**Trademark of Omnitrition International, Inc.
Omnitrition International, Inc.
Copyright Jeffrey Babener www.mlmlegal.com
Welcome to MLMLegal.Com Company Profiles at www.mlmlegal.com. Here you will find brief summaries of pertinent information about hundreds of MLM, Direct Selling, Direct Sales, Network Marketing and Party Plan Companies. As a general matter, the summary information is derived from Company published information, generally posted at Company websites, public information releases or posts at industry trade sites .*
Impact on the Industry
Discussion of Products
Discussion of Opportunity
The Omnitrition Sales and Marketing plan has been designed so that an IMA will have an (www.mlmlegal.com) opportunity to succeed through dedication, hard work, perseverance, integrity and the application of good business principles. This Sales and Marketing Plan is an outstanding example of the way in which any determined individual with the willingness to work can participate in the free enterprise system.
A retail sales organization can grow to levels that provide not only direct retail sales income, but also Bonuses. The IMA who sponsors others into their specific networks, and provide training and leadership, can earn both Retail and Wholesale profits and qualify to earn Royalty Overrides and Royalty Bonuses based on the individual sales of those IMAs that they have sponsored and trained. To earn Royalty Overrides and Bonus Level Royalty Overrides, Fully Qualified Supervisors, who otherwise qualify, must comply with the Omnitrition Retail Sales Rule. (No retail sales = no profit = no royalties.) All income, at every level, must be earned through this retail sales system.
This Omnitrition Sales and Marketing Plan is one of the most successful marketing concepts in existence today. Each and every IMA begins in the same position with an equal opportunity for success and advancement. The rewards an IMA receives from operating his or her business will depend, in part, on the time and effort put into the business. The information in this section is an important guide to sales development; it also shows how IMAs can make the most of their opportunity through the Omnitrition Sales and Marketing Plan.
BECOMING AN IMA
THE RESPONSIBILITIES, RIGHTS AND PRIVILEGES OF PERSONAL SALESOmnitrition is a direct sales, person-to-person marketing company. This means that Omnitrition products are sold directly to the general public through a network of independent distributors rather than through traditional retail outlets such as health food, grocery or drug stores. This method of selling has proven to be one of the most successful marketing concepts in existence today. IMAs can earn money immediately as a result of retail sales made by them. Profits may increase as the IMA sells to more retail customers and repeat business develops. IMAs quickly learn that a firm foundation of continued retail sales is one of the surest ways to be a successful IMA.
It is essential that each Omnitrition IMA personally experience the benefits of the Omnitrition products. This is the cornerstone of an IMA's credibility and ability to share the Omnitrition products with others. As an IMA, you may be asked questions by your customers; about either the products themselves, or the way they should be used. Those questions should be answered by product labels or by company produced or approved product brochure information. If nutritional or technical questions are asked, please refer the person to their personal physician. Omnitrition IMAs are prohibited from making health or income claims about Omnitrition products or stating anything which is not set forth in official Omnitrition literature.
ACCUMULATING PROFIT SLIDING SCALE
In order to purchase at a discount using the Accumulating Profit Sliding Scale, a new IMA need only to purchase a Distributor Kit and sign the Application. As an IMA's aggregate Personal/Group Volume increases, he or she is entitled to purchase products on the Accumulating Profit Sliding Scale, which provides up to a 40% discount off the suggested retail-selling price. This gives the IMA a profit margin from which to build retail business.
Should IMAs obtain product from their Sponsors and/or Fully Qualified Supervisor's personal inventory for the sole purpose of advancing an IMA on the Accumulative Profit Sliding (www.mlmlegal.com) Scale, those sales must be reported to Omnitrition by telephone within twenty-four hours.
ACCUMULATING SLIDING PROFIT SCALE
SALES VOLUME PERCENT
40% (see note below)
An IMA can earn profits from the Accumulating Profit Sliding Scale. For example, while on the Sliding Scale, Distributors may earn Discount Profits on sales and purchases made by their down-line Distributors. If one of your Distributors places an order with Omnitrition and your discount is higher than your down-line Distributor's, you can earn the difference on your down-line Distributor's order.
