To be tax-exempt as an organization described in IRC Section 501(c)(3) of the Code, an organization must be organized and operated exclusively for one or more of the purposes set forth in IRC Section 501(c)(3) and none of the earnings of the organization may inure to any private shareholder or individual. In addition, it may not attempt to influence legislation as a substantial part of its activities and it may not participate at all in campaign activity for or against political candidates.
The organizations described in IRC Section 501(c)(3) are commonly referred to under the general heading of "charitable organizations." Organizations described in IRC Section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with IRC Section 170.
The exempt purposes set forth in IRC Section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and the prevention of cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erection or maintenance of public buildings, monuments, or works; lessening the burdens of government; lessening of neighborhood tensions; elimination of prejudice and discrimination; defense of human and civil rights secured by law; and combating community deterioration and juvenile delinquency.
To be organized exclusively for a charitable purpose, the organization must be a corporation, community chest, fund, or foundation. A charitable trust is a fund or foundation and will qualify. However, an individual or a partnership will not qualify. The articles of organization must limit the organization's purposes to one or more of the exempt purposes set forth in IRC Section 501(c)(3) and must not expressly empower it to engage, other than as an insubstantial part of its activities, in activities that are not in furtherance of one or more of those purposes. This requirement may be met if the purposes stated in the articles of organization are limited in some way by reference to IRC Section 501(c)(3). In addition, assets of an organization must be permanently dedicated to an exempt purpose. This means that should an organization dissolve, its assets must be distributed for an exempt purpose described in this chapter, or to the federal government or to a state or local government for a public purpose. To establish that an organization's assets will be permanently dedicated to an exempt purpose, the articles of organization should contain a provision insuring their distribution for an exempt purpose in the event of dissolution. Although reliance may be placed upon state law to establish permanent dedication of assets for exempt purposes, an organization's application can be processed by the IRS more rapidly if its articles of organization include a provision insuring permanent dedication of assets for exempt purposes.
An organization will be regarded as "operated exclusively" for one or more exempt purposes only if it engages primarily in activities which accomplish one or more of the exempt purposes specified in IRC Section 501(c)(3). An organization will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt purpose.
The organization must not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. No part of the net earnings of an IRC Section 501(c)(3) organization may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any managers agreeing to the transaction.
To be tax-exempt as an organization described in IRC Section 501(c)(8) of the Code, an organization must be organized and operated exclusively for one or more of the purposes set forth in IRC Section 501(c)(8) and none of the earnings of the organization may inure to any private shareholder or individual.
Organizations described in IRC Section 501(c)(8) may receive membership dues or donations, however these proceeds are not tax-deductible.
The exempt purposes set forth in IRC Section 501(c)(8) are fraternal beneficiary societies, orders, or associations operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system, and providing for the payment of life, sick, accident, or other benefits to the members of such society, order, or association or their dependents.
In addition, assets of an organization must be permanently dedicated to an exempt purpose. This means that should an organization dissolve, its assets must be distributed for an exempt purpose described in this chapter, or to the federal government or to a state or local government for a public purpose. To establish that an organization's assets will be permanently dedicated to an exempt purpose, the articles of organization should contain a provision insuring their distribution for an exempt purpose in the event of dissolution. Although reliance may be placed upon state law to establish permanent dedication of assets for exempt purposes, an organization's application can be processed by the IRS more rapidly if its articles of organization include a provision insuring permanent dedication of assets for exempt purposes. For examples of provisions that meet these requirements, download Publication 557, Tax-Exempt Status for Your Organization.
An organization will be regarded as "operated exclusively" for one or more exempt purposes only if it engages primarily in activities which accomplish one or more of the exempt purposes specified in IRC Section 501(c)(8). An organization will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt purpose.
The organization must not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. No part of the net earnings of an IRC Section 501(c)(8) organization may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any managers agreeing to the transaction.
Commissions are a pre-defined dollar or percentage amount paid to an activated member on his or her direct and downline commissionable volume. Commissions are any money paid to an Independent Marketing Representative (IMR), Fundraiser (FR), or Member
What generates a Commission: 1. Sales Commission a. Sales Commissions are generated when an IMR application is submitted 2. Shopping a. A shopping commission is generated when a verified and activated member of any type makes a store purchase 3. Services a. A service commission is generated when a verified and activated member of any type purchases a monthly service Commission Qualifications: 1. Must have a verified and activated account 2. Must have a Gateway License 3. IMR’s must maintain their monthly maintenance feeGreenBackStreet Membership Positions:
1. Membero Free
o Verification required
o Activation required
o Free
2. Marketing Director (MD)o $499.95 licensing fee
o $29.95 per month
3. Regional Marketing Director (RMD)o $5,000 licensing fee
o $29.95 per month
4. National Marketing Director (NMD)o $25,000 licensing fee
o $29.95 per month
Membership RankingsMember < Marketing Director < Fundraiser < Regional Marketing Director < National Marketing Director
Terms1. Member – Anyone who has activated in any position in GateNet or GreenBackStreet
2. Shopper – The free position in any Gateway or in GreenBackStreet.com
3. IMR – Independent Marketing representative participating in and managing their GateNet Business; Marketing Director, Regional Marketing Director and National Marketing Director
4. Gateway Licensee – Anyone that had licensed a GreenBackStreet mall
5. Sales Commission – A predetermined monetary amount awarded in cash back to an IMR of a particular level for the sale of a mall license or a Local subscription
All Members
As a security precaution, all members must provide valid contact information, that contact information must be verified and they must activate their accounts before any commissions are generated or received. Their accounts will be in a suspended status until they are verified and activated. This will not hinder the shopper from logging in or browsing the site, however, they will not be able to link to store, shop, purchase services, play games, invite friends, nor generate or receive commissions.
