Understanding Net Points

The Company utilizes Net Points to qualify members for trips, promotions, pools and other rewards. It is a system that allows new members to compete directly with seasoned The Company veterans.

It is very important to keep these facts in mind when dealing with net points and net point ratios:

  • A Member’s Net Points is defined as the sum of a person’s total points (both positive and negative) as transmitted to The Company by the product providers within a set time frame;
  • A Member’s Net Point Ratio is defined as that person’s net points (as defined above) divided by only his/her positive points. This calculation provides a general comparison of the ratio of total submitted business to that which is issued and in-force for a certain associate or team within a set time frame;
  • Net Point Ratio is not the same as “persistency” and cannot be compared to product provider persistency. Commonly, product provider persistency does not include taken (“NTO”) policies for that calculation;

Limited scenarios exist that may negatively impact net point and net points ratios and are usually associated with how our providers submit commission data to The Company. The most common of these scenarios include:

  • Policy reissues (for whatever reason);
  • Changes in life policy face amounts; and
  • Repaid commission transactions that result in a shift in the number of Vice President generations paid

The Company solely relies on the policy information sent to us by our product providers, the scenarios described above will arise from time-to-time.  Since the Company does not maintain the policy data on individual sales, the Company must trust the information that is received from the product providers to issue commissions and points. The Company cannot make point calculation adjustments that conflict with the providers’ statements.

We firmly believe that using net points is the very best way to measure success with our organization. By handling these scenarios with absolute consistency, it ensures that everyone is operating under the same rules and provides a level and fair playing field.

We fully acknowledge that this may be a source of concern for those members who are “on the bubble” and relying on one or two last-minute sales to qualify for a promotion or contest. It is important to understand, however, that these scenarios are treated the same for all members across the organization.  This means that the impact on your points from a change in policy face amount (for example) is handled the same way for you as it is for everyone else within The Company.