs is how leadership pools and rank bonuses have worked for decades.Cliff effects. Large steps at round numbers produce buying at the end of a month to cross a threshold.The steps are deliberately shallow, each one requires another active leg rather than a purchase, and section eight shows the arithmetic that makes the step never worth chasing.
The twenty percent ceilingStandard solvency discipline. Caps and payout governors are long-standing practice in this industry.Cost drift. Uncapped plans see the payout ratio creep upward as an organisation matures, discovered in the accounts months later and corrected by emergency changes that cost the field its trust.The ceiling is enforced per order, inside the calculation, before anything is paid. It is not a target reviewed afterwards, so drift is bounded by construction. Section ten.

Stated in one sentence. This is a unilevel chassis carrying the development engine of the breakaway family without the breakaway, the balance engine of the binary family without the binary tree, and a standard leadership multiplier without the cliffs, all inside a hard ceiling.

Section two

The words, defined before they are used

Every term in this plan describes a position in one ordinary organisation chart. There is no second tree, no placement tree, and no position that can be bought, moved or held for you.

The anatomy of an organisation You sit at the top. A, B and C are your frontline, the people you personally sponsored, and they are level one. D sits under A at level two, and E sits under D at level three. A together with D and E forms one leg. Everybody below you at any depth is your downline. ONE LEG YOU A B C D E LEVEL 1, your frontline LEVEL 2 LEVEL 3 A, B, C, D and E together are your DOWNLINE. The person above YOU is your SPONSOR.
Scrolls sideways inside its frameFigure 4What the drawing shows. You sit at the top. A, B and C are your frontline, the people you personally enrolled, and they sit at level 1. D sits under A at level 2, and E sits under D at level 3. A, D and E together form one leg. Everybody below you at any depth is your downline. What it proves is that level, leg and frontline are three different things measured on the same chart: level counts distance downward, frontline counts only the row you enrolled yourself, and a leg is a whole branch treated as one unit.

The terms this plan uses

TermWhat it means
ConductorSomebody who has enrolled and holds a place in the organisation. Every person this plan pays is a Conductor.
MemberThe name of the first rank. It requires enrolment and nothing else.
CustomerSomebody who buys agents through a Conductor without joining. A customer never qualifies, never holds a rank and never earns.
SponsorThe one person directly above you, the person who enrolled you.
FrontlineThe people you personally sponsored, and only those people.
DownlineEverybody below you at any depth.
LevelThe plain distance in the organisation from you down to somebody below you. Your frontline is level 1, their frontline is level 2, and so on.
LegOne frontline person plus that person's entire downline, treated as a single branch.
GroupA Conductor together with their whole downline at every depth. Used for the Builder override in section 7.
GenerationA counting unit used only by the Builder override. Generations are marked out by the Builders in a line, not by levels. Section 7 explains the count.
Personal Volume (PV)The volume printed on a product, which at Orvanna always equals its price in dollars.
Sales Volume (SV)The total PV of everything booked to your account in one calendar month, whether you bought it or one of your customers did.
Commissionable Volume (CV)80 percent of your SV, rounded to two decimals. Every percentage in this plan is applied to CV and to nothing else.
Team Volume (TV)The SV of everybody strictly below you, added across your whole downline. It never includes your own SV.
Qualified monthA month in which your own SV was 100.00 or more.
Active legA leg whose frontline person is qualified this month. A leg with a large downline but an unqualified frontline person is not active.
RankThe title you hold for one month, recomputed from scratch every month, which sets how many levels deep you are paid.
Paid depthHow many levels of your downline you are paid on. Member 1, Builder 2, Leader 3, Director 4, Executive 5.
BreakageCommission the percentages describe but nobody receives, because the person who would have received it failed a gate. It is paid to nobody and held for nobody.

Team Volume excludes you. If your downline sold 2,500.00 and you personally sold 200.00, your TV is 2,500.00, not 2,700.00.

A leg is judged by the person at its head. The plan asks whether the frontline person is qualified, not whether the branch produced volume. That is deliberate: a rank is built by helping the people you personally sponsored stay active, not by sitting above one lucky branch.

Section three

Volume, and the eighty percent rule

Three numbers do all the work: Personal Volume on the product, Sales Volume on your account, and Commissionable Volume, which is the only one any commission is calculated from.

From price to Commissionable Volume to the ceiling A one hundred dollar domain agent carries one hundred Personal Volume. Personal Volume always equals dollars. Everything on the account in a month adds into Sales Volume of one hundred. Commissionable Volume is eighty percent of that, so eighty dollars. Every percentage in the plan applies to the eighty. The ceiling on the order is twenty dollars, which is twenty percent of the price. Order: one domain agent $100.00 a month Personal Volume (PV) 100 PV always equals dollars Sales Volume (SV) 100.00 everything on the account this month Commissionable Volume 80.00 CV = 0.80 x SV, the eighty percent rule Every percentage applies to 80.00 Ceiling on this order: 20.00 20 percent of the $100.00 price
Scrolls sideways inside its frameFigure 5What the drawing shows. A $100.00 domain agent carries 100 Personal Volume, because Personal Volume always equals the price in dollars. Everything booked to the account that month adds into Sales Volume. Commissionable Volume is 80 percent of Sales Volume, so 80.00 here, and that 80.00 is what every percentage in the plan is applied to. The order's ceiling is 20.00. What it proves is that a rate quoted in this plan is smaller in real money than it looks: 10 percent of Commissionable Volume is 8 percent of the price.

Why 80 percent and not 100

Commissionable Volume is deliberately smaller than Sales Volume. The 20 cents in every dollar that Commissionable Volume leaves behind never enters the commission calculation at all. That is why the plan can state an absolute ceiling of 20 percent of the price rather than 20 percent of Commissionable Volume: the five level rates add to 25 percent of Commissionable Volume, and 0.25 multiplied by 0.80 is 0.20, so 20 percent of the money that came in the door.

Check the arithmetic yourself on a $100.00 order. Commissionable Volume 80.00. The five levels pay 8.00, 4.00, 4.00, 2.40 and 1.60, which add to exactly 20.00.

What carries volume

  • Domain agents, $100.00 a month, 100 PV. Payment Agent, Shipping Agent, Pricing Agent, Inventory Agent, Marketing Agent, Tax Agent.
  • Support agents, $50.00 a month, 50 PV. Software Engineer, Quality Assurance, Secretary, Chief Executive, Accounting, Customer Care.
  • Bundles and packs, $200.00 to $800.00 a month, 200 to 800 PV. The Manager Agent bundle at $200.00 and 200 PV; the Ignition Pack at $200.00 and 200 PV; the Momentum Pack at $400.00 and 400 PV; the Constellation Pack at $800.00 and 800 PV. A bundle or pack carries its own Personal Volume once, not the volume of the agents inside it. Bought once instead of monthly, each costs ten times its monthly price and carries ten times its monthly Personal Volume.
  • Customer purchases. An order placed by a customer through a referring Conductor books to that Conductor's account, and its full Personal Volume counts in that Conductor's Sales Volume.

A subscription grants its Personal Volume every month it is active. Cancel it and the volume stops from the cancellation month forward. Months already billed keep their volume.

One-time purchases are recognised across ten months. Volume bought once, rather than as a monthly subscription, is recognised at one tenth a month for ten months. A $2,000.00 one-time purchase, which is what the Ignition Pack costs when it is bought once rather than monthly, arrives as 200 PV a month for ten months, not 2,000 in a single month. This rule exists so that no single large purchase can lift somebody's volume or their team's volume into a rank for one month.