· A member registers by providing a valid email address, username, password, address and phone number
o Users are permitted to register multiple times, but may not refer themselves. If they do, they are subject to termination from the program per the terms and conditions
o The email address and the username must be unique
o Email address is assumed valid because it must be entered twice.
o Activation email is sent immediately to new member
o GreenBackStreet registrations are also accepted on the GateNet recruiting website and require that the member be verified and activate their GreenBackStreet account.
· Members earn cash back rebates on all qualified purchases made in a Gateway
o Cash back rebate amount is based on level 1 commission for the particular merchant they are shopping at (See Shopping and Services)
· Level 1 commissions vary with each merchant
· Level 1 commissions may be expressed in a percent or a set cash amount
· Members earn cash back rebates on directly referred members
o Cash back rebate amount is based on level 2 commissions for the particular merchant that the referred shopper shops at
· Members do not earn cash back rebates on the purchases made by referrals of higher status
· Members receive cash back rebates on directly referred members that use monthly services (see Shopping and Services)
· Cash back rebates are paid to shoppers via Check or PayPal from GreenBackStreet
· Members refer other members by:
o Using the invitations system built into their “My Account” section
· This system sends an email from GreeBackStreet.com on behalf of the member that has the member’s promo number embedded in the link for the prospective member to join OR
· Telling someone to go to www.greenbackstreet.com, register and use their promo number
· Sending someone to the members wildcard site
· Members may participate in games and take advantage of specials and free shipping offers.
Marketing Director
· Cost
o $499.95 Licensing fee
o $29.95 Monthly maintenance
· Activation
o As a security precaution, all members must be verified and activate their accounts before any commissions can be generated or paid. Their accounts will be in a suspended status until they are activated.
· Compensation
o Shopping and Service Commissions (see Shopping and Services)
· Level 1, Level 2 and Level 3 commissions on personal purchases made in a Licensees’ Gateway
· Level 2 and Level 3 commissions when direct members shop
· Level 3 commissions when indirect members shop
o Sales Commissions (see Sales Commissions)
· Local Listing Subscription
· Level 1 commissions when direct members subscribes to the Local program
· MD License
· Level 1 commissions when direct members purchase an MD Gateway License
o All Commissions are paid via Check from GateNet
· This includes personal shopping done through the Licensees’ Gateway
· Paid by GateNet
Fundraiser
· Cost
o No annual fee
o No monthly fee
o Organization must be recognized by the IRS as a Not-for-Profit or Non-Profit organization
· Activation
o As a security precaution, all members must be verified and activate their accounts before any commissions can be generated or paid. Their accounts will be in a suspended status until they are activated.
· Compensation
o Shopping and Service Commissions (see Shopping and Services)
§ Level 1, Level 2, Level 3 and Level 4 commissions on personal purchases made in Licensees’ Gateway
§ Level 2, Level 3 and Level 4 commissions when direct members shop
§ Level 3 commissions when indirect members shop
§ Level 4 commissions on shopping that occurs in a directly referred/enrolled Gateway
· A Fundraiser only earns L4 commission when it has an unencumbered (nothing higher than a Member between the FR and another FR) fundraiser in its organization that has shopping occur or when it has an unencumbered MD in its organization that has shopping occur. In all other cases L4 roles up. (The same Fundraiser can never earn L3 and L4 on the same transaction)
o Sales Commissions (see Sales Commissions)
§ Local Subscription
· Level 1 and Level 2 commissions when direct members subscribe to the Local program
· Level 2 commissions when direct members of an MD (in the FRs immediate downline) subscribe to the Local program
§ MD License
· Level 1 and Level 2 commissions when direct members purchase an MD Gateway License
· Level 2 commissions when direct members of an MD (in their immediate downline) purchase an MD Gateway License
o All Commissions are paid via Check from GateNet
§ This includes personal shopping done through their Gateway
Regional Marketing Director
· Cost
o $5000 Licensing fee
o $29.95 Monthly maintenance
· Activation
o As a security precaution, all members must be verified and activate their accounts before any commissions can be generated or paid. Their accounts will be in a suspended status until they are activated.
