- Home
- Membership
- COMPENSATION PLAN
Membership
Erom Healthcare USA Membership and Distributor Compensation Plan 한국어 버전 PDF
Erom Healthcare USA offers two types of memberships: Membership and Distributor, as described below. Additionally, Non-members can purchase products at the suggested retail price.
Membership
a. Members can purchase all products at member pricing.
b. Members can also access discounted Autoship and promotional products
c. Members are not eligible for bonuses. To qualify for bonuses, they must upgrade to Distributor status. Distributor registration is available through the "My Office" section on the Erom Healthcare USA website after logging in.
Non-Membership Order
Non-members can purchase products at the suggested retail price. However, they are not eligible for Autoship or promotional products.
Distributor
a. Distributors are independent contractors of Erom Healthcare USA and are eligible for the compensation plan.
b. Distributors can purchase all products at member pricing and access discounted Autoship and promotional products.
c. Bonuses are calculated and paid based on the PV volume within the relevant period (e.g.,1st–15th or 16th–end of the month) following the Distributor registration date.
d. Distributors who do not earn bonuses for six consecutive months are automatically reverted to Membership.
• Any remaining PV at the time of transition will be forfeited.
• Distributors who have transitioned to Membership can re-register as Distributors at anytime.
• Organizational placement (Sponsor and Placement) remains unchanged even after the transition.
Erom Healthcare USA Distributor Compensation Plan
-
At Erom Healthcare USA, we've designed a robust Compensation Plan to empower you to earn income by promoting and selling our premium nutrition, supplement, and beauty products. Here's how you can maximize your earnings through Direct Commission (Sales Bonus), Binary Commission (Team Bonus), and Unilevel Commission (Matching Bonus and Autoship Bonus) while serving your customers (affectionately known as Erom Healthcare USA Members) and expanding your team of Erom Healthcare USA Distributors.
| CM | EM | SM | DM | NL | PL | IL | FL | CL | SL | |
|---|---|---|---|---|---|---|---|---|---|---|
| AUTOSHIP BONUS | ||||||||||
| TEAM BONUS | ||||||||||
| SALES BONUS | ||||||||||
| MATCHING BONUS | ||||||||||
| RANK BONUS |
Achieving Active Status
To receive bonuses, Erom Healthcare USA Distributors must achieve Active Status. The following criteria satisfy Active Status for the current month:
a. Your Autoship PV volume during the month of your Distributor registration is 50 PV or more.
b. Your Autoship PV volume from the previous month is 50 PV or more
c. The combined Autoship PV volume of Members and Distributors whom you directly referred in the previous month is 200 PV or more (excluding your own Autoship PV volume).
If you fail to achieve Active Status:
a. You will not receive any bonuses.
b. All accumulated PV will expire.
Understanding Point Value (PV)
In Erom Healthcare USA, each product or service offered has a designated Point Value (PV) assigned to it. When distributors or members make sales or buy products for their personal use, they accumulate PV. This PV is a fundamental factor used to determine how much you can earn through the compensation plan. In essence, the more PV you and your team generate through product sales and purchases, the higher your potential earnings will be. PV is the key element in calculating your income within the Erom Healthcare USA system. To put it simply, 1 PV equals $1 in our system.
Payment of Commissions / Bonus
All qualified bonuses are paid twice each month, with the first period covering the 1st through the 15th and the second period covering the 16th through the end of the month. Payments are processed 15 days after the respective "Period closing" date. Payments are processed 15 days after the respective "Period closing" date, or the next business day if it falls on a holiday or weekend.
Bonus Structure
Sales Bonus
You have the opportunity to earn a 20% commission on the total Point Value (PV) generated by people you personally refer (Direct Referral) to Erom Healthcare USA.
• This includes both Erom Healthcare USA members and Erom Healthcare USA Distributors whom you introduced to the business.
• Your earnings are based on the total PV value of their purchases and sales for that period.
For example, assume that your Direct Referrals purchased 100 PV worth of products during the first period of the month. You would receive a Sales Bonus of 20 PV, which is equal to $20.
Team Bonus
Team Bonus is determined by the total PV value generated in two separate lines: the left and right lines, consisting of both distributors and members. The key factor in this bonus calculation is the line with the smaller PV value.
Here are the bonus percentages and associated conditions:
• 12% Bonus Rate: When the total PV from your personal purchases and the purchases made by your directly referred Members and Distributors is 100 PV or more during the period.
• 7% Bonus Rate: When the total PV from your personal purchases and the purchases made by your directly referred Members and Distributors is less than 100 PV during the period.
Important Notes:
• PV that qualifies for a bonus from the smaller line is removed from both lines after the period ends. As a result, the smaller line will be reset to 0 PV and the larger line will have some PV remaining.
• Remaining PV value from the larger line is saved for future use, calculated as the larger PV value minus the PV used to calculate the bonus.
• PV bonus is calculated in increments of 100 units. PV with a remainder of less than 100 in a line won't be considered for the Team Bonus calculation for that period.
• Any unused PV volume can be carried over to the next period, but it's essential to meet the active condition requirement to avoid expiration. If a Distributor does not meet the Active requirement, both lines will be reset to 0 PV.
• Maximum Team Bonus limit is $30,000 for each period closing.
Keep these details in mind to maximize your Team Bonus earnings and effectively manage your PV within the program.
