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Safe Chosen Global Sales Commission Policy 

Chapter I — Recruitment and Training of Sales Representatives

Article 1 — Basic Qualifications for Sales Representatives

Safe Chosen Global, LLC (“SCG”) expects every sales representative to demonstrate the following qualities:

  • Respect for facts and truth;

  • A positive, energetic, and efficient approach to work;

  • A willingness to challenge oneself and pursue continuous growth;

  • Creativity and independent thinking;

  • Respect for different opinions, backgrounds, and perspectives;

  • Commitment to SCG’s product philosophy, corporate values, and long-term mission.

Article 2 — Probationary Period

  1. Upon engagement, a sales representative is not required to pay SCG any franchise fee, training fee, or investment contribution.

  2. The sales representative shall enter into a three-month probationary agreement with SCG.

  3. No minimum sales performance requirement shall apply during the probationary period.

  4. At the end of the probationary period, both parties shall evaluate the working relationship:

    • If both parties agree that the relationship should continue, they shall enter into a formal one-year sales agreement;

    • If either party determines that the relationship is not suitable, the working relationship may be terminated.

Commissions on orders completed during the probationary period shall still be paid in accordance with this Policy.

Article 3 — Required Agreements

Before beginning sales activities, each sales representative shall sign the following agreements with SCG:

  • Sales Representative Agreement;

  • Non-Disclosure Agreement;

  • Non-Solicitation Agreement.

Any non-compete provision, if applicable, must be reviewed separately under the laws of the state in which the sales representative works or resides.

Article 4 — Sales Training

  1. A sales representative must complete SCG’s required product, sales, compliance, and customer-management training before formally beginning sales activities.

  2. SCG shall not charge sales representatives for such training.

  3. Sales representatives may not use any product data, certification claims, environmental claims, or promotional materials that have not been approved by SCG.

Chapter II — Customer Assignment and Protection

Article 5 — General Principle

SCG applies the following principle:

The person who develops the customer must register the customer, and the person who continuously maintains the customer relationship retains the corresponding commission rights.

A customer independently developed by a sales representative and confirmed through SCG’s customer-management system shall generally be assigned to that sales representative.

The phrase “permanently belongs to the sales representative” should be replaced with “permanently retains commission rights associated with the customer.” For legal and commercial-management purposes, the customer relationship and customer information belong to SCG. The sales representative receives commission rights, not ownership of the customer.

Article 6 — Customer Registration

Upon identifying a prospective customer, the sales representative must enter the following information into SCG’s designated system:

  • Customer’s company name;

  • Contact person’s name and contact information;

  • Date of initial contact;

  • Communication records;

  • Quotation or sample records;

  • Planned next steps and follow-up activities.

Customer assignment shall be determined primarily by the earliest genuine and valid customer-development record in the system. Merely entering a customer’s name without evidence of substantive contact shall not constitute valid customer development.

Article 7 — Customer Protection Period

Except under the following circumstances, no other sales representative may contact, quote, solicit, or attempt to take over a registered customer without authorization:

  1. The original sales representative has had no valid contact or documented follow-up with the customer for 12 consecutive months;

  2. The customer voluntarily requests a different sales representative;

  3. The original sales representative voluntarily relinquishes the customer;

  4. The original sales representative leaves SCG and has violated an SCG agreement or sales rule;

  5. The original sales representative has engaged in fraud, made false promises, committed a serious service failure, or otherwise harmed SCG’s interests;

  6. SCG determines that reassignment is necessary to protect a substantial business interest.

If SCG reassigns a customer, it shall provide written clarification regarding customer-maintenance responsibilities and the applicable commission allocation.

Chapter III — Individual Sales Commission Structure

Article 8 — Compensation Structure

Sales representatives generally shall not receive a fixed base salary. Their compensation shall primarily consist of sales commissions.

Whether a sales representative is classified as an employee or an independent contractor must be determined based on the representative’s actual working relationship with SCG and applicable law. Classification cannot be determined solely by the title of the agreement.