· Compensation
o Shopping and Service Commissions (see Shopping and Services)
§ Level 1, Level 2, Level 3 and Level 4 commissions on personal purchases made in their Gateway
§ Level 2, Level 3 and Level 4 commissions when direct members shop
§ Level 3 commissions when indirect members shop
§ Level 4 commissions on directly referred Gateways
§ Level 5 commissions on indirectly referred Gateways through two levels
Sales Commissions (see Sales Commissions)
§ Local Subscription
· Level 1, Level 2 and Level 3 commissions when direct members subscribe to the Local program
· Level 2 and Level 3 commissions when direct members of an MD (in the RMDs immediate downline) subscribe to the Local program
· Level 3 commissions when direct memebers of an FR (in the RMD’s immediate downline) subscribe to the Local program
· Level 3 commissions when direct members of an MD (thorugh two levels in the RMD’s downline) subscribes to the Local program
§ MD License
· Level 1, Level 2 and Level 3 commissions when direct members purchase an MD Gateway License
· Level 2 commissions when direct members of an MD (in the RMDs immediate downline) purchase an MD Gateway License
· Level 3 commissions when direct memebrs of an MD (through two levels in the RMD’s downline) purchase an MD Gateway License
§ RMD License
· Level 1 commissions when a direct member purchases an RMD Mall License
o All Commissions are paid via Check from GateNet
§ This includes personal shopping done through their own Gateway
National Marketing Director
· Cost
o $25,000 Licensing fee
o $29.95 Monthly maintenance
· Activation
o As a security precaution, all members must be verified and activate their accounts before any commissions can be generated or paid. Their accounts will be in a suspended status until they are activated.
· Compensation
o Shopping and Service Commissions (see Shopping and Services)
§ Level 1, Level 2, Level 3 and Level 4 commissions on purchases made in Mall Owner’s Mall
§ Level 2, Level 3 and Level 4 commissions when direct Shoppers shop
§ Level 3 commissions when referred Shoppers shop
§ Level 4 commissions on directly referred Malls
§ Level 5 commissions on indirectly referred Malls two levels down
§ Level 6 commission on indirectly referred Mall three levels down
o Sales Commissions (see Sales Commissions)
§ Local Subscription
· Level 1, Level 2, Level 3 and Level 4 commissions when direct members subscribe to the Local program
· Level 2, Level 3 and Level 4 commissions when direct members of an MD (in the NMDs immediate downline) subscribe to the Local program
· Level 3 and Level 4 commissions when direct members of an FR (in the NMD’s immediate downline) subscribe to the Local program
· Level 4 commissions when direct members of an RMD (in the NMD’s immediate) subscribe to the Local program
§ MD License
· Level 1, Level 2, Level 3 and Level 4 commissions when direct members purchase an MD Gateway License
· Level 2, Level 3 and Level 4 commissions when direct members of an MD (in the NMDs immediate downline) purchases an MD Gateway License
· Level 3 and Level 4 commissions when direct members of an FR (in the NMD’s immediate downline) purchases an MD Gateway License
· Level 4 commissions when direct members of an RMD (in the NMD’s immediate downline) purchases an MD Gateway License
§ RMD License
· Level 1 commissions when direct members purchases an RMD Gateway License
· NMD bonuses paid on a sliding scale from $100 to $1000 for every subsequent RMD Gateway License sold in a particular period
o All Commissions are paid via Check from GateNet
§ This includes personal shopping done through the Mall Owner’s Mall
· $29.95 Monthly
· Required for all IMRs
· Free for FRs
o Billed by GateNet
o Charged the second month
· First month’s $29.95 is included in the initial Gateway license fee
o Payment is charged 2-3 days before anniversary date via Admin interface.
· Failures before monthly anniversary date generate:
· Email to member notifying them of the failure
· Note in member’s electronic file
· Email to the sponsor. Sensitively written. Letting them know that one of their IMR’s may not be continuing. They should contact them to see what is going on.
· Failure on or after the monthly anniversary date generates:
· Customer status is demoted to Shopper
· Email to customer notifying them of failure and demotion
· Note in member’s electronic file
· Successful monthly payment of the Monthly maintenance generates commissions to up-line of equal or higher status
· No email is sent
Monthly Maintenance Fee Commissions |
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NMD |
NMD*1,2 |
NMD |
||
Monthly Maintenance Fee Paid ($29.95) |
$5 |
$5 |
$5 |
|
*1 – Commissions compress as normal. For example if an RMD pays their monthly maintenance, the first upline NMD gets $5, the second NMD gets $5, the third NMD get’s $5. If there is not an upline NMD, no overrides are paid. |
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*2 – NMDs do not receive $5 on their own bundle purchase |
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Shopping and Services
Rules
· Vendors
o All verified and activated members may shop cash back vendors
o To receive cash back, members must be signed in prior to selecting a vendors store on GreenBackStreet.
