WHAT HAPPENS WHEN A CONSULTANT IS CANCELED?
When a Consultant is canceled, the Consultant's position on the tree remains the same. However, the downline of the canceled Consultant does move up one level for the purpose of Commission payments only. When this happens, the canceled Consultant's first level is considered to be part of the upline's first level. This compression takes place for purposes of Commission payment only. The canceled Consultant's Personally Sponsored Consultants are never treated as, or considered to be, personally sponsored Consultants of the upline. This means they do not move on the tree to be directly under you or become your Personally Sponsored.
The Commission payment amount can change depending on whether the upline Consultant maintains their Active status and rank. For example:
- If the upline is a Star Consultant, the Commission paid is 5% on the canceled Consultant's level one.
- If the upline is a Director with three active Personally Sponsored Consultants, the Commission paid is 10% on the canceled Consultant's level one.
- If the upline is a Director but does not have three active Personally Sponsored Consultants, the Commission paid on the canceled Consultant's level one reverts back to 5%.
That being said, a Consultant's former Personally Sponsored downline directly affects a Consultant's Commission, so it is definitely in the best interest of the Consultant's business to continue to train downline Consultants and treat them as part of the Consultant's team.