Section 2. Definitions

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

Allowed Content: Allowed Content means only the Content, which is quoted or published in the section of www.dōTERRA.com/tools, related to the Local Market in which a Wellness Advocate markets products or recruits other Wellness Advocates.

 

Bonus:  Compensation (sometimes called “commissions”) paid by the Company to a WA based on the volume of products sold by a WA’s Organisation upon meeting the requirements of the Sales Compensation Plan.

 

Business Application Addendum:  A supplemental document to the Wellness Advocate Agreement. The Business Application Addendum must be completed and signed by a partnership, corporation, or other legal entity (see Corporation) applying to become a WA. 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, Sàrl and doTERRA New Zealand as subsidiary.

Company Credit:  Company Credit is a WA’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 WAs in the Sales Compensation Plan, also used from time to time to generally describe and identify dōTERRA WAs.

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

 

Customer:  The term “Customer” includes Wholesale Customers.

 

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

dōTERRA Intellectual Property:  dōTERRA Intellectual Property means all intellectual property which doTERRA New Zealand, doTERRA International, LLC, dōTERRA Holdings, LLC, or doTERRA Enterprises, Sàrl or an affiliated company or companies claim 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, existing anywhere in the world.

Downline:  Another term for Organisation.

 

Enrolee:  An Enrolee is a WA who was enroled by an Enroler.

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

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 WA can set up automatic monthly deliveries of dōTERRA products, and which may qualify a WA to receive Product Credits and other benefits in the Sales Compensation Plan.

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

Organisation:  The group of Wellness Advocates (WAs) and Wholesale Customers (WCs) sponsored in a WA’s direct and subsequent downline chain of sponsorship.

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

 

Product Claims:  Claims related to the efficacy or effect of dōTERRA products. Product claims are regulated by New Zealand law.

 

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 WAs. No Personal Volume or Organisational Volume is associated with the redemption of Product Credits (compare, Company Credit).

 

Ranks:  Designations (levels) earned by and given to WAs in the 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 based on the sales of the Wellness Advocates and Wholesale Customers that you personally sponsor, the sales of the consultants they sponsor, and the way that your downline Organisation is configured. The name of a rank does not denote an employment position with the Company.
 

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

 

Sponsor:  A Wellness Advocate who has another WA placed directly underneath him in his Organisation (compare, Enroler).

 

Wellness Advocate (WA):  A Person who is an independent contractor authorised by the Company to purchase and sale products, enrol other WAs, and receive Bonuses in accordance with the requirements of the Sales Compensation Plan. A WA'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 WA rights and obligations.

Wellness Advocate Agreement (WAA):  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.

Wholesale Customer:  A Wholesale Customer is a Person who purchases products at a discount. A Wholesale Customer does not earn bonuses through the dōTERRA Compensation Plan. A Wholesale Customer, however, may earn volume discounts on products through dōTERRA’s Loyalty Reward Program.

 

Wholesale Customer Agreement Form:  The application, whether in printed or electronic form, to become a Wholesale Customer.