Detailed Compensation Plan MyCenterbid

COMPENSATION PLAN

MyCenterbid Ltd. Nicosia, Cyprus Revised June 2013

MYCENTERBID LTD | COMPENSATION PLAN

2

TABLE OF CONTENTS

INTRODUCTION 3

COMMISSIONS AND BONUSES 5

Signup Packages 5

Personal Team Bonus 6

Dual Team Bonus 7

Client Aquisition Points (CAPs) 8

Client Aquisition Bonus (CABs) 8

Surplus Calculation Formula 8

Auction Winner Bonus 9

Dream Car Bonus 9

Dream Home Bonus 10

Auction Sellback 10

Charge Backs & Refunds 10

APPENDIX 11

Dream Car Bonus Policy 11

Dream Home Bonus Policy 11


3

INTRODUCTION

M yCenterbid is a Network Marketing business which uses the power of personal

recommendation and social media to promote its products. The company is the marketing

arm of the new online auction website centerbid.eu which provides customers with the chance

to win consumer products at a dramatically reduced price.

C entral to the success of the auction is the network of affiliates established by MyCenterbid.

These global partnerships will utilize personal connections to promote the Centerbid.eu site,

harnessing the power of social media to build brand awareness and introduce new customers

to this amazing online opportunity.

B y utilizing the above our aim is to earn and keep our affiliates trust, respect and loyalty so

that they can achieve their personal and financial goals. Along the way they’ll be helping

thousands of customers around the world to save money and have fun.

This compensation plan is apliccable for all Independent Affiliates in MyCenterbid.

Personal Team - Organization

The Personal Team is very simple: Who sponsored whom? If an Affiliate personally

sponsors seven Affiliates, then he/she will have seven different teams (sometimes called

“legs”). Each of these are independent from the other, and each will probably have a

different number of Active Affiliates and Customers over time. An Affiliate’s Personal

Organization only includes Affiliates and Customers added through a direct line of

sponsorship and is independent of the Dual Team Organization. (See Fig. 1)

Dual Team - Organization

The Dual Team Organization is built in two legs. Each Affiliate has a left side and a right

side and may only be related to a single Affiliate on each side. This looks like the example

in Figure 2.

In the example, Affiliate A has one relationship on his left, Affiliate B, and one relationship

on his right, Affiliate C. Affiliates B and C each have exactly the same relationships under

them, left and right.

If Affiliate A sponsors another Affiliate, he/she must go under B or C and A chooses where

he/she goes. This is called “Spillover.” Affiliate D would spillover into B or C’s organization.

Note: An Affiliate may have Affiliates in his/her Dual Team Organization who are not in his/her Personal Team

Organization because of “Spillover.” These Affiliates are a part of his/her Dual Team Organization, but they are not

a part of his/her Personal Team Organization.


4

THE DIFFERENCE BETWEEN AFFILIATES AND CUSTOMERS

To understand MyCenterbid’s Compensation Plan, it is important to understand the distinction between Affiliates

and Customers. MyCenterbid is in the business of acquiring new Customers for our Penny Auction who purchase

our Products (Bid Packages). Affiliates are compensated based strictly on the sale of MyCenterbid’s and

Centerbid’s Products (both their personal sales and the sales made by their Team).

No commissions are paid for recruiting new Affiliates.

Additionally, only Affiliates may be placed in any of the two bonus Tree’s/organizations.

Customers are listed separately under ”My Customers”.

AFFILIATE BUSINESS SYSTEM PURCHASE REQUIREMENT

In order to familiarize new Affiliates with MyCenterbid’s Products, sales techniques, sales aids, and other matters,

the Company requires that Affiliates purchase an Affiliate Business System for an initial fee and a monthly fee

from then on. Except for the purchase of the Affiliate Business System, no person is required to purchase

MyCenterbid products or sales aids, or to pay any charge or fee to become an affiliate. The Affiliate Business

System is an online tool that includes a personalized marketing website and a back office system with essential

sales and marketing tools to help Affiliates build their MyCenterbid business. The initial and monthly fees for the

purchase of the Affiliate Business System are not commissionable.

