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COMMONLY USED TERMS IN DIRECT SELLING doc shairing

Strategy India helps people associated with direct selling India by educating them about most used terms in direct selling. We also help them to learn about different MLM compensation plans.<br>

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COMMONLY USED TERMS IN DIRECT SELLING doc shairing

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  1. COMMONLY USED TERMS IN DIRECT SELLING – IDEATED AND DEVELOPED BY STRATEGY INDIA Guidelines "Guidelines" is the compilation of directions issued to assist the companies and individuals (including the participants) in observing self-discipline for upholding ethical business practices. Direct Selling Guidelines Consumer "Customer" refers to any person/s whether an individual or an organization (a group of individuals) who: Buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment who may be a user/consumer includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale. or Hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first-mentioned person but does not include a person who avails of such services for providing it to another person/s. Explanation - for this clause

  2. a. "commercial purpose" does not include use by a person who purchases the goods or services to use/consumes them, but the goods or services are purchased exclusively to earn his livelihood using self-employment. b.The expressions "buys any goods" and hires or avails any services include offline and/online transactions through electronic means or by teleshopping or direct selling deploying direct, single-level or multi-level marketing compensation plan. The "customer" may or may not be a direct seller. A customer may or may not be a consumer. Direct Selling "Direct selling" means marketing, distribution, and sale of goods or provision of services through a network of persons (registered with the company as independent contractors), other than through a permanent retail location/s. It is primarily a B2C (Business to Customer) model with some exceptions (where the agreement is entered into between the Direct selling entity and an Entity / Organization- Proprietary, Partnership, Limited liability Partnership, One-person company / Private limited company, Trust, Public limited company, etc.) Also known as Direct Sales, Network marketing, Referral marketing, Affiliate marketing, etc. Company "Company" is a business organization that manufactures or trades in products/services produced by others in exchange for money. The organization may be a manufacturer or a trader of the product/s and/or services. Company Literature "Company Literature" refers to any documents in physical or in electronic form including business opportunity materials, product catalogues, brochures, newsletters, emails, etc. issued or published by the Company on their official platforms to share information, spread awareness, etc. Direct Selling Entity "Direct Selling Entity", means a body corporate which may be a One-person company or a Limited liability partnership or a company engaged in the business of Direct Selling.

  3. It utilizes the services of persons who are independent contractors, also known as direct sellers, to recommend and retail product/s and /or services. The company may commit, calculate and pay incentives/commissions to the direct sellers by deploying Direct, Single level or a multi-level marketing compensation plan. A direct selling entity is the one which follows all the points listed in the Direct Selling Guidelines, 2016. Independent Contractor An Independent Contractor is a person who signs a contract for service* with the entity. A contract for service* implies an agreement wherein one party undertakes to provide services, to or for another in the performance of which he is not subject to detailed direction and control but exercises professional or technical skill and uses his knowledge and discretion. A direct seller/participant is an independent contractor. Direct Seller Direct Seller" is a person above the age of 18 years on the date of enrolment with eligibility to enter into a business contract* who enrolls/registers/signs up with the direct selling entity through a legally enforceable agreement (as an "independent contractor") to undertake direct selling business on principal to principal basis for purchasing the goods at a discount for self- consumption and/or an opportunity to earn income by retailing goods and/or by helping others enroll and retail the goods. A direct seller may be a consumer/user or a customer/purchaser/buyer or a reseller or all of the three. Direct Sellers are generally also known as Distributors, Associates, Independent business owners, Consultants, Networkers, Members, Advisors, Independent business associates, Affiliates, Independent representatives, Agents, etc. *Explanation: - A 'contract' includes e-contracts or digital contracts and the same shall be governed as per the provisions of the Information Technology Act, 2000 and Indian Contract Act as amended from time to time. For More Information Click Here

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