Section four

The qualified month: the single gate

There is one gate in this plan and it is the same gate for everything. Your own Sales Volume must reach 100.00 in the calendar month.

The qualification gate and what fails it One domain agent at one hundred, or two support agents at fifty each, or customer orders totalling one hundred Personal Volume all reach the gate. The gate asks whether your own Sales Volume is one hundred or more. The yes branch leads to the qualified box: you can be paid on every layer and your leg counts as active for your sponsor. The no branch leads to a separate not qualified box: you are paid nothing that month, your leg does not count as active, and you cannot hold a rank above Member. Your volume still pays your upline in full either way. WAYS TO REACH 100.00 One domain agent, 100 PV Two support agents, 50 + 50 Customer orders totalling 100 PV THE GATE Is your own Sales Volume 100.00 or more? YES NO YES: QUALIFIED You can be paid on every layer. Your leg counts as active for your sponsor. NO: NOT QUALIFIED You are paid nothing at all that month. Your leg does not count as active. You cannot hold a rank above Member. Either way, your volume still pays your upline in full.
Scrolls sideways inside its frameFigure 6What the drawing shows. Three ordinary ways to reach 100.00 of Sales Volume feed one gate, and the gate asks a single question. Passing it lets you be paid on all three layers and makes your leg count as active for your sponsor. Failing it means no commission at all that month, no active leg, and no rank above Member. What it proves is that missing qualification costs the person who missed it and nobody else: their volume still pays everybody above them exactly as if they had qualified.

The rules of the gate

  • Qualified means Sales Volume of 100.00 or more in that calendar month. That is the whole test.
  • The same number does two jobs. It decides whether you can be paid, and it decides whether your leg counts as active for the person above you.
  • Exactly 100.00 qualifies. Every threshold in this plan is stated as "or more", never as "more than".
  • It resets every month. A qualified March does nothing for April. There are no grace months.
  • Volume sold counts, not only volume bought. Customer orders booked to your account count toward your Sales Volume, so a Conductor can qualify on sales to other people without buying anything themselves.

Why that last rule matters. A plan where the only way to qualify is to buy the product yourself rewards buying rather than selling. Orvanna's gate can be met entirely by customer sales, so a Conductor who sells and never subscribes is qualified on the same terms as one who subscribes.

Section five

The organisation every example uses

Every worked example from here to the end of this document uses the same ten person organisation, so you never have to learn a new cast. It is drawn once, here, with each person's volume on them.

The ten person organisation used by every example M1 sponsors M2, M3 and M4. M2 sponsors M5 and M6. M3 sponsors M7 and M8. M5 sponsors M9. M8 sponsors M10. M1 holds Leader and reaches three levels. M3 holds Builder and reaches two. Everybody else is a Member reaching one level. M5 and M10 have Sales Volume of fifty and are not qualified. M1, LEADER SV 200.00, CV 160.00 reaches 3 levels M2, Member SV 150.00, CV 120.00 reaches 1 level M3, BUILDER SV 100.00, CV 80.00 reaches 2 levels M4, Member SV 100.00, CV 80.00 all bought by customers M5, NOT QUALIFIED SV 50.00, CV 40.00 earns nothing M6, Member SV 150.00, CV 120.00 nobody below M7, Member SV 1,500.00, CV 1,200.00 the large subscriber M8, Member SV 100.00, CV 80.00 two support agents M9, Member SV 300.00, CV 240.00 nobody below M10, NOT QUALIFIED SV 50.00, CV 40.00 still pays upline Each line runs from a sponsor down to the person they enrolled. Total Sales Volume 2,700.00. Total Commissionable Volume 2,160.00.
The ten person organisation used by every example M1 sponsors M2, M3 and M4. M2 sponsors M5 and M6. M3 sponsors M7 and M8. M5 sponsors M9. M8 sponsors M10. M1 holds Leader and reaches three levels. M3 holds Builder and reaches two. Everybody else is a Member reaching one level. M5 and M10 have Sales Volume of fifty and are not qualified. M1, LEADER SV 200.00, CV 160.00 reaches 3 levels M2, Member SV 150.00, CV 120.00 reaches 1 level M5, NOT QUALIFIED SV 50.00, CV 40.00 earns nothing M9, Member SV 300.00, CV 240.00 nobody below M6, Member SV 150.00, CV 120.00 nobody below M3, BUILDER SV 100.00, CV 80.00 reaches 2 levels M7, Member SV 1,500.00, CV 1,200.00 the large subscriber M8, Member SV 100.00, CV 80.00 two support agents M10, NOT QUALIFIED SV 50.00, CV 40.00 still pays upline M4, Member SV 100.00, CV 80.00 all bought by customers Each line runs from a sponsor down to the person they enrolled. Total Sales Volume 2,700.00. Total Commissionable Volume 2,160.00.
Scrolls sideways inside its frameFigure 7What the drawing shows. Ten Conductors in one organisation. M1 is at the top and sponsors M2, M3 and M4. M2 sponsors M5 and M6. M3 sponsors M7 and M8. M5 sponsors M9, and M8 sponsors M10. M1 holds Leader and reaches three levels, M3 holds Builder and reaches two, and everybody else is a Member reaching one. M5 and M10 sold only 50.00 each, so they are not qualified. The whole group sold 2,700.00 of Sales Volume, which is 2,160.00 of Commissionable Volume. What it proves is nothing on its own: it is the fixed cast that every later example is computed on, so that any figure in this document can be traced back to one picture.

Two cases worth noticing before the money starts.

M2 is qualified, has two frontline people and 500.00 of Team Volume, and is still a plain Member. One of those two legs is headed by M5, whose own Sales Volume is 50.00, so that leg is not active. The 300.00 of volume sitting under M5 does not rescue it, because a leg is judged by the person at its head.

M8 is qualified but has no active legs at all, because M8's only frontline person, M10, sold 50.00. M8 still earns, because being paid at level 1 requires only that M8 is qualified. Rank and earning are two separate tests.

Section six

Layer one: the five paid levels

This is the layer that produces most of the money. It pays you a percentage of the Commissionable Volume of everybody below you, level by level, as far down as your rank reaches.

The five level rates on one order On a source with eighty dollars of Commissionable Volume, level one pays ten percent which is eight dollars, level two five percent which is four dollars, level three five percent which is four dollars, level four three percent which is two dollars forty, and level five two percent which is one dollar sixty. The five together are twenty five percent of Commissionable Volume, which is twenty dollars, which is twenty percent of the hundred dollar price. ON ONE SOURCE WITH CV 80.00 Level 1 10 percent 8.00 Level 2 5 percent 4.00 Level 3 5 percent 4.00 Level 4 3 percent 2.40 Level 5 2 percent 1.60 All five together: 25 percent of CV = 20.00 = 20 percent of the $100.00 price Bar length is drawn in proportion to the rate. Level 1 is worth as much as levels 2 and 3 combined.
Scrolls sideways inside its frameFigure 8What the drawing shows. The five level rates applied to one source with 80.00 of Commissionable Volume: level 1 pays 10 percent, which is 8.00; levels 2 and 3 pay 5 percent each, which is 4.00 each; level 4 pays 3 percent, which is 2.40; level 5 pays 2 percent, which is 1.60. The bars are drawn in proportion to the rates. What it proves is that level 1 is worth as much as levels 2 and 3 combined, and that the five rates add to exactly 25 percent of Commissionable Volume, which is the 20.00 ceiling and not a cent more.

