Lifevantage Corp 10-Q, filed Feb 5, 2025
Lifevantage Corp (LFVN)
10-Q
2025-02-05
For: 2024-12-31
View Original
Added on
April 10, 2026
About this 10-Q
Lifevantage Corp filed this 10-Q on February 5, 2025, covering the quarter ended December 31, 2024.
Headline figures
Quarter ended December 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $67.76M
- up 31.3% from $51.62M a year earlier
- Net income
- $2.55M
- compared with a net loss of $656K a year earlier
- Diluted EPS
- $0.19
- compared with -$0.05 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________________________________________________________
Form 10-Q
________________________________________________________________________________
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2024
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
FOR THE TRANSITION PERIOD FROM TO
Commission file number: 001-35647
________________________________________________________________________________
(Exact name of Registrant as specified in its charter)
________________________________________________________________________________
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |||||||
(Address of principal executive offices, including zip code)
(801 ) 432-9000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
________________________________________________________________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company,” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ¨ | Accelerated filer | ¨ | ||||||||
| ☒ | Smaller reporting company | ||||||||||
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of shares outstanding of the issuer’s common stock, par value $0.0001 per share, as of February 4, 2025 was 12,551,281 .
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This quarterly report on Form 10-Q, in particular “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and the information incorporated by reference herein contains “forward-looking statements” (as such term is defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). These statements, which involve risks and uncertainties, reflect our current expectations, intentions, or strategies regarding our possible future results of operations, performance, and achievements. Forward-looking statements include, without limitation: statements regarding future products or product development; statements regarding future selling, general and administrative costs and research and development spending; statements regarding the future performance of our network marketing efforts; statements regarding our expectations regarding ongoing litigation; statements regarding international growth; and statements regarding future financial performance, results of operations, capital expenditures and sufficiency of capital resources to fund our operating requirements. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and applicable rules of the Securities and Exchange Commission and common law.
These forward-looking statements may be identified in this report and the information incorporated by reference by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “plan,” “predict,” “project,” “should” and similar terms and expressions, including references to assumptions and strategies. These statements reflect our current beliefs and are based on information currently available to us. Accordingly, these statements are subject to certain risks, uncertainties, and contingencies, which could cause our actual results, performance, or achievements to differ materially from those expressed in, or implied by, such statements.
The following factors are among those that may cause actual results to differ materially from our forward-looking statements:
•Inability to properly manage, motivate and retain our independent consultants (which we previously referred to as “distributors” in our prior filings) or to attract new customers and independent consultants on an ongoing basis;
•Non-compliance by our independent consultants with applicable legal requirements or our policies and procedures;
•Changes to our independent consultant compensation plans;
•Dependence upon a few products for revenue;
•Dependence on third parties to manufacture our products;
•Sourcing and pricing of high quality materials for our products;
•Disruptions to the transportation channels used to distribute our products;
•Risk of being subject to a product recall;
•Product liability claims against us;
•Competition in the dietary supplement and personal care markets;
•Unfavorable publicity on our business or products;
•Actions by activist stockholders;
•Loss of or inability to attract key personnel;
•Risk of being held responsible for certain taxes or assessments and other obligations relating to the activity of our independent consultants;
•Risk related to Global Not For Resale program;
•Inability to comply with evolving laws, regulations, standards, policies, and contractual obligations related to data privacy and security, including cybersecurity;
•Inability to manage existing markets, open new international markets or expand our operations;
•Inability of new products and technological innovations to gain customer or independent consultant or market acceptance;
2
•Inability to execute our product launch process due to increased pressure on our supply chain, information systems and management;
•Inability to appropriately manage our inventory;
•Disruptions in our information technology ("IT") systems, including as a result of cybersecurity incidents;
•Inability to comply with financial covenants imposed by our credit facility and the impact of debt service obligations and restrictive debt covenants;
•International trade or foreign exchange restrictions, increased tariffs, foreign currency exchange fluctuations;
•Inability to raise additional capital or complete desired acquisitions;
•Strict government regulations on our business;
•Regulations governing the production or marketing of our products;
•Risk of investigatory and enforcement action;
•Risk of our direct selling program being found non-compliant with current or newly adopted laws or regulations in various markets;
•Laws and regulations prohibiting or severely restricting direct selling;
•International regulatory and business risks, including failure to comply with anti-corruption laws;
•Inability to protect our intellectual property rights;
•Third party intellectual property infringement claims;
•Volatility of the market price of our common stock;
•Risk of substantial sales of shares negatively impacting the market price of our common stock;
•Inability of share repurchase program enhancing long-term stockholder value;
•Risk of additional shares issued diluting voting power of current outstanding common stock or causing decline in stock price;
•Potential delisting of our common stock due to non-compliance with Nasdaq's continued listing requirements;
•Risks related to being a smaller reporting company;
•Limitations for disputes, mergers, tender offers, or proxy contests under Delaware law;
•Expense and time consuming legal proceedings;
•Ineffectiveness of internal controls over financial reporting;
•Challenges to tax positions or transfer pricing policies or change in laws;
•Economic, political, foreign exchange and other risks associated with international operations, including consumer discretionary spending habits;
•Unfavorable global economic conditions;
•Securities class action litigation; and
•Securities or industry analysts ceasing coverage or publishing inaccurate or unfavorable research.
When considering these forward-looking statements, you should keep in mind the cautionary statements in this report and the documents incorporated by reference. Except as required by law, we have no obligation and do not undertake to update or revise any such forward-looking statements to reflect events or circumstances after the date of this report.
3
LIFEVANTAGE CORPORATION
INDEX
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| Item 4. | ||||||||
| Item 1. | ||||||||
| Item 1A. | ||||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| Item 4. | ||||||||
| Item 5. | ||||||||
| Item 6. | ||||||||
4
PART I. Financial Information
Item 1. Financial Statements
LIFEVANTAGE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| December 31, 2024 | June 30, 2024 | ||||||||||
| (In thousands, except per share data) | |||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Accounts receivable | |||||||||||
| Income tax receivable | |||||||||||
| Inventory, net | |||||||||||
| Prepaid expenses and other | |||||||||||
| Total current assets | |||||||||||
| Property and equipment, net | |||||||||||
| Right-of-use assets | |||||||||||
| Intangible assets, net | |||||||||||
| Deferred income tax asset | |||||||||||
| Other long-term assets | |||||||||||
| TOTAL ASSETS | $ | $ | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | $ | |||||||||
| Commissions payable | |||||||||||
| Income tax payable | |||||||||||
| Lease liabilities | |||||||||||
| Other accrued expenses | |||||||||||
| Total current liabilities | |||||||||||
| Long-term lease liabilities | |||||||||||
| Other long-term liabilities | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies - Note 7 | |||||||||||
| Stockholders’ equity | |||||||||||
Preferred stock — par value $ | |||||||||||
Common stock — par value $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Accumulated deficit | ( | ( | |||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Total stockholders’ equity | |||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
5
LIFEVANTAGE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||
| Revenue, net | $ | $ | $ | $ | |||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Commissions and incentives | |||||||||||||||||||||||
| Selling, general and administrative | |||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||
| Operating income (loss) | ( | ( | |||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest income, net | |||||||||||||||||||||||
| Other income (expense), net | ( | ( | ( | ||||||||||||||||||||
| Total other income (expense) | ( | ( | |||||||||||||||||||||
| Income (loss) before income taxes | ( | ( | |||||||||||||||||||||
| Income tax benefit (expense) | ( | ( | |||||||||||||||||||||
| Net income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
| Net income (loss) per share: | |||||||||||||||||||||||
| Basic | $ | $ | ( | $ | $ | ||||||||||||||||||
| Diluted | $ | $ | ( | $ | $ | ||||||||||||||||||
| Weighted-average shares outstanding: | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
| Foreign currency translation adjustment | $ | ( | $ | $ | $ | ||||||||||||||||||
| Other comprehensive income (loss), net of tax | ( | ||||||||||||||||||||||
| Comprehensive income (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
6
LIFEVANTAGE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(Unaudited)
| Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||||||||||||||
| Balances, June 30, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Common stock issued under equity award plans | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Shares canceled or surrendered as payment of tax withholding and other | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
| Repurchase of company stock | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Common stock issued under employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
| Cash dividends | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||
| Balances, September 30, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Common stock issued under equity award plans | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Shares canceled or surrendered as payment of tax withholding and other | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
| Cash dividends | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||
| Balances, December 31, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
7
LIFEVANTAGE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (CONTINUED)
(Unaudited)
| Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||
| Balances, June 30, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Common stock issued under equity award plans | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Shares canceled or surrendered as payment of tax withholding and other | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
| Repurchase of company stock | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
| Common stock issued under employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||||||||
| Cash dividends | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Balances, September 30, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Exercise of options | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Common stock issued under equity award plans | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Shares canceled or surrendered as payment of tax withholding and other | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
| Repurchase of company stock | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
| Cash dividends | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
| Balances, December 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
8
LIFEVANTAGE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Six Months Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| (In thousands) | |||||||||||
| Cash Flows from Operating Activities: | |||||||||||
| Net income (loss) | $ | $ | ( | ||||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Stock-based compensation | |||||||||||
| Non-cash operating lease expense | |||||||||||
| Gain on disposal of assets | ( | ||||||||||
| Amortization of debt discount | |||||||||||
| Deferred income tax | ( | ( | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | ( | ||||||||||
| Income tax receivable | |||||||||||
| Inventory, net | ( | ||||||||||
| Prepaid expenses and other | ( | ||||||||||
| Other long-term assets | |||||||||||
| Accounts payable | ( | ||||||||||
| Income tax payable | |||||||||||
| Other accrued expenses | ( | ||||||||||
| Lease liabilities | ( | ( | |||||||||
| Other long-term liabilities | |||||||||||
| Net Cash Provided by Operating Activities | |||||||||||
| Cash Flows from Investing Activities: | |||||||||||
| Proceeds from sale of property and equipment | |||||||||||
| Purchase of property and equipment | ( | ( | |||||||||
| Net Cash Used in Investing Activities | ( | ( | |||||||||
| Cash Flows from Financing Activities: | |||||||||||
| Repurchase of company stock | ( | ( | |||||||||
| Payment of cash dividends | ( | ( | |||||||||
| Shares canceled or surrendered as payment of tax withholding and other | ( | ( | |||||||||
| Proceeds from common stock issued under employee stock purchase plan | |||||||||||
| Net Cash Used in Financing Activities | ( | ( | |||||||||
| Foreign Currency Effect on Cash | |||||||||||
| Increase (decrease) in Cash and Cash Equivalents: | ( | ||||||||||
| Cash and Cash Equivalents — beginning of period | |||||||||||
| Cash and Cash Equivalents — end of period | $ | $ | |||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||
| Cash paid for interest | $ | $ | |||||||||
| Cash paid for income taxes | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
9
LIFEVANTAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
These unaudited condensed consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes of LifeVantage Corporation (“LifeVantage" or the “Company”) as of and for the year ended June 30, 2024 included in the annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on August 28, 2024.
Note 1 — Organization and Basis of Presentation
LifeVantage is a company focused on nutrigenomics, the study of how nutrition and naturally occurring compounds affect human genes to support good health. The Company is dedicated to helping people achieve their health, wellness and financial goals. The Company provides quality, scientifically-validated products to customers and independent consultants as well as a financially rewarding commission-based direct sales opportunity to its independent consultants. LifeVantage sells its products in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore, and the Philippines.
The Company engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, weight management products, skin and hair care products, nootropics, and pre- and pro-biotics. The Company's line of scientifically validated dietary supplements includes its flagship Protandim® family of products, the MindBody GLP-1 System™, LifeVantage® Omega+, ProBio, IC Bright®, the Rise AM & Reset PM System®, D3+, Daily Wellness, PhysIQ Fat Burn and Prebiotic dietary supplements. TrueScience® is the Company's line of skin and hair care products and Liquid Collagen. The Company also markets and sells Petandim®, its companion pet supplement formulated to combat oxidative stress in dogs; and AXIO®, its nootropic energy drink mixes.
The condensed consolidated financial statements included herein have been prepared by the Company’s management, without audit, pursuant to the rules and regulations of the SEC. In the opinion of the Company’s management, these interim financial statements include all adjustments that are considered necessary for a fair presentation of its financial position as of December 31, 2024, and the results of operations for the three and six months ended December 31, 2024 and 2023, and the cash flows for the six months ended December 31, 2024 and 2023. Interim results are not necessarily indicative of results for a full year or for any future period.
The condensed consolidated financial statements and notes included herein are presented as required by Form 10-Q, and do not contain certain information included in the Company’s audited financial statements and notes for the fiscal year ended June 30, 2024, pursuant to the rules and regulations of the SEC. For further information, refer to the financial statements and notes thereto as of and for the year ended June 30, 2024, and included in the annual report on Form 10-K on file with the SEC.
Note 2 — Summary of Significant Accounting Policies
Consolidation
Use of Estimates
The Company prepares the condensed consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America ("GAAP"). In preparing these statements, the Company is required to use estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. On an ongoing basis, the Company reviews its estimates, including, but not limited to, those related to inventory valuation and obsolescence, sales returns, income taxes and tax valuation reserves, transfer pricing methodology and positions, impairment of assets, share-based compensation, and loss contingencies.
Foreign Currency Translation
A portion of the Company’s business operations occurs outside the United States. The local currency of each of the Company’s subsidiaries is generally its functional currency. All assets and liabilities are translated into U.S. dollars at exchange rates existing at the balance sheet dates, revenue and expenses are translated at weighted-average exchange rates and stockholders’ equity is recorded at historical exchange rates. The resulting foreign currency translation adjustments are recorded as a separate component of stockholders’ equity in the condensed consolidated balance sheets and as a component of
10
Cash and Cash Equivalents
The Company considers only its monetary liquid assets with original maturities of three months or less as cash and cash equivalents.
Concentration of Credit Risk
Accounts Receivable
Inventory
| December 31, 2024 | June 30, 2024 | ||||||||||||||||||||||
| Finished goods | $ | % | $ | % | |||||||||||||||||||
| Raw materials | % | % | |||||||||||||||||||||
| Total inventory | $ | % | $ | % | |||||||||||||||||||
Fair Value of Financial Instruments
The Company accounts for assets and liabilities using a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the fair-value hierarchy below. This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value.
•Level 1—Quoted prices for identical instruments in active markets;
•Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
•Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
11
Revenue Recognition
Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales, value-added, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue.
The Company generates the majority of its revenue through product sales to customers. These products include the Protandim® line of dietary supplements, the MindBody GLP-1 System™, LifeVantage® Omega+, ProBio, IC Bright®, the Rise AM & Reset PM System®, D3+, Daily Wellness, PhysIQ Fat Burn and Prebiotic dietary supplements, TrueScience® skin and hair care products and Liquid Collagen, Petandim®, and AXIO® nootropic energy drink mixes. The Company ships most of its product directly to the consumer and receives substantially all payment for product sales in the form of credit card receipts. Revenue from direct product sales to customers is recognized upon shipment, which is when passage of title and risk of loss occurs. For items sold in packs and bundles, the Company determines the standalone selling price at contract inception for each distinct good and then allocates the transaction price on a relative standalone selling price basis. Any discounts are accounted for as a direct reduction to the transaction price. Shipping and handling revenue is recognized upon shipment when the performance obligation is completed.
Contract liabilities, recorded as deferred revenue, include loyalty program credit deferrals with certain customers which are accounted for as a reduction in the transaction price and are generally recognized as credits which are redeemed for additional products at a later date. The Company also records deferred revenue when cash payments are received or due in advance of performance, including amounts which are refundable. In addition, the Company pre-sells tickets to its events. When cash payments are received in advance of events, the cash received is recorded to deferred revenue until the event is held, at which time the Company has performed its obligations under the contract and the revenue is recognized.
Deferred revenue is included in accrued expenses in the consolidated balance sheets. The balance of deferred revenue related to contract liabilities was $1.4 million and $0.9 million as of December 31, 2024 and June 30, 2024, respectively. The contract liabilities impact to revenue for the three months ended December 31, 2024 and 2023 was a decrease of $0.3 million and an increase of $0.1 million, respectively. The contract liabilities impact to revenue for the six months ended December 31, 2024 and 2023 was a decrease of $0.5 million and $40,000 , respectively.
Estimated returns are recorded when a product is shipped. Subject to some exceptions based on local regulations, the Company’s return policy is to provide a full refund for a product returned within 30 days. After 30 days of purchase, only unopened product that is in a resalable and restockable condition may be returned within twelve months of purchase and shall receive a 100 % refund, less a 10 % handling and restocking fee and any shipping and handling costs. The Company establishes a refund liability reserve, and an asset reserve for its right to recover products, based on historical experience. The returns asset reserve and returns liability reserve are evaluated on a quarterly basis. As of December 31, 2024 and June 30, 2024, the returns liability reserve, net was $0.2 million and $0.1 million, respectively.
Shipping and Handling
Shipping and handling costs associated with inbound freight and freight out to customers and independent consultants are included in cost of sales. Shipping and handling fees charged to customers and independent consultants are included in revenue.
Research and Development Costs
Leases
The Company accounts for leases in accordance with Accounting Standards Codification ("ASC") 842. The Company reviews all contracts and determines if the arrangement is or contains a lease, at inception. Operating leases are included in right-of-use (“ROU”) assets, current lease liabilities and long-term lease liabilities on the condensed consolidated balance sheets. The Company does not have any finance leases.
Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any upfront lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s lease terms may include options to extend
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Stock-Based Compensation
The Company recognizes stock-based compensation by measuring the cost of services to be rendered based on the grant date fair value of the equity award. The Company recognizes stock-based compensation, net of any estimated forfeitures, over the period an employee is required to provide service in exchange for the award, generally referred to as the requisite service period. The Company estimates forfeitures based on historical information and other management assumptions.
The Black-Scholes option pricing model is used to estimate the fair value of stock options and options under the Company's 2019 Employee Stock Purchase Plan (as amended, the "2019 ESPP"). The determination of the fair value of options is affected by the Company's stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The Company uses historical data for estimating the expected volatility and expected life of stock options required in the Black-Scholes model. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of the stock options.
The fair value of restricted stock grants, including performance restricted stock units that include non-market based performance conditions, is based on the closing market price of the Company's stock on the date of grant less the Company's expected dividend yield. The Company recognizes compensation costs for awards with performance conditions when it concludes it is probable that the performance conditions will be achieved. The Company reassesses the probability of vesting at each balance sheet date and adjusts compensation costs accordingly.
Income Taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled, updated as needed for changes in corporate tax rates. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the effective date of the change. The Company recognizes tax liabilities or benefits from an uncertain position only if it is more likely than not that the position will be sustained upon examination by taxing authorities based on the technical merits of the issue. The amount recognized would be the largest liability or benefit that the Company believes has greater than a 50% likelihood of being realized upon settlement.
For the three months ended December 31, 2024 and 2023, the Company recognized income tax expense of $0.5 million and a benefit of $0.5 million, respectively. For the six months ended December 31, 2024 and 2023, the Company recognized income tax expense of $1.3 million and a benefit of $0.3 million, respectively. Tax expenses are reflective of the Company’s current estimated federal, state and foreign effective tax rate. Realization of deferred tax assets is dependent upon future earnings in specific tax jurisdictions, the timing and amount of which are uncertain.
Income Per Share
Basic income per common share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period, less unvested restricted stock awards. Diluted income per common share is computed by dividing net income by the weighted-average common shares and potentially dilutive common share equivalents using the treasury stock method.
For the three months ended December 31, 2024 and 2023, the effects of approximately 0.1 million and 26,000 common shares, respectively, issuable upon exercise of options and non-vested shares of restricted stock are not included in computations as their effect was anti-dilutive. For the six months ended December 31, 2024 and 2023, the effects of approximately 0.1 million and 0.1 million common shares, respectively, issuable upon exercise of options and non-vested shares of restricted stock are not included in computations as their effect was anti-dilutive.
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The following is a reconciliation of net income per share and the weighted-average common shares outstanding for purposes of computing basic and diluted net income per share (in thousands, except per share amounts):
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
| Net income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
| Denominator: | |||||||||||||||||||||||
| Basic weighted-average common shares outstanding | |||||||||||||||||||||||
| Effect of dilutive securities: | |||||||||||||||||||||||
| Stock awards and options | |||||||||||||||||||||||
| Diluted weighted-average common shares outstanding | |||||||||||||||||||||||
| Net income (loss) per share, basic | $ | $ | ( | $ | $ | ||||||||||||||||||
| Net income (loss) per share, diluted | $ | $ | ( | $ | $ | ||||||||||||||||||
Segment Information and Disaggregated Revenue
The Company operates in a single operating segment by selling products directly to customers and through an international network of independent consultants that operates in an integrated manner from market to market. Commissions and incentives expenses are the Company’s largest expense comprised of the commissions paid to its independent consultants. The Company manages its business primarily by managing its international network of independent consultants. The Company disaggregates revenue in two geographic regions: the Americas region and the Asia/Pacific & Europe region.
The following table presents the Company's revenue disaggregated by these two geographic regions (in thousands):
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Americas | $ | $ | $ | $ | |||||||||||||||||||
| Asia/Pacific & Europe | |||||||||||||||||||||||
| Total revenue | $ | $ | $ | $ | |||||||||||||||||||
Additional information as to the Company’s revenue from operations in the most significant geographical areas is set forth below (in thousands):
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| United States | $ | $ | $ | $ | |||||||||||||||||||
| Japan | $ | $ | $ | $ | |||||||||||||||||||
The following table presents the Company's long-lived assets for its most significant geographic markets (in thousands):
| December 31, 2024 | June 30, 2024 | ||||||||||
| United States | $ | $ | |||||||||
| Japan | $ | $ | |||||||||
New Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"), expanding segment disclosure requirements. The amendments require enhanced disclosure for certain segment items and required disclosure on how management uses reported measures to assess segment performance. The amendments do not change how segments are determined, aggregated, or how thresholds are applied to determine reportable segments. ASU 2023-07 is effective for the Company’s annual periods beginning July 1, 2024, and for interim periods beginning July 1, 2025, with early adoption permitted. The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). The guidance requires disclosure of disaggregated income taxes paid, prescribes standardized categories for
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the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. ASU 2023-09 is effective for the Company’s annual periods beginning July 1, 2025, with early adoption permitted. The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"). The guidance requires disclosure, in the notes to financial statements, of specific information about certain costs and expenses at each interim and annual reporting period. ASU 2024-03 is effective for the Company’s annual periods beginning July 1, 2027, with early adoption permitted. The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures.
Other recently issued accounting pronouncements did not or are not believed by management to have a material impact on the Company's present or future financial statements.
Note 3 — Leases
The Company has operating leases for current corporate offices and certain equipment. These leases have remaining terms of approximately to seven years . As of December 31, 2024, the weighted average remaining lease term and weighted average discount rate for operating leases was 6.43 years and 3.45 %, respectively. As of June 30, 2024, the weighted average remaining lease term and weighted average discount rate for operating leases was 6.90 years and 3.46 %, respectively.
For the three months ended December 31, 2024 and 2023, operating lease expense was $0.5 million and $0.5 million, respectively. For the six months ended December 31, 2024 and 2023, operating lease expense was $1.0 million and $1.1 million, respectively.
The components of lease expense for the three and six months ended December 31, 2024 and 2023, were as follows:
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Operating lease expense | |||||||||||||||||||||||
| Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
| Variable lease cost | |||||||||||||||||||||||
| Short-term lease costs | |||||||||||||||||||||||
| Total lease expense | $ | $ | $ | $ | |||||||||||||||||||
Supplemental cash flow information related to operating leases was as follows (in thousands):
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Operating cash outflows from operating leases | $ | $ | $ | $ | |||||||||||||||||||
| Right-of-use assets obtained in exchange for lease obligations | $ | $ | $ | $ | |||||||||||||||||||
Maturity of lease liabilities at December 31, 2024 are as follows (in thousands):
| Year ended June 30, | Amount | |||||||
| 2025 (remaining six months ending June 30, 2025) | $ | |||||||
| 2026 | ||||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| Thereafter | ||||||||
| Total | ||||||||
| Less: imputed interest | ( | |||||||
| Present value of lease liabilities | $ | |||||||
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Note 4 — Long-Term Debt
On April 12, 2024, the Company entered into a Loan Agreement (the “Loan Agreement”) with Bank of America, N.A., as Lender (the “Lender”). In connection with the Loan Agreement and on the same date, the Company, Lifeline Nutraceuticals Corporation, as Guarantor (the “Guarantor”), and the Lender also entered into a Continuing and Unconditional Guaranty (the “Continuing and Unconditional Guaranty”) and a Security and Pledge Agreement (the “Security and Pledge Agreement”). The Loan Agreement provides for a revolving line of credit in an aggregate principal amount not to exceed $5.0 million (the “Line of Credit” and collectively with the Loan Agreement, Continuing and Unconditional Guaranty and the Security and Pledge Agreement the “2024 Credit Facility”).
In the event the Company borrows under the Line of Credit, interest will be payable commencing on the last day of each month following such borrowing until payment in full of all principal outstanding under the Line of Credit, with all unpaid principal and interest due on April 12, 2027 (the “Expiration Date”). The Line of Credit will bear interest at a rate per year equal to the sum of (i) the greater of the Term Secured Overnight Financing Rate Daily Floating Rate (as defined in the Loan Agreement) or 0.00 %, plus (ii) 2.00 %. Amounts under the Line of Credit may be repaid and re-borrowed from time to time until the Expiration Date. As of December 31, 2024, the effective interest rate is 6.49 %.
The Company’s obligations under the Loan Agreement are secured by a security interest in substantially all of the assets of the Company and the Guarantor, and by a pledge of the membership interests of the Company's subsidiaries, as further provided for in the Security and Pledge Agreement. Pursuant to the Continuing and Unconditional Guaranty, the Guarantor guarantees and promises to pay promptly to the Lender all indebtedness of the Company when due.
The Loan Agreement contains customary covenants, both affirmative and negative, that, among other things, restrict the Company’s ability to deal with the Company's assets outside of the ordinary course, incur additional indebtedness, grant liens on the Company's assets, make certain investments, purchase or otherwise acquire all or substantially all the assets or equity interests of other companies, and enter into consolidations, mergers or other combinations. The Loan Agreement requires that the Company maintain specified financial ratios and satisfy certain financial condition tests.
The Loan Agreement contains certain customary events of default, including, among other things, failure of the Company to make required payments under the Loan Agreement, certain breaches of representations made by the Company or the Guarantor, insolvency or bankruptcy of the Company or the Guarantor, failure to have an enforceable first lien or security interest in any property given as security for the Loan Agreement, or failure of the Company to comply with covenants set forth in the Loan Agreement. If an event of default occurs under the Loan Agreement, the obligation of the Lender to make any additional credit available to the Company may be terminated and the amounts outstanding may become immediately due and payable in the discretion of the Lender, provided that in the event of insolvency or bankruptcy of the Company or the Guarantor, all debts outstanding under the Loan Agreement will automatically become due and payable. Upon the occurrence of any default or after maturity, all amounts outstanding under the Loan Agreement will, at the option of the Lender, bear interest at a rate which is 2.00 % higher than the rate of interest otherwise provided under the Loan Agreement.
Note 5 — Stockholders’ Equity
During the three months ended December 31, 2024 and 2023, the Company issued 0.1 million and 0.5 million shares of common stock, respectively, under Company stock plans. During the three months ended December 31, 2024 and 2023, the Company issued zero 0.1 million and 34,000 shares of restricted stock, respectively, were canceled or surrendered as payment of tax withholding upon vesting of equity awards.
During the six months ended December 31, 2024 and 2023, the Company issued 0.3 million and 0.8 million shares of common stock, respectively, under Company stock plans. During the six months ended December 31, 2024 and 2023, the Company issued zero 0.1 million and 0.1 million shares of restricted stock, respectively, were canceled or surrendered as payment of tax withholding upon vesting of equity awards.
On February 17, 2022, the Company's board of directors (the "Board of Directors") approved an amendment to its then-existing share repurchase program to increase the authorized share repurchase amount from $35.0 million to $60.0 million. On June 12, 2023, the Board of Directors approved an amendment to extend the duration of the repurchase program period to December 31, 2026. During the three and six months ended December 31, 2024, the Company purchased zero shares and 0.1 million shares of common stock at an aggregate price of zero and $1.1 million, respectively, under this repurchase program. During the three and six months ended December 31, 2023, the Company purchased 0.3 million shares and 0.4 million shares of
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common stock at an aggregate price of $1.9 million and $2.7 million, respectively, under this repurchase program. At December 31, 2024, there was $19.3 million remaining under this repurchase program.
On August 30, 2023, the Board of Directors approved a stockholder rights agreement (the “Rights Plan”) and declared a dividend of one right for each outstanding share of common stock to stockholders of record on September 11, 2023. Each right entitled holders to purchase one newly issued share of preferred stock at an exercise price of $20 per right, subject to adjustment. Initially, the rights were not exercisable and traded with shares of the Company’s common stock.
In general, the rights would have become exercisable following a public announcement that a person acquires 12 % (or, in the case of passive investors, 20 %) or more of the outstanding shares of the Company’s common stock. If a person became an acquiring person, each holder of rights (except the acquiring person) would have had the right to purchase, for the purchase price, a number of shares of the Company’s common stock at a 50 % discount to the then-current trading price. Rather than allowing the rights to be exercised in those circumstances, the Board of Directors could exchange each right, other than the rights owned by the acquiring person, for a share of the Company’s common stock. The agreement provided for exceptions and additional terms for other certain situations and circumstances.
The Rights Plan was intended to protect the interests of LifeVantage and its stockholders by reducing the likelihood that any entity, person or group gains control of the Company through open-market accumulation or other means without payment of an adequate control premium and expired on August 28, 2024. There was no impact to the Company’s Consolidated Financial Statements.
The Company’s Certificate of Incorporation authorizes the issuance of preferred stock. However, as of December 31, 2024, none have been issued nor have any rights or preferences been assigned to the preferred stock by the Board of Directors.
Dividends
In August 2024, the Board of Directors declared a quarterly cash dividend of $0.04 0.04 0.5 million and $1.0 million, respectively. Cash dividends for the three and six months ended December 31, 2023 totaled $0.5 million and $6.0 million, or $0.035 and $0.47 per share, respectively.
The declaration of dividends is subject to the discretion of the Board of Directors and will depend upon various factors, including the Company's earnings, financial condition, restrictions imposed by any indebtedness that may be outstanding, cash requirements, future prospects and other factors deemed relevant by the Board of Directors.
Note 6 — Stock-Based Compensation
Long-Term Incentive Plans
Equity-Settled Plans
The Company's Board of Directors adopted, and the Company's stockholders approved, the 2017 Long-Term Incentive Plan (as amended, the “2017 Plan”), effective February 16, 2017, to provide incentives to eligible employees, directors and consultants. The initial shares reserved under the 2017 Plan was (i) 650,000 shares plus (ii) 475,000 shares previously reserved for issuance under the Company’s 2010 Long Term Incentive Plan (the “2010 Plan”), including upon cancellation, termination or forfeiture of awards previously granted under the 2010 Plan, plus (iii) shares subject to forfeited or terminated awards, or shares that are withheld or surrendered from an award to pay an award’s exercise price or tax withholding obligations, in each case where such awards have been granted under the 2017 Plan. In February 2018, November 2018, November 2020, November 2022 and November 2023, the Company’s stockholders approved amendments to the 2017 Plan to increase the number of shares of the Company’s common stock that are available for issuance under the 2017 Plan by 425,000 , 715,000 , 650,000 , 1,052,000 , and 1,138,000 shares, respectively. Further, in November 2024, the Company’s stockholders approved an amendment to remove individual grant limitations under the 2017 Plan and certain performance-based provisions, both of which are no longer applicable following the repeal of the performance-based exemption in Section 162(m) of the Internal Revenue Code, as amended. As of December 31, 2024, an aggregate of 5.1 million shares of the Company's common stock were authorized to be issued under the 2017 Plan in connection with the grant of awards which is calculated as the sum of (i) 4,630,000 shares and (ii) up to 475,000 shares previously reserved for issuance under the 2010 Plan, including shares returned upon cancellation, termination or forfeiture of awards that were previously granted under that plan.
As of December 31, 2024, there were stock option awards outstanding under the 2017 Plan, net of awards expired, for an aggregate of 0.1 million shares of the Company's common stock. Outstanding stock options awarded under the 2017 Plan have exercise prices of $4.44 per share, and vest over a three-year vesting period. Awards expire in accordance with the terms of
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each award and, upon expiration of the award, the shares subject to the award are added back to the 2017 Plan. The contractual term of stock options granted is generally ten years .
Employee Stock Purchase Plan
General. The Company's 2019 ESPP was adopted by the Company's Board of Directors in September 2018 and the Company's stockholders approved it in November 2018. In August 2024, the Board of Directors approved an amendment to the 2019 ESPP to increase the share reserve thereunder by 0.4 million shares, which amendment and increase was approved by the Company’s stockholders in November 2024. The 2019 ESPP is intended to qualify under Section 423 of the Internal Revenue Code.
Share Reserve. The Company has reserved a total of 0.8 million shares of its common stock for issuance under the 2019 ESPP. As of December 31, 2024, 0.4 million shares were available for issuance. The number of shares reserved under the 2019 ESPP will automatically be adjusted in the event of a stock split, stock dividend or a reverse stock split (including an adjustment to the per-purchase period share limit).
Purchase Price. Employees may purchase each share of common stock under the 2019 ESPP at a price equal to 85 % of the lower of the fair market values of the stock as of the beginning or the end of the six-month offering periods. An employee's contributions to the 2019 ESPP are limited to 15 % of their regular hourly or salary compensation, and up to a maximum of 3,000 shares may be purchased during any offering period. A participant shall not be granted an option under the 2019 ESPP if such option would permit the participant's rights to purchase stock to accrue at a rate exceeding $25,000 grant date fair market value of stock for each calendar year in which such option is outstanding at any time.
Offering Periods. Unless otherwise determined by the compensation committee, the 2019 ESPP will be operated through a series of successive six-month offering periods, which will begin each year on March 1 and September 1.
During the six months ended December 31, 2024 and 2023, approximately 22,000 and 39,000 shares of common stock were issued under the 2019 ESPP, respectively.
Stock-Based Compensation
Note 7 — Commitments and Contingencies
Contingencies
The Company accounts for contingent liabilities in accordance with ASC 450, Contingencies. This guidance requires management to assess potential contingent liabilities that may exist as of the date of the financial statements to determine the probability and amount of loss that may have occurred, which inherently involves an exercise of judgment. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. For loss contingencies considered remote, no accrual or disclosures are generally made. Management has assessed potential contingent liabilities as of December 31, 2024, and based on the assessment, there are no probable loss contingencies requiring accrual or disclosures within its financial statements.
Legal Accruals
In addition to commitments and obligations in the ordinary course of business, from time to time, the Company is subject to various claims, pending and potential legal actions, investigations relating to governmental laws and regulations and other matters arising out of the normal conduct of its business. Management assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in the consolidated financial statements. An estimated loss contingency is accrued in the consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because evaluating legal claims and litigation results are inherently unpredictable and unfavorable results could occur, assessing contingencies is highly subjective and requires judgments about future events. When evaluating contingencies, management may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. In addition, damage amounts claimed or asserted against the
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Company may be unsupported, exaggerated or unrelated to possible outcomes, and as such are not meaningful indicators of a potential liability. Management regularly reviews contingencies to determine the adequacy of financial statement accruals and related disclosures. The amount of ultimate loss may differ from these estimates. It is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable publicity or resolution of one or more of these contingencies. Whether any losses finally determined in any claim, action, investigation or proceeding or publicity related to such could reasonably have a material effect on the Company's business, financial condition, results of operations or cash flows will depend on a number of variables, including: the timing and amount of such losses; the structure and type of any remedies; the significance of the impact of any such losses, damages or remedies may have on the consolidated financial statements; and the unique facts and circumstances of the particular matter that may give rise to additional factors.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview
LifeVantage Corporation (the “Company,” “we,” “us,” or “our”) is a company focused on nutrigenomics, the study of how nutrition and naturally occurring compounds affect human genes to support good health. We are dedicated to helping people achieve their health, wellness and financial goals. We provide quality, scientifically-validated products to customers and independent consultants as well as a financially rewarding commission-based direct sales opportunity to our independent consultants. We engage in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, weight management products, skin and hair care products, nootropics, and pre- and pro-biotics. We currently sell our products to customers and independent consultants in two geographic regions that we have classified as the Americas region and the Asia/Pacific & Europe region.
