Breaking News from SUNBIRD Perfumes… SUNBIRD has always strived to offer Consumers the most popular, affordable, fine quality fragrances. The winning combination of a great range of products along with an excellent Compensation Plan that rewards Sunbird’s Distributors for their Personal Sales and Recruitment activities has been the cornerstone of Sunbird’s success and has brought prosperity to thousands of Sunbird’s Distributors who now sell in excess of 300 000 bottles of perfume and lotions per year!
We are excited to announce the launch of 19 NEW FRAGRANCES as well as a number of very significant changes to Sunbird’s COMPENSATION PLAN. The 19 new fragrances which will be available from 1 March 2015, replace 23 “old” fragrances that have been discontinued. The changes to the Compensation Plan along with a Price Increase will be effective from 1 March 2015. You are encouraged to familiarise yourself with ALL the changes to the Compensation Plan including changes to the Status Demotion Rules as a full understanding of Sunbird’s Compensation Plan will certainly help you to maximise the potential money that you can earn as a Sunbird Distributor.
Perfume Boxes are currently being developed for 30ml and 50ml products. These boxes, which are non-stock items and will cost R3.00 each, will be available from 1 April 2015.
The SUNBIRD Mobisite is currently being upgraded to enable Distributors to place online orders and make payments from their cellphones! The Mobisite should be in operation from 1 April 2015. More details will follow soon.
It is also important to note the change in deadlines for the processing of courier orders. o Orders will now only be despatched 2 days after receipt of such orders and related payments. o All orders for delivery by Courier (along with related payment confirmations) must be placed with Sunbird’s Offices a minimum of 3 working days before month end to be processed in that specific month (i.e if the last working day in a month is on a Friday, orders need to be submitted by Tuesday).
A. NEW FRAGRANCES:
SPECIAL OFFER: Buy All 19 New Fragrance Samples at R150. (Available until 30 April 2015)
Feminine Fragrances: 13 New Fragrances BLACK ORCHID BONBON BURBERRY BRIT FAME FIRE AND ICE FLOWERBOMB HEAT JIMMY CHOO LA VIE EST BELLE OUR MOMENT PINK FRIDAY PRADA CANDY SI
15 Discontinued AMARIGE AMOR AMOR ANAIS ANAIS BVLGARI POUR FEMME CURIOUS DIESEL ZERO PLUS ENDANGERED GUCCI GUILTY JOOP JOVAN MUSK LOVERDOSE NARCISSO (Pink) PANACHE SPELLBOUND TOUCH OF PINK
Masculine Fragrances: 6 New Fragrances:
8 Discontinued
212 VIP BOSS BOTTLED EROS (Versace Blue) INVICTUS LACOSTE RED TOM FORD (Black)
212 A*MEN BOSS ORANGE BVLGARI AQUA Pour Homme CHANEL BLUE NEW WEST TOMMY TUSCANY
B. DISCONTINUED FRAGRANCES (“B-Range” Fragrances) Stocks of these discontinued fragrances along with other fragrances that have previously been discontinued may still be available for a limited period from Sunbird’s Pretoria and Bellville offices. Please contact our offices or refer to Sunbird’s website for a comprehensive list of “discontinued” (B-Range) fragrances of which we may still have stocks available. The “B-range” fragrances will no longer appear on SUNBIRD’s order form. Any orders for “B-Range” fragrances must be included on the bottom of the new order form – space has been made available on the order form below the last of the Feminine and Masculine fragrances. Please note that “B-range” fragrances will only be available in 30 ml (Feminine) and 50 ml (Masculine) i.e no lotions available. These products may be discontinued in future once the last of available stocks are sold out. Please also note that there may be a delay in despatching B-Range products as these are not always kept in stock and may require specific manufacturing for individual orders. C. NEW ORDER FORMS: New Order forms must be used from 1 March 2015. Distributors are requested to ALWAYS use Sunbird’s order forms when sending orders, as it assists us to ensure that orders are packed accurately and complete. (The Excel version of the order form contains formulas to assist with all the necessary calculations. Orders forms are also available on Sunbird’s website: www.sunbirdperfume.co.za) D. PRICE INCREASES: In spite of significant increases in its own costs, Sunbird Perfumes has not increased its prices to Distributors for almost 3 years. A price increase of approximately 10% will become effectively as from 1 March 2015. Distributor Retail Prices
SUNBIRD Stock items
Distributor Cost (Sunbird Selling Prices) for different Distributor Status Levels Bronze (35%) Silver (45%) Gold (50%) Platinum (55%)
Ladies Perfume (30 ml)
110.00
71.50
60.50
55.00
49.50
Men’s Perfume (50 ml)
135.00
87.75
74.25
67.50
60.75
Hand / Body Lotions (200ml)
55.00
35.75
30.25
27.50
24.75
Aftershave Balm (125ml)
55.00
35.75
30.25
27.50
24.75
R / each
Items not for Resale (Non-stock items)
Items not for Resale (Non-stock items)
R / each
Samples (5 ml)
12.00
Perfume Boxes (each)
3.00
Sample Carry Bag (Small)
120.00
Shopper Bag (each)
10.00
Sample Carry Bag (Large)
230.00
Golf Shirts (Male / Female)
140.00
Gold Organza Gift Bag (Small – Perfume)
3.00
Name Badge (each)
50.00
Gold Organza Gift Bag (Large – Lotion)
5.00
Plastic Bags (each)