The rule

You are paid 10 percent of the Commissionable Volume of every Conductor you personally sponsored, then 5 percent at level 2, 5 percent at level 3, 3 percent at level 4 and 2 percent at level 5, for as long as you are qualified that month. Whether the person below you is qualified makes no difference. If they bought, you are paid on it.

Worked, every step: your frontline

You sponsored somebody. This month they subscribed to the Marketing Agent and the Customer Care agent.

  1. Marketing Agent $100.00, 100 PV. Customer Care $50.00, 50 PV.
  2. Their Sales Volume for the month is 100 + 50 = 150.00.
  3. Their Commissionable Volume is 0.80 x 150.00 = 120.00.
  4. You are qualified, and level 1 is inside every rank's reach, so both gates pass.
  5. Your commission is 10 percent x 120.00 = 12.00.

You earn $12.00 on their $150.00 of buying. As a fraction of what they actually spent that is 8 percent, not 10 percent, because the 10 percent applies to Commissionable Volume rather than to the price. This is the most common misreading of any plan of this kind, so it is worth saying once more: every percentage in this plan is a percentage of Commissionable Volume, and Commissionable Volume is 80 percent of the money.

The same rule when the person below is not qualified

  1. They subscribed to one support agent only. Their Sales Volume is 50.00, their Commissionable Volume is 40.00.
  2. They are not qualified themselves, because 50.00 is below 100.00. That does not matter here.
  3. Your level 1 commission is 0.10 x 40.00 = 4.00.

They earn nothing that month and their leg does not count as active for your rank, but their volume still pays you in full.

Depth: what your rank reaches

Paid depth by rank A Member is paid on level one only. A Builder is paid on levels one and two. A Leader is paid on levels one to three. A Director is paid on levels one to four. An Executive is paid on all five levels. The rate at each level is the same for every rank: ten, five, five, three and two percent. Rank changes reach, never rate. RANK and what it reaches Member 1 level Builder 2 levels Leader 3 levels Director 4 levels Executive 5 levels Level 1, 10% Level 2, 5% Level 3, 5% Level 4, 3% Level 5, 2% PAID out of reach PAID out of reach PAID out of reach PAID out of reach PAID The rate at each level is the same for every rank. Rank buys reach, never rate. Anything out of reach is paid to nobody.
Paid depth by rank A Member is paid on level one only. A Builder is paid on levels one and two. A Leader is paid on levels one to three. A Director is paid on levels one to four. An Executive is paid on all five levels. The rate at each level is the same for every rank: ten, five, five, three and two percent. Rank changes reach, never rate. RANK LEVEL, AND THE RATE ON IT 1 10% 2 5% 3 5% 4 3% 5 2% Member PAID out of reach Builder PAID out of reach Leader PAID out of reach Director PAID Executive PAID The rate at each level is the same for every rank. Rank buys reach, never rate. Anything out of reach is paid to nobody.
Scrolls sideways inside its frameFigure 9What the drawing shows. Which levels each rank is paid on. A Member is paid on level 1 only. A Builder adds level 2, a Leader level 3, a Director level 4, and an Executive reaches all five. The rate on each level, 10, 5, 5, 3 and 2 percent, is identical for every rank. What it proves is that promotion in this plan buys reach and not rate: moving from Member to Builder does not add a cent to what you earn on your frontline, it opens a new row of people underneath them.

Worked, every step: depth

You are a Builder, so your reach is two levels. Underneath you: frontline person A subscribed to twelve domain agents and six support agents; frontline person B subscribed to two support agents; and person B sponsored person C, who subscribed to one support agent.

  1. A's Sales Volume is (12 x 100) + (6 x 50) = 1,500.00, so A's Commissionable Volume is 1,200.00.
  2. B's Sales Volume is 50 + 50 = 100.00, so B's Commissionable Volume is 80.00.
  3. C's Sales Volume is 50.00, so C's Commissionable Volume is 40.00.
  4. A is at level 1: 0.10 x 1,200.00 = 120.00.
  5. B is at level 1: 0.10 x 80.00 = 8.00.
  6. C is at level 2: 0.05 x 40.00 = 2.00.
  7. Your total is 120.00 + 8.00 + 2.00 = 130.00.

Now change one thing and nothing else. You are a plain Member instead of a Builder, so your reach is one level. C is out of reach. You earn 120.00 + 8.00 = 128.00, and the 2.00 is breakage: it is not pushed to the person above you, and it is not held for later.

There is no compression in the plan this document describes. If somebody in your line is unqualified, the people below them do not slide up into their place. An unqualified person is a wall in the organisation, not a hole. Whatever their level would have paid is paid to nobody.

Section seven

Layer two: the Builder override

Level pay is indifferent to whether the people below you become leaders. Layer two is the part of the plan that pays you specifically for developing one. When a Conductor below you holds Builder rank this month, you are paid on that Conductor's entire group, however deep it runs.

What gets paid

A Conductor's group is that Conductor plus their whole downline at every depth, with nothing excluded. Group volume is the Commissionable Volume of everybody in it.

For each Conductor below you who holds Builder rank or above this month, you are paid 1.5 percent of that Builder's group volume as a first-generation override, or 1.0 percent as a second-generation override, depending on how many Builders sit between you and them. You must be qualified yourself to receive either.

How the two generations are found

Generations are not levels. They are counted by the Builders standing in the line between you and the Builder being paid on. Starting at that Builder, the plan walks upward toward the top of the organisation carrying a counter that begins at zero, and at each person it does two things in this order: first it decides whether that person is paid, then it decides whether that person increments the counter.

  1. If the person is qualified and the counter is 0 and no first generation has been assigned yet, that person receives the first-generation override at 1.5 percent.
  2. If the person is qualified and the counter is 1 and no second generation has been assigned yet, that person receives the second-generation override at 1.0 percent.
  3. Then, if that person holds Builder rank or above, the counter goes up by one.
  4. The walk stops when the counter reaches 2, or when it reaches the top of the organisation.

An unqualified person is passed over completely: they receive nothing and they do not move the counter. One person can collect a first-generation override on one Builder and a second-generation override on a deeper Builder in the same month.

The upward walk that finds the two generations An illustration. Nadia holds Builder rank with a group volume of one thousand. The walk starts at Nadia and goes upward. Owen is not qualified, so he is passed over and the counter stays at zero. Priya is qualified with the counter at zero, so she takes the first generation override of one point five percent of one thousand, which is fifteen dollars, and because Priya is a Builder the counter becomes one. Quinn is qualified with the counter at one, so Quinn takes the second generation override of one percent of one thousand, which is ten dollars, and because Quinn is a Builder the counter becomes two and the walk stops. Rosa, above Quinn, is paid nothing on Nadia. ILLUSTRATION. Round figures chosen to show the counting rule. THE WALK GOES UP Rosa qualified The counter already reached 2, so the walk has stopped. Rosa is paid nothing on Nadia. Quinn, BUILDER qualified Counter 1: GENERATION 2 1.0 percent x 1,000.00 = 10.00 Quinn is a Builder, counter becomes 2, walk stops. Priya, BUILDER qualified Counter 0: GENERATION 1 1.5 percent x 1,000.00 = 15.00 Priya is a Builder, counter becomes 1. Owen NOT qualified Passed over. Paid nothing, and the counter does not move: it stays at 0. Nadia, BUILDER group volume 1,000.00 The walk starts here, counter 0. Both overrides are computed on this 1,000.00. Both generations are paid on the same figure, the Builder's group volume. What differs is the rate. Nadia is paid on her own group by level pay, exactly as before; the override is additional and sits above her.
Scrolls sideways inside its frameFigure 10What the drawing shows. An illustration with round figures. Nadia holds Builder rank and her group volume is 1,000.00. The walk starts at Nadia and moves upward. Owen is not qualified, so he is passed over: he is paid nothing and the counter stays at 0. Priya is qualified with the counter at 0, so she takes the first-generation override, 1.5 percent of 1,000.00, which is 15.00, and because Priya holds Builder the counter becomes 1. Quinn is qualified with the counter at 1, so Quinn takes the second-generation override, 1.0 percent of 1,000.00, which is 10.00, and because Quinn holds Builder the counter becomes 2 and the walk stops. Rosa is paid nothing on Nadia. What it proves is that the two generations are marked out by Builders and not by levels, and that an unqualified person neither earns nor blocks: the override passes over them to the next qualified person.