The success and growth of our business is primarily based on the effectiveness of our independent consultants to attract and retain customers in order to sell our products and our ability to attract and retain independent consultants. When we are successful in attracting and retaining independent consultants and customers, it is largely because of:
•Our products, including our flagship Protandim® family of scientifically validated dietary supplements, the MindBody GLP-1 System™, LifeVantage® Omega+, ProBio, IC Bright®, the Rise AM & Reset PM System®, Daily Wellness, D3+, PhysIQ Fat Burn and Prebiotic dietary supplements, our line of TrueScience® skin and hair care products and Liquid Collagen, Petandim®, our companion pet supplement formulated to combat oxidative stress in dogs, and AXIO®, our nootropic energy drink mixes;
•Our sales compensation plan and other sales initiatives and incentives; and
•Our delivery of superior customer service.
As a result, it is vital to our success that we leverage our product development resources to develop and introduce compelling and innovative products and provide opportunities for our independent consultants to sell these products in a variety of markets. We sell our products in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore, and the Philippines. In addition, we sell our products in a number of countries for personal consumption only. Entering a new market requires a considerable amount of time, resources and continued support. If we are unable to properly support an existing or new market, our revenue growth may be negatively impacted.
Our Products
Our products are the Protandim® line of scientifically validated dietary supplements, the new MindBody GLP-1 System™, LifeVantage® Omega+, ProBio, IC Bright®, the Rise AM & Reset PM System®, D3+, Daily Wellness, and PhysIQ Fat Burn and Prebiotic dietary supplements, TrueScience®, our line of skin and hair care products and Liquid Collagen, Petandim®, our companion pet supplement formulated to combat oxidative stress in dogs, and AXIO®, our nootropic energy drink mixes. The Protandim® product line includes Protandim® NRF1 Synergizer®, Protandim® Nrf2 Synergizer®, and Protandim® NAD Synergizer®. The Protandim® NRF1 Synergizer® is formulated to increase cellular energy and performance by boosting mitochondria production to improve cellular repair and slow cellular aging. The Protandim® Nrf2 Synergizer® contains a proprietary blend of ingredients and has been shown to combat oxidative stress and enhance energy production by increasing the body’s natural antioxidant protection at the genetic level, inducing the production of naturally occurring protective antioxidant enzymes, including superoxide dismutase, catalase, and glutathione synthase. The Protandim® NAD Synergizer®
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was specifically formulated to target cell signaling pathways involved in the synthesis and recycling of a specific molecule called NAD (nicotinamide adenine dinucleotide), and it has been shown to double sirtuin activity, supporting increased health, focus, energy, mental clarity, and mood. Use of the three Protandim® products together, marketed as the Protandim® Tri-Synergizer®, has been shown to produce synergistic benefits greater than using the single products on their own. Our new MindBody GLP-1 System™ is a dietary supplement that combines two products MB Core™ and MB Enhance™ designed to support weight loss and wellness by activating GLP-1 naturally and balancing signals along the gut-brain axis. LifeVantage® Omega+ is a dietary supplement that combines DHA and EPA Omega-3 fatty acids, omega-7 fatty acids, and vitamin D3 to support cognitive health, cardiovascular health, skin health, and the immune system. LifeVantage® ProBio is a dietary supplement designed to support optimal digestion and immune system function. LifeVantage® Daily Wellness is a dietary supplement designed to support immune health. IC Bright® is a dietary supplement to help support eye and brain health, reduce eye fatigue and strain, support cognitive functions, and may help support normal sleep patterns. PhysIQ Fat Burn is a dietary supplement designed to support weight management, and PhysIQ Prebiotic is a dietary supplement designed to support a healthy digestive tract. Our Nrf2 enhanced TrueScience® line of anti-aging skin and hair care products includes TrueScience® TrueClean Refining Cleanser, TrueScience® TrueRenew Daily Firming Complex, TrueScience® TrueLift Illuminating Eye Cream, TrueScience® TrueHydrate Brightening Moisturizer, TrueScience® TrueTone Perfecting Lotion, TrueScience® TrueProtect Daily Mineral Sunstick SPF 30, TrueScience® Perfecting Lotion, TrueScience® Hand Cream, TrueScience® Invigorating Shampoo, TrueScience® Nourishing Conditioner, TrueScience® Scalp Serum, and TrueScience® Liquid Collagen. TrueScience® Liquid Collagen activates, replenishes, and maintains collagen to support firmness and elasticity from within. Petandim® is a supplement specially formulated to combat oxidative stress in dogs through Nrf2 activation. AXIO® is our line of our nootropic energy drink mixes formulated to promote alertness and support mental performance. We believe our significant number of customers who regularly and repeatedly purchase our products is a strong indicator of the health benefits of our products.
We sell our products both individually and in stacks. A stack consists of multiple products bundled together that are designed to achieve a specific result. In fiscal year 2024, our stack strategy evolved with a focus on the brand message of Activation with three stacks that tell the unique LifeVantage Activation story from an inside-out approach. This builds upon the synergistic benefits that were demonstrated in fiscal year 2023 with our Healthy Glow Essentials stack. The Inside-Out Activation Duo features Nrf2 Synergizer® and TrueScience® TrueRenew Daily Firming Complex. This duo activates antioxidants for good health on the inside and a cleaner, kinder retinol alternative for skin that looks and feels healthy and youthful on the outside. The LifeVantage Activation Essentials Stack contains Nrf2 Synergizer® TrueScience® Liquid Collagen, and TrueScience® TrueRenew Daily Firming Complex. Finally, our Healthy Glow + Activated Skin Care Collection contains Nrf2 Synergizer®, TrueScience® Liquid Collagen, and the full Activated Skin Care Collection. To build upon the energy created by our U.S. launch of MindBody GLP-1 System™ in October 2024, we introduced the Healthy Weight Stack containing the MindBody GLP-1 System™ and Protandim® Nrf2 Synergizer®, the Executive Stack containing the MindBody GLP-1 System™, TrueScience® Liquid Collagen, Protandim® Nrf2 Synergizer®, AXIO®, PhyisIQ Fat Burn and TrueScience® True Renew, the Premium Stack containing the MindBody GLP-1 System™, Protandim® Nrf2 Synergizer®, and TrueScience® Liquid Collagen and the Healthy Weight Pro Stack containing the MindBody GLP-1 System™, Protandim® Nrf2 Synergizer®, AXIO® and PhyisIQ Fat Burn. We continue to offer other popular packs such as the Vitality Stack (Protandim® NRF1 Synergizer®, Protandim® Nrf2 Synergizer®, LifeVantage® Omega+ and LifeVantage® ProBio), the Ultimate Stack (Vitality Stack + Protandim® NAD Synergizer® and PhysIQ Prebiotic), and the Protandim® Tri-Synergizer™ (Protandim® NRF1 Synergizer®, Protandim® Nrf2 Synergizer®, and Protandim® NAD Synergizer®).
We currently have additional products in development. Any delays or difficulties in introducing compelling products or attractive initiatives or tools into our markets may have a negative impact on our revenue and our ability to attract new independent consultants and customers.
Compensation Plan for our Independent Consultants
On March 1, 2023, we launched a new compensation plan for our independent consultants in the United States, Japan, Australia, and New Zealand markets. We refer to this compensation plan as our Evolve Compensation Plan. On February 1, 2024, we launched the Evolve Compensation Plan in the Canada, Mexico, and Europe markets. On November 1, 2024 we launched an optimized version of the Evolve Compensation Plan in the United States, Japan, Australia, New Zealand, Canada, Mexico and Europe markets.
Accounts
Because we primarily utilize a direct selling model for the distribution of a majority of our products, the success and growth of our business depends in large part on the effectiveness of our independent consultants to attract and retain customers to purchase our products and our ability to attract new and retain existing independent consultants. Changes in our product sales typically are the result of variations in product sales volume relating to fluctuations in the number of active independent
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consultants and customers purchasing our products. The number of active independent consultants and customers is, therefore, used by management as a key non-financial measure.
The following tables summarize the changes in our active accounts base by geographic region. These numbers have been rounded to the nearest thousand as of the dates indicated. For purposes of this report, we define “Active Accounts” as only those independent consultants and customers who have purchased from us at any time during the most recent three-month period, either for personal use or for resale.
| As of December 31, | |||||||||||||||||||||||||||||||||||
| 2024 | 2023 | Change from Prior Year | Percent Change | ||||||||||||||||||||||||||||||||
| Active Independent Consultants | |||||||||||||||||||||||||||||||||||
| Americas | 35,000 | 67.3 | % | 32,000 | 62.7 | % | 3,000 | 9.4 | % | ||||||||||||||||||||||||||
| Asia/Pacific & Europe | 17,000 | 32.7 | % | 19,000 | 37.3 | % | (2,000) | (10.5) | % | ||||||||||||||||||||||||||
| Total Active Independent Consultants | 52,000 | 100.0 | % | 51,000 | 100.0 | % | 1,000 | 2.0 | % | ||||||||||||||||||||||||||
| Active Customers | |||||||||||||||||||||||||||||||||||
| Americas | 80,000 | 85.1 | % | 63,000 | 78.8 | % | 17,000 | 27.0 | % | ||||||||||||||||||||||||||
| Asia/Pacific & Europe | 14,000 | 14.9 | % | 17,000 | 21.2 | % | (3,000) | (17.6) | % | ||||||||||||||||||||||||||
| Total Active Customers | 94,000 | 100.0 | % | 80,000 | 100.0 | % | 14,000 | 17.5 | % | ||||||||||||||||||||||||||
| Active Accounts | |||||||||||||||||||||||||||||||||||
| Americas | 115,000 | 78.8 | % | 95,000 | 72.5 | % | 20,000 | 21.1 | % | ||||||||||||||||||||||||||
| Asia/Pacific & Europe | 31,000 | 21.2 | % | 36,000 | 27.5 | % | (5,000) | (13.9) | % | ||||||||||||||||||||||||||
| Total Active Accounts | 146,000 | 100.0 | % | 131,000 | 100.0 | % | 15,000 | 11.5 | % | ||||||||||||||||||||||||||
Results of Operations
Three and Six Months Ended December 31, 2024 and 2023
Revenue. We generated net revenue of $67.8 million and $51.6 million during the three months ended December 31, 2024 and 2023, respectively. We generated net revenue of $115.0 million and $103.0 million during the six months ended December 31, 2024 and 2023, respectively. The increase in revenue for the three and six months ended December 31, 2024 was primarily driven by sales of our MindBody GLP-1 System™, which launched in the U.S. market in October 2024. Foreign currency fluctuations negatively impacted our revenue by $0.3 million, or 0.6%, and $0.5 million or 0.5%, during the three and six months ended December 31, 2024.
Americas. The following table sets forth revenue for the three and six months ended December 31, 2024 and 2023 for the Americas region (in thousands):
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| United States | $ | 55,381 | $ | 37,219 | 48.8 | % | $ | 90,649 | $ | 74,115 | 22.3 | % | |||||||||||||||||||||||
| Other | 1,773 | 1,846 | (4.0) | % | 3,397 | 3,465 | (2.0) | % | |||||||||||||||||||||||||||
| Americas Total | $ | 57,154 | $ | 39,065 | 46.3 | % | $ | 94,046 | $ | 77,580 | 21.2 | % | |||||||||||||||||||||||
Revenue in the Americas region for the three and six months ended December 31, 2024 increased $18.1 million, or 46.3%, and $16.5 million, or 21.2%, respectively from the prior year periods. In October 2024, we launched our MindBody GLP-1 System™ in the United States. The increase in revenue for the three and six months ended December 31, 2024 was primarily driven by sales of our MindBody GLP-1 System™. The increase in revenue from our MindBody GLP-1 System™ was offset slightly by decreases in other product lines. With this new launch, total Active Accounts increased 21.1% in the region compared to the prior year period.
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Asia/Pacific & Europe. The following table sets forth revenue for the three and six months ended December 31, 2024 and 2023 for the Asia/Pacific & Europe region and its principal markets (in thousands):
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| Japan | $ | 6,278 | $ | 7,314 | (14.2) | % | $ | 12,261 | $ | 14,828 | (17.3) | % | |||||||||||||||||||||||
| Australia & New Zealand | 1,660 | 2,071 | (19.8) | % | 3,321 | 4,409 | (24.7) | % | |||||||||||||||||||||||||||
| Greater China | 716 | 771 | (7.1) | % | 1,394 | 1,198 | 16.4 | % | |||||||||||||||||||||||||||
| Other | 1,954 | 2,403 | (18.7) | % | 3,954 | 4,973 | (20.5) | % | |||||||||||||||||||||||||||
| Asia/Pacific & Europe Total | $ | 10,608 | $ | 12,559 | (15.5) | % | $ | 20,930 | $ | 25,408 | (17.6) | % | |||||||||||||||||||||||
Revenue in the Asia/Pacific & Europe region decreased $2.0 million, or 15.5%, and $4.5 million, or 17.6%, respectively, for the three and six months ended December 31, 2024, as compared to the prior year periods. Total Active Accounts in the region decreased 13.9% compared to the prior year period. Decreases in total Active Accounts, along with negative impacts from foreign currency exchange rate fluctuations, have contributed to the overall decrease in revenue within the Asia/Pacific & Europe region.
Overall, revenue in the Asia/Pacific & Europe region was negatively impacted by foreign currency exchange rate fluctuations in the amount of approximately $0.2 million, or 1.8%, and $0.4 million, or 1.4%, during the three and six months ended December 31, 2024, respectively, as compared to the prior year periods, mainly due to currency fluctuations in Japan. Revenue in Japan was negatively impacted by foreign exchange rate fluctuations in the amount of approximately $0.2 million, or 2.9%, and $0.4 million, or 2.6%, during the three and six months ended December 31, 2024, respectively, as compared to the prior year periods. On a constant currency basis, revenue in Japan decreased 11.3% and 14.8% for the three and six months ended December 31, 2024, respectively, as compared to the prior year periods. The decrease in revenue on a constant currency basis in Japan during three and six months ended December 31, 2024 was due to decreases in in our Active Accounts in that region of 10.6% in each period, respectively. The decrease was coupled with a decrease in the average revenue per account, primarily from a decrease in TrueScience® Liquid Collagen related revenue. Revenue related to TrueScience® Liquid Collagen was approximately $0.7 million and $1.4 million for the three and six months ended December 31, 2024, respectively, compared to $1.8 million and $2.9 million in the prior year periods, respectively.
Globally, our sales and marketing efforts continue to be directed toward strengthening our core business through our fiscal year initiatives and building our worldwide sales. We plan to continue the refinement and expansion of our product offerings internationally, including our MindBody GLP-1 System™, during the second half of fiscal year 2025 and beyond. We expect this expansion will continue to drive revenue growth globally through increased average order size and increased ability to attract and retain new independent consultants and customers with a compelling product lineup.
Cost of Sales. Cost of sales were $13.2 million and $11.1 million for the three months ended December 31, 2024 and 2023, respectively, resulting in gross profit percentages of 80.5% and 78.6%, respectively. Cost of sales were $22.7 million and $21.2 million for the six months ended December 31, 2024 and 2023, respectively, resulting in gross profit percentages of 80.3% and 79.4%, respectively. The decrease in cost of sales as a percentage of revenue is primarily due to a shift in product sales mix, lower inventory obsolescence expense, and lower inventory variance expenses during the three and six months ended December 31, 2024.
Commissions and Incentives. Commissions and incentives expenses during the three months ended December 31, 2024 were $32.5 million, or 48.0%, of revenue as compared to $21.8 million, or 42.1%, of revenue for the three months ended December 31, 2023. Commissions and incentives expenses during the six months ended December 31, 2024 were $52.8 million, or 45.9%, of revenue as compared to $44.2 million, or 42.9%, of revenue for the six months ended December 31, 2023. The increase in commissions and incentives expenses as a percentage of revenue compared to the prior year period is due to higher qualifications within existing promotional and incentive programs and changes in the sales mix within our Active Accounts between our independent consultants and customers.
Commissions and incentives expenses, as a percentage of revenue, may fluctuate in future periods based on our ability to hold incentive trips and events and the timing and magnitude of compensation, incentive and promotional programs.
Selling, General and Administrative. Selling, general and administrative expenses during the three months ended December 31, 2024 were $18.6 million, or 27.5%, of revenue as compared to $20.1 million, or 38.9%, of revenue for the three months ended December 31, 2023. Selling, general and administrative expenses during the six months ended December 31, 2024 were $33.5 million, or 29.1%, of revenue as compared to $38.0 million, or 36.9%, of revenue for the six months ended December 31, 2023. The decrease in selling, general and administrative expenses as a percentage of revenue during the three
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and six months ended December 31, 2024 compared to the prior year period is primarily due to decreased proxy contest related expenses, the termination of our endorsement agreement with Real Salt Lake in December 2023, and timing of our annual convention. These decreases were partially offset by increases in the variable portion of employee related compensation expenses.
Total Other Income (Expense). During the three months ended December 31, 2024 we recognized total net other expense of $0.3 million as compared to total net other income of $0.1 million for the three months ended December 31, 2023. During the six months ended December 31, 2024 we recognized total net other expense of $0.3 million as compared to total net other income of $0.2 million for the six months ended December 31, 2023. Total net other income (expense) for the three and six months ended December 31, 2024 and 2023 consisted primarily of interest income, offset by foreign currency gains and losses.
Income Tax Expense. We recognized income tax expense of $0.5 million and $1.3 million for the three and six months ended December 31, 2024, as compared to an income tax benefit $0.5 million and $0.3 million for the three and six months ended December 31, 2023. The effective tax rate for the three and six months ended December 31, 2024 was 17.4% and 22.8%, respectively, compared to 41.0% and 90.5% for the three and six months ended December 31, 2023, respectively.
The change in the effective tax rate for the three and six months ended December 31, 2024 compared to the prior year period was primarily due to changes in taxable income and the impact of discrete items.
We expect that our effective tax rate will fluctuate slightly during the remainder of fiscal 2025 as the impact of discrete items and other permanent differences are recognized during the year; however, our tax rate can be impacted by various book to tax differences and fluctuations in our stock price that occur during the year which are difficult to forecast.
Liquidity and Capital Resources
Liquidity
Our primary liquidity and capital resource requirements are to finance the cost of our planned operating expenses and working capital (principally inventory purchases), fund capital expenditures, and service our debt, which includes any outstanding balances under our credit facility. We have generally relied on cash flow from operations to fund operating activities and we have, at times, incurred long-term debt in order to fund stock repurchases and strategic transactions.
As of December 31, 2024, our available liquidity was $21.6 million, which consisted of available cash and cash equivalents. This represents an increase of $4.7 million from the $16.9 million in cash and cash equivalents as of June 30, 2024.
During the six months ended December 31, 2024, our net cash provided by operating activities was $8.6 million as compared to $6.5 million during the six months ended December 31, 2023.
During the six months ended December 31, 2024, our net cash used in investing activities was $0.8 million, as a result of the purchase of fixed assets. During the six months ended December 31, 2023, our net cash used in investing activities was $1.7 million, as a result of the purchase of fixed assets.
Cash used in financing activities during the six months ended December 31, 2024 was $3.2 million as a result of our payment of cash dividends, repurchases of common stock, and shares purchased as payment of tax withholding upon vesting of equity awards, partially offset by proceeds from stock issued under our 2019 Employee Stock Purchase Plan (as amended, the "2019 ESPP"). Cash used in financing activities during the six months ended December 31, 2023 was $9.2 million as a result of our payment of cash dividends, which consisted of a special one-time dividend, the repurchase of common stock, and shares purchased as payment of tax withholding upon vesting of equity awards, partially offset by proceeds from stock issued under our 2019 ESPP and stock option exercises.
At December 31, 2024 and June 30, 2024, the total amount of our foreign subsidiary cash was $5.5 million and $7.3 million, respectively. The federal tax reform legislation that was passed into law during December 2017 enacted a 100% dividend deduction for greater than 10% owned foreign corporations. Therefore, in the future, if needed, we expect to be able to repatriate cash from foreign subsidiaries without paying additional U.S. taxes.
At December 31, 2024, we had working capital (current assets minus current liabilities) of $18.2 million, compared to working capital of $15.3 million at June 30, 2024. We believe that our cash and cash equivalents balances and our ongoing cash flow from operations will be sufficient to satisfy our cash requirements for at least the next 12 months. The majority of our historical expenses have been variable in nature and as such, a potential reduction in the level of revenue would reduce our cash flow needs. In the event that our current cash balances and future cash flow from operations are not sufficient to meet our obligations or strategic needs, we would consider raising additional funds, which may not be available on terms that are acceptable to us, or at all. Our 2024 Credit Facility (as defined below), provides for a revolving line of credit in an aggregate
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principal amount not to exceed $5.0 million. We would also consider realigning our strategic plans including a reduction in capital spending and expenses.
Capital Resources
Shelf Registration Statement
On March 31, 2023, we filed a shelf registration statement on Form S-3 (the “2023 Shelf Registration”) with the Securities and Exchange Commission (“SEC”) that was declared effective on April 6, 2023, which permits us to offer up to $75 million of common stock, preferred stock, debt securities and warrants in one or more offerings and in any combination, including in units from time to time. Our 2023 Shelf Registration is intended to provide us with additional flexibility to access capital markets for general corporate purposes, which may include, among other purposes, working capital, capital expenditures, other corporate expenses and acquisitions of assets, licenses, products, technologies or businesses.
2024 Credit Facility
On April 12, 2024, we entered into a Loan Agreement (the “Loan Agreement”) with Bank of America, N.A., as Lender (the “Lender”). In connection with the Loan Agreement and on the same date, we, Lifeline Nutraceuticals Corporation, as Guarantor (the “Guarantor”), and the Lender also entered into a Continuing and Unconditional Guaranty (the “Continuing and Unconditional Guaranty”) and a Security and Pledge Agreement (the “Security and Pledge Agreement”). The Loan Agreement provides for a revolving line of credit in an aggregate principal amount not to exceed $5.0 million (the “Line of Credit” and collectively with the Loan Agreement, the Continuing and Unconditional Guaranty and the Security and Pledge Agreement, the “2024 Credit Facility”).
In the event we borrow under the Line of Credit, interest will be payable commencing on the last day of each month following such borrowing until payment in full of all principal outstanding under the Line of Credit, with all unpaid principal and interest due on April 12, 2027 (the “Expiration Date”). The Line of Credit will bear interest at a rate per year equal to the sum of (i) the greater of the Term Secured Overnight Financing Rate Daily Floating Rate (as defined in the Loan Agreement) or 0.00%, plus (ii) 2.00%. Amounts under the Line of Credit may be repaid and re-borrowed from time to time until the Expiration Date.
Our obligations under the Loan Agreement are secured by a security interest in substantially all of the assets of the Company and the Guarantor, as further provided for in the Security and Pledge Agreement. Pursuant to the Continuing and Unconditional Guaranty, the Guarantor guarantees and promises to pay promptly to the Lender all indebtedness of the Company when due.
The Loan Agreement contains customary covenants, including affirmative and negative covenants that in certain circumstances restrict our ability to incur additional indebtedness, make certain investments, purchase or otherwise acquire all or substantially all the assets or equity interests of other companies, or transfer any part of the business or any assets of the Company or the Guarantor. The Loan Agreement requires us to maintain specified financial ratios and satisfy certain financial condition tests.
The Loan Agreement contains certain customary events of default, including, among other things, our failure to make required payments under the Loan Agreement, certain breaches of representations made by us or the Guarantor, insolvency or bankruptcy of the Company or the Guarantor, failure to have an enforceable first lien or security interest in any property given as security for the Loan Agreement, or our failure to comply with covenants set forth in the Loan Agreement. If an event of default occurs under the Loan Agreement, the obligation of the Lender to make any additional credit available to us may be terminated and the amounts outstanding may become immediately due and payable in the discretion of the Lender, provided that in the event of insolvency or bankruptcy of the Company or the Guarantor, all debts outstanding under the Loan Agreement will automatically become due and payable. Upon the occurrence of any default or after maturity, all amounts outstanding under the Loan Agreement will at the option of the Lender bear interest at a rate which is 2.00% higher than the rate of interest otherwise provided under the Loan Agreement.
As of the date of this report, we have not borrowed under the 2024 Credit Facility.
Commitments and Obligations
Please refer to Note 7 to the condensed consolidated financial statements contained in this report for information regarding our contingent liabilities.
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Critical Accounting Policies and Estimates
We prepare our financial statements in conformity with accounting principles generally accepted in the United States of America. As such, we are required to make certain estimates, judgments, and assumptions that we believe are reasonable based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the periods presented. Actual results could differ from these estimates. Our significant accounting policies are described in Note 2 to our consolidated financial statements. Certain of these significant accounting policies require us to make difficult, subjective, or complex judgments or estimates. We consider an accounting estimate to be critical if (1) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made and (2) changes in the estimate that are reasonably likely to occur from period to period, or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations.
There are other items within our financial statements that require estimation but are not deemed critical as defined above. Changes in estimates used in these and other items could have a material impact on our financial statements. Management has discussed the development and selection of these critical accounting estimates with our Board of Directors, and our audit committee has reviewed the disclosures noted below.
Inventory Valuation
We value our inventory at the lower of cost or net realizable value on a first-in first-out basis. Accordingly, we reduce our inventories for the diminution of value resulting from product obsolescence, damage or other issues affecting marketability equal to the difference between the cost of the inventory and its net realizable value. Factors utilized in the determination of net realizable value include: (i) current sales data and historical return rates, (ii) estimates of future demand, (iii) competitive pricing pressures, (iv) new production introductions, (v) product expiration dates, and (vi) component and packaging obsolescence.
Stock-Based Compensation
We use the fair value approach to account for stock-based compensation in accordance with current accounting guidance. We recognize compensation costs for awards with performance conditions when we conclude it is probable that the performance conditions will be achieved. We reassess the probability of vesting at each balance sheet date and adjust compensation costs based on our probability assessment.
Historically, our estimates and underlying assumptions have not materially deviated from our actual reported results and rates. However, we base the assumptions we use on our best estimates, which involves inherent uncertainties based on market conditions that are outside of our control. If actual results are not consistent with the assumptions we use, the stock-based compensation expense reported in our consolidated financial statements may not be representative of the actual economic cost of stock-based compensation. For example, if actual employee forfeitures significantly differ from our estimated forfeitures, we may be required to adjust our consolidated financial statements in future periods.
Income Taxes
The provision for income taxes includes income from U.S. and foreign subsidiaries taxed at statutory rates, the accrual or release of amounts for tax uncertainties, and U.S. tax impacts of foreign income in the U.S.
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the carrying amounts of assets and liabilities on the financial statements and their respective tax bases. Deferred tax assets also are recognized for net operating losses and credit carryforwards. Deferred tax assets and liabilities are measured using the enacted rates applicable to taxable income in the years in which the temporary differences are expected to reverse and the credits are expected to be used. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. An assessment is made as to whether or not a valuation allowance is required to offset deferred tax assets. This assessment requires estimates as to future operating results, as well as an evaluation of the effectiveness of our tax planning strategies. These estimates are made on an ongoing basis based upon our business plans and growth strategies in each market and consequently, future material changes in the valuation allowance are possible. The valuation allowance reduces the deferred tax assets to an amount that management determined is more-likely-than-not to be realized.
We operate in and file income tax returns in the U.S. and numerous foreign jurisdictions with complex tax laws and regulations, which are subject to examination by tax authorities. The complexity of our global structure requires specialized knowledge and judgment in determining the application of tax laws in various jurisdictions. Years open to examination contain matters that could be subject to differing interpretations of applicable tax laws and regulations related to the amount and/or
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timing of income, deductions, and tax credits. We account for uncertain tax positions in accordance with Accounting Standards Codification 740, Income Taxes. This guidance prescribes a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement.
Interest and penalties related to tax contingency or settlement items are recorded as a component of the provision for income taxes in our Consolidated Statements of Operations and Comprehensive Income. We record accruals for tax contingencies as a component of accrued liabilities or other long-term liabilities on our Consolidated Balance Sheet.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
This item is not required for smaller reporting companies.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act of 1934, as amended) that are designed to ensure that the information required to be disclosed in the reports we file or submit under the Exchange Act of 1934, as amended, is (a) recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and (b) accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. As of the end of the period covered by this quarterly report on Form 10-Q, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness and design and operation of such disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act of 1934, as amended. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were designed and operating effectively as of December 31, 2024.
Changes in Internal Control over Financial Reporting
An evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 of the Exchange Act of 1934, as amended, was also performed under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of any change in our internal control over financial reporting that occurred during our last fiscal quarter. That evaluation did not identify any changes in our internal control over financial reporting during the three months ended December 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitations of Internal Control Over Financial Reporting
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
PART II. Other Information
Item 1. Legal Proceedings
See Note 7 to our unaudited condensed consolidated financial statements contained within this quarterly report on Form 10-Q for a discussion of our legal proceedings.
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully consider the risk factors discussed in “Part I. Item 1A — Risk Factors” in our annual report on Form 10-K for the fiscal year ended June 30, 2024, filed on August 28, 2024. The risks and uncertainties described in such risk factors and elsewhere in this report have the potential to materially affect our business, financial condition, results of operations, cash flows, projected results and future prospects. We do not believe that there have been any material changes to the risk factors previously disclosed in our recent SEC filings, including our most recently filed Form 10-K, as referenced above.
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table provides information with respect to all purchases of our common stock made by or on behalf of the Company or any “affiliated purchaser,” as defined in Rule 10b-18 under the Exchange Act, during the three months ended December 31, 2024. All purchases listed below were made in the open market at prevailing market prices.
| Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1) | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(1) | ||||||||||||||||||||||
| October 1 - October 31 | — | $ | — | — | $ | 19,307,478 | ||||||||||||||||||||
| November 1 - November 31 | — | $ | — | — | $ | 19,307,478 | ||||||||||||||||||||
| December 1 - December 30 | — | $ | — | — | $ | 19,307,478 | ||||||||||||||||||||
| Total | — | — | ||||||||||||||||||||||||
1.On November 27, 2017, our Board of Directors approved a stock repurchase program, as amended on February 1, 2019, August 27, 2020, February 17, 2022, and June 12, 2023. Under the program, we are authorized to repurchase up to $60.0 million of our outstanding shares through December 31, 2026. The repurchase program permits us to purchase shares from time to time through a variety of methods, including in the open market, through privately negotiated transactions or other means as determined by our management, in accordance with applicable securities laws. As part of the repurchase program, we have authorized a pre-arranged stock repurchase plan which operates in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. Accordingly, any transactions under such stock repurchase plan will be completed in accordance with the terms of the plan, including specified price, volume and timing conditions. The authorization may be suspended or discontinued at any time.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
During the three months ended December 31, 2024, none of the Company’s directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) informed the Company of adoption termination
Item 6. Exhibits
| Exhibit No. | Document Description | Filed Herewith or Incorporate by Reference From | ||||||||||||
| 3.1 | Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on March 13, 2018. | |||||||||||||
| 3.2 | Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on August 15, 2019. | |||||||||||||
| 3.3 | Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on August 31, 2023. | |||||||||||||
| 3.3 | Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on November 19, 2024. | |||||||||||||
| 10.1 | Annex A to the Registrant’s Proxy Statement on Schedule 14A, filed on September 20, 2024. | |||||||||||||
| 10.2 | Annex B to the Registrant’s Proxy Statement on Schedule 14A, filed on September 20, 2024. | |||||||||||||
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| 10.3 | Filed herewith. | |||||||||||||
| 10.4 | Filed herewith. | |||||||||||||
| 10.5 | Filed herewith. | |||||||||||||
| 10.6 | Filed herewith. | |||||||||||||
| 10.7 | Filed herewith. | |||||||||||||
| 10.8 | Filed herewith. | |||||||||||||
| 10.9 | Filed herewith. | |||||||||||||
| 10.10 | Filed herewith. | |||||||||||||
| 31.1 | Filed herewith. | |||||||||||||
| 31.2 | Filed herewith. | |||||||||||||
| 32.1* | Furnished herewith. | |||||||||||||
| 32.2* | Furnished herewith. | |||||||||||||
| 101 | The following financial information from the Company’s quarterly report on Form 10-Q for the quarter ended December 31, 2024 formatted in Inline XBRL (extensible Business Reporting Language): (i) Unaudited Condensed Consolidated Balance Sheets at December 31, 2024 and June 30, 2024; (ii) Unaudited Condensed Consolidated Statements of Operations and Other Comprehensive Income for the three and six months ended December 31, 2024 and 2023; (iii) Unaudited Condensed Consolidated Statement of Stockholders’ Equity for the three and six months ended December 31, 2024 and 2023; (iv) Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2024 and 2023; and (v) Notes to Unaudited Condensed Consolidated Financial Statements, tagged as blocks of text. | Filed herewith. | ||||||||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101 | Filed herewith | ||||||||||||
| * | This certification is being furnished solely to accompany this report pursuant to 18 U.S.C. 1350, and is not being filed for purposes of Section 18 of the Exchange Act and is not to be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| LIFEVANTAGE CORPORATION | ||||||||
| Date: | February 5, 2025 | /s/ Steven R. Fife | ||||||
| Steven R. Fife President and Chief Executive Officer (Principal Executive Officer) | ||||||||
| Date: | February 5, 2025 | /s/ Carl A. Aure | ||||||
| Carl A. Aure Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | ||||||||
29
Evolve COMPENSATION PLAN GUIDE FOR INDEPENDENT LIFEVANTAGE CONSULTANTS USA Effective November 1, 2024
Welcome 2
activatedLife. It’s complicated. Messy. Beautiful. It goes by fast, and you want to live life to the fullest. But everyday responsibilities, fears, or restrictions can hold you back. You deserve to break free. You deserve to be your best self and live a healthy, happy life on your terms. LifeVantage is here to help. Our products are purposefully designed to activate your body’s ability to create vibrant health, starting at the cellular level. And when you look and feel your best, you’ll want to help others do the same. LifeVantage activates financial wellness with the opportunity to grow a business that can change people’s lives for the better. That’s where Evolve creates possibilities. Whether you are looking to simply share life-changing products or wanting to work and grow as a professional mentor and leader, being an Independent LifeVantage® Consultant will positively challenge and reward you.* to life IT’S TIME TO LIVE WITH PURPOSE. IT’S TIME TO INSPIRE REMARKABLE. IT’S TIME TO LIVE ACTIVATED. *LifeVantage does not promise the financial success of any Consultant. Your success depends on your skill, fortitude, dedication, and your ability to lead others to emulate these qualities. Nothing in this guide is a representation that you will be financially successful. LifeVantage does not guarantee any income or Rank success. The financial results achieved by LifeVantage Consultants are published on LifeVantage’s Income Disclosure Statement at www.lifevantage.com/us-en.earn. 3
WELCOME 2 KEY TERMS 4-5 THE CONSULTANT PATH 6-7 SHARE Product Pricing Customer Sales Profit Personal Sales Bonus Sharing Bonus 8 9 11 12 LAUNCH BONUSES Sharing Bonus Doubler SC1 Rank Advancement Bonus 14 15 BUILD & GROW Level Comissions 16-17 LEAD Leadership Match Leadership Pool 18-19 20 LEGAL NOTICES 21 ACTIVE You are considered an Active Consultant when your account is in Good Standing and you have met the 150 Sales Volume Requirement in that month, which can be fulfilled solely through Customer orders. COMMISSIONABLE VOLUME (CV) Commissionable Volume is the measurement on which most bonuses and commissions are paid. When you earn a percentage of volume, you earn a percentage of a product's CV. In the USA, SV and CV are generally the same, except when CV has been discounted. COMPRESSION A process by which CV for Level Commissions skips inactive Consultants and rolls up to the next Active Consultant. CUSTOMER SALES VOLUME (CSV) The Sales Volume originating from your personally enrolled Customers’ orders. DOWNLINE All of the Consultants sponsored into your genealogy are considered part of your downline. ENROLLER The LifeVantage Consultant who enrolls a new Customer or Consultant. Also known as the Enrollment Sponsor. ENROLLMENT TREE The line of Consultants consecutively linked through Consultant enrollment and not by placement. The Enrollment Tree does not include any Placement Sponsors. GENERATION Consultants in your Enrollment Tree with the Paid-as Rank of Managing Consultant 1 or higher are your Generations. A Generation 1 is the first Consultant in any downline with a Paid-as Rank of Managing Consultant 1 or higher. A Generation 2 is the next Consultant in that Leg with a Paid-as Rank of Managing Consultant 1 or higher, and so on. GOOD STANDING Good Standing means you are in compliance with the Consultant Agreement, including payment of any applicable renewal fees. Table of Contents Key Terms 4
GROUP SALES VOLUME (GSV) Group Sales Volume is the total Sales Volume from you and all the Consultants in your entire team. LAUNCH PERIOD Your Launch Period includes the month you enroll and the following 3 full calendar months. LEG A Leg begins with a Level 1 Consultant and includes all of the Consultants beneath them. You have as many Legs as you have Level 1 Consultants. LEVEL The location a Consultant has in your downline in relation to you. All of the Consultants directly below you in your Placement Tree are your Level 1. Consultants placed directly below your Level 1 Consultants are your Level 2, and so on. MAXIMUM VOLUME RULE (MVR) The maximum amount of GSV from any one Leg or from your own Personal Sales Volume and Customer Sales Volume that can count toward your monthly Rank qualification. PAID-AS RANK Your Paid-as Rank is the Rank for which you qualify each month. Your Paid-as Rank determines many of your bonuses. Your Paid-as Rank may be the same as or lower than your Recognition Rank depending on your monthly qualifications. PERSONAL SALES VOLUME (PSV) The Sales Volume originating from your personal account. PERSONAL PURCHASE CAP (PPC) For qualification purposes only, you can count up to 150 Personal Sales Volume toward your monthly Rank qualifications. Your entire Sales Volume requirement can be satisfied by your Customers' purchases. PLACEMENT SPONSOR If you place a new Consultant directly below you in your downline, you are the Enrollment Sponsor and Placement Sponsor. However, if you place a new Consultant below a downline Consultant in the Placement Tree, that downline Consultant becomes your new enrollee’s Placement Sponsor. PLACEMENT TREE If you are a new Consultant's Enroller, you may place them directly below you in your downline or under any other downline Consultant’s position. This is considered your Placement Tree, also referred to as your downline or team. QUALIFYING SALES VOLUME (QSV) The Sales Volume that counts toward your monthly Rank qualification. You can count up to 150 PSV towards your monthly Sales Volume Requirement. RANK ADVANCING When you meet the qualifications to be paid as a Rank higher than your current Recognition Rank, you will “advance” to that higher Rank, and your Recognition Rank will be updated to reflect that new milestone. RECOGNITION RANK Your Recognition Rank is the highest Rank you have achieved along the Consultant Path. Your Recognition Rank is subject to reclassification once per year based on the maintenance requirements for that rank. SALES VOLUME (SV) The numeric value attributed by LifeVantage to each commissionable product sold and/or purchased. SALES VOLUME REQUIREMENT (SVR) The accumulation of your Customer Sales Volume and your Personal Sales Volume to meet your monthly Paid-as Rank requirement. UPLINE All of the Consultants above you in your Enrollment and/or Placement Tree. 5
Evolve. Share. Build & Grow. Lead. Your path as an Independent LifeVantage Consultant can lead to a world of possibilities. Start by sharing the LifeVantage products that you love with Customers to help them activate wellness and improve their health. The more you share, the more you’ll grow as you find others who want to join you on the path with a business of their own. As you progress along the Consultant Path, your attention will shift to building and leading Consultants on your team who are ready to grow to the next stage of success. At every stage you’ll evolve your earnings, yourself, and your life. HOW IT WORKS You must meet certain volume requirements to stay Active and earn bonuses and commissions. These requirements will change, along with the bonuses and commissions you can qualify for, as you move along the path and earn Rank advancements. As you reach the qualifications for a specific Rank, you will be recognized with your “Recognition Rank” at that level for as long as you remain Active. However, your “Paid-as Rank” will fluctuate with your qualifications from month to month. 6
SHARE People say our products are too good not to share! In the early stages of your business, begin with a strong emphasis on sharing our wellness products by selling to Customers. These sales are the fastest way to build your business and see a speedy profit. BUILD & GROW By the time you reach Senior Consultant 1, you should begin spending more time finding new people to add to your team. Balance your efforts between selling and sponsoring, which is vital to your continued growth. The larger you grow your team, the more time you will spend building your business and helping your Consultants reach their own goals. C O N S U LT A N T C O N S U LT A N T 1 C O N S U LT A N T 2 C O N S U LT A N T 3 S E N IO R C O N S U LT A N T 1 S E N IO R C O N S U LT A N T 2 S E N IO R C O N S U LT A N T 3 M A N A G IN G C O N S U LT A N T 1 M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 PERSONAL PURCHASE CAP 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 SALES VOLUME REQUIREMENT 150 200 250 300 300 300 300 300 300 300 300 300 300 300 GROUP SALES VOLUME 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 MAXIMUM VOLUME RULE 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 LEAD Leadership is more than the Rank next to your name. Teach by example how to build a successful LifeVantage business. Acknowledge, encourage, and lift your team members, and together you can enjoy the rewards of your shared success! The Consultant Path Evolve is uniquely designed to help LifeVantage Consultants develop confidence, community, and leadership. Each Rank advancement offers the opportunity to celebrate with increased earning possibilities. 7
EACH LIFEVANTAGE PRODUCT HAS 3 PRICES. 03. CONSULTANT Consultant price is lower than the One- time Retail price and the Subscription price, regardless of the order type, and represents the lowest price available. 02. SUBSCRIPTION Subscription price is a discount from One-time Retail price. Products purchased by Customers on Subscription are eligible for the discount. 01. ONE-TIME RETAIL The advertised Customer price for all products, whether purchased online or directly from you. Product Pricing 8
Customer Sales Profit allows you to earn commissions on every order. Here's how it works: When your Customers order LifeVantage products, you earn the difference between the price your Customer paid and the Consultant price. IN PRACTICE In these examples, 2 Customers are ordering the same set of products. The Customer on the left purchases the products at the full One Time Retail price of $100. The Consultant price for that order is $80. So, you earn a Customer Sales Profit of $20. The Customer on the right orders the same products on a Subscription order for the Subscription price of $90. The Consultant price for that order is $80. So, you earn a Customer Sales Profit of $10. CUSTOMER SALES PROFIT IS CALCULATED DAILY.* *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. Sharing your excitement about LifeVantage and selling products to Customers is at the heart of being a Consultant. In addition to Customer Sales Profit, you can earn on total monthly product sales with the Personal Sales Bonus. Customer Sales Profit Share. Must be Active to qualify RETAIL $100 PURCHASE PRICE $20 CUSTOMER SALES PROFIT subtract $80 CONSULTANT BASE PRICE SUB $90 PURCHASE PRICE $10 CUSTOMER SALES PROFIT subtract $80 CONSULTANT BASE PRICE 9
Customers may cancel their Subscription to opt out of the program at any time. Subscription orders come with rewards for all! Learn more about the LifeVantage Rewards Circle loyalty program at LifeVantage.com. Subscribe. Save. Get Rewards. 10
Must be Active to qualify CUSTOMER SV BONUS TIER RECOGNITION TITLE 500 – 999.99 5% ONYX 1,000 – 1,999.99 10% EMERALD 2,000 – 3,999.99 15% SAPPHIRE 4,000+ 20% DIAMOND Personal Sales Bonus The Personal Sales Bonus rewards you on your personal Customer sales. When your personal Customer sales total 500 SV or more in a single month, you become eligible for an additional Personal Sales Bonus. When you reach 500 Customer Sales Volume in a single month, you will be recognized with a special title before your Rank, starting with Onyx at 500 SV then changing to Emerald at 1000 SV, Sapphire at 2000 SV, and Diamond at 4000 SV and higher. IN PRACTICE For example, if your Customers order 2200 SV worth of products in the month, you are eligible for the 15% bonus tier. This bonus is paid on CV which takes into account promos or discounts Customers may have redeemed. PERSONAL SALES BONUS IS CALCULATED MONTHLY Share. 11 2200 SV SAPPHIRE $330 PERSONAL SALES BONUS you earn 15% of CV and the title of RETAIL SUB YOU
SHARING BONUS IS CALCULATED DAILY*. *May be disbursed three business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. SHARING BONUS IS CAPPED AT US$100 PER NEWLY ENROLLED CONSULTANT. The Sharing Bonus rewards you for selling products to new Consultants and helping them make early sales to Customers. Earn 10% on the Personal Sales Volume and Customer Sales Volume of your new personally enrolled Consultant. This bonus is paid on sales in the new Consultant’s enrollment month, up to a maximum of US$100 per newly enrolled Consultant.. IN PRACTICE For example, if you sell 250 SV worth of products to your new personally enrolled Consultant and your new personally enrolled Consultant sells 500 SV worth of products to their personally enrolled Customers in that new Consultant’s enrollment month, you are eligible for the 10% Sharing Bonus on 750 SV. This bonus is paid on CV, which takes into account any promos or discounts that may have been redeemed. 12 Sharing Bonus. Sell to Newly Enrolled Consultant Newly Enrolled Consultant Sells to Personally Enrolled Customers In the Newly Enrolled Consultant’s Enrollment Month YOU C 250 SV 500 SV You Earn 10% of CV $75 SHARING BONUS Must be Active to qualify C
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SHARING BONUS DOUBLER The Sharing Bonus Doubler rewards you for selling products to new Consultants and helping them make early sales to Customers during your Launch Period. During your Launch Period, earn an additional 10% on the Personal Sales Volume and Customer Sales Volume of your new personally enrolled Consultant. This bonus is paid on sales in the new Consultant’s enrollment month, up to a maximum of US$100 per newly enrolled Consultant. IN PRACTICE For example, if during your Launch Period you sell 250 SV of products to your new personally enrolled Consultant and your new personally enrolled Consultant sells 500 SV of products to Launch Bonuses their personally enrolled Customers in that new Consultant’s enrollment month, you are eligible for the 10% Sharing Bonus Doubler on 750 SV. This bonus is paid on CV, which takes into account any promos or discounts that may have been redeemed. During Launch Period Sell To Newly Enrolled Consultant Newly Enrolled Consultant Sells To Personally Enrolled Customers In the Newly Enrolled Consultant's Enrollment Month YOU C 250 SV 500 SV You Earn 10% of CV $75.00 SHARING BONUS DOUBLER Must be Active to qualify These bonuses can boost you right from the start. Your Launch Period begins the day you enroll as a Consultant and continues through the next 3 calendar months. SHARING BONUS DOUBLER IS CALCULATED DAILY*. SHARING BONUS DOUBLER IS CAPPED AT US$100 PER NEWLY ENROLLED CONSULTANT. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. C 14
YOU EARN $150 When you advance to the Rank of SENIOR CONSULTANT 1 during your Launch Period YOU SC1 RANK ADVANCEMENT BONUS IS CALCULATED MONTHLY SC1 Rank Advancement Bonus When you reach the Rank of Senior Consultant 1 for the first time during your Launch Period, you will earn a $150 SC1 Rank Advancement Bonus. Must be Active to qualify 15
Level Commissions C O N S U LT A N T C O N S U LT A N T 1 C O N S U LT A N T 2 C O N S U LT A N T 3 S E N IO R C O N S U LT A N T 1 S E N IO R C O N S U LT A N T 2 S E N IO R C O N S U LT A N T 3 M A N A G IN G C O N S U LT A N T 1 M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 200 250 300 300 300 300 300 300 300 300 300 300 300 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 LEVEL 1 5% 7% 9% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% LEVEL 2 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% 7% 7% LEVEL 3 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% LEVEL 4 3% 5% 6% 6% 6% 6% 6% 6% 6% LEVEL 5 3% 5% 6% 6% 6% 6% 6% 6% LEVEL 6 3% 4% 5% 5% 5% 5% 5% LEVEL 7 3% 4% 4% 4% 4% 4% 4% LEVEL 8 3% 3% 3% 3% 3% 3% LEVEL 9 3% 3% 3% 3% 3% 3% You earn Level Commissions for building your team and teaching those you sponsor to create strong teams of their own. As an Active Consultant, you are paid a percentage of commissions from the CV of your team’s sales. Your Paid-as Rank determines the percentages you earn and the number of levels on which you are eligible to receive a commission. HOW LEVELS WORK All of the Consultants directly below you in your Placement Tree are your Level 1. Consultants are paid Customers Sales Profit and Personal Sales Bonus on their personally enrolled Customer purchases. Enrollers are not eligible for a Level Commission on their personal Customers. LEVEL COMMISSIONS ARE CALCULATED MONTHLY 16 Build & Grow. PPC SVR GSV MVR
Active Compression 9 8 5 3 7 2 6 1 ORDER MC1 START HERE C1 C3 INACTIVE SC3 MC3 INACTIVE EC3 EC4 MC1 INACTIVE PRESIDENTIAL 4 YOU Active MC1 qualified to earn up to 5 Levels. They are Level 1, so they are paid 10% Active C1 qualified to earn on Level 1. This is Level 2, so they are not eligible and Level 2 is not paid. Active C3 is qualified to earn on only 2 Levels. This is Level 3, so they are not eligible and Level 3 is not paid. Inactive. Through Active Compression, this Level is not qualified and Level 4 rolls up. Because the Consultant below you is inactive, you become Level 4 through Active Compression. As an Active SC3, you are qualified to earn at Level 4 and are paid 3%. Active MC3 qualified to earn on 9 Levels and paid on Level 5 at 6%. Inactive. Through Active Compression, this Level is not qualified and Level 6 rolls up. New Level 6 is an Active EC3 qualified to earn on 9 Levels. They are paid Level 6 at 5%. Active EC4 is paid on Level 7 at 4%. Active MC1 qualifies to earn only up to Level 5. Because this is Level 8, they are not eligible and Level 8 is not paid. Inactive. Through Active Compression, this Level is not qualified and Level 9 rolls up. Active PC is qualified for Level 9 and paid 3%. A process by which CV for Level Commissions skips inactive Consultants and rolls up to the next Active Consultant. IN PRACTICE This example shows how volume could roll up in one Leg of a team. You’re a Senior Consultant 3 at Level 5 above the Consultant who earned the volume. Starting from the bottom of the chart, you see how CV flows up and what happens below and above you. KEY Qualified (Paid) Not Qualified (Not Paid) Inactive (Rolls Up) 17
M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T GENERATION 1 7% 12% 15% 20% 20% 20% 20% GENERATION 2 10% 12% 15% 20% 20% 20% GENERATION 3 10% 12% 15% 20% 20% GENERATION 4 10% 12% 15% 20% GENERATION 5 10% 12% 15% GENERATION 6 10% 12% GENERATION 7 12% CAP PER MATCH $1,000 $2,500 $5,000 $7,500 $10,000 $15,000 $15,000 When you are paid as a Managing Consultant 2 or higher in the month, you can receive a Leadership Match on qualified Generations. The Leadership Match is paid on your qualified Generations' Level Commissions. HOW GENERATIONS WORK Your Generation 1 is the first Consultant in any Leg in your team with a Paid-as Rank of Managing Consultant 1 or higher. A Generation 2 is the next Consultant in that Leg with a Paid-as Rank of Managing Consultant 1 or higher, and so on. LEADERSHIP MATCH IS CALCULATED MONTHLY MONTHLY LEADERSHIP MATCH CAN PAYOUT UP TO A MAXIMUM OF 9% OF MONTHLY GLOBAL CV. Leadership Match When you reach the Leader level, you’ve shown you truly know what it takes to succeed and have the skills to help mentor and motivate others. Keep cultivating your future leaders and helping them grow and you can earn substantial bonuses for building such a strong team. 18 Lead.
YOU MANAGING CONSULTANT 3 10% 12% EXECUTIVE CONSULTANT 2 12% MANAGING CONSULTANT 1 12% MANAGING CONSULTANT 3 MANAGING CONSULTANT 3 IN PRACTICE In this example, as a Managing Consultant 3, you earn a 12% Leadership Match on your Generation 1 Consultants and a 10% match on your Generation 2 Consultants. Qualified Generations are based on Paid-as Ranks. You can have multiple Generation 1 Consultants within a Leg. The Leadership Match is paid in addition to any other bonuses and commissions you might already be earning GENERATION 1 GENERATION 1 GENERATION 2 GENERATION 1 19
When you are paid as an Executive Consultant 1 or higher, you earn shares of our monthly Leadership Pool. This pool is made from 4% of global monthly CV. You receive shares based on your Paid-as Rank. The total pool amount is divided equally by the total number of monthly shares Consultants earn. Leadership Pool SHARES EXECUTIVE CONSULTANT 1 1 EXECUTIVE CONSULTANT 2 3 EXECUTIVE CONSULTANT 3 5 EXECUTIVE CONSULTANT 4 10 PRESIDENTIAL CONSULTANT 20 LEADERSHIP POOL IS CALCULATED MONTHLY Lead. 20
Legal Notices 1. LifeVantage Corporation is a publicly traded NASDAQ (LFVN) Direct Sales/Network Marketing company with a Multi-Level Marketing compensation plan that provides flexibility and opportunity for individuals to earn extra income based upon selling products to Customers.. 2. The focus of the LifeVantage Compensation Plan is to pay bonuses and commissions to LifeVantage Consultants based upon their product sales and the product sales of LifeVantage Consultants in their personal marketing team to ultimate end using Customers. 3. Every commission and/or compensation qualification requirement within this LifeVantage Compensation Plan may be achieved through product sales to Customers through a Consultant’s personal efforts and the efforts of the Consultants within their Downline. 4. LifeVantage products are not sold in retail stores and only licensed Consultants in Good Standing are authorized to sell LifeVantage products either directly from their own stock or indirectly through the company’s online shopping cart at www.lifevantage.com. 5. The Consultant Agreement consists of the LifeVantage Compensation Plan, the Income Disclosure Statement, the LifeVantage Consultant Application and Agreement, the LifeVantage Policies and Procedures, the LifeVantage Virtual Office Agreement (Back Office Agreement), and the LifeVantage Privacy Policy and Website Use Agreement. The Consultant Agreement governs the contractual relationship and obligations of each LifeVantage Consultant to LifeVantage. 6. A LifeVantage Consultant may not personally purchase for themselves nor encourage Customers or other Consultants to purchase more inventory than each can personally consume and/or sell to their personal Customers each month. In addition, each LifeVantage Consultant personally agrees that they may not place a new order in any given month unless 70% of all orders from previous months have been sold or consumed through personal/family use. 7. A LifeVantage Consultant must disclose the Income Disclosure Statement when making any earnings representations which can be found at the following link: www.lifevantage.com/us-en.earn. 8. The Consultants sales earnings disclosed are potential gross earnings and not net of other business expenses and not necessarily representative of the actual income, if any, that a Consultant can or will earn through the LifeVantage Compensation Plan. A Consultant's earnings will depend on the individual diligence, work effort, and market conditions. LifeVantage does not guarantee any income or Rank success. See the Income Disclosure Statement for detailed earnings information. 9. For Leadership Match, if after the individual caps per match are applied the monthly Leadership Match payout exceed 9% of monthly global CV, then all monthly Leadership Match earnings will be adjusted down by an equal percentage in order to ensure that the monthly Leadership Match does not exceed 9% of monthly global CV. 21
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Evolve © 2 0 24 L ife V an ta ge C or po ra tio n. A ll rig ht s re se rv ed . 24 0 81 9. 0 5
Evolve COMPENSATION PLAN GUIDE FOR INDEPENDENT LIFEVANTAGE CONSULTANTS AUSTRALIA Effective 1 November 2024
Welcome 2
activatedLife. It’s complicated. Messy. Beautiful. It goes by fast, and you want to live life to the fullest. But everyday responsibilities, fears, or restrictions can hold you back. You deserve to break free. You deserve to be your best self and live a healthy, happy life on your terms. LifeVantage is here to help. Our products are purposefully designed to activate your body’s ability to create vibrant health, starting at the cellular level. And when you look and feel your best, you’ll want to help others do the same. LifeVantage activates financial wellness with the opportunity to grow a business that can change people’s lives for the better. That’s where Evolve creates possibilities. Evolve is a compensation plan that allows you to work part-time or full-time.* Whether you are looking to simply share life-changing products or wanting to work and grow as a professional mentor and leader, being an Independent LifeVantage® Consultant will positively challenge and reward you. to life IT’S TIME TO LIVE WITH PURPOSE. IT’S TIME TO INSPIRE REMARKABLE. IT’S TIME TO LIVE ACTIVATED. *LifeVantage does not promise the financial success of any Consultant. Your success depends on your skill, fortitude, dedication, and your ability to lead others to emulate these qualities. Nothing in this guide is a representation that you will be financially successful. LifeVantage does not guarantee any income or Rank success. 3
WELCOME 2 KEY TERMS 4-5 THE CONSULTANT PATH 6-7 SHARE Product Pricing Customer Sales Profit Personal Sales Bonus Sharing Bonus 8 9 11 12 LAUNCH BONUSES Sharing Bonus Doubler SC1 Rank Advancement Bonus 14 15 BUILD & GROW Level Commissions 16-17 LEAD Leadership Match Leadership Pool 18-19 20 LEGAL NOTICES 21 ACTIVE You are considered an Active Consultant when your account is in Good Standing and you have met the 150 Sales Volume Requirement in that month, with at least 40 Personal Sales Volume. COMMISSIONABLE VOLUME (CV) Commissionable Volume is the measurement on which most bonuses and commissions are paid. When you earn a percentage of volume, you earn a percentage of a product's CV. The numeric value for CV is typically obtained when Sales Volume is multiplied by the PEG Rate, except in cases where CV has been discounted for any reason. COMPRESSION A process by which CV for Level Commissions skips inactive Consultants and rolls up to the next Active Consultant. CUSTOMER SALES VOLUME (CSV) The Sales Volume originating from your personally enrolled Customers’ orders. DOWNLINE All of the Consultants sponsored into your genealogy are considered part of your downline. ENROLLER The LifeVantage Consultant who enrols a new Customer or Consultant. Also known as the Enrolment Sponsor. ENROLMENT TREE The line of Consultants consecutively linked through Consultant enrolment and not by placement. The Enrolment Tree does not include any Placement Sponsors. GENERATION Consultants in your Enrolment Tree with the Paid-as Rank of Managing Consultant 1 or higher are your Generations. A Generation 1 is the first Consultant in any downline with a Paid-as Rank of Managing Consultant 1 or higher. A Generation 2 is the next Consultant in that Leg with a Paid-as Rank of Managing Consultant 1 or higher, and so on. Table of Contents Key Terms 4
GOOD STANDING Good Standing means you are in compliance with the Consultant Agreement, including payment of any applicable renewal fees. GROUP SALES VOLUME (GSV) Group Sales Volume is the total Sales Volume from you and all the Customers and Consultants in your entire team. LAUNCH PERIOD Your Launch Period including the month you enrol and the following 3 full calendar months. LEG A Leg begins with a Level 1 Consultant and includes all of the Consultants beneath them. You have as many Legs as you have Level 1 Consultants. LEVEL The location a Consultant has in your downline in relation to you. All of the Consultants directly below you in your Placement Tree are your Level 1. Consultants placed directly below your Level 1 Consultants are your Level 2, and so on. MAXIMUM VOLUME RULE (MVR) The maximum amount of GSV from any one Leg or from your own Personal Sales Volume and Customer Sales Volume that can count toward your monthly Rank qualification. PAID-AS RANK Your Paid-as Rank is the Rank for which you qualify each month. Your Paid-as Rank determines many of your bonuses. Your Paid-as Rank may be the same as or lower than your Recognition Rank depending on your monthly qualifications. PEG RATE The foreign currency conversion factor used by LifeVantage to calculate payments to Consultants. Using a PEG Rate allows LifeVantage to normalise payments to Consultants. The PEG Rate is periodically reviewed and set based on recent foreign exchange rates and projected foreign exchange rates. PERSONAL SALES VOLUME (PSV) The Sales Volume originating from your personal account. PLACEMENT SPONSOR If you place a new Consultant directly below you in your downline, you are the Enrolment Sponsor and Placement Sponsor. However, if you place a new Consultant below a downline Consultant in the Placement Tree, that downline Consultant becomes your new enrollee’s Placement Sponsor. PLACEMENT TREE If you are a new Consultant's Enroller, you may place them directly below you in your downline or under any other downline Consultant’s position. This is considered your Placement Tree, also referred to as your downline or team. QUALIFYING SALES VOLUME (QSV) The Sales Volume that counts toward your monthly Rank qualification. RANK ADVANCING When you meet the qualifications to be paid as a Rank higher than your current Recognition Rank, you will “advance” to that higher Rank, and your Recognition Rank will be updated to reflect that new milestone. RECOGNITION RANK Your Recognition Rank is the highest Rank you have achieved along the Consultant Path. Your Recognition Rank is subject to reclassification once per year based on the maintenance requirements for that Rank. SALES VOLUME (SV) The numeric value attributed by LifeVantage to each commissionable product sold and/or purchased. SALES VOLUME REQUIREMENT (SVR) The accumulation of your Customer Sales Volume and your Personal Sales Volume to meet your monthly Paid-as Rank requirement. UPLINE All of the Consultants above you in your Enrolment and/or Placement Tree. 5
Evolve. Share. Build & Grow. Lead. Your path as an Independent LifeVantage Consultant can lead to a world of possibilities. Start by sharing the LifeVantage products that you love with Customers to help them activate wellness and improve their health. The more you share, the more you’ll grow as you find others who want to join you on the path with a business of their own. As you progress along the Consultant Path, your attention will shift to building and leading Consultants on your team who are ready to grow to the next stage of success. At every stage you’ll evolve your earnings, yourself, and your life. HOW IT WORKS You must meet certain volume requirements to stay Active and earn bonuses and commissions. These requirements will change, along with the bonuses and commissions you can qualify for, as you move along the path and earn Rank advancements. As you reach the qualifications for a specific Rank, you will be recognized with your “Recognition Rank” at that level for as long as you remain Active. However, your “Paid-as Rank” will fluctuate with your qualifications from month to month. 6
SHARE People say our products are too good not to share! In the early stages of your business, begin with a strong emphasis on sharing our wellness products by selling to Customers. These sales are the fastest way to build your business and see speedy income. BUILD & GROW By the time you reach Senior Consultant 1, you should begin spending more time finding new people to add to your team. Balance your efforts between selling and sponsoring, which is vital to your continued growth. The larger you grow your team, the more time you will spend building your business and helping your Consultants reach their own goals. C O N S U LT A N T C O N S U LT A N T 1 C O N S U LT A N T 2 C O N S U LT A N T 3 S E N IO R C O N S U LT A N T 1 S E N IO R C O N S U LT A N T 2 S E N IO R C O N S U LT A N T 3 M A N A G IN G C O N S U LT A N T 1 M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 PERSONAL PURCHASE REQUIREMENT 40 40 40 40 40 40 40 40 40 40 40 40 40 40 SALES VOLUME REQUIREMENT 150 200 250 300 300 300 300 300 300 300 300 300 300 300 GROUP SALES VOLUME 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 MAXIMUM VOLUME RULE 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 LEAD Leadership is more than the Rank next to your name. Teach by example how to build a successful LifeVantage business. Acknowledge, encourage, and lift your team members, and together you can enjoy the rewards of your shared success! The Consultant Path Evolve is uniquely designed to help LifeVantage Consultants develop confidence, community, and leadership. Each Rank advancement offers the opportunity to celebrate with increased earning possibilities. 7
EACH LIFEVANTAGE PRODUCT HAS 3 PRICES. 03. CONSULTANT Consultant price is lower than the One Time Retail price and the Subscription Price, regardless of the order type, and represents the lowest price available. 02. SUBSCRIPTION Subscription price is a discount from One-time Retail price. Products purchased by Customers on Subscription are eligible for the discount. 01. ONE-TIME RETAIL The advertised Customer price for all products, whether purchased online or directly from you. Product Pricing 8
Customer Sales Income allows you to earn commissions on every order. Here's how it works: When your Customers order LifeVantage products, you earn the difference between the price your Customer paid and the Consultant price. IN PRACTICE In these examples, 2 Customers are ordering the same set of products. The Customer on the left purchases the products at the full GST-exclusive One Time Retail price of AU$140. The GST-exclusive Consultant price for that order is AU$112. So, you earn Customer Sales Income of AU$28. The Customer on the right orders the same products on a Subscription order for the GST-exclusive Subscription price of AU$126. The GST-exclusive Consultant price for that order is AU$112. So, you earn Customer Sales Income of AU$14. CUSTOMER SALES PROFIT IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. Sharing your excitement about LifeVantage and selling products to Customers is at the heart of being a Consultant. In addition to Customer Sales Income, you can earn on total monthly product sales with the Personal Sales Bonus. Customer Sales Income Share. Must be Active to qualify RETAIL AU$140 PURCHASE PRICE AU$28 CUSTOMER SALES INCOME subtract AU$112.00 CONSULTANT PRICE SUB AU$126 PURCHASE PRICE AU$14 CUSTOMER SALES INCOME subtract AU$112 CONSULTANT PRICE It is important to note that while the published prices may be inclusive of Goods and Services Tax (GST), all bonuses and/or commissions are paid on GST-exclusive values only. 9
Customers may cancel their Subscription to opt out of the program at any time. Subscription orders come with rewards for all! Learn more about the LifeVantage Rewards Circle loyalty program at LifeVantage.com. Subscribe. Save. Get Rewards. 10
Must be Active to qualify CUSTOMER SV BONUS TIER RECOGNITION TITLE 500 – 999.99 5% ONYX 1,000 – 1,999.99 10% EMERALD 2,000 – 3,999.99 15% SAPPHIRE 4,000+ 20% DIAMOND Personal Sales Bonus The Personal Sales Bonus rewards you on your personal Customer sales. When your personal Customer sales total 500 SV or more in a single month, you become eligible for an additional Personal Sales Bonus. The Bonus is paid on a percentage of CV. When you reach 500 Customer Sales Volume in a single month, you will be recognized with a special title before your Rank, starting with Onyx at 500 SV then changing to Emerald at 1000 SV, Sapphire at 2000 SV, and Diamond at 4000 SV and higher. IN PRACTICE For example, if your Customers order 2200 SV worth of products in the month, you are eligible for the 15% bonus tier. This bonus is paid on CV, which takes into account the PEG Rate and any promos or discounts Customers may have redeemed. For illustration purposes only, if the theoretical PEG Rate for Australia at the time this bonus is calculated were 1.4, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical AU PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 2200 SV X 1.40 (theoretical AU PEG Rate) X 15% = AU$462. PERSONAL SALES BONUS IS CALCULATED MONTHLY Share. 11 2200 SV SAPPHIRE AU$462 PERSONAL SALES BONUS you earn 15% of CV and the title of RETAIL SUB YOU
SHARING BONUS IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. The Sharing Bonus rewards you for selling products to new Consultants and helping them make early sales to Customers. Earn 10% on the Personal Sales Volume and Customer Sales Volume of your new personally enrolled Consultant. This bonus is paid on sales in the new Consultant’s enrolment month, up to a maximum of US$100 per newly enrolled Consultant.† IN PRACTICE For example, if you sell 250 SV worth of products to your new personally enrolled Consultant and your new personally enrolled Consultant sells 500 SV worth of products to their personally enrolled Customers in that new Consultant’s enrolment month, you are eligible for the 10% Sharing Bonus on 750 SV. This bonus is paid on CV, which takes into account the PEG Rate and any promos or discounts that may have been redeemed. For illustration purposes only, if the theoretical PEG Rate for Australia at the time this bonus is calculated were 1.40, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical AU PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 750 SV X 1.4 (theoretical AU PEG Rate) X 10% = AU$105. 12 Sharing Bonus. Sell to Newly Enrolled Consultant Newly Enrolled Consultant Sells to Personally Enrolled Customers In the Newly Enrolled Consultant’s Enrolment Month YOU C 250 SV 500 SV You Earn 10% of CV AU$105 SHARING BONUS Must be Active to qualify C
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SHARING BONUS DOUBLER The Sharing Bonus Doubler rewards you for selling products to new Consultants and helping them make early sales to Customers during your Launch Period. During your Launch Period, earn an additional 10% on the Personal Sales Volume and Customer Sales Volume of your new personally enrolled Consultant. This bonus is paid on sales in the new Consultant’s enrolment month, up to a maximum of US$100 per newly enrolled Consultant.† IN PRACTICE For example, if during your Launch Period you sell 250 SV of products to your new personally enrolled Consultant and your new personally enrolled Consultant sells 500 SV of products to Launch Bonuses their personally enrolled Customers in that new Consultant’s enrolment month, you are eligible for the 10% Sharing Bonus Doubler on 750 SV. This bonus is paid on CV, which takes into account the PEG Rate and any promos or discounts that may have been redeemed. For illustration purposes only, if the theoretical PEG Rate for Australia at the time this bonus is calculated were 1.40, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical AU PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 750 SV X 1.4 (theoretical AU PEG Rate) X 10% = AU$105. During Launch Period Sell To Newly Enrolled Consultant Newly Enrolled Consultant Sells To Personally Enrolled Customers In the Newly Enrolled Consultant's Enrolment Month YOU C 250 SV 500 SV You Earn 10% of CV AU$105 SHARING BONUS DOUBLER Must be Active to qualify These bonuses can boost you right from the start. Your Launch Period begins the day you enrol as a Consultant and continues through the next 3 calendar months. SHARING BONUS DOUBLER IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. C 14 †CAP AMOUNT: The Sharing Bonus and Sharing Bonus Doubler are each capped at US$100 per newly enrolled Consultant. For illustration purposes only, if the theoretical PEG Rate for Australia at the time these bonuses are calculated were 1.40, then the cap amount for these bonuses in local currency would be calculated as follows: Cap amount in US$ is multiplied by the theoretical AU PEG Rate. US$100 X 1.40 (theoretical AU PEG Rate) = AU$140.
