of the Cancelled Marketing Executive. However, such credit cannot apply at the same time with respect to two Personal Enrollees. Therefore, the credit will expire in the first month in which the Enroller of the Cancelled Marketing Executive has inherited a potential Personal Enrollee who has or achieves Executive Director Status or the Status of the Cancelled Marketing Executive at the time of cancellation. (d) To qualify for any roll up or inheritance, the Marketing Executive who will be receiving the roll up or who will be inheriting Personal Enrollees must have been in compliance with Melaleuca’s Statement of Policies for the preceding 12 months and must not have been involved in any illegal, fraudulent, deceptive or unethical conduct. Melaleuca will fully investigate the cancellation to determine, at Melaleuca’s sole discretion, full compliance with Melaleuca’s policies. 40. Use of the Internet Social Media for Training and Information Marketing Executives may use the internet, including social media sites, for the purpose of providing training on business-building activities and business-related information to other Marketing Executives, which content cannot be available to the general public. Marketing Executives may use invitation-only social media groups (including any private, invitation- only Facebook event or blog) for this purpose. The training and information provided should be conservative in content and professional, consistent with Melaleuca’s culture and mission. The following provisions are designed to provide guidance and ensure these principles are upheld. In addition to these provisions, Marketing Executives must comply with the rules set out separately in Building Your Business Online: Guidelines for Using the internet, Social Media, and Electronic Communications. (a) Websites and private, invitation-only social media groups used for training and information must be 100% password protected (meaning that no portion of the content can be accessed without a password) to the extent feasible and, where not feasible, access must be otherwise restricted to invitees only. (b) Online training and information content may: (i) contain Melaleuca trademarked words (including the name Melaleuca), phrases or product names;
their achieving these requirements, but in no event sooner than the month following the Cancelled Marketing Executive’s second month of inactivity: (1) advances to a new Status of Director 3 or greater; (2) advances to a new Status which corresponds at least to the Cancelled Marketing Executive’s Organization Volume in the first month of inactivity; and (3) grows his/her Marketing Organization by 25 Active Customers (excluding roll ups and moves) since the Cancelled Marketing Executive’s first month of inactivity. If two or more First Generation Marketing Executives qualify for the roll-up in the same month, the tie will be broken by application of the criteria set forth in subparagraph (i) above. (iii) If the Cancelled Marketing Executive has 100 or more Active Customers in his/ her first month of inactivity, no roll up shall occur. (b) The Enroller of a Cancelled Marketing Executive will inherit the Cancelled Marketing Executive’s Personal Enrollees as follows: (i) For each Personal Enrollee who is a Customer (with no Marketing Organization) or who had the Commission Rate of a Product Advocate and had less than P200,000 Organization Volume in the Cancelled Marketing Executive’s first month of inactivity the Enroller will automatically inherit the Customer as a Personal Enrollee in the Cancelled Marketing Executive’s third month of inactivity. (ii) For each Personal Enrollee who had the Commission Rate of a Product Advocate 2 or above and had less than P200,000 Organization Volume in the Cancelled Marketing Executive’s first month of inactivity, the Enroller will inherit such Personal Enrollee in the month following the month the Personal Enrollee has advanced one status above the Commission Rate the Personal Enrollee had in the Cancelled Marketing Executive’s first month of inactivity. (iii) For each Personal Enrollee who had Organization Volume of P200,000 or more in the Cancelled Marketing Executive’s first month of inactivity, the Enroller will inherit such Personal Enrollee in the month following the month the Personal Enrollee has advanced one status above the Volume Status that the Personal Enrollee had in the Cancelled Marketing Executive’s first month of inactivity. (iv) If the Personal Enrollee had Organization Volume of P4,000,000 or more or a Status of Executive Director
shall sign and submit an Independent Marketing Executive Agreement. (b) Former Marketing Executives with the Status of Product Advocate 3 or below and Customers may reenroll as new Customers and Marketing Executives with their original Enroller and their original Marketing Executive at any time. Marketing Executives with the status of Product Advocate 3 or below and Customers who have not been enrolled with Melaleuca for at least the previous six consecutive months may reenroll as new Customers and Marketing Executives with the Enroller and Marketing Executive of their choice. (c) Former Marketing Executives with the Status of Director and above: (i) may reenroll as a new Customer and Marketing Executive with their original Enroller and their original Marketing Executive at any time. (ii) must be inactive for one year before they can reenroll with an Enroller of their choice. (iii) may reenroll with an Enroller of his/ her choice after 6 consecutive months of inactivity if he/she has not been a Commission Rate Director or above during the 12 months prior to the first month of inactivity. (iv) 2 Leadership Points will be awarded to the Enroller for reenrolled Customers who have been inactive less than 3 years. (d) If a former Customer or Marketing Executive desires to reenroll in a new Marketing Organization in which any Marketing Executive in the new Support Team was also in his/her previous Support Team, such former Customer or Marketing Executive may reenroll no earlier than 12 months following the date that such Support Team Marketing Executive became inactive in his/her previous Marketing Organization. Any individual involved in the violation of this policy will be subject to corrective measures pursuant to Policy 43, including fines and/or cancellation of his/her Independent Marketing Executive Agreement. (e) Former Customers or Marketing Executives who reenroll pursuant to this Policy 37 shall be permanently disqualified to roll up. 38. Marketing Executive Commission Rate and Status A Marketing Executive can lose his/her Commission Rate and therefore the right to receive corresponding commissions and bonuses if he/she no longer qualifies for the commissions or bonuses pertaining to such status. If a Marketing Executive at any point no longer has
or higher in the Cancelled Marketing Executive’s first month of inactivity, the Enroller cannot inherit such Personal Enrollee. However, in the case of termination, Marketing Executives who had Organization Volume of P4,000,000 or more or who had a Status of Executive Director or above at the time of their Enroller’s termination may be inherited when all of the following occur: (1) The potential Enroller helps the potential Personal Enrollee advance to one Status above the Volume Status that the potential Personal Enrollee had in the terminated Marketing Executive’s first month of inactivity; and (2) The potential Enroller helps another Personal Enrollee advance to Executive Director for the first time after the Cancelled Marketing Executive’s first month of inactivity. The advancing Personal Enrollee must be an actual Personal Enrollee of the potential Enroller, not an inherited Personal Enrollee. (3) All other inheritance rules apply. (v) No Enroller can inherit a Personal Enrollee whose Status is higher than his/her own, unless neither has a Status higher than Director 2. (vi) When a Marketing Executive has his/her Independent Marketing Executive Agreement cancelled or terminated by Melaleuca, or went inactive while under investigation for a policy violation, in the month that the cancellation/ termination occurs, target statuses for the Personal Enrollees will be set and inheritances will occur based in accordance with all other existing policies. (c) If the Cancelled Marketing Executive had the Commission Rate of Senior Director or above in his/her last month of activity and (i) was terminated by Melaleuca for a policy violation or (ii) voluntarily cancelled his/her Independent Marketing Executive Agreement or went inactive while under investigation for a policy violation, the Enroller of such Cancelled Marketing Executive will continue to receive credit for having a Personal Enrollee with the same Status (Senior, Executive, National or Corporate Director) to count towards the Enroller’s Status for twelve consecutive months from the month following the cancellation, voluntary or not, of the Cancelled Marketing Executive. For each month after the initial twelve months, the Enroller of such Cancelled Marketing Executive will receive credit for having a Personal Enrollee with the Status (Senior, Executive, National or Corporate Director) attributable pursuant to the Compensation Plan to the Organization Volume of the Marketing Organization