ADVANCING ON THE SLIDING PROFIT SCALE
Once an Individual has purchased a Distributor Kit, and Omnitrition has accepted and processed the application the new IMA will be at a 20% profit level on accumulating profit scale. When the IMA achieves the volume necessary in one calendar month to advance to a higher percentage on the accumulating profit scale they will remain there until they achieve a higher profit level or until Dec. 31 of the following year ( at the 40% profit level the IMA must become a fully qualified Supervisor or they will start the next month at the 35% profit level on the accumulating profit scale). All IMA'S must re-qualify for any discount over 20% on a yearly basis.
NOTE: At the 40% profit level the IMA must become a fully qualified Supervisor or they will start the next month at the 35% profit level on the accumulating profit scale.
QUALIFYING AS A SUPERVISOR
A Distributor may qualify as a Supervisor by achieving $4,000 in Personal/Group Volume in one month, or $2,000 in Personal/Group Volume in two consecutive months, with at least $1,000 Unallocated Volume in each qualifying month. Once these requirements are met, and the IMA submits a completed Supervisor Application to Omnitrition, the IMA will be a Fully Qualified Supervisor as of the first day of the following month. Fully Qualified Supervisors purchase products at a 40% discount, and this 40% will extend until such time as it becomes necessary to re-qualify for Supervisor (See "REMAINING A FULLY QUALIFIED SUPERVISOR" on page 12 of this Handbook.) Fully Qualified Supervisors may only purchase products directly from Omnitrition. If all of the requirements to become a Fully Qualified Supervisor are not met during the month, the IMA will be at a 35% discount. Qualifying Supervisors must attain Fully Qualified Supervisor status in order to be eligible to earn Royalty Overrides and Bonuses.
Should IMAs obtain product from their Sponsor's and/or Fully Qualified Supervisor's personal inventory for the sole purpose of qualification, these sales must be documented by using a product order form showing the selling and purchasing IMAs and the products sold for the month that an IMA qualifies for Supervisor. These orders must be attached to their Supervisor Application (See Down-line Sales Section for applicable restrictions.
Down-line Sales are sales by an IMA to another IMA within their Personal/Group Organization. From time to time, Omnitrition may place limits on the amount an IMA may down-line to another IMA. An IMA may not sell to a Fully Qualified Supervisor or to any other IMA outside their Personal/Group Organization. Down-line sales must be documented by using a product order form showing the selling and purchasing IMAs and the products sold, and for the month that an IMA qualifies for Supervisor. These orders must be attached to their Supervisor Application (See Omnitrition's Essential Business Forms.) Down-line Sales for the sole purpose of advancing an IMA on the Accumulating Profit Sliding Scale must be reported to Omnitrition by telephone within twenty-four hours of the Down-line Sales. Any product sold down-line to a Qualifying Supervisor must be matched (See Matching Volume requirements.) Product purchased by an IMA from the IMA's up-line may be sold down-line within that IMA's Personal/Group Organization. However, the matching requirement of the sale is based on the original purchase of the product from Omnitrition. (See Rule F-22.)
MATCHING VOLUME REQUIREMENTS DO NOT APPLY TO TRANSACTIONS WHEREIN AN IMA BECOMES A QUALIFYING SUPERVISOR THROUGH DIRECT PURCHASES FROM OMNITRITION. RATHER, THESE REQUIREMENTS APPLY TO THOSE TRANSACTIONS IN WHICH QUALIFYING SUPERVISORS USE PERSONAL/GROUP VOLUME PURCHASED FROM THEIR UP-LINE.
When qualifying a new Supervisor in your Personal/Group Organization, the Personal/Group (www.mlmlegal.com) Volume used to qualify that new Supervisor must either be volume purchased from Omnitrition in that qualifying month or it must be purchased by you or a non-qualifying IMA in your Personal/Group Organization. Products sold to non-qualifying IMAs in your Personal/Group Organization do not have to be matched.
The Sponsoring Supervisor who fails to match Personal/Group Volumes for Qualifying Supervisors during the allowable time frame will be given ten days following the close of that month to match the Personal/Group Volume with only the loss of corresponding eligible Royalty Override, Bonus Level Royalty Override and other Bonus income from that line of sponsorship for a period of three consecutive months.