YOU EARN AU$210 When you advance to the Rank of SENIOR CONSULTANT 1 during your Launch Period YOU SC1 RANK ADVANCEMENT BONUS IS CALCULATED MONTHLY SC1 Rank Advancement Bonus When you reach the Rank of Senior Consultant 1 for the first time during your Launch Period, you will earn a AU$210 SC1 Rank Advancement Bonus. Calculation based on US$150 X 1.40 (theoretical AU PEG Rate) = AU$210. 15
Level Commissions C O N S U LT A N T C O N S U LT A N T 1 C O N S U LT A N T 2 C O N S U LT A N T 3 S E N IO R C O N S U LT A N T 1 S E N IO R C O N S U LT A N T 2 S E N IO R C O N S U LT A N T 3 M A N A G IN G C O N S U LT A N T 1 M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 40 40 40 40 40 40 40 40 40 40 40 40 40 40 150 200 250 300 300 300 300 300 300 300 300 300 300 300 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 LEVEL 1 5% 7% 9% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% LEVEL 2 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% 7% 7% LEVEL 3 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% LEVEL 4 3% 5% 6% 6% 6% 6% 6% 6% 6% LEVEL 5 3% 5% 6% 6% 6% 6% 6% 6% LEVEL 6 3% 4% 5% 5% 5% 5% 5% LEVEL 7 3% 4% 4% 4% 4% 4% 4% LEVEL 8 3% 3% 3% 3% 3% 3% LEVEL 9 3% 3% 3% 3% 3% 3% You earn Level Commissions for building your team and teaching those you sponsor to create strong teams of their own. As an Active Consultant, you are paid a percentage of commissions from the CV of your team’s sales. Your Paid-as Rank determines the percentages you earn and the number of levels on which you are eligible to receive a commission. HOW LEVELS WORK All of the Consultants directly below you in your Placement Tree are your Level 1. Consultants are paid Customers Sales Profit and Personal Sales Bonus on their personally enrolled Customer purchases. Enrollers are not eligible for a Level Commission on their personal Customers. LEVEL COMMISSIONS ARE CALCULATED MONTHLY 16 Build & Grow. PPR SVR GSV MVR
Active Compression 9 8 5 3 7 2 6 1 ORDER MC1 START HERE C1 C3 INACTIVE SC3 MC3 INACTIVE EC3 EC4 MC1 INACTIVE PRESIDENTIAL 4 YOU Active MC1 qualified to earn up to 5 Levels. They are Level 1, so they are paid 10% Active C1 qualified to earn on Level 1. This is Level 2, so they are not eligible and Level 2 is not paid. Active C3 is qualified to earn on only 2 Levels. This is Level 3, so they are not eligible and Level 3 is not paid. Inactive. Through Active Compression, this Level is not qualified and Level 4 rolls up. Because the Consultant below you is inactive, you become Level 4 through Active Compression. As an Active SC3, you are qualified to earn at Level 4 and are paid 3%. Active MC3 qualified to earn on 9 Levels and paid on Level 5 at 6%. Inactive. Through Active Compression, this Level is not qualified and Level 6 rolls up. New Level 6 is an Active EC3 qualified to earn on 9 Levels. They are paid Level 6 at 5%. Active EC4 is paid on Level 7 at 4%. Active MC1 qualifies to earn only up to Level 5. Because this is Level 8, they are not eligible and Level 8 is not paid. Inactive. Through Active Compression, this Level is not qualified and Level 9 rolls up. Active PC is qualified for Level 9 and paid 3%. A process by which CV for Level Commissions skips inactive Consultants and rolls up to the next Active Consultant. IN PRACTICE This example shows how volume could roll up in one Leg of a team. You’re a Senior Consultant 3 at Level 5 above the Consultant who earned the volume. Starting from the bottom of the chart, you see how CV flows up and what happens below and above you. KEY Qualified (Paid) Not Qualified (Not Paid) Inactive (Rolls Up) 17
M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T GENERATION 1 7% 12% 15% 20% 20% 20% 20% GENERATION 2 10% 12% 15% 20% 20% 20% GENERATION 3 10% 12% 15% 20% 20% GENERATION 4 10% 12% 15% 20% GENERATION 5 10% 12% 15% GENERATION 6 10% 12% GENERATION 7 12% CAP PER MATCH $1,000 $2,500 $5,000 $7,500 $10,000 $15,000 $15,000 When you are paid as a Managing Consultant 2 or higher in the month, you can receive a Leadership Match on qualified Generations. The Leadership Match is paid on your qualified Generations' Level Commissions. HOW GENERATIONS WORK Your Generation 1 is the first Consultant in any Leg in your team with a Paid-as Rank of Managing Consultant 1 or higher. A Generation 2 is the next Consultant in that Leg with a Paid-as Rank of Managing Consultant 1 or higher, and so on. LEADERSHIP MATCH IS CALCULATED MONTHLY MONTHLY LEADERSHIP MATCH CAN PAYOUT UP TO A MAXIMUM OF 9% OF MONTHLY GLOBAL CV. • Cap Per Match amount in US$ is multiplied by the theoretical AU PEG Rate. • For example, the Cap Per Match for a Managing Consultant 2 would be US$1,000 X 1.40 (theoretical AU PEG Rate) = AU$1,400. Leadership Match When you reach the Leader level, you’ve shown you truly know what it takes to succeed and have the skills to help mentor and motivate others. Keep cultivating your future leaders and helping them grow and you can earn substantial bonuses for building such a strong team. For illustration purposes only, if the theoretical PEG Rate for Australia at the time this bonus is calculated were 1.40, then the Cap Per Match in local currency would be calculated as follows: 18 Lead.
YOU MANAGING CONSULTANT 3 10% 12% EXECUTIVE CONSULTANT 2 12% MANAGING CONSULTANT 1 12% MANAGING CONSULTANT 3 MANAGING CONSULTANT 3 IN PRACTICE In this example, as a Managing Consultant 3, you earn a 12% Leadership Match on your Generation 1 Consultants and a 10% match on your Generation 2 Consultants. Qualified Generations are based on Paid-as Ranks. You can have multiple Generation 1 Consultants within a Leg. The Leadership Match is paid in addition to any other bonuses and commissions you might already be earning. GENERATION 1 GENERATION 1 GENERATION 2 GENERATION 1 19
When you are paid as an Executive Consultant 1 or higher, you earn shares of our monthly Leadership Pool. This pool is made from 4% of global monthly CV. You receive shares based on your Paid-as Rank. The total pool amount is divided equally by the total number of monthly shares Consultants earn. Leadership Pool SHARES EXECUTIVE CONSULTANT 1 1 EXECUTIVE CONSULTANT 2 3 EXECUTIVE CONSULTANT 3 5 EXECUTIVE CONSULTANT 4 10 PRESIDENTIAL CONSULTANT 20 LEADERSHIP POOL IS CALCULATED MONTHLY Lead. 20
Legal Notices 1. LifeVantage Australia Pty. Ltd is a Direct Sales/Network Marketing company with a Multi-Level Marketing compensation plan that provides flexibility and opportunity for individuals to earn extra income based upon selling products to Customers. 2. The focus of the LifeVantage Compensation Plan is to pay bonuses and commissions to LifeVantage Consultants based upon their product sales and the product sales of LifeVantage Consultants in their personal marketing team to ultimate end using Customers. 3. LifeVantage products are not sold in retail stores and only licensed Consultants in Good Standing are authorized to sell LifeVantage products either directly from their own stock or indirectly through the company’s online shopping cart at www.lifevantage.com. 4. The Consultant Agreement consists of the LifeVantage Compensation Plan, the LifeVantage Consultant Application and Agreement, the LifeVantage Policies and Procedures, the LifeVantage Virtual Office Agreement (Back Office Agreement), and the LifeVantage Privacy Policy and Website Use Agreement. The Consultant Agreement governs the contractual relationship and obligations of each LifeVantage Consultant to LifeVantage. 5. A LifeVantage Consultant may not personally purchase for themselves nor encourage Customers or other Consultants to purchase more inventory than each can personally consume and/or sell to their personal Customers each month. In addition, each LifeVantage Consultant personally agrees that they may not place a new order in any given month unless 70% of all orders from previous months have been sold or consumed through personal/family use. 6. The Consultants sales earnings disclosed are potential gross earnings and not net of other business expenses and not necessarily representative of the actual income, if any, that a Consultant can or will earn through the LifeVantage Compensation Plan. A Consultant's earnings will depend on the individual diligence, work effort, and market conditions. LifeVantage does not guarantee any income or Rank success. 7. For Leadership Match, if after the individual caps per match are applied the monthly Leadership Match payout exceed 9% of monthly global CV, then all monthly Leadership Match earnings will be adjusted down by an equal percentage in order to ensure that the monthly Leadership Match does not exceed 9% of monthly global CV. 21
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Evolve © 2 0 24 L ife V an ta ge C or po ra tio n. A ll rig ht s re se rv ed . 24 0 82 0. 0 4
Evolve COMPENSATION PLAN GUIDE FOR INDEPENDENT LIFEVANTAGE CONSULTANTS NEW ZEALAND Effective 1 November 2024
Welcome 2
activatedLife. It’s complicated. Messy. Beautiful. It goes by fast, and you want to live life to the fullest. But everyday responsibilities, fears, or restrictions can hold you back. You deserve to break free. You deserve to be your best self and live a healthy, happy life on your terms. LifeVantage is here to help. Our products are purposefully designed to activate your body’s ability to create vibrant health, starting at the cellular level. And when you look and feel your best, you’ll want to help others do the same. LifeVantage activates financial wellness with the opportunity to grow a business that can change people’s lives for the better. That’s where Evolve creates possibilities. Evolve is a compensation plan that allows you to work part-time or full-time.* Whether you are looking to simply share life-changing products or wanting to work and grow as a professional mentor and leader, being an Independent LifeVantage® Consultant will positively challenge and reward you. to life IT’S TIME TO LIVE WITH PURPOSE. IT’S TIME TO INSPIRE REMARKABLE. IT’S TIME TO LIVE ACTIVATED. *LifeVantage does not promise the financial success of any Consultant. Your success depends on your skill, fortitude, dedication, and your ability to lead others to emulate these qualities. Nothing in this guide is a representation that you will be financially successful. LifeVantage does not guarantee any income or Rank success. 3
WELCOME 2 KEY TERMS 4-5 THE CONSULTANT PATH 6-7 SHARE Product Pricing Customer Sales Profit Personal Sales Bonus Sharing Bonus 8 9 11 12 LAUNCH BONUSES Sharing Bonus Doubler SC1 Rank Advancement Bonus 14 15 BUILD & GROW Level Comissions 16-17 LEAD Leadership Match Leadership Pool 18-19 20 LEGAL NOTICES 21 ACTIVE You are considered an Active Consultant when your account is in Good Standing and you have met the 150 Sales Volume Requirement in that month, with at least 40 Personal Sales Volume. COMMISSIONABLE VOLUME (CV) Commissionable Volume is the measurement on which most bonuses and commissions are paid. When you earn a percentage of volume, you earn a percentage of a product's CV. The numeric value for CV is typically obtained when Sales Volume is multiplied by the PEG Rate, except in cases where CV has been discounted for any reason. COMPRESSION A process by which CV for Level Commissions skips inactive Consultants and rolls up to the next Active Consultant. CUSTOMER SALES VOLUME (CSV) The Sales Volume originating from your personally enrolled Customers’ orders. DOWNLINE All of the Consultants sponsored into your genealogy are considered part of your downline. ENROLLER The LifeVantage Consultant who enrols a new Customer or Consultant. Also known as the Enrolment Sponsor. ENROLMENT TREE The line of Consultants consecutively linked through Consultant enrolment and not by placement. The Enrolment Tree does not include any Placement Sponsors. GENERATION Consultants in your Enrolment Tree with the Paid-as Rank of Managing Consultant 1 or higher are your Generations. A Generation 1 is the first Consultant in any downline with a Paid-as Rank of Managing Consultant 1 or higher. A Generation 2 is the next Consultant in that Leg with a Paid-as Rank of Managing Consultant 1 or higher, and so on. Table of Contents Key Terms 4
GOOD STANDING Good Standing means you are in compliance with the Consultant Agreement, including payment of any applicable renewal fees. GROUP SALES VOLUME (GSV) Group Sales Volume is the total Sales Volume from you and all the Customers and Consultants in your entire team. LAUNCH PERIOD Your Launch Period including the month you enrol and the following 3 full calendar months. LEG A Leg begins with a Level 1 Consultant and includes all of the Consultants beneath them. You have as many Legs as you have Level 1 Consultants. LEVEL The location a Consultant has in your downline in relation to you. All of the Consultants directly below you in your Placement Tree are your Level 1. Consultants placed directly below your Level 1 Consultants are your Level 2, and so on. MAXIMUM VOLUME RULE (MVR) The maximum amount of GSV from any one Leg or from your own Personal Sales Volume and Customer Sales Volume that can count toward your monthly Rank qualification. PAID-AS RANK Your Paid-as Rank is the Rank for which you qualify each month. Your Paid-as Rank determines many of your bonuses. Your Paid-as Rank may be the same as or lower than your Recognition Rank depending on your monthly qualifications. PEG RATE The foreign currency conversion factor used by LifeVantage to calculate payments to Consultants. Using a PEG Rate allows LifeVantage to normalise payments to Consultants. The PEG Rate is periodically reviewed and set based on recent foreign exchange rates and projected foreign exchange rates. PERSONAL SALES VOLUME (PSV) The Sales Volume originating from your personal account. PLACEMENT SPONSOR If you place a new Consultant directly below you in your downline, you are the Enrolment Sponsor and Placement Sponsor. However, if you place a new Consultant below a downline Consultant in the Placement Tree, that downline Consultant becomes your new enrollee’s Placement Sponsor. PLACEMENT TREE If you are a new Consultant's Enroller, you may place them directly below you in your downline or under any other downline Consultant’s position. This is considered your Placement Tree, also referred to as your downline or team. QUALIFYING SALES VOLUME (QSV) The Sales Volume that counts toward your monthly Rank qualification. RANK ADVANCING When you meet the qualifications to be paid as a Rank higher than your current Recognition Rank, you will “advance” to that higher Rank, and your Recognition Rank will be updated to reflect that new milestone. RECOGNITION RANK Your Recognition Rank is the highest Rank you have achieved along the Consultant Path. Your Recognition Rank is subject to reclassification once per year based on the maintenance requirements for that Rank. SALES VOLUME (SV) The numeric value attributed by LifeVantage to each commissionable product sold and/or purchased. SALES VOLUME REQUIREMENT (SVR) The accumulation of your Customer Sales Volume and your Personal Sales Volume to meet your monthly Paid-as Rank requirement. UPLINE All of the Consultants above you in your Enrolment and/or Placement Tree. 5
Evolve. Share. Build & Grow. Lead. Your path as an Independent LifeVantage Consultant can lead to a world of possibilities. Start by sharing the LifeVantage products that you love with Customers to help them activate wellness and improve their health. The more you share, the more you’ll grow as you find others who want to join you on the path with a business of their own. As you progress along the Consultant Path, your attention will shift to building and leading Consultants on your team who are ready to grow to the next stage of success. At every stage you’ll evolve your earnings, yourself, and your life. HOW IT WORKS You must meet certain volume requirements to stay Active and earn bonuses and commissions. These requirements will change, along with the bonuses and commissions you can qualify for, as you move along the path and earn Rank advancements. As you reach the qualifications for a specific Rank, you will be recognized with your “Recognition Rank” at that level for as long as you remain Active. However, your “Paid-as Rank” will fluctuate with your qualifications from month to month. 6
SHARE People say our products are too good not to share! In the early stages of your business, begin with a strong emphasis on sharing our wellness products by selling to Customers. These sales are the fastest way to build your business and see speedy income. BUILD & GROW By the time you reach Senior Consultant 1, you should begin spending more time finding new people to add to your team. Balance your efforts between selling and sponsoring, which is vital to your continued growth. The larger you grow your team, the more time you will spend building your business and helping your Consultants reach their own goals. C O N S U LT A N T C O N S U LT A N T 1 C O N S U LT A N T 2 C O N S U LT A N T 3 S E N IO R C O N S U LT A N T 1 S E N IO R C O N S U LT A N T 2 S E N IO R C O N S U LT A N T 3 M A N A G IN G C O N S U LT A N T 1 M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 PERSONAL PURCHASE REQUIREMENT 40 40 40 40 40 40 40 40 40 40 40 40 40 40 SALES VOLUME REQUIREMENT 150 200 250 300 300 300 300 300 300 300 300 300 300 300 GROUP SALES VOLUME 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 MAXIMUM VOLUME RULE 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 LEAD Leadership is more than the Rank next to your name. Teach by example how to build a successful LifeVantage business. Acknowledge, encourage, and lift your team members, and together you can enjoy the rewards of your shared success! The Consultant Path Evolve is uniquely designed to help LifeVantage Consultants develop confidence, community, and leadership. Each Rank advancement offers the opportunity to celebrate with increased earning possibilities. 7
EACH LIFEVANTAGE PRODUCT HAS 3 PRICES. 03. CONSULTANT Consultant price is lower than the One-time Retail price and the Subscription Price, regardless of the order type, and represents the lowest price available. 02. SUBSCRIPTION Subscription price is a discount from One-time Retail price. Products purchased by Customers on Subscription are eligible for the discount. 01. ONE-TIME RETAIL The advertised Customer price for all products, whether purchased online or directly from you. Product Pricing 8
Customer Sales Income allows you to earn commissions on every order. Here's how it works: When your Customers order LifeVantage products, you earn the difference between the price your Customer paid and the Consultant price. IN PRACTICE In these examples, 2 Customers are ordering the same set of products. The Customer on the left purchases the products at the full GST-exclusive One Time Retail price of NZ$152. The GST-exclusive Consultant price for that order is NZ$121.60. So, you earn Customer Sales Income of NZ$30.40. The Customer on the right orders the same products on a Subscription order for the GST-exclusive Subscription price of NZ$136.80. The GST-exclusive Consultant price for that order is NZ$121.60. So, you earn Customer Sales Income of NZ$15.20. . CUSTOMER SALES INCOME IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. Sharing your excitement about LifeVantage and selling products to Customers is at the heart of being a Consultant. In addition to Customer Sales Income, you can earn on total monthly product sales with the Personal Sales Bonus. Customer Sales Income Share. Must be Active to qualify RETAIL NZ$152 PURCHASE PRICE NZ$30.40 CUSTOMER SALES INCOME subtract NZ$121.60 CONSULTANT PRICE SUB NZ$136.80 PURCHASE PRICE NZ$15.20 CUSTOMER SALES INCOME subtract NZ$121.60 CONSULTANT PRICE It is important to note that while the published prices may be inclusive of Goods and Services Tax (GST), all bonuses and/or commissions are paid on GST-exclusive values only. 9
Customers may cancel their Subscription to opt out of the program at any time. Subscription orders come with rewards for all! Learn more about the LifeVantage Rewards Circle loyalty program at LifeVantage.com Subscribe. Save. Get Rewards. 10
Must be Active to qualify CUSTOMER SV BONUS TIER RECOGNITION TITLE 500 – 999.99 5% ONYX 1,000 – 1,999.99 10% EMERALD 2,000 – 3,999.99 15% SAPPHIRE 4,000+ 20% DIAMOND Personal Sales Bonus The Personal Sales Bonus rewards you on your personal Customer sales. When your personal Customer sales total 500 SV or more in a single month, you become eligible for an additional Personal Sales Bonus. The Bonus is paid on a percentage of CV. When you reach 500 Customer Sales Volume in a single month, you will be recognized with a special title before your Rank, starting with Onyx at 500 SV then changing to Emerald at 1000 SV, Sapphire at 2000 SV, and Diamond at 4000 SV and higher. IN PRACTICE For example, if your Customers order 2200 SV worth of products in the month, you are eligible for the 15% bonus tier. This bonus is paid on CV which takes into account the PEG Rate and any promos or discounts Customers may have redeemed. For illustration purposes only, if the theoretical PEG Rate for New Zealand at the time this bonus is calculated were 1.52, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical NZ PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 2200 SV X 1.52 (theoretical NZ PEG Rate) X 15% = NZ$501.60. PERSONAL SALES BONUS IS CALCULATED MONTHLY Share. 11 2200 SV SAPPHIRE NZ$501.60 PERSONAL SALES BONUS you earn 15% of CV and the title of RETAIL SUB YOU
SHARING BONUS IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. The Sharing Bonus rewards you for selling products to new Consultants and helping them make early sales to Customers. Earn 10% on the Personal Sales Volume and Customer Sales Volume of your new personally enrolled Consultant. This bonus is paid on sales in the new Consultant’s enrolment month, up to a maximum of US$100 per newly enrolled Consultant.† IN PRACTICE For example, if you sell 250 SV worth of products to your new personally enrolled Consultant and your new personally enrolled Consultant sells 500 SV worth of products to their personally enrolled Customers in that new Consultant’s enrolment month, you are eligible for the 10% Sharing Bonus on 750 SV. This bonus is paid on CV, which takes into account the PEG Rate and any promos or discounts that may have been redeemed. For illustration purposes only, if the theoretical PEG Rate for New Zealand at the time this bonus is calculated were 1.52, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical NZ PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 750 SV X 1.52 (theoretical NZ PEG Rate) X 10% = NZ$114. 12 Sharing Bonus. Sell to Newly Enrolled Consultant Newly Enrolled Consultant Sells to Personally Enrolled Customers In the Newly Enrolled Consultant’s Enrolment Month YOU C 250 SV 500 SV You Earn 10% of CV NZ$114 SHARING BONUS Must be Active to qualify C
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SHARING BONUS DOUBLER The Sharing Bonus Doubler rewards you for selling products to new Consultants and helping them make early sales to Customers during your Launch Period. During your Launch Period, earn an additional 10% on the Personal Sales Volume and Customer Sales Volume of your new personally enrolled Consultant. This bonus is paid on sales in the new Consultant’s enrolment month, up to a maximum of US$100 per newly enrolled Consultant.† IN PRACTICE For example, if during your Launch Period you sell 250 SV of products to your new personally enrolled Consultant and your new personally enrolled Consultant sells 500 SV of products to Launch Bonuses their personally enrolled Customers in that new Consultant’s enrolment month, you are eligible for the 10% Sharing Bonus Doubler on 750 SV. This bonus is paid on CV, which takes into account the PEG Rate and any promos or discounts that may have been redeemed. For illustration purposes only, if the theoretical PEG Rate for New Zealand at the time this bonus is calculated were 1.52, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical NZ PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 750 SV X 1.52 (theoretical NZ PEG Rate) X 10% = NZ$114. During Launch Period Sell To Newly Enrolled Consultant Newly Enrolled Consultant Sells To Personally Enrolled Customers In the Newly Enrolled Consultant's Enrolment Month YOU C 250 SV 500 SV You Earn 10% of CV NZ$114 SHARING BONUS DOUBLER Must be Active to qualify These bonuses can boost you right from the start. Your Launch Period begins the day you enrol as a Consultant and continues through the next 3 calendar months. SHARING BONUS DOUBLER IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. C 14 †CAP AMOUNT: The Sharing Bonus and Sharing Bonus Doubler are each capped at US$100 per newly enrolled Consultant. For illustration purposes only, if the theoretical PEG Rate for New Zealand at the time these bonuses are calculated were 1.52, then the cap amount for these bonuses in local currency would be calculated as follows: Cap amount in US$ is multiplied by the theoretical NZ PEG Rate. US$100 X 1.52 (theoretical NZ PEG Rate) = NZ$152.
YOU EARN NZ$228 When you advance to the Rank of SENIOR CONSULTANT 1 during your Launch Period YOU SC1 RANK ADVANCEMENT BONUS IS CALCULATED MONTHLY SC1 Rank Advancement Bonus When you reach the Rank of Senior Consultant 1 for the first time during your Launch Period, you will earn a NZ$228 SC1 Rank Advancement Bonus. Calculation based on US$150 X 1.52 (theoretical NZ PEG Rate) = NZ$228. 15
Level Commissions C O N S U LT A N T C O N S U LT A N T 1 C O N S U LT A N T 2 C O N S U LT A N T 3 S E N IO R C O N S U LT A N T 1 S E N IO R C O N S U LT A N T 2 S E N IO R C O N S U LT A N T 3 M A N A G IN G C O N S U LT A N T 1 M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 40 40 40 40 40 40 40 40 40 40 40 40 40 40 150 200 250 300 300 300 300 300 300 300 300 300 300 300 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 LEVEL 1 5% 7% 9% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% LEVEL 2 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% 7% 7% LEVEL 3 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% LEVEL 4 3% 5% 6% 6% 6% 6% 6% 6% 6% LEVEL 5 3% 5% 6% 6% 6% 6% 6% 6% LEVEL 6 3% 4% 5% 5% 5% 5% 5% LEVEL 7 3% 4% 4% 4% 4% 4% 4% LEVEL 8 3% 3% 3% 3% 3% 3% LEVEL 9 3% 3% 3% 3% 3% 3% You earn Level Commissions for building your team and teaching those you sponsor to create strong teams of their own. As an Active Consultant, you are paid a percentage of commissions from the CV of your team’s sales. Your Paid-as Rank determines the percentages you earn and the number of levels on which you are eligible to receive a commission. HOW LEVELS WORK All of the Consultants directly below you in your Placement Tree are your Level 1. Consultants are paid Customers Sales Profit and Personal Sales Bonus on their personally enrolled Customer purchases. Enrollers are not eligible for a Level Commission on their personal Customers. LEVEL COMMISSIONS ARE CALCULATED MONTHLY 16 Build & Grow. PPR SVR GSV MVR
Active Compression 9 8 5 3 7 2 6 1 ORDER MC1 START HERE C1 C3 INACTIVE SC3 MC3 INACTIVE EC3 EC4 MC1 INACTIVE PRESIDENTIAL 4 YOU Active MC1 qualified to earn up to 5 Levels. They are Level 1, so they are paid 10% Active C1 qualified to earn on Level 1. This is Level 2, so they are not eligible and Level 2 is not paid. Active C3 is qualified to earn on only 2 Levels. This is Level 3, so they are not eligible and Level 3 is not paid. Inactive. Through Active Compression, this Level is not qualified and Level 4 rolls up. Because the Consultant below you is inactive, you become Level 4 through Active Compression. As an Active SC3, you are qualified to earn at Level 4 and are paid 3%. Active MC3 qualified to earn on 9 Levels and paid on Level 5 at 6%. Inactive. Through Active Compression, this Level is not qualified and Level 6 rolls up. New Level 6 is an Active EC3 qualified to earn on 9 Levels. They are paid Level 6 at 5%. Active EC4 is paid on Level 7 at 4%. Active MC1 qualifies to earn only up to Level 5. Because this is Level 8, they are not eligible and Level 8 is not paid. Inactive. Through Active Compression, this Level is not qualified and Level 9 rolls up. Active PC is qualified for Level 9 and paid 3%. A process by which CV for Level Commissions skips inactive Consultants and rolls up to the next Active Consultant. IN PRACTICE This example shows how volume could roll up in one Leg of a team. You’re a Senior Consultant 3 at Level 5 above the Consultant who earned the volume. Starting from the bottom of the chart, you see how CV flows up and what happens below and above you. KEY Qualified (Paid) Not Qualified (Not Paid) Inactive (Rolls Up) 17
M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T GENERATION 1 7% 12% 15% 20% 20% 20% 20% GENERATION 2 10% 12% 15% 20% 20% 20% GENERATION 3 10% 12% 15% 20% 20% GENERATION 4 10% 12% 15% 20% GENERATION 5 10% 12% 15% GENERATION 6 10% 12% GENERATION 7 12% CAP PER MATCH $1,000 $2,500 $5,000 $7,500 $10,000 $15,000 $15,000 When you are paid as a Managing Consultant 2 or higher in the month, you can receive a Leadership Match on qualified Generations. The Leadership Match is paid on your qualified Generations' Level Commissions HOW GENERATIONS WORK Your Generation 1 is the first Consultant in any Leg in your team with a Paid-as Rank of Managing Consultant 1 or higher. A Generation 2 is the next Consultant in that Leg with a Paid-as Rank of Managing Consultant 1 or higher, and so on. LEADERSHIP MATCH IS CALCULATED MONTHLY MONTHLY LEADERSHIP MATCH CAN PAYOUT UP TO A MAXIMUM OF 9% OF MONTHLY GLOBAL CV. • Cap Per Match amount in US$ is multiplied by the theoretical NZ PEG Rate. • For example, the Cap Per Match for a Managing Consultant 2 would be US$1,000 X 1.52 (theoretical NZ PEG Rate) = NZ$1,520. Leadership Match When you reach the Leader level, you’ve shown you truly know what it takes to succeed and have the skills to help mentor and motivate others. Keep cultivating your future leaders and helping them grow and you can earn substantial bonuses for building such a strong team. For illustration purposes only, if the theoretical PEG Rate for New Zealand at the time this bonus is calculated were 1.52, then the Cap Per Match in local currency would be calculated as follows: 18 Lead.