Commissions
· Gateway purchases pay six levels of commissions
· When a minimum status requirement is not met by the immediate sponsor of the previously paid position, the sponsorship line is searched, in order, until the minimum status is met and that person is paid for the next position.
o Level (L1) is the point of purchase
o L1, L2, L3, L4, L5 and L6 are set for each individual cash back vendor by GreenBackStreet
o L1, L2, L3, L4, L5, and L6 are either percents or set cash amounts
§ This is based on GreenBackStreet relationship with the vendor
o By default
§ If L1 is expressed as a percent L2, L3, and L4 should be set as percents
§ If L1 is expressed as a dollar amount L2, L3, and L4 should be set as dollar amounts
o At GreenBackStreet’s discretion
§ Individual levels for a particular vendor may be set to a cash amount while others remain a percent or vice versa
o Level percents or cash amounts are set by GreenBackStreet according to the following formulas:
VID |
Vendor ID |
539 |
Determined by Pinnacle back end program. |
VIN |
Vendor Name |
Vname |
Provided by vendor. |
VC |
Vendor Commission |
15% |
Commission the vendor pays Pinnacle. (15% is only an example) |
POC |
Pay Out Commission |
14% |
Variable to be set for each merchant by corporate. Can be set higher than VC. |
PM |
Pinnacle Margin |
1% |
PM = VC – POC |
L6P |
Level 6 Percent |
3% |
Variable set by corporate. Set for each individual vendor. |
L5P |
Level 5 Percent |
6% |
Variable set by corporate. Set for each individual vendor. |
L4P |
Level 4 Percent |
9% |
Variable set by corporate. Set for each individual vendor. |
L3P |
Level 3 Percent |
15% |
Variable set by corporate. Set for each individual vendor. |
L2P |
Level 2 Percent |
6% |
Variable set by corporate. Set for each individual vendor. |
L1P |
Level 1 Percent |
60% |
Variable set by corporate. Set for each individual vendor. |
· When a purchase is entered into the system, the levels are set by the PCI Commissioning component. These levels are set in ascending order – once an activated member of a particular status is set in a level, the next level occupant must be of equal or higher status than the last.
Local Mall and Position Sales Commissions
Sales Commissions*1 *2 *3 |
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MD |
FR |
RMD |
NMD |
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Local Listing sale ($599.95) made by MD |
$100 |
$0 |
$100 |
$100 |
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Local Listing sale ($599.95) made by FR |
$100 |
$100 |
$100 |
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Local Listing sale ($599.95) made by RMD |
$200 |
$100 |
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Local Listing sale ($599.95) made by NMD |
$300 |
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MD Gateway sale ($499.95) made by MD |
$100 |
$0 |
$100 |
$50 |
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MD Gateway sale made by FR ($499.95) |
$50 |
$100 |
$100 |
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MD Gateway sale made by RMD ($499.95) |
$200 |
$50 |
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MD Gateway sale made by NMD ($499.95) |
$250 |
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RMD Sale ($5,000) made by RMD |
$1,000 |
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RMD Sale ($5,000) made by NMD |
$1,000 |
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Regional Marketing Director Sale Bonus |
$100 - $1,000*4 |
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*1 - Nothing is required by the purchaser in order for sales commissions to flow. |
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*2 – Local Listing sales payout changes when sold from a position other than Marketing Director. Compression still occurs. For example, if a Marketing Director sells a Local Listing but there is not a Regional Marketing Director in the upline then the National Marketing Director will receive $200. ($100 + $100). |
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*3 – Marketing Director Gateway sale commissions compress up. For example, if a Marketing Director sells a Marketing Director License and there is not a Regional Marketing Director in the upline, the National Marketing Director receives $150 in sales commissions. ($50 + $100) |
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|
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Local and MD Sales Overrides
Local and MD Sales Overrides |
||||
NMD |
NMD*1 |
NMD |
||
Local Sales*2 |
$20 |
$20 |
$10 |
|
MD Sales*2 |
$20 |
$20 |
$10 |
|
*1 – Commissions compress as normal. For example if an RMD makes a local sale, the first upline NMD receives $20, the second upline NMD receives $20 and the third receives $10. If only one NMD appears in the upline only one override is paid out. |
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*2 – NMDs receive the override even if they make the local or MD sale. |
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Commissions are a pre-defined dollar or percentage amount paid to an activated member on his or her direct and downline commissionable volume. Commissions are any money paid to an Independent Marketing Representative (IMR), Fundraiser (FR), or Member
What generates a Commission: 1. Sales Commission a. Sales Commissions are generated when an IMR application is submitted 2. Shopping a. A shopping commission is generated when a verified and activated member of any type makes a store purchase 3. Services a. A service commission is generated when a verified and activated member of any type purchases a monthly service Commission Qualifications: 1. Must have a verified and activated account 2. Must have a Gateway License 3. IMR’s must maintain their monthly maintenance feeGreenBackStreet Membership Positions:
1. Membero Free
o Verification required
o Activation required
o Free
2. Marketing Director (MD)o $499.95 licensing fee
o $29.95 per month
3. Regional Marketing Director (RMD)o $5,000 licensing fee
o $29.95 per month
4. National Marketing Director (NMD)o $25,000 licensing fee
o $29.95 per month
Membership RankingsMember < Marketing Director < Fundraiser < Regional Marketing Director < National Marketing Director
Terms1. Member – Anyone who has activated in any position in GateNet or GreenBackStreet
2. Shopper – The free position in any Gateway or in GreenBackStreet.com
3. IMR – Independent Marketing representative participating in and managing their GateNet Business; Marketing Director, Regional Marketing Director and National Marketing Director
4. Gateway Licensee – Anyone that had licensed a GreenBackStreet mall
5. Sales Commission – A predetermined monetary amount awarded in cash back to an IMR of a particular level for the sale of a mall license or a Local subscription
All Members
As a security precaution, all members must provide valid contact information, that contact information must be verified and they must activate their accounts before any commissions are generated or received. Their accounts will be in a suspended status until they are verified and activated. This will not hinder the shopper from logging in or browsing the site, however, they will not be able to link to store, shop, purchase services, play games, invite friends, nor generate or receive commissions.
