Distributor's Work Rules
Presenting the VIP Marketing Plan
An Example of Possible Earnings
Distributors are not Vision Employees
Publication in the Mass Media, Advertising, Use of Trademarks, Brand Names, and Copyrights
Carrying out Business Activities in other MLM Companies
Change of Sponsor
Transfer of Contract
Termination of a Distributor’s Activities
Distributor and Client
Rights and Obligations of Vision Distributors
The provisions listed in this section are the behavioral norms that every distributor must follow. These rules have been adopted in order to define the functions, obligations, and rights of distributors in relation to each other and also to define the relationships between a distributor and the Company. The purpose of the rules is to create a system of relationships, simultaneously observing the rights of every distributor and not limiting his freedom of action in his business.
A distributor pledges himself to care about the Company’s reputation, adhering to high ethical principles that accord with the spirit of cooperation among distributors.
The basic purpose of Vision’s activities is to increase the amounts of products and services available to the end customer.
A distributor must not interpret descriptions of products and services listed on labels or in official Vision documents in his own way.
A distributor has the right to advertise Vision products only in accordance with the provisions of the Rules and other official Company documents.
A Vision distributor is forbidden to propagandize methods of gaining income that differ from those enumerated in official Company documents.
All distributors are obligated to observe the clauses of the contract signed by them.
Each distributor must maintain proper relations with all other Company distributors.
To the extent possible, distributors must prevent Ethics violations, informing Company employees in good time of any illegal activities performed by other distributors.
Distributors are obligated to run their affairs in a manner such that their activities are proper from the point of view of law and do not harm the reputation of Vision and of its distributors.
1. Professional Leadership
Distributors are obliged to accomplish their activities while observing ethical and professional principles that facilitate the strengthening of the reputation of the Company and the distributors themselves. The behavior of distributors must not harm the Company’s prestige or reflect negatively on the activities of other distributors. Distributors must behave politely and treat with respect all persons with whom they come into contact in the course of their work. Every distributor bears personal responsibility for maintaining Vision’s reputation. The Company concludes a contract with a distributor, placing its trust in his honesty and decency and his ability to carry out his obligations professionally, and at the same time it guarantees him the same honesty and decency on its part.
2. Presenting the VIP Marketing Plan
Distributors must present Vision’s activities within the framework of its Marketing Plan objectively to potential Company distributors. Prior to contract signing the sponsor must present the candidate with all the information contained in Vision’s rules of behavior so that the candidate can evaluate the Company’s activities objectively.
When inviting a candidate to a presentation of Vision and its Marketing Plan the distributor must explain that:
a distributor is an independent entrepreneur;
a presentation is an introductory encounter and does not entail any obligation;
a presentation is not a measure taken to study consumer demand; and
a presentation is the exposition of the Company’s activities and possibilities.
Distributors may tell about the standard of living they have achieved as the result of successful activities accomplished with Vision. Tourist trips, the purchase of cars, real estate, and so on may serve as examples.
3. An Example of Possible Earnings
When presenting the VIP Marketing Plan it is essential to emphasize the inadmissibility of increasing one’s income in ways that are inconsistent with these Rules and Regulations and other official Vision documents. The distributor must clearly explain to all candidates that success in their activities depends exclusively on the efforts they make. At the beginning of a presentation the distributor has the right to caution the candidates that all examples are adduced exclusively as illustrations for the VIP Marketing Plan. The distributor must not exaggerate possible income or claim that success is guaranteed. Examples should be adduced only in order to illustrate the use of the VIP Marketing Plan in one’s work. It is essential that the distributor emphasize that reference to income is made exclusively for explanatory purposes.
4. Monthly Purchase
Every distributor has the right to place the minimum monthly order provided for by Vision in order to be qualified as an active distributor and the right to receive commissions if he has sponsored at least one of the distributors.
5. International Sponsorship
Vision is a worldwide company. Its distributor networks exist in many countries. As Vision’s activity level abroad grows, every distributor gets the chance to be included in prestigious international activities. When he pledges to observe the requirements laid out below, a distributor can conduct his activities in any country where Vision has a presence through an office or a subsidiary company (franchisee) authorized to effect the network marketing program, observing the laws of the jurisdiction in which he conducts his activities.
