New Distributor Training (NDT) Three Required Trainings • New Distributor Training (NDT) • Who are we? • Terminology • Requirements • Basic Five (B5) • The fundamentals of building an UnFranchise Business. • Executive Coordinator Certification Training (ECCT) • Demonstrated knowledge of the above content. • Demonstrated knowledge of policy and procedures. Customise a business based on your interests and goals University concept Emerging Market Program (EMP) • The EMP Program enables sponsoring of UnFranchise Owners in countries that are not yet fully “Open for business” • Product can be shipped to Preferred Customers and UnFranchise Owners in the EMP countries directly from the warehouse in the host country for that region (USA for the Americas and Asia Pacific, and UK for Europe). • UnFranchise Owners get credit for all orders they or their Preferred Customers place. • UnFranchise Owners can build their sales organization with other UnFranchise Owners from anywhere in their region. • Identifies the latest market-driven products • Eliminates the burden of manufacturing • Does not rely solely on the sales of any one product or service • Exclusive products and services • Access to multibillion-dollar markets Exclusive Brands E-mail Marketing Components Service Customers in 200+ Countries Supports Multiple Languages Automatically detects language and country • Provides the power of social media and online shopping • Combines high-tech with high-touch • Offers the ability to reach millions of customers • Matches people to products and products to people The following information provides fundamental knowledge required to ensure Qualified Individuals can successfully attain Financial Independence by implementing The UnFranchise® Business Development System SALES REPRESENTATIVE • No cost • Earn a referral bonus on customers purchasing products† UNFRANCHISE® OWNER • Subscription Fee • Buy product at Independent UnFranchise Owner cost for your use and earn a referral bonus on customers purchasing products† • Participate in the Management Performance Compensation Plan and earn commissions †When purchases are made directly via Global.Shop.com *BDC - Business Development Center Business Development Center (BDC) • Your place of business in the computer system at Market America. 123456789-001 • Identified by your nine digit UnFranchise Owner I.D. followed by a three digit extension. Example: 123456789-001 123456789-002 123456789-003 • The banks for BV are located here. †When purchases are made directly via Global.Shop.com *BDC - Business Development Center • Business Volume (BV) is the unit value (points) assigned to exclusive Market America branded products • BV is used to calculate commissions WAYS TO CREATE BV: • • • • • • Personal use Transfer Buying Referrals Internet Marketing Social media Marketing systems – GLOBAL.SHOP.COM – Printed material • One-to-One Marketing Personal Business Volume (PBV) • All BV is PBV for the BDC it is placed in. • PBV does not accrue in the banks of the BDC in which it is placed • Initially used to qualify a BDC • Used for quarterly PBV requirements • Used to exercise the Monthly Accrual Option Group Business Volume (GBV) • All PBV flows up and counts as GBV in the banks of all Qualified BDCs it flows through. • GBV is used to calculate Commissions and bonuses UnFranchise Owner Cost – • What you pay for products and services. Suggested Retail Price – • What your Preferred Customers pay for products. Referral Bonus – • Difference between UnFranchise Owner Cost and Suggested Retail Price, minus the shipping expense. Accumulate 200 BV to qualify your Business Development Center (BDC) which opens both your left and right BV banks. Once your Business Development Center has been qualified it will begin to accrue Business Volume (BV). Start Date • The date when an application is entered at Market America and an Independent UnFranchise Owner is created in the database. • Used to determine the Start Month, which is when the Annual Renewal due each year Qualification Date (Q-Date) • An UnFranchise Owner’s Q-date is the Friday of the week in which the UnFranchise Owner’s initial BDC became Qualified. • This is the date for which both monthly and quarterly requirements are based • This date will never change as long as an UnFranchise Owner remains Active Quarter For Qualified UnFranchise Owners • Based on the UnFranchise Owner's Q-date; also called a “three-Q-date period.” For Unqualified UnFranchise Owners • Based on the Start date; also called a “three-start-date period.” • Periods: • Begins on the Saturday following an anniversary date • Ends on the Friday following an anniversary date three months later • The next quarter begins the next day (Saturday) Personally sponsor and place one qualified UnFranchise® Owner in your left and right organizations. It is prohibited conduct for a promoter or a participant in a direct sale company to persuade anyone to make a payment by promising benefits in getting others to join the company. MPCP Management / Supervisory Responsibilities • UnFranchise Owners are paid commissions as a result of products moving to end consumers, these products are moved by themselves and by those in their organization. • Management / Supervisory responsibilities under the MPCP guidelines are listed in the Career Manual. Failure to perform the management responsibilities is grounds for corrective action by the company. People lead to people *Green indicates personally sponsored UnFranchise Owner Sponsor • The Independent UnFranchise Owner who introduced you to the business as indicated on your application. • An UnFranchise Owner should never sign an application or any agreement for another UnFranchise Owner • Creating false UnFranchise Owners or using deceptive practices to get people to sign-up can be grounds for corrective action. Placement • Where a BDC is located in the Market America genealogy. • Specified on the application by the new UnFranchise Owner’s Sponsor • Also referred to as linkage • A BDC may only be placed on the left or right side of another BDC where no BDC currently exists (open placement). Sponsorship vs. Placement Example: You personally sponsored Tom, Sue and Matt. Although Matt is personally sponsored by You, notice his placement is on the left side of Dr. Jones’s Business Development Centers Referrals, expanding distribution, Preferred Customers ordering through your Global.SHOP.COM website and personal use Commission • Money earned for accrued GBV totals in Activated BDCs. Management Performance Compensation Plan • An UnFranchise Owner must be Qualified, Active, and Activated to be eligible to earn commissions • If a given GBV level is reached on the left and right of a BDC which is not Activated, that Commission is forfeited UnFranchise Management System (UFMS) A system of management services and tools designed to help manage your sales organisations, maximise your time, and grow your UnFranchise business. * Monthly Subscription Charge for UFMS $20. Features of UFMS • UFMS – Management Reports • Free audio downloads Monthly BV Accrual Option Gives UnFranchise Owners the ability to continue to accrue GBV month to month (12-month rolling accrual) • Must maintain a subscription to the UFMS • Must assign a minimum amount of PBV to their BDC-001 each month • Distributor – 50 PBV • Coordinator – 100 PBV • Executive Coordinator and Higher – 150 PBV Transfer Buying A standing order that is shipped monthly automatically, to help satisfy the criteria of the Monthly Accrual Option. • Saves you time and stress • Paid for by credit card. • Set-up two weeks prior to Q-date. • Can be changed as needed (no later than Friday before the Tuesday that it invoices) Everything that you use monthly, arrives without you even thinking about it, so never run out! Transfer Buying Insured Transfer Buying Rider (Bump Up Option) will automatically double or triple your order when your monthly criteria increases (you earn commissions) and there is not enough BV on it. This prevents a red flush. You can put as much as you want on your Transfer Buying Order. • Anything over what is necessary based on your Pin Level will be placed according to your Excess BV/IBV Placement settings. Flush • Flushing resets your GBV banks to zero (0). Good (Green) Flush – Your banks reset because you accumulated 5000 GBV in the left and right banks of that BDC and received the $600 Commission. Bad (Red) Flush – All of your banks reset because you choose to not exercise the Monthly Accrual Option. Reasons for Red (bad) Flush • You did not exercise the Monthly Accrual Option. • Place 50/100/150 BV in your 001 BDC. • Purchase your monthly UFMS subscription Active Independent UnFranchise Owner There are three requirements to remain “Active”: 1. Have a current Quarterly Sales Report (Form 1000) on file • At least two sales receipts totaling $200 in sales must accompany the Form 1000 • Must submit his/her own sales and Form 1000 every quarter by 11:59 p.m. (Taiwan) on Friday (the end of their Quarter). If done with paper instead of online, must be RECEIVED by 1:59 p.m. (Taiwan) on Friday. • Online sales may only be made at your Global.SHOP.COM 2. Have placed minimum quarterly PBV amounts • 150 PBV in any of your BDCs 3. Have a current subscription (Annual Renewal Form) • Renewal of your subscription is required each year by the end of your Start Month • The month in which your Start Date falls is your Start Month • Auto-Renewal can be setup to automatically renew your subscription each year at the beginning of your Start Month Purge • Your BV totals on the left and right reset to zero in all BDC’s. • The UnFranchise Owner becomes Inactive • Must re-qualify BDCs with 200 PBV before they will begin to accrue GBV again. • All PBV disappears from upline banks. NOTE: This affects everyone upline who has not flushed on your volumes as this purge volume is removed from their GBV totals. Reasons for Purge • You did not meet your Minimum Activity Requirements of at least 150BV for the quarter. • You did not submit your Form 1000 (quarterly sales report) in a timely manner. • You did not submit your Annual Renewal in a timely manner. BV commissions are calculated weekly 5,000 3,600 2,400 1,200 5,000 3,600 2,400 1,200 1,200 total BV from your left and right = $300 2,400 total BV from your left and right = $300 3,600 total BV from your left and right = $300 5,000 total BV from your left and right = $600 Management Bonus • $600 bonus paid for demonstrating management and growth. • In the same week that a BDC earns a Commission check for reaching the 5000/5000 GBV pay out criteria, a BDC on the left side and a BDC on the right side each earn Commission checks for reaching the 5000/5000 GBV pay out criteria. • Also called a “Triple Flush” Every time you and any BDC in your left organization plus any BDC in your right organization completes the BV commission cycle in the same week, you receive a management bonus of $600. Re-Entry • Gives an UnFranchise Owner the ability to place another BDC in their organisation. • Earned when a BDC earns the check for reaching the 5000/5000 pay level the first time • Only awarded once per BDC • Must be placed according to policy Open additional Business Development Centers to increase your commissions 200 BV Building Share of Customer 10-15 Customers shopping regularly • Offer existing customers more products/services through your Global.SHOP.COM site • Match products to people, and people to products Building Share of Customer Principle #1: Selling more products to fewer people is easier • • • Within the Product Line Within the Store Within the Mall Customer of Customer Building Share of Customer Principle #2: Sustaining dialogue and obtaining feedback • What do your customers really want? • What does this individual customer really want? • What would they purchase from you, if you had it? Building Share of Customer Principle #3: Building unique relationships with these customers • Demonstrate an active interest in customers as individuals. • Communicate on a periodic and frequent basis – Not Just The Sale. • Utilise mail, telephone, voicemail, email, social media (facebook, Twitter, Linked In, Blogs, etc.), and website. Pin Levels and Requirements Coordinator An UnFranchise Owner who is qualified, activated, and has earned at least their first Commission. • Must submit Form 1001 - Executive Coordinator Qualification and Application Form Agreement to accept responsibility of Executive Coordinator • Must submit Form 925 - Executive Coordinator Acknowledgement & Agreement Agreement to certify you are attending all three required trainings and complied with the 70% rule proving a Form 1000 (Distributor Sales Report) with at least $200 in sales. Both of these forms are part of the Online Sign-Up Wizard and have probably already been done. Pin Levels and Requirements Executive Coordinator An UnFranchise Owner who has accrued a minimum of 5000 GBV on both the left and right sides of a BDC and has earned that $600 Commission. • Must attend an Executive Coordinator Certification Training (ECCT) – within 28 days of earning the $600 Commission • Prerequisites for the ECCT are attendance/completion of a NDT and a Basic Five • UFMS is a requirement for Executive Coordinator and above Pin Levels and Requirements Master Coordinator An UnFranchise Owner who has Triple Flushed (earned the $600 Management Bonus) Pin Levels and Requirements All Pin Levels beyond Master Coordinator are based on commissions and bonuses received from the MPCP in a four week pay cycle. We are not employees of Market America. We are Independent UnFranchise Owners. Our income should not be advertised. Recognition statement of Income earned: “has earned at least ________ in a 4 week pay cycle” Pin Levels and Requirements • Senior Master Coordinator – • earned ≥ $3,000 in a 4 week pay cycle • Professional Coordinator – earned ≥ $4,500 in a 4 week pay cycle • Supervising Coordinator – earned ≥ $7,500 in a 4 week pay cycle • National Supervising Coordinator – earned ≥ $10,000 in a 4 week pay cycle • Executive Supervising Coordinator – earned ≥ $15,000 in a 4 week pay cycle • Director – earned ≥ $18,000 in a 4 week pay cycle • Executive Director – earned ≥ $25,000 in a 4 week pay cycle Pin Levels and Requirements • Field Vice-President – earned ≥ $36,000 in a 4 week pay cycle • Executive Field Vice-President – earned ≥ $45,000 in a 4 week pay cycle • Senior Executive Field Vice-President – earned ≥ $63,000 in a 4 week pay cycle • Field President – earned ≥ $80,000 in a 4 week pay cycle • International Field President – earned ≥ $100,000 in a 4 week pay cycle • International Field Chairman – earned ≥ $125,000 in a 4 week pay cycle Forfeit • This means you have enough volume on the left and right of a BDC to meet a given pay out criteria but you do not get the commission. Reasons for Forfeit • You do not have your 2 personally sponsored UnFranchise Owners (one on the left and one on the right) when you reach a payout increment. Example: Reaching 1200 BV on the left and 1200 BV on the right before becoming activated. • You have not sent in the required forms 925, 1001. They both must be completed after you earn your first $300 Commission. • You have not completed the three required trainings NDT, B5 and ECCT. All three must be completed to continue receiving commissions after you complete the pay cycle the first time (5000 BV/5000 BV). Record keeping - Expenses • • • • • • • • • • • Advertising & promotional materials Automobile expenses (mileage) Travel expenses (airfare) Lodging and meals Entertainment of prospects and downline Trainings and admission fees (tickets) Freight, Administrative, shipping costs Postal charges Business equipment (computer, fax, furniture) Office supplies (paper, ink) Professional fees (tax preparation etc.) Record Keeping - Income • Referral bonuses • Commissions and bonuses received from the Management Performance Compensation Plan. Building a Solid Foundation for Profitability and Stability The Objective For Every New UnFranchise Owner • Create a cash flow through building a repeat customer base. Base 10 Seven Strong • Create distribution through other UnFranchise Owners – earn $300 monthly in commission • Short-term goal – Personally sponsor 2 who sponsor 2 each and attain Base 10 Business Goals Begin with Base 10 • Personally purchase and use at least 100 BV per month • Establish 10 Repeat Customers – Base of > 10 purchasing a minimum of 30 BV monthly within 90 days (2 per week, first 12 weeks) • This generates 400 BV each month. Duplicate this within your organisation. Sales Generation Goal – Base 10, Seven Strong After Three-Six Months, Earn > $300/Monthly 1200 BV 1200 BV 400 BV 400 BV 400 BV 400 BV 400 BV 400 BV 400 BV The UnFranchise Business Account (“Back Office”) It is the UnFranchise Owner-only Web site that provides you with all of the tools necessary to measure, monitor, adjust and control your business. Your Profile, Company Information, Customer Data, Order History, Forms, Reports, Marketing Tools, and much more are found on the UnFranchise Business Account. Your Rep ID or Email and password are required to login to the UnFranchise Business Account at EMP.UnFranchise.com. Do not give your back office password to any other UnFranchise Owner or log on to the back office of any other UnFranchise Owner, including upline, crossline and downline because every UnFranchise Owner is responsible for managing his/her own UnFranchise business. emp.unfranchise.com Enter your Rep ID (7 digit) or the E-mail address that is on file with Market America Enter your password Click “Login!” TRAINING MODULES Go to: www.unfranchisetraining.com NDT Review Questions • What are the three required trainings? • How do you Qualify your BDC? • What does the term BV mean? • What is your start date? • What is your Q-Date? • What are your Q-Date Quarter periods? • What is MPCP? NDT Review Questions • What do you need to do to remain “Active”? • What does it mean to Activate? • How do you earn a Management Bonus? • When do you earn a Re-entry? • Where do you find the training modules? • What do you need to login to the UnFranchise Business Account (“Back Office”)? • Why did you start your UnFranchise Business? • What is Market America? Your Next Step • Develop your “What is it?” • Develop your 2 minute commercial. • Develop you Goal Statement. • Purchase products for personal use. • Develop a customer base of 10 Preferred Customers. • Attend all three required trainings. New Distributor Training (NDT)