ACTIVE CUSTOMERS

Active Customers will be listed in the Affiliates’s back office under “My Customers”.

Customer Sales Volume is credited as Client Aquisition Points (CAPs), to the affiliate who generated the sale once

the bids are used in the auction. CAPs can generate a bonus every day, for 30 days and are used to calculate how

much of the daily surplus from the penny auction the Affiliate will receive in form of a Client Aquisition Bonus

(CAB) .

GOOD STANDING STATUS REQUIREMENT

All MyCenterbid Affiliates must be in “Good Standing” to be eligible to accumulate sales points, CAPs or to earn

commissions and bonuses.

An Affiliate is/remains in Good Standing by paying his/her monthly Affiliate Business System renewal fee.

Once an Affiliate is in Good Standing, he/she begins to accumulate Sales Points toward earning commissions and

bonuses and he/she continues to accrue Sales Points while he/she remains in Good Standing. Commissions and

Bonuses are paid once an Affiliate is in Good Standing and provided he/she remains Active and Tier Qualified.

a) If an Affiliate becomes and remains Inactive for more than thirty (30) days, the Sales Volume he/she has

accumulated will irrevocably expire.

b) If an Affiliate becomes and remains Inactive for more than sixty (60) days at any time, the Affiliates’s Agreement

may be terminated at the option of MyCenterbid. An Affiliate terminated for inactivity cannot register for a new

position for twelve (12) months.

Enrollment as an Affiliate creates a “Business Center” in the MyCenterbid Dual Team Tree and the

MyCenterbid Personal Team Tree, which tracks the sales generated by the Affiliate and his/her team.

Affiliates can be, and often are, also Customers.


5

COMMISSIONS AND BONUSES

The following bonuses will be paid to every Affiliate who meets the qualification requirements in MyCenterbid.

DUAL TEAM QUALIFICATION

To qualify for the Dual Team Bonus payouts, you the Affiliate must have sponsored

at least one (1) Affiliate in the left team and one (1) Affiliate in the right team. Fig 3.

These two (2) Affiliates must be active and in ”Good Standing” to count in the

qualification requirement.

BONUS TIERS:

The following Bonus Tiers unclock the various commission levels. An Active Customer is someone that has verified

their account, logged in and placed a bid in one of the Centerbid Auctions. (Free Auctions do not count.)

IMPORTANT:

There is "NO INDUSTRY STANDARD" or "NO INDUSTRY AVERAGE" used for calculation of surplus and bonus

payouts in Centerbid. This is a real business and all revenue is calculated on a daily basis indicative of auction

activity. There is no guarantee that CAPs will generate any bonuses.

SIGNUP PACKAGES

There are four (4) different signup packages to choose from when you signup to become an affiliate in

MyCenterbid.

1. Affiliate System 2. Builder Pack 3. Deluxe Pack 4. Ultimate Pack

Price: €100 Price: €300 Price: €700 Price: €1,400

Affiliate System Affiliate System Affiliate System Affiliate System

30 day Maintenance 30 day Maintenance 30 day Maintenance 30 day Maintenance

25 Free Bids 25 Free Bids 25 Free Bids 25 Free Bids

100 Marketing Bids (U) 300 Marketing Bids (U) 1000 Marketing Bids (U)

100 Personal Bids (B) 300 Personal Bids (B) 300 Personal Bids (B)

100 PV 300 PV 300 PV

Generates the following 50 SP (B) + Unilevel (U) 150 SP + Unilevel 150 SP + Unilevel

Levels Tier 1 Tier 2 Tier 3 Tier 4 Tier 5

Monthly Qualification

Requirements

50 PV 100 PV

150 PV

200 PV

300 PV

Personally Referred Customer

Requirement

Refer Minimum 1 Active

Customer

Refer minimum 3 Active

Customers


Customers


Customers


Customers

CAPs Awarded for bids used by

personally referred

customers in Centerbid

0,60 CAPs per bid used by

personally referred



personally referred



personally referred



personally referred


1 CAPs per bid used by

personally referred



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PERSONAL TEAM BONUS

As people join your team and generate Marketing Bid sales, you earn Personal Team bonuses.