6. Distributors are not Vision Employees
A Distributor is a person who carries on his entrepreneurial activities on his own, independent of the Company. Distributors are not employees or Vision personnel, and they do not have the right to claim that they are permanent Company employees. Accordingly, distributors do not have the right to indicate such a connection on their business cards or in other documentation. A distributor bears responsibility for obligations (liabilities) and expenditures connected only to the development of his own activities. The Company does not bear responsibility for the obligations (liabilities) of distributors, and distributors are not responsible for the Company’s obligations (liabilities).
It is essential that a distributor not only actively manage the work of the groups that are a part of his network, but also render them support. Your task as a sponsor is to prepare your distributors well, since their business is a part of your business. On the one hand, a sponsor directly monitors the activities of his group, while on the other hand he helps his distributors organize their activities. It is essential that a sponsor do everything possible to be in constant contact with the distributors, since he bears personal responsibility for observation of all the provisions of these Rules. A sponsor has the right to give instructions to his distributors by telephone or by mail. It is essential that a sponsor go through every Company innovation with his group and make sure the distributors have understood it correctly. In the event that a sponsor cannot organize his own group or manage it skillfully, he can turn for help to another distributor, who will render him assistance.
8. Publication in the mass media, advertising, use of trademarks, brand names, and copyrights
Distributors may not produce, demonstrate, or use any materials in which trademarks, symbols, or brand names belonging to Vision appear unless these actions have been approved by the Company. The advertising activities of Vision distributors in the mass media must be carried out in strict accordance with the rules established by the Company in the Regulation “On the Policies and Procedures for the Conduct of Advertising Activities by Vision International People Group Distributors in the Mass Media” as approved by the Company’s Board of Directors. The rules mentioned here also apply to brochures, booklets, books, and other printed materials that distributors intend to publish for advertising purposes.
The Company’s trademarks and/or brand names are its property and distinguish the Company’s products from products marketed by other companies. Accordingly they must be protected reliably in order to avoid the possible deception of customers.
Vision’s products enjoy great market demand. Other companies may attempt to utilize Vision International People Group trademarks and/or brand names protected by copyright to sell similar products. Relying on current legislation, Vision blocks the utilization of its trademarks, emblems, and/or trade and brand names by third persons. Every time the Company’s trademarks or symbols are used illegally, significant material and ethical damage is inflicted upon it. In this connection Vision forbids even its own distributors any utilization whatsoever of its trademarks, brand names, emblems, and other symbols unless they have the Company’s written permission to do so. If a distributor is suspected of improper or forbidden utilization of Vision’s trademarks and/or brand names, it will be proposed to him that he send the Company a sample of the items being disseminated by him so that a decision may be reached.
When Vision International People Group trademarks and brand names are used in advertising materials of a general overview nature, both printed and audiovisual, it is essential that the Company’s interests be observed. As already noted above, Company nomenclature (trademarks) and brand names must be protected from illegal utilization by third persons. This part of the Rules defines the procedures that must be adhered to so as to ensure the legal utilization of Vision International People Group trademarks and brand names by distributors.
In order to preserve a single proprietary style, only the Company itself or its authorized representatives may establish the designs for letterheads, envelopes, business cards, and other documents containing the Vision name or logotype. Business cards, letterheads, and so on may include only the following information:
the name “Vision International People Group,” after which should be added: “Independent Distributor” and;
your name, address, and telephone number.
When any design is changed, Vision so informs its distributors. In accordance with current rules, it is not permitted to publish claims about the therapeutic or medicinal action of Vision products in any advertisement in either oral or written form.
It is forbidden to make improper remarks concerning Vision products. All product descriptions must accord with their description in the Company’s official printed documents.
It is forbidden to sell or advertise Vision products in stores or retail trade outlets, including beauty salons and barbershops. The following sanctions may be applied to distributors who have violated the provisions of the “Rules for the Utilization of Nomenclature (trademarks), Registered Company Brand Names, or Other Materials Protected by Copyright”:
deprivation of the right to utilize Vision trademarks and/or brand names;
demand for compensation for abuse of Vision brand names and symbols; and/or
abrogation of the contract with Vision.
A distributor must immediately inform the Vision office in the country where he carries out his activities of any possible remark or warning made on the part of the host authorities.
