_{How You Make Money}

There are five different ways to make money as a VIP:

Reward Points on your personal purchases

Referral Fee Commissions on Members' purchases

Personal Pay Point Income on your personal purchases, your Member's purchases, and on the purchases made by Members that were referred by an Affinity Group.

Organizational Pay Point Income based on the Pay Points earned on all the purchases made within your membership organization.

Executive Director Bonuses which is residual income based on a percentage of Pay Points earned by VIPs from within your network that have qualified as Executive Directors.

Earning Reward Points On Your Personal Purchases

Every time you make a purchase with a participating Merchant Affiliate, you will earn a Reward Points on your purchase.

The Reward Points that you are able to earn vary and are per dollar spent these rates are posted at the various store listings ( ClubShop Mall, ClubBucks Rewards Merchant Directory, and Business Centers ) and are listed at the VIP Compensation Plan.

Besides earning Reward Points on your personal purchases, you also earn "Pay Points" on them, which determine your eligibility and amount of your Organizational Income. Although Pay Points and Organizational Income are discussed in the Trainee II Course, it is important to note that as a VIP you are able to not just earn increased Reward Points on your personal purchases, but this also boosts your ability to earn an increased Organizational Income.

Earning Referral Fees on Your Members' Purchases

You will earn a Referral Fee Commission on:

• Personally sponsored Shopper or Associate Members' purchases with a participating Merchant.

• Transferred Shopper or Associate Members' in your non-VIP network which have made purchases with a participating Merchant. You do not earn Referral Fees on your personally sponsored VIPs' purchases (except for their initial ClubAdvantage subscription fee), as they retain them as part of their Reward Points.

The Referral Fee Commission percentages that you are able to earn vary and are equal to 1/2 of the Pay Point percentages that are posted at the various store listings (ClubShop Mall, ClubBucks Rewards Merchant Directory, and Business Centers). Other Referral Fee Commission percentages and amounts are listed at the VIP Compensation Plan.

Personal Pay Point Income

As a VIP Member you are able to receive Personal Pay Point Income on your personal purchases, on the purchases made by your personally sponsored Members, and on the purchases made by Members that were referred by Affinity Groups that you sponsor.

Each purchase made by a Members carries a "Pay Point" value. The Pay Point percentage on each purchase will vary from store to store. The average is about 3%.

Entitlement begins once you have 75 Pay Points being generated in a month from a combination of your personal purchases, your personally referred Members'purchases and the purchases made by Members referred by an Affinity Group that you referred. As your Pay Point volume increases, so does the percentage that you will earn.

You can earn as much as 70% of your Personal Pay Points and there are no limits on your income.

Monthly Organizational Income

One of your first goals should be to have at least one VIP sponsored in two different lines of sponsorship. This will qualify you to begin to earn Monthly Organizational Income (override commissions) on the purchases and subscriptions made by all of the VIPs and their Members, within your organization. Once you qualify for the minimum Monthly Organizational Income, your monthly subscription fee will be deducted from your earnings. To see how you can increase your Monthly Organizational Income, refer to our
VIP Compensation Plan.

Executive Director Bonuses

Besides being able to have an ongoing Monthly Organizational Income, you will also be developing a "vested" income that is "residual" to provide yourself with a kind of DHS Club pension.

This income is "vested" which means that you will be entitled to it in the future upon meeting the necessary qualifications (see below)

This income is "residual" which means that it is paid to you each month, without your having to do anything more to be entitled to it. You do the work once, but get paid for it on a continuing basis.

Here's how it works. Once one of your VIPs qualifies as an Executive Director (by accumulating 6,000 Pay Points in a month), you will be eligible to begin to earn a Vested Income at the beginning rate of 7% of their Pay Points, as an Executive Director.

As their Pay Points increase and as you gain more Executive Directors in your network, you are able to earn a higher percentages and be paid for the additional Executive Directors in your network. Potentially, you can earn thousands of dollars per month in Vested Income for each line of sponsorship that you have an Executive Director in!