ADMINISTRATIVE
SETUP & BUSINESS POLICY IMPLEMENTATION
INTRA-CITY
CROSSOVER OF NETWORK - AN UNDERSTANTING AMONGST CCs
The network
is restricted to municipal limits of the city. Each PIN code is considered
as one zone having one CC. A Member Customer from one Pin code zone
(say Z-1) can freely sponsor another person of different PIN code zone
(say Z-2) of the same city, viz., Member Customers of Z-2 are sponsored
in Z-1. Since the network is bound within city only, therefore if a
Member Customer of different city wants to sponsor a person in Z-2,
has to re-enroll himself under the CC of Z-2 with a new network. The
loss of Member Customers in such circumstances (like loss of Z-2 by
Z-1 by virtue of intra-city crossover) is difficult to ascertain. The
CCs, being management persons are compensated via revenue sharing module,
have to take this event in constructive spirit.
MEMBER
CUSTOMER WHO INTEND TO START NETWORK IN OTHER CITIES
Any Member
Customer willing to start network in a new city, can do so. He has to
inform the CC/CCC of the City/Zone so that a dummy CC is appointed in
new city. He has to start all afresh and has to take fresh registration;
thereafter he can sponsor his contacts and start getting the accrued
incentives of the new network also. As and when a suitable person is
available to take the responsibility of the city/zone, the Company appoints
him as CC as per rules and regulations.
ENTRY
OF MEMBER CUSTOMERS TO STAR CLUB
Apart
from the network incentives, any Member Customer can find entry in
to Star Club of recognition holders.
The
Member Customer who, within 10 levels, has earned:
-
Rs.
20,000/- within 10 levels : gets 1% share of monthly turn over and
is designated as STAR.
-
Rs. 50,000/- within 10 levels : gets 2% share of monthly turn over
and is ASSOCIATE STAR.
-
Rs.
1,00,000/- within 10 levels: gets 3% share of monthly turn over
and is FELLOW STAR.
-
Rs.
2,00,000/- within 10 levels: gets 4% share of monthly turn over
and is ROYAL STAR.
CONDITIONS
FOR ENROLEMENT IN STAR CLUB & RELEASE OF BONUSES:
-
STAR
: Every qualifier is eligible.
-
ASSOCIATE
STAR : Who has two STAR MEMBERS; one each in their two legs.
-
FELLOW
STAR : Who has three STAR MEMBERS; one each in their three legs.
-
ROYAL
STAR : Who has one FELLOW STAR & two ASSOCIATE STARS; one each
in two legs other than that of Fellow Star.
MEMBER
CUSTOMER WHO INTEND TO BECOME CC
APPOINTMENT
THROUGH PROPER CHANNEL:
In a city
network any Member Customer having STAR designation is eligible to apply
for CC of the city of his choice on first come first served basis. Provisional
appointment will be given. The CC will be eligible for managerial payments
with immediate effect. However, such persons have to undertake all the
roles & responsibilities as described in Master Business Protocol and
will be allowed 30 days to meets the target of 66 sales as well as 12
member Merchant tie-ups in the new city/zone, failing which the time
extension will be at the discretion of the Management, that too when
there is no application in waiting list. In case of waiting list, the
city/zone will be handed over to the next senior most person in the
queue and the managerial bonuses/incentives released during the tenure
will be deducted from his royalties along with the deactivation of his
candidature for CC.
DIRECT
APPOINTMENT:
Any Member Customer, who directly wants to be appointed as CC of
city/zone of his preference, can do so by applying his candidature.
The person is given provisional appointment. Once he meets the target
of 66 sales as well as 12 member Merchant tie-ups in 30 days time, his
managerial and other benefits are released. In case of failure in meeting
the target, the time extension is at the discretion of the Management,
that too when there is no application in waiting list. In case of waiting
list, the city/zone will be handed over to the next senior most person
in the queue and the bonuses/incentives accrued during the tenure of
the first person will be released to him along with the deactivation
of his candidature for CC.
