What is?

A sales channel incentive structure based on

Extensive goal-setting incentive research

Patented GoalQuest® program results*

Pay-for-growth performance design

Proprietary program database & guidelines

* GoalQuest is the only incentive design that has ever been awarded a US patent

Structure

Participants have two ways to earn1 Base program

Earn per sales unit/dollar amount starting at baseline or any other designated point

2 Challengepoint goal Select and achieve an incremental goal

Base program earnings are not ‘at risk’

Challengepoint goal earnings are ‘at risk’– Awards are only paid if you reach your goal

Base Earnings Structure

Define a unit of measure and payout ratio

• 10 AwardperQs per $ 1,000 in sales• 20 AwardperQs per unit sold• 50 AwardperQs per 1% percent increase

Define an earnings starting point • Personal baseline• “X” dollars or units • Percent of baseline• Zero

Base Earnings Structure

Participants earn AwardperQs at the established ratio once they reach the earnings starting point– If they reach their earnings starting point

any AwardperQs they earn in the base program are not “at risk”

Base program earnings continue through the end of the program period– Acts as an on-going incentive even after

their goal is reached

Challengepoint Goal Structure • Participants select a personal goal– Rewards escalate rapidly to encourage

selecting the highest goal achievable

• All-or-nothing goal achievement• Personal baseline-related goals• Audience segmentation• Focused behavior

– Short program duration– Focused program target

• Frequent program communications

Baseline+ 10%

20 AwardperQs

Baseline+ 20%

60 AwardperQs

Baseline+ 30%

120 AwardperQs

as a ProductComplete end-to-end product:– Program-specific website– Built-in communications plan– Progress reporting for authorized managers

Participant Home page Challengepoint flash communication

Program Financials

• Setup, website hosting, communications and reporting are provided at BI’s expense– Standard website reports

• Program sponsor pays for awards earned by participants who achieve their goal

• The Challengepoint database allows us to estimate results during planning and measure them precisely after the program

Included and Billable ItemsIncluded items:

– Program design– Website setup– Website hosting– Award brochures (if used)– Standard communications– Project management

Items billed to the sponsor:– AwardperQs earned by participants– Actual postage for mailing the brochures if used– Any custom reports or communications

Implementation StepsDesign phase

– Initial discovery conversation to determine• Audience, measurement metric, management participation• Revenue and gross margin • Baseline (run rate) data files

– Review design model(s) and estimates• Alter and re-model as needed

12 working days prior to launch we need• Approval of the rules document for the website• The company or program logo for the website• Participant load file with baselines and hierarchy

1-2 days prior to launch • BI website testing• Walk-thru website

Launch day• Announcement emails sent, goal selection begins

Communications Calendar

Month 1 Month 2 Month 3 Month 4

Announcement Kit Mailed to participants

Welcome Email & Select Your Goal Reminder Email

Email 2 “Select Your Goal” Qmericals during the Goal Selection Phase (flash)

“Progress to Goal” Reports Emailed to Participants

Email Qmercial (flash)

Final Email Sent Announcing if Goal was Achieved