No breakaway: developing a Builder never costs you volume

Group volume before and after somebody below you is promoted In the older breakaway style of plan, promoting somebody removes their group from yours, so your volume falls. In this plan nothing is removed. Your group keeps every Conductor it had, and the override on the new Builder's group is added on top. THE OLDER STYLE OF PLAN: PROMOTION TAKES VOLUME AWAY stays in your group removed from your group when they are promoted Your best people cost you volume the moment they succeed. THIS PLAN: NOTHING IS EVER REMOVED your whole group, every Conductor, at every depth, always PLUS 1.5 percent of the new Builder's group volume added on top, for as long as they hold the rank Groups nest: a Builder inside your group stays inside it, and inside your sponsor's group too.
Scrolls sideways inside its frameFigure 11What the drawing shows. The top bar is how the older breakaway style of plan behaves: when somebody below you is promoted, their group is taken out of yours and your volume falls. The lower bars are this plan: nothing is ever removed, your group keeps every Conductor at every depth, and the override on the new Builder's group is added on top. What it proves is that there is no rank anybody below you can reach that costs you a single unit of volume, so the plan never gives you a reason to hold somebody back.

Worked, every step, in the ten person organisation

In the organisation drawn in section five, two people hold Builder rank or above this month: M1, who is a Leader, and M3, who is a Builder.

  1. Take the Builder, M3. M3's group is M3 together with M7, M8 and M10.
  2. M3's group volume is 80.00 + 1,200.00 + 80.00 + 40.00 = 1,400.00.
  3. Walk upward from M3. The first person is M1, who is qualified, and the counter is 0, so M1 takes the first-generation override.
  4. M1's override is 1.5 percent x 1,400.00 = 21.00.
  5. M1 holds Leader, which is above Builder, so the counter becomes 1. M1 is at the top of the organisation, so the walk stops. There is no second generation here.
  6. Take the other Builder-or-above, M1. Nobody sits above M1, so M1's own rank produces no override for anybody.

The whole of layer two in this month is therefore one payment: 21.00 to M1.

Note what M1 is paid on. M1 already earns level pay on M7's large volume through the ordinary levels. The override is computed on M3's group as a whole, because M1 developed M3 into a Builder. The two are separate payments for separate things, and section ten shows that both together still fit inside the same ceiling.

Section eight

Layer three: the second-leg bonus

The most reliable way a compensation plan can reward teamwork is to pay on the weaker side rather than the stronger one. Layer three does that, and it does it on the ordinary organisation chart, because this plan has no second tree to place anybody in and nothing that carries forward from one month to the next.

What gets paid

A leg is one person you personally sponsored plus that person's entire downline. A leg's volume is the Commissionable Volume of everybody in it, qualified or not, because volume is volume. A leg is active when the person at its head is qualified this month.

Rank your legs by volume, highest first. If you are qualified and at least two of your legs are active, you are paid a bonus on the volume of your second-strongest leg. The rate is 2.0 percent with two active legs, 2.3 percent with three, and 2.5 percent with four or more.

One large leg against two real teams An illustration. On the left, one leg holding a thousand of volume has no second-strongest leg, so the bonus is zero. On the right, the same total volume split into a leg of six hundred and a leg of four hundred has a second-strongest leg of four hundred, so with two active legs the bonus is two percent of four hundred, which is eight dollars. The rate steps to two point three percent at three active legs and two point five percent at four or more. ILLUSTRATION. Round figures chosen to show the mechanism. One large leg Leg A, 1,000 volume no second leg exists Second-strongest leg: none Bonus: 0.00 Two real teams Leg A, 600 Leg B, 400 second-strongest 2 active legs, rate 2.0 percent 0.020 x 400 = 8.00 THE RATE STEPS ON THE COUNT OF ACTIVE LEGS 2 active legs: 2.0 percent 3 active legs: 2.3 percent 4 or more: 2.5 percent Same total volume on both sides. The plan pays only on the right, and only on the smaller of the two teams. An active leg is a real qualified person, so the steps cannot be reached by buying anything.
Scrolls sideways inside its frameFigure 12What the drawing shows. An illustration with round figures. On the left, a Conductor with a single leg of 1,000 volume has no second-strongest leg, so the bonus is nothing at all. On the right, the same total volume split into a leg of 600 and a leg of 400 has a second-strongest leg of 400, so with two active legs the bonus is 2.0 percent of 400, which is 8.00. The three boxes underneath show the rate stepping to 2.3 percent at three active legs and 2.5 percent at four or more. What it proves is that concentrating everything into one leg pays nothing extra by construction, and that the step in the rate is reached only by having more real qualified people, not by moving volume around.

Two details a careful reader will ask about

Legs are ranked by volume across all of your legs, while eligibility and the rate step count only active legs. So a Conductor with two active legs and a third, large, inactive leg is paid on whichever leg is second by volume, whichever that turns out to be. Ties are broken by the identifier of the person at the head of the leg, so the same month always produces the same answer.

The rate steps are deliberately shallow. Large steps at round numbers are what produce end-of-month buying to cross a threshold, and the arithmetic below shows why these steps are never worth chasing.

Why splitting volume to chase the step does not pay

Take a fixed amount of downline volume and spread it evenly across more legs. The bonus is paid on one leg, so more legs means a smaller amount to pay on. The step in the rate softens that, but it never reverses it.

The same volume arranged across two, three and four legs Twelve hundred of downline volume arranged as two legs of six hundred pays two percent of six hundred, which is twelve dollars. Arranged as three legs of four hundred it pays two point three percent of four hundred, which is nine dollars twenty. Arranged as four legs of three hundred it pays two point five percent of three hundred, which is seven dollars fifty. More legs raises the rate and lowers the amount it is paid on, and the amount falls faster than the rate rises. THE SAME 1,200 OF DOWNLINE VOLUME, ARRANGED THREE WAYS The shaded leg is the second-strongest, which is the one the bonus is paid on. 2 legs 600 600 rate 2.0 percent 0.020 x 600 = 12.00 3 legs 400 400 400 rate 2.3 percent 0.023 x 400 = 9.20 4 legs 300 300 300 300 rate 2.5 percent 0.025 x 300 = 7.50 Splitting volume you already have loses money at every step: 12.00, then 9.20, then 7.50. Adding genuinely new people to a weaker leg is different: that raises the amount rather than dividing it.
Scrolls sideways inside its frameFigure 13What the drawing shows. The same 1,200 of downline volume arranged three ways, with the second-strongest leg shaded in each case because that is the leg the bonus is paid on. Two legs of 600 pay 2.0 percent of 600, which is 12.00. Three legs of 400 pay 2.3 percent of 400, which is 9.20. Four legs of 300 pay 2.5 percent of 300, which is 7.50. What it proves is that the step in the rate never catches up with the fall in the amount it is applied to, so there is no arrangement of existing volume worth chasing the step for, and no reason for anybody to buy anything at the end of a month to cross a threshold.
Legs the volume is spread acrossRateWhat the bonus works out to
2 equal legs2.0 percent0.020 x half the volume = 1.00 percent of the volume
3 equal legs2.3 percent0.023 x a third of the volume = 0.77 percent of the volume
4 equal legs2.5 percent0.025 x a quarter of the volume = 0.63 percent of the volume

Two balanced legs is the best you can do with volume you already have, which is exactly the behaviour the layer is designed to reward. Directing genuinely new people into the weaker leg is a different matter: that adds volume rather than dividing it, and it is paid at the designed rate.

