To Expand the Business, do you know where the market is? (2016.12.09)

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To Expand the Business, Do You Know Where the Market Is?

December 9, 2016

Tracy has joined NU SKIN for quite a while but she still does not fully understand the Policies and Procedures of NU SKIN. She hoped to learn more about the compliance and ethics regulation so as to build her NU SKIN business with compliance. In the hope of “DISCOVER THE BEST YOU”, she joined a compliance and ethics training course jointly held by the company and her upline, Max.

Max: Hi everyone! The theme of our compliance and ethics training this time is to prohibit distributors from switching lines or enticement. Does anyone know what enticement or line switch means?

Tracy raised her hand to reply: Line switching refers to distributors’ violation of the NU SKIN Policies and Procedures by changing their sponsors without cessation of business activities for certain period (whether in their distributorship or the distributorship of another person), and subsequently opening a new distributor account in another team in their own name or in others’ name. On the other hand, enticement refers to the deliberate act of urging or persuading somebody to leave his/her original team and re-join another team, even if it is known that the person is a distributor already or has been followed up by another distributor.

Max: Tracy, your understanding is completely correct!

Tracy: I have been actively joining the training courses and conferences of the company, including the Gold Meeting、the All Star Conference and the NU SKIN Academy, from which I have gained abundant knowledge regarding ethics and compliance. As my downline partners had been enticed by other business partners before, I am more willing than ever to cooperate with the Department of the Ethics Leadership of the company to protect my rights and benefits, as well as that of other partners.

Max: I understood your feeling. I feel really sad whenever I imagine the partner with whom I have been through thick and thin are suddenly enticed. Fortunately, the Ethics Leadership Department of the company proactively deals with any cases involving line switch and enticement so as to safeguard the rights and benefits of partners. Also, once it is confirmed that an inappropriate change of sponsor has occurred or that somebody has indeed been encouraged to do so, the distributorship of the second distributor, as well as his/her entire downline organization, will be moved back to the first distributorship. This can ensure the protection of rights of the uplines of the original team.

Crystal: I am sorry to have let Tracy and Max down. I was in Tracy’s team and I was the one who had been encouraged to switch line. I know that Tracy has been taking good care of me since I signed up as NU SKIN distributor. She has also given me a lot of advice regarding the usage of products and business building, which led to the development of my own team. However, I was too immature to be persuaded to develop my business in another team. After the company had conducted thorough investigation, my second-in-time Distributorship was returned to and be merged with the first-in-time Distributorship. This incident made me realize what I had done wrong. Not only will I not be able to develop business sustainably in NU SKIN, but impose harm and negative impact to my team and the company.

Tracy: I believe that as long as everyone fully understands and complies with the company’s Policies and Procedures, and builds his/ her NU SKIN business accordingly, the occurrence of violations must be reduced.

Max: Right! Let’s give credit to Jack from Ethics Leadership, who helped preparing the materials for this training. Let’s give him a round of applause!

Jack: The company has been doing our utmost to crack down on violations regarding enticement and line switch. Upon verification by the company that enticement and line switch occurs, besides moving back the second-in-time distributorship, together with his/her entire downline organization to the original team, any distributors who have switched line or solicited enticement will be severely punished. Business Partners, to expand the business, do you now know where the market is? Only by finding the right target will your business with NU SKIN be growing steadily and sustainably!

Please refer to the following provisions of the Policies and Procedures or contact Ethics Leadership directly for more information:
Chapter 1  Your Distributorship
Section 3 Maintaining Your Distributorship Account
3.3 Starting a Distributorship under a New Sponsor
When the Company concludes that an inappropriate Sponsor change has occurred or has been solicited, the second-in-time Distributorship may be returned to and be merged with the first-in-time Distributorship and the Company may pursue other remedies listed in Chapter 6.

Chapter 4  Sponsoring
Section 2 Responsibilities of a Sponsor
2.1 Training of Downline Organization
You must supervise, train, support, and have on-going communication with (i) any Distributor that you sponsor, and (ii) your Downline Organization in a manner consistent with the terms of the Contract. Your responsibilities include, but are not limited to:
(a) Provide regular retail sales and organizational training, guidance, and encouragement to your Downline Organization;
(b) Exercise your best efforts to make sure that all Distributors in your Downline Organization properly understand and comply with the terms and conditions of the Contract and applicable national and local laws, ordinances, and regulations;
(c) Intervene in any disputes arising between a customer and any of your Downline Organization and attempt to resolve the disputes promptly and amicably;
(d) Maintain contact with your Downline Organization and be available to answer questions;
(e) Provide training to ensure that the Product sales and opportunity meetings conducted by your Downline Organization are conducted in accordance with the Contract, current Company literature, and in accordance with any applicable laws, ordinances, and regulations;
(f) Monitor the activities of those you personally sponsor and those in your Downline Organization and work in good faith with the Company to prevent the violation of these Policies and Procedures and manipulation of the Sales Compensation Plan;
(g) Supervise and assist your Downline Organization’s efforts to sell the Company’s Products to retail customers; and
(h) Cooperate with the Company regarding investigations of your Downline Organization, and, upon request from the Company, provide all relevant information pertaining to any investigation.

2.2 Line Switching
You may not encourage, entice, or otherwise assist another Distributor to transfer to a different Sponsor. To do so constitutes an unwarranted and unreasonable interference with the contractual relationship between the Company and its Distributors. This prohibition includes, but is not limited to, offering financial or other tangible incentives for another Distributor to terminate an existing Distributorship and then re-sign under a different Sponsor. You agree that a violation of this rule inflicts irreparable harm on the Company and agree that injunctive relief is an appropriate remedy to prevent that harm. The Company may also impose penalties on any Distributorship that solicits or entices an existing Distributor to change lines of sponsorship.

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