· A member registers by providing a valid email address, username, password, address and phone number
o Users are permitted to register multiple times, but may not refer themselves. If they do, they are subject to termination from the program per the terms and conditions
o The email address and the username must be unique
o Email address is assumed valid because it must be entered twice.
o Activation email is sent immediately to new member
o GreenBackStreet registrations are also accepted on the GateNet recruiting website and require that the member be verified and activate their GreenBackStreet account.
· Members earn cash back rebates on all qualified purchases made in a Gateway
o Cash back rebate amount is based on level 1 commission for the particular merchant they are shopping at (See Shopping and Services)
· Level 1 commissions vary with each merchant
· Level 1 commissions may be expressed in a percent or a set cash amount
· Members earn cash back rebates on directly referred members
o Cash back rebate amount is based on level 2 commissions for the particular merchant that the referred shopper shops at
· Members do not earn cash back rebates on the purchases made by referrals of higher status
· Members receive cash back rebates on directly referred members that use monthly services (see Shopping and Services)
· Cash back rebates are paid to shoppers via Check or PayPal from GreenBackStreet
· Members refer other members by:
o Using the invitations system built into their “My Account” section
· This system sends an email from GreeBackStreet.com on behalf of the member that has the member’s promo number embedded in the link for the prospective member to join OR
· Telling someone to go to www.greenbackstreet.com, register and use their promo number
· Sending someone to the members wildcard site
· Members may participate in games and take advantage of specials and free shipping offers.
Marketing Director
· Cost
o $499.95 Licensing fee
o $29.95 Monthly maintenance
· Activation
o As a security precaution, all members must be verified and activate their accounts before any commissions can be generated or paid. Their accounts will be in a suspended status until they are activated.
· Compensation
o Shopping and Service Commissions (see Shopping and Services)
· Level 1, Level 2 and Level 3 commissions on personal purchases made in a Licensees’ Gateway
· Level 2 and Level 3 commissions when direct members shop
· Level 3 commissions when indirect members shop
o Sales Commissions (see Sales Commissions)
· Local Listing Subscription
· Level 1 commissions when direct members subscribes to the Local program
· MD License
· Level 1 commissions when direct members purchase an MD Gateway License
o All Commissions are paid via Check from GateNet
· This includes personal shopping done through the Licensees’ Gateway
· Paid by GateNet
Fundraiser
· Cost
o No annual fee
o No monthly fee
o Organization must be recognized by the IRS as a Not-for-Profit or Non-Profit organization
· Activation
o As a security precaution, all members must be verified and activate their accounts before any commissions can be generated or paid. Their accounts will be in a suspended status until they are activated.
· Compensation
o Shopping and Service Commissions (see Shopping and Services)
§ Level 1, Level 2, Level 3 and Level 4 commissions on personal purchases made in Licensees’ Gateway
§ Level 2, Level 3 and Level 4 commissions when direct members shop
§ Level 3 commissions when indirect members shop
§ Level 4 commissions on shopping that occurs in a directly referred/enrolled Gateway
· A Fundraiser only earns L4 commission when it has an unencumbered (nothing higher than a Member between the FR and another FR) fundraiser in its organization that has shopping occur or when it has an unencumbered MD in its organization that has shopping occur. In all other cases L4 roles up. (The same Fundraiser can never earn L3 and L4 on the same transaction)
o Sales Commissions (see Sales Commissions)
§ Local Subscription
· Level 1 and Level 2 commissions when direct members subscribe to the Local program
· Level 2 commissions when direct members of an MD (in the FRs immediate downline) subscribe to the Local program
§ MD License
· Level 1 and Level 2 commissions when direct members purchase an MD Gateway License
· Level 2 commissions when direct members of an MD (in their immediate downline) purchase an MD Gateway License
o All Commissions are paid via Check from GateNet
§ This includes personal shopping done through their Gateway
Regional Marketing Director
· Cost
o $5000 Licensing fee
o $29.95 Monthly maintenance
· Activation
o As a security precaution, all members must be verified and activate their accounts before any commissions can be generated or paid. Their accounts will be in a suspended status until they are activated.