MANAGERIAL
PAYMENTS TO CITY COORDINATOR
City Coordinator
is a preferred person and is considered at the first level of the Company
Management. He/She is the in-charge of the city/zone and is responsible
for over all implementation of the guidelines/regulations as decided
in consultation with the Senior Management of the Company. All administrative
positions are designed to be filled by promoting the CC's only. In lieu
of holding key positions and running the office on behalf of the Company,
the CC is entitled for certain basic managerial payments as well as
target based incentives over and above the routine gains as described
in business earning head.
(A)
Following compensation will be initiated for CC as soon as 100 cards
are sold in the City/Zone:
-
Mobile phone compensation = Rs. 1000/- p.m.
-
On
a/c of Local Conveyance/misc. exp. = Rs. 1,500/- p.m.
-
Basic
remuneration = Rs. 2,500/- to 7,500/- p.m. (as per performance slabs
detailed as under)
Performance Slabs for basic remuneration:
-
Minimum
50 sales per month to qualify for = Rs. 2,500/-
-
Every
25 sales per month after first 50 sales = Rs. 500/-
-
Upper
slab of basic remuneration of CC = Rs. 7,500/- p.m.
(B)
The CC is offered additional Zone Grooming Incentive on first 200 sales
from the city, which is one time payment only.
First 200 sales from the city @ 200/- per sale= Rs. 40,000/-
| Distribution
pattern: |
Due
Amount |
Released Amount |
| 1
- 20 sales @ 100/- per sale |
=
Rs. 2000 |
=
Rs. 2000/- |
| 1-100
sales @ 150/- per sale |
=
Rs. 15000 - 2000 |
=
Rs. 13000/- |
| 1-200
sales @ 200/- per sale |
=
Rs. 40000 - 15000 |
=
Rs. 25000/- |
| |
|
=
Rs. 40000/- |
(C)
CAR PLAN: On achieving the minimum target of 300 sales from the
city, the CC enters into Car Plan and is assisted to buy an entry level
car (worth approx. 2 Lac) under financing procedure and EMI of approx.
5,000/- p.m. is paid from his accrued royalties through a joint account
opened by the CC with the Company. Thereafter the CC has to reach minimum
100 sales per month from the city to remain in the Car Plan.
CC WHO
INTEND TO BECOME CCC
Chief City
Coordinator is an administrative position and the next level of the
Company Management. Any CC, who has developed his network in his city/zone
and is designated as FELLOW STAR, can apply for promotion as CCC and
develop two more cities/zones. The CCC is answerable for the growth
two new cities/zones through newly appointed CC's as well as his own
first network. Such persons have to undertake all the roles & responsibilities
as described in Master Business Protocol. (Rules
& Regulations Section)
MANAGERIAL
PAYMENTS TO CHIEF CITY COORDINATOR
The CCC
is entitled for certain basic managerial payments as well as target-based
incentives over and above the routine gains as described in business
earning head. The CCC has to look after the growth and implementation
of programme through additional two CCs and ensure that all of them
reach their stipulated targets. As soon as the two newly appointed CCs
qualify for their managerial payments, the CCC compensation will also
be initiated simultaneously.
(D) Following
compensation will be initiated for a CCC as soon as two new CC's qualify
for their managerial payments:
- Mobile
phone compensation = Rs. 1,500/- p.m.
- On
a/c of Local Conveyance/misc. exp. = Rs. 2,000/- p.m.
- Basic
remuneration = Rs. 7,500/- to 12,500/- p.m.
- Out
Station traveling = AC 3Tier as per actuals
- Boarding
& Lodging for out station traveling = A/c room (single)
- Daily
allowence = As per actuals
Performance
Slabs from all the three zones for basic remuneration:
-
Minimum
250 sales per month to qualify for = Rs. 7,500/-
-
Every
50 sales per month after first 200 sales = Rs. 1,000/-
-
Upper
slab of basic remuneration of CCC = Rs. 12,500/- p.m.
(E) The
CCC can maintain the original place of CC of his first city/zone and
continue getting the managerial payments of CC. This is to assist
him develop his own administration for maintaining the city/zone.
He also will continue getting the Car Plan benefits side-by-side.
(F)
The two newly appointed CCs' would also be given the leverage of first
200 sales Zone Grooming Incentive of Rs. 40,000/- for each new zone;
to be disbursed directly to the respective CCs' on achieving the stipulated
targets.
