Compensation Plan
Updated: June 1, 2025
Introduction
This Compensation Plan (the “Plan”) outlines the structure for earning commissions as an independent distributor (“Distributor”) for Botanic (the “Company”), a direct sales company operating a 5-level uni-level program. The Company is committed to compliance with all applicable federal and state laws governing multi-level marketing (“MLM”) and direct sales businesses in the United States, including but not limited to guidelines issued by the Federal Trade Commission (“FTC”) regarding pyramid schemes, deceptive practices, and earnings claims. Compensation under this Plan is based solely on bona fide retail sales of products to end-user customers (i.e., individuals who purchase products for personal use and not for resale or inventory loading). No commissions are paid for recruitment of Distributors, purchases by Distributors for their own inventory, or any other activity not directly tied to customer purchases. This structure is designed to ensure the Plan operates as a legitimate MLM program and not an illegal pyramid scheme, in accordance with FTC guidance and state regulations.
Participation in this Plan is voluntary and subject to the terms of the Distributor Agreement, Policies and Procedures, and all applicable laws. The Company reserves the right to amend, modify, or terminate this Plan at any time, with or without notice, to ensure ongoing compliance with legal requirements or for business reasons. Any such changes will be communicated to Distributors via the company’s official channels. This Plan is effective as of the date of enrollment and applies uniformly in all 50 states and the District of Columbia, subject to any state-specific registration or disclosure requirements.
Definitions
Distributor: An independent contractor who has enrolled with the Company to sell products and build a downline organization and purchases a Distributor Pack.
Customer: An end-user who purchases products for personal consumption, not for resale. Customers may be personally enrolled by a Distributor but are not Distributors themselves.
Downline: The network of Distributors sponsored directly or indirectly by a given Distributor, organized in levels based on sponsorship lineage.
Uni-Level Structure: A compensation model where Distributors can sponsor an unlimited number of frontline (Level 1) Distributors, with subsequent levels formed by the sponsorships of those in the downline.
Qualifying Volume (QV): The net purchase price of products sold to Customers, excluding shipping, handling, taxes, and any returns or refunds. All commissions are calculated based on QV.
Level: Refers to the generational position in a Distributor’s downline.
Level 1: Distributors personally sponsored by you.
Level 2: Distributors sponsored by your Level 1 Distributors.
Level 3: Distributors sponsored by your Level 2 Distributors.
Level 4: Distributors sponsored by your Level 3 Distributors.
Level 5: Distributors sponsored by your Level 4 Distributors.
Active Status: A Distributor must generate a minimum of $100 in personal QV from Customer purchases in a given commission period to qualify for commissions on downline levels.
Eligibility and Qualifications
To participate in this Plan and earn commissions:
You must be a registered Distributor in good standing, having executed the Distributor Agreement and complied with all Policies and Procedures.
You must maintain Active Status during the commission period (typically weekly, as defined by the Company).
All sales must be verifiable retail sales to legitimate Customers, supported by documentation if requested by the Company for audit purposes. Inventory loading or purchases by Distributors for qualification purposes do not count toward QV.
Distributors must comply with all federal and state laws, including prohibitions on deceptive earnings claims, as outlined in FTC rules.
Failure to meet these requirements may result in forfeiture of commissions, suspension, or termination of Distributor status.
Compensation Structure
The Company operates a 5-level uni-level compensation structure, where commissions are earned exclusively on QV generated from Customer purchases within your downline organization. There are no bonuses for recruitment, rank advancements, or other non-sales activities. Commissions are calculated as follows:
| Level | Description | Commission Rate on QV |
|---|---|---|
| Level 1 | Purchases by Customers of your personally sponsored Distributors (or your direct Customers). | 10% |
| Level 2 | Purchases by Customers of your Level 2 Distributors. | 5% |
| Level 3 | Purchases by Customers of your Level 3 Distributors. | 5% |
| Level 4 | Purchases by Customers of your Level 4 Distributors. | 3% |
| Level 5 | Purchases by Customers of your Level 5 Distributors. | 2% |
Commissions are paid only on QV from verified retail sales to end-users.
No commissions are earned beyond Level 5.
Total potential payout per sale chain is capped by the 5-level structure, but width (number of frontline sponsors) is unlimited.
Example: If a Customer purchases $100 in products (QV) through a Level 3 Distributor in your organization, you earn 5% ($5) on that QV, provided you are Active.
Commission Calculation and Payment
Commissions are calculated weekly based on QV accumulated during the week.
Payout Service
The Company uses MassPay as its Payout Service Provider. Payments are issued via MassPay, typically within 7 days following the end of the commission period.
Payout via Store Credit
We offer the option to have your commissions paid out in store credit rather than through our payout service. The Distributor can apply the store credit at checkout. You can view your available store credit in your Back Office. You can change the option to receive your commission payout in your Back Office at anytime. The Company cannot reverse your choice of payout method after commissions have been marked paid.
The Company may withhold payments for verification, disputes, returns, or compliance audits.
All commissions are subject to applicable taxes, and Distributors are responsible for reporting earnings as independent contractors under IRS rules.
In the event of returns or refunds, commissions may be reversed or adjusted proportionally.
Compliance and Disclosures
The Company requires all Distributors to provide accurate and non-deceptive information about the Plan. Pursuant to FTC guidelines, any earnings representations must be truthful, typical, and substantiated, and must include clear disclosures that most participants earn minimal or no income. The Company will provide an Income Disclosure Statement annually or as required by law.
This Plan is governed by the laws of the State of Colorado, without regard to conflict of laws principles. Any disputes arising under this Plan shall be resolved through binding arbitration in accordance with the rules of the American Arbitration Association.
By participating in this Plan, you acknowledge that success depends on your individual efforts, market conditions, and compliance with laws, and that no specific earnings are guaranteed.
Contact Us
If there are any questions regarding the Compensation Plan, you may Contact Us.