The more sales generated, the more you can potentially earn. Personal Team bonuses are calculated from

sales of Marketing Bids, to be used in the Centerbid Penny Auctions.

MARKETING BIDS

Marketing bids cost €1 per bid and can be shared with any of your personally referred customers or

used by yourself. Every time someone you have referred uses a bid you will be awarded CAPs based on your Tier

Qualification.

Levels Tier 1 Tier 2 Tier 3 Tier 4 Tier 5

Monthly Qualifications Requirement

50 PV 100 PV

150 PV

200 PV

300 PV

Customer Requirement

1 Active Customer

3 Active Customers

5 Active Customers

10 Active Customers

20 Active Customers

Level 1 5% 5% 5% 5% 5% Level 2 5% 5% 5% 5% 5% Level 3 5% 5% 5% 5% 5% Level 4 0.5% 0.5% 0.5% 0.5%

Level 5 5% 5% 5% 5%

Level 6 0.5% 0.5% 0.5%

Level 7 0.5% 0.5% 0.5%

Level 8 0.5% 0.5% 0.5%

Level 9 0.5% 0.5%

Level 10 5% 5%

Level 11 0.5%

Level 12 0.5%

Level 13 0.5%

Level 14 0.5%

Level 15 5%


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DUAL TEAM BONUS

Each time your team generates sales volume in both your left and right teams, whether you made the sale or not,

which adds up to a total of 300 Sale Points in any of the following combinations: 100:200, 150:150 or 200:100 ratio

you earn a commission cycle.

Each commission cycle pays out a €50 Bonus.

You can do this over and over again each day up to €25,000.- per week. Any unbalanced sales volume is carried

forward for six months from point of sale.

Affiliates warn on the sales of those Affiliates you, your up-line and your down-line place within your team.

PERSONAL BID PACKAGES (PV PACKAGE)

The following bid packages generate sale points (SP) in the Dual Team and monthly personal volume (PV) for Tier

Qualifications. The PV bid packages does not generate any personal team bonus (Unilevel Bonus). PV Packages

generates sales points (SP) in the Dual Team Plan (Binary) only.

COMMISSION CYCLES

How to calculate the value of a commission cycle:

Multiply the 300 VPs that that make up each commission cycle by the current X-Factor to determine the value of

the cycle. The standard value of the X-factor is 0.1666 which makes the standard value of each commission cycle

€50.-

NOTE:

If in any given week, if the allocated ratio of gross incoming sales is not enough to cover the commission cycle

payout, the x-factor will be slightly adjusted. If the company wants to increase the commission cycle payout for

any reason, the x-factor will be slightly adjusted. This will slightly reduce or increase the normal commission cycle

payout of € 50 per cycle, but will ensure the long term income opportunity with MyCenterbid for all Affiliates.

PACKAGE BIDS SALES PONTS PRICE

50 PV PACKAGE 50 Personal Bids 25 Sale Points €50





150 SP

LEFT

150 SP

RIGHT

1 CYCLE

€50.- + =


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CLIENT AQUISITION POINTS (CAP)

When someone you have referred places a bid at an auction in Centerbid you are awarded CAPs.

The amount of CAPs awarded is determined by your own Tier Level Qualification. As your performance increases,

you are awarded more CAPs.

CAPs retire after 30 days.

NOTE: There are no CAPs or bonuses generated from the 25 FREE bids everybody gets when signing up in

Centerbid and MyCenterbid. All CAPs have a ZERO value and cannot be exchanged or converted to cash.

