Dear Isagenix Leaders,
Earlier this year, we announced a number of initiatives that will provide greater access to the Isagenix product line and move us closer to fulfilling our vision by positively impacting more lives in Colombia and around the world. We believe that these initiatives are sustainable and strategic solutions, both right for the company and for our Associates.
The first initiative we announced was the development of a new, more affordable, high-quality product line. We are looking forward to having this new line in your market in time for our first-ever regional convention in 2016.
At the same time we rolled back prices on our existing core product offering better alignment with the economic needs of the people in your market. These current prices are consistent with the pricing of our new product line.
The next initiative that we will be implementing is the Isagenix Global Foreign Exchange Policy (FXP).
You might already be aware, the value of your local currency has declined significantly against the U.S. dollar in past two years. These fluctuations in currency inflate the cost of producing our product and commission payments in our international markets. With no predictable relief in sight, this is not a sustainable business model.
After reviewing and consulting with many of our leaders, we have concluded that rather than adopt a change in our compensation plan, affect a price increase at this time or implement other short term measures, we will introduce a foreign exchange policy that will reduce the artificial effects of the significant changes in the value of your local currency against the U.S. dollar.
Here is what you need to know about the global FXP:
- An exchange rate (multiplier) will be established for six (6) months based on the average rates during the prior six (6) months.
- The policy establishes a range (minimum and maximum) based on historic exchange rates. That means if the rates in the prior six (6) months are above the maximum, we will set the multiplier at the maximum. If it falls below the minimum we will set the rate at the minimum value. (See example provided in the Foreign Exchange Policy)
- Once the policy is implemented, commissions will be calculated as outlined in the policy below, using an exchange rate multiplier of $2,857 COP. That means you will receive $2,857 Colombian Pesos for every U.S. dollar you earn during the six (6) months. A cycle $54 USD will equal approximately $154,278 Colombian Pesos.
- This policy will be implemented at the end of January or early February. Once an effective date is determined, advanced notice will be provided for proper planning with your first commission payment under the new policy.
When we developed this policy we wanted to create a level playing field for Associates in all countries in terms of promotions and rankings. Because the compensation plan doesn’t change at all, we will continue to use USD earnings as the basis for our worldwide rankings.
To assist you in understanding and communicating this policy with your teams we’ve included links to the following documents:
- Foreign Exchange Policy
- Frequently Asked Questions
- Leadership Talking Points
We will be distributing similar communications to active members over the next week.
We are very committed to our partnership with our Colombian Associates and their families, and we have recently made a significant investment in product development and reduced pricing. This coupled with the stability that our Foreign Exchange Policy will provide leaves us feeling confident that our business in Colombia will continue to grow and strengthen in 2016.
Thank you for your continued support and leadership around this important issue.
President & Co-Founder
Executive Vice President & Co-Founder