Article 9 — Commission on Self-Developed Customers

The following commission structure is recommended:

Order Stage Sales Commission
Customer’s first order 20% of Commissionable Gross Profit
Repeat orders after the first order and before the first customer anniversary 10% of Commissionable Gross Profit
Repeat orders during the second customer year 8% of Commissionable Gross Profit
Repeat orders during the third customer year and thereafter 5% of Commissionable Gross Profit

A “customer year” begins on the invoice date of the customer’s first order. It is not based on a calendar year.

Provided that the sales representative continues to comply with all SCG agreements, the representative may continue to receive a 5% commission on repeat orders from the representative’s customers without a fixed expiration date.

Article 10 — Commission Following Customer Reassignment

If a customer is reassigned to another sales representative with SCG’s approval:

  • The original developing sales representative shall receive 1% of the Commissionable Gross Profit from the order;

  • The newly assigned sales representative responsible for maintaining the customer shall receive 4% of the Commissionable Gross Profit from the order.

The combined commission shall not exceed the standard 5% repeat-order commission applicable from the third customer year onward.

If the customer is still within the first or second customer year, SCG shall confirm the specific commission allocation in writing. As a general rule, the total sales commission paid on the order shall not exceed the commission rate otherwise applicable to that order.

Article 11 — Definition of Commissionable Gross Profit

For purposes of this Policy, “Commissionable Gross Profit” means:

The sales revenue actually paid by the customer and received by SCG, less the product costs, transportation costs, import-related costs, and transaction fees directly attributable to the order.

The calculation shall be:

Commissionable Gross Profit = Collected Sales Revenue − Product Purchase or Manufacturing Costs − International Freight − Direct Domestic Transportation Costs − Customs Duties and Clearance Fees − Order-Specific Packaging Costs − Platform and Payment Processing Fees − Discounts, Refunds, and Return Losses

Unless otherwise provided in the applicable agreement, the following expenses shall not be deducted when calculating Commissionable Gross Profit:

  • Company office rent;

  • General administrative salaries;

  • General marketing expenses;

  • Operating expenses not directly related to the order.

Example:

If SCG receives $10,000 from a customer order and the total directly related costs are $7,000:

Commissionable Gross Profit = $10,000 − $7,000 = $3,000

If this is the customer’s first order, the sales commission shall be:

$3,000 × 20% = $600

Article 12 — Conditions for Commission Payment

  1. SCG must have actually received the customer’s payment.

  2. The products must have been shipped, and there must be no material return, chargeback, refusal-of-payment, or fraud dispute.

  3. SCG shall calculate commissions monthly and pay them by the designated date of the following month.

  4. If a customer later receives a refund, returns products, initiates a chargeback, or fails to pay an outstanding amount, SCG may adjust the related commission against unpaid or future commissions.

  5. SCG shall provide the sales representative with a basic statement showing the order revenue, direct costs, Commissionable Gross Profit, and commission calculation.

Chapter IV — Post-Termination Commissions on Repeat Orders

Article 13 — Separation in Good Standing

If a sales representative leaves SCG in good standing and continues to comply with all confidentiality, non-solicitation, and other post-termination obligations, the representative may receive the following commission on repeat orders from customers independently developed by that representative:

5% of the Commissionable Gross Profit from each qualifying order, for a maximum period of three years.

The three-year period begins on the sales representative’s official separation date.

Article 14 — Circumstances Resulting in Cancellation of Post-Termination Commissions

Following an investigation and confirmation of a material breach, SCG may, to the extent permitted by applicable law, suspend or cancel future post-termination commissions that have not yet been earned if the former sales representative:

  • Unlawfully obtains, removes, or retains SCG’s confidential customer information;

  • Violates an enforceable non-solicitation provision;

  • Conducts business by falsely claiming to represent SCG;

  • Commits fraud against SCG or a customer;

  • Intentionally damages SCG’s commercial relationship with a customer;

  • Commits another material breach expressly identified in the applicable agreement.

