Earthman Herbals® Agent Compensation & Residual Payout Plan
10% base incentive • five qualification levels • reorder residuals • supplier-supported incentives
This page is the agent presentation version of the current planning framework. It is designed for the Agent Portal, presentations and approved recruitment/partner materials.
Agent PortalReferral ProgramFive-Level Payout Ceiling
The five levels describe the maximum total agent/member incentive rate available under qualifying product and service terms. They are not automatic payouts; qualification, eligible revenue, customer servicing and written commercial terms determine the actual payout.
| Level | Base | Additional residual / level opportunity | Total ceiling |
|---|---|---|---|
| Level 1 — Starter | 10% | 0% | 10% |
| Level 2 — Builder | 10% | Up to 2.5% | 12.5% |
| Level 3 — Growth | 10% | Up to 5% | 15% |
| Level 4 — Leader | 10% | Up to 10% | 20% |
| Level 5 — Network | 10% | Up to 15% | 25% |
Visual payout ceiling
Reorder & Restocking Residual
1.5% Agent Reorder Residual
1.5% of eligible reorder/restock revenue is the standard servicing residual paid to the originating/servicing agent when the customer is properly tracked.
Up to 5% Additional Residual Opportunity
Additional residual incentives may be authorized for qualifying recurring/replenishment activity where the product margin and written commercial schedule support them.
Supplier-Supported 3%
Where a supplier contract provides a restocking/reissue incentive, up to approximately 3% may be added as a supplier-funded incentive, subject to the supplier agreement.
30% Maximum Replenishment Economics
Qualifying supplier-supported residual arrangements may take the total incentive economics toward 30%. The ordinary Earthman agent/member ceiling remains 25%.
Example: $1,000 Qualifying Reorder
| Component | Rate | Illustrative amount |
|---|---|---|
| Level 1 base incentive | 10% | $100 |
| Standard reorder residual | 1.5% | $15 |
| Level/residual progression | As qualified | Up to applicable level ceiling |
| Supplier-supported incentive | Up to 3% | Up to $30 where contractually funded |
The example illustrates the mechanics, not a guaranteed payout. Actual payout is based on eligible net revenue, the agent's level, the product's commissionable pool and any approved supplier-funded component.
What Qualifies for Higher Residuals?
Recurring herb purchases and replenishment.
Recurring tea orders and restocking.
Eligible replenishable food products.
Approved recurring service/replenishment arrangements.
Fixed assets and equipment generally use a lower commission range of approximately 3–5%, reflecting their different margin and capital structure. Service-oriented transactions may likewise use approximately 3–5% unless a written schedule provides otherwise.
Referral Value Program — Separate Benefit
The referral-value program remains separate from tiered agent commissions. Qualifying referral activity is tracked through the Earthman app, QR code and personal referral link. Existing program rules apply to genuine qualifying customer purchases, with referral value credited separately from commission payouts.
No compensation is earned merely for recruitment. Cancelled/refunded, duplicate or self-referrals are excluded. Final credit, payout, tax and account rules are governed by the applicable written program terms.
Payout Controls
- Calculate eligible net reorder/product/service revenue actually received.
- Exclude refunds, cancellations and excluded taxes/charges according to the commercial schedule.
- Apply the agent's current qualification level.
- Apply the standard 1.5% reorder residual where the reorder is properly attributed.
- Add only approved additional residuals and supplier-funded incentives.
- Respect the 25% standard Earthman agent/member ceiling unless a qualifying supplier-supported replenishment schedule expressly provides the additional economics.
- Issue payout according to the company's approved payout calendar and applicable tax/reporting requirements.
Company Economics
The operating model retains the previously approved planning framework of up to 30% operational incentive budget, approximately 40% materials/minerals procurement, packaging and distribution, and the remaining balance for company operating requirements, reserves, marketing and profit. These are budget ceilings/targets, not automatic allocations on every transaction.