International Blended Exchange Rate FAQs

FAQs for the International Blended Exchange Rate

  1. What is the “International Blended Exchange Rate?
    ”It is a change to the way commissions will be calculated per Business Center with respect to paying commissions on Commission Volume Points (CVP).  In general, commission exchange rates have been “locked” for each market in spite of fluctuations to actual exchange rates over time.  Furthermore, the determining factor for an Associate to receive a given exchange rate payout was based on their country of residence rather than the country(s) that generated the sales volume for any given Business Center.  Moving forward, if certain conditions are met, the exchange rate to be applied to the worldwide seamless CVP earned through the Compensation Plan will take into consideration the locale of business volume.  For each Business Center, the exchange rate for each market where volume was generated will be represented with respect to that particular market’(s) exchange rates proportional to the amount of the volume generated in that market.  This will yield an “International Blended (weighted average) Exchange Rate” by Business Center. 
     
  2. When will the International Blended Exchange Rate be applied?
    The International Blended Exchange Rate will be applied when an individual has more than 50% of their Group Sales Volume (GSV) coming from a market other than their home market. 
     
  3. What about my home market volume?
    All home market volume will be credited first before an International Blended Rate is applied (if necessary).  Hence, provided there is sufficient volume from your home market to warrant the commissions paid on that Business Center, an International Blended Rate will not be applied.  If the check earned on a Business Center is greater than the volume generated from your home market, the maximum amount of commissions paid on that home market at the prevailing exchange rate will be done FIRST.   Any excess CVP from your home market that is paid on that Business Center will be paid at the International Blended Exchange Rate from the other GSV of that Business Center.
     
  4. Is the International Blended Exchange Rate “Fixed” or “Locked In”?
    No.  The International Blended Exchange Rate is not fixed, but rather will depend on the weighted average of where the GSV of a Business Center is generated.  Again, “Home” market GSV will always receive first preference, and the remaining commissions (if any) will be applied the International Blended Exchange Rate.
     
  5. How do I explain this to my team?
    Point out:
    1. Computers calculate each International rate for each Business Center and will provide you with the international rate for a particular Business Center where appropriate.
    2. This only applies to leaders with large organizations or Associates who conduct the majority of their business in countries OTHER than their home market.
    3. Individuals worldwide will all be paid at the exchange rate of a particular country based on the sales they generate from that country.
    4. It fairly pays every Associate the same commissions for the same effort in a particular country rather than paying arbitrarily based on their country of residence.
    5. All International Blended Rates will generally be higher than the true spot exchange rates found on Wall Street.
    6. International Blended Rates can be avoided on any Business Center by simply growing your home market as well as abroad on each Business Center.
    7. Individuals going abroad to build their business may enjoy and increase their commission exchange rates if their home market exchange rate is less than the foreign markets exchange rate the want to go build in.
       
  6. When does this take effect?
    The International Blended Exchange Rate was implemented July 9th, 2010.
     
  7. Do I get the premium in a foreign market if it is higher than my home market?   
    Yes.  If the majority of your business comes from a foreign market and is higher than your home market, then, you would receive an increase in commissions on that Business Center above Business Centers that have a lower exchange rate (including your home market).
     
  8. What markets are affected?
    All markets are calculated based on this new method. Whether or not your check will be increased, decreased, or remain the same will be determined by the markets in which your business volume is generated.
     
  9. What does it mean when you say “BY BUSINESS CENTER?
    ”This means that, if applicable, each Business Center COULD have its own Blended International Exchange Rate that varies each week depending on the market where that volume was generated. 
     
  10. Does this mean each of my Business Centers will have a different blended rate?
    If applicable to a particular Business Center, a different blended rate could very easily occur.   However, how much that blended rate varies depends on how much the sales vary from week to week in each country generating the Business Centers’ GSV.
     
  11. What information will we be provided on DLM to help us manage this?
    DLM will provide the percentage of your home market’s Group Volume for EACH Business Center, on each leg, so that you can monitor the 50 percent threshold.
     
  12. What information will we be on my check stub?
    Your paycheck and The Income Maximizer™ will provide you with the International Blended Exchange Rate that is applied to each Business Center where applicable.
     
  13. Can I see some examples of the International Blended Exchange Rate calculations for a particular Business Center?
    Please see the "EXAMPLES" below.
     
