Chapter 12: Marketing Plan and Promotional Activities

 

SEC. 1                MPCP Management/Supervisory Responsibilities

Distributors are paid commissions for managing, training, supplying, supporting and motivating their organizations to produce retail sales volume. There must be an ongoing sales and supervisory function. A Distributor does not earn commission under the MPCP solely on production. Distributors are paid for managing their organizations producing retail sales. Distributors must be able to provide documentation demonstrating execution of these functions upon request by Market America. The following guidelines apply to a Distributor’s responsibilities under the MPCP. Failure to perform the management responsibilities described below is grounds for corrective action by the company, including, but not limited to, forfeiture or reversal of commission checks, required additional training, and in the case of chronic or severe failure to perform the duties, termination of the Distributor’s contract.

Distributor: Distributors have the ultimate responsibility for ensuring their desired level of success. They have the responsibility for being knowledgeable about the Market America Career Manual contents (i.e., policies, procedures, rules and regulations).

Sponsor: Sponsors have the specific responsibility to comply with all provisions relating to sponsorship described in the Terms and Conditions of the Independent Distributor Application and Agreement, as well as other applicable policies and procedures.

Coordinator: In addition to those responsibilities specified in the “Sponsor” section above, Coordinators must train and work with all Distributors in their organization down to the next active Coordinator. Additionally, they must supervise the downline Coordinators and make sure these Coordinators are supporting and training all Distributors in their organizations. A Coordinator is responsible for presenting the Marketing Plan for new Distributors.

Executive Coordinator: In addition to those responsibilities specified in “Sponsor” above, Executive Coordinators are contractually bound (i.e., Executive Coordinator Acknowledgment and Agreement) to enforce the policies, procedures, buyback guarantee, return merchandise policy, and rules and regulations to the level of the next Executive Coordinator in their downline organization. If the next downline Executive Coordinator is not fulfilling these responsibilities, the upline Executive Coordinator must notify the upline leadership, and must fulfill the responsibilities of the non-compliant downline Executive Coordinator until another downline Executive Coordinator is developed in that organization who assumes/fulfills those responsibilities for the organization.

Certified Executive Coordinator: In addition to those responsibilities specified in “Sponsor” and “Executive Coordinator” above, Certified Executive Coordinators must provide Basic 5 Trainings for all Distributors in their organization down to the next Certified Executive Coordinator. Only Certified Executive Coordinators (i.e., Executive Coordinators who have passed the Executive Coordinator Certification Training) may conduct New Distributor Trainings, and Basic 5 Trainings.

Professional Coordinators and Higher Pin Levels: In addition to those responsibilities specified above, these managers must ensure that all Distributors in their downline organizations are being properly supported and trained through communication and ongoing supervisory functions to downline leadership.

Advisory Council Members: Advisory Council Members shall organize meetings in new geographic areas of growth where they have downline Distributors; resolve disputes between lines of sponsorship; work with other Advisory Council members to provide training on a national basis, implement the National Meeting, Training and Seminar System within their downline, enforce the policies, procedures, rules and regulations in all lines of sponsorship through all means provided by the Market America Career Manual.

SEC. 2                Recruiting

Distributors are compensated only for sales resulting from referrals from their organizations within their downline according to company policy, procedures, rules and regulations, and for their management and supervisory role for their downline organizations. A Distributor is not compensated for sponsoring/recruiting new Distributors. Distributors residing in the European Union must take note that under the UK Fair Trade Act and Regulations, it is illegal for a Distributor to persuade anyone to make a payment by promising benefits from merely getting others to join Market America.

SEC. 3                Retail Sales Requirement

In order to consummate acceptance as an active and qualified Distributor, the Distributor must generate a minimum of two sales totaling USD$200.00 and submit to Market America a Form 1000 accompanied by proof of such sales substantiating USD$200.00 in referral sales to end consumers within a Three-Q-Date period of qualifying a BDC.

SEC. 4                Personal Consumption of Products

Market America’s Management Performance Compensation Plan is based upon sales resulting from referrals to the end consumer. The company recognizes that Distributors may wish to purchase products in reasonable amounts for their own personal consumption and/or use.