· Compensation
o Shopping and Service Commissions (see Shopping and Services)
§ Level 1, Level 2, Level 3 and Level 4 commissions on personal purchases made in their Gateway
§ Level 2, Level 3 and Level 4 commissions when direct members shop
§ Level 3 commissions when indirect members shop
§ Level 4 commissions on directly referred Gateways
§ Level 5 commissions on indirectly referred Gateways through two levels
Sales Commissions (see Sales Commissions)
§ Local Subscription
· Level 1, Level 2 and Level 3 commissions when direct members subscribe to the Local program
· Level 2 and Level 3 commissions when direct members of an MD (in the RMDs immediate downline) subscribe to the Local program
· Level 3 commissions when direct memebers of an FR (in the RMD’s immediate downline) subscribe to the Local program
· Level 3 commissions when direct members of an MD (thorugh two levels in the RMD’s downline) subscribes to the Local program
§ MD License
· Level 1, Level 2 and Level 3 commissions when direct members purchase an MD Gateway License
· Level 2 commissions when direct members of an MD (in the RMDs immediate downline) purchase an MD Gateway License
· Level 3 commissions when direct memebrs of an MD (through two levels in the RMD’s downline) purchase an MD Gateway License
§ RMD License
· Level 1 commissions when a direct member purchases an RMD Mall License
o All Commissions are paid via Check from GateNet
§ This includes personal shopping done through their own Gateway
National Marketing Director
· Cost
o $25,000 Licensing fee
o $29.95 Monthly maintenance
· Activation
o As a security precaution, all members must be verified and activate their accounts before any commissions can be generated or paid. Their accounts will be in a suspended status until they are activated.
· Compensation
o Shopping and Service Commissions (see Shopping and Services)
§ Level 1, Level 2, Level 3 and Level 4 commissions on purchases made in Mall Owner’s Mall
§ Level 2, Level 3 and Level 4 commissions when direct Shoppers shop
§ Level 3 commissions when referred Shoppers shop
§ Level 4 commissions on directly referred Malls
§ Level 5 commissions on indirectly referred Malls two levels down
§ Level 6 commission on indirectly referred Mall three levels down
o Sales Commissions (see Sales Commissions)
§ Local Subscription
· Level 1, Level 2, Level 3 and Level 4 commissions when direct members subscribe to the Local program
· Level 2, Level 3 and Level 4 commissions when direct members of an MD (in the NMDs immediate downline) subscribe to the Local program
· Level 3 and Level 4 commissions when direct members of an FR (in the NMD’s immediate downline) subscribe to the Local program
· Level 4 commissions when direct members of an RMD (in the NMD’s immediate) subscribe to the Local program
§ MD License
· Level 1, Level 2, Level 3 and Level 4 commissions when direct members purchase an MD Gateway License
· Level 2, Level 3 and Level 4 commissions when direct members of an MD (in the NMDs immediate downline) purchases an MD Gateway License
· Level 3 and Level 4 commissions when direct members of an FR (in the NMD’s immediate downline) purchases an MD Gateway License
· Level 4 commissions when direct members of an RMD (in the NMD’s immediate downline) purchases an MD Gateway License
§ RMD License
· Level 1 commissions when direct members purchases an RMD Gateway License
· NMD bonuses paid on a sliding scale from $100 to $1000 for every subsequent RMD Gateway License sold in a particular period
o All Commissions are paid via Check from GateNet
§ This includes personal shopping done through the Mall Owner’s Mall
· $29.95 Monthly
· Required for all IMRs
· Free for FRs
o Billed by GateNet
o Charged the second month
· First month’s $29.95 is included in the initial Gateway license fee
o Payment is charged 2-3 days before anniversary date via Admin interface.
· Failures before monthly anniversary date generate:
· Email to member notifying them of the failure
· Note in member’s electronic file
· Email to the sponsor. Sensitively written. Letting them know that one of their IMR’s may not be continuing. They should contact them to see what is going on.