  14. What if I don’t have 50 percent of my business threshold for business in a foreign market?
    In this case, no change from the current commission calculation procedure will occur.  You will be paid at the commission exchange rate of your home market (the market where you reside).
     
  15. What if I generate 5000 SVP on each side of my Business Center from my home market?  Will I be affected?
    No.  Because the maximum CVP that can be earned per Business Center is 1000, and in this case, the amount of GSV you generated from your home market was sufficient to generate 1000 CVP.  You will be paid at the prevailing exchange rate of your home market.
     
  16. Why was this change necessary? 
    1. It seems very complicated.  Isn’t there an easier way?USANA’s commission exchange rates were becoming further away from the actual market exchange rates.  As a result, the enticement to take advantage of earning more commissions over another in the same market, simply by selecting a different home country, was becoming a problem.  USANA pays exchange rates in a market relative to the sales of the market.  When excessive exchange rates are paid for sales in a different market, an International Seamless Binary Compensation Plan will continue to increase faster than sales as people migrate to these higher commission paying foreign markets in some cases, more than 40 percent more.
    2. Had USANA simply adjusted the commission payout exchange rates for all markets to reflect the current rates, a significant payout reduction would have been felt by ALL of our Associates in those markets, regardless of where their sales were generated.  As a result, this change ensures that exchange rates fall in line with respect to where volume is generated and significantly reduces the overall reduction. Notwithstanding, on an individual basis, this may affect some more than others who generate significantly more sales in a market other than their home market.
       
  17. Can I get MORE than my home market exchange rate if I build in a country that has a higher premium than my own?
    Yes.  If the majority of your business comes from a foreign market higher than your home market then you would receive an increase in commissions on that Business Center above Business Centers that have a lower exchange rate (including your home market).
     
  18. I am being paid on a Business Center at an International Blended Exchange Rate that is less than my home market commission exchange rate. Can I increase it?  And if so, how?
    Yes.  Simply add volume from your home country.   Remember, home volume counts first when determining exchange rate payouts.
     
  19. I am being paid on a Business Center at an average exchange rate that is more than my home market commission exchange rate on a particular BC. Can it go down?  And if so, how can I prevent that from happening?
    International exchange rates are a function of where the GSV is generated.  As your international business grows, building in markets where the exchange rate premium is greater than your existing international blended rate will increase your blended average rate.
     
  20. How is Rollover handled in an International Blended Exchange Rate?
    If an International Blended Exchange Rate is required on a Business Center, the Rollover volume will be counted AFTER your current week’s home volume is calculated.  Then, the rate for Rollover will be the most current prior week’s International Blended Exchange Rate. 


Examples


Example 1)

Distributor Home Market: Australia
BC Earnings in Commission Volume Points (CVP): 600
Total Current Week Group Sales Volume Points (GSV): 6000

               
            4,000 AUD             2,000 CAD

Nothing changes because the majority of the volume comes from the Distributor’s home market.  Hence, the payout will simply be 600 CVP * Australian Commission Exchange Rate of 1.59, or 954 AUD total.


Example 2)

Distributor Home Market: Australia
BC Earnings in Commission Volume Points (CVP): 1,000
Total Current Week Group Sales Volume Points (GSV): 10,000

              
            1,000 AUD             9,000 CAD

In this example, since the majority of the volume comes from a market other than the Distributor’s home market, the International Blended Exchange Rate will apply as follows:

Step 1) 1,000 AUD GSV / 10,000 Total GSV * Australian Commission Exchange Rate of 1.59, or (10% * 1.59) = .159;

Step 2) 9,000 CAD GSV / 10,000 Total GSV * Canada to Australian Commission Exchange Rate of 1.467, or (90% * 1.467) = 1.32;

Step 3) Add Step 1 to Step 2 to create the International Blended Exchange Rate: .159 + 1.32 = 1.479.

Step 4) Multiply the CVP by the International Blended Exchange Rate to obtain the final payout rate: 1,000 * 1.479 = 1,479 AUD.