SEC. 5                Sponsorship Rights and Obligations

All Distributors have the right to sponsor new Distributors into their downline organization provided they generate USD$200.00 in sales and submit documentation to the company within 30 days of sponsorship.

(A)     New Distributors: Each new Distributor has the ultimate right to choose his/her own sponsor.

(B)     Sponsorship Conflicts: If two Distributors claim to be the sponsor of the new Distributor, the company may, at its discretion, regard the first executed and received Application and Agreement as controlling. The company also reserves the right to review each situation and adjust sponsorship rights accordingly.

(1)     As a general rule, it is good practice to regard the first Distributor that meaningfully works with a prospective Distributor as having first claim to sponsorship. Basic tenets of common sense and consideration should govern.

(2)     Distributors who sponsor other Distributors must fulfill the obligation of a bona fide supervisory, distributing and selling function in the sale and distribution of products to the end consumer, and in the training of those Distributors sponsored. Distributors must actively pursue ongoing contact, communication and management activities with their organization. Failure to fulfill this obligation may result in loss of sponsorship rights and/or termination at the company’s sole discretion.

(C)     Lack of Sponsorship: If a Distributor does not have a sponsor entered into the computer database because of same household, failure to enter a sponsor on the original application, etc., and that Distributor wants to have a sponsor entered into the computer database, he/she must submit a letter of request, attention of the Compliance Department, explaining the situation. The letter must be signed by both the Distributor and the proposed sponsor. Distributors should allow the Compliance Department at least two weeks to notify them if sponsorship was approved.

SEC. 6                Unethical Activity

In the conduct of their business, Distributors shall safeguard and promote the reputation of the products of the company and shall refrain from all conduct which might be harmful to the reputation of the company. Distributors understand that Market America makes no representation that the products are in accordance with the law of any country, except the United States and the United Kingdom.

(A)     Products: The marketing of such products shall be consistent with the public interest, and avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices.

(B)     Advertisements: Independent Distributors shall not advertise company products and/or its Marketing Plan except as specifically approved by the company.

(C)     Representation: Independent Distributors agree to make no false or fraudulent representation about the company, the products, the Management Performance Compensation Plan, or income potentials.

(D)     Compliance: Failure to comply with this obligation may result in termination and possible legal action.

SEC. 7                Income Claims

Distributors may only use income claims published by Market America. No unauthorized claims are permitted for recruiting or any other purpose. Use of unauthorized income claims is grounds for initiation of Corrective Action Procedures by the company. Unauthorized income claims are not permissible even if Market America’s name is not used in the advertisement or claim. Distributors residing in the European Union must take not the that following warning must be added to any and all income claims: “Do not be misled by claims that high income is easily achieved.”

SEC. 8                Presentation of Marketing Plan

(A)     Speakers’ Bureau Members (Category 1 or Category 2): Speakers’ Bureau Members may present the Management Performance Compensation Plan segment at an UnFranchise® Business Presentation.

(B)     Certified Executive Coordinators: Certified Executive Coordinators may present the Management Performance Compensation Plan in settings where no fee is charged, such as a Home Business Presentation.

(C)     Distributors: Distributors may hold “one-to-one” or closed presentations but must follow the format provided by the company in official company literature and audio/video materials.

(D)     Misrepresentation: Any misrepresentation of the Marketing Plan or Management Performance Compensation Plan will be grounds for termination and possible legal action.

SEC. 9                Governmental Endorsements

Federal and state regulatory agencies as a practice do not approve nor endorse direct sales programs or any other type of business activity. Therefore, Distributors shall not represent or imply, directly or indirectly, that Market America and its programs have been “approved” or “endorsed” by any governmental agency.

SEC. 10              Press Inquiries

Any inquiries by any type of media (television, radio, print, etc.) are to be referred to the company’s Public Relations Department immediately. This policy is to ensure accuracy and consistent public image.

 

Last Modified :09/24/2014 9:15:18 AM EDT