Worked, every step, in the ten person organisation

  1. M1 has three legs. The M3 leg holds M3, M7, M8 and M10: 80 + 1,200 + 80 + 40 = 1,400.00. The M2 leg holds M2, M5, M6 and M9: 120 + 40 + 120 + 240 = 520.00. The M4 leg holds M4 alone: 80.00.
  2. Ranked by volume, the second-strongest is the M2 leg at 520.00.
  3. M2, M3 and M4 are all qualified, so M1 has three active legs and the rate is 2.3 percent.
  4. M1's bonus is 0.023 x 520.00 = 11.96.
  5. M2 has two legs, the M5 leg at 280.00 and the M6 leg at 120.00, but only M6 is qualified. One active leg means no bonus at all, however much volume is in those legs. This is the teaching case: balance without qualified people at the head of each leg pays nothing.
  6. M3 has two legs, the M7 leg at 1,200.00 and the M8 leg at 120.00 (M8's 80.00 plus M10's 40.00). Both M7 and M8 are qualified, so two active legs and a rate of 2.0 percent on the second-strongest, which is the M8 leg.
  7. M3's bonus is 0.020 x 120.00 = 2.40.
  8. M8 has one leg, so there is no second leg and no bonus. Nobody else has legs.

The whole of layer three in this month is therefore two payments: 11.96 to M1 and 2.40 to M3.

Section nine

The rank ladder

Five ranks. Each one is recomputed from scratch every month, and each one is defined by what your organisation did that month, not by what you bought.

The rank ladder as a climb Member requires enrolment only and reaches one level. Builder requires a qualified month and two or more active legs and reaches two levels. Leader requires a qualified month, Team Volume of two thousand five hundred or more, and three or more active legs, and reaches three levels. Director requires a qualified month, Team Volume of ten thousand or more, and two or more legs each containing a Builder or above, and reaches four levels. Executive requires a qualified month, Team Volume of forty thousand or more, and two or more legs each containing a Leader or above, and reaches five levels. MEMBER, reaches 1 level enrolled, nothing else required BUILDER, reaches 2 levels qualified, 2 or more active legs LEADER, reaches 3 levels qualified, Team Volume 2,500.00 or more, 3 or more active legs DIRECTOR, reaches 4 levels qualified, Team Volume 10,000.00+, 2+ legs each holding a Builder or above EXECUTIVE, reaches 5 levels qualified, Team Volume 40,000.00+, 2+ legs each holding a Leader or above Every requirement on a rung must be met in the same month, and you hold the highest rung you meet. Builder rank is also what triggers the override in section seven for the people above you.
The rank ladder as a climb Member requires enrolment only and reaches one level. Builder requires a qualified month and two or more active legs and reaches two levels. Leader requires a qualified month, Team Volume of two thousand five hundred or more, and three or more active legs, and reaches three levels. Director requires a qualified month, Team Volume of ten thousand or more, and two or more legs each containing a Builder or above, and reaches four levels. Executive requires a qualified month, Team Volume of forty thousand or more, and two or more legs each containing a Leader or above, and reaches five levels. MEMBER, reaches 1 level enrolled, nothing else required BUILDER, reaches 2 levels qualified, 2 or more active legs LEADER, reaches 3 levels qualified, Team Volume 2,500.00 or more, 3 or more active legs DIRECTOR, reaches 4 levels qualified, Team Volume 10,000.00+, 2+ legs each holding a Builder or above EXECUTIVE, reaches 5 levels qualified, Team Volume 40,000.00+, 2+ legs each holding a Leader or above Every requirement on a rung must be met in the same month, and you hold the highest rung you meet. Builder rank is also what triggers the override in section seven for the people above you.
Scrolls sideways inside its frameFigure 14What the drawing shows. The five ranks as a climb, with the requirement for each one printed on its rung and the number of levels it reaches. Member needs only enrolment and reaches one level. Builder needs a qualified month and two or more active legs, and reaches two. Leader needs a qualified month, Team Volume of 2,500.00 or more and three or more active legs, and reaches three. Director needs a qualified month, Team Volume of 10,000.00 or more and two or more legs each containing a Builder or above, and reaches four. Executive needs a qualified month, Team Volume of 40,000.00 or more and two or more legs each containing a Leader or above, and reaches five. What it proves is that every rung above Member requires other people to be active, so no rank in this plan can be reached by spending money on yourself.

Every requirement, in full

RankOwn qualified monthTeam VolumeLegsReaches
Membernot requirednonenone1 level
Builderrequirednone2 or more active legs2 levels
Leaderrequired2,500.00 or more3 or more active legs3 levels
Directorrequired10,000.00 or more2 or more legs, each containing a Builder or above anywhere inside4 levels
Executiverequired40,000.00 or more2 or more legs, each containing a Leader or above anywhere inside5 levels

The rules that govern the ladder

  • Every requirement on a rung must hold in the same month. A good January and a good March cannot be combined.
  • You hold the highest rung whose requirements you meet. Nobody is held on a lower rung by the order the tests are applied in.
  • Ranks are recomputed from scratch every month. There is no rank retention, no highest-ever title and no grace period.
  • Every threshold is inclusive. Exactly 2,500.00 of Team Volume makes Leader. Exactly 100.00 of Sales Volume qualifies.
  • Every rank above Member requires your own qualified month. A large team does not carry a title on its own.

Two rungs read differently from the others, deliberately. For Leader you count active legs, which asks only whether the person at the head of each leg is qualified. For Director and Executive you count legs by what is inside them: a leg counts if it contains a Builder or above anywhere at any depth, or for Executive a Leader or above. That is what makes the top of the ladder about developing other leaders rather than about accumulating volume.

Section ten

The twenty percent ceiling

This is the promise that holds the whole plan together, and it is the reason three layers can sit on one order without the plan becoming expensive. No order ever pays out more than 20 percent of its price, across every layer added together.

How the layers share one order

Each order creates one pot, and that pot is 20 percent of what was paid for the order. The layers draw from it in a fixed order of seniority, and each one draws only what the layer above it left behind.