YOU MANAGING CONSULTANT 3 10% 12% EXECUTIVE CONSULTANT 2 12% MANAGING CONSULTANT 1 12% MANAGING CONSULTANT 3 MANAGING CONSULTANT 3 IN PRACTICE In this example, as a Managing Consultant 3, you earn a 12% Leadership Match on your Generation 1 Consultants and a 10% match on your Generation 2 Consultants. Qualified Generations are based on Paid-as Ranks. You can have multiple Generation 1 Consultants within a Leg. The Leadership Match is paid in addition to any other bonuses and commissions you might already be earning. GENERATION 1 GENERATION 1 GENERATION 2 GENERATION 1 19
When you are paid as an Executive Consultant 1 or higher, you earn shares of our monthly Leadership Pool. This pool is made from 4% of global monthly CV. You receive shares based on your Paid-as Rank. The total pool amount is divided equally by the total number of monthly shares Consultants earn. Leadership Pool SHARES EXECUTIVE CONSULTANT 1 1 EXECUTIVE CONSULTANT 2 3 EXECUTIVE CONSULTANT 3 5 EXECUTIVE CONSULTANT 4 10 PRESIDENTIAL CONSULTANT 20 LEADERSHIP POOL IS CALCULATED MONTHLY Lead. 20
Legal Notices 1. LifeVantage New Zealand Limited is a Direct Sales/Network Marketing company with a Multi-Level Marketing compensation plan that provides flexibility and opportunity for individuals to earn extra income based upon selling products to Customers. 2. The focus of the LifeVantage Compensation Plan is to pay bonuses and commissions to LifeVantage Consultants based upon their product sales and the product sales of LifeVantage Consultants in their personal marketing team to ultimate end using Customers. 3. LifeVantage products are not sold in retail stores and only licensed Consultants in Good Standing are authorized to sell LifeVantage products either directly from their own stock or indirectly through the company’s online shopping cart at www.lifevantage.com. 4. The Consultant Agreement consists of the LifeVantage Compensation Plan, the LifeVantage Consultant Application and Agreement, the LifeVantage Policies and Procedures, the LifeVantage Virtual Office Agreement (Back Office Agreement), and the LifeVantage Privacy Policy and Website Use Agreement. The Consultant Agreement governs the contractual relationship and obligations of each LifeVantage Consultant to LifeVantage. 5. A LifeVantage Consultant may not personally purchase for themselves nor encourage Customers or other Consultants to purchase more inventory than each can personally consume and/or sell to their personal Customers each month. In addition, each LifeVantage Consultant personally agrees that they may not place a new order in any given month unless 70% of all orders from previous months have been sold or consumed through personal/family use. 6. The Consultants sales earnings disclosed are potential gross earnings and not net of other business expenses and not necessarily representative of the actual income, if any, that a Consultant can or will earn through the LifeVantage Compensation Plan. A Consultant's earnings will depend on the individual diligence, work effort, and market conditions. LifeVantage does not guarantee any income or Rank success. 7. For Leadership Match, if after the individual caps per match are applied the monthly Leadership Match payout exceed 9% of monthly global CV, then all monthly Leadership Match earnings will be adjusted down by an equal percentage in order to ensure that the monthly Leadership Match does not exceed 9% of monthly global CV. 21
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Evolve © 2 0 24 L ife V an ta ge C or po ra tio n. A ll rig ht s re se rv ed . 24 0 82 0. 0 4
Evolve ライフバンテージ ライフバンテージの独立コンサルタント向け報酬プランガイド 日本向け 発効日 ______________ エボルブ ブックレット 2024年11月1日
Welcome 2
activated人生は、複雑で厄介ですが、それでいて美しい ものです。あっという間に過ぎていくので、一瞬 一瞬を充実させたいと願うものの、日々の生活 やその責任感から、なかなか新たな一歩が踏み 出せないかもしれません。でも私たちは、もっと 自由になって、健やかで幸せな人生を送ってい いのです。 ここにライフバンテージの存在意義がありま す。 当社の製品は、ニュートリゲノミクスによって、 身体が本来持っている、生き生きとした健康を つくり出す力を活用できるように開発されてい ます。 心身ともに最高の自分になったら、その方法をシ ェアしてみませんか？ ライフバンテージは人々の 生活をより良く変える可能性のあるビジネスを、 育てていく機会を提供し、経済面での健康をア クティベートさせます。 「エボルブ」は、そうした可能性を生み出しま す。人生を変える製品を他者と分かち合いたい 方も、プロフェッショナルなメンターやリーダー として成長したい方も、ライフバンテージの独 立コンサルタントとして積極的に挑戦すること で報酬を得ることができます。* to life アクティベートされた人生へようこそ 今こそ、目的のある人生を歩み、 人々の心を奮い立たせ、 人生をアクティベートさせる時です。 *ライフバンテージは、コンサルタントの経済的成功を約束するものではありません。あなたの成功は、あなたのスキルや努力、献身、そして他者があなたのそうした資質を見習うよう指導する能力 にかかっています。本ガイドにおけるいかなる記載も、あなたが経済的に成功を収めることを表明するものではありません。ライフバンテージは、いかなる収入やランク面における成功をも保証い たしません。ライフバンテージの年間平均収入開示書は会員専用ウェブサイト（バックオフィス）に常時掲載されています。 3
WELCOME（ようこそ！） 2 用語集 4-5 コンサルタント ランク マップ 6-7 伝える 3段階の価格設定 カスタマー セールス ボーナス パーソナル セールス ボーナス シェア ボーナス 8 9 11 12 スタート ボーナス ダブルシェア ボーナス SC1 ランクアップ ボーナス 14 15 手伝う・育成 レベル ボーナス 16-17 貢献 リーダーシップ マッチ リーダーシップ プール 18-19 20 エボルブ パークスプログラム グロース サミット ランク ギフト マイライフベンチャー 21 22 23 注意事項 24 アクティブ 良好な会員資格を維持しており、該当月の セールス ボリュームが少なくとも150SVR＊以 上（うち最低40PSV＊は自己購入）ある場合 に、アクティブ コンサルタントとみなされます。 ＊SVRおよびPSVの詳細は次ページをご参照 ください。 良好な会員資格 良好な会員資格とは、更新料の支払いを含 め、あなたがコンサルタント契約を遵守してい ることを意味します。 紹介者 新たなカスタマーやコンサルタントを登録し たライフバンテージ コンサルタントを意味しま す。 直上位者 あなたのダウンライン組織において、あなた の直接紹介の新規コンサルタントを自身の直 下に配置した場合、あなたは紹介者および直 上位者となります。但し、プレイスメント ツリー においてダウンラインのコンサルタントの下に新 規コンサルタントを配置した場合、ダウンライン の当該コンサルタントが新規コンサルタント の直上位者となります。 レッグ レッグは、レベル1のコンサルタントから始ま り、その下に属する全てのコンサルタントを含 みます（カスタマーを含む）。レベル1のコン サルタントの数だけレッグが存在します。 レベル ダウンライン組織において、あなたに対する コンサルタントの位置づけを意味します。あ なたのレベル1コンサルタントの直下に配置 されたコンサルタントはあなたのレベル2に属 し、以下同様となります。 紹介者ツリー コンサルタントの配置登録（プレイスメント） ではなく、紹介者つながりのコンサルタント の組織図を示します。 プレイスメント ツリー あなたが新規コンサルタントの紹介者となっ た場合は、彼らをあなたの直下、または他のダ ウンラインのコンサルタントの下に配置する ことができます。この直上位者つながりの組 織図はプレイスメント ツリーとよばれ、あなた のダウンラインまたはチームとみなされます。 目次 用語集 4
アップライン 紹介者ツリーやプレイスメント ツリーにおい てあなたの上に位置する全てのコンサルタン トを意味します。 ダウンライン あなたの組織図内の全てのコンサルタントが、 あなたのダウンラインの一員とみなされます。 世代 紹介者ツリーにおいて、マネージング コンサル タント1以上の報酬資格ランクを持つコンサル タントを意味します。第1世代とは、ダウンライ ンにおいてマネージング コンサルタント1以上 のランクを持つ最初のコンサルタントを意味 します。第２世代とは、そのレッグにおいてマ ネージング コンサルタント1以上の報酬資格ラ ンクを持つ次のコンサルタントを意味し、以下 同様となります。 セールス ボリューム（SV） 販売、および購入された製品のうち、コミッシ ョンの対象となる製品に与えられた数値を意 味します。 パーソナル セールス ボリューム（PSV） パーソナル セールス ボリュームとは、自己購入に よるボリュームを意味します。 カスタマー セールス ボリューム（CSV） 直接紹介したカスタマーの注文に伴い生じた セールス ボリュームを意味します。 セールスボリューム要件（SVR） 報酬資格ランクの要件を満たすための、月毎 のパーソナル セールス ボリューム（PSV）およ びカスタマー セールス ボリューム（CSV）の合 計を意味します。 グループ セールス ボリューム（GSV） グループ セールス ボリュームとは、あなたとあな たのダウンライン組織の全てのコンサルタントに よるセールス ボリュームの合計です。 上限ボリュームルール（MVR） 1つのレッグまたはあなた自身のセールス ボリ ュームから得られるGSVのうち、該当月のラン ク資格計算にカウントされる最大のセールス ボリューム数（上限値）を意味します。 資格認定 セールス ボリューム（QSV） 毎月のランク計算に、カウントできるセールス ボリュームを意味します。 コミッション ボリューム（CV） コミッション ボリューム（コミッションの対象と なるボリューム）とは、ボーナスやコミッション が支払われる際の計算に使用される数字で す。製品にはそれぞれCV（SV×当社の指定す る通貨換算因数）が割り当てられ、そのCVを もとにコミッションが計算されます。「1SVに 相当する金額（円）」は、会員専用ウェブサイト （バックオフィス）に常時掲載されています。 表彰ランク 表彰ランクは、コンサルタント ランク マッ プで達成した最高ランクを意味します。表彰 ランクは、表彰ランクの維持要件にもとづ き、12ヵ月に一度、調整されます。 報酬資格ランク 報酬資格ランクとは、あなたが月毎に獲得す るランクを意味します。報酬資格ランクは、毎 月の資格に応じて表彰ランクと同等またはそ れ以下になる場合があります。 ランク昇格 現在の表彰ランクよりも高い報酬資格ランク の要件を達成した場合、あなたはそのランク に昇格し（ランクアップ）、あなたの表彰ラン クは更新されます。 スタート期間 スタート期間とは、あなたが登録した月とその翌 月から３ヶ月間を意味します。 コンプレッション コンプレッションとは、「レベル ボーナス」のボ ーナス計算において、アクティブでないコンサ ルタントをスキップして、次のボーナス獲得条 件を満たしているアクティブなコンサルタント にボーナスをお支払するプロセスを意味しま す。 5
Evolve. 伝える・手伝う&育成・貢献 ライフバンテージの独立コンサルタントとしてのあなたの 道のりは、あなたを可能性の世界へと導きます。まずは、 お気に入りのライフバンテージ製品をカスタマーにお伝 えし、彼らのウェルネスや健康をサポートすることから始め ましょう。シェアすればするほど、あなたと共に自らビジネ スに取り組みたいと願う仲間が現れ、その仲間のビジネ スを手伝うことにより、あなたは更なる成長を遂げること ができるでしょう。 ランクアップされるにつれ、あなたの関心は、チーム内の新 たな成功のステージに進む準備のできた、コンサルタント を育成し指導すること、さらにライフバンテージのビジョン をより多くの方に広めることへと移行するでしょう。いず れのステージにおいても、自分自身、自らの収入、そして あなたの人生を進化させるでしょう。 ランク認定の流れ アクティブな状態を維持し、ボーナスを獲得するには、一 定のボリューム要件を満たす必要があります。これらの 要件はランクが上がるにつれて変化し、獲得できるボー ナスもそれに伴い変化していきます。 特定のランクに到達すると、あなたがアクティブな状態を 維持する限りは当該レベルの「表彰ランク」に認定され ます。但し、「報酬資格ランク」はその月毎のあなたの資 格に応じて変動します。 6
伝える ライフバンテージの製品は とても魅力的であり、シェアせずには いられないでしょう。ビジネスの初期 段階においては、ライフバンテージの 製品をカスタマーにお伝えすることに 注力してください。そうした活動こそ が、自らのビジネスを構築し、より早く 収入を得るための方法です。 手伝う・育成 シニア コンサルタント 1 に到達する頃に は、新たなチームメンバー探しにより多くの時間を費やすよ うになるでしょう。継続的な成長のためには、製品の紹介と スポンサリングをバランスよく行うことが必須となります。 チームの規模が大きくなればなるほど、あなたは自らのビジ ネスの構築やコンサルタントのビジネスを手伝うこと、チー ムメンバーを育成することにより多くの時間を割くことにな るでしょう。 貢献 リーダーシップとは、名前の横に記載される ランク以上に価値あるものです。ライフバンテージの ビジョンをより多くの方に伝え、広めることで、あな たとチームメンバーをより大きな可能性へと導いてく ださい。そして、チームメンバーを認め、励まし、飛躍 させ、共に成功の喜びを分かち合いましょう。 コンサルタント ランク マップ 「エボルブ」は、ライフバンテージのコンサルタントが自信をもって、コミュニティとリーダーシップを育むことができるよう 独自に設計されています。ランクが上がるごとに、より多くの収入を得る可能性を手にすることができます。 C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 自己購入要件（PSV） 40 40 40 40 40 40 40 40 40 40 40 40 40 40 セールスボリューム要件 （SVR） 150 200 250 300 300 300 300 300 300 300 300 300 300 300 グループセールス ボリューム（GSV） 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 上限ボリュームルール （MVR） 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 コ ン サ ル タ ン ト コ ン サ ル タ ン ト １ コ ン サ ル タ ン ト ２ コ ン サ ル タ ン ト ３ シ ニ ア コ ン サ ル タ ン ト １ シ ニ ア コ ン サ ル タ ン ト ２ シ ニ ア コ ン サ ル タ ン ト ３ マ ネ ー ジ ン グ コ ン サ ル タ ン ト １ マ ネ ー ジ ン グ コ ン サ ル タ ン ト ２ マ ネ ー ジ ン グ コ ン サ ル タ ン ト ３ エ グ ゼ ク テ ィ ブ コ ン サ ル タ ン ト １ エ グ ゼ ク テ ィ ブ コ ン サ ル タ ン ト ２ エ グ ゼ ク テ ィ ブ コ ン サ ル タ ン ト ３ エ グ ゼ ク テ ィ ブ コ ン サ ル タ ン ト ４ プ レ ジ デ ン シ ャ ル コ ン サ ル タ ン ト 7
ライフバンテージの各製品は、3つ の価格帯に分類されています。 03. コンサルタント価格 ライフバンテージ コンサルタントは、 注文の種類を問わず、「標準希望小売 価格/カスタマースポット注文価格」の 約20%割引の最安値で購入すること ができます。 02. カスタマー定期注文価格 カスタマー定期注文価格は、「標準希 望小売価格/カスタマースポット注文価 格」から約10％割引となります。 01. 標準希望小売価格/カスタマース ポット注文価格 ライフバンテージの公式ウェブサイト 経由で、あるいはコンサルタントを通し てご購入いただける製品の標準希望 小売価格です。 3段階の価格設定 8
「カスタマー セールス ボーナス」により、あなたの直接紹介のカスタマーが注 文をするごとに、以下の仕組みでボーナスを獲得することができます。カス タマーがライフバンテージの製品を注文すると、カスタマーが支払った製 品価格（税抜）と、「コンサルタント価格（税抜）」との差額＊があなたに支払 われます。コンサルタント価格は、「標準希望小売価格/カスタマースポット 注文価格」の約20%割引となります。コンサルタントには、最も安い価格 が適用されます。＊カスタマーが割引を受けている場合、割引分を差し引いた、実際の 支払額との差額分がお支払されます。 計算例 例として、2人のカスタマーが同じ製品を注文したとします。右図にお いて、カスタマー①は「標準希望小売価格/カスタマースポット注文価 格」の12,000円で製品を購入したとします。該当製品の「コンサルタ ント価格」は9,600円とします。この場合、あなたは2,400円の「カス タマー セールス ボーナス」を獲得することになります。カスタマー②は、同 じ製品を「カスタマー定期注文価格」である10,800円で定期注文した とします。該当製品のコンサルタント価格は9,600円とします。この場 合、あなたは1,200円の「カスタマー セールス ボーナス」を獲得すること になります。 「カスタマー セールス ボーナス」：週払い スポット 注文 定期 注文 2,400円 カスタマーセールス ボーナス 1,200円 カスタマー セールス ボーナス 12,000円 購入金額 9,600円 コンサルタント価格 10,800円 購入金額 9,600円 コンサルタント価格 ライフバンテージの魅力をシェアし、カスタマーに製品を流通させ ることが、コンサルタントとしての活動の原点となります。「カスタマ ー セールス ボーナス」に加え、「パーソナル セールス ボーナス」に より毎月のカスタマー セールス ボリュームの最大20%をボーナスと して獲得することができます。 カスタマー セールス ボーナス 伝える ◆「カスタマー セールス ボーナス」を獲得するためには、紹介者はボーナス獲得月に150 SVR（うち最低40 PSVは自己購入）の要件を満たしている必要があります。 ◆紹介者が150 SVRを満たした段階で、該当月のボーナスが計算されます。お支払するボーナスがある場合には、月曜日～日曜日（アメリカ時間）を1週間として、1週間分まとめて翌週の金曜日にお支 払をします。 Share. カスタマー① カスタマー② ※価格は税抜です。 ※「1SVに相当する金額（円）」を120円としてボーナス計算をしています。 9
カスタマーはいつでも定期注文を解約することができます。 注文がリピートされることで、「パーソナル セールス ボーナス」を定期的に得やすくなります。また、シ ンプルな手順でカスタマーのもとに製品が毎月 届けられます。 カスタマーに対し、よりお手頃な価格や、ライフ バンテージのリワードサークル（ポイントプログ ラム）などの嬉しい特典を案内できるという利点 があります。 ライフバンテージ社からも、ご登録いただいたカ スタマーの皆さまに向けて、新製品やプロモーシ ョンをご案内させていただきます。 1. 2. 3. 「カスタマー定期注文 価格」の3つのメリット 10
Share. カスタマー セールス ボリューム合計（CSV） ボーナス ％ 表彰タイトル 500 – 999.99 5% オニキス 1,000 – 1,999.99 10% エメラルド 2,000 – 3,999.99 15% サファイア 4,000+ 20% ダイヤモンド パーソナル セールス ボーナス 「パーソナル セールス ボーナス」として、あなたの直接紹介のカスタマ ーのボリューム合計に応じた、ボーナスが支払われます。1ヶ月の直接 紹介のカスタマーのボリューム合計が500 CSV以上の場合、「カスタ マー セールス ボーナス」に加えて、「パーソナル セールス ボーナス」を 獲得できます。ボーナスはコミッション ボリューム（CV）にもとづき支払 われます。 1ヶ月のボリューム合計が2,000 CSVに達すると、サファイア コンサルタ ントとして認定されます。1ヶ月のボリューム合計が4,000 CSVに達する と、ダイヤモンド コンサルタントとして認定されます。これらの認定資格は 表彰の際に使用されます。 計算例 例えば、あなたの直接紹介のカスタマーが2,200 CSV相当の製品 を注文した月において、あなたは15%の「パーソナル セールス ボー ナス」に加えて「サファイア コンサルタント」の認定を獲得すること ができます。 ボーナスの計算方法は以下の通りです。 「パーソナル セールス ボーナス」は、毎月末締め（月払い） で計算され、翌月15日にお支払となります。 伝える ※価格はすべて税抜で記載されています。 ※ 「1SVに相当する金額（円）」を120円とし てボーナス計算をしています。 合計 2,200 CSV 11 「パーソナル セールス ボーナス」： 月払い 「パーソナル セールス ボーナス」を獲得するためには、紹介 者はボーナス獲得月に150 SVR（うち最低40 PSVは自己購 入）の要件を満たしている必要があります。 スポット 注文 定期 注文 あなた パーソナル セールス ボーナス 2,200 CSV×120「1SVに相当する金額（円）」×15％ ＝39,600円
「シェア ボーナス」： 週払い ◆「シェア ボーナス」を獲得するためには、紹介者はボーナス獲得月に150 SVR（うち最低40 PSVは自己購 入）の要件を満たしている必要があります。 ◆紹介者が150 SVRを満たした段階で、該当月のボーナスが計算されます。お支払するボーナスがある場合には、 月曜日～日曜日（アメリカ時間）を1週間として、1週間分まとめて翌週の金曜日にお支払をします。 シェア ボーナスの上限は新規コンサルタント1組につき、 12,000円（税別）です。 シェア ボーナスは、あなたが直接紹介した新規コンサルタントと、 その新規コンサルタントが直接紹介したカスタマーの、新規登録月 内の製品ボリュームに対して、あなたに支払われるボーナスです。 あなたが直接紹介した新規コンサルタントと、その新規コンサルタントが直接紹 介したカスタマーの製品ボリュームの10％をボーナスとして獲得できます。 このボーナスは、新規コンサルタントの登録月に、新規コンサルタント1組につ き、12,000円（税別）を上限に支払われます。 例 あなたが直接紹介した新規コンサルタントが登録月内に250SVの製品を購入 し、さらに新規コンサルタントが直接紹介した新規カスタマーが500SVの製品を 購入した場合、あなたは750SVの10%に相当するシェア ボーナスを獲得する資格 を得ることができます。このボーナスは、プロモーションまたは割引利用後のCV に対して支払われます。 Sharing Bonus. あなたが新規コンサルタントを直接紹介する。 直接紹介した新規コンサルタントが 新規カスタマーを直接紹介する。 新規コンサルタントの登録月内 あなた C C 250SVの注文 500SVの注文 750SV分の 10% を獲得 9,000円（税別） シェア ボーナス ※アクティブであることが条件です。 シェア ボーナス ※価格は税別です。 ※「1SVに相当する金額（円）」を120円としてボーナス計算をしています。 12
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ダブルシェア ボーナス ダブルシェア ボーナスは、あなたのスタート期間中、あ なたが直接紹介した新規コンサルタントと、その新規 コンサルタントが直接紹介したカスタマーの、新規登 録月内の製品ボリュームに対して支払われるボーナス です。 スタート期間中、あなたが直接紹介した新規コンサル タントと、その新規コンサルタントが直接紹介したカ スタマーの製品ボリュームの10％をボーナスとして獲 得できます。 例 あなたのスタート期間中、直接紹介した新規コンサ ルタントが登録月内に250SVの製品を購入し、さら にその新規コンサルタントが直接紹介したカスタマー が500SVの製品を購入した場合、あなたは750SVの 10%に相当するダブルシェア ボーナスを獲得する資格 を得ることができます。このボーナスは、プロモーショ ンまたは割引利用後のCVに対して支払われます。 Launch Bonuses スタート期間中の新規コンサルタントが、 新規コンサルタントを直接紹介する。 直接紹介した新規コンサルタントが 新規カスタマーを直接紹介する。 新規コンサルタントの登録月内 あなた C C 250SVの注文 500SVの注文 750SV分の 10% を獲得 9,000円（税別） ダブルシェア ボーナス ※アクティブであることが条件です。 スタート ボーナスは、ビジネスを始めたばかりのあなたを強力に後押しするボーナス。 スタート期間は、あなたがコンサルタントとして登録した月とその翌月から３ヶ月間を指し ます。 ダブルシェア ボーナスは、新規コンサルタント1組につき 12,000円（税別）が上限です。 「ダブルシェア ボーナス」：週払い ◆「ダブルシェア ボーナス」を獲得するためには、紹介者はボーナス獲得月に150 SVR（うち最低40 PSVは自己購入）の要件を満たしている必 要があります。 ◆さらに、自身が500SV以上で新規登録するか、もしくは500SV以上の自己購入月があることが条件です。（過去に1回以上500PSV購入月要） ※ボーナス対象となる新規登録者の登録完了前に、自身が500SVの要件を満たしている必要があります。 ◆紹介者が150 SVRを満たした段階で、該当月のボーナスが計算されます。お支払するボーナスがある場合には、月曜日～日曜日（アメリカ時間） を1週間として、1週間分まとめて翌週の金曜日にお支払をします。 スタート ボーナス このボーナスは直接紹介した新規コンサルタントの 登録月内に、新規コンサルタント1組につき12,000円 （税別）を上限に支払われます。 ※価格は税別です。 ※「1SVに相当する金額（円）」を120円としてボーナス計算をしています。14
「アクセル ボーナス」は、毎月末締め（月払い）で 計算され、翌月15日にお支払となります。 ※価格はすべて税抜で記載されています。 ※「1SVに相当する金額（円）」を120円としてボーナス計算をしています。 SC1 ランクアップ ボーナス スタート期間中、SC1のランクを初めて達成した場合、あ なたは18,000円（税別）のSC1ランクアップ ボーナスを 獲得できます。 18,000円獲得 スタート期間中に シニア コンサルタント１ にランクアップ あなた 「SC1ランクアップ ボーナス」は、毎月末締め（月 払い）で計算され、翌月15日にお支払となります。 ※価格は税別です。 ※「1SVに相当する金額（円）」を120円としてボーナス計算をしています。 15
*レベル ボーナス チャート* 自らのチームを構築し、また、強力なチームを作れるよう指導することで、あなたは「レベル ボーナス」を獲得することがで きます。報酬資格ランクに応じ、コミッションを受け取れるレベル数が決定されます。 レベル決定の流れ プレイスメント ツリーであなたの直下に属するコンサルタントは全て、あなたのレベル1となります。コンサルタントには、自 身の直接紹介のカスタマーから、「カスタマーセールス ボーナス」と「パーソナル セールス ボーナス」が支払われます。紹介 者は、そのカスタマーからの「レベル ボーナス」を受け取ることはできません。 レベル ボーナス C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 40 40 40 40 40 40 40 40 40 40 40 40 40 40 150 200 250 300 300 300 300 300 300 300 300 300 300 300 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 レベル 1 5% 7% 9% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% レベル 2 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% 7% 7% レベル 3 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% レベル 4 3% 5% 6% 6% 6% 6% 6% 6% 6% レベル 5 3% 5% 6% 6% 6% 6% 6% 6% レベル 6 3% 4% 5% 5% 5% 5% 5% レベル 7 3% 4% 4% 4% 4% 4% 4% レベル 8 3% 3% 3% 3% 3% 3% レベル 9 3% 3% 3% 3% 3% 3% 「レベル ボーナス」は、毎月末締め（月払い）で計算され、翌月15日にお支払となります。 このボーナスは、プロモーションまたは割引利用後のCVに対して支払われます。 手伝う・育成 コ ン サ ル タ ン ト コ ン サ ル タ ン ト １ コ ン サ ル タ ン ト ２ コ ン サ ル タ ン ト ３ シ ニ ア コ ン サ ル タ ン ト １ シ ニ ア コ ン サ ル タ ン ト ２ シ ニ ア コ ン サ ル タ ン ト ３ マ ネ ー ジ ン グ コ ン サ ル タ ン ト １ マ ネ ー ジ ン グ コ ン サ ル タ ン ト ２ マ ネ ー ジ ン グ コ ン サ ル タ ン ト ３ エ グ ゼ ク テ ィ ブ コ ン サ ル タ ン ト １ エ グ ゼ ク テ ィ ブ コ ン サ ル タ ン ト ２ エ グ ゼ ク テ ィ ブ コ ン サ ル タ ン ト ３ エ グ ゼ ク テ ィ ブ コ ン サ ル タ ン ト ４ プ レ ジ デ ン シ ャ ル コ ン サ ル タ ン ト 16 Build & Grow. 自己購入要件（PSV） セールスボリューム要件（SVR） グループ セールス ボリューム（GSV） 上限ボリュームルール（MVR）
*コンプレッション・チャート* アクティブ コンプレッション 9 8 5 3 7 2 6 1 注文する MC1 ここから始める C1 C3 インアクティブ あなた MC3 インアクティブ EC3 EC4 MC1 インアクティブ プレジデンシャル 4 YOU アクティブなMC1はレベル５までのボーナスを得る資格があります。このMC1のコンサルタ ントはレベル 1 に該当するので、10％のボーナスが支払われます。 アクティブなC1はレベル1までのボーナスを得る資格があります。 左記のC1はレベル2に該当するため、ボーナスは支払われません。 アクティブなC3は、レベル２までの報酬を得る資格があります。 このチャートではレベル3に該当するため資格は付与されず、ボーナスは支払われません。 アクティブでないコンサルタント。アクティブ コンプレッションにより、このレベルでは資格 を付与されず、レベル４のボーナスがスキップされます。 あなたの下にプレイスメントされたコンサルタントがインアクティブなため、アクティブ コ ンプレッションによりあなたはレベル4となります。アクティブなSC3として、3%のボーナ スが支払われます。 アクティブなMC3はレベル９までのボーナスを得る資格があり、この場合、レベル５として 6%の報酬が支払われます。 アクティブでないコンサルタント（該当月のSVRが150に満たないコンサルタント）。アクテ ィブ コンプレッションにより、このレベルでは資格を付与されず、レベル６のボーナスがスキ ップされます。 アクティブなEC3はレベル９まで受け取る資格があり、この場合、レベル６として５％が支 払われます。 このアクティブなEC4はレベル7として4%の報酬が支払われます。 アクティブなMC1は最高で5レベルまでの、ボーナスを得る資格があります。このチャートで は、レベル8に該当するため、ボーナス獲得条件を満たしておらず、ボーナスは支払われませ ん。 アクティブでないコンサルタント。アクティブ コンプレッションにより、このレベルでは資格 を付与されず、レベル９のボーナスはスキップされます。 アクティブなPCはレベル9の要件を満たしており、3％の報酬が支払われます。 計算例 ここでは、注文により発生するボリューム が、どのようにアップラインに対して「レベ ル ボーナス」としてお支払されるのかを例 示します。あなたはプレイスメント ツリー上 で、シニア コンサルタント3とします。 ※ 「レベル ボーナス」はプレイスメント ツリーが適用 されます。 図の見方： 資格達成（お支払） レベル条件を満たしていない （お支払なし） インアクティブ（スキップ） ※ 該当月のセールス ボリュームが少なくとも150 SVR以上（うち最低40PSVは自己購入）ある 場合に、アクティブ コンサルタントとみなされ ます。 17
第1世代 7% 12% 15% 20% 20% 20% 20% 第2世代 10% 12% 15% 20% 20% 20% 第3世代 10% 12% 15% 20% 20% 第4世代 10% 12% 15% 20% 第5世代 10% 12% 15% 第6世代 10% 12% 第7世代 12% 最大マッチ （円/税抜） 120,000 300,000 600,000 900,000 1,200,000 1,800,000 1,800,000 マネージング コンサルタント 2 以上の報酬資 格ランクを達成すると、自身の紹介者ツリー上 のマネージング コンサルタント 1 以上のコン サルタントを対象とし、彼らの獲得する「レベ ル ボーナス」に対して「リーダーシップ マッチ」 を獲得できます。最大7世代から定められたパ ーセンテージのボーナスを獲得できるボーナス です。 世代の数え方 第1世代とは、紹介者ツリー（紹介者つなが り）上で、あなたのチームの各レッグにおけるマ ネージング コンサルタント 1 以上の報酬資格 ランクを持つ、最初のコンサルタントを意味し ます。第2世代は、そのレッグにおいてマネージ ング コンサルタント 1 以上の報酬資格ランク を持つ次のコンサルタントを意味し、以下同様 となります。 ※ 「リーダーシップ マッチ」は紹介者ツリーが適用 されます。 ※「リーダーシップマッチ」は、該当月のグローバル での合計CVの9％を上限としてお支払します。 「リーダーシップ マッチ」は、毎月末締め（月払い）で計算され、翌月 15日にお支払となります。 リーダーシップ マッチ リーダーレベルに到達する頃には、あなたは成功す るために何が必要かを知っていることでしょう。メン バーをサポートし、彼らをやる気にさせるスキルがそ のひとつです。このリーダーシップ マッチは、未来の リーダーを絶えず育成し、彼らの成長を支えること で、強力なチームを築くという功績に対するボーナ スです。 貢献 *ジェネレーション（世代） チャート* マ ネ ー ジ ン グ コ ン サ ル タ ン ト ２ マ ネ ー ジ ン グ コ ン サ ル タ ン ト ３ エ グ ゼ ク テ ィ ブ コ ン サ ル タ ン ト １ エ グ ゼ ク テ ィ ブ コ ン サ ル タ ン ト ２ エ グ ゼ ク テ ィ ブ コ ン サ ル タ ン ト ３ エ グ ゼ ク テ ィ ブ コ ン サ ル タ ン ト ４ プ レ ジ デ ン シ ャ ル コ ン サ ル タ ン ト 18 Lead.