Should the Sponsoring Supervisor fail to match the Personal/Group Volume by the deadline, he or she will permanently lose this Qualifying Supervisor, the total corresponding down-line, all Royalty Overrides and Bonus Level Royalty Overrides generated by the Qualifying Supervisor. The purpose of the Matching Volume requirement is to prevent the overstocking of inventory and to avoid manipulation of the Marketing Plan.
FULLY QUALIFIED SUPERVISOR
A distributor who has achieved $4,000 in Personal/Group Volume in one month, or $2,000 in Personal/Group Volume in two consecutive months with at least $1,000 Unallocated Volume in each qualifying month, and who has submitted a properly completed Supervisor Application to Omnitrition, becomes a Fully Qualified Supervisor on the first day of the month, following completion of the requirements.
A Fully Qualified Supervisor is not only entitled to receive the top purchase discount of 40%, but also can earn Royalty Override and Bonus incomes from their Organizational Sales Volume. A Fully Qualified Supervisor can earn up to a 5% Royalty Override on the Royalty Value of the Personal/Group Volume of at least three Generations of Down-line Fully Qualified Supervisors. A Fully Qualified Supervisor is eligible to earn Royalty Overrides beginning on the first day following the month that all of the requirements are met to become fully qualified. As Supervisors' Down-line Organizations grow, they may become eligible to earn Royalty Overrides of additional Generations of Down-line Supervisors. Both Royalty Overrides and Bonus Level Royalty Overrides are based on a Supervisor's Personal/Group Volume for each month. If no Personal/Group Volume is produced then no Overrides are earned. Fully Qualified Supervisors may only purchase products directly from Omnitrition.
The following table shows the Personal/Group Volume requirements that must be met to receive a royalty Override and/or Bonus Level Royalty
5% on levels 1,2 & 3 (for levels 4-6 please see Bonus Level Supervisor)
REMAINING AN IMA
There is no Sales Volume requirement to maintain the status of IMA. To remain an IMA, one must apply for renewal and pay the applicable renewal application fee by January 1 of each year. Omnitrition reserves the right to decline any renewal application. Moreover, all IMAs are expected to abide by the Omnitrition Code of Professional Ethics and the Rules and Regulations if they are to remain an IMA in good standing. In the event an IMAs application for renewal is declined, the applicable renewal application fee will be refunded.
REMAINING A FULLY QUALIFIED SUPERVISOR
A fully Qualified Supervisor must be an active IMA in good standing with Omnitrition. Once Omnitrition, recognizes IMAs as being Fully Qualified Supervisors, they retain that status for the remainder of their qualifying calendar year and the following year, should they renew. However, a Fully Qualified Supervisor must re-qualify during the following calendar year, and each year thereafter, in any of the ways allowed under the Omnitrition Sales and Marketing Plan. (Example: An IMA qualifies for Supervisor in September of 2002. Their Fully Qualified date is October 1, 2002. They will remain fully qualified for the remainder of 2002 and 2003. However, to remain Fully Qualified after December 31, 2003, the IMA would have to re-qualify sometime during 2001. After that, re-qualification is necessary every year.)
BONUS LEVEL SUPERVISOR
Once a Fully Qualified Supervisor begins to grow their Omnitrition business and recognizes the potential value of their organization, he or she may wish to make a greater commitment toward that growth. For those wishing to do so, Omnitrition, in exchange, will make available to that Fully Qualified Supervisor Royalty Override income on the fourth, fifth and sixth generations of Fully Qualified Down-line Supervisors, based on certain restrictions and qualifications.
Bonus Level Commitment Required: Fully Qualified Supervisors must agree in writing (by signing a Non-Compete Agreement) not to compete with Omnitrition and their Omnitrition Distributorship by being a member of, or owning an interest in, another Direct Sales/Multi-Level Marketing Company. The Fully Qualified Supervisor cannot transfer his or her interest in another Direct Sales/Multi-Level Marketing Company in an attempt to circumvent the Bonus Level Commitment described in this paragraph. Additionally, to comply with Rule F-4, five of the Supervisor's Retail Customers must be New Customers.