  1. Level pay draws first and is always paid in full. The five level rates can never add to more than 25 percent of Commissionable Volume, which is exactly the size of the pot, so level pay always fits and is never reduced.
  2. Builder overrides draw next, from whatever level pay did not take.
  3. The second-leg bonus draws last, from whatever is left after that.
  4. If the claims in a layer come to more than the money left for that layer, every claim in that layer is reduced in the same proportion. Nothing is carried forward, and nothing is borrowed from the next order.
One order's ceiling, and how the three layers share it M8's hundred dollar month carries eighty dollars of Commissionable Volume and a ceiling of twenty dollars. Level pay takes twelve dollars, the Builder override takes one dollar twenty, the second-leg bonus takes one dollar sixty, and five dollars twenty is unspent. Four payments to three different people, all inside one ceiling. Below that, an order with five qualified people above it in reach pays the whole twenty dollars to level pay alone, so the override and bonus claims on that order receive nothing. M8'S MONTH: $100.00, CV 80.00, CEILING 20.00 Level pay 12.00 unspent 5.20 Level pay, drawn first: 12.00. M3 earns 8.00 at level 1, M1 earns 4.00 at level 2. Builder override, drawn next: 1.20. M8 sits in Builder M3's group. Second-leg bonus, drawn last: 1.60. M8 heads M3's second-strongest leg. Unspent: 5.20. Nobody claimed it, so nobody is paid it. Total paid on this one order: 14.80, from a ceiling of 20.00. Three layers, four payments. WHEN THE CEILING ACTUALLY BINDS An order with five qualified people above it, all in reach, pays level pay: 8.00 + 4.00 + 4.00 + 2.40 + 1.60 = 20.00, the whole ceiling Nothing is left, so every override and bonus claim on that order is paid 0.00.
Scrolls sideways inside its frameFigure 15What the drawing shows. The upper bar is M8's month from the worked example: a $100.00 order, 80.00 of Commissionable Volume, a ceiling of 20.00. Level pay draws 12.00 of it, the Builder override draws 1.20, the second-leg bonus draws 1.60, and 5.20 is never claimed by anybody. Three layers and four separate payments fit inside one ceiling with room to spare. The lower bar is the opposite case: an order with five qualified people above it in reach gives the entire 20.00 to level pay, which leaves nothing, so every override and bonus claim on that order is paid zero. What it proves is that the ceiling is not a monitoring policy applied afterwards. It is the arithmetic the payments are calculated by, so no combination of ranks, depths or organisation shapes can push an order past 20 percent of its price.

What this means for you

Your level pay is never reduced. Level pay is senior to everything and always fits inside the ceiling, so no override and no bonus anywhere in the organisation can ever take a cent off it.

The two bonus layers share what the ceiling leaves. On an order where level pay has already taken most of the ceiling, override and bonus claims are reduced in proportion, and on a heavily covered order they can be reduced to nothing.

How often a bonus line is reduced. Measured across the modelled runs, 154 of the 641 Conductor-months that carried any volume were reduced on at least one layer: 24.0 percent, or roughly one in four. It is not rare. Your level pay is never among them.

You will always be shown why. Where a bonus line has been reduced, your statement prints the amount claimed, the amount paid, and a plain reason: this order reached its 20 percent ceiling, and the bonus layers shared what remained. A reduced line is never shown as a bare number.

Section eleven

Nothing carries over

Every layer is recalculated from scratch each month, from that month's orders and that month's ranks. Nothing is banked, carried forward, retained or grandfathered. If a Builder below you stops qualifying, your override on them stops that month.

The same four people, two months apart A sponsors B, and B sponsors C and D. Each holds one hundred dollar agent. In month one B has two active legs so B holds Builder, A earns eleven dollars sixty made of eight dollars level pay and three dollars sixty of override, and B earns seventeen dollars sixty made of sixteen dollars level pay and one dollar sixty of bonus. In month two C cancels, so B has one active leg and is not a Builder, A earns eight dollars and B earns eight dollars. A's check falls by exactly three dollars sixty, which is the override to the cent. MONTH ONE: A sponsors B, and B sponsors C and D. Everybody qualified. A is paid 11.60 level pay 8.00 on B override 3.60 = 1.5% x B's group 240.00 B is paid 17.60 level pay 16.00 on C and D bonus 1.60 = 2.0% x second leg 80.00 B has two active legs, C and D, so B holds Builder rank and A is paid an override on B's whole group. MONTH TWO: C cancels. Nothing else changes. A is paid 8.00 level pay 8.00 on B, unchanged override: gone B is paid 8.00 level pay 8.00 on D only bonus: gone, only one active leg B is still qualified, but one active leg is not enough for Builder rank, so the override above B stops. A's check falls by exactly 3.60, which is the override on B, to the cent.
Scrolls sideways inside its frameFigure 16What the drawing shows. Four people: A sponsors B, and B sponsors C and D. Each holds one $100.00 agent, so each has 80.00 of Commissionable Volume. In month one B has two active legs and therefore holds Builder rank, so A is paid 8.00 of level pay plus a 3.60 override on B's group volume of 240.00, and B is paid 16.00 of level pay plus a 1.60 bonus on the second-strongest leg. In month two C cancels. B is still qualified but now has one active leg, so B is not a Builder, and A's override disappears. A is paid 8.00 and B is paid 8.00. What it proves is that A's entire month-over-month loss is exactly the override, 3.60 and not a cent more or less. The plan puts a precise price on keeping the people below you active, and it puts that price in front of the person best placed to help.

What is recalculated, and what that means

  • Ranks are recomputed every month from that month's volume and legs, so the set of Builders is recomputed every month, so the override boundaries and the people who receive overrides are recomputed every month.
  • Legs are re-ranked every month, so which leg is second-strongest, and the rate step that goes with the count of active legs, are recomputed every month.
  • There is no carryover. Volume that did not pay in one month does not roll into the next. There is nothing banked to be lost and nothing banked to be chased.
  • There are no grace months in the plan this document describes. A month that misses a requirement misses it.

Stated plainly, because it cuts both ways. A single missed month can remove a rank and can remove an override that somebody above you was earning on you. If your income depends on one Builder in one leg, one bad month somewhere else in the organisation can take a large part of it. The countermeasure is written into the shape of the plan rather than into a grace rule: hold more than one active leg, and develop more than one Builder.

Section twelve

A complete month, to the cent

This is the whole plan run once, on the ten person organisation from section five. Every line is printed, every layer is added, and every order is checked against its ceiling. Nothing is summarised and nothing is rounded twice.

Every check in the worked month, by layer M1 is paid one hundred and forty six dollars ninety six, made of one hundred and fourteen dollars of level pay, twenty one dollars of Builder override and eleven dollars ninety six of second-leg bonus. M3 is paid one hundred and thirty two dollars forty, made of one hundred and thirty dollars of level pay and two dollars forty of bonus. M2 is paid sixteen dollars of level pay. M8 is paid four dollars of level pay. The other six Conductors are paid nothing. The company pays two hundred and ninety nine dollars thirty six in total. Level pay Builder override Second-leg bonus M1 Leader 114.00 21.00 11.96 = 146.96 M3 Builder 130.00 2.40 = 132.40 M2 Member = 16.00 M8 Member = 4.00 M4, M5, M6, M7, M9 and M10 are paid 0.00 each. Company pays 299.36 in total. Four of the ten Conductors are paid.
Scrolls sideways inside its frameFigure 17What the drawing shows. The four checks the month produces, drawn to scale and split by layer. M1 is paid 146.96, made of 114.00 of level pay, 21.00 of Builder override and 11.96 of second-leg bonus. M3 is paid 132.40, made of 130.00 of level pay and 2.40 of bonus. M2 is paid 16.00 and M8 is paid 4.00, both entirely level pay. The other six Conductors are paid nothing at all. The company pays 299.36 in total. What it proves is the honest shape of the plan: level pay is by far the largest part of every check, the two additional layers are meaningful but modest, and in a small organisation most Conductors are paid nothing, because most Conductors have nobody in reach below them.

