For more than 40 years, the network marketing and multilevel marketing industry has been closely monitored by federal and state agencies such as the Federal Trade Commission (FTC), Securities and Exchange Commission (SEC), US Postal Service, State Attorneys General, Commissioners of Corporations and State Securities. In general, these institutions view network marketing in a negative light due to flawed past experiences. Although the last 40 years have produced some shining success stories, regulators still keep a close eye on the industry.
Various aspects of various network marketing programs attract the attention of certain government agencies. The two most prominent areas are the methods companies use to attract new distributors and the basis for incentives. For example, demanding payment from someone in exchange for the right to sell a product and basing bonuses or commissions on the successful recruitment of others into the network (unrelated to sales of the company's products) is illegal.
Since 1979, the FTC has refined its definition and acceptance of legitimate direct sales or network marketing programs.
The results of the FTC decision finally opened the door for legitimate entrepreneurs to look for people who want to build a business independently through a product distribution network. These conditions were the basis for Market America to launch its powerful marketing plan and unique compensation program.
Since the FTC decision, there has been an evolution of network marketing and multilevel marketing programs. Currently, almost every tangible product can be bought and sold using network marketing. The industry has become highly competitive, with companies competing to get independent distributors to join them. This competition has resulted in the development of various compensation structures. This also encourages further scrutiny of marketing plans and their compliance with laws enforced by various regulatory bodies. Despite conflicting interpretations of certain legal boundaries by various agencies, Market America has observed the most stringent interpretations of these regulations and continues to maintain cooperative and conservative compliance with the interpretations and directives of regulatory agencies.
Market Indonesia's marketing plan has been designed to meet these regulatory requirements. Each Independent UnFranchise Owner is sponsored into the corporate organization of another UnFranchise Owner organization. The Management Performance Compensation Plan (MPCP) offers UnFranchise Owners the potential to earn significant financial rewards based on product sales. The plan has no inherent limitations, so every Independent UnFranchise Owner has the same opportunity to be successful if they work hard and is serious about implementing the marketing plan.
The marketing plan is developed to avoid negative incentives and failure and aims to minimize the limitations often found in other network marketing programs. Market Indonesia's marketing plan contains retail sales requirements to ensure compliance with regulations. An interesting observation is that the design of our marketing plan eliminates the potential for misuse or misrepresentation. The design of our plan is such that incentives are based entirely on the product reaching the end user. Based on this plan, when the UnFranchise Owner places a product order, Market Indonesia will ask for customer receipts or other proof that at least 70% of the product order has been sold to end users or retail buyers. Next, UnFranchise Owners must generate 200 Personal Business Volume (PBV) and a minimum of two customer sales with a total rupiah (Rp) of 3 million prior to becoming a qualified UnFranchise Owner who is entitled to receive compensation credit for Group Business Volume (GBV) generated by the UnFranchise Owner within their sales and distribution organization.
Only a small subscription fee is required to become an UnFranchise Owner participating in the compensation program. As an UnFranchise Owner, compensation is only paid on the sales volume accumulated by active qualified UnFranchise Owners who have met their minimum activity requirements. An UnFranchise Owner occupies a Business Development Center (BDC) in a binomial network structure and is qualified to build a marketing organization and earn commissions by first meeting certain sales and Personal Business Volume requirements.
The marketing plan includes a repurchase policy for all currently marketable products or literature purchased within one year of the return date for UnFranchise Owners who discontinue their UnFranchise Business or purchased within 30 days of the return date for UnFranchise Owners who do not discontinue their UnFranchise business. The policy requires that products be offered first to the upline of the UnFranchise Owner to avoid returns for MPCP compensation that has been obtained previously. The entire return process usually takes less than 30 days if the UnFranchise Owner follows the procedures set out in the Market Indonesia UnFranchise Guide. Compensation must be returned if there is no repurchase by the sponsor or upline of the UnFranchise Owner because the product was never sold to the end user. Sales of products to end consumers is a fundamental requirement for compensation in a marketing plan. The policy also allows a full customer refund for UnFranchise Owner products purchased within 72 hours of the date of purchase.
Market Indonesia has also set out ways that UnFranchise Owners can avoid the temptation to make excessive product or income claims. Video, audio and print presentations provide engaging and objective information about the company's plans and products. One of the biggest potential problems in the network marketing industry is misrepresentation by distributors in business presentations. The UnFranchise Owner agreement requires them to understand the marketing plan and present it properly. Executive Coordinators are also required to train, supervise and monitor their organizations and guard against misrepresentation. Market Indonesia encourages UnFranchise Owners to only use marketing tools developed by the company in a group setting and prohibits unauthorized claims of income or use of unauthorized marketing literature or tools. All other materials must be sent to the company for approval first. This practice will minimize the risk of misstatement.
Market Indonesia has established a legal department to oversee the enforcement of UnFranchise Owner ethics and policies and to ensure that company operational standards remain in effect and each UnFranchise Owner respects all applicable laws. The Company is represented by credible and experienced legal counsel in the areas of regulatory compliance, multilevel marketing law, securities law and business law. The strength and future of Market Indonesia depends on innovative products and marketing, but the company also depends on UnFranchise Owners complying with its policies and procedures.
All Independent Market Indonesia UnFranchise Owners are required to comply with all policies, procedures, rules and regulations set forth in this UnFranchise Guide, and these may be amended from time to time. This UnFranchise Guide forms an integral part of the Independent UnFranchise Owner Registration Application and Agreement and is legally binding, as are the other terms of the Registration Application and Agreement.
Market Indonesia respects all regulations governing good business practices and requires all Independent UnFranchise Owners to do the same. This company is a direct sales company that markets its products through Independent UnFranchise Owners. The policies, procedures, rules and regulations herein apply to all Independent UnFranchise Owners and Market Indonesia.