CAPs cannot be purchased, they can only be awarded. There is no guarantee that CAPs will generate any bonuses.

CLIENT AQUISITION BONUS (CAB)

Affiliates that have been awarded CAPs can earn a CAB bonus calculated from the daily surplus in Centerbid.

Only USED BIDS are taken into the calculation of the daily surplus.

The CAB is driven by 50% of the daily Centerbid Surplus.

CAB Bonuses are calculated daily right after midnight GMT.

SURPLUS CALCULATION FORMULA

NOTE: Unused bids are not calculated in the daily surplus. Until a bid is used it’s a financial liability for Centerbid,

hence cannot be taken into our daily surplus calculation.

STEP 1

TODAYS REVENUE

VALUE OF PAID BIDS USED

TODAY

+

VALUE OF PAID, WON

AUCTIONS TODAY

+

20% OF TODAYS SELLBACK

=

TODAYS REVENUE

STEP 2

TODAYS SURPLUS

TODAYS REVENUE

-

TODAYS PRODUCT COST FOR

WON AUCTIONS

-

TODAYS ADMINISTRATIVE COST

=

TODAYS SURPLUS

STEP 3

TODAYS CAP PAYOUT

50% OF TODAYS SURPLUS

/

TODAYS TOTAL AMOUNT OF

CAPS IN THE SYSTEM

=

TODAYS CAB PAYOUT

PER CAP


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AUCTION WINNER BONUS

If you have referred a customer that wins an auction in Centerbid, You will be awarded an Auction Winner Bonus.

This bonus will be paid three levels deep as described in the chart below.

Bonus Example:

A customer you have referred wins a brand new iPad for €250.11

The auction surplus is calculated to €12105.61

Your customer saves over 50% off retail on the iPad.

You earn a €605,28 auction winner bonus for referring that customer.

Your sponsor earns a €363.28 bonus.

Your sponsor’s sponsor earns a €242,11 bonus.

NOTE: Auction winner bonuses are generated when the auction is paid for.

DREAM CAR BONUS

Refer five (5) Affiliates who refer five (5) Affiliates each, who refer five (5) Affiliates each, and each Affiliate has a minimum 100PV

each month. The total of Affiliates required is: Level 1: 5 Affiliates, Level 2: 25 Affiliates, Level 3 125 Affiliates.

All Affiliates must remain in good standing with a minimum 100 PV each.

When an Affiliate achieves the monthly bonus requirements, MyCenterbid will pay him/her up to €1,500 per month as a Dream

Car Bonus. The Affiliate must have an Active Status at 11:59:59 PM (Midnight) GMT on the last day of the monthly pay period to

be qualified to earn the Dream Car Bonus for the following month.

The Affiliate must also have submitted either a copy of the car financing agreement or payment receipt by the fifteenth day of the

month following the month in which he/she first achieves the bonus. Documentation must be submitted in a form acceptable to

MyCenterbid to prove purchase or leasing of a car. Dream Car Bonuses are paid to the Affiliate monthly, on the 30th of each

month, as long as the affiliate qualifies for the bonus. Qualifying organization must be in good standing and meet the monthly PV

requirements every month. For more details on the Dream Car Bonus, please see Appendix: Dream Car Bonus

Bonus Levels Comm %

YOU 5%

Your Sponsor 3%

Your Sponsor’s Sponsor 2%

Total Bonus Percentage 10%

Example: Jane achieves the Dream Car Bonus on June 4. She will be eligible for the July Dream Car

Bonus, which is paid on August 30, provided she submits acceptable documentation by July 15.


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DREAM HOME BONUS

Refer ten (10) Affiliates who refer five (5) Affiliates each, who refer five (5) Affiliates each, and each Affiliate has a minimum

100PV each month. The total of Affiliates required is: Level 1: 10 Affiliates, Level 2: 50 Affiliates, Level 3: 250 Affiliates.

All Affiliates must remain in good standing with a minimum 100 PV each.

