<ul><li> Most companies offer business plans which are based on what they ant you to do, rather than what people can actually do.
Market America has successfully differentiated itself. How do you separate the bad from the good? What makes one better than the others? There are 4 ingredients that make Market America the most powerful business opportunity available today:</li></ul>1. The right people:<br /><ul><li> Market America operates from a strategic plan with specific goals and objectives enabling the company to measure, monitor, adjust, and control its progress, timing, and success.</li></ul>2. The right products:<br /><ul><li> Market America without the burden of manufacturing, can stay focused on only introducing market-driven products and continue to move with the marketplace. Market America identifies the highest quality market-driven products customers want. The products are tested and researched for reliability, market appeal, and competitive pricing, thus placing the independent distributor and UnFrancise owner in a position for short-term and long-term profitability and stability.</li></ul>3. The right system:<br /><ul><li> Market America does not rely solely on one marketing strategy.</li></ul>4. The right time<br />
<ul><li> Network marketing and multi-level marketing industries are vigorously monitored by Federal Trade Commission (FTC), Securities and Exchange Commission (SEC), US Postal Service, State Attorneys General, and State Corporation and Security Commissioners, due to its past spurious experiences.
The 2 areas that are being watched most:</li></ul>a. methods by which a company attracts new distributors<br />b. the basis on which incentives are rewarded<br /><ul><li> Demanding payment from an individual in exchange for the right to sell products and basing bonuses or commissions on the successful recruitment of others into the network are illegal.
Market America has meticulously observed even the most stringent of those regulatory and has continuously maintained a conservative cooperation and compliance with regulatory agency interpretations and directives.
The Market America Marketing Plan has been designed:</li></ul>a. to meet regulatory requirements<br />b. the Management Performance Compensation Plan (PPCP) offer distributors the potential for significant financial rewards based on product sales<br />c. the plan has no inherent limitation, so each independent distributor has an equal opportunity for success if the requisite hard work is put into the Marketing Plan.<br />
d. developed to avoid negative incentives and/or pitfalls<br />e. to eliminate the potential for abuse or misrepresentation<br />f. economic incentive is based entirely on products reaching end users – ma requires each distributor to produce 200 personal BV and a minimum of 2 customer sales totaling $200 before becoming qualified distributor eligible to receive compensation credit for the group BV<br /><ul><li> One of the biggest potential problems in the network marketing industry is misrepresentation by a distributor in business presentations. Distributors are contractually obligated to understand the marketing plan and present it properly. Executive coordinators are contractually obligated to train, supervise, and monitor their organizations and guard against misrepresentation
Market America encourages distributors to use only company-developed marketing tools in group settings and prohibits unauthorized income claims or use of unauthorized literature or marketing tools. All other materials must be sent to the company for prior approval.
Market America has established a legal department to oversee distributor ethics and policy enforcement to ensure that the company ‘s operational standards remain intact and that each distributor honors all applicable federal, state, and local laws.
The strength and future of Market America depends on innovative products and marketing, but the company equally relies on distributors who adhere to its policies and procedures </li></li></ul><li>Chapter Eight: Management Performance Compensation Plan (MPCP)<br />
8.1 Organizational Structure<br />Each business development center (BDC) has 2 sides.<br /> a) BDC definition: A BDC is an operational establishment set up within Market America’s computerized organization tracking system. Each organization is based upon the assignment of the independent distributor’s identification number and the BDC’s 3-digit extension number (ex: 001, 002, 003, 010, etc.)<br /> b) Additional BDC: Additional BDCs are established either on the left or right side of a previously established BDC.<br />
8.2 Initial Participation Requirement<br />To participate in Market America’s MPCP an individual:<br /> a) must complete the Independent Distributor Application and Agreement (IDAA) and<br /> b) submit it by mail (faxes are unacceptable) for entry into the corporate computer database. One can also use the on-line sign-up process. On-line IDAA.<br />Only 1 application should submitted – either mail or on-line form, but not both.<br />Sales Representative: If no subscription fee is submitted with the application, the individual will enter Market America as sales representative and cannot participate in the MPCP for the purposes of earning commissions and management bonuses. Sales representatives may begin participating in the MPCP at a later time, if they submit the subscription fee on an order or with a new application. Must indicate the appropriate box under “Entry Classification” on the application.<br />Distributor: box “Distributor” under “Entry Classification” must be checked and subscription fee must be submitted in order to participate in the MPCP and earn commissions and management bonuses.<br />
