Compensation

Compensation.DNA.fyi

Note: As required by federal regulations, this compensation plan cannot be shared with anyone who is not a registered ACG advocate!

Aug 2020 update: There will soon be a separate Personal Protective Equipment (PPE) compensation plan.

Below, I link the video but also provide summary notes so you don't have to watch the video all over again to catch some of the points. And I provide my own two cents to help 'splain it all...

Read the introduction on the Compensation page of the ACG Coaching website to absorb these:

PowerPoint

Video (I have linked it further below also)

My notes from the Video...

I've documented a few points so you have quick access without having to fast forward through the video to find any particular point...

The ACG Compensation Plan is not Multi-Level Marketing (MLM) or an Affiliate plan.

It more closely resembles a corporate plan, in which the highest percentage of compensation goes to the actual sponsor (that would be you!) of a provider who orders DNA tests (or other products). Additionally any income generated from tests ordered by providers sponsored by someone you directly sponsored reaps additional income to you.

And yet, if you build three teams with an established minimum of sales per period in each team, you can additionally be compensated as a District Manager, earning 10% of gross profit on all activity under you, in addition to earnings from gross income generated by those providers (40%) and the providers of ACG agents (5%) which you have personally sponsored. I discuss this further at the bottom in this section:

My Synopsis on How to become a District Manager

Compensation Plan Video

40% to 60% of Gross Profit

Your compensation on each product (such as a DNA test or other products) starts at 40% of the company's gross profit, and can rise to 50%, then 60% depending on volume (summarized below in Summary of Rank versus Monthly GPP. That applies if you directly sponsored the provider ordering the product.

• The "average" gross profit for a pharmacogenomics (PGx) test is approximately $225-$280 depending on insurance (unless it is a self-pay rather than insurance).

• For CGx (the cancer test) the gross profit is approximately $800 to $1800, depending on insurance.

• Our other products such as in the Exceptional Providers Program vary.

If the patient is not covered by insurance (or if their insurance company will not pay for PGx testing), they can have the PGx test done at a minimal cost. These do not provide gross profit (or just a little) because it is offered by the lab at absolute minimum to the individual.

However, this usually results in additional income to the provider, the ACG company and in turn the advocate because very happy patients eventually could refer friends who have insurance to have the test ordered.

Combination of Percentage (1099) and W-2 Compensation

There are two types of compensation:

"Bucket" Compensation (1099)

You will continue to earn percentage income as described above for revenue from non-regulated activities. We call that "bucket" income... The company is authorized by the government to pay you on a percentage basis for this type of income.

"Non-Bucket" Compensation (W-2)

For activities regulated by the HHG Centers for Medicare and Medicaid Services (CMS) such as PGx or CGx testing, those regulations require that you be paid as an employee (W-2 income) with a flat salary rather than on a percentgage basis. We call this "non-bucket" income.

Once you have earned non-bucket regulated compensation of at least $600, the company will observe the next four months' non-bucket compensation. You will still be paid on a percentage basis during those four additional months beyond the $600 threshold.

Based on the revenue stream you bring into the company, the company will enroll you as an employee, then begin paying you a flat salary in lieu of a percentage for the non-bucket income. This salary will be updated yearly.

In parallel, the company will continue to pay you a percentage compensation for the bucket income.

In the long run, your non-bucket compensation will be approximately the same as if you were paid with the percentage compensation, but this will comply with CMS regulations. It will also tend to "smooth out the bumps" in monthly compensation.

What if my Salary does not "Keep Up" with my Increased Sales?

Good question! The current plans are -- but wait for the final written compensation plan in March 2020 -- that you will have the opportunity for profit sharing commensurate with the "deficit" between your performance versus your salary.

Then after 12 months, your salary will be reviewed (which is only allowed by law each 12 months) for adjustments according to your gross profit performance.

For more details, watch the 11 Feb 2020 Compensation Plan Update Video.

A Few of the PowerPoint slides and Notes for your quick reference:

• • • If a district is still small such that the Regional Manager (RM) is also performing the function of the District Manager (DM), that RM will receive 10% + 5%=15% in that particular district.

      • John note: The following is an example I confirmed with ACG:

        • If an RM has 3 DMs (that's one requirement for RM, other requirements are in the Regional Manager section below) but you have any other legs not qualified as DM, the RM would receive the additional 10% DM commissions in those non-DM legs (in addition to the 5% RM commission), assuming the other RM qualifications are met.

        • In fact, for providers which the RM personally sponsored (not in the three DM legs), the RM would receive 40% (personal sponsor level if you are averaging less than $100K/month GPP) + 10% (as DM) + 5% (as RM) = 55% of gross profit.

        • For providers in those non-DM legs which were sponsored by a teammate whom the RM personally sponsored, the RM would receive 5% (Personal Bonus since you sponsored the teammate) + 10% (as DM) + 5% (as RM) = 20% of gross profit.

Refundable Registration Fee

• • Once you accumulate $1800 in Gross Personal Production within the first 180 days, your registration fee is returned to you.
    

Summary of Rank versus Monthly GPP

Personal Management Bonus

District Manager

• • You must have and maintain one personal provider account (but your total of gross profit from activity by providers you sponsor must be $15K over 90 day rolling period.)

  • See My Synopsis on How to become a District Manager at the bottom.

Regional Manager

National Manager

ACG is distributing a phenomenally high percentage of gross profit to the field!

My Synopsis on How to Become a District Manager

• Get three lines (does not have to be people you directly sponsored, but somewhere in three different lines) of "Qualified Advocates" (QA) who are bringing in $100K or more gross profit to the company per month (rolling 90 day average). That can be any product(s) by ACG, but as a guidelines, a PGx test brings in about $250 gross profit to the company, so that's about 400 tests per month.

• At that point (if maintained), you qualify as a District Manager (DM) and you'll get 10% of the company's gross profit brought in under your umbrella, not just the legs under the qualified advocates, but ALL of your legs. This is in addition to 40% (or more, depending on your level) for your personal production and 5% for any personal production from the people you directly sponsor.

• If one of those QAs becomes a District Manager, you aren't getting 10% for all of that person's activity under him, but you're getting 10% for all other legs plus any within that leg which is between you and that District Manager (if you didn't directly sponsor that person who became a District Manager). In other words, the company isn't paying two District Managers 10% + 10% for the same activity. As it is, the company is paying out 82% of the gross profits to the field.

• Also, even though you won't get the 10% on that specific activity under that particular District Manager under you, the gross income which that brings in helps you stay qualified as a District Manager (or higher!) since it contributes to the $500K minimums (90 day rolling average) each month.

Where to Go Next

You have many websites which are fine-tuned to particular audiences. Familiarize yourself with them on this page: