Definition of Terms
The following terms will have the meanings set forth herein when used in Melaleuca’s Statement of Policies, Compensation Plan and/or Independent Marketing Executive Agreement and other official Melaleuca material. This Definition of Terms is included in and forms a part of the Statement of Policies. Active Customer: A Customer who has completed and returned a Customer Membership Agreement and purchases at least P2,400 during the calendar month. Active Marketing Executive: A Marketing Executive whose Personal Production Account has one or more Customers who together purchased a total of at least P2,400 that month. Annual Income Statistics: A summary of income statistics published by Melaleuca setting forth information regarding average, high and low income received by various statuses of Marketing Executives on an annual basis.
Commitment Earned: To meet commitment, a Marketing Executive must create sales to End Consumers other than customers in the Marketing Executive’s Marketing Organization. These sales must be products the consumer actually desires or needs as opposed to enticing consumers to purchase products in order for the Marketing Executive to qualify for a commission. Quality Customer: A Customer who enrolled, submitted a complete paperwork marking “Member” as Customer type, and placed an order at least ₱2,900 in the Customer’s first month of enrollment.
Support Team: The seven Marketing Executives above an individual in a Marketing Organization who have the potential to receive commissions based upon the purchases of that Customer. True PEG (Personal Enrollee Group Volume): The total Organization Volume of a Marketing Executive’s Personal Enrollees in any given month. (Contrary to how PEG Volume is calculated, True PEG counts each Customer’s monthly purchase volume only once, even though that Customer might be under several Personal Enrollees in the Marketing Organization). Volume Status: All advancements in status of Director 2 or above require a minimum Organization Volume. The status corresponding to each required volume in the Compensation Plan is the Volume Status.
promoting, training, motivation, servicing and development of their Independent Melaleuca Businesses. Competing Business Venture: Any business or business opportunity involving the sale, marketing or referral of products or services through direct selling (as defined by the Direct Selling Association), network marketing or other similar business opportunity. Customer: Any person or organization that purchases product or services from Melaleuca for personal use either as a Member or Non-Member. Direct Customer: A Customer who is authorized to purchase products from Melaleuca at Melaleuca’s non- member price pursuant to a Customer Membership Agreement. End Consumer: A person who purchases Melaleuca products solely for the purpose of consuming them and not for resale to someone else or as an attempt to earn any compensation. Enrollee: A Customer or Marketing Executive who has signed and submitted to Melaleuca a Customer Membership Agreement and/or an Independent Marketing Executive Agreement. Enroller: The Marketing Executive who is listed on the Customer Membership Agreement as the Enroller. The Enroller must be the person who introduced the new Customer to Melaleuca and helped him/her become a Customer or who played an active role in the presentation of Melaleuca products or business opportunity to the new Customer. Before being listed as the Enroller, a Marketing Executive must have meaningful contact with the Enrollee in person, over the telephone, or via other live, face-to-face (or vocal) means of communication. Immediate Household: Married couples and persons residing in the same home, and with respect to Marketing Executives and Customers which are entities (e.g., corporations, tax exempt entities, trusts, etc.) rather than individuals, Immediate Household means the shareholders,
owners, directors, officers, trustees, responsible parties, etc. of such entities and persons married to or residing in the same home with the persons who are the shareholders, owners, directors, officers, trustees, responsible parties, etc. of such entities. Independent Melaleuca Business: The Marketing Organization consisting of those Customers and entities that purchase Melaleuca products for which the Marketing Executive is entitled to receive commissions. Marketing Executive: A person or entity that has completed, executed, and delivered to Melaleuca an Independent Marketing Executive Agreement that Melaleuca has accepted; has at least one Personal Enrollee who is an Active Customer in his/her Marketing Organization; and has received his/her first commission. If a Marketing Executive at any point no longer has any Personal Enrollee who is an Active Customer in his/her Marketing Organization, the Marketing Executive ceases to be a Marketing Executive and must requalify to become a Marketing Executive. Marketing Organization: The Customers and Marketing Executives who comprise the group of individuals or entities from which the Marketing Executive is entitled to receive commissions based upon the collective sales volume of the group and the status of certain Marketing Executives within the group pursuant to the Compensation Plan.
Executive’s Marketing Organization. The Monthly Business Reports contain trade secret information that is proprietary to Melaleuca. Official Melaleuca Material: Material in any form that is authorized, published, and disseminated by Melaleuca. This includes, but is not limited to, printed material, audio and visual materials, satellite broadcasts, fax and electronic communications and internet communications. Organization Volume: The total order from products purchased in a Marketing Executive’s Marketing Organization in a calendar month. A maximum of P17,500 per customer will be counted towards Organization Volume. PEG Volume (Personal Enrollee Group Volume): The total Organization Volume of a Marketing Executive’s Personal Enrollees in any given month. Personal Order: The total monthly order personally produced by a Marketing Executive. Personal Director: A Personal Enrollee with the Commission Rate of Director or above. Personal Enrollee: An Enroller’s Enrollee to whom the Enroller has personally introduced Melaleuca and/or has played an active role in the presentation of Melaleuca products or business opportunity. Presenter: The Marketing Executive who is listed on the Customer Membership Agreement as the Presenter. The Presenter must be a person who played a significant role in the presentation of Melaleuca products or business opportunity to the new Customer. The presentation needs to be in person, over the telephone, or via other live, face-to- face (or vocal) means of communication. Product Point: A value assigned to each Melaleuca product upon which commissions and bonuses are calculated.
Quality Enroll: To enroll a Quality Customer.
Recruit or Recruiting: 1) To attempt to enroll, enlist, or solicit an individual or entity to join a Competing Business Venture; or 2) to attempt to promote, influence or encourage an individual or entity to join a Competing Business Venture; or 3) to present, participate in or assist in the presentation of a Competing Business Venture or its products. To constitute recruiting, such efforts or attempts may be performed either directly through personal contact or indirectly through a third party. Statement of Policies: The policies published by Melaleuca, as amended from time to time, which set forth, among other things, the requirements for operating an Independent Melaleuca Business. Status: The highest Commission Rate a Marketing Executive has ever achieved. If a Marketing Executive at any point no longer has any Customers in his/her Marketing Organization, the Marketing Executive becomes a Customer and loses any highest Commission Rate or Status previously achieved until further statuses are achieved. This does not reset advancement bonuses under the Compensation Plan.
Backup Order: A preselected or customized package of Melaleuca
products which is automatically shipped to members if they fail to place an order for at least ₱2,900 as agreed upon in their Customer Membership Agreement. Those who select the Member option in the Customer Membership Agreement preauthorize Melaleuca to send a Backup Order and it will be charged to their credit card. Commission Rate: The status at which a Marketing Executive is paid in any month because the Marketing Executive has met all the qualifications to be paid at that status. Compensation Plan: The plan as offered, as amended, and interpreted by Melaleuca that compensates Marketing Executives for the continued building,
Melaleuca: Melaleuca of the Philippines, Inc.
Member: A Customer who has entered into a Customer Membership Agreement, placed an order for at least P2,900, and paid an annual membership fee. In addition to many other benefits, Members receive a 30% to 50% discount on Melaleuca products Monthly Business Reports: Reports produced by Melaleuca on a monthly basis and provided to Marketing Executives that contain information relating to the activity of the Marketing
44 WELCOME TO MELALEUCA
SIMPLE STEPS TO SUCCESS 45
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