8.3 Placement Of Business Development Centers<br />Business development centers of new distributors placed at the discretion of the sponsoring distributor. See Placement Information section in the on-line IDAA.<br />New Business Development Centers: New BDCs may be established only in available locations, not previously occupied or linked.<br />1) Single Business Development Center Entry: Upgrades to Supervisory Entry (3 BDCs) shall not be permitted for either Distributors or Sales Representatives. <br />1.1) If Sales Representatives change their status to Distributor, they may not create a Supervisory Entry.<br />1.2) Supervisory Entry Level will only be accepted when the initial Application is submitted.<br />1.3) Distributors and Sales Representatives may establish a single BDC entry one of the following ways:<br />a) If the initial mailed application does not include subscription fee, then the Sales Rep will only be permitted to establish one BDC, regardless of the BV amount of any initial order.<br />b) If no product order is received with the initial mailed application, then a Distributor will only be permitted to establish one BDC<br />c) If the initial product order received with the initial mailed application does not meet the requirements for a Supervisory Entry, then a Distributor will only be permitted to establish one BDC.<br />
c) If the initial product order received with the initial mailed application does not meet the requirements for a Supervisory Entry, then a Distributor will only be permitted to establish one BDC.<br />d) If the initial application itself does not meet the requirements for a Supervisory Entry, then a Distributor will only be permitted to establish one BDC.<br />e) If the sponsoring distributor fails to indicate “Supervisory Entry” during the new distributor’s online sign-up process, the new Distributor or Sales Rep will only be permitted to establish one BDC.<br />2) Supervisory Entry (3 BDCs): Distributors (individuals who have submitted their subscription fee) may establish a Supervisory Entry one of 2 ways:<br />a) Indicate “Supervisory Entry” on the application, submit one initial product order greater than or equal to 300 BV along with the application. The BV for this initial order must be assigned as follows: 200 BV in extension 001, a minimum of 50 BV in extension 002 and a minimum of 50 BV in extension 003. This first order must be submitted with the completed initial mailed application and shipped to one address. Multiple orders will not be added together to satisfy the minimum 300 BV requirement. An order of less than 300 BV will be assigned to the BDC-001 and only one BDC shall be awarded.<br /> b) Online Application and Agreement: Sponsor must check in “Supervisory Entry” box. A minimum 300 BV product order must be placed to legitimize the supervisory entry selection.<br />
B) Incorrectly Placed: Attempting to place new distributors in positions already occupied in the downline, or failure to designate placement information on the IDAA for new distributor will result in “unlinked” BDC. Any BDC linked to an “unlinked” BDC will also be “unlinked”.<br />1) Unlinked BDC is indicated by the absence of “L” or “R” in the “L” column of the Distributor Network Report on the UnFranchise® Management System.<br />2) Use form Placement or Linkage Correction to correct linkage of BDC and fax or mail to Data Processing as soon as possible. This form may only be signed by the Sponsor or the Unlinked Distributor.<br />8.4 Initial Qualification Requirement<br />Qualifying a BDC will permit accrual of group business volume generated by distributor and sale rep in the respective BDC’s downline. Accrued group business volume will be applied towards earning commissions and management bonuses for the qualified BDC.<br />Personal Business Volume Created: Both distributors and sale rep create personal business volume by ordering products at distributor cost for retail sale to the end consumer and/or personal consumption.<br />Qualification: A distributor’s BDCs shall be considered qualified in Market America’s MPCP upon meeting 3 criteria:<br />
1) accumulating 200 personal business volume credits for product orders assigned to that respective BDC.<br />2) being linked properly<br />3) paying subscription fee<br />C) Qualification Date (Q-Date): AT the time a distributor’s initial BDC becomes qualified, the distributor will be assigned a qualification date. The Q-Date is the most critical element in exercising the distributor’s option to accrue group business volume from month to month through the entire MPCP compensation cycle.<br />1) A distributor’s Q-Date is the Friday of the week in which the distributor’s initial BDC accumulated 200 personal business volume credit for product orders assigned to that center. <br />2) A sale rep who has accumulated 200 personal business volume in a BDC and has elected to change his/her status to distributor will receive a Q-date of the Friday of the week in which the subscription fee is received by Market America and entered into the corporate database.<br />3) A distributor’s Q-date never changes, unless the distributor does not submit the annual renewal fee.<br />4) A distributor’s Q-date may be obtained from Market America’s Responsive Voice Information Network (MARVIN), the UnFranchise® Management System, or the bottom of shipping invoices. The Q-date will not show up in the computer database until the third week after the Friday of the week in which the distributor met all three criteria for qualification.<br />