0.50
E. COMPENSATION PLAN Changes: i.
Status Levels: As a result of the increases in selling prices, the Group Sales values required for Distributors to achieve the different Status Levels, have been adjusted. Distributor STATUS Levels
Distributor Retail Profits
Monthly Distributor Group Sales
Bronze
35%
R500 – R2 999
Silver
45%
R3000– R7499
Gold
50%
R7500 – R19999
Platinum
55%
R20000+
ii.
Changes to Status Demotion Rules With effect from 30 April, a Distributor who has been promoted to a higher STATUS Level, will be demoted by 1 level if that STATUS Level’s minimum monthly Group Sales are not again achieved in the next calendar month. Once demoted, the Distributor will again be demoted by 1 level if the new level’s minimum monthly Group Sales value is again not achieved in the month following the date of demotion. This process of demotion will continue until a Distributor is eventually demoted to the lowest level (Bronze). This rule will be applied to all months except for December and January where the required Group Sales Levels to maintain a status will be reduced to 70% of the normal Status Levels.
iii.
Courier Cost Increase: The courier cost rates have changed slightly – see attached Compensation Plan.
iv.
New Distributor Sample Refund Credits New Distributors can qualify for Sample Refund credits if they had purchased a minimum of 30 Samples and achieved Total Personal Sales of a minimum of nd R2 000 by the end of their 2 Month as registered Distributors. Refund credits are limited to 1 sample bottle per fragrance (maximum 106 fragrances). Sample Refund credits will not be paid out in cash and can only be utilised rd th against the cost of orders that are placed in their 3 or 4 month as registered Distributors, after which any unutilised credit balances will be forfeited.
v.
Samples Bought 30 - 49 50 - 69 70 - 89 90+
Refund Credit per Sample Bottle R5 R6 R7 R8
NEW Distributor ACTIVITY INCENTIVES The New Distributor Activity Incentives as explained below, replace the existing FAST START BONUSES: “NEW Distributors can earn ACTIVITY INCENTIVES if they have maintained certain activity levels during their 1st months as registered Distributors. ACTIVITY INCENTIVES for NEW Distributors will not only reward those Distributors who have been active as Personal Sellers, but also those who were active Recruiters of Downlines. Incentives can be earned on Month 3 and 4 Sales. To qualify for an incentive in Month 3, a Distributor must have had Personal Sales of at least R2000 in Month 2. To qualify for an incentive in Month 4, a Distributor must have had Personal Sales of at least R2000 in either Month 2 or 3.”
New Distributor Fast Start Incentives
A B C
vi.
Personal Sales Incentive Personal Sales Group Sales Incentive Personal Sales Group Sales Incentive
Month 1 No Minimum No Incentive No Minimum No Incentive No Minimum No Incentive
Month 2
Month 3
Month 4
> R2000 No Incentive > R2000
> R2000 R200 > R2000 > R7500 R500 > R2000 > R20000 R1000
> R2000 R200 > R2000 > R7500 R500 > R2000 > R20000 R1000
No Incentive > R2000 No Incentive
Changes in Terminology: The Income that Distributors can earn on Downlines will now be referred to as “Downline Rebates” (the term Downline Bonuses will no longer be used).
vii.
Downline Rebates (payable to Distributors with Downlines : replaces Downline Bonuses): Parent Distributors will now require Personal Sales of a minimum of R2000 in a month to be able to earn Downline Rebates on their Level 1 – 4 Downlines. The table below reflects the manner in which Downline Rebates will be calculated on the Personal Sales of all Level 1 Downline Distributors. Downline Rebate Calculation Table: Distributors Sales Downline Distributor Personal Sales From: To: Total
STATUS of Parent Distributor Bronze
Silver
Gold
Platinum
A
R0
R3000
R3000
Downline Rebate as a % of Personal Sales of Downline Distributor: 6% 8% 10% 12%
B
R3001
R7500
R4000
3%
5%
6%
8%
C
R7501
R20000
R12500
3%
3%
4%
6%
D
R20001
3%
3%
3%
3%
Example: A Platinum Distributor will earn 12% on each Level 1 Downline Distributor’s Personal Sales from R0 to R3000 plus 8% on sales from R3001 to R7500 plus 6% on sales between R7501 and R20000 plus 3% on all of the Downline Distributor’s Personal Sales from R20001 onwards.
viii.
