Chapter 25: Key Definitions and Terminology

 

 

Business Development Center (BDC): Often referred to as an income center. The placement in which BV is stored and to which commissions and bonuses are paid. A BDC is identified with a Distributor ID number, and extension number (e.g., -001, -002, -008, etc.). You may have multiple BDCs.

Placement: Term used to illustrate the Distributor or BDC directly above or below a particular Distributor or BDC in the Market America genealogy line. Also referred to as “linkage.”

Master UnFranchise® Owner: Initial entry of a new Distributor with three BDCs, by submitting an initial order of at least 300 BV along with the Independent Distributor Application and Agreement and the subscription fee.

Independent Distributor: An Independent Distributor is a person who has executed an Independent Distributor Application and Agreement and has been entered into Market America’s computer database. This includes both Sales Representatives and Distributors. Often referred to only as a “Distributor.”

Sales Representative: A Sales Representative is any Independent Distributor who has not paid the subscription fee, or has not renewed his/her subscription fee when applicable. A Sales Representative cannot participate in the Management Performance Compensation Plan (MPCP).

Distributor: Short form of Independent Distributor.

Sponsor: An active Distributor who personally recruits a new Distributor, as indicated on the new Distributor’s Application and Agreement.

Distributor Cost: The amount of money that a Distributor pays for products ordered from Market America.

Suggested Retail Price: The price the company suggests for retailing products and services. A Distributor may charge less or more than this figure. This is also the amount on which the Distributor pays sales tax, if applicable.

Business Volume (BV): The numeric value assigned to products and services, which accumulates toward the payout of commission checks.

Personal Business Volume (PBV): Business Volume placed in any of a Distributor’s personal BDCs. This BV is used initially to qualify a BDC, for quarterly BV requirements, and/or to exercise the Monthly Accrual Option.

Group Business Volume (GBV): The collective Business Volume generated by all Distributors within an individual’s downline organization. This BV accumulates toward the payout of commission checks.

Qualified Distributor: A Distributor who has met all three of the following criteria: (1) accumulated at least 200 PBV in a BDC; (2) paid the subscription fee; and (3) is linked properly.

Qualified Business Development Center: Any individual BDC that has accumulated at least 200 PBV, and the Distributor has met all three criteria to be a qualified Distributor.

Qualification Date (Q-date): The Friday of the week in which a Distributor initially meets all three criteria to be a qualified Distributor. This Q-date is the date on which both monthly and quarterly due dates are based for each Distributor.

Monthly Accrual Option: Ability of qualified Distributors to continue to accrue GBV month to month by assigning a minimum amount of PBV to their BDC-001 and subscribing to the UnFranchise Management System approximately every 28 days (each monthly Q-date period). The amount of PBV necessary is determined by the Distributor’s Pin Level (Distributor, Coordinator, or Executive Coordinator and higher).

Transfer Buying: A standing order that is shipped automatically monthly, paid for by bank draft or credit card. This order is designed to cover the PBV necessary to exercise the Monthly Accrual Option; therefore, BV is placed in the Distributor’s BDC-001 automatically. The monthly subscription to the UnFranchise Management System to exercise the Monthly Accrual Option can also be ordered through Transfer Buying.

Bad Flush: The flushing (resetting to 0) of accrued GBV totals in all of a Distributor’s personal BDCs, because the Distributor did not submit the minimum monthly PBV and/or a monthly subscription to the UnFranchise Management System to exercise the Monthly Accrual Option. Also referred to as “Red Flush.”

Active Independent Distributor: A Distributor who has met the minimum activity requirements: (1) submitting a valid quarterly Distributor Sales Report (Form 1000), (2) ordering and correctly assigning the minimum quarterly PBV amount, and (3) submitting a valid Annual Renewal Form. This includes both Sales Representatives and Distributors.

Quarter: For qualified Distributors, a period of every three months based on the qualified Distributor’s initial Q-date (also called a “Three Q-Date Period”). For Sales Representatives and unqualified Distributors, a period of every three months based on the Sales Representative’s or unqualified Distributor’s start date (date the Application and Agreement was received and entered into the computer database by Market America) (also called a “Three Start-Date Period”).

Distributor Sales Report (Form 1000): Report showing proof of at least two retail sales totaling $200.00. This form is due each quarter for BDC-001 and one-time-only for all other extensions of the same ID number.

Purge: The flushing (resetting to 0) of accrued GBV totals and also the purging (resetting to 0) of accumulated PBV in all of a Distributor’s personal BDCs, because the Distributor failed to meet minimum activity requirements. This will cause the Distributor to be considered “inactive” and will cause BV amounts to be subtracted from GBV totals of qualified upline Distributors.

Activate: To make a qualified BDC eligible to earn commission payouts at the applicable GBV levels by personally sponsoring and maintaining at least one qualified Distributor on the left of your qualified BDC, and personally sponsoring and maintaining at least one qualified Distributor on the right of your qualified BDC.

Override Commission: The dollars earned by Distributors on GBV generated by Distributors in the downline organization.

Coordinator: A Distributor who has earned his/her first commission check.

Good Flush: The flushing (resetting to 0) of accrued GBV totals in a particular BDC, because the Distributor accrued at least 5,000 GBV on the left and at least 5,000 GBV on the right of that BDC for a weekly commission cycle.

Executive Coordinator: A Distributor who has accumulated a minimum of 5,000 GBV on both left and right sides of a BDC and has earned that $600.00 commission check, or has had his/her first “good flush” for which a commission check was earned.

Management Bonus: In the same week that a respective BDC earns a commission check for reaching the 5,000/5,000 GBV compensation criteria (had a “good flush”), also having a BDC on the left side and a BDC on the right side each earn a commission check for reaching the 5,000/5,000 GBV compensation criteria. This bonus is an extra $600.00 and is also called a “triple flush.”

Master Coordinator: An Executive Coordinator who has earned a Management Bonus.

 

Last Modified :09/16/2014 5:57:58 PM EDT