Split Rule (2013)

1. Split Rule (2013) Jane Fu, Jojo Zhou, Ying Lin & Anna Li’s team

2. General Principles Always put clients’ interest above our own interest. The writing agent should use the following principles/rules to determine a split: • Priority: Sideline First, Referral Agent Second, Recruiter Third, Downline Forth, Upline Fifth • Respect other people’s effort and team structure. • Trainee and trainer both respect sideline’s effort and split with sidelines first • Trainee respect Trainer’s effort and split cases where the trainer has given a field training • In case of grey area, it’s always wise to step back and give benefit to others. • Also ask your senior leader (SMD and above) or our committee for resolution • Do not play trick on existing rules, it is generally good business practice to put other people’s benefit above yourselves.

3. New Associate Responsibility(Take an ownership in Early Stage) • PPL (Analysis with your leader) & Start to do Inviting • Host BPM (Find the place, invite guests, make an appointment and learn from trainers, participate for the seminar present) • PFS (Make an appointment with your trainer for your own financial plan) • Dial in Conference call every week and go to field training • Big Event, EC • Be A, SA & MD ASAP (3-3-30, 10-10-30, 25-25-30)

4. 1. Compensation / Commission Rules

5. Split rule in our team • Match UP: • Fast Start: • New Licensed: Done 3-3-30 & get license within 90 days, SMD will reimburse $300.

6. Split Rule in Our team(Same SMD team) • If in same SMD team, who closed the case, split with the one who referred the case. (example: if A asked B for help first, but B didn’t closed the case, later on A asked C, C didn’t close the case also, Finally D closed the case, D split with A) Note: 1. If A doesn’t have license, who closed this case split with A’s upline until SMD level. 2. Better way to stay with one trainer. ****Referral take the first priority****

7. Split rule in our team (Con.) • Between sideline’s help: 50/50 • If sideline helped recruits or cases (even didn’t close in the first time). No matter what time closed this case, split with sideline. (example: A helps B’s team recruited C. When C’s case closed, no matter who closed this case, split with A) ****sideline take the first priority***

8. Rule 1: First Licensee Split A* A is the field trainer and closed the sale. A1* B is immediate licensee on the leg to the client (Note: B may or may not have direct contribution to the sale) A2* B* C referred the client. C Client * sign means licensed and appointed A splits with B. C gets field training.

9. Rule 2: Trainer Assistant Split • B split with A A* A did PFS or part of the PFS as a trainer(usually A is a MD and above), but A didn’t close the sale. B* B, acts as a trainer assistant, did the follow up and the closed the sale. B usually is a leader on the way to MD and above. C Client

10. Rule 2 – Unusual Case (Same SMD Base) A did PFS or part of the PFS as a trainer(usually A is a MD and above), but A didn’t close the sale. • A, B, and C: same SMD base • B split with C. (Priority -- Downline > Upline) • B should show/announce appreciation to A • One client, one trainer. The trainee is not encouraged to ask for help from multiple trainers when a case is not closed. A* B did the follow up and then closed the sale. B usually is a leader being built toward MD and above. B* C* C referred the client and has license. Client

11. Rule 3 – Out-of-SMD-Baseshop Split A is out of B’s SMD Baseshop. A did PFS or part of the PFS as a trainer, but A didn’t close the sale. A* • B split with A • B may encourage C to be the writing agent if the situation is more appropriate. If C is the writing agent, C split with A. • (“Priority” – “Sideline First”) B did the follow up and then closed the sale. B* C* C referred the client and is the trainee having license. Client

12. Rule 4 – Recruiter Split A helped B recruit C. A maybe a sideline or upline A* B closed C’s personal case. B* C • B splits with A If A is not the SMD of B and C • If A is the SMD of B, If B closed the case independently , B take 100%. If B is not a mature producer, A normally helps B to close the case, and B splits with A. • (Priority – “Recruiter > Downline > Upline”)

13. Rule 5 – Multiple Client Referral A* A is the writing and service agent. Client 1 B* B is the referring agent. Client 2 Client 1 referred Client 2 to A, Client 2 referred Client 3 to A, ... Client 3 Client 4 • Each client must be from a different household family • A split with B on client 1, client 2 and client 3’s cases • A takes 100% on Client 4’s case • A should encourage B to take over • If a client is recruited by A no matter how deep, B gets the recruit. If B is no longer in the business by the time of recruit, A should talk to B’s SMD

14. FAQ • “Do I split with trainer when I closed the case and my client/friend refused to buy from the trainer?” • Yes. Split commission is NOT for personal preference, but for the effort from each party with good faith. • “I, a trainee, observed my trainer to do the PFS for my friend who is ready to buy and wants me to write his case. May I be the writing agent?” • You should let your trainer to be the writing agent by edifying and helping trainer to get the case closed. Note, split anyway. • “What should I recommend if my member say “I would rather my SMD (or a senior trainer) close my case”” • The SMD should edify the licensed associate, and encourage the member to buy from a qualified licensed associate. • Committee’s Note: In response to all three questions above: everyone should respect the client’s choice. If the client specifically order to have no split agent, the writing agent should try to compensate the split agent otherwise.

15. For Old Policy If the face amount is increased on an existing policy, the original writing agent gets the commission (base on current WFG rule) If a new policy is written for an existing client, the new writing/service agent gets the commission If convert to a new policy with face amount increase, split should be based on the original agent’s contribution (no service/follow-up, no split) For specific case, use common sense (for example, if you know the original agent who work in the same office, notify the original agent of the client’s needs)

16. Agent’s Responsibilities Writing Agent: Use the principles and rules to split commission. Service Agent: Deliver policy, answer questions, take phone calls, and carry out other policy services, such as policy review and policy change. Be responsible for any mistake you’ve made and correct it Writing, split, and the service agent should all take the client’s request seriously, and try the best to help/communicate. In the client’s mind, all of us belong to the same company.