(G) HOME
PLAN: On achieving the minimum target of 500 sales from all the
cities/zones the CCC enters into Home Plan and is assisted to buy
a house under financing process and EMI of approx. 8,500/- p.m. is
paid from his accrued royalties through a joint account opened by
the CCC with the Company. Thereafter the CCC has to reach minimum
300 sales per month from all the cities through respective CCs to
remain in Home Plan.
(H) In
order to qualify for various royalties/bonuses/payments (other than
network incentives) the CCC should have at least 15% business in each
of two new cities/zones, out of cumulative sales of three cities/zones
under his charge.
Diamond
Club For Senior Management
The Diamond
Club offers a recognition ladder for the CCCs/Zonal CCs/State CCs.
Any one rising up in the ladder will be offered the following titles:
-
Diamond/CCC
: The CCC having 3 CCs, controlling 3 /zones
-
Double
Diamond/ZCC : The CCC having 3 CCs controlling 3 cities
-
Executive
Diamond/DCC : 3 ZCC controlling respective cities/zones
-
Royal
Diamond/SCC : 3 DCC controlling respective cities/zones
For all
the members, 1% of the turnover under their control
will be pooled and divided proportionately amongst all the recognition
holders.
Based on this seniority Zonal Revenue Controls will
be handed over after the approval in the Board meeting.
Child Education & Medical Protection will get initiated
as per the seniority.
INAUGURAL
BUSINESS PROMOTION PLANS FOR MEMBER CUSTOMERS
During
the inaugural month in any city/zone the following additional incentives
will be offered for performers in their respective network:
-
First
3 levels filled in 30 days = Rs. 2,500/-
-
50
cards sold in 30 days (in more than one leg in 2:3 ratio) = Rs. 5,000/-
-
100
cards sold in 30 days (in more than one leg in 2:3 ratio) = Rs. 10,000/-
-
50
cards sold in each of three groups = Computer
-
100
cards sold in each of three groups = Motor Cycle/Two wheeler
The Member
Customers will get extra advantage of scratch cards to be distributed
through Member Merchants. The cards will be given to the Member Customers
on one time minimum purchase volume (to be decided by respective Member
Merchants).
-
Approx.
1200 cards will be offered amongst 12 Merchant Members.
-
All
the cards will bear some kind of gifts.
-
The
gifts can be collected from the Member Merchant/CC.
-
The
expected list of gift items include (the items are subject to change
within same price tag)
-
Expensive
Gifts will be delivered by the CC. Rest all others can instantly be
collected by the Member Merchants.
REVENUE
SHARING MODULE ON THE BUSINESS OF THE STATE
PHILOSOPHY:
At the opening of business in a new state, the active leaders are offered
to participate on the revenue sharing basis. Whenever the Company decides
to launch the project in a new state, the existing active leaders, and
new leaders as well, are invited to participate by way of contribution
in the seed money required upfront to open the state and share the revenue
generated from the particular state. This process will eventually help
the system in Finance control sharing as well as authority sharing thereby
paving the path for spread of the system in interior area.
GOVERNANCE:
The majority board decides the seed capital amount for the concerned
state and thereafter the applications are called through the active
leaders. Preference will be given to the persons who are active in this
business and will be working in the state. The management has right
to accept or reject the application without notice.
PARTICIPATION
STRATEGY:
In the process of starting nationwide launch, the Company plans to start
in a particular state with the release of advertisement for appointment
of City Coordinators (sa. Distributors) in various cities. Alternatively
the existing CCs can find the suitable persons through their contacts
in various cities. The seed capital for a typical state has been estimated
as Rs. 3.0 Lac. Active leaders can participate in the Revenue Sharing
by contributing in the multiples of Rs. 30,000/-.
RETURN:
In the current financial year the Company will allocate Rs. 50/- out
of the sale of every card in the state against the Revenue Share and
will be distributed amongst the contributors in proportion of their
seed capital contribution. Thereafter every year a contributor can get
maximum upto 2X of their contribution as Revenue Share
in a financial year.
The amount
for distribution in Revenue Share is a decision taken by the majority
Board of Directors of the Company in every financial year.
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