Rank
Your rank is determined based on your smaller PV volume at each period's closing date. The PV volume requirements for each rank are as follows:
| Level | PV volume * |
|---|---|
| Servant Leader (SL) | 1,000,000 |
| Creative Leader (CL) | 500,000 |
| Friend Leader (FL) | 150,000 |
| Innovative Leader (IL) | 70,000 |
| Pioneer Leader (PL) | 35,000 |
| Vision Leader (VL) | 16,000 |
| New wave Leader (NL) | 7,000 |
| Diamond Member (DM) | 3,000 |
| Sapphire Member (SM) | 1,200 |
| Emerald Member (EM) | 400 |
| Crystal Member (CM) | The member who signed up |
* Rank is determined based on your smaller PV volume at each period's closing date.
Matching Bonus
The Matching Bonus is a bonus earned based on the Team Bonus earned by each lowerlevel member within your referral line. The specifics of how this bonus is calculated and allocated depend on your Rank within the plan, which can range from a minimum level of 1 to a maximum of level 7.
• To qualify for the Matching Bonus, a Distributor must meet the Active requirement and have at least one direct referral on his or her Level 1. There is no limit to how many individuals you can directly refer.
• As you progress through the ranks, you can earn Matching Bonuses not only from your direct referrals (your Level 1) but also from their referrals and so on, down to 7 levels deep. This means you have the ability to receive a percentage of the Team Bonus earned by those in your referral line.
• In cases where members within your referral line don't qualify for the Team Bonus, their Matching Bonuses will be determined by aggregating the bonuses of immediate lower-line members through a process called "Rollup." This ensures that bonus potential is maximized throughout your organization while recognizing your leadership and support.
| Depth Level | EM | SM | DM | NL | VL | PL | IL | FL | CL | SL |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 20% | 20% | 20% | 20% | 20% | 20% | 20% | 20% | 20% | 20% |
| 2 | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | |
| 3 | 5% | 5% | 5% | 5% | 5% | 5% | 5% | 5% | ||
| 4 | 5% | 5% | 5% | 5% | 5% | 5% | 5% | |||
| 5 | 5% | 5% | 5% | 5% | 5% | |||||
| 6 | 5% | 5% | 5% | |||||||
| 7 | 5% |
Autoship Bonus
The Autoship Bonus rewards you for helping your team both distributors and members maintain a monthly purchase volume (PV) of at least 50 PV through Autoship. To qualify, your downline distributors and members must be directly referred by you, and there's no limit to how many people you can refer.
• For each person you directly referred who maintains a 50 PV Autoship, you get a $5 Autoship Bonus.
• Your Autoship Bonuses can go beyond your direct referrals. As you achieve higher ranks within our compensation plan, you can earn bonuses from the Autoship activity of your direct referrals and their referrals, down to 7 levels deep. This means your earning potential grows as your team expands.
• In cases where a member within your referral line doesn't maintain the required 50 PV in Autoship volume, their Autoship Bonuses will be determined by aggregating the bonuses of immediate lower-line members through a process known as "Rollup," ensuring that no bonus potential is lost within your organization.
| Rank | CM | EM | SM | DM | NL | VL | PL | IL | FL | CL | SL |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Depth Level | 1 | 2 | 3 | 4 | 5 | 5 | 5 | 6 | 6 | 7 | 7 |
Rank Bonus
Rank bonuses will be determined according to the rank achieved as of the closing for each period, as outlined below.
| Rank | Rank Bonus |
|---|---|
| DM | $300 |
| NL | $500 |
| VL | $700 |
| PL | $1,000 |
| IL | $2,000 |
| FL | $3,000 |
| CL | $4,000 |
| SL | $5,000 |
Erom Healthcare Compensation Plan: 35% Cap
In the Erom Healthcare Compensation Plan, there's a maximum limit set at 35% for all types of compensation, which includes bonuses, promotions, and group fees. This cap is determined as a percentage of the total sales generated by the members and distributors of Erom Healthcare.
• 35% Cap: Erom Healthcare ensures that no more than 35% of the total sales generated by its members are paid out as compensation. This cap is in place to maintain financial sustainability.
• Proration: When the cumulative compensation payments approach or reach the 35% cap, Erom Healthcare adjusts the compensation payments. They do this by prorating and decreasing the potential compensation payments proportionally. This means that if the total compensation payments are about to exceed the 35% cap, each payment is reduced to ensure compliance with the cap.
In simple terms, Erom Healthcare has a rule that ensures they don't pay out more than 35% of their total sales as compensation. If they're close to reaching this limit, they adjust payments so that they stay within this cap to maintain the financial health of the company.
Subject to Change Clause
Erom Healthcare USA has the authority to modify, amend, or revise the terms and conditions of its Compensation Plan. This is at the sole discretion of the company, subject to compliance with applicable laws and regulations
• Notice of Changes: If any changes to the Compensation Plan are made, Erom Healthcare USA will inform all participants in advance. They will do this through written notice, which will be sent at 30 days before the changes take effect. You will receive this notice through email, mail, or on the official Erom Healthcare USA website.
• Participant Responsibility: It's important for participants to regularly review any updates to the Compensation Plan. If you have questions or concerns, don't hesitate to seek clarification or guidance.
• Acknowledgment: By participating in the Compensation Plan, you are essentially agreeing to this "Subject to Change Clause." This means that you understand and accept that the company can make adjustments to the compensation structure if needed due to business conditions, legal requirements, or other factors. These changes will be made while ensuring fairness and compliance with the law.
In essence, this clause allows Erom Healthcare USA to adapt its Compensation Plan as necessary to address changing circumstances, but it commits the company to notify participants in advance and follow legal requirements.