あなた 第２世代 マネージング コンサルタント ３ 10% 12% 第1世代 エグゼクティブ コンサルタント ２ 12% 第1世代 マネージング コンサルタント 1 12% マネージング コンサルタント 3 第1世代 マネージング コンサルタント ３ 実践例 あなたがマネージング コンサルタント 3 の場合、第1世代のコンサル タントから12%、第2世代のコンサルタントから10%の「リーダーシッ プ マッチ」を獲得することができます。 「リーダーシップ マッチ」の支払要件は、報酬資格ランクにもとづき 決定されます。1つの系列から複数の第1世代のコンサルタントを持つ ことが可能です。 「リーダーシップ マッチ」は、他のボーナスやコミッションに追加で支 払われます。 *獲得例* 19
エグゼクティブ コンサルタント 1 以上の報酬資格ランク を獲得すると、「リーダーシップ プール」のシェアを獲得 することができます。当プールは、毎月のグローバルで のすべての製品注文分のボリューム合計4%を、達成者 で分配するボーナスです。あなたのシェア数は報酬資格 ランクに応じて決まります。 プールの総額が、コンサルタントが毎月獲得するシェア の合計数により等分されます。 リーダーシップ プール シェア エグゼクティブ コンサルタント １ 1 エグゼクティブ コンサルタント ２ 3 エグゼクティブ コンサルタント ３ 5 エグゼクティブ コンサルタント ４ 10 プレジデンシャル コンサルタント 20 「リーダーシップ プール」は、毎月末締め（月払い）で計算され、翌月15日に お支払となります。 Lead. *リーダーシップ プール シェア数* 貢献 20
初めてMC1を達成する方 • MC1を新たに達成し、資格認定期間内に3ヵ月連続で MC1の報酬資格ランクを獲得する（合計3ヵ月）。 すでにMC1を達成された方 （エボルブ報酬プラン適用後） • 資格認定期間内に3ヵ月連続でMC1の報酬資格ラン クを獲得する（合計3ヵ月）。 ※いずれの達成方法の場合でもサミット開催前月までSC3以上の 報酬資格ランクを維持する必要があります。 ※グロースサミットの詳細は、EVOのビジネス情報に記載の特典・約 款が適用されます。ライフバンテージの Webサイト、もしくはパークス ブックレットからもご確認いただくことが可能です。 ランクを達成していくにつれ、きっとさらなる高みが視野に 入ってくるはず。最高ランクの達成をめざす方は、ユタ州ワ サッチ山脈で開催される「グロースサミット」にご参加くださ い! MC1を新たに達成した皆さまを対象に行われる、 こ の限定イベントでは、リーダーシップスキルを磨き、ビジネス 構築の基礎をマスターして、さらなる高みをめざすためのト レーニングを実施。 人生に一度きりの体験は年2回の頻度で開催されます。 「グロース サミット」は2泊3日の日程で開催され、期間中は米 国本社の訪問やトレーニング、コンサルタント同士の交流 を深めるアクティビティなどが行われます。 グロース サミット 成長し、 サミットを めざそう 対象ランク：MC1 エボルブ パークスプログラム 21
EC2-EC4に新たにランクアップし、ランクアップした月から 6 ヵ月以 内にもう一度その報酬資格ランクを達成すると、あなたのその努力を 讃え、素敵なギフトを受け取ることが出来ます。一生に一度は行って みたい場所への旅行、高級品、高級キッチン用品など、趣味やライフ スタイルに合わせて、お好きな場所からお好きなギフトをお選びくださ い。ランクアップするたびにギフトはより豪華になります。 3つのカテゴリーからお選びいただけます： • 特製ライフバンテージ ジュエリー • 航空券・宿泊券 • ビジネス活動ご利用いただける高級IT機器 ギフトはランクアップ時だけではありません！ ランクを維持することに よって、特典の可能性はさらに広がります。世界最大のデジタル特 典ネットワークからギフトを選択できるポイントが付与されます。コンサ ートチケット、カスタムグッズ、大手小売店のギフト券、Amazon.com の商品など、さまざまなものからお選びいただけます。 ※特典内容は達成ランクによって異なります。 ※特典内容は変更になる場合があります。 ※「ランクギフト」「ランク維持ギフト」の詳細は、EVOのビジネス情報に記載の特 典・約款が適用されます。ライフバンテージの Webサイト、もしくはパークスブックレ ットからもご確認いただくことが可能です。 「ランクギフト」 「ランク維持ギフト」 念願の達成は、 とびきりの贈り物で 祝福 対象ランク： EC2以上 エボルブ パークスプログラム 22
ワンダー ジープ・ラングラー購入サポートとして360万円（税別）＊を 受け取ることができます。 エレベート 使途自由のキャッシュボーナス300万円（税別）＊が進呈 されます。 新たにEC2を達成し、条件を満たしたコンサルタントを 対象に、「ワンダー」と「エレベート」の2つのうち、 いずれかの特典と表彰が進呈されるプログラムです。 マイライフベンチャー あなたの成功が あなたのスタイル EC2をあらたに達成し、EC2以上の報酬資格ランクを6ヵ 月連続で維持すること。（計6回）EC2の達成から18ヵ月 以内に条件を満たす必要があります。 ※「マイライフベンチャー」の詳細は、EVOのビジネス情報に記載の 特典・約款が適用されます。ライフバンテージのWebサイト、もしくはパ ークスブックレットからもご確認いただくことが可能です。 達成条件 選べる2つの選択肢対象ランク：EC2以上 ＊「1SVに相当する金額（円）」を120円としてボーナス計算をしています。 エボルブ パークスプログラム 23
注意事項 1. ライフバンテージ・コーポレーションは、NASDAQ (LFVN) に上場しているダイレクト セールス／ネットワーク マーケテ ィング企業です。私たちは、マルチレベル マーケティング報 酬プランを備え、個人が顧客に製品を販売することにより 柔軟な方法で副収入を得る機会を提供しています。 2. ライフバンテージの報酬プランにおいては、ライフバンテー ジ コンサルタントによる製品販売や、彼ら個人のマーケテ ィングチームのライフバンテージ コンサルタントによる最 終消費者への製品販売の実績に応じてコミッションが支払 われます。 3. ライフバンテージの製品は一般店舗では販売されて おらず、良好な会員資格を有するコンサルタントだけ が、自らの在庫から直接、または当社の公式Webサイト （LifeVantage.com）を通じてライフバンテージの製品を 販売する権利を付与されています。 4. コンサルタント契約は、概要書面、契約書面、報酬プラン により構成されています。コンサルタント契約では、各コン サルタントの当社に対する契約上の関係および義務を規定 しています。 5. ライフバンテージ・コンサルタントは、毎月個人的に消費で きる、または各個人のカスタマーに対して毎月販売できる量 を上回る在庫を自ら購入する、またはカスタマーや他のコン サルタントに購入するよう働きかけてはならないものとしま す。さらに、ライフバンテージの各コンサルタントは、前月 における全注文の70%以上が販売された、または個人や家 族の使用により消費された場合を除き、当該月に新たな注 文をしてはならないことに個人的に同意するものとします。 6. ライフバンテージのコンサルタントは、会員専用ウェブサイト （バックオフィス）にて閲覧可能な収入に関する表明に際し、 年間平均収入開示書を開示する義務を負うものとします。 7. 開示されたコンサルタントの売上収益は総潜在収益であり、 他の事業経費は差し引かれておらず、また、必ずしもコンサル タントがライフバンテージ報酬プランを通じて得られる、また は得られるであろう収入（該当する場合）を表明したもので はありません。コンサルタントの収益は、個人の熱心さ、営業 努力および市場の状況に応じて異なります。ライフバンテー ジは、いかなる収入やランクの成功をも保証いたしません。収 入の詳細に関しては、年間平均収入開示書を参照してくださ い。 8. 2023年3月1日以降、ビジネスセンターを新規開設することは できません。既存のビジネスセンターは全て、アクティブな状 況にあるか否かにかかわらず、存続できなくなり、ビジネスセン ターの直下に配置または登録されていたアカウントは、メイン アカウントへ融合されます。 9. 「リーダーシップ マッチ」は、個人の最大マッチの制限を適用 した後で、ボーナス支払の合計が該当月のグローバルでのCV の合計の9％を上回っていた場合、グローバルでの合計CVの 9％を超えないよう、すべて同等の割合で下方調整されます。 24
法定広告記載事項 統括者の氏名／名称／住所／電話番号 ライフバンテージジャパン株式会社 代表取締役 スティーブン・リチャード・ファイフ 所在地 〒108-0075 東京都港区港南2-16-4 品川グランドセントラルタワー9F 電話番号03-6843-5980 （代表）ファックス番号03-6893-3181 （代表） 公式ウェブサイト LifeVantage.com 商品または役務の種類 ハーブ等を主原料とする健康補助食品と粉末清涼飲料、化粧品、犬用の健康補助食品、 製品カタログやリーフレット等の各種印刷物、イベント チケット 特定負担の内容 独立コンサルタントになるには、以下の２点が必要となります。 ① 当社から、下記のいずれかを購入すること。 ・スタートキット［5,500 円（ビジネス登録料、消費税込）］ ・コンサルタントパック［58,000 円 （ 送料 、ビジネス登録料、 消費税込 ）］ ・マネージングパック［85,500 円 （ 送料 、ビジネス登録料、 消費税込 ）］ ・プロタンディムパック［88,000 円 （ 送料 、ビジネス登録料、 消費税込 ）］ ・エグゼクティブパック［163,000 円 （ 送料 、ビジネス登録料、 消費税込 ）］ ② 当社に独立コンサルタント登録を行うこと。 独立コンサルタント資格を継続するには、以下が必要となります。 ●登録更新料［1年ごと、5,500円、消費税込］ 特定利益の計算方法 本書面P4～23に掲載しておりますので、ご参照ください。 主な商品名 プロタンディム、アクシオ、フィジーク、ライフバンテージ、トゥルーサイエンス、ペッタンディムなど 25
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400053JPEvolve © 2 02 4 Li fe Va nt ag e C or po ra tio n. A ll rig ht s re se rv ed . 241101JP.01
Evolve COMPENSATION PLAN GUIDE FOR INDEPENDENT LIFEVANTAGE CONSULTANTS CANADA Effective November 1, 2024
Welcome 2
activatedLife. It’s complicated. Messy. Beautiful. It goes by fast, and you want to live life to the fullest. But everyday responsibilities, fears, or restrictions can hold you back. You deserve to break free. You deserve to be your best self and live a healthy, happy life on your terms. LifeVantage is here to help. Our products are purposefully designed to activate your body’s ability to create vibrant health, starting at the cellular level. And when you look and feel your best, you’ll want to help others do the same. LifeVantage activates financial wellness with the opportunity to grow a business that can change people’s lives for the better. That’s where Evolve creates possibilities. Evolve is a compensation plan that allows you to work part-time or full-time.* Whether you are looking to simply share life-changing products or wanting to work and grow as a professional mentor and leader, being an Independent LifeVantage® Consultant will positively challenge and reward you. to life IT’S TIME TO LIVE WITH PURPOSE. IT’S TIME TO INSPIRE REMARKABLE. IT’S TIME TO LIVE ACTIVATED. LifeVantage expects the typical participant to earn $0 to $15 in commissions and bonuses, excluding retail profits, annually. 3
WELCOME 2 KEY TERMS 4-5 THE CONSULTANT PATH 6-7 SHARE Product Pricing Customer Sales Profit Personal Sales Bonus Sharing Bonus 8 9 11 12 FAST TRACK BONUSES Fast Track Sharing Bonus SC1 Rank Advancement Bonus 14 15 BUILD & GROW Level Comissions 16-17 LEAD Leadership Match Leadership Pool 18-19 20 LEGAL NOTICE 21 ACTIVE You are considered an Active Consultant when your account is in Good Standing and you have met the 150 Sales Volume Requirement in that month, which can be fulfilled solely through Customer orders. COMMISSIONABLE VOLUME (CV) Commissionable Volume is the measurement on which most bonuses and commissions are paid. When you earn a percentage of volume, you earn a percentage of a product’s CV. The numeric value for CV is typically obtained when Sales Volume is multiplied by the PEG Rate, except in cases where CV has been discounted for any reason. COMPRESSION A process by which CV for Level Commissions skips inactive Consultants and rolls up to the next Active Consultant. CUSTOMER SALES VOLUME (CSV) The Sales Volume originating from your personally enrolled Customers’ orders. DOWNLINE All of the Consultants sponsored into your genealogy are considered part of your downline. ENROLLER The LifeVantage Consultant who enrolls a new Customer or Consultant. Also known as the Enrollment Sponsor. ENROLLMENT TREE The line of Consultants consecutively linked through Consultant enrollment and not by placement. The Enrollment Tree does not include any Placement Sponsors. GENERATION Consultants in your Enrollment Tree with the Paid-as Rank of Managing Consultant 1 or higher are your Generations. A Generation 1 is the first Consultant in any downline with a Paid-as Rank of Managing Consultant 1 or higher. A Generation 2 is the next Consultant in that Leg with a Paid-as Rank of Managing Consultant 1 or higher, and so on. GOOD STANDING Good Standing means you are in compliance with the Consultant Agreement. Table of Contents Key Terms 4
GROUP SALES VOLUME (GSV) Group Sales Volume is the total Sales Volume from you and all the Customers and Consultants in your entire team. LAUNCH PERIOD Your Launch Period includes the month you enroll and the following three full calendar months. LEG A Leg begins with a Level 1 Consultant and includes all of the Consultants beneath them. You have as many Legs as you have Level 1 Consultants. LEVEL The location a Consultant has in your downline in relation to you. All of the Consultants directly below you in your Placement Tree are your Level 1. Consultants placed directly below your Level 1 Consultants are your Level 2, and so on. MAXIMUM VOLUME RULE (MVR) The maximum amount of GSV from any one Leg or from your own Personal Sales Volume and Customer Sales Volume that can count toward your monthly Rank qualification. PAID-AS RANK Your Paid-as Rank is the Rank for which you qualify each month. Your Paid-as Rank determines many of your bonuses. Your Paid-as Rank may be the same as or lower than your Recognition Rank depending on your monthly qualifications. PEG RATE The foreign currency conversion factor used by LifeVantage to calculate payments to Consultants. Using a PEG Rate allows LifeVantage to normalize payments to Consultants. The PEG Rate is periodically reviewed and set based on recent foreign exchange rates and projected foreign exchange rates. PERSONAL SALES VOLUME (PSV) The Sales Volume originating from your personal account. PERSONAL SALES VOLUME CAP (PSVC) For qualification purposes only, you can count up to 150 Personal Sales Volume toward your monthly Rank qualifications. Your entire Sales Volume Requirement can be satisfied by your Customers' purchases. PLACEMENT SPONSOR If you place a new Consultant directly below you in your downline, you are the Enrollment Sponsor and Placement Sponsor. However, if you place a new Consultant below a downline Consultant in the Placement Tree, that downline Consultant becomes your new enrollee’s Placement Sponsor. PLACEMENT TREE If you are a new Consultant's Enroller, you may place them directly below you in your downline or under any other downline Consultant’s position. This is considered your Placement Tree, also referred to as your downline or team. QUALIFYING SALES VOLUME (QSV) The Sales Volume that counts toward your monthly Paid-as Rank qualification. You can count up to 150 PSV toward your monthly Sales Volume Requirement. RANK ADVANCING When you meet the qualifications to be paid as a Rank higher than your current Recognition Rank, you will “advance” to that higher Rank, and your Recognition Rank will be updated to reflect that new milestone. RECOGNITION RANK Your Recognition Rank is the highest Rank you have achieved along the Consultant Path. Your Recognition Rank is subject to reclassification once per year based on the maintenance requirements for that Rank. SALES VOLUME (SV) The numeric value attributed by LifeVantage to each commissionable product sold and/or purchased. SALES VOLUME REQUIREMENT (SVR) The accumulation of your Customers Sales Volume and your Personal Sales Volume to meet your monthly Paid-as Rank requirement. UPLINE All of the Consultants above you in your Enrollment and/or Placement Tree. 5
Evolve. Share. Build & Grow. Lead. Your path as an Independent LifeVantage Consultant can lead to a world of possibilities. Start by sharing the LifeVantage products that you love with Customers to help them activate wellness and improve their health. The more you share, the more you’ll grow as you find others who want to join you on the path with a business of their own. As you progress along the Consultant Path, your attention will shift to building and leading Consultants on your team who are ready to grow to the next stage of success. At every stage you’ll evolve your earnings, yourself, and your life. HOW IT WORKS You must meet certain volume requirements to stay Active and earn bonuses and commissions. These requirements will change, along with the bonuses and commissions you can qualify for, as you move along the path and earn Rank advancements. As you reach the qualifications for a specific Rank, you will be recognized with your “Recognition Rank” at that level for as long as you remain Active. However, your “Paid-as Rank” will fluctuate with your qualifications from month to month. 6
SHARE People say our products are too good not to share! In the early stages of your business, begin with a strong emphasis on sharing our wellness products by selling to Customers. These sales are the fastest way to build your business and see a speedy profit. BUILD & GROW By the time you reach Senior Consultant 1, you should begin spending more time finding new people to add to your sales team. Balance your efforts between selling and sponsoring, which is vital to your continued growth. The larger you grow your sales team, the more time you will spend building your business and helping your Consultants reach their own goals. C O N S U LT A N T C O N S U LT A N T 1 C O N S U LT A N T 2 C O N S U LT A N T 3 S EN IO R C O N S U LT A N T 1 S EN IO R C O N S U LT A N T 2 S EN IO R C O N S U LT A N T 3 M A N A G IN G C O N S U LT A N T 1 M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 EX EC U TI V E C O N S U LT A N T 1 EX EC U TI V E C O N S U LT A N T 2 EX EC U TI V E C O N S U LT A N T 3 EX EC U TI V E C O N S U LT A N T 4 P R ES ID EN TI A L C O N S U LT A N T C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 PERSONAL SALES VOLUME CAP 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 SALES VOLUME REQUIREMENT 150 200 250 300 300 300 300 300 300 300 300 300 300 300 GROUP SALES VOLUME 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 MAXIMUM VOLUME RULE 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 LEAD Leadership is more than the Rank next to your name. Teach by example how to build a successful LifeVantage business. Acknowledge, encourage, and lift your team members, and together you can enjoy the rewards of your shared success! The Consultant Path Evolve is uniquely designed to help LifeVantage Consultants develop confidence, community, and leadership. Each Rank advancement offers the opportunity to celebrate with increased earning possibilities. 7
EACH LIFEVANTAGE PRODUCT HAS 4 PRICES. 03. CONSULTANT BASE Consultant Base Price is lower than the One- time Retail Price and Customer Subscription Price, regardless of the order type and is the price immediately available to all Consultants upon sign-up. 04. CONSULTANT Consultant Price is lower than Consultant Base Price, regardless of the order type and represents the lowest price available. To unlock this price, you must achieve 500 CSV once every 6 months. The Consultant Price will be available to you the month immediately following the month in which you qualify. 02. SUBSCRIPTION Subscription Price is a discount from One-time Retail price. Products purchased by Customers on Subscription are eligible for the discount. 01. ONE-TIME RETAIL The advertised Customer price for all products, whether purchased online or directly from you. Product Pricing 8
Customer Sales Profit allows you to earn commissions on every order. Here's how it works: When your Customers order LifeVantage products, you earn the difference between the price your Customer paid and the Consultant price for which you qualify. Your price as a Consultant starts at the Consultant Base Price, until you unlock the Consultant Price by achieving 500 CSV once every 6 months. IN PRACTICE In these examples, 2 Customers are ordering the same set of products. The Customer on the left purchases the products at the full One-time Retail price of CA$130. If you have not unlocked the Consultant Price, then your price for that order is the Consultant Base Price or CA$110.50. So, you earn a Customer Sales Profit of CA$19.50. If you have unlocked the Consultant Price, then your price for that order is the Consultant Price or CA$104. So, you earn a Customer Sales Profit of CA$26. The Customer on the right orders the same products on a Subscription order for the Subscription Price of CA$117. If you have not unlocked the Consultant Price, then your price for that order is the Consultant Base Price or CA$110.50. So, you earn a Customer Sales Profit of CA$6.50. If you have unlocked the Consultant Price, then your price for that order is the Consultant Price or CA$104. So, you earn a Customer Sales Profit of CA$13. . CUSTOMER SALES PROFIT IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Recognition Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. Sharing your excitement about LifeVantage and selling products to Customers is at the heart of being a Consultant. In addition to Customer Sales Profit, you can earn on total monthly product sales with the Personal Sales Bonus. Customer Sales Profit Share. Must be Active to qualify RETAIL CA$130 PURCHASE PRICE CA$19.50 CUSTOMER SALES PROFIT subtract CA$110.50 CONSULTANT BASE PRICE Consultant Base Price RETAIL CA$130 PURCHASE PRICE CA$26 CUSTOMER SALES PROFIT subtract CA$104 CONSULTANT PRICE Unlocked Consultant Price SUB CA$117 PURCHASE PRICE CA$6.50 CUSTOMER SALES PROFIT subtract CA$110.50 CONSULTANT BASE PRICE Consultant Base Price SUB CA$117 PURCHASE PRICE CA$13 CUSTOMER SALES PROFIT subtract CA$104 CONSULTANT PRICE Unlocked Consultant Price 9
Customers may cancel their Subscription to opt out of the program at any time. Subscription orders come with rewards for all! Learn more about the LifeVantage Rewards Circle loyalty program at LifeVantage.com Subscribe. Save. Get Rewards. 10
Must be Active to qualify CUSTOMER SV BONUS TIER RECOGNITION TITLE 500 – 999.99 5% ONYX 1,000 – 1,999.99 10% EMERALD 2,000 – 3,999.99 15% SAPPHIRE 4,000+ 20% DIAMOND Personal Sales Bonus The Personal Sales Bonus rewards you on your personal Customer sales. When your personal Customer sales total 500 SV or more in a single month, you become eligible for an additional Personal Sales Bonus. The bonus is paid on a percentage of CV. When you reach 500 Customer Sales Volume in a single month, you will be recognized with a special title before your Rank, starting with Onyx at 500 SV then changing to Emerald at 1000 SV, Sapphire at 2000 SV, and Diamond at 4000 SV and higher. IN PRACTICE For example, if your Customers order 2200 SV worth of products in the month, you are eligible for the 15% bonus tier. This bonus is paid on CV which takes into account promos or discounts Customers may have redeemed. For illustration purposes only, if the theoretical PEG Rate for Canada at the time this bonus is calculated were 1.30, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 2200 SV X 1.30 (theoretical Canada PEG Rate) X 15% = CA$429. PERSONAL SALES BONUS IS CALCULATED MONTHLY Share. 11 2200 SV SAPPHIRE CA$429 PERSONAL SALES BONUS you earn 15% of CV and the title of RETAIL SUB YOU
SHARING BONUS IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Recognition Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. The Sharing Bonus rewards you for selling products to new Consultants and helping them make early sales to Customers. Earn 10% on the Personal Sales Volume and Customer Sales Volume of your new personally enrolled Consultant. This bonus is paid on sales in the new Consultant's enrollment month, up to a maximum of US$100 per newly enrolled Consultant.† IN PRACTICE For example, if you sell 250 SV of products to your new personally enrolled Consultant and your new personally enrolled Consultant sells 500 SV of products to their personally enrolled Customers in that new Consultant’s enrollment month, you are eligible for the 10% Sharing Bonus on 750 SV. This bonus is paid on CV, which takes into account the PEG Rate and any promos or discounts that may have been redeemed. For illustration purposes only, if the theoretical PEG Rate for Canada at the time this bonus is calculated were 1.30, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical CA PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 750 SV X 1.3 (theoretical CA PEG Rate) X 10% = CA$97.50. 12 Sharing Bonus. Sell to Newly Enrolled Consultant Newly Enrolled Consultant Sells to Personally Enrolled Customers In the Newly Enrolled Consultant’s Enrollment Month YOU C 250 SV 500 SV You Earn 10% of CV CA$97.50 SHARING BONUS Must be Active to qualify C
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SHARING BONUS DOUBLER The Sharing Bonus Doubler rewards you for selling products to new Consultants and helping them make early sales to Customers during your Launch Period. During your Launch Period, earn 10% on the Personal Sale Volume and Customer Sales Volume of your new personally enrolled Consultant. This bonus is paid on sales in the new Consultant’s enrollment month, up to a maximum of US$100 per newly enrolled Consultant.† IN PRACTICE For example, if during your Launch Period you sell 250 SV of products to your new personally enrolled Consultant and your new personally enrolled Consultant sells 500 SV of products to Launch Bonuses their personally enrolled Customers in that new Consultant’s enrollment month, you are eligible for the 10% Sharing Bonus Doubler on 750 SV. This bonus is paid on CV, which takes into account the PEG Rate and any promos or discounts that may have been redeemed. For illustration purposes only, if the theoretical PEG Rate for Canada at the time this bonus is calculated were 1.30, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical CA PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 750 SV X 1.3 (theoretical CA PEG Rate) X 10% = CA$97.50 During Launch Period Sell To Newly Enrolled Consultant Newly Enrolled Consultant Sells To Personally Enrolled Customers In the Newly Enrolled Consultant's Enrollment Month YOU C 250 SV 500 SV You Earn 10% of CV CA$97.50 SHARING BONUS DOUBLER Must be Active to qualify These launch bonuses can boost you right from the start. Your Launch Period begins the day you enroll as a Consultant and continues through the next 3 calendar months. SHARING BONUS DOUBLER IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Recognition Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. C 14 †CAP AMOUNT: The Sharing Bonus and Sharing Bonus Doubler are each capped at US$100 per newly enrolled Consultant. For illustration purposes only, if the theoretical PEG Rate for Canada at the time these bonuses are calculated were 1.30, then the cap amount for these bonuses in local currency would be calculated as follows: Cap amount in US$ is multiplied by the theoretical CA PEG Rate. US$100 X 1.30 (theoretical CA PEG Rate) = CA$130.
YOU EARN $195 When you advance to the Rank of SENIOR CONSULTANT 1 during your Launch Period YOU SC1 RANK ADVANCEMENT BONUS IS CALCULATED MONTHLY SC1 Rank Advancement Bonus When you reach the Rank of Senior Consultant 1 for the first time during your Launch Period, you will earn a CA$195 SC1 Rank Advancement Bonus. Calculation based on US$150 X 1.30 (theoretical CA PEG Rate) = CA$195. 15
Level Commissions C O N S U LT A N T C O N S U LT A N T 1 C O N S U LT A N T 2 C O N S U LT A N T 3 S EN IO R C O N S U LT A N T 1 S EN IO R C O N S U LT A N T 2 S EN IO R C O N S U LT A N T 3 M A N A G IN G C O N S U LT A N T 1 M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 EX EC U TI V E C O N S U LT A N T 1 EX EC U TI V E C O N S U LT A N T 2 EX EC U TI V E C O N S U LT A N T 3 EX EC U TI V E C O N S U LT A N T 4 P R ES ID EN TI A L C O N S U LT A N T C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 200 250 300 300 300 300 300 300 300 300 300 300 300 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 LEVEL 1 5% 7% 9% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% LEVEL 2 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% 7% 7% LEVEL 3 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% LEVEL 4 3% 5% 6% 6% 6% 6% 6% 6% 6% LEVEL 5 3% 5% 6% 6% 6% 6% 6% 6% LEVEL 6 3% 4% 5% 5% 5% 5% 5% LEVEL 7 3% 4% 4% 4% 4% 4% 4% LEVEL 8 3% 3% 3% 3% 3% 3% LEVEL 9 3% 3% 3% 3% 3% 3% You earn Level Commissions for building your team and teaching those you sponsor to create strong teams of their own. As an Active Consultant, you are paid a percentage of commissions from the CV of your team’s sales. Your Paid-as Rank determines the percentages you earn and the number of levels on which you are eligible to receive a commission. HOW LEVELS WORK All of the Consultants directly below you in your Placement Tree are your Level 1. Consultants are paid Customers Sales Profit and Personal Sales Bonus on their personally enrolled Customer purchases. Enrollers are not eligible for a Level Commission on their personal Customers. LEVEL COMMISSIONS ARE CALCULATED MONTHLY 16 Build & Grow. PSVC SVR GSV MVR
Active Compression 9 8 5 3 7 2 6 1 ORDER MC1 START HERE C1 C3 INACTIVE SC3 MC3 INACTIVE EC3 EC4 MC1 INACTIVE PRESIDENTIAL 4 YOU Active MC1 qualified to earn up to 5 Levels. They are Level 1, so they are paid 10% Active C1 qualified to earn on Level 1. This is Level 2, so they are not eligible and Level 2 is not paid. Active C3 is qualified to earn on only 2 Levels. This is Level 3, so they are not eligible and Level 3 is not paid. Inactive. Through Active Compression, this Level is not qualified and Level 4 rolls up. Because the Consultant below you is inactive, you become Level 4 through Active Compression. As an Active SC3, you are qualified to earn at Level 4 and are paid 3%. Active MC3 qualified to earn on 9 Levels and paid on Level 5 at 6%. Inactive. Through Active Compression, this Level is not qualified and Level 6 rolls up. New Level 6 is an Active EC3 qualified to earn on 9 Levels. They are paid Level 6 at 5%. Active EC4 is paid on Level 7 at 4%. Active MC1 qualifies to earn only up to Level 5. Because this is Level 8, they are not eligible and Level 8 is not paid. Inactive. Through Active Compression, this Level is not qualified and Level 9 rolls up. Active PC is qualified for Level 9 and paid 3%. A process by which CV for Level Commissions skips inactive Consultants and rolls up to the next Active Consultant. IN PRACTICE This example shows how volume could roll up in one Leg of a team. You’re a Senior Consultant 3 at Level 5 above the Consultant who earned the volume. Starting from the bottom of the chart, you see how CV flows up and what happens below and above you. KEY Qualified (Paid) Not Qualified (Not Paid) Inactive (Rolls Up) 17
M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 EX EC U TI V E C O N S U LT A N T 1 EX EC U TI V E C O N S U LT A N T 2 EX EC U TI V E C O N S U LT A N T 3 EX EC U TI V E C O N S U LT A N T 4 P R ES ID EN TI A L C O N S U LT A N T GENERATION 1 7% 12% 15% 20% 20% 20% 20% GENERATION 2 10% 12% 15% 20% 20% 20% GENERATION 3 10% 12% 15% 20% 20% GENERATION 4 10% 12% 15% 20% GENERATION 5 10% 12% 15% GENERATION 6 10% 12% GENERATION 7 12% CAP PER MATCH $1,000 $2,500 $5,000 $7,500 $10,000 $15,000 $15,000 When you are paid as a Managing Consultant 2 or higher in the month, you can receive a Leadership Match on qualified Generations. The Leadership Match is paid on your qualified Generations' Level Commissions. HOW GENERATIONS WORK Your Generation 1 is the first Consultant in any Leg in your team with a Paid-as Rank of Managing Consultant 1 or higher. A Generation 2 is the next Consultant in that Leg with a Paid-as Rank of Managing Consultant 1 or higher, and so on. LEADERSHIP MATCH IS CALCULATED MONTHLY MONTHLY LEADERSHIP MATCH CAN PAYOUT UP TO A MAXIMUM OF 9% OF MONTHLY GLOBAL CV. • Cap per match amount in US$ is multiplied by the theoretical CA PEG Rate. • For example, the cap per match for a Managing Consultant 2 would be US$1,000 X 1.30 (theoretical CA PEG Rate) = CA$1,300. Leadership Match When you reach the Leader level, you’ve shown you truly know what it takes to succeed and have the skills to help mentor and motivate others. Keep cultivating your future leaders and helping them grow and you can earn substantial bonuses for building such a strong team. For illustration purposes only, if the theoretical PEG Rate for Canada at the time this bonus is calculated were 1.30, then the cap per match amount in local currency would be calculated as follows: 18 Lead.
YOU MANAGING CONSULTANT 3 10% 12% EXECUTIVE CONSULTANT 2 12% MANAGING CONSULTANT 1 12% MANAGING CONSULTANT 3 MANAGING CONSULTANT 3 IN PRACTICE In this example, as a Managing Consultant 3, you earn a 12% Leadership Match on your Generation 1 Consultants and a 10% match on your Generation 2 Consultants. Qualified Generations are based on Paid-as Ranks. You can have multiple Generation 1 Consultants within a Leg. The Leadership Match is paid in addition to any other bonuses and commissions you might already be earning. GENERATION 1 GENERATION 1 GENERATION 2 GENERATION 1 19
When you are paid as an Executive Consultant 1 or higher, you earn shares of our monthly Leadership Pool. This pool is made from 4% of global monthly CV. You receive shares based on your Paid-as Rank. The total pool amount is divided equally by the total number of monthly shares Consultants earn. Leadership Pool SHARES EXECUTIVE CONSULTANT 1 1 EXECUTIVE CONSULTANT 2 3 EXECUTIVE CONSULTANT 3 5 EXECUTIVE CONSULTANT 4 10 PRESIDENTIAL CONSULTANT 20 LEADERSHIP POOL IS CALCULATED MONTHLY Lead. 20
Notices 1. LifeVantage Canada Ltd. is a Direct Sales/Network Marketing company with a Multi-Level Marketing compensation plan that provides flexibility and opportunity for individuals to earn extra income based upon selling products to Customers. 2. The focus of the LifeVantage Compensation Plan is to pay bonuses and commissions to LifeVantage Consultants based upon their product sales and the product sales of LifeVantage Consultants in their personal marketing team to ultimate end using Customers. 3. Every commission and/or compensation qualification requirement within this LifeVantage Compensation Plan may be achieved through product sales to Customers through a Consultant’s personal efforts and the efforts of the Consultants within their Downline. 4. LifeVantage products are not sold in retail stores and only licensed Consultants in Good Standing are authorized to sell LifeVantage products either directly from their own stock or indirectly through the company’s online shopping cart at www.lifevantage.com. 5. The Consultant Agreement consists of the LifeVantage Compensation Plan, the LifeVantage Consultant Application and Agreement, the LifeVantage Policies and Procedures, the LifeVantage Virtual Office Agreement (Back Office Agreement), and the LifeVantage Privacy Policy and Website Use Agreement. The Consultant Agreement governs the contractual relationship and obligations of each LifeVantage Consultant to LifeVantage. 6. A LifeVantage Consultant may not personally purchase for themselves nor encourage Customers or other Consultants to purchase more inventory than each can personally consume and/or sell to their personal Customers each month. In addition, each LifeVantage Consultant personally agrees that they may not place a new order in any given month unless 70% of all orders from previous months have been sold or consumed through personal/family use. 7. A LifeVantage Consultant must disclose the current Typical Earning Disclosure (TED) when making any earnings or lifestyle representations which can be found at the following link: [https://www.lifevantage.com/ca-en/]. 8. For Leadership Match, if after the individual caps per match are applied the monthly Leadership Match payout exceed 9% of monthly global CV, then all monthly Leadership Match earnings will be adjusted down by an equal percentage in order to ensure that the monthly Leadership Match does not exceed 9% of monthly global CV. 21
Notes 22
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Evolve © 2 02 4 Li fe Va nt ag e C or po ra tio n. A ll rig ht s re se rv ed . 24 06 28 .0 8
Evolve GUÍA DEL PLAN DE COMPENSACIÓN PARA CONSULTORES INDEPENDIENTES DE LIFEVANTAGE MÉXICO En vigor a partir del 1 de noviembre de 2024
Bienvenido 2
activatedLa vida es complicada, desordenada y hermosa. La vida pasa rápido y quieres vivirla al máximo. Pero las responsabilidades cotidianas, los miedos o las restricciones pueden frenarte. Mereces liberarte. Mereces ser tu mejor yo y vivir una vida sana y feliz en tus propios términos. LifeVantage está aquí para ayudarte. Nuestros productos están diseñados específicamente para activar la capacidad de tu cuerpo de crear una vigorosa salud, empezando a nivel celular. Y cuando te ves y te sientes lo mejor posible, querrás ayudar a los demás a hacer lo mismo. LifeVantage activa el bienestar financiero con la oportunidad de hacer crecer un negocio que puede cambiar para mejor la vida de las personas. Ahí es donde Evolve crea posibilidades. Evolve es un plan de compensación que te permite trabajar a tiempo parcial o completo. * Tanto si buscas simplemente compartir productos que cambian la vida o si quieres trabajar y crecer como mentor y líder profesional, ser Consultor Independiente de LifeVantage® te supondrá un reto positivo y te recompensará. a life ES HORA DE VIVIR CON PROPÓSITO. ES HORA DE INSPIRAR. ES HORA DE VIVIR ACTIVADO. *LifeVantage no garantiza el éxito económico de ningún Consultor. Tu éxito depende de tu habilidad, fortaleza y dedicación, y de tu capacidad para llevar a otros a conseguir emular estas cualidades. Nada de lo contenido en esta guía garantiza que vayas a tener éxito económico. LifeVantage no garantiza ningún ingreso ni éxito en el Rango. 3
BIENVENIDO 2 TÉRMINOS CLAVE 4-5 EL CAMINO DEL CONSULTOR 6-7 COMPARTIR Precios de los productos Ganancia de las ventas a clientes Bono de Ventas Personales Bonificación por Compartir 8 9 11 12 BONOS DE LANZAMIENTO Doble Bonificación por Compartir Bono de Avance de Rango SC1 14 15 CREAR Y CRECER Comisiones por Nivel 16-17 LIDERAR Bono de Igualación (de Liderazgo) Fondo de Bonos de Liderazgo 18-19 20 NOTIFICACIONES 21 ACTIVO Se te considera Consultor Activo cuando tu cuenta está En Regla y has cumplido el requisito de 150 de Volumen de Ventas en ese mes, con al menos 40 untos de compra personal. VOLUMEN COMISIONABLE (CV) El Volumen Comisionable es la medida sobre la que se pagan la mayoría de los bonos y comisiones. Cuando ganas un porcentaje de volumen, ganas un porcentaje del CV de un producto. El valor numérico del CV se obtiene normalmente multiplicando el Volumen de Ventas por el Índice PEG, salvo en los casos en que el CV se haya descontado por cualquier motivo. COMPRESIÓN Un proceso por el que el CV de las Comisiones por Nivel salta a los Consultores inactivos y pasa al siguiente Consultor Activo. VOLUMEN DE VENTAS DE CLIENTES (CSV) El Volumen de Ventas procedente de los pedidos de tus Clientes inscritos personalmente. LÍNEA DESCENDENTE Todos los Consultores patrocinados en tu genealogía se consideran parte de tu línea descendente. PATROCINADOR El Consultor LifeVantage que inscribe a un nuevo Cliente o Consultor. También conocido como Patrocinador de la Inscripción. ÁRBOL DE INSCRIPCIÓN La línea de Consultores enlazados consecutivamente a través de la inscripción de Consultores y no por colocación. El Árbol de Inscripciones no incluye ningún Patrocinador de Colocación. GENERACIÓN Los Consultores de tu Árbol de Inscripciones con el rango pagado de Consultor Líder 1 o superior son tus Generaciones. Una Generación 1 es el primer Consultor de cualquier línea descendente con un rango pagado de Consultor Líder 1 o superior. Una Generación 2 es el siguiente Consultor de esa línea con un Rango Pagado de Consultor Líder 1 o superior, y así sucesivamente. Índice de contenidos Términos Clave 4
EN REGLA En Regla significa que cumples el Acuerdo de Consultor, incluido el pago de las cuotas de renovación aplicables. VOLUMEN DE VENTAS DEL GRUPO (GSV) El Volumen de Ventas del Grupo es el Volumen de Ventas total tuyo y de todos los Clientes y Consultores de todo tu equipo. PERIODO DE LANZAMIENTO El mes en que te inscribes y los 3 meses calendario siguientes completos. PIERNA Una pierna comienza con un Consultor de Nivel 1 e incluye a todos los Consultores por debajo de él/ella. NIVEL El lugar que ocupa un Consultor en tu línea descendente en relación contigo. Todos los Consultores situados directamente debajo de ti en tu Árbol de Colocación son tu Nivel 1. Los Consultores situados directamente debajo de tus Consultores de Nivel 1 son tus Consultores de Nivel 2, y así sucesivamente. REGLA DEL VOLUMEN MÁXIMO (MVR) La cantidad máxima de GSV de cualquier línea o de tu propio Volumen de Ventas Personal y Volumen de Ventas de Clientes que puede contar para tu calificación mensual de Rango. PAGADO COMO RANGO Tu Pagado como Rango es el rango al que puedes optar cada mes. Tu Pagado como Rango determina muchos de tus bonos. Tu Pagado como Rango puede ser igual o inferior a tu Rango de Reconocimiento en función de tus calificaciones mensuales. ÍNDICE PEG El factor de conversión de moneda extranjera utilizado por LifeVantage para calcular los pagos a los Consultores. La utilización de un índice PEG permite a LifeVantage normalizar los pagos a los Consultores. El Índice PEG se revisa periódicamente y se fija en función de los tipos de cambio recientes. VOLUMEN DE VENTAS PERSONALES (PSV) El Volumen de Ventas procedente de tu cuenta personal. PATROCINADOR DE COLOCACIÓN Si colocas a un nuevo Consultor directamente debajo de ti en tu línea descendente, tú eres el Patrocinador de la Inscripción y el Patrocinador de Colocación. Sin embargo, si colocas a un nuevo Consultor debajo de un Consultor de línea descendente en el Árbol de Colocación, ese Consultor de línea descendente se convierte en el Patrocinador de Colocación de tu nuevo inscrito. ÁRBOL DE COLOCACIÓN Si se trata de un nuevo Consultor Inscrito, puedes colocarlo directamente debajo de ti en tu línea descendente o debajo de la posición de cualquier otro Consultor de tu línea descendente. Esto se considera tu Árbol de Colocación, también conocido como tu línea descendente o equipo. VOLUMEN DE VENTAS CALIFICADO (QSV) El Volumen de Ventas que cuenta para tu calificación mensual de Rango. ASCENSO DE RANGO Cuando cumplas los requisitos para que se te pague un Rango superior a tu Rango de Reconocimiento actual, "avanzarás" a ese Rango superior y tu Rango de Reconocimiento se actualizará para reflejar ese nuevo hito. RANGO DE RECONOCIMIENTO Tu Rango de Reconocimiento es el Rango más alto que has alcanzado a lo largo del Camino del Consultor. Tu Rango de Reconocimiento está sujeto a reclasificación una vez al año en función de los requisitos de mantenimiento de dicho rango. VOLUMEN DE VENTAS (SV) El valor numérico atribuido por LifeVantage a cada producto comisionable vendido y/o comprado. REQUISITO DE VOLUMEN DE VENTAS (SVR) La acumulación del Volumen de Ventas de tus Clientes y de tus propias compras para cumplir tu requisito mensual de Rango de Pago. LÍNEA ASCENDENTE Todos los Consultores que estén por encima de ti en tu Árbol de Inscripción y/o Colocación. 5
Evolve. Compartir. Construir y Crecer. Liderar. Tu camino como Consultor Independiente de LifeVantage puede llevarte a un mundo de posibilidades. Empieza por compartir los productos LifeVantage que te encantan con los Clientes para ayudarles a activar el bienestar y mejorar tu salud. Cuanto más compartas, más crecerás al encontrar a otros que quieran unirse a ti en el camino con un negocio propio. A medida que progreses en el Camino del Consultor, tu atención pasará a centrarse en crear y dirigir Consultores en tu equipo que estén preparados para pasar a la siguiente etapa de éxito. En cada etapa harás evolucionar tus ganancias, a ti mismo y a tu vida. CÓMO FUNCIONA Debes cumplir ciertos requisitos de volumen para permanecer Activo y ganar bonos y comisiones. Estos requisitos cambiarán, junto con los bonos y comisiones a los que puedes optar, a medida que avances en el camino y consigas avances de Rango. A medida que alcances las calificaciones para un Rango específico, se te reconocerá con tu "Rango de Reconocimiento" en ese nivel mientras permanezcas Activo. Sin embargo, tu "Pagado como Rango" fluctuará con tus calificaciones de mes a mes. 6
COMPARTIR ¡La gente dice que nuestros productos son demasiado buenos para no compartirlos! En las primeras etapas de tu negocio, empieza haciendo hincapié en compartir nuestros productos de bienestar vendiendo a los Clientes. Estas ventas son la forma más rápida de construir tu negocio y obtener beneficios rápidamente. CREAR Y CRECER Cuando llegues a Consultor Senior 1, deberías empezar a dedicar más tiempo a buscar nuevas personas para añadir a tu equipo de ventas. Equilibra tus esfuerzos entre la venta y el patrocinio, que es vital para tu crecimiento continuo. Cuanto más crezca tu equipo de ventas, más tiempo dedicarás a construir tu negocio y a ayudar a tus Consultores a alcanzar sus propios objetivos. C O N S U LT O R C O N S U LT O R 1 C O N S U LT O R 2 C O N S U LT O R 3 C O N S U LT O R S EN IO R 1 C O N S U LT O R S EN IO R 2 C O N S U LT O R S EN IO R 3 C O N S U LT O R LÍ D ER 1 C O N S U LT O R LÍ D ER 2 C O N S U LT O R LÍ D ER 3 C O N S U LT O R EJ EC U TI V O 1 C O N S U LT O R EJ EC U TI V O 2 C O N S U LT O R EJ EC U TI V O 3 C O N S U LT O R EJ EC U TI V O 4 C O N S U LT O R P R ES ID EN C IA L C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 REQUISITO DE COMPRA PERSONAL 40 40 40 40 40 40 40 40 40 40 40 40 40 40 REQUISITO DE VOLUMEN DE VENTAS 150 200 250 300 300 300 300 300 300 300 300 300 300 300 VOLUMEN DE VENTAS DEL GRUPO 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 REGLA DEL VOLUMEN MÁXIMO 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 LIDERAR El liderazgo es más que el Rango que aparece junto a tu nombre. Enseña con el ejemplo a crear un negocio LifeVantage exitoso. Reconoce, anima y edifica a los miembros de tu equipo, ¡y juntos podrán disfrutar de las recompensas de su éxito compartido! El Camino del Consultor Evolve está especialmente diseñado para ayudar a los Consultores de LifeVantage a desarrollar la confianza, la comunidad y el liderazgo. Cada avance de Rango ofrece la oportunidad de celebrarlo con mayores posibilidades de ganar dinero. 7
CADA PRODUCTO DE LIFEVANTAGE TIENE 3 PRECIOS. 03. CONSULTOR El precio de Consultor es inferior al precio de Venta Única y al precio de Suscripción, independientemente del tipo de pedido, y representa el precio más bajo disponible. 02. SUSCRIPCIÓN El precio de suscripción tiene un descuento sobre el precio de venta al público de una sola vez. Los productos adquiridos por los Clientes en Suscripción tienen derecho al descuento. 01. VENTA ÚNICA El precio anunciado al Cliente para todos los productos, tanto si se compran en línea como si te los compra directamente a ti. Precios de los productos 8
El Beneficio de las Ventas a Cliente te permite ganar comisiones por cada pedido. Funciona así: Cuando tus Clientes piden productos LifeVantage, ganas la diferencia entre el precio que pagó tu Cliente y el precio de Consultor. EN LA PRÁCTICA En estos ejemplos, dos Clientes piden el mismo conjunto de productos. El Cliente de la izquierda adquiere los productos al precio total de venta al por menor por una sola vez, sin IVA, de MX$2,000. El precio de Consultor sin IVA para ese pedido es de MX$1,600. Así, obtienes una Ganancia de las Ventas a Clientes de MX$400. El Cliente de la derecha pide los mismos productos en un pedido de Suscripción por el precio de Suscripción sin IVA de MX$1,800. El precio de Consultor sin IVA para ese pedido es de MX$1,600. Así, obtienes una Beneficio de las Ventas a Cliente de MX$200. EL BENEFICIO DE LAS VENTAS AL CLIENTE SE CALCULA DIARIAMENTE. *Podrá abonarse 3 días hábiles después de la fecha de cálculo del bono a los Consultores calificados que se encuentren en un mercado elegible y hayan alcanzado el rango de reconocimiento de Consultor Senior 1 o superior. Los Consultores que no reúnan los requisitos para el desembolso diario recibirán el pago de su bono semanalmente. Compartir tu entusiasmo por LifeVantage y vender productos a los clientes es la esencia de ser un Consultor. Además del Beneficio de las Ventas a Cliente, puedes ganar sobre el total de ventas mensuales de productos con el Bono por Ventas Personales. Ganancia de las ventas a clientes Compartir. Debes estar Activo para comisionar este bono VENTA AL POR MENOR PRECIO DE COMPRA MX$2,000 BENEFICIO DE LAS VENTAS A CLIENTE MX$400 Menos PRECIO DE CONSULTOR MX$1,600 SUB PRECIO DE COMPRA MX$1,800 BENEFICIO DE LAS VENTAS AL CLIENTE MX$200 Menos PRECIO DE CONSULTOR MX$1,600 Es importante tener en cuenta que, aunque los precios publicados pueden incluir el Impuesto sobre el Valor Añadido (IVA), todas las bonificaciones y/o comisiones se pagan únicamente sobre los valores sin IVA. 9
Los clientes pueden cancelar su Suscripción para salir del programa en cualquier momento. ¡Los pedidos de suscripción incluyen recompensas para todos los Clientes! Obtén más información sobre el programa de fidelización LifeVantage Rewards Circle en LifeVantage.com. Suscríbete. Ahorra. Consigue recompensas. 10
SV DEL CLIENTE NIVEL DE BONO TÍTULO DE RECONOCIMIENTO 500 – 999.99 5% ÓNIX 1,000 – 1,999.99 10% ESMERALDA 2,000 – 3,999.99 15% ZAFIRO 4,000+ 20% DIAMANTE Bono de Ventas Personales El Bono de Ventas Personales te recompensa por tus compras y tus ventas personales a Clientes. Cuando tu Volumen de Ventas Personales (PSV) y tu Volumen de Ventas de Clientes (CSV) sumen 500 SV o más en un solo mes, podrás optar a un Bono de Ventas Personales adicional. El Bono se paga sobre un porcentaje del CV. Cuando tu PSV y CSV alcancen los 500 SV en un solo mes, se te reconocerá con un título especial antes de tu Rango, empezando por Ónix a los 500 SV y cambiando a Esmeralda a los 1000 SV, Zafiro a los 2000 SV y Diamante a los 4000 SV y superiores. EN LA PRÁCTICA Por ejemplo, si tus Clientes piden productos por valor de 2200 SV en el mes, puedes optar al nivel de bonificación del 15%. Este bono se paga sobre el CV, que tiene en cuenta las promociones o descuentos que los Clientes hayan redimido. A título meramente ilustrativo, si el índice PEG teórico para México en el momento en que se calculó este bono fuera de 20, el importe del bono en moneda local se calcularía así: • SV se multiplica por el índice teórico MX PEG para obtener el CV. El CV luego se multiplica por el porcentaje de bono aplicable. • 2200 SV X 20 (índice teórico MX PEG) X 15% = MX$6,600. Compartir. Debes estar Activo para comisionar este bono EL BONO DE VENTAS PERSONALES SE CALCULA MENSUALMENTE 2200 SV ZAFIRO MX$6,600 BONO DE VENTAS PERSONAL Tú ganas 15% del CV Y el título de MINORISTA SUB TÚ 11
LA BONIFICACIÓN POR COMPARTIR SE CALCULA DIARIAMENTE*. *Podrá abonarse 3 días hábiles después de la fecha de cálculo del bono a los Consultores calificados que se encuentren en un mercado elegible y hayan alcanzado el rango de reconocimiento de Consultor Senior 1 o superior. Los Consultores que no reúnan los requisitos para el desembolso diario recibirán el pago de su bono semanalmente. La Bonificación por Compartir te recompensa por vender productos a nuevos Consultores y ayudarles a realizar ventas tempranas a Clientes. Gana un 10% sobre el Volumen de Ventas Personal y el Volumen de Ventas de Clientes de tu nuevo Consultor inscrito personalmente. Este bono se paga sobre las ventas del mes de inscripción del nuevo Consultor, hasta un máximo de 100 USD por Consultor recién inscrito.† EN LA PRÁCTICA Por ejemplo, si vendes productos por valor de 250 SV a tu nuevo Consultor inscrito personalmente y tu nuevo Consultor inscrito personalmente vende productos por valor de 500 SV a sus Clientes inscritos personalmente en el mes de inscripción de ese nuevo Consultor, tienes derecho a la Bonificación por Compartir del 10% sobre 750 SV. Este bono se paga sobre el CV, que tiene en cuenta el Índice PEG y las promociones o descuentos que se hayan canjeado. A título meramente ilustrativo, si el índice PEG teórico para México en el momento en que se calculó este bono fuera de 20, el importe del bono en moneda local se calcularía así: • SV se multiplica por el índice teórico MX PEG para obtener el CV. El CV luego se multiplica por el porcentaje de bono aplicable. • 750 SV X 20 (índice teórico MX PEG) X 10% = MX$1,500. Bonificación por Compartir. Vendes a Consultores Recién Inscritos Consultores Recién Inscritos Venden a Clientes Inscritos Personalmente En el Mes de Inscripción de los Consultores Recién Inscritos TÚ C 250 SV 500 SV Tú ganas 10% del CV MX$1,500 BONIFICACIÓN POR COMPARTIR Debes estar Activo para comisionar este bono C 12
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DOBLE BONIFICACIÓN POR COMPARTIR La Doble Bonificación por Compartir te recompensa por vender productos a nuevos Consultores y ayudarles a realizar ventas tempranas a sus Clientes durante tu Periodo de lanzamiento. Durante tu Periodo de lanzamiento, gana un 10% sobre el Volumen de Ventas Personales y el Volumen de Ventas de Clientes de tu nuevo Consultor inscrito personalmente. Este bono se paga sobre las ventas del mes de inscripción del nuevo Consultor, hasta un máximo de 100 USD por Consultor recién inscrito.† EN LA PRÁCTICA Por ejemplo, si durante tu Periodo de lanzamiento vendes 250 SV de productos a tu nuevo Consultor inscrito personalmente y tu nuevo Consultor inscrito personalmente vende 500 SV de productos Bonos de Lanzamiento a sus Clientes inscritos personalmente en el mes de inscripción de ese nuevo Consultor, tú tienes derecho a la Doble Bonificación por Compartir del 10% sobre 750 SV. Este bono se paga sobre el CV, que tiene en cuenta el Índice PEG y las promociones o descuentos que se hayan canjeado. A título meramente ilustrativo, si el índice PEG teórico para México en el momento en que se calculó este bono fuera de 20, el importe del bono en moneda local se calcularía así: • SV se multiplica por el índice teórico MX PEG para obtener el CV. El CV luego se multiplica por el porcentaje de bono aplicable. • 750 SV X 20 (índice teórico MX PEG) X 10% = MX$1,500. Durante el Periodo de lanzamiento Vendes a Consultores Recién Inscritos Consultores Recién Inscritos Vende a Clientes Inscritos Personalmente En el Mes de Inscripción de los Consultores Recién Inscritos TÚ C 250 SV 500 SV Tú ganas 10% del CV MX$1,500 LA DOBLE BONIFICACIÓN POR COMPARTIR Debes estar Activo para comisionar este bono Estos bonos pueden impulsarte desde el principio. Tu Periodo de lanzamiento comienza el día en que te inscribes como Consultor y continúa durante los 3 meses calendario siguientes. LA DOBLE BONIFICACIÓN POR COMPARTIR, SE CALCULA DIARIAMENTE*. *Podrá abonarse 3 días hábiles después de la fecha de cálculo del bono a los Consultores calificados que se encuentren en un mercado elegible y hayan alcanzado el rango de reconocimiento de Consultor Senior 1 o superior. Los Consultores que no reúnan los requisitos para el desembolso diario recibirán el pago de su bono semanalmente. C 14 †IMPORTE MÁXIMO: La Doble Bonificación por Compartir y Bono de Participación tiene un tope de 100 USD por Consultor recién inscrito. A título meramente ilustrativo, si el índice PEG teórico para México en el momento en que se calculó este bono fuera de 20, el importe máximo de este bono en moneda local se calcularía así: El importe máximo en USD se multiplica por el índice PEG teórico de MX. Por ejemplo, el importe máximo de la Doble Bonificación por Compartir sería de 100 USD X 20 (índice teórico MX PEG) = MX$2,000.