Example 3)

Distributor Home Market: Canada
BC Earnings in Commission Volume Points (CVP): 1,000
Total Current Week Group Sales Volume Points (GSV): 10,00       

               
            1,000 CAD             5,000 NZD
            2,000 HKD             2,000 USD

In this example, since the majority of the volume comes from a market other than the Distributor’s home market, the International Blended Exchange Rate will apply as follows:

Step 1) 1,000 CAD GSV / 10,000 Total GSV * Canada Commission Exchange Rate of 1.38, or (10% * 1.38) = .138;

Step 2) 2,000 HKD GSV / 10,000 Total GSV * Hong Kong to Canada Commission Exchange Rate of 1.0276, or (20% * 1.0276) = .20552;

Step 3) 5,000 NZD GSV / 10,000 Total GSV * New Zealand to Canada Commission Exchange Rate of 1.3554, or (50% * 1.3554) = .6777;

Step 4) 2,000 USDGSV / 10,000 Total GSV * United States to Canada Commission Exchange Rate of 1.039, or (20% * 1.039) = .2079;

Step 5) Add Steps 1 - 4 to create the International Blended Exchange Rate: .138 + .20552 + .6777 + .2079 = 1.229.

Step 6) Multiply the CVP by the International Blended Exchange Rate to obtain the final payout rate: 1,000 * 1.229 = 1,229 CAD.


Example 4)

Distributor Home Market: Singapore
BC Earnings in Commission Volume Points (CVP): 1,000
Total Current Week Group Sales Volume Points (GSV): 9,000
Total Current Week Rollover Volume Used to Calculate CVP: 1,000

               
            3,600 MYD             4,500 JPY
            900 SGD                500 rollover
            500 rollover

Again, since the majority of the volume comes from a market other than the Distributor’s home market, the International Blended Exchange Rate will apply as follows:

Step 1) 3,600 MYD GSV / 10,000 Total GSV * Malaysia to Singapore Commission Exchange Rate of 1.50, or (36% * 1.50) = .540;

Step 2) 900 SGD GSV / 10,000 Total GSV * Singapore Commission Exchange Rate of 1.69, or (9% * 1.69) = .152;

Step 3) 4,500 JPY GSV / 10,000 Total GSV * Hong Kong to Singapore Commission Exchange Rate of 1.70, or (45% * 1.70) = .765;

Step 4) Add Steps 1 - 3 to create the International Blended Exchange Rate: .540 + .152 + . 765 = 1.457.

Step 5) Since the current week’s check required 1,000 total volume points to generate the 1,000 CVP check, 100 of the total 1,000 CVP will be treated as rollover, and be applied the International Blended Exchange Rate.

Step 6) Multiply the CVP by the International Blended Exchange Rate to obtain the final payout rate: 1,000 * 1.457 = 1,457 SGD.

 

Exchange Rate FAQ:

  1. How much was the commission exchange rate adjusted?
    On average between 3 and 4 percent.
     
  2. What markets are currently being adjusted?
    Australia, Canada, Japan, New Zealand & Singapore
     
  3. What markets are affected by currency rate fluctuations?
    Potentially all markets, since these rates will be used in the calculation of the International Blended Exchange Rates for Associates.
     
  4. Will the commission exchange rates ever be below the real market rates?
    It is possible that for a brief period a spot rate (the most current real exchange rates for world markets) could be above USANA exchanges rates.  However, USANA tries to project market exchange rates to average at least 10 percent above the yearly average real market rates.
     
  5. How often will the commission exchange rate change?
    Exchange rates will be reviewed at the end of each calendar year and possibly adjusted UP or DOWN, depending on world economic conditions uncontrollable by USANA.  It is USANA’s hope that exchange rates are changed infrequently and as little in magnitude as possible.
     
  6. Why was this modification implemented?
    USANA’s commission exchange rates are VERY high above actual market exchange rates, as high as 47 percent!  As a result, the enticement to take advantage of earning more commissions over another in the same market, simply by selecting a different home country, was becoming a problem.  USANA pays exchange rates in a market relative to the sales of the market.  When excessive exchange rates are paid for sales in a different market, an International Seamless Binary Compensation Plan will continue to increase faster than sales as people migrate to these higher commission-paying foreign markets.
     
  7. Can commission exchange rates ever go up?
    Yes.  Exchange rates will be reviewed at the end of each calendar year and possibly adjusted up or down, depending on world economic conditions uncontrollable by USANA.  It is USANA’s hope that exchange rates are changed infrequently and as little in magnitude as possible.
Posted: 19-Jul-2011
Reviewed/Updated: 16-Oct-2015