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FREQUENTLY ASKED QUESTIONS
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How will the inherited business be treated by the Melaleuca Compensation Plan?
The Melaleuca Compensation Plan is designed to reward Marketing Executives for their consistent efforts in referring customers and demonstrating leadership in accordance with Melaleuca’s Mission Statement. All compensation is based on the sale of products to satisfy genuine consumer demand. Consistent with Policy 23, the inherited business must provide ongoing supervisory and leadership functions for their organization, even after inheritance. A business that is inherited will be based on the organization and Compensation Plan that exist at the time of inheritance and be subject to any changes in the Compensation Plan after that time. Previously “grandfathered” compensation rules, credits, or exemptions are not inheritable and will not continue with the business. As with any Melaleuca business, hard work and commitment are required to be successful. Success in inherited businesses will also require ongoing efforts to foster relationships in your organization and to develop new leadership. All inherited businesses, regardless of status, are required to provide leadership to their organizations in order to qualify for compensation. Leadership will be evident based on consistent application of the Seven Critical Business-Building Activities—especially evidence of developing new personally enrolled leaders, enrolling new personal customers, and growing your organization and customer base. What if I don’t have any children or grandchildren? Although inheritance is generally a family matter, Melaleuca recognizes that not all Marketing Executives have living children to designate as heirs. If there are no immediate or extended family members available as possible candidates to inherit the business, Melaleuca will consider alternative arrangements on a case-by-case basis. Can an inherited business hire someone to be a proxy in performing the duties of the Marketing Executive in managing the business on behalf of the beneficiary(ies)? No. The Designated Manager must be a beneficiary and must own and control at least as much of the business as any other person or entity. What do I need to do for the inherited business to be successful? You should designate an heir who understands the activities associated with your business or, even more ideally, who has demonstrated the ability to operate their own Melaleuca business. In most cases, the person inheriting the business will be a family member, and that person can enroll and begin building their own business prior to the inheritance so that they are familiar with the mechanics of a Melaleuca referral business well ahead of inheritance. If my heir already has a Melaleuca business, do they have to produce Leadership Points for both businesses? Every Melaleuca business needs to be nurtured to thrive and requires ongoing leadership to be successful. If the person inheriting your business already has their own business and produces
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6 LEAVING A LEGACY
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