D) Q-Date Periods Defined: <br />1) Weekly Commission Cycle: All commission weekly pay cycles begin Saturday and end on Friday.<br />2) Monthly Q-date Period:<br />a) If the original Q-date falls on a Friday in a given month, then that monthly Q- date period ends on that Friday.<br />b) If the original Q-date falls any day other than Friday in a given month, then that monthly Q-date period ends on the Friday immediately following that day. Ex: Original Q-Date is Jan 16 2009, then the monthly Q-Date for May 2009 is May 22, 2009.<br />c) If the original Q-date falls on the 29th, 30th, or 31st day of the month and the current month does not contain those dates (ex: February, April, June, September, or November), then the end of that monthly Q-date period is determined by the last day of that month. Ex: Original Q-Date is Jan 30, 2009, then monthly Q-Date for Feb 2009 is Feb 28, 2009. If the last day of the month falls exactly on a Friday in a given month, then that monthly Q-date period ends on that Friday. <br />3) Quarter (3-Q-Date period):<br /> Market America quarterly periods are based on distributors’ initial Q-dates or sales reps’ start dates. A quarter may also be referred to as a 3-Q-date period. Ex: initial Q-date is Jan 9, 2009, then the first quarter ends on April 10, 2009. The second quarter would begin on April 11, 2009 and ends on July 10, 2009.<br />
E) Unlinked Business Development Center:<br /> All assigned business volume to unlinked BDCs shall also be unlinked. The qualifying volume for a BDC will not result in this center receiving a Q-date until linkage has been corrected, because distributors cannot accrue any group business volume until they have met all three criteria for qualification.<br />8.5 Minimum Activity Requirements<br />The following minimum activity requirements shall apply for the respective status and/or pin levels to be considered active. Distributors will be considered inactive and have accumulated PBV purged (erased to 0) and any accrued GBV flushed (erased to 0), if they do not meet the following minimum activity requirements.<br />B) Qualified Distributors: must place minimum product orders totaling 150 PBV assigned to any of their BDCs every 3-Q-date period following their initial 3-Q-date period. This will substantiate sufficient product purchased for meeting the $200 retail sales requirement per 3-Q-date period.<br />1) A distributor shall complete and submit a distributor sales report (form 1000) accompanied by a minimum of 2 retail sales receipts totaling a minimum of $200 every 3-Q-date period for BDC-001 to Market America to meet the retail sales requirement.<br />
2) A form 1000 accompanied by a minimum of 2 retail receipts totaling $200 in retail sales shall be submitted one time only for all other BDCs (i.e. 002, 003, 004 etc.), as long as the distributor never purges.<br />Submitted receipts must contain the date of sale, the customer’s first and last name, and either a complete address or complete phone number for acceptance<br />Sales receipts from products sold in any country/territory in which Market America is not opened for business are not considered valid receipts.<br />3) The company will periodically and/or randomly audit retail receipts for authenticity. Bogus or fabricated receipts are considered invalid and will result in:<br />The immediate removal of the form 1000 from the computer system<br />The immediate flushing of GBV in all personal BDCs<br />The eventual purging of PBV in all personal BDCs at the end of the distributor’s quarter.<br />Possible sanctions and corrective action, especially in cases of repeated use of bogus or fabricated receipts.<br />4) Failure to meet the 3-Q-date period requirements – 150 PBV ordered and form 1000 submitted – will cause accrued GBV totals to be flushed and accumulated PBV to be purged from the distributor’s BDC, thereby purging the same BV from qualified upline distributors’ accrued GBV totals.<br />5) If a qualified BDC purges for any reason, any BDC on which the distributor wishes to earn future commissions must be requalified with a 200 PBV product order or accumulating 200 PVB in the respective BDC. The original Q-date received shall stay<br />
in effect, except for purges due to non-renewal.<br />6) If a distributor purges due to not meeting one or both of the quarterly minimum activity requirements (150 PBV and form 1000), valid form 1000 must be resubmitted for each BDC in order to be eligible to earn commissions for that respective BDC.<br />7) A distributor shall complete and submit an annual renewal form (form 1052). Failure to submit the annual renewal form will result in a distributor’s status being changed to sales rep, their initial Q-date being erased from the computer data base, accrued GBV being flushed, and accumulated PBV being purged.<br />8) Distributors who submit form 1052 without a renewal fee will result in their status being changed to sales rep and their initial Q-date being erased from the computer data base. Their accrued GBV will be flushed; however, accumulated PBV will remain and not be subtracted from qualified distributors upline. Once a distributor has been reduced to sales rep, then the distributor must submit a late renewal application and agreement form along with a subscription fee to regain distributor status. Distributors who have been reduced to sales rep status due to non-renewal will received a new Q-date only after they meet all requirements for requalification.<br />
Glossary & Abbreviation:<br />BDC – Business Development Center<br />IDAA – Independent Distributor Application and Agreement<br />Form 1052 – Annual Renewal Form. Submit once year before Q-date<br />Form 1000 – Distributor Sale Report. Submit every quarter accompanied with 2 sale receipts totaling $200<br />