TÚ GANAS MX$3,000 Cuando avances al Rango de CONSULTOR SENIOR 1 durante tu Periodo de lanzamiento TÚ EL BONO DE AVANCE DE RANGO SC1, SE CALCULA MENSUALMENTE Bono de Avance de Rango SC1 Cuando alcances el Rango de Consultor Senior 1 por primera vez durante tu Periodo de lanzamiento, ganarás un Bono de Avance de Rango SC1 de MX$3,000. Cálculo basado en 150 USD X 20 (índice teórico MX PEG) = MX$3,000. Debes estar Activo para comisionar este bono 15
Comisiones por Nivel C O N S U LT O R C O N S U LT O R 1 C O N S U LT O R 2 C O N S U LT O R 3 C O N S U LT O R S EN IO R 1 C O N S U LT O R S EN IO R 2 C O N S U LT O R S EN IO R 3 C O N S U LT O R LÍ D ER 1 C O N S U LT O R LÍ D ER 2 C O N S U LT O R LÍ D ER 3 C O N S U LT O R EJ EC U TI V O 1 C O N S U LT O R EJ EC U TI V O 2 C O N S U LT O R EJ EC U TI V O 3 C O N S U LT O R EJ EC U TI V O 4 C O N S U LT O R P R ES ID EN C IA L 1 C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 40 40 40 40 40 40 40 40 40 40 40 40 40 40 150 200 250 300 300 300 300 300 300 300 300 300 300 300 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1’000,000 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 NIVEL 1 5% 7% 9% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% NIVEL 2 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% 7% 7% NIVEL 3 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% NIVEL 4 3% 5% 6% 6% 6% 6% 6% 6% 6% NIVEL 5 3% 5% 6% 6% 6% 6% 6% 6% NIVEL 6 3% 4% 5% 5% 5% 5% 5% NIVEL 7 3% 4% 4% 4% 4% 4% 4% NIVEL 8 3% 3% 3% 3% 3% 3% NIVEL 9 3% 3% 3% 3% 3% 3% Ganas Comisiones por Nivel por crear tu equipo y enseñar a los que patrocinas a crear sus propios equipos fuertes. Como Consultor Activo, se te paga un porcentaje de comisiones del CV de las ventas de tu equipo. Tu Rango de Pago determina los porcentajes que ganas y el número de niveles en los que puedes recibir una comisión. CÓMO FUNCIONAN LOS NIVELES Todos los Consultores situados directamente debajo de ti en tu Árbol de Colocación son tu Nivel 1. A los Consultores se les paga el Beneficio de las Ventas al Cliente y el Bono por Ventas Personales por las compras de sus Clientes inscritos personalmente. Los inscritos no tienen derecho a una Comisión por Nivel sobre sus Clientes personales. LAS COMISIONES POR NIVEL SE CALCULAN MENSUALMENTE 16 Crear y Crecer. PPR SVR GSV MVR
Compresión Activa 9 8 5 3 7 2 6 1 PEDIDO MC1 EMPIEZA AQUÍ C1 C3 INACTIVO SC3 MC3 INACTIVO EC3 EC4 MC1 INACTIVO PRESIDENCIAL 4 TÚ MC1 activo calificado para ganar hasta 5 Niveles. Son de Nivel 1, por lo que se les paga el 10%. C1 activo calificado para ganar en el Nivel 1. Se trata del Nivel 2, por lo que no son elegibles y el Nivel 2 no se paga. El C3 activo solo está calificado para ganar en 2 Niveles. Se trata del Nivel 3, por lo que no son elegibles y el Nivel 3 no se paga. Inactivo. Mediante la Compresión Activa, este Nivel no se califica y se pasa al nivel 4. Como el Consultor que está debajo de ti está inactivo, te conviertes en Nivel 4 medi- ante la Compresión Activa. Como SC3 Activo, estás calificado para ganar en el Nivel 4 y se te paga el 3%. MC3 activo calificado para ganar en 9 Niveles y pagado en el Nivel 5 al 6%. Inactivo. Mediante la Compresión Activa, este Nivel no se califica y se pasa al Nivel 6. El nuevo Nivel 6 es un EC3 Activo calificado para ganar en 9 Niveles. Se les paga el Nivel 6 al 5%. El EC4 activo se paga en el Nivel 7 al 4%. El MC1 activo solo tiene derecho a ganar hasta el Nivel 5. Como se trata del Nivel 8, no son elegibles y no se paga el Nivel 8. Inactivo. Mediante la Compresión Activa, este Nivel no se califica y se pasa al Nivel 9. El PC Activo está calificado para el Nivel 9 y ha pagado el 3%. Un proceso por el que el CV de las Comisiones por Nivel salta a los Consultores inactivos y pasa al siguiente Consultor Activo. EN LA PRÁCTICA Este ejemplo muestra cómo el volumen podría acumularse en una pierna de tu equipo. Eres un Consultor Senior 3 de nivel 5 por encima del Consultor que ganó el volumen. Empezando por la parte inferior del gráfico, ves cómo la CV fluye hacia arriba y lo que ocurre por debajo y por encima de ti. CLAVE Calificado (Pagado) No Calificado (No Pagado) Inactivo (Rolls Up) 17
C O N S U LT O R LÍ D ER 2 C O N S U LT O R LÍ D ER 3 C O N S U LT O R EJ EC U TI V O 1 C O N S U LT O R EJ EC U TI V O 2 C O N S U LT O R EJ EC U TI V O 3 C O N S U LT O R EJ EC U TI V O 4 C O N S U LT O R P R ES ID EN C IA L 1 GENERACIÓN 1 7% 12% 15% 20% 20% 20% 20% GENERACIÓN 2 10% 12% 15% 20% 20% 20% GENERACIÓN 3 10% 12% 15% 20% 20% GENERACIÓN 4 10% 12% 15% 20% GENERACIÓN 5 10% 12% 15% GENERACIÓN 6 10% 12% GENERACIÓN 7 12% LÍMITE POR IGUALACIÓN $1,000 $2,500 $5,000 $7,500 $10,000 $15,000 $15,000 Cuando se te paga como Consultor Líder 2 o superior en el mes, puedes recibir un Bono de Igualación (de Liderazgo) en Generaciones calificadas. El Bono de Igualación (de Liderazgo) se paga sobre tus Comisiones calificadas de Nivel de las Generaciones. CÓMO FUNCIONAN LAS GENERACIONES Tu Generación 1 es el primer Consultor de cualquier Pierna de tu equipo con un Rango pagado de Consultor Líder 1 o superior. Una Generación 2 es el siguiente Consultor de esa Pierna con un Rango Pagado de Consultor Líder 1 o superior, y así sucesivamente. EL BONO DE IGUALACIÓN (DE LIDERAZGO) SE CALCULA MENSUALMENTE EL BONO DE IGUALACIÓN (DE LIDERAZGO) PUEDE PAGAR HASTA UN MÁXIMO DEL 9% DEL CV GLOBAL MENSUAL. • El Límite por igualación en USD se multiplica por el índice PEG teórico de MX. • Por ejemplo, el Límite por igualación para un Consultor Líder 2 sería de 1,000 USD X 20 (índice teórico MX PEG) = MX$20,000. Bono de Igualación (de Liderazgo) Cuando alcanzas el nivel de Líder, has demostrado que realmente sabes lo que hace falta para triunfar y que tienes las habilidades necesarias para ayudar a orientar y motivar a los demás. Sigue cultivando a tus futuros líderes y ayudándoles a crecer, y podrás ganar importantes bonos por formar un equipo tan fuerte. A título meramente ilustrativo, si el índice PEG teórico para México en el momento en que se calculó este bono fuera de 20, el Límite por igualación en moneda local se calcularía así: 18 Liderar.
TÚ CONSULTOR LÍDER 3 10% 12% CONSULTOR EJECUTIVO 2 12% CONSULTOR LÍDER 1 12% CONSULTOR LÍDER 3 CONSULTOR LÍDER 3 EN LA PRÁCTICA En este ejemplo, como Consultor Líder 3, ganas un 12% del Bono de Igualación (de Liderazgo) en tus Consultores de la Generación 1 y un 10% del Bono de Igualación (de Liderazgo) en tus Consultores de la Generación 2. Las Generaciones Calificadas se basan en Pagado como Rango Puedes tener varios Consultores de Generación 1 dentro de una Pierna. El Bono de Igualación (de Liderazgo) se paga además de otros bonos y comisiones que ya puedas estar ganando. GENERACIÓN 1 GENERACIÓN 1 GENERACIÓN 2 GENERACIÓN 1 19
Cuando cobras como Consultor Ejecutivo 1 o superior, ganas acciones de nuestro Fondo de Bonos de Liderazgo mensual. Este grupo se compone del 4% del CV mensual global. Recibes acciones según tu Pagado como Rango. El importe total del grupo se divide a partes iguales por el número total de acciones mensuales que ganan los Consultores. Fondo de Bonos de Liderazgo ACCIONES CONSULTOR EJECUTIVO 1 1 CONSULTOR EJECUTIVO 2 3 CONSULTOR EJECUTIVO 3 5 CONSULTOR EJECUTIVO 4 10 CONSULTOR PRESIDENCIAL 20 FONDO DE BONOS DE LIDERAZGO SE CALCULA MENSUALMENTE Liderar. 20
Notificaciones 1. LifeVantage de México S. de R.L. de C.V. es una empresa de Ventas Directas/Marketing de Red con un plan de compensación de Marketing Multinivel que proporciona flexibilidad y oportunidad para que las personas obtengan ingresos extra basados en la venta de productos a Clientes. 2. El objetivo del Plan de Compensación de LifeVantage es pagar bonos y comisiones a los Consultores de LifeVantage en función de sus ventas de productos y de las ventas de productos de los Consultores de LifeVantage de su equipo personal de marketing a Clientes usuarios finales. 3. Los productos LifeVantage no se venden en tiendas al por menor y solo los Consultores con licencia En Regla están autorizados a vender productos LifeVantage, ya sea directamente de sus propias existencias o indirectamente a través del carrito de la compra en línea de la empresa en www.lifevantage.com. 4. El Acuerdo de Consultor está formado por el Plan de Compensación LifeVantage, la Solicitud y Acuerdo de Consultor LifeVantage, las Políticas y Procedimientos de LifeVantage, el Acuerdo de Oficina Virtual LifeVantage (Acuerdo de Back Office) y la Política de Privacidad y Acuerdo de Uso de la Página Web de LifeVantage. El Acuerdo de Consultor regula la relación contractual y las obligaciones de cada Consultor de LifeVantage con LifeVantage. 5. Un Consultor LifeVantage no puede comprar personalmente para sí mismo ni animar a los Clientes u otros Consultores a comprar más inventario del que cada uno pueda consumir personalmente y/o vender a sus Clientes personales cada mes. Además, cada Consultor LifeVantage acepta personalmente que no podrá realizar un nuevo pedido en un mes determinado a menos que el 70% de todos los pedidos de los meses anteriores se hayan vendido o consumido mediante uso personal/familiar. 6. Los ingresos por ventas de los Consultores divulgados son ingresos brutos potenciales y no netos de otros gastos comerciales, y no necesariamente representativos de los ingresos reales, si los hubiera, que un Consultor puede ganar o ganará a través del Plan de Compensación LifeVantage. Los ingresos de un Consultor dependerán de la diligencia individual, del esfuerzo en el trabajo y de las condiciones del mercado. LifeVantage no garantiza ningún ingreso ni éxito en el Rango. 7. Para el Bono de igualación (de Liderazgo), si después de aplicar los límites individuales por coincidencia el pago mensual del Bono de igualación (de Liderazgo) supera el 9% del CV global mensual, entonces todas las ganancias mensuales del Bono de igualación (de Liderazgo) se ajustarán a la baja en un porcentaje igual para garantizar que el Bono de igualación (de Liderazgo) mensual no supere el 9% del CV global mensual. 21
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Evolve © 2 02 4 Li fe Va nt ag e C or po ra tio n. A ll rig ht s re se rv ed . 24 09 09 .0 3
Evolve COMPENSATION PLAN GUIDE FOR INDEPENDENT LIFEVANTAGE CONSULTANTS UNITED KINGDOM Effective 1 November 2024
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activatedLife. It’s complicated. Messy. Beautiful. It goes by fast, and you want to live life to the fullest. But everyday responsibilities, fears, or restrictions can hold you back. You deserve to break free. You deserve to be your best self and live a healthy, happy life on your terms. LifeVantage is here to help. Our products are purposefully designed to activate your body’s ability to create vibrant health, starting at the cellular level. And when you look and feel your best, you’ll want to help others do the same. LifeVantage activates financial wellness with the opportunity to grow a business that can change people’s lives for the better. That’s where Evolve creates possibilities. Evolve is a compensation plan that allows you to work part-time or full-time.* Whether you are looking to simply share life-changing products or wanting to work and grow as a professional mentor and leader, being an Independent LifeVantage® Consultant will positively challenge and reward you. to life IT’S TIME TO LIVE WITH PURPOSE. IT’S TIME TO INSPIRE REMARKABLE. IT’S TIME TO LIVE ACTIVATED. *LifeVantage does not promise the financial success of any Consultant. Your success depends on your skill, fortitude, dedication, and your ability to lead others to emulate these qualities. Nothing in this guide is a representation that you will be financially successful. LifeVantage does not guarantee any income or Rank success. 3
WELCOME 2 KEY TERMS 4-5 THE CONSULTANT PATH 6-7 SHARE Product Pricing Customer Sales Profit Personal Sales Bonus Sharing Bonus 8 9 11 12 LAUNCH BONUSES Sharing Bonus Doubler SC1 Rank Advancement Bonus 14 15 BUILD & GROW Level Comissions 16-17 LEAD Leadership Match Leadership Pool 18-19 20 LEGAL NOTICES 21 ACTIVE You are considered an Active Consultant when your account is in Good Standing and you have met the 150 Sales Volume Requirement in that month, with at least 40 Personal Sales Volume. COMMISSIONABLE VOLUME (CV) Commissionable Volume is the measurement on which most bonuses and commissions are paid. When you earn a percentage of volume, you earn a percentage of a product's CV. The numeric value for CV is typically obtained when Sales Volume is multiplied by the PEG Rate, except in cases where CV has been discounted for any reason. COMPRESSION A process by which CV for Level Commissions skips inactive Consultants and rolls up to the next Active Consultant. CUSTOMER SALES VOLUME (CSV) The Sales Volume originating from your personally enrolled Customers’ orders. DOWNLINE All of the Consultants sponsored into your genealogy are considered part of your downline. ENROLLER The LifeVantage Consultant who enrolls a new Customer or Consultant. Also known as the Enrollment Sponsor. ENROLLMENT TREE The line of Consultants consecutively linked through Consultant enrollment and not by placement. The Enrollment Tree does not include any Placement Sponsors. GENERATION Consultants in your Enrollment Tree with the Paid-as Rank of Managing Consultant 1 or higher are your Generations. A Generation 1 is the first Consultant in any downline with a Paid-as Rank of Managing Consultant 1 or higher. A Generation 2 is the next Consultant in that Leg with a Paid-as Rank of Managing Consultant 1 or higher, and so on.. Table of Contents Key Terms 4
GOOD STANDING Good Standing means you are in compliance with the Consultant Agreement, including payment of any applicable renewal fees. GROUP SALES VOLUME (GSV) Group Sales Volume is the total Sales Volume from you and all the Customers and Consultants in your entire team. LAUNCH PERIOD Your Launch Period includes the month you enroll and the following 3 full calendar months. LEG A Leg begins with a Level 1 Consultant and includes all of the Consultants beneath them. You have as many Legs as you have Level 1 Consultants. LEVEL The location a Consultant has in your downline in relation to you. All of the Consultants directly below you in your Placement Tree are your Level 1. Consultants placed directly below your Level 1 Consultants are your Level 2, and so on. MAXIMUM VOLUME RULE (MVR) The maximum amount of GSV from any one Leg or from your own Personal Sales Volume and Customer Sales Volume that can count toward your monthly Rank qualification. PAID-AS RANK Your Paid-as Rank is the Rank for which you qualify each month. Your Paid-as Rank determines many of your bonuses. Your Paid-as Rank may be the same as or lower than your Recognition Rank depending on your monthly qualifications. PEG RATE The foreign currency conversion factor used by LifeVantage to calculate payments to Consultants. Using a PEG Rate allows LifeVantage to normalize payments to Consultants. The PEG Rate is periodically reviewed and set based on recent foreign exchange rates and projected foreign exchange rates. PERSONAL SALES VOLUME (PSV) The Sales Volume originating from your personal account. PLACEMENT SPONSOR If you place a new Consultant directly below you in your downline, you are the Enrollment Sponsor and Placement Sponsor. However, if you place a new Consultant below a downline Consultant in the Placement Tree, that downline Consultant becomes your new enrollee’s Placement Sponsor. PLACEMENT TREE If you are a new Consultant's Enroller, you may place them directly below you in your downline or under any other downline Consultant’s position. This is considered your Placement Tree, also referred to as your downline or team. QUALIFYING SALES VOLUME (QSV) The Sales Volume that counts toward your monthly Rank qualification. RANK ADVANCING When you meet the qualifications to be paid as a Rank higher than your current Recognition Rank, you will “advance” to that higher Rank, and your Recognition Rank will be updated to reflect that new milestone. RECOGNITION RANK Your Recognition Rank is the highest Rank you have achieved along the Consultant Path. Your Recognition Rank is subject to reclassification once per year based on the maintenance requirements for that Rank. SALES VOLUME (SV) The numeric value attributed by LifeVantage to each commissionable product sold and/or purchased. SALES VOLUME REQUIREMENT (SVR) The accumulation of your Customers Sales Volume and your Personal Sales Volume to meet your monthly Paid-as Rank requirement. UPLINE All of the Consultants above you in your Enrollment and/or Placement Tree. 5
Evolve. Share. Build & Grow. Lead. Your path as an Independent LifeVantage Consultant can lead to a world of possibilities. Start by sharing the LifeVantage products that you love with Customers to help them activate wellness and improve their health. The more you share, the more you’ll grow as you find others who want to join you on the path with a business of their own. As you progress along the Consultant Path, your attention will shift to building and leading Consultants on your team who are ready to grow to the next stage of success. At every stage you’ll evolve your earnings, yourself, and your life. . HOW IT WORKS You must meet certain volume requirements to stay Active and earn bonuses and commissions. These requirements will change, along with the bonuses and commissions you can qualify for, as you move along the path and earn Rank advancements. As you reach the qualifications for a specific Rank, you will be recognized with your “Recognition Rank” at that level for as long as you remain Active. However, your “Paid-as Rank” will fluctuate with your qualifications from month to month. 6
SHARE People say our products are too good not to share! In the early stages of your business, begin with a strong emphasis on sharing our wellness products by selling to Customers. These sales are the fastest way to build your business and see a speedy profit. BUILD & GROW By the time you reach Senior Consultant 1, you should begin spending more time finding new people to add to your sales team. Balance your efforts between selling and sponsoring, which is vital to your continued growth. The larger you grow your sales team, the more time you will spend building your business and helping your Consultants reach their own goals. C O N S U LT A N T C O N S U LT A N T 1 C O N S U LT A N T 2 C O N S U LT A N T 3 S E N IO R C O N S U LT A N T 1 S E N IO R C O N S U LT A N T 2 S E N IO R C O N S U LT A N T 3 M A N A G IN G C O N S U LT A N T 1 M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 PERSONAL PURCHASE REQUIREMENT 40 40 40 40 40 40 40 40 40 40 40 40 40 40 SALES VOLUME REQUIREMENT 150 200 250 300 300 300 300 300 300 300 300 300 300 300 GROUP SALES VOLUME 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 MAXIMUM VOLUME RULE 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 LEAD Leadership is more than the Rank next to your name. Teach by example how to build a successful LifeVantage business. Acknowledge, encourage, and lift your team members, and together you can enjoy the rewards of your shared success! The Consultant Path Evolve is uniquely designed to help LifeVantage Consultants develop confidence, community, and leadership. Each Rank advancement offers the opportunity to celebrate with increased earning possibilities. 7
EACH LIFEVANTAGE PRODUCT HAS 3 PRICES. 03. CONSULTANT Consultant price is lower than the One Time Retail price and the Subscription price, regardless of the order type, and represents the lowest price available. 02. SUBSCRIPTION Subscription price is a discount from One Time Retail price. Products purchased by Customers on Subscription are eligible for the discount. 01. ONE-TIME RETAIL The advertised Customer price for all products, whether purchased online or directly from you. Product Pricing 8
It is important to note that while the published prices may be inclusive of Value-Added Tax (VAT), all bonuses and/or commissions are paid on VAT-exclusive values only. Customer Sales Profit allows you to earn commissions on every order. Here's how it works: When your Customers order LifeVantage products, you earn the difference between the price your Customer paid and the Consultant price. IN PRACTICE In these examples, 2 Customers are ordering the same set of products. The Customer on the left purchases the products at the full VAT-exclusive One Time Retail price of £75. The VAT-exclusive Consultant price for that order is £60. So, you earn a Customer Sales Profit of £15. The Customer on the right orders the same products on a Subscription order for the VAT-exclusive Subscription price of £67.50. The VAT-exclusive Consultant price for that order is £60. So, you earn a Customer Sales Profit of £7.50. . CUSTOMER SALES PROFIT IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. Sharing your excitement about LifeVantage and selling products to Customers is at the heart of being a Consultant. In addition to Customer Sales Profit, you can earn on total monthly product sales with the Personal Sales Bonus. Customer Sales Profit Share. RETAIL £75 PURCHASE PRICE £15 CUSTOMER SALES PROFIT subtract £60 CONSULTANT PRICE SUB £67.50 PURCHASE PRICE £7.50 CUSTOMER SALES PROFIT subtract £60 CONSULTANT PRICE Must be Active to qualify 9
Customers may cancel their Subscription to opt out of the program at any time. Subscription orders come with rewards for all Customers! Learn more about the LifeVantage Rewards Circle loyalty program at LifeVantage.com Subscribe. Save. Get Rewards. 10
Must be Active to qualify CUSTOMER SV BONUS TIER RECOGNITION TITLE 500 – 999.99 5% ONYX 1,000 – 1,999.99 10% EMERALD 2,000 – 3,999.99 15% SAPPHIRE 4,000+ 20% DIAMOND Personal Sales Bonus The Personal Sales Bonus rewards you on your personal Customer sales. When your Customer Sales Volume (CSV) totals 500 SV or more in a single month, you become eligible for an additional Personal Sales Bonus. The Bonus is paid on a percentage of CV. When your CSV reaches 500 in a single month, you will be recognized with a special title before your Rank, starting with Onyx at 500 SV then changing to Emerald at 1000 SV, Sapphire at 2000 SV, and Diamond at 4000 SV and higher. IN PRACTICE For example, if your Customers order 2200 SV worth of products in the month, you are eligible for the 15% bonus tier. This bonus is paid on CV, which takes into account the PEG Rate and any promos or discounts Customers may have redeemed. For illustration purposes only, if the theoretical PEG Rate for the UK at the time this bonus is calculated were .75, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical UK PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 2200 SV X .75 (theoretical UK PEG Rate) X 15% = £247.50. PERSONAL SALES BONUS IS CALCULATED MONTHLY Share. 11 2200 SV SAPPHIRE £247.50 PERSONAL SALES BONUS you earn 15% of CV and the title of RETAIL SUB YOU
SHARING BONUS IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. The Sharing Bonus rewards you for selling products to new Consultants and helping them make early sales to Customers. Earn 10% on the Personal Sales Volume and Customer Sales Volume of your new personally enrolled Consultant. This bonus is paid on sales in the new Consultant’s enrollment month, up to a maximum of US$100 per newly enrolled Consultant. † IN PRACTICE For example, if you sell 250 SV worth of products to your new personally enrolled Consultant and your new personally enrolled Consultant sells 500 SV worth of products to their personally enrolled Customers in that new Consultant’s enrollment month, you are eligible for the 10% Sharing Bonus on 750 SV. This bonus is paid on CV, which takes into account the PEG Rate and any promos or discounts that may have been redeemed. For illustration purposes only, if the theoretical PEG Rate for the UK at the time this bonus is calculated were .75, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical UK PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 750 SV X .75 (theoretical UK PEG Rate) X 10% = £56.25. 12 Sharing Bonus. Sell to Newly Enrolled Consultant Newly Enrolled Consultant Sells to Personally Enrolled Customers In the Newly Enrolled Consultant’s Enrollment Month YOU C 250 SV 500 SV You Earn 10% of CV £56.25 SHARING BONUS Must be Active to qualify C
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SHARING BONUS DOUBLER The Sharing Bonus Doubler rewards you for selling products to new Consultants and helping them make early sales to Customers during your Launch Period. During your Launch Period, earn an additional 10% on the Personal Sales Volume and Customer Sales Volume of your new personally enrolled Consultant. This bonus is paid on sales in the new Consultant’s enrollment month, up to a maximum of US$100 per newly enrolled Consultant.† IN PRACTICE For example, if during your Launch Period you sell 250 SV of products to your new personally enrolled Consultant and your new personally enrolled Consultant sells 500 SV of products to Launch Bonuses their personally enrolled Customers in that new Consultant’s enrollment month, you are eligible for the 10% Sharing Bonus Doubler on 750 SV. This bonus is paid on CV, which takes into account the PEG Rate and any promos or discounts that may have been redeemed. For illustration purposes only, if the theoretical PEG Rate for the UK at the time this bonus is calculated were .75, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical UK PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 750 SV X .75 (theoretical UK PEG Rate) X 10% = £56.25 During Launch Period Sell To Newly Enrolled Consultant Newly Enrolled Consultant Sells To Personally Enrolled Customers In the Newly Enrolled Consultant's Enrollment Month YOU C 250 SV 500 SV You Earn 10% of CV £56.25 SHARING BONUS DOUBLER Must be Active to qualify These bonuses can boost you right from the start. Your Launch Period begins the day you enroll as a Consultant and continues through the next 3 calendar months. SHARING BONUS DOUBLER IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. C 14 †CAP AMOUNT: The Sharing Bonus and Sharing Bonus Doubler are each capped at US$100 per newly enrolled Consultant. For illustration purposes only, if the theoretical PEG Rate for the UK at the time these bonuses are calculated were .75, then the cap amount for these bonuses in local currency would be calculated as follows: Cap amount in US$ is multiplied by the theoretical UK PEG Rate. US$100 X .75 (theoretical UK PEG Rate) = £75.
