How Equivalent Cycles are Calculated

Retail Profit and Product Introduction Bonuses are calculated weekly and the equivalent number of Cycles for recognition purposes is calculated by dividing the total US Dollar amount earned by the current Cycle Value for that week. Each earnings category is calculated separately with fractions rounded to nearest Cycle before overall equivalent Cycles are determined.

Detailed Example: Equivalent Cycles Calculations

An Executive has a goal to earn 20 Cycles to achieve 2 Star Golden Circle recognition and earns 17 Team Bonus Cycles and 1 Matching Bonus Cycle for a combined number of 18 Cycles for the week. Additional earnings during the week will also be counted. For this example the Executive earned $102 by achieving $77 in Retail Profit and $25 in PIB. Assuming a Cycle Value of $54 and calculating each earnings category separately, achieving $77 in retail sales would result in 1.4 Cycles which will be rounded down to 1 Cycle. A $25 Product Introduction Bonus would result in .4 Cycles which would be rounded down to 0 and would generate no equivalent Cycles. Thus, the overall equivalent Cycles equal 19 Cycles (18 + 1 = 19 Cycles). The Executive remains as a 1 Star Golden Circle for recognition.

Note:
In the above example, not realizing that each earnings category is calculated separately, it would be an error to simply divide the $102 additional earnings by the Cycle Value of $54 and assume 2 Cycles ($102 / $54 = 1.9, which rounds to 2) and further assume in error that the Executive achieved 20 Cycles (18 + 2 = 20 Cycles) and qualifies as a 2 Star Golden Circle.

Simple Example: Earnings Goal for Recognition

An Executive with a goal to be recognized as a 2 Star Golden Circle with 20 equivalent Cycles ($54 X 20 Cycles = $1,080) should strive to produce sufficient earnings to generate one additional Cycle to cover the rounding computations as each earnings category is calculated ($54 X 21 Cycles = $1,134).