Section 2: Definitions

Annual Renewal Fee: A fee that is required to be paid by a Wellness Advocate to the Company to renew his or her Distributorship each year on the Wellness Advocate’s anniversary signup date.

 

Bonus: Compensation (sometimes called “commissions”) paid by the Company to a Wellness Advocate based on the volume of products sold by a Wellness Advocate’s organization upon meeting the requirements of the dōTERRA Sales Compensation Plan. See, Section 10.

 

Business Application Addendum: A supplemental document to the Wellness Advocate Agreement Form. The Business Application Addendum must be completed and signed by a partnership, corporation, or other legal entity (see Corporation) applying to become a Wellness Advocate. The Business Application Addendum should list all Persons who are partners, shareholders, principals, officers, beneficiaries, directors or members of a Corporation.

 

Company: Company or “dōTERRA” means dōTERRA Enterprises, SARL.

 

Company Credit: Company Credit is a Wellness Advocate’s account receivable balance. Company Credit can be used to purchase product or can be redeemed for cash (compare, Product Credit).

 

Consultant: The title of level one Wellness Advocates in the Company’s Sales Compensation Plan, also used from time to time to generally describe and identify dōTERRA Wellness Advocates.

 

Contract: The agreements between a Wellness Advocate and the Company comprised of this Policy Manual and the Wellness Advocate Agreement Form together with any Business Application Addendum.

Corporation: Any business entity such as a corporation, partnership, limited liability company, or other form of business organization legally formed under the laws of Malaysia in which it was organized.

 

Distributorship: The term Distributorship is another term for the business of any Wellness Advocate, as represented by a Wellness Advocate’s contractual relationship with the Company.

 

dōTERRA Intellectual Property: dōTERRA Intellectual Property means all intellectual property which dōTERRA Holdings, LLC or an affiliated company claims to own, or claims a right to use, including but not limited to trademarks, trade names, service marks, and content of its publications, whether registered with relevant governmental authorities or not.

 

Downline: Another term for Organization.

 

Enrollee: An Enrollee is a Wellness Advocate who was enrolled by an Enroller.

 

Enroller: Enroller is a designation that entitles a Wellness Advocate to qualify for Ranks and Fast Start Bonuses in the Sales Compensation Plan. Enrollers also enjoy the ability to identify a new Wellness Advocate’s Sponsor within the Enroller’s Organization. An Enroller can also be the Sponsor (compare, Sponsor).

 

Wellness Advocate: A Person who is an independent contractor authorized by the Company to purchase and retail products, recruit other Wellness Advocates, and receive Bonuses in accordance with the requirements of the Sales Compensation Plan. A Wellness Advocate's relationship to the Company is governed by the Contract. More than one Person may be included on a Distributorship as a co-applicant. In such a case, Wellness Advocate refers to all Persons collectively, although each Person individually has all the Wellness Advocate rights and obligations.

 

Wellness Advocate Agreement Form: The application, whether in printed or electronic form, to become a Wellness Advocate which, upon acceptance by the Company, is part of the Contract between the Wellness Advocate and the Company.

 

Local Market: A single country or grouping of countries that the Company designates.

 

Loyalty Rewards Program: The Loyalty Rewards Program (LRP) is a product ordering program wherein a Wellness Advocate can set up automatic monthly deliveries of dōTERRA products, and which may qualify a Wellness Advocate to receive Product Credits and other benefits in the Sales Compensation Plan (see, Section 10.B.9).

 

Open Local Market: A country or geographical region designated in writing by the Company as officially open for dōTERRA business.

 

Organization: The group of Wellness Advocates and Preferred Members (PMs) sponsored in a Wellness Advocate’s direct and subsequent downline chain of sponsorship.

 

Person: An individual, corporation, partnership, or other legal entity.

 

Ranks: Designations (levels) earned by and given to Wellness Advocates in the Company’s Sales Compensation Plan structure, including: Consultant, Manager, Director, Executive, Elite, Premier, Silver, Gold, Platinum, Diamond, Blue Diamond, and Presidential Diamond. Ranks are earned and determined each month.

 

Policy Manual: Another term for Contract.

 

Preferred Member (PM): A person who has a relationship with dōTERRA that allows the person to purchase products at a discounted price. A Preferred Member has not signed a Wellness Advocate Agreement Form and cannot sponsor Wellness Advocates or other Preferred Members. A Preferred Member may also qualify for Product Credits under the Loyalty Rewards Program.

 

Product Claims: Claims related to the efficacy or effect of dōTERRA products. Product claims are regulated by federal, state, or local governments in which the Wellness Advocate does business, including the Ministry of Heath, Ministry of Domestic Trade, Co-operatives and Consumerism or similar governmental agencies in the jurisdiction of the Wellness Advocate. 

 

Product Credits: Product Credits are non-cash redeemable points that can be used to purchase Company designated products. Product Credits are granted as part of the LRP, and in the discretion of the Company for deserving Wellness Advocates. No Personal Volume or Organizational Volume is associated with the redemption of Product Credits (compare, Company Credit).

 

Sales Aid: Any material, whether physically printed or in digital form, used in the offer or sale of Company products, recruitment of prospective Wellness Advocates, or training of Wellness Advocates, which makes reference to the Company, the Company products, the Sales Compensation Plan, or dōTERRA Intellectual Property.

 

Sponsor: A Wellness Advocate who has another Wellness Advocate placed directly underneath him inhis Organization (compare, Enroller).