ACTIVITY REBATES payable to Parents with New Level 1 Downlines (replaces Double Downline Bonuses) Sunbird’s Compensation Plan will no longer pay Double Downline Rebates (Bonuses) to Parent Distributors on the basis of their New Downline Distributors’ 1st month’s sales only, but will pay ACTIVITY REBATES if New Downline Distributors have managed to sustain certain Personal Sales levels during their 1st 3 months as Distributors. This change to the Compensation Plan will not only enable Parents to earn more on their New Downlines, but will encourage them to support their Downlines with good advice to enable them to succeed over a sustained period. Parent Distributors can earn Activity Rebates on the Personal Sales of their New Level 1 Downlines if the New Downlines achieved Personal Sales of at least R2 000 in each of their 2nd and 3rd months with Sunbird. This Activity Rebate will be paid after 3 months and will be calculated as an additional 50% of the 1st 3 months regular Downline Rebates that were earned on the Personal Sales of each of these New Level 1 Downlines. Example of Activity Rebates: (Platinum Parent) New Child Sales Downline Rebate % Month 1 2000 12% Month 2 2000 12% Month 3 2000 12% Total after 3 Months 6000 New Level 1 Downline Activity Rebate: 50% of Month 1 – 3 Rebates Total Month 1 – 3 Downline Rebate and Activity Rebate
ix.
Downline Rebate R240 R240 R240 R720 R360 R1080
Downline Rebates Payable to Distributors (Parents) with Level 2 -4 Downlines: New Qualifying Criteria The requirements to be able to earn Downline Rebates on Level 2 – 4 Downlines have been amended to encourage retention of New Downlines. It is simply in everybody’s interest that Parents will support their new Downlines through at least their 1st 3 months to increase retention rates which will immediately lead to higher earnings of Downline Rebates at all levels. To be able to qualify for Downline Rebates on Level 2 – 4 Downlines, a Distributor will be required to have had their own Personal Sales of a minimum of R2000 in that month plus R2000 Sales (purchased from a Sunbird Office) from new Level 1 Downlines recruited in the month. Additionally, R2000 Sales is required from Level 1 Downlines who were recruited in the previous month (i.e current month is their 2nd month since registration)) plus a further R2000 in the current month from Level 1 Downlines who are in their 3 rd month since registration. (New Downlines need to do R3000 per month in months 1, 2 and 3 for a parent to qualify for Executive Level payouts on Level 2 – 4 Downlines).
The table below summarises the new requirements to earn Downline Rebates on Level 2 – 4 Downlines.
Minimum monthly Personal Sales to earn Downline Rebates
Level 1 R2000
Maximum Level 2 – 4 earnings as a % of Level 1 Rebates
Level 2 R2000
Level 3 R2000
Level 4 R2000
300%
300%
300%
15%
10%
Standard Downline Rebate Payout Percentages and Requirements to earn on Levels 2 - 4 % of Potential Downline Rebate amounts to be paid 100% 20% Minimum Personal Sales from current month new Level 1 Downlines
-
R2000
R2000
R2000
And Minimum Personal Sales from new Level 1 Downlines recruited in the previous month
-
R2000
R2000
R2000
And Minimum Personal Sales from new Level 1 Downlines recruited two months prior
-
R2000
R2000
R2000
20%
15%
Executive Downline RebatePayout Percentages and Requirements to earn on Levels 2 - 4 % of Potential Downline Rebate amounts to be paid 100% 30% Minimum Personal Sales from current month new Level 1 Downlines And Minimum Personal Sales from new Level 1 Downlines recruited in the previous month And Minimum Personal Sales from new Level 1 Downlines recruited two months prior
-
R3000
R3000
R3000
-
R3000
R3000
R3000
-
R3000
R3000
R3000
Good ADVICE! How to Maximise your Income with SUNBIRD’s Compensation Plan: The primary objectives of SUNBIRD’s Compensation Plan are to offer very attractive financial rewards to Personal Sellers and Recruiters and to attract and retain Distributors that will appreciate the great long term potential of the business opportunity that Sunbird offers. The changes to Sunbird’s Compensation Plan will more than ever reward Distributors who manage to recruit, develop and retain strong Distributors in their Downlines. o o
o
Familiarise yourself with Sunbird’s Compensation Plan to ensure that you understand all the opportunities to increase your earnings from Sunbird. Never neglect your own Personal sales – you earn the highest % profits on your Personal Sales, while your own successes in Personal Sales will become a success story with which you will be able to recruit new Downline Distributors. It is always wise to try and recruit new Distributors who will be prepared to work hard, not only to achieve high levels of Personal Sales, but also to recruit their own Downlines. You should always support and encourage your Downlines with good advice to ensure that they maximise their chances of succeeding in the long term. It is particularly important to support new Downlines through their 1st 3 or 4 months as it is then when they need advice on the best ways to approach their businesses. Distributors who are successful in their 1 st 4 months, are far more likely to continue as Distributors for an extended period. o Ensure that your New Distributors are aware of all the extra incentives that are only available to new Distributors in their 1st 4 months. The greater the Personal Sales of your Level 1 Downlines and the more Distributors that they recruit (Level 2 Downlines), the bigger the Downline Rebates that you will be able to earn. Do not ever underestimate the impact that you could have on your Distributors to motivate them and to provide them with good advice to expand their businesses.
Please do not hesitate to contact us if you have any questions regarding the changes to Sunbird’s Compensation Plan.
Good luck!!!