9. Carrying out Business Activities in Other MLM companies
A distributor’s activities must be carried out in accordance with the current Rules. A distributor must carry out activities strictly within the framework of the legal and social norms defining his activities. Over the course of the validity period of the contract, a distributor pledges not to engage in activities that are in competition with his commercial activities with Vision, in particular not to advertise and disseminate products of other network marketing companies. A distributor must not resort to any illegal commercial activities. According to the provisions of this document, the Company pledges to support and take part in the development of the successful activities of distributors who, as Vision distributors, honestly present only its products and possibilities in the market. In the event of violation of the conditions indicated and improper behavior by a distributor, such as:
parallel activities in a different network marketing company;
recruiting distributors by disseminating the videocassettes and printed productions of another company;
discrediting the company or its leaders; and/or
destruction of distributor networks.
In connection with the above violations, the Company reserves the right to abrogate the contract with a distributor or to suspend his activities for a certain time (at the Company’s discretion).
10. Change of Sponsor
A potential distributor chooses a sponsor among Company distributors. A candidate has the right to choose a sponsor for himself prior to signing a contract with Vision. A distributor does not have the right to change sponsors over the course of his activities.
11. Transfer of Contract
A distributor has the right to transfer the contract he has signed with Vision to close relatives (his spouse, children, parents). The distributor must thereby submit a written request to the Company with an attached copy of the contract, in which he declares his wish to transfer all the rights to his contract to another person. Photocopies of the passport data of the new owner of the contract must be attached to this statement with confirmation of his agreement to the transfer. After thorough verification of the documents presented, the Company shall make the appropriate decision. In the event a distributor transfers the Contract to his family members, it is not only the distributor’s rights that are transferred but also his obligations. Upon the transfer of his contract to his family members, the distributor has not the right to conclude a new contract until 1 year has elapsed from the transfer date.
12. Termination of a Distributor’s Activities
A distributor has the right to cease his activities, having so informed the Company in writing. In ceasing his activities the distributor loses all rights, advantages, and privileges connected to activities in Vision. The distributor must submit a request to the Company in written form with an attached copy of the contract and passport; a Company employee shall then thoroughly verify the identify of the declarer; in this case the personal presence of the distributor or a notarized power of attorney from the person wishing to annul his contract is required. Company rules strictly forbid the annulment of another distributor’s contract. If violation of this rule becomes known to the Company, the Company reserves the right to apply the appropriate sanctions to the violator. Immediately upon abrogation of the contract, the sanctioned distributor is obliged to cease his activities along with utilization of Company nomenclature (trademarks) and markings. In the event of abrogation of the contract, the distributor has not the right to conclude a new contract until one year has elapsed from the transfer date.
13. Family Contract
Spouses pledge to sign a common family contract. In such case one of the spouses will act as the primary owner of that contract, while the other will act as a partner. Company distributors who have decided to marry after they have registered as Vision distributors have the right for each of them to keep their own contract, creating their own downline structures. In the event of an official divorce, the distributor who acted as the partner has the right to conclude a new Contract with the Company under the same sponsor. The Company considers each such case individually. Only officially registered spouses are allowed to enter family contracts as partners.
Each new distributor pledges to sign only one Contract with the Company. Company ethics strictly forbid signing a second Contract while the first one is still in effect. If it becomes known to the Company that a distributor has signed a second Contract and is sponsoring prospect distributors under that Contract, the Company has the right to apply the following sanctions:
annul the second Contract;
merge the Contracts together into the first signed contract and transfer the group and purchases from the second signed contract to the first;
suspend the contract of the sponsor who re-signed the distributor for a period of one to several months; and/or
suspend the contract of the distributor who re-signed himself for a period of one to several months.
15. Distributor and Client
The core activity that Company’s distributors engage in is propagation of its philosophy Whole Health Option and the culture of a healthy lifestyle. The latter are fundamental values of the company that serves the interests of preserving and improving people’s health, and also preventing children and adults from suffering from diseases that are associated with their unhealthy lifestyle.