· Failure on or after the monthly anniversary date generates:
· Customer status is demoted to Shopper
· Email to customer notifying them of failure and demotion
· Note in member’s electronic file
· Successful monthly payment of the Monthly maintenance generates commissions to up-line of equal or higher status
· No email is sent
Monthly Maintenance Fee Commissions |
||||
NMD |
NMD*1,2 |
NMD |
||
Monthly Maintenance Fee Paid ($29.95) |
$5 |
$5 |
$5 |
|
*1 – Commissions compress as normal. For example if an RMD pays their monthly maintenance, the first upline NMD gets $5, the second NMD gets $5, the third NMD get’s $5. If there is not an upline NMD, no overrides are paid. |
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*2 – NMDs do not receive $5 on their own bundle purchase |
||||
Shopping and Services
Rules
· Vendors
o All verified and activated members may shop cash back vendors
o To receive cash back, members must be signed in prior to selecting a vendors store on GreenBackStreet.
Commissions
· Gateway purchases pay six levels of commissions
· When a minimum status requirement is not met by the immediate sponsor of the previously paid position, the sponsorship line is searched, in order, until the minimum status is met and that person is paid for the next position.
o Level (L1) is the point of purchase
o L1, L2, L3, L4, L5 and L6 are set for each individual cash back vendor by GreenBackStreet
o L1, L2, L3, L4, L5, and L6 are either percents or set cash amounts
§ This is based on GreenBackStreet relationship with the vendor
o By default
§ If L1 is expressed as a percent L2, L3, and L4 should be set as percents
§ If L1 is expressed as a dollar amount L2, L3, and L4 should be set as dollar amounts
o At GreenBackStreet’s discretion
§ Individual levels for a particular vendor may be set to a cash amount while others remain a percent or vice versa
o Level percents or cash amounts are set by GreenBackStreet according to the following formulas:
VID |
Vendor ID |
539 |
Determined by Pinnacle back end program. |
VIN |
Vendor Name |
Vname |
Provided by vendor. |
VC |
Vendor Commission |
15% |
Commission the vendor pays Pinnacle. (15% is only an example) |
POC |
Pay Out Commission |
14% |
Variable to be set for each merchant by corporate. Can be set higher than VC. |
PM |
Pinnacle Margin |
1% |
PM = VC – POC |
L6P |
Level 6 Percent |
3% |
Variable set by corporate. Set for each individual vendor. |
L5P |
Level 5 Percent |
6% |
Variable set by corporate. Set for each individual vendor. |
L4P |
Level 4 Percent |
9% |
Variable set by corporate. Set for each individual vendor. |
L3P |
Level 3 Percent |
15% |
Variable set by corporate. Set for each individual vendor. |
L2P |
Level 2 Percent |
6% |
Variable set by corporate. Set for each individual vendor. |
L1P |
Level 1 Percent |
60% |
Variable set by corporate. Set for each individual vendor. |
· When a purchase is entered into the system, the levels are set by the PCI Commissioning component. These levels are set in ascending order – once an activated member of a particular status is set in a level, the next level occupant must be of equal or higher status than the last.
Local Mall and Position Sales Commissions
Sales Commissions*1 *2 *3 |
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MD |
FR |
RMD |
NMD |
|||||||||||||||||||||||||||||||||||||||||||||
Local Listing sale ($599.95) made by MD |
$100 |
$0 |
$100 |
$100 |
||||||||||||||||||||||||||||||||||||||||||||
Local Listing sale ($599.95) made by FR |
$100 |
$100 |
$100 |
|||||||||||||||||||||||||||||||||||||||||||||
Local Listing sale ($599.95) made by RMD |
$200 |
$100 |
||||||||||||||||||||||||||||||||||||||||||||||
Local Listing sale ($599.95) made by NMD |
$300 |
|||||||||||||||||||||||||||||||||||||||||||||||
MD Gateway sale ($499.95) made by MD |
$100 |
$0 |
$100 |
$50 |
||||||||||||||||||||||||||||||||||||||||||||
MD Gateway sale made by FR ($499.95) |
$50 |
$100 |
$100 |
|||||||||||||||||||||||||||||||||||||||||||||
MD Gateway sale made by RMD ($499.95) |
$200 |
$50 |
||||||||||||||||||||||||||||||||||||||||||||||
MD Gateway sale made by NMD ($499.95) |
$250 |
|||||||||||||||||||||||||||||||||||||||||||||||
RMD Sale ($5,000) made by RMD |
$1,000 |
|||||||||||||||||||||||||||||||||||||||||||||||
RMD Sale ($5,000) made by NMD |
$1,000 |
|||||||||||||||||||||||||||||||||||||||||||||||
Regional Marketing Director Sale Bonus |
$100 - $1,000*4 |
|||||||||||||||||||||||||||||||||||||||||||||||
*1 - Nothing is required by the purchaser in order for sales commissions to flow. |
||||||||||||||||||||||||||||||||||||||||||||||||
*2 – Local Listing sales payout changes when sold from a position other than Marketing Director. Compression still occurs. For example, if a Marketing Director sells a Local Listing but there is not a Regional Marketing Director in the upline then the National Marketing Director will receive $200. ($100 + $100). |
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*3 – Marketing Director Gateway sale commissions compress up. For example, if a Marketing Director sells a Marketing Director License and there is not a Regional Marketing Director in the upline, the National Marketing Director receives $150 in sales commissions. ($50 + $100) |
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|
||||||||||||||||||||||||||||||||||||||||||||||||