The Policy should not state that “if a representative takes a customer, all historical commissions will be forfeited.” Commissions that have already been earned may be protected under applicable state wage and commission laws. A more prudent approach is to cancel only future contractual commissions that have not yet been earned, while preserving SCG’s right to pursue compensation for actual damages.

Chapter V — Team Development Commissions

Article 15 — Eligibility to Develop a Sales Team

Each eligible sales representative may recommend and assist in training up to 12 new sales representatives to form the representative’s sales team.

Each new team member must:

  • Pass SCG’s review and approval process;

  • Sign all required agreements;

  • Complete SCG’s required training;

  • Receive formal approval from SCG.

A sponsoring sales representative may not charge any fee to a new sales representative and may not receive compensation solely for recruiting individuals.

Article 16 — Team Development Commission

A sponsoring sales representative may receive:

2% of the Commissionable Gross Profit generated by orders attributable to each directly sponsored sales team member.

This commission shall be paid by SCG and shall not be deducted from the new sales representative’s individual commission.

Team development commissions shall be based solely on genuine product sales and shall not be paid merely for recruiting sales representatives.

If a team member leaves SCG, commits a serious violation, or has no valid sales activity for 12 consecutive months, the sponsoring sales representative’s team commission rights relating to that team member shall terminate.

Article 17 — Eligibility for Consideration as a Regional Manager

A sales representative may be considered for a regional manager position after meeting the following requirements:

  • Successfully developing 12 qualified sales team members;

  • The team achieving the sales-performance standards established by SCG;

  • Maintaining satisfactory customer-service and compliance records;

  • Demonstrating the ability to train and manage a sales team;

  • Having no record of material violations.

Meeting these requirements only makes the sales representative eligible for consideration. It does not result in automatic appointment as a regional manager. Final appointment shall be determined by SCG following a comprehensive evaluation.

Chapter VI — Annual Team Bonus

Article 18 — Bonus Pool

Based on SCG’s operating performance for the applicable year, SCG may allocate between 3% and 5% of the qualifying team’s annual Commissionable Gross Profit to establish an annual Team Bonus Pool.

The specific allocation percentage shall be determined by SCG based on profitability, cash flow, and team performance. SCG does not guarantee that the allocation will be 5% or that a bonus pool will be established every year.

Article 19 — Eligibility Requirements

To participate in the annual Team Bonus Pool, a sales representative must satisfy all of the following requirements:

  • Have no material violations during the applicable year;

  • Maintain at least a 90% attendance rate at required team meetings;

  • Complete reasonable operational-development tasks assigned by SCG;

  • Maintain customer-service and recordkeeping standards;

  • Remain in an active working relationship with SCG on the bonus payment date, except in cases of normal retirement or other special circumstances approved by SCG.

Article 20 — Evaluation Criteria

Evaluation Category Weight
Individual sales performance 50%
Teamwork and collaboration 20%
Customer feedback 15%
Contributions to team and company operations 15%
Total 100%

Each individual bonus shall be calculated as follows:

Individual Annual Bonus = Team Bonus Pool × Individual Weighted Score ÷ Total Weighted Scores of All Eligible Sales Representatives

Chapter VII — Referral Bonus

Article 21 — Eligible Referrers

Any individual who is not the sales representative responsible for a particular customer may qualify for a one-time referral bonus if that individual provides SCG with a valid customer referral that ultimately results in the customer’s first completed order.

Article 22 — Referral Bonus Amount

The recommended referral bonus is:

2% of the Commissionable Gross Profit from the customer’s first order.

The referral bonus shall be paid only once and shall not apply to repeat orders.

If the referrer later becomes the sales representative responsible for that customer, the referrer may not receive both the 20% first-order sales commission and the 2% referral bonus on the same order. Only the higher amount shall be paid.

Before referring a customer, the referrer must register the prospective customer and obtain confirmation from SCG. A customer already existing in SCG’s system shall not qualify for a referral bonus.