Step one: volume and qualification

PersonWhat they subscribed toSales VolumeCommissionable VolumeQualified
M1Payment Agent + Pricing Agent200.00160.00yes
M2Payment Agent + Software Engineer150.00120.00yes
M3Shipping Agent100.0080.00yes, exactly on the line
M4Quality Assurance + Secretary, both bought by M4's customers100.0080.00yes, exactly on the line
M5Accounting50.0040.00no
M6Marketing Agent + Customer Care150.00120.00yes
M712 domain agents + 6 support agents1,500.001,200.00yes
M8Software Engineer + Accounting100.0080.00yes, exactly on the line
M9Payment + Shipping + Pricing300.00240.00yes
M10Secretary50.0040.00no
Totals2,700.002,160.00

Check the totals against each other: 0.80 x 2,700.00 = 2,160.00, and adding the Commissionable Volume column gives 160 + 120 + 80 + 80 + 40 + 120 + 1,200 + 80 + 240 + 40 = 2,160.00. They agree.

Step two: ranks

PersonFrontlineTeam VolumeActive legsRankReaches
M1M2, M3, M42,500.003Leader3 levels
M2M5, M6500.001Member1 level
M3M7, M81,650.002Builder2 levels
M5M9300.001Member, not qualifiednothing
M8M1050.000Member1 level
M4, M6, M7, M9, M10none0.000Member1 level

M1 lands exactly on the Leader threshold of 2,500.00 of Team Volume, and because every threshold in this plan is inclusive, exactly on the line counts. M3 is a Builder because M3 is qualified with two active legs, and misses Leader because Team Volume of 1,650.00 is below 2,500.00.

Step three: layer one, every level pay line

EarnerPaid onLevelTheir CVRateAmount
M1M21120.0010%12.00
M1M3180.0010%8.00
M1M4180.0010%8.00
M1M5240.005%2.00
M1M62120.005%6.00
M1M721,200.005%60.00
M1M8280.005%4.00
M1M93240.005%12.00
M1M10340.005%2.00
M2M5140.0010%4.00
M2M61120.0010%12.00
M3M711,200.0010%120.00
M3M8180.0010%8.00
M3M10240.005%2.00
M8M10140.0010%4.00
Layer one, fifteen lines264.00

Step four: layer two, every override line

EarnerGenerationOn which BuilderThat Builder's group volumeRateAmount
M1Generation 1M31,400.001.5%21.00
Layer two, one line21.00

There is only one line because there is only one Builder with anybody above them. M1 holds Leader but sits at the top of the organisation, so M1's own rank pays nobody an override, and because M1 is the top there is no second generation for M3 either.

Step five: layer three, every bonus line

EarnerSecond-strongest legThat leg's volumeActive legsRateAmount
M1the M2 leg520.0032.3%11.96
M3the M8 leg120.0022.0%2.40
Layer three, two lines14.36

Step six: the ceiling check on every order

Each person's month is one source of volume, and each one has its own ceiling of 25 percent of Commissionable Volume, which is 20 percent of the price. Every payment above is traced back to the order it came from and checked.

SourceCVCeilingLevel payOverridesBonusTotal paidInside the ceiling
M1160.0040.000.000.000.000.00yes
M2120.0030.0012.000.002.7614.76yes
M380.0020.008.001.200.009.20yes
M480.0020.008.000.000.008.00yes
M540.0010.006.000.000.926.92yes
M6120.0030.0018.000.002.7620.76yes
M71,200.00300.00180.0018.000.00198.00yes
M880.0020.0012.001.201.6014.80yes
M9240.0060.0012.000.005.5217.52yes
M1040.0010.008.000.600.809.40yes
Totals2,160.00540.00264.0021.0014.36299.36

How the override and bonus columns are traced to a source: M1's 21.00 override on M3's group is the same thing as claims of 1.5 percent against each Conductor of that group, which is 1.20 on M3, 18.00 on M7, 1.20 on M8 and 0.60 on M10. M1's 11.96 bonus on the M2 leg is claims of 2.3 percent against each Conductor of that leg, which is 2.76 on M2, 0.92 on M5, 2.76 on M6 and 5.52 on M9. M3's 2.40 bonus on the M8 leg is 1.60 on M8 and 0.80 on M10. Every one of those figures appears in the table above, and every row stays under its ceiling.

Step seven: the statements

PersonLevel payBuilder overrideSecond-leg bonusTotal
M1114.0021.0011.96146.96
M216.000.000.0016.00
M3130.000.002.40132.40
M84.000.000.004.00
M4, M5, M6, M7, M9, M100.000.000.000.00
Company total264.0021.0014.36299.36
One Conductor's complete month, every line and the total M1's statement. Nine lines of level pay: twelve dollars on M2, eight on M3, eight on M4, two on M5, six on M6, sixty on M7, four on M8, twelve on M9 and two on M10, a subtotal of one hundred and fourteen dollars. One Builder override line, one point five percent of Builder M3's group volume of fourteen hundred, which is twenty one dollars. One second-leg bonus line, two point three percent of the M2 leg's five hundred and twenty, which is eleven dollars ninety six. The total is one hundred and forty six dollars ninety six. ONE CONDUCTOR'S COMPLETE MONTH: M1, WHO HOLDS LEADER AND REACHES 3 LEVELS LEVEL PAY, nine lines on M2, level 1: 0.10 x 120.0012.00 on M3, level 1: 0.10 x 80.008.00 on M4, level 1: 0.10 x 80.008.00 on M5, level 2: 0.05 x 40.002.00 on M6, level 2: 0.05 x 120.006.00 on M7, level 2: 0.05 x 1,200.0060.00 on M8, level 2: 0.05 x 80.004.00 on M9, level 3: 0.05 x 240.0012.00 on M10, level 3: 0.05 x 40.002.00 Level pay subtotal114.00 BUILDER OVERRIDE, one line on Builder M3, whose group volume is 1,400.00: 0.015 x 1,400.00 21.00 M1 is the first qualified person above M3 with no Builder in between. SECOND-LEG BONUS, one line on the M2 leg, 520.00, with 3 active legs: 0.023 x 520.00 11.96 The M3 leg is larger at 1,400.00, so it is not the one paid on. TOTAL PAID TO M1 THIS MONTH 146.96 114.00 + 21.00 + 11.96 = 146.96 Every line is a percentage of Commissionable Volume, rounded once on its own line. The total is the sum of the rounded lines.
Scrolls sideways inside its frameFigure 18What the drawing shows. M1's whole month as a statement, every line printed and the total reconciled on the drawing. Nine lines of level pay come to 114.00. One Builder override line, 1.5 percent of Builder M3's group volume of 1,400.00, comes to 21.00. One second-leg bonus line, 2.3 percent of the M2 leg's 520.00, comes to 11.96. The three add to 146.96. What it proves is that a Conductor's statement is readable line by line: every line names who the volume came from, what rate was applied and to what figure, and the total is simply the lines added up, with no adjustment applied afterwards that a Conductor cannot see.

The company paid 299.36 on 2,160.00 of Commissionable Volume, which is 13.86 percent of Commissionable Volume, or 11.09 percent of the 2,700.00 that came in the door. Four of the ten Conductors were paid. The structural ceiling on this month, 25 percent of 2,160.00, was 540.00, so the plan paid a little over half of what its own rates could describe.