Propagation of the Company’s philosophy and ideology includes, among other things, dissemination of printed materials, audio- and videotapes, presentation CD’s and other media containing health related information, and also information about such attributes of a healthy lifestyle as biologically active dietary supplements, cosmetics and other products offered by the Company, the consumption of which makes it possible for every person to improve his or her health. A distributor is obligated to be polite and tactful. All representations of the product must be complete and trustworthy. They must include the rules for usage and the warnings given on the label and also on the printed materials published by the Company and accompanying it. In the event that the client is under medical observation, the distributor should suggest that the client confer with his doctor before changing his system of nutrition.
16. Disciplinary Measures
A distributor who becomes aware of a violation of the Rules is obligated to inform the violator and discuss his act with him. The purpose of the given rule should be explained to the violator. The majority of violations are the result of an incorrect understanding, or misinterpretation, of the Rules. In the majority of instances, calm discussion and explanation are sufficient to resolve the problem. If the violator understands the rule and agrees to act in accordance with it, there is no need to inform the Company of the violation. In the event, however, that the violator refuses to act in accordance with the rule, the distributor can send the Company a detailed description of the given case on the appropriate form. It is a punishable violation of the Rules of Behavior to knowingly give false information. Upon receipt of the given statement by the Company, all sides will be given the opportunity to present evidence, confirmations, and written statements.
The Company makes and ensures all the necessary conditions for its distributors, but if the violation of one of the provisions of the Rules of Behavior becomes known to the Company, it has the right to apply the following sanctions with respect to the distributor:
Suspension of the distributor’s activities for a period of time (at the Company’s discretion). For that time the distributor loses the rights to all the privileges of activities without exception and does not have the right to sign up new distributors. The distributor is deprived of the right to make purchases and to receive commissions. The Company sends the distributor and his sponsor above him a letter to notify them that the Rules of Behavior and Company Ethics have been violated. The distributor must contact the Company within ten days of receipt of the letter to clarify the situation; and
Unilateral abrogation of the contract with the distributor without any compensation. The Company informs the distributor of said abrogation by mail, in a written notification sent to the last address shown in an official document. The contract is considered to be abrogated as of the date indicated in the written notification. The reasons entailing abrogation of the contract are also specified in the notification.
These Regulations was worked out for purposes of regulating the advertising activities of distributors effected by them in the mass media and directed at increasing product sales and expansion of distributor networks; for protecting consumers from untrustworthy information about products, and also for purposes of encouraging competition among VISION International People Group (hereinafter: the Company) distributors. The rules established by these Regulations are obligatory for all Company distributors. The Company reserves the right to change the rules presented below, having informed distributors of rule changes in a timely fashion.
For purposes of these Regulations, mass media is understood to mean a periodical print publication (such as a newspaper, magazine, almanac, bulletin, etc.), a television channel, radio station, or a site or Web page on the worldwide web, or the Internet, that periodically (not less than once a year) disseminates information for an undetermined circle of persons.
The advertising activities of a Company distributor are understood as dissemination by him or by a third person on his behalf in the mass media of information about the prospects for doing business with the Company, and also about its products and the possibilities for their acquisition.
A distributor has the right at his own discretion and observing the requirements established in Article 5 of these Regulations:
- to conduct advertising activities in the mass media in any form convenient to him;
- to utilize in his advertising materials information contained in the Company’s official documents, in its advertising materials, and in the Distributor Manual;
- to utilize Company product brand names and trademarks in his advertising materials;
- to utilize in his advertising materials information contained in Company mass media - in the magazine “Planet of People” and at the Internet site (site address: www.vipgroup.net ), under the obligatory condition that reference be made to these mass media;
- to use advertising material designs pre-approved by the Company in the manner provided for by these Regulations; and
- to utilize Company trademarks in advertising materials.
- to conduct advertising activities in the mass media in any form convenient to him;
A distributor does not have the right:
- to utilize untrustworthy information about Company products in advertising materials;
- to mislead consumers with advertisements exaggerating the amount of their possible income from carrying out distributor activities and by claiming that receipt of income is guaranteed and takes place without any effort on the part of distributors;
- to utilize confidential information about the Company or other distributors in advertising materials; or
- to cause damage to other distributors or the Company as a whole through his advertising materials.
- to utilize untrustworthy information about Company products in advertising materials;
A distributor’s advertising activities in the mass media are allowed only after prior written permission from the Company, with the exception of the instance provided for by Article 9 of these Regulations. Also, the distributor must be registered as an individual entrepreneur.