YOU EARN £112.50 When you advance to the Rank of SENIOR CONSULTANT 1 during your Launch Period YOU SC1 RANK ADVANCEMENT BONUS IS CALCULATED MONTHLY SC1 Rank Advancement Bonus When you reach the Rank of Senior Consultant 1 for the first time during your Launch Period, you will earn a £112.50 SC1 Rank Advancement Bonus. Calculation based on US$150 X .75 (theoretical UK PEG Rate) = £112.50. 15
Level Commissions C O N S U LT A N T C O N S U LT A N T 1 C O N S U LT A N T 2 C O N S U LT A N T 3 S E N IO R C O N S U LT A N T 1 S E N IO R C O N S U LT A N T 2 S E N IO R C O N S U LT A N T 3 M A N A G IN G C O N S U LT A N T 1 M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 40 40 40 40 40 40 40 40 40 40 40 40 40 40 150 200 250 300 300 300 300 300 300 300 300 300 300 300 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 LEVEL 1 5% 7% 9% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% LEVEL 2 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% 7% 7% LEVEL 3 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% LEVEL 4 3% 5% 6% 6% 6% 6% 6% 6% 6% LEVEL 5 3% 5% 6% 6% 6% 6% 6% 6% LEVEL 6 3% 4% 5% 5% 5% 5% 5% LEVEL 7 3% 4% 4% 4% 4% 4% 4% LEVEL 8 3% 3% 3% 3% 3% 3% LEVEL 9 3% 3% 3% 3% 3% 3% You earn Level Commissions for building your team and teaching those you sponsor to create strong teams of their own. As an Active Consultant, you are paid a percentage of commissions from the CV of your team’s sales. Your Paid-as Rank determines the percentages you earn and the number of levels on which you are eligible to receive a commission. HOW LEVELS WORK All of the Consultants directly below you in your Placement Tree are your Level 1. Consultants are paid Customers Sales Profit and Personal Sales Bonus on their personally enrolled Customer purchases. Enrollers are not eligible for a Level Commission on their personal Customers. LEVEL COMMISSIONS ARE CALCULATED MONTHLY 16 Build & Grow. PPR SVR GSV MVR
Active Compression 9 8 5 3 7 2 6 1 ORDER MC1 START HERE C1 C3 INACTIVE SC3 MC3 INACTIVE EC3 EC4 MC1 INACTIVE PRESIDENTIAL 4 YOU Active MC1 qualified to earn up to 5 Levels. They are Level 1, so they are paid 10% Active C1 qualified to earn on Level 1. This is Level 2, so they are not eligible and Level 2 is not paid. Active C3 is qualified to earn on only 2 Levels. This is Level 3, so they are not eligible and Level 3 is not paid. Inactive. Through Active Compression, this Level is not qualified and Level 4 rolls up. Because the Consultant below you is inactive, you become Level 4 through Active Compression. As an Active SC3, you are qualified to earn at Level 4 and are paid 3%. Active MC3 qualified to earn on 9 Levels and paid on Level 5 at 6%. Inactive. Through Active Compression, this Level is not qualified and Level 6 rolls up. New Level 6 is an Active EC3 qualified to earn on 9 Levels. They are paid Level 6 at 5%. Active EC4 is paid on Level 7 at 4%. Active MC1 qualifies to earn only up to Level 5. Because this is Level 8, they are not eligible and Level 8 is not paid. Inactive. Through Active Compression, this Level is not qualified and Level 9 rolls up. Active PC is qualified for Level 9 and paid 3%. A process by which CV for Level Commissions skips inactive Consultants and rolls up to the next Active Consultant. IN PRACTICE This example shows how volume could roll up in one Leg of a team. You’re a Senior Consultant 3 at Level 5 above the Consultant who earned the volume. Starting from the bottom of the chart, you see how CV flows up and what happens below and above you. KEY Qualified (Paid) Not Qualified (Not Paid) Inactive (Rolls Up) 17
M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T GENERATION 1 7% 12% 15% 20% 20% 20% 20% GENERATION 2 10% 12% 15% 20% 20% 20% GENERATION 3 10% 12% 15% 20% 20% GENERATION 4 10% 12% 15% 20% GENERATION 5 10% 12% 15% GENERATION 6 10% 12% GENERATION 7 12% CAP PER MATCH $1,000 $2,500 $5,000 $7,500 $10,000 $15,000 $15,000 When you are paid as a Managing Consultant 2 or higher in the month, you can receive a Leadership Match on qualified Generations. The Leadership Match is paid on your qualified Generations' Level Commissions. HOW GENERATIONS WORK Your Generation 1 is the first Consultant in any Leg in your team with a Paid-as Rank of Managing Consultant 1 or higher. A Generation 2 is the next Consultant in that Leg with a Paid-as Rank of Managing Consultant 1 or higher, and so on. LEADERSHIP MATCH IS CALCULATED MONTHLY MONTHLY LEADERSHIP MATCH CAN PAYOUT UP TO A MAXIMUM OF 9% OF MONTHLY GLOBAL CV. • Cap Per Match amount in US$ is multiplied by the theoretical UK PEG Rate. • For example, the Cap Per Match for a Managing Consultant 2 would be US$1,000 X .75 (theoretical UK PEG Rate) = £750. Leadership Match When you reach the Leader level, you’ve shown you truly know what it takes to succeed and have the skills to help mentor and motivate others. Keep cultivating your future leaders and helping them grow and you can earn substantial bonuses for building such a strong team. For illustration purposes only, if the theoretical PEG Rate for the UK at the time this bonus is calculated were .75, then the Cap Per Match in local currency would be calculated as follows: 18 Lead.
YOU MANAGING CONSULTANT 3 10% 12% EXECUTIVE CONSULTANT 2 12% MANAGING CONSULTANT 1 12% MANAGING CONSULTANT 3 MANAGING CONSULTANT 3 IN PRACTICE In this example, as a Managing Consultant 3, you earn a 12% Leadership Match on your Generation 1 Consultants and a 10% match on your Generation 2 Consultants. Qualified Generations are based on Paid-as Ranks. You can have multiple Generation 1 Consultants within a Leg. The Leadership Match is paid in addition to any other bonuses and commissions you might already be earning. GENERATION 1 GENERATION 1 GENERATION 2 GENERATION 1 19
When you are paid as an Executive Consultant 1 or higher, you earn shares of our monthly Leadership Pool. This pool is made from 4% of global monthly CV. You receive shares based on your Paid-as Rank. The total pool amount is divided equally by the total number of monthly shares Consultants earn. Leadership Pool SHARES EXECUTIVE CONSULTANT 1 1 EXECUTIVE CONSULTANT 2 3 EXECUTIVE CONSULTANT 3 5 EXECUTIVE CONSULTANT 4 10 PRESIDENTIAL CONSULTANT 20 LEADERSHIP POOL IS CALCULATED MONTHLY Lead. 20
Legal Notices 1. LifeVantage Netherlands B.V. is a Direct Sales/Network Marketing company with a Multi-Level Marketing compensation plan that provides flexibility and opportunity for individuals to earn extra income based upon selling products to Customers. 2. The focus of the LifeVantage Compensation Plan is to pay bonuses and commissions to LifeVantage Consultants based upon their product sales and the product sales of LifeVantage Consultants in their personal marketing team to ultimate end using Customers. 3. LifeVantage products are not sold in retail stores and only licensed Consultants in Good Standing are authorized to sell LifeVantage products either directly from their own stock or indirectly through the company’s online shopping cart at www.lifevantage.com. 4. The Consultant Agreement consists of the LifeVantage Compensation Plan, the LifeVantage Consultant Application and Agreement, the LifeVantage Policies and Procedures, the LifeVantage Virtual Office Agreement (Back Office Agreement), and the LifeVantage Privacy Policy and Website Use Agreement. The Consultant Agreement governs the contractual relationship and obligations of each LifeVantage Consultant to LifeVantage. 5. A LifeVantage Consultant may not personally purchase for themselves nor encourage Customers or other Consultants to purchase more inventory than each can personally consume and/or sell to their personal Customers each month. In addition, each LifeVantage Consultant personally agrees that they may not place a new order in any given month unless 70% of all orders from previous months have been sold or consumed through personal/family use. 6. The Consultants sales earnings disclosed are potential gross earnings and not net of other business expenses and not necessarily representative of the actual income, if any, that a Consultant can or will earn through the LifeVantage Compensation Plan. A Consultant's earnings will depend on the individual diligence, work effort, and market conditions. LifeVantage does not guarantee any income or Rank success. 7. For Leadership Match, if after the individual caps per match are applied the monthly Leadership Match payout exceed 9% of monthly global CV, then all monthly Leadership Match earnings will be adjusted down by an equal percentage in order to ensure that the monthly Leadership Match does not exceed 9% of monthly global CV. 21
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Evolve © 2 0 24 L ife V an ta ge C or po ra tio n. A ll rig ht s re se rv ed . 24 0 80 8. 0 5
Evolve COMPENSATION PLAN GUIDE FOR INDEPENDENT LIFEVANTAGE CONSULTANTS EUROPEAN UNION Effective 1 November 2024
Welcome 2
activatedLife. It’s complicated. Messy. Beautiful. It goes by fast, and you want to live life to the fullest. But everyday responsibilities, fears, or restrictions can hold you back. You deserve to break free. You deserve to be your best self and live a healthy, happy life on your terms. LifeVantage is here to help. Our products are purposefully designed to activate your body’s ability to create vibrant health, starting at the cellular level. And when you look and feel your best, you’ll want to help others do the same. LifeVantage activates financial wellness with the opportunity to grow a business that can change people’s lives for the better. That’s where Evolve creates possibilities. Evolve is a compensation plan that allows you to work part-time or full-time.* Whether you are looking to simply share life-changing products or wanting to work and grow as a professional mentor and leader, being an Independent LifeVantage® Consultant will positively challenge and reward you. to life IT’S TIME TO LIVE WITH PURPOSE. IT’S TIME TO INSPIRE REMARKABLE. IT’S TIME TO LIVE ACTIVATED. *LifeVantage does not promise the financial success of any Consultant. Your success depends on your skill, fortitude, dedication, and your ability to lead others to emulate these qualities. Nothing in this guide is a representation that you will be financially successful. LifeVantage does not guarantee any income or Rank success. 3
WELCOME 2 KEY TERMS 4-5 THE CONSULTANT PATH 6-7 SHARE Product Pricing Customer Sales Profit Personal Sales Bonus Sharing Bonus 8 9 11 12 LAUNCH BONUSES Sharing Bonus Doubler SC1 Rank Advancement Bonus 14 15 BUILD & GROW Level Comissions 16-17 LEAD Leadership Match Leadership Pool 18-19 20 LEGAL NOTICES 21 ACTIVE You are considered an Active Consultant when your account is in Good Standing and you have met the 150 Sales Volume Requirement in that month, with at least 40 Personal Sales Volume. COMMISSIONABLE VOLUME (CV) Commissionable Volume is the measurement on which most bonuses and commissions are paid. When you earn a percentage of volume, you earn a percentage of a product's CV. The numeric value for CV is typically obtained when Sales Volume is multiplied by the PEG Rate, except in cases where CV has been discounted for any reason. COMPRESSION A process by which CV for Level Commissions skips inactive Consultants and rolls up to the next Active Consultant. CUSTOMER SALES VOLUME (CSV) The Sales Volume originating from your personally enrolled Customers’ orders. DOWNLINE All of the Consultants sponsored into your genealogy are considered part of your downline. ENROLLER The LifeVantage Consultant who enrolls a new Customer or Consultant. Also known as the Enrollment Sponsor. ENROLLMENT TREE The line of Consultants consecutively linked through Consultant enrollment and not by placement. The Enrollment Tree does not include any Placement Sponsors. GENERATION Consultants in your Enrollment Tree with the Paid-as Rank of Managing Consultant 1 or higher are your Generations. A Generation 1 is the first Consultant in any downline with a Paid-as Rank of Managing Consultant 1 or higher. A Generation 2 is the next Consultant in that Leg with a Paid-as Rank of Managing Consultant 1 or higher, and so on. Table of Contents Key Terms 4
GOOD STANDING Good Standing means you are in compliance with the Consultant Agreement, including payment of any applicable renewal fees. GROUP SALES VOLUME (GSV) Group Sales Volume is the total Sales Volume from you and all the Customers and Consultants in your entire team. LAUNCH PERIOD Your Launch Period includes the month you enroll and the following 3 full calendar months. LEG A Leg begins with a Level 1 Consultant and includes all of the Consultants beneath them. You have as many Legs as you have Level 1 Consultants. LEVEL The location a Consultant has in your downline in relation to you. All of the Consultants directly below you in your Placement Tree are your Level 1. Consultants placed directly below your Level 1 Consultants are your Level 2, and so on. MAXIMUM VOLUME RULE (MVR) The maximum amount of GSV from any one Leg or from your own Personal Sales Volume and Customer Sales Volume that can count toward your monthly Rank qualification. PAID-AS RANK Your Paid-as Rank is the Rank for which you qualify each month. Your Paid-as Rank determines many of your bonuses. Your Paid-as Rank may be the same as or lower than your Recognition Rank depending on your monthly qualifications. PEG RATE The foreign currency conversion factor used by LifeVantage to calculate payments to Consultants. Using a PEG Rate allows LifeVantage to normalize payments to Consultants. The PEG Rate is periodically reviewed and set based on recent foreign exchange rates and projected foreign exchange rates. PERSONAL SALES VOLUME (PSV) The Sales Volume originating from your personal account. PLACEMENT SPONSOR If you place a new Consultant directly below you in your downline, you are the Enrollment Sponsor and Placement Sponsor. However, if you place a new Consultant below a downline Consultant in the Placement Tree, that downline Consultant becomes your new enrollee’s Placement Sponsor. PLACEMENT TREE If you are a new Consultant's Enroller, you may place them directly below you in your downline or under any other downline Consultant’s position. This is considered your Placement Tree, also referred to as your downline or team. QUALIFYING SALES VOLUME (QSV) The Sales Volume that counts toward your monthly Rank qualification. RANK ADVANCING When you meet the qualifications to be paid as a Rank higher than your current Recognition Rank, you will “advance” to that higher Rank, and your Recognition Rank will be updated to reflect that new milestone. RECOGNITION RANK Your Recognition Rank is the highest Rank you have achieved along the Consultant Path. Your Recognition Rank is subject to reclassification once per year based on the maintenance requirements for that Rank. SALES VOLUME (SV) The numeric value attributed by LifeVantage to each commissionable product sold and/or purchased. SALES VOLUME REQUIREMENT (SVR) The accumulation of your Customers Sales Volume and your Personal Sales Volume to meet your monthly Paid-as Rank requirement. UPLINE All of the Consultants above you in your Enrollment and/or Placement Tree. 5
Evolve. Share. Build & Grow. Lead. Your path as an Independent LifeVantage Consultant can lead to a world of possibilities. Start by sharing the LifeVantage products that you love with Customers to help them activate wellness and improve their health. The more you share, the more you’ll grow as you find others who want to join you on the path with a business of their own. As you progress along the Consultant Path, your attention will shift to building and leading Consultants on your team who are ready to grow to the next stage of success. At every stage you’ll evolve your earnings, yourself, and your life. HOW IT WORKS You must meet certain volume requirements to stay Active and earn bonuses and commissions. These requirements will change, along with the bonuses and commissions you can qualify for, as you move along the path and earn Rank advancements. As you reach the qualifications for a specific Rank, you will be recognized with your “Recognition Rank” at that level for as long as you remain Active. However, your “Paid-as Rank” will fluctuate with your qualifications from month to month. 6
SHARE People say our products are too good not to share! In the early stages of your business, begin with a strong emphasis on sharing our wellness products by selling to Customers. These sales are the fastest way to build your business and see a speedy profit. BUILD & GROW By the time you reach Senior Consultant 1, you should begin spending more time finding new people to add to your sales team. Balance your efforts between selling and sponsoring, which is vital to your continued growth. The larger you grow your sales team, the more time you will spend building your business and helping your Consultants reach their own goals. C O N S U LT A N T C O N S U LT A N T 1 C O N S U LT A N T 2 C O N S U LT A N T 3 S E N IO R C O N S U LT A N T 1 S E N IO R C O N S U LT A N T 2 S E N IO R C O N S U LT A N T 3 M A N A G IN G C O N S U LT A N T 1 M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 PERSONAL PURCHASE REQUIREMENT 40 40 40 40 40 40 40 40 40 40 40 40 40 40 SALES VOLUME REQUIREMENT 150 200 250 300 300 300 300 300 300 300 300 300 300 300 GROUP SALES VOLUME 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 MAXIMUM VOLUME RULE 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 LEAD Leadership is more than the Rank next to your name. Teach by example how to build a successful LifeVantage business. Acknowledge, encourage, and lift your team members, and together you can enjoy the rewards of your shared success! The Consultant Path Evolve is uniquely designed to help LifeVantage Consultants develop confidence, community, and leadership. Each Rank advancement offers the opportunity to celebrate with increased earning possibilities. 7
EACH LIFEVANTAGE PRODUCT HAS 3 PRICES. 03. CONSULTANT Consultant price is lower than the One Time Retail price and the Subscription price, regardless of the order type, and represents the lowest price available. 02. SUBSCRIPTION Subscription price is a discount from One Time Retail price. Products purchased by Customers on Subscription are eligible for the discount. 01. ONE-TIME RETAIL The advertised Customer price for all products, whether purchased online or directly from you. Product Pricing 8
Customer Sales Profit allows you to earn commissions on every order. Here's how it works: When your Customers order LifeVantage products, you earn the difference between the price your Customer paid and the Consultant price. IN PRACTICE In these examples, 2 Customers are ordering the same set of products. The Customer on the left purchases the products at the full VAT-exclusive One Time Retail price of €90. The VAT-exclusive Consultant price for that order is €72. So, you earn a Customer Sales Profit of €18. The Customer on the right orders the same products on a Subscription order for the VAT-exclusive Subscription price of €81. The VAT-exclusive Consultant price for that order is €72. So, you earn a Customer Sales Profit of €9. . CUSTOMER SALES PROFIT IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. Sharing your excitement about LifeVantage and selling products to Customers is at the heart of being a Consultant. In addition to Customer Sales Profit, you can earn on total monthly product sales with the Personal Sales Bonus. Customer Sales Profit Share. Must be Active to qualify RETAIL €90 PURCHASE PRICE €18 CUSTOMER SALES PROFIT subtract €72 CONSULTANT PRICE SUB €81 PURCHASE PRICE €9 CUSTOMER SALES PROFIT subtract €72 CONSULTANT PRICE It is important to note that while the published prices may be inclusive of Value-Added Tax (VAT), all bonuses and/or commissions are paid on VAT-exclusive values only. 9
Customers may cancel their Subscription to opt out of the program at any time. Subscription orders come with rewards for all Customers! Learn more about the LifeVantage Rewards Circle loyalty program at LifeVantage.com Subscribe. Save. Get Rewards. 10
CUSTOMER SV BONUS TIER RECOGNITION TITLE 500 – 999.99 5% ONYX 1,000 – 1,999.99 10% EMERALD 2,000 – 3,999.99 15% SAPPHIRE 4,000+ 20% DIAMOND Personal Sales Bonus The Personal Sales Bonus rewards you on your personal Customer sales. When your Customer Sales Volume (CSV) totals 500 SV or more in a single month, you become eligible for an additional Personal Sales Bonus. The Bonus is paid on a percentage of CV. When your CSV reaches 500 in a single month, you will be recognized with a special title before your Rank, starting with Onyx at 500 SV then changing to Emerald at 1000 SV, Sapphire at 2000 SV, and Diamond at 4000 SV and higher. IN PRACTICE For example, if your Customers order 2200 SV worth of products in the month, you are eligible for the 15% bonus tier. This bonus is paid on CV which takes into account the PEG Rate and any promos or discounts Customers may have redeemed. For illustration purposes only, if the theoretical PEG Rate for the EU at the time this bonus is calculated were .90, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical EU PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 2200 SV X .90 (theoretical EU PEG Rate) X 15% = €297 Share. Must be Active to qualify PERSONAL SALES BONUS IS CALCULATED MONTHLY 2200 SV SAPPHIRE €297 PERSONAL SALES BONUS you earn 15% of CV and the title of RETAIL SUB YOU 11
SHARING BONUS IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. The Sharing Bonus rewards you for selling products to new Consultants and helping them make early sales to Customers. Earn 10% on the Personal Sales Volume and Customer Sales Volume of your new personally enrolled Consultant. This bonus is paid on sales in the new Consultant’s enrollment month, up to a maximum of US$100 per newly enrolled Consultant.† IN PRACTICE For example, if you sell 250 SV worth of products to your new personally enrolled Consultant and your new personally enrolled Consultant sells 500 SV worth of products to their personally enrolled Customers in that new Consultant’s enrollment month, you are eligible for the 10% Sharing Bonus on 750 SV. This bonus is paid on CV, which takes into account the PEG Rate and any promos or discounts that may have been redeemed. For illustration purposes only, if the theoretical PEG Rate for the EU at the time this bonus is calculated were .90, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical EU PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 750 SV X .90 (theoretical EU PEG Rate) X 10% = €67.50. Sharing Bonus. Sell to Newly Enrolled Consultant Newly Enrolled Consultant Sells to Personally Enrolled Customers In the Newly Enrolled Consultant’s Enrollment Month YOU C 250 SV 500 SV You Earn 10% of CV €67.50 SHARING BONUS Must be Active to qualify C 12
13
SHARING BONUS DOUBLER The Sharing Bonus Doubler rewards you for selling products to new Consultants and helping them make early sales to Customers during your Launch Period. During your Launch Period, earn an additional 10% on the Personal Sales Volume and Customer Sales Volume of your new personally enrolled Consultant. This bonus is paid on sales in the new Consultant’s enrollment month, up to a maximum of US$100 per newly enrolled Consultant.† IN PRACTICE For example, if during your Launch Period you sell 250 SV of products to your new personally enrolled Consultant and your new personally enrolled Consultant sells 500 SV of products to Launch Bonuses their personally enrolled Customers in that new Consultant’s enrollment month, you are eligible for the 10% Sharing Bonus Doubler on 750 SV. This bonus is paid on CV, which takes into account the PEG Rate and any promos or discounts that may have been redeemed. For illustration purposes only, if the theoretical PEG Rate for the EU at the time this bonus is calculated were .90, then the bonus amount in local currency would be calculated as follows: • SV is multiplied by the theoretical EU PEG Rate to get the CV. CV is then multiplied by the applicable bonus percentage. • 750 SV X .90 (theoretical EU PEG Rate) X 10% = €67.50. During Launch Period Sell To Newly Enrolled Consultant Newly Enrolled Consultant Sells To Personally Enrolled Customers In the Newly Enrolled Consultant's Enrollment Month YOU C 250 SV 500 SV You Earn 10% of CV €67.50 SHARING BONUS DOUBLER Must be Active to qualify These bonuses can boost you right from the start. Your Launch Period begins the day you enroll as a Consultant and continues through the next 3 calendar months. SHARING BONUS DOUBLER IS CALCULATED DAILY*. *May be disbursed 3 business days after the bonus calculation date to qualified Consultants who are in an eligible market and have reached the Rank of Senior Consultant 1 or above. Consultants who are not qualified for daily disbursement will be paid their bonus earnings weekly. C 14 †CAP AMOUNT: The Sharing Bonus and Sharing Bonus Doubler are each capped at US$100 per newly enrolled Consultant. For illustration purposes only, if the theoretical PEG Rate for the EU at the time these bonuses are calculated were .90, then the cap amount for these bonuses in local currency would be calculated as follows: Cap amount in US$ is multiplied by the theoretical EU PEG Rate. US$100 X .90 (theoretical EU PEG Rate) = €90.
YOU EARN €135 When you advance to the Rank of SENIOR CONSULTANT 1 during your Launch Period YOU SC1 RANK ADVANCEMENT BONUS IS CALCULATED MONTHLY SC1 Rank Advancement Bonus When you reach the Rank of Senior Consultant 1 for the first time during your Launch Period, you will earn a €135 SC1 Rank Advancement Bonus. Calculation based on US$150 X .90 (theoretical EU PEG Rate) = €135. 15
Level Commissions C O N S U LT A N T C O N S U LT A N T 1 C O N S U LT A N T 2 C O N S U LT A N T 3 S E N IO R C O N S U LT A N T 1 S E N IO R C O N S U LT A N T 2 S E N IO R C O N S U LT A N T 3 M A N A G IN G C O N S U LT A N T 1 M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T C C1 C2 C3 SC1 SC2 SC3 MC1 MC2 MC3 EC1 EC2 EC3 EC 4 PC1 40 40 40 40 40 40 40 40 40 40 40 40 40 40 150 200 250 300 300 300 300 300 300 300 300 300 300 300 500 1,000 2,000 3,500 6,000 10,000 20,000 40,000 80,000 150,000 300,000 600,000 1,000,000 750 1,500 2,500 4,000 6,000 10,000 20,000 40,000 67,500 135,000 270,000 450,000 LEVEL 1 5% 7% 9% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% LEVEL 2 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% 7% 7% LEVEL 3 3% 5% 6% 7% 7% 7% 7% 7% 7% 7% LEVEL 4 3% 5% 6% 6% 6% 6% 6% 6% 6% LEVEL 5 3% 5% 6% 6% 6% 6% 6% 6% LEVEL 6 3% 4% 5% 5% 5% 5% 5% LEVEL 7 3% 4% 4% 4% 4% 4% 4% LEVEL 8 3% 3% 3% 3% 3% 3% LEVEL 9 3% 3% 3% 3% 3% 3% You earn Level Commissions for building your team and teaching those you sponsor to create strong teams of their own. As an Active Consultant, you are paid a percentage of commissions from the CV of your team’s sales. Your Paid-as Rank determines the percentages you earn and the number of levels on which you are eligible to receive a commission. HOW LEVELS WORK All of the Consultants directly below you in your Placement Tree are your Level 1. Consultants are paid Customers Sales Profit and Personal Sales Bonus on their personally enrolled Customer purchases. Enrollers are not eligible for a Level Commission on their personal Customers. LEVEL COMMISSIONS ARE CALCULATED MONTHLY 16 Build & Grow. PPR SVR GSV MVR
Active Compression 9 8 5 3 7 2 6 1 ORDER MC1 START HERE C1 C3 INACTIVE SC3 MC3 INACTIVE EC3 EC4 MC1 INACTIVE PRESIDENTIAL 4 YOU Active MC1 qualified to earn up to 5 Levels. They are Level 1, so they are paid 10% Active C1 qualified to earn on Level 1. This is Level 2, so they are not eligible and Level 2 is not paid. Active C3 is qualified to earn on only 2 Levels. This is Level 3, so they are not eligible and Level 3 is not paid. Inactive. Through Active Compression, this Level is not qualified and Level 4 rolls up. Because the Consultant below you is inactive, you become Level 4 through Active Compression. As an Active SC3, you are qualified to earn at Level 4 and are paid 3%. Active MC3 qualified to earn on 9 Levels and paid on Level 5 at 6%. Inactive. Through Active Compression, this Level is not qualified and Level 6 rolls up. New Level 6 is an Active EC3 qualified to earn on 9 Levels. They are paid Level 6 at 5%. Active EC4 is paid on Level 7 at 4%. Active MC1 qualifies to earn only up to Level 5. Because this is Level 8, they are not eligible and Level 8 is not paid. Inactive. Through Active Compression, this Level is not qualified and Level 9 rolls up. Active PC is qualified for Level 9 and paid 3%. A process by which CV for Level Commissions skips inactive Consultants and rolls up to the next Active Consultant. IN PRACTICE This example shows how volume could roll up in one Leg of a team. You’re a Senior Consultant 3 at Level 5 above the Consultant who earned the volume. Starting from the bottom of the chart, you see how CV flows up and what happens below and above you. KEY Qualified (Paid) Not Qualified (Not Paid) Inactive (Rolls Up) 17
M A N A G IN G C O N S U LT A N T 2 M A N A G IN G C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 1 E X E C U T IV E C O N S U LT A N T 2 E X E C U T IV E C O N S U LT A N T 3 E X E C U T IV E C O N S U LT A N T 4 P R E S ID E N T IA L C O N S U LT A N T GENERATION 1 7% 12% 15% 20% 20% 20% 20% GENERATION 2 10% 12% 15% 20% 20% 20% GENERATION 3 10% 12% 15% 20% 20% GENERATION 4 10% 12% 15% 20% GENERATION 5 10% 12% 15% GENERATION 6 10% 12% GENERATION 7 12% CAP PER MATCH $1,000 $2,500 $5,000 $7,500 $10,000 $15,000 $15,000 When you are paid as a Managing Consultant 2 or higher in the month, you can receive a Leadership Match on qualified Generations. The Leadership Match is paid on your qualified Generations' Level Commissions. HOW GENERATIONS WORK Your Generation 1 is the first Consultant in any Leg in your team with a Paid-as Rank of Managing Consultant 1 or higher. A Generation 2 is the next Consultant in that Leg with a Paid-as Rank of Managing Consultant 1 or higher, and so on. LEADERSHIP MATCH IS CALCULATED MONTHLY MONTHLY LEADERSHIP MATCH CAN PAYOUT UP TO A MAXIMUM OF 9% OF MONTHLY GLOBAL CV. • Cap Per Match amount in US$ is multiplied by the theoretical EU PEG Rate. • For example, the Cap Per Match for a Managing Consultant 2 would be US$1,000 X .90 (theoretical EU PEG Rate) = €900. Leadership Match When you reach the Leader level, you’ve shown you truly know what it takes to succeed and have the skills to help mentor and motivate others. Keep cultivating your future leaders and helping them grow and you can earn substantial bonuses for building such a strong team. For illustration purposes only, if the theoretical PEG Rate for the EU at the time this bonus is calculated were .90, then the Cap Per Match in local currency would be calculated as follows: 18 Lead.
YOU MANAGING CONSULTANT 3 10% 12% EXECUTIVE CONSULTANT 2 12% MANAGING CONSULTANT 1 12% MANAGING CONSULTANT 3 MANAGING CONSULTANT 3 IN PRACTICE In this example, as a Managing Consultant 3, you earn a 12% Leadership Match on your Generation 1 Consultants and a 10% match on your Generation 2 Consultants. Qualified Generations are based on Paid-as Ranks. You can have multiple Generation 1 Consultants within a Leg. The Leadership Match is paid in addition to any other bonuses and commissions you might already be earning. GENERATION 1 GENERATION 1 GENERATION 2 GENERATION 1 19
When you are paid as an Executive Consultant 1 or higher, you earn shares of our monthly Leadership Pool. This pool is made from 4% of global monthly CV. You receive shares based on your Paid-as Rank. The total pool amount is divided equally by the total number of monthly shares Consultants earn. Leadership Pool SHARES EXECUTIVE CONSULTANT 1 1 EXECUTIVE CONSULTANT 2 3 EXECUTIVE CONSULTANT 3 5 EXECUTIVE CONSULTANT 4 10 PRESIDENTIAL CONSULTANT 20 LEADERSHIP POOL IS CALCULATED MONTHLY Lead. 20
Legal Notices 1. LifeVantage Netherlands B.V. is a Direct Sales/Network Marketing company with a Multi-Level Marketing compensation plan that provides flexibility and opportunity for individuals to earn extra income based upon selling products to Customers. 2. The focus of the LifeVantage Compensation Plan is to pay bonuses and commissions to LifeVantage Consultants based upon their product sales and the product sales of LifeVantage Consultants in their personal marketing team to ultimate end using Customers. 3. LifeVantage products are not sold in retail stores and only licensed Consultants in Good Standing are authorized to sell LifeVantage products either directly from their own stock or indirectly through the company’s online shopping cart at www.lifevantage.com. 4. The Consultant Agreement consists of the LifeVantage Compensation Plan, the LifeVantage Consultant Application and Agreement, the LifeVantage Policies and Procedures, the LifeVantage Virtual Office Agreement (Back Office Agreement), and the LifeVantage Privacy Policy and Website Use Agreement. The Consultant Agreement governs the contractual relationship and obligations of each LifeVantage Consultant to LifeVantage. 5. A LifeVantage Consultant may not personally purchase for themselves nor encourage Customers or other Consultants to purchase more inventory than each can personally consume and/or sell to their personal Customers each month. In addition, each LifeVantage Consultant personally agrees that they may not place a new order in any given month unless 70% of all orders from previous months have been sold or consumed through personal/family use. 6. The Consultants sales earnings disclosed are potential gross earnings and not net of other business expenses and not necessarily representative of the actual income, if any, that a Consultant can or will earn through the LifeVantage Compensation Plan. A Consultant's earnings will depend on the individual diligence, work effort, and market conditions. LifeVantage does not guarantee any income or Rank success. 7. For Leadership Match, if after the individual caps per match are applied the monthly Leadership Match payout exceed 9% of monthly global CV, then all monthly Leadership Match earnings will be adjusted down by an equal percentage in order to ensure that the monthly Leadership Match does not exceed 9% of monthly global CV. 21
Notes 22
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Evolve © 2 0 24 L ife V an ta ge C or po ra tio n. A ll rig ht s re se rv ed . 24 0 80 8. 0 7
Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
I, Steven R. Fife, certify that:
1.I have reviewed this quarterly report on Form 10-Q of LifeVantage Corporation;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: February 5, 2025
| /s/ Steven R. Fife | ||
| Steven R. Fife | ||
| President and Chief Executive Officer | ||
| (Principal Executive Officer) | ||
Exhibit 31.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
I, Carl A. Aure, certify that:
1.I have reviewed this quarterly report on Form 10-Q of LifeVantage Corporation;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: February 5, 2025
| /s/ Carl A. Aure | ||
| Carl A. Aure | ||
| Chief Financial Officer | ||
| (Principal Financial Officer) | ||
Exhibit 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the filing of this quarterly report on Form 10-Q of LifeVantage Corporation (the “Company”) for the period ended December 31, 2024, with the Securities and Exchange Commission on the date hereof (the “report”), I, Steven R. Fife, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
1)The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2)The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.
The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the report or as a separate disclosure document.
Date: February 5, 2025
| /s/ Steven R. Fife | ||
| Steven R. Fife | ||
| President and Chief Executive Officer | ||
| (Principal Executive Officer) | ||
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
Exhibit 32.2
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the filing of this quarterly report on Form 10-Q of LifeVantage Corporation (the “Company”) for the period ended December 31, 2024, with the Securities and Exchange Commission on the date hereof (the “report”), I, Carl A. Aure, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
1)The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2)The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.
The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the report or as a separate disclosure document.
Date: February 5, 2025
| /s/ Carl A. Aure | ||
| Carl A. Aure | ||
| Chief Financial Officer | ||
| (Principal Financial Officer) | ||
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.