Where the rest of the money went

None of the difference is unexplained, and it is worth understanding because it is the same money that funds layers two and three.

  • 240.00 never existed. Most of these ten people do not have five levels of upline above them. M1 is at the top, so M1's own volume pays nobody. M2's volume can only reach one level up. Adding up, for each person, only the levels that actually exist above them, the most that could ever have been paid on this organisation is 300.00, not 540.00.
  • 36.00 was breakage. Of that reachable 300.00, M5 is not qualified, so the 24.00 M5 would have earned on M9 is paid to nobody, and M2 reaches only one level, so M2's claim of 12.00 on M9 is out of reach. Neither amount is pushed upward or held.
  • 264.00 was paid as level pay, and 35.36 more was paid through the Builder override and the second-leg bonus, out of the room the first two items left under each order's ceiling.

That is the whole design in one line. The money that funds the two additional layers is money the level rates described but nobody could receive. The layers redirect it toward Conductors who developed other Conductors. They do not raise anybody's price and they do not reduce anybody's level pay.

Section thirteen

What this plan never pays for

A compensation plan is defined as much by what it refuses to pay for as by what it pays. Each item below is a protection: it removes a way that a plan of this kind can be turned against the people in it.

Six things this plan never pays for Nothing is paid for recruiting or enrolling anybody. No rank can be bought, because every rank above Member requires other qualified people. Your own purchases never pay you. There is no placement tree, so no position in a tree can be sold or given. Nothing is banked or carried from month to month. And no order ever pays more than twenty percent of its price. Recruiting Not one cent is paid for enrolling anybody. Money follows product volume only. Buying a rank Every rank above Member needs other qualified people, which cannot be purchased. Your own purchases They qualify you and they pay your upline. They never pay you. A position in a tree There is no placement tree in this plan, so there is no position to sell or award. Banked volume Nothing carries from one month to the next, so nothing can be stockpiled or lost. Anything above the ceiling No order ever pays more than 20 percent of its price, whatever the organisation looks like. Each of these is structural: it is absent from the arithmetic, not merely forbidden by a rule.
Scrolls sideways inside its frameFigure 19What the drawing shows. Six things the plan never pays for, each one crossed through. Nothing is paid for recruiting or enrolling. No rank can be bought, because every rank above Member requires other qualified people. Your own purchases qualify you and pay your upline but never pay you. There is no placement tree, so no position can be sold or awarded. Nothing is banked between months. And no order pays more than 20 percent of its price. What it proves is that each of these is structural rather than a policy: the arithmetic has no term for any of them, so there is nothing to enforce and nothing to make an exception to.

The same list, with the reason for each

  • No payment for recruiting. There is no enrolment bonus, no signing bonus and no head-count payment of any kind. Every cent this plan pays is a percentage of Commissionable Volume from a product order. A plan that pays for recruitment rewards bringing people in whether or not anything is sold; this one cannot, because it has no mechanism to do it.
  • No rank that money can buy. Builder requires two active legs, which means two other people each reaching 100.00 of Sales Volume in their own right. Every rank above Builder requires more of the same. Spending on your own account cannot create a single active leg.
  • No rebate, markup or commission on your own buying. What you buy counts toward your qualification and pays the people above you. It never pays you. This is why nobody in this plan can earn by buying more.
  • No placement tree, no spillover and no purchased positions. Legs are the real sponsorship organisation, exactly as it happened. There is nowhere to place anybody strategically, no spillover to wait for, and no position that can be handed to somebody or sold.
  • No carryover and no banking. Volume that did not pay this month does not accumulate. That removes the end-of-month buying that plans with carryover produce, and it also means nobody is ever told that a balance they were promised has expired.
  • No payment above the ceiling. The 20 percent limit is applied inside the calculation, per order, before anything is paid. It is not a target that is reviewed later and corrected. That is what makes it safe to add layers to this plan without the cost of the plan drifting upward as the organisation grows.
  • No compression. An unqualified person is a wall in the organisation rather than a hole: the people below them do not slide up into their place. This is stated here rather than buried, because it is the rule most likely to surprise somebody who has read other plans.
  • No retail commission on customer sales. Customer volume books to the referring Conductor's account, counts toward their qualification and pays their upline. There is no separate retail margin paid on top of that.

One rule that runs the other way, in your favour. Volume from an unqualified person still pays everybody above them in full. Somebody having a bad month costs that person their own commission; it never costs you yours.

Section fourteen

Key terms

Every term used anywhere in this document, in alphabetical order, with the sections that use it.

TermDefinition
Active legA leg whose frontline person is qualified this month. Volume inside the leg is irrelevant to whether it is active.
BreakageCommission that the rates describe but nobody receives, because the person who would have received it was unqualified or out of reach. It is paid to nobody and held for nobody.
BuilderThe second rank. Requires a qualified month and two or more active legs. Also the rank that triggers the override in layer two for the people above.
Builder overrideLayer two. 1.5 percent of a first-generation Builder's group volume, or 1.0 percent of a second-generation Builder's group volume.
CeilingThe most any single order can pay across all layers: 25 percent of its Commissionable Volume, which is 20 percent of its price.
Commissionable Volume (CV)80 percent of Sales Volume, rounded to two decimals. Every percentage in this plan is applied to this figure and to nothing else.
CompressionSkipping over an unqualified person so the next qualified person moves into their place. This plan does not do it.
ConductorSomebody enrolled and holding a place in the organisation. Every person this plan pays is a Conductor.
CustomerSomebody who buys through a referring Conductor without joining. Never qualifies, never holds a rank, never earns.
DownlineEverybody below you at any depth.
FrontlineThe people you personally sponsored, and only those people.
GenerationA counting unit used only by the Builder override, marked out by Builders in the line above rather than by levels. Section seven gives the count.
GroupA Conductor plus their whole downline at every depth, with nothing excluded.
Group volumeThe Commissionable Volume of everybody in a group, added together. The basis for the Builder override.
LegOne frontline person plus that person's entire downline, treated as one branch.
Leg volumeThe Commissionable Volume of everybody in a leg, qualified or not.
LevelThe plain distance in the organisation from you down to somebody below you. Frontline is level 1.
Level payLayer one. 10, 5, 5, 3 and 2 percent of the Commissionable Volume of the people at levels 1 to 5 below you.
MemberThe name of the first rank. It requires enrolment and nothing else, and reaches one level.
Paid depthHow many levels below you your rank is paid on. Member 1, Builder 2, Leader 3, Director 4, Executive 5.
Personal Volume (PV)The volume printed on a product, which at Orvanna always equals its price in dollars.
Proportional reductionWhat happens when the claims in a bonus layer exceed the money an order has left: every claim in that layer is cut by the same fraction. Your statement shows the amount claimed, the amount paid and the reason.
Qualified monthA month in which your own Sales Volume reached 100.00 or more. The single gate in the plan.
RankThe title you hold for one month, recomputed from scratch each month.
Sales Volume (SV)The total Personal Volume of everything booked to your account in one calendar month, whether you bought it or a customer of yours did.
Second-leg bonusLayer three. 2.0, 2.3 or 2.5 percent of the volume of your second-strongest leg, depending on how many legs are active.
SponsorThe one person directly above you, who enrolled you.
Team Volume (TV)The Sales Volume of everybody strictly below you, added across the whole downline. It never includes your own.
UplineEverybody above you: your sponsor, their sponsor, and so on to the top.