Training Required: Additionally, you must have $4,000 Personal/Group Volume to earn Royalty Overrides on the 4th, 5th or 6th generations. Fully Qualified Supervisors may be required to attend training classes designed to teach distributors how to do the business in an ethical and responsible manner. These schools are geared to meet the needs of Supervisors as they progress through their new business and to (www.mlmlegal.com) ensure that the Omnitrition network operates as a legitimate business enterprise.
As compensation for that Bonus Level Commitment and completion of the required training, Royalty Overrides may be earned on the Personal/Group Volume of up to six generations of Fully Qualified Down-line Supervisors, based on the following qualifications:
Note: All tests are performed on a Leg basis. Each Leg in the down-line of a Bonus Level Supervisor can pay a different number of generations based on the following tests:
If the total of the Personal/Group Volume of your First Generation Fully Qualified Supervisor through your Sixth Generation Fully Qualified Supervisor in a Leg equals $10,000 or more, you are eligible to earn on the Personal/Group Volume of six generations of Fully Qualified Supervisors in that Leg. If not, then
If the total of the Personal/Group Volume of your First Generation Fully Qualified Supervisor through your Fifth Generation Fully Qualified Supervisor in a Leg equals $7,500 or more, you are eligible to earn on the Personal/Group Volume of five generations of Fully Qualified Supervisors in that Leg. If not, then
If the total of the Personal/Group Volume of your First Generation Fully Qualified Supervisor through your Fourth Generation Fully Qualified Supervisor in a Leg equals $5,000 or more, you are eligible to earn on the Personal/Group Volume of four generations of Fully Qualified Supervisors in that Leg.
If none of these three tests are met on a Leg, then you are eligible to earn on the Personal/Group Volume of three generations of Fully QualifiedSupervisors in that Leg.
In the event that it is determined at any time that one or more of a Fully Qualified Supervisor's Legs did not properly qualify due to miscalculations, violations of the Rules governing the Compensation Plan, or as a result of product returns, an IMA's pay status may be retroactively reduced or eliminated for payments previously made to him or her. Any overpayments must be repaid to Omnitrition.The entire document is available online. For any additional information, (www.mlmlegal.com) one must contact the company.
Discussion of Distributor Base and Sales Volume in U.S.
*At MLMLegal.Com the intent of MLM Company Profiles is strictly educational, and, to provide insight into the broad array of Company offerings from an industry that spans the globe in upwards of 150 countries with sales volume exceeding $100 billion and distributor involvement in the tens of millions. MLMLegal.Com does not promote or endorse any Company. MLMLegal.Com offers no value judgments, either pro or con, regarding the Companies. In most instances, descriptive material comes from self description by the Companies themselves. In all presentations, the names and logos of the Companies are obviously the trademarks owned by the Companies and are presented for the express purposes of informing the public about the Companies; and no product or opportunity offered by the Companies is offered in this presentation.
MLMLegal.Com typically provides a link to official Company websites so that readers can become more fully informed about Companies that are profiled. The descriptive material offered is best categorized as "snapshot" information and represents a good starting point for research on Company products, services and opportunities. It should be clearly understood that such information may need updating in a dynamic and changing business marketplace. In addition, the information is gathered and presented in good faith for educational purposes, and if errors in information become apparent, MLMLegal.Com will attempt to correct the information, or if necessary, delete the Profile altogether. A reading of a Company Profile is properly followed up with visits to the Company website, research on major internet search engines, discussions with industry professionals and experts and feedback from those acquaintances who have had direct experience with the Companies. In addition, a wealth of information on MLM, Direct Selling, Direct Sales, Network Marketing and Party Plan will be found at www.mlmlegal.com, including scores of articles, video, resource opportunities and detailed analysis on industry issues and factors to consider in both starting and running a MLM Company or a MLM home based business.
Jeffrey A. Babener, principal attorney in the Portland, Oregon, law firm Babener & Associates, represents many of the leading direct selling companies in the United States and abroad.www.mlmlegal.com