Melaleuca (including but not limited to offering to have others pay, directly or indirectly, for the product orders of another individual), or by providing any form of financial incentive to a Customer, potential Customer, Marketing Executive, or potential Marketing Executive not in accordance with the Melaleuca Compensation Plan. (4) Marketing Executives participating in these activities shall be deemed in breach of his/her Independent Marking Executive Agreement and will be subject to corrective measures in accordance to Policy 43, up to and including cancellation of his/her Independent Marketing Executive Agreement. 35. Policy Disclosure Requirement Prior to enrolling a prospective Marketing Executive, Marketing Executives shall provide to the prospective Marketing Executive a current copy of Melaleuca’s Statement of Policies. 36. Voluntary Cancellation Due to Inactivity It is the Marketing Executive’s responsibility to lead his/her Marketing Organization with the proper example in production of Personal Product Points. Without this proper example and leadership, the Marketing Executive will lose his/her right to receive commissions and bonuses from his/her Marketing Organization. Therefore, a Marketing Executive who has produced less than ₱2,400 products will not receive commissions. The failure of a Marketing Executive who has produced less than ₱2,400 worth of products will not receive commissions. The failure of a Marketing Executive to produce at least ₱2,400 worth of products for two consecutive months constitutes the Marketing Executive’s voluntary cancellation. A Marketing Executive who has voluntarily cancelled will lose all of his/her Personal Enrollees and his/her Marketing Organization and shall cease to be a Marketing Executive. The cancellation of the Independent Marketing Executive Agreement shall become effective on the day following the last day of the second month of inactivity. 37. Reactivation and Reenrollment Requirements (a) When a Marketing Executive whose Independent Marketing Executive Agreement has been cancelled due to two months of inactivity under Policy 36 becomes reactivated, he/she will reenter his/her previous Marketing Organization in the first available position below his/ her original Marketing Executive and
any Customers in his/her Marketing Organization, the Marketing Executive ceases to be a Marketing Executive, forfeits any previously earned status that may have been achieved and must then requalify to become a Marketing Executive and achieve a new status. 39. Roll-Up Guidelines Melaleuca considers roll ups to be an important aspect of operating a healthy Melaleuca business. However, receiving a roll up is not a right for a Marketing Executive under any circumstances. Melaleuca in its sole discretion has the right to stop a roll up or otherwise prevent any roll up from occurring. The following are guidelines only and not considered policy and shall not be binding on Melaleuca. (a) When a vacancy occurs in a Marketing Organization for any reason including the inactivity or termination of a Customer or Marketing Executive (a “Cancelled Marketing Executive”), each Marketing Executive in the first generation below the Cancelled Marketing Executive (a “First Generation Marketing Executive”) may have the opportunity to qualify to roll up into the position of the Cancelled Marketing Executive subject to the following conditions: (i) If the Cancelled Marketing Executive’s Marketing Organization had fewer than 10 Active Customers in the first month of inactivity, the First Generation Marketing Executive with the highest Commission Rate in the Cancelled Marketing Executive’s second month of inactivity will be eligible to roll up to the position of the Cancelled Marketing Executive in the month following the Cancelled Marketing Executive’s second month of inactivity. In the event of a tie, the following criteria will be applied, in the order listed, to the First Generation Marketing Executives involved in the tie until the tie is broken: (1) who has the largest number of personally enrolled Directors; (2) who has the largest number of personally enrolled Members; (3) whose Marketing Organization has the largest number of Members; (4) whose Marketing Organization has the highest average Product Points order per Customer; (5) who has the highest Personal Product Points; and (6) who enrolled first. (ii) If the Cancelled Marketing Executive’s Marketing Organization had at least 10 but fewer than 100 Active Customers in the first month of inactivity, the First Generation Marketing Executive who first does the following will be eligible to roll up to the position of the Cancelled Marketing Executive the month following
(ii) contain truthful and accurate Melaleuca product and business
40 WELCOME TO MELALEUCA
SIMPLE STEPS TO SUCCESS 41
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