17. 2. Recruiting / Structure Rules

18. 30-day Rule If both teammates (X & Y) know a guest (Z), the one who successfully invites to the BPM/BMP has the priority to recruit and/or sell. BPM/BMP date is counted as Day One. One-on-one presentation, or BMP, is counted as a valid BPM. Drop-by is NOT counted as BPM Unsuccessful invitations are NOT counted either.

19. 30-day Rule (Con.) • For the following Scenarios, let’s assume X successfully invited Z • Scenario One: No recruit or sale is closed within 30 days (except the case still in process, case by case talk with SMD), Y can follow up with Z for recruit/sale.

20. 30-day Rule (cont’d) Scenario Two: (both intentional and unintentional) Violations within 30 days: Y recruited the X’s BPM guest Z within 30 days – Y transfers the new member back to X’s team Y sold product to the X’s BPM guest Z within 30 days – Y compensates X accordingly by points

21. 30-day Rule (Con.) • Scenario Three: Intentional back-off: • X recruited Z, or sold to Z within 30 days, and Y knows it (probably because X & Y are in the same office), Y should back off from Z. • Always avoid recruiting other team’s client, or selling to other team’s member. • As a higher standard, Y should congratulate Z, and encourage Z to work with X from now on.

22. 30-day Rule (cont’d) Scenario 4:Unintentional sale to other’s member after 30 days: Y unintentionally sold to Z, who is a member of X. Y split with X. Scenario 5:Unintentional recruit of other’s client after 30 days: Y unintentionally recruited Z, who bought from X before. The last policy written had not been delivered, or had been delivered within past 60 days. – use MAP program respect Z’s choice to determine the referring SMD and the accepting SMD

23. 30-day Rule (Con.) • The last policy written has been delivered more than 60 days before the day AMA is signed, Y gets the new recruit 100% (see notes) • Same-team Prospect: If uplineX and downlineY both know guest Z, X should encourage Y to approach/invite Z. Except: • X has a MUCH better relationship with guest Z • X has already put a lot of effort on Z before Y even started • Y worked on Z for a long time and made little progress

24. 30-day Rule (FAQ) During recruiting, I find out the prospect Z is a past client of X, what should I do? The best thing to do is to courteously notify X before signing up Z. Can I sell to other people’s member (Z) at all? You should not sell, unless Z is inactive for more than 6 months by WFG definition (see 6-month inactive transfer from field manual)

25. 30-day Rule (FAQ) • Committee’s Note: The goal of the 30-day Rule is to avoid un-healthy competition within our hierarchy, such as: • Y takes over X’s BPM guest • Y recruits X’s new client • Y sells to X’s new member If you don’t want to become X, then don’t act like Y.

26. Transfer and MAP • Transfer is discouraged except • 6-month inactive member’s transfer (current WFG rule) • Transfer based on the marriage of two members: WFG coding department should review such transfer case-by-case • Two SMDs initiate a MAP plan. • MAP is generally proposed by the referring SMD to the accepting SMD, and not the other way around.

27. Transfer and MAP • Terminated Member (member who no longer has a WFG code) may join any team, just like another new member. • Note: “a terminated member” is different than “a member whose license has been terminated”. A member may terminate his/her license but still have a valid WFG membership.

28. Committee’s Note • Respect other people’s team structure! Don’t play trick by persuading other team’s member to: • Be inactive for 6 months and then transfer to your team • Terminate membership and then join your team • MAP to your team because you are closer/better than their current SMD/trainer What we should do: Seeing members from another team/base, we should always congratulate them for joining a great team and a great business. Sideline help should be pre-approved by: • the trainee’s current SMD • the trainer’s current SMD

29. 3. Office / Cooperation Rules

30. Office Plug-in and Expenses • SMD and MD are responsible for the office: • SMD decides plug-in or not, office owner (the one who signs the lease) has the right to allow or dis-allow the plug-in. • MD/SMD pays his own rental or plug-in fee and share the cost with his/her reps in the same office. SMD is responsible for the baseshop: • SMD and MD decide how the office plug-in fee should be paid for their remote associates. • Licensed Associates should actively take responsibility on rental/fees. • It is generally encouraged that a low-level Associate takes early leadership role and opens his/her own office, if the office does not involve Security or plug-in, the associate does not need the approval from the SMD

31. Office-related Expenses/Rules • Fees/duties are generally not based on usage, it does not matter if you are full time or part time. • Office owners setup the office rules which we all have to follow. Office rules may differ from office to office and may include but are not limited to: • plug-in fee, office/BPM related cost sharing • office duties and housekeeping • dress code, at least business casual • fine and penalty for violation, etc. • Refuse to accept associates from other base if conflicts.

32. Rental Expenses • If your team rents a place, such as a hotel meeting room to do a business event: • If all the attendees are from the same SMD baseshop, all the licensed teammates who attend the seminar share the cost, each share is decided by the SMD. • If associates from multiple baseshops attend the same BPM, the cost should be split by SMD baseshops.

33. Sideline Coorperation • If plug-in needed, let your SMD or MD contact the BOM or office owner first. • The plug-in associate needs to follow the rules of accepting office, which may include how to run contest or promotions etc. • If sideline needs local leader’s help, remote SMD needs to contact the local SMD. Local leader and SMD should not assume the remote SMD is OK for recruiting or field training. The remote SMD has the right not to allow his/her associate to go to field with local leaders.

34. It’s our business; It’s our team; It’s team’s team • 公正严明, 有容乃大 • 至诚不欺，英雄基业 • **Welcome Suggestion • **All the Rule Reserved the right to change** • **This split rule for our Team use only**