To obtain permission to place advertising materials in the mass media, the distributor is obligated to apply to the Distributorship Service in the country where the mass media in which he intends to place the advertising materials is registered, with a written application indicating the particular mass media and the approximate period of publication, appearance on television and/or radio, and placement on the Internet of the advertising materials, and a copy of his registration certificate as an individual entrepreneur.
The application may be submitted by the distributor personally or by another distributor in his name, and it may also be sent by mail (including fax) or by e-mail. The distributor must attach the following to his application:
- the complete text of the advertisement or article he intends to publish;
- a cassette with the audio or video recording of the advertising materials which he intends to disseminate;
- a complete printout of the content of the site or Web page he intends to place on the Internet along with the appropriate electronic address.
- the complete text of the advertisement or article he intends to publish;
The Distributorship Service directs the application to the Legal Department in the given country, and the Legal Department examines it on the merits of the case for whether the information contained in the advertising materials accords with the Company’s official documents, the data concerning its products, and the advertising materials emanating from the Company.
When necessary, the Legal Department enters the appropriate corrections into the text of the advertising materials presented by the distributor for Company approval. Corrections, changes, and additions entered into the advertising materials (both editorial changes and those relating to content) by the Company’s experts and Company recommendations with regard to the advertising materials absolutely must be taken into account by the distributor. The Legal Department directs a written reply to the distributor through the Distributorship Service.
Once the distributor receives the Company’s permission to place the advertising materials in the mass media, he is obligated to publish it in the exact form indicated in the statement of permission, having made all necessary changes to the text of the advertising materials.
If the advertising materials are limited to reproduction of advertisements approved by the Company’s national subdivisions, it is sufficient to inform a Company employee about this while presenting a copy of a distributor’s registration certificate as an individual entrepreneur.
The rules established by these Regulations also apply to brochures, booklets, books, and other printed materials which the distributor intends to publish for advertising purposes.
Distributors who have violated the manner for conducting advertising activities established by these Regulations, or who have published advertising materials without the Company’s permission or contrary to such permission, bear responsibility as provided for by the Company’s Code of Ethics and are subject to civil and criminal liability as provided for by current legislation.
The purpose of this regulation is to govern the work of the Company’s distributors on the Internet. It defines the rules and obligations for all Company distributors with reference to the utilization of:
the Company’s logotype and trademarks
ethical norms for advertising and promotion of websites, and
relationships with persons engaged in the preparation and promotion of their pages on the Internet, with the Company, and with the visitors to the distributors’ own Web pages (sites).
2.1. Freely create Web documents (pages, sites) by himself or by resorting to the help of third persons on a paid or free-of-charge basis and to post them on the Internet.
2.2. Utilize in the design of his sites the Company’s logotype, names and description of Company products, and textual materials taken from Company sites without corrections and without entering into them changes that distort the substance of the aforesaid materials.
2.3. A distributor has the right to post on his website a link to the Company’s website for the purposes of concluding a contract with the Company. Contracts shall not be concluded other than from the Company’s official website.
2.4. freely discuss Company Products at forums, chat-rooms, and conferences, and in guest books and newsgroups of any sites; and to express his opinion about their components, conditions and results of usage, and achievements, with obligatory observation of the rules of the given forums, chat-rooms, conferences, guest books, and newsgroups.
2.5. Utilize news groups and generally known and legally operating mailings to get and make available information about one’s activities as they relate to work in the Company.
2.6. When preparing one’s own Web site, to utilize links to Company sites and to include code elements specially prepared by the Company in the code on one’s own Web pages to integrate the Company’s news banners.
3.1. Indicate in a clear and legible script on the title page of the site that the site belongs to an independent Company distributor, indicating the distributor’s full name.
3.2. Post a link to the Company’s official site on his site’s title page.
3.3. Register as a self-employed entrepreneur.
3.4. In a timely fashion, before the site is posted on the Internet, to send the site’s textual materials and illustrations to the Company’s Ethics Department for checking as to its consistency with the requirements provided for in the Regulation On the Procedure for Advertising Activities Conducted by Vision International People Group Рublic Limited Distributors in the Mass Media and with Company ethics. It is not permitted to post materials on the Internet prior to receiving permission from the Company’s Ethics Department In the event of intention to place materials in a language other than Russian, the distributor is obligated to attach to the material sent a complete translation into Russian, maintaining the structure and form of the version written in the language in which the material is to be posted.
