Glossary of terms

Pipex, Pipex Business. Pipex Network and the Company

Pipex's strength, stability and quality. Pipex is rated as one of the top broadband providers in the UK and has won several Best ISP Awards e.g. MacWorld Nomination for Best Mac Friendly ISP 2007 and Voted No1 by uSwitch.com for quality of connection and ease of use (2007).

Customer Products and Services

The communication services provided by Pipex (and any other products or services deemed appropriate by the company) to customers to generate billable revenue.

Broadband

The high-speed internet access service that uses a conventional phone line yet allows access to email and the web at speeds up to 40 times faster than dial-up.

Dial-up

The traditional method to access the internet using a dial-up modem connection on a standard phone line.

CPS

Carrier Pre-Select. The term given to the way in which a customer can access a carrier company like Pipex Business and enjoy the low cost phone calls without the need to dial any special prefix numbers or use any special equipment.

Customer Agreement

The formal Agreement a Customer undertakes when registering for one of Pipex's services. Registration can be very easy using a 'paperless' method either over the internet or phone.

Active Customer

A customer who has been accepted and activated for one of the Pipex services and which, in subsequent months, that customer shows a billed revenue for usage of those services.

IBA

Independent Business Associate. The formal name for each individual who has chosen to register with the Pipex Network business opportunity.

IBM

Independent Business Member. The formal name for each individual who has registered with the Pipex Network business opportunity and chosen to progress to the leadership rank of IBM and therefore attending a training day.

IBA Application and Agreement Form

The form required to be completed by all prospective IBAs which, upon acceptance by the company, allows the new IBA to participate in the Pipex Network for 12 months from date of registration. This form must be signed and returned in order for Pipex Network to pay commissions.

Annual Administration Fee

An optional annual amount paid by the IBA or IBM after 12 months to maintain their status as an IBA or IBM.

Active IBA

An IBA remains 'active' for 12 months from the date of their registration being accepted by the company. Thereafter an 'active' IBA is someone who has maintained their Associate position by ensuring all annual administration fees are paid up-to-date AND they have met the 'Activity Requirement' detailed in the current Pay Plan.

Active IBM

An IBM remains 'active' for 12 months from the date of their initial IBA registration being accepted by the company not from when they became an IBM. Thereafter an 'active' IBM is someone who has maintained their IBM position by ensuring all annual administration fees are paid up-to-date AND they have met the 'Activity Requirement' detailed in the current Pay Plan.

Active Customer Product

A Customer Product is considered to have gone 'active' when the service is live on the customers’ telephone line.

Inactive status

An IBA or IBM who has not maintained their 'Active IBA or Active IBM'.

Personal 3x7 Matrix

The term used to describe the shape of the structure built beneath a new IBA/IBM by their individual sponsoring efforts and those IBAs in their Team. Each IBA has a limiting number of IBAs they can have on that specific level. The Matrix allows an IBA/IBM to only have 3 IBAs either personally sponsored or spilled on their 1st Level; 9 on the second, 27 on the third and so on, and this is built and pays commissions upto 7 eligible generations of IBAs/IBMs, hence the name 3x7 Matrix.

Matching 3x7 Matrix

This is the 3x7 Matrix that develops underneath a personally-sponsored IBA/IBM. This Matching 3x7 Matrix may fall within a sponsoring IBA's/IBMs Personal 3x7 Matrix or may fall outside of it, if the IBAs/IBMs Personal 3x7 Matrix is complete.

Spill

When an IBA/IBM has personally sponsored more than 3 IBAs/IBMs, they then start to 'spill' the 4th and subsequent personally-sponsored IBAs/IBMs in to the lower levels of their Matrix, spilling IBAs/IBMs into the Matrix of other IBAs/IBMs

Eligibility

The term used to define whether an IBA/IBM should be paid a specific Bonus or Commission. Though the IBA/IBM may have earnt a Bonus or Commission, they must have met certain criteria (termed 'eligibility') themselves to allow them to be 'eligible' to receive it (see specifics of the Pay Plan).

Customer Qualified

For an IBA/IBM to be placed in the Matrix and have the opportunity to earn Residual Commission they must register a minimum of 3 customer products within 30 days from initial date of joining Pipex Network. Once achieved they are 'Customer Qualified'

Level

A Level is counted as to the exact place an IBA/IBM is positioned in the Matrix according to when they enter the Matrix by becoming 'Customer Qualified'. Levels are static and do not change from month-to-month.

Eligible Generation

An IBA/IBM in the matrix who has achieved 'matrix-eligibility' for that month is deemed as an 'eligible generation' to which a Matrix-Eligible IBA can potentially earn Residual Commission upto 7 'eligible generations' including all the levels in between (see Dynamic Compression). Eligible Generations are variable and do change month-to-month dependant on which IBAs/IBMs are Matrix-Eligible

Residual Commission

This commission is calculated and paid on a monthly basis (approximately around the 10th of each month) to all qualified IBAs/IBMs and is based on the monthly Customer Products Revenue as defined below and is calculated at 0.75% residual commission on all your Customer Products Revenue (and your Team's Customer Products Revenue) down a certain number of generations determined by your career level.

Matching Residual Commission

In addition to earning 0.75% residual commission on the Customer Products Revenue in your Team, IBM's can earn this again from their personally sponsored IBA's / IBM's Customer Products Revenue. The Matrix will find all the IBA's / IBM's you have personally sponsored from Bronze to Diamond and pay you (as an IBM) 0.75% residual commission down a number of generations determined by YOUR career level entitlement.

Customer Product Eligible Customer Products are found at www.pipex-network.com.

Customer Products Revenue means revenue billed, paid and received by Pipex from Customer Products.

Dynamic Compression

This occurs when an IBA/IBM on a certain Level does not qualify for Residual Commission by not being Matrix-Eligible and so they are not counted as an Eligible Generation, yet that IBA/IBM may have Customers who have generated Customer Product Revenue. This revenue, and subsequently any commission due on that revenue, is rolled up or 'compressed' in to the Eligible Generation above. This means, though an IBA/ IBM can be paid up to 7 Eligible Generations, they could in fact be paid on unlimited Levels of IBAs/IBMs and their Customers.