When an Affiliate achieves the monthly bonus requirements, MyCenterbid will pay him/her up to €3,000 per month as a Dream

Home Bonus. The Affiliate must have an Active Status at 11:59:59 PM (Midnight) GMT on the last day of the monthly pay period to

be qualified to earn the Dream Home Bonus for the following month.

The Affiliate must also have submitted either a copy of the home financing agreement or payment receipt by the fifteenth day of

the month following the month in which he/she first achieves the bonus. Documentation must be submitted in a form acceptable

to MyCenterbid to prove purchase or leasing of a home. Dream Home Bonuses are paid to the Affiliate monthly, on the 30th of

each month, as long as the Affiliate qualifies for the bonus. Qualifying organization must be in good standing and meet the

monthly PV requirements every month. For more details on the Dream Home Bonus, please see Appendix: Dream Home Bonus

AUCTION SELLBACK

Anyone who wins an auction in Centerbid can choose to sell back the product to Centerbid. If sellback is chosen,

Centerbid will pay 80% of the products retail value as cash to your Centerbid Cash account.

You can use this cash to either purchase new bids to bid at a dfferent auction or you can withdraw the cash via

one of the pay-out options available in the centerbid back office.

NOTE: If you use the sellback option, bids used by you in that auction willnot be returned.

CHARGE BACKS & REFUNDS

MyCebterbid reserves the right to recover Sales Volume credited or commissions paid to an Affiliate any time a

commissionable purchase of any kind is refunded to a Customer in accordance with the EU Distance and sales

outside permanent sales outlets Act.

Example: John achieves the Dream Home Bonus on February 4. He will be eligible for the March

Dream Home Bonus, which is paid on April 30, provided He submits acceptable documentation by

March 15.

Example: Sarah used 120 bids to win an iPad2 valued €500. Se really wants the iPad3 so she decided to

sell back the product and use the cash to purchase the iPad3 by her self.

In this example, Sarah would receive €400 to her cash account.


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APPENDIX

DREAM CAR BONUS POLICY

Payments by MyCenterbid will be maintained as long as the Affiliate maintains his/her qualification. The Affiliate

must be willing to provide a promotional picture and personal biography.

MyCenterbid will make payment to the Affiliate, up to €1,500 monthly. MyCenterbid will issue a bonus to the

Affiliate in the amount of the actual car payment, up to but not exceeding the monthly maximum (e.g., An Affiliate

with a €700 car payment would only receive a bonus of €700).

DREAM CAR REQUIRENTS

Car must be new. If purchased, it must be within the last three model years. If pre-owned, it must “look

new.”

Color of the car must be White.

Purchase or Lease is acceptable.

Must place the MyCenterbid logo visible on the car.

Affiliate must be in Good Standing and have a minimum of 100PV each month.

Minimum 100 personal bids must be used in Centerbid by the qualifying affiliate each month.

Group must have minimum 100 pv each.

The group must use minimum 100 personal bids in Centerbid each month.

DREAM HOME BONUS POLICY

Payments by MyCenterbid will be maintained as long as the Affiliate maintains his/her qualification. The Affiliate

must be willing to provide a promotional picture and personal biography.

MyCenterbid will make payment to the Affiliate, up to €3,000 monthly. MyCenterbid will issue a bonus to the

Affiliate in the amount of the actual home payment, up to but not exceeding the monthly maximum (e.g., An

Affiliate with a €2,500 home payment would only receive a bonus of €2,500).

DREAM HOME REQUIRENTS

Can be a new home or the Affiliates existing home.

Can be an apartment, condo or house.

Can be leased or purchased.

Must fully document that residence belongs to the Affiliate.

Affiliate must be in Good Standing and have a minimum of 300PV each month.

Minimum 300 personal bids must be used in Centerbid by the qualifying affiliate each month.

Group must have minimum 100 pv each.

The group must use minimum 100 personal bids in Centerbid each month.

Entertainment & Humor

Detailed Compensation Plan MyCenterbid