3.5. Distributors are not allowed to use on their websites the words “sale” and “store” on their own behalf. It is only the Company that has the exclusive right to sell its products to distributors and clients. Distributors disseminate information about the Company’s (Whole Health Option) philosophy, its core values, products, about officially published results of usage thereof, about their personal experience in the usage of the Company’s products, and about how the Company operates. Distributors also render services [to the Company’s clients] in procuring products at their request.
3.6. When preparing Web documents using textual or graphics materials taken from Company sites (Company Distributors’ sites), to post the following phrase in every Web document containing borrowings: “Materials for this page were taken from the Company site (an independent Distributor’s site plus the distributor’s first, middle, and last name).” The URL with a current hyperlink to the Company (independent Distributor’s) site ABSOLUTELY MUST be given.
3.7. A distributor does not have the right to borrow a design or its elements or the general conceptual idea either from the Corporate site www.vipgroup.net or from other sites, the rights to which are protected by copyright or otherwise.
3.8. Monitor the advertising campaign and the content of his sites in order to avoid utilization of textual and graphics information that is not in accord with Company ethics (posting information of erotic, pornographic, or other content) and spam (unauthorized mass mailings by electronic mail).
3.9. A distributor does not have the right to engage in unauthorized mass mailings by electronic mail (spam) regardless of the nature of the information being disseminated.
3.10. Regularly monitor the content of the guest books, forums, and chat-rooms at his sites, while immediately removing information that is not in compliance with the Company’s ethical norms or that could besmirch its reputation.
3.11. Treat the Company, its products and its leaders with respect, and make sure no statements are made or actions performed that could besmirch its reputation.
3.12. A distributor does not have the right to utilize his Web pages (site) to obtain income not envisaged by the Company’s marketing plan.
3.13. All he distributors who have websites of their own are required to bring them in line with the current Regulation on the operating procedures for distributors on the internet.
3.14. The Company’s site will contain links only to those distributor’ websites which will have passed tests by the Distributor Relations Department and found consistent with all the Company’s requirements.
Distributors who have violated the manner of conducting activities established hereby bear responsibility as provided for by the Company’s Code of Ethics and are also subject to civil and criminal liability as provided for by current law.
5. Terms and Definitions
This article defines the terminology applied in the Company relating to various forms of relationships between the Company and its distributors in order to introduce a uniform understanding of the special terms used when working on the Internet.
A short glossary of terms:
5.1. Web document: any electronic document accessible for perusing on the Internet. Thus, all the pages on the Company’s site are interconnected Web documents.
5.2. Web browser: software used to access Web documents. The most widely used browsers are Internet Explorer, Netscape Navigator, and Opera.
5.3. Meta tags: optional special auxiliary elements in a Web document that are of significance to search engines and catalogs without influencing the document’s external appearance.
- The meta tag “Title” contains the name of the Web document, the name also being reflected in the topmost part of the Web browser window.
- The meta tag “Keywords” contains the so-called key words, the array of which is supposed to facilitate the successful search for a Web document by search engines.
- The meta tag “Description” contains a description of a Web document that characterizes its content.
5.4. Search engines (catalogs, ratings) are specialized Web resources that help Internet users find the Web documents containing the information they are seeking.
5.5. Banner nets are specialized Web resources, mainly ones that provide mutual exchange between sites of special textual or graphics elements - banners containing advertising materials.
5.6. Chat-room, forum, guestbook, and conference are the most widespread interactive forms of Internet user intercommunication made available by Web resources (nodes).
5.7. Unethical resources are Web resources (pages, sites) containing items legislatively forbidden in the country where the distributor operates and information that does not accord with the Company’s ethical norms, such as information that promotes violence, disseminates pornography and erotica, and games of chance.
5.8. An URL (Internet address) is a Web document’s address in characters or digits on the Internet (for example, the Company’s corporate site address on the Internet is www.vipgroup.net ).
5.9. Company sites are the Company corporate site www.vipgroup.net and the official sites of the Company’s regional offices to which links on the corporate site’s title page lead.