Local and MD Sales Overrides
Local and MD Sales Overrides |
||||
NMD |
NMD*1 |
NMD |
||
Local Sales*2 |
$20 |
$20 |
$10 |
|
MD Sales*2 |
$20 |
$20 |
$10 |
|
*1 – Commissions compress as normal. For example if an RMD makes a local sale, the first upline NMD receives $20, the second upline NMD receives $20 and the third receives $10. If only one NMD appears in the upline only one override is paid out. |
||||
*2 – NMDs receive the override even if they make the local or MD sale. |
||||
Commissions are a pre-defined dollar or percentage amount paid to an activated member on his or her direct and downline commissionable volume. Commissions are any money paid to an Independent Marketing Representative (IMR), Fundraiser (FR), or Member
What generates a Commission: 1. Sales Commission a. Sales Commissions are generated when an IMR application is submitted 2. Shopping a. A shopping commission is generated when a verified and activated member of any type makes a store purchase 3. Services a. A service commission is generated when a verified and activated member of any type purchases a monthly service Commission Qualifications: 1. Must have a verified and activated account 2. Must have a Gateway License 3. IMR’s must maintain their monthly maintenance feeGreenBackStreet Membership Positions:
1. Membero Free
o Verification required
o Activation required
o Free
2. Marketing Director (MD)o $499.95 licensing fee
o $29.95 per month
3. Regional Marketing Director (RMD)o $5,000 licensing fee
o $29.95 per month
4. National Marketing Director (NMD)o $25,000 licensing fee
o $29.95 per month
Membership RankingsMember < Marketing Director < Fundraiser < Regional Marketing Director < National Marketing Director
Terms1. Member – Anyone who has activated in any position in GateNet or GreenBackStreet
2. Shopper – The free position in any Gateway or in GreenBackStreet.com
3. IMR – Independent Marketing representative participating in and managing their GateNet Business; Marketing Director, Regional Marketing Director and National Marketing Director
4. Gateway Licensee – Anyone that had licensed a GreenBackStreet mall
5. Sales Commission – A predetermined monetary amount awarded in cash back to an IMR of a particular level for the sale of a mall license or a Local subscription
All Members
As a security precaution, all members must provide valid contact information, that contact information must be verified and they must activate their accounts before any commissions are generated or received. Their accounts will be in a suspended status until they are verified and activated. This will not hinder the shopper from logging in or browsing the site, however, they will not be able to link to store, shop, purchase services, play games, invite friends, nor generate or receive commissions.
· A member registers by providing a valid email address, username, password, address and phone number
o Users are permitted to register multiple times, but may not refer themselves. If they do, they are subject to termination from the program per the terms and conditions
o The email address and the username must be unique
o Email address is assumed valid because it must be entered twice.
o Activation email is sent immediately to new member
o GreenBackStreet registrations are also accepted on the GateNet recruiting website and require that the member be verified and activate their GreenBackStreet account.
· Members earn cash back rebates on all qualified purchases made in a Gateway
o Cash back rebate amount is based on level 1 commission for the particular merchant they are shopping at (See Shopping and Services)
· Level 1 commissions vary with each merchant
· Level 1 commissions may be expressed in a percent or a set cash amount
· Members earn cash back rebates on directly referred members
o Cash back rebate amount is based on level 2 commissions for the particular merchant that the referred shopper shops at
· Members do not earn cash back rebates on the purchases made by referrals of higher status
· Members receive cash back rebates on directly referred members that use monthly services (see Shopping and Services)
· Cash back rebates are paid to shoppers via Check or PayPal from GreenBackStreet
· Members refer other members by:
o Using the invitations system built into their “My Account” section
· This system sends an email from GreeBackStreet.com on behalf of the member that has the member’s promo number embedded in the link for the prospective member to join OR
· Telling someone to go to www.greenbackstreet.com, register and use their promo number
· Sending someone to the members wildcard site
· Members may participate in games and take advantage of specials and free shipping offers.
Marketing Director
· Cost
o $499.95 Licensing fee
o $29.95 Monthly maintenance
· Activation
o As a security precaution, all members must be verified and activate their accounts before any commissions can be generated or paid. Their accounts will be in a suspended status until they are activated.
· Compensation
o Shopping and Service Commissions (see Shopping and Services)
· Level 1, Level 2 and Level 3 commissions on personal purchases made in a Licensees’ Gateway
· Level 2 and Level 3 commissions when direct members shop
· Level 3 commissions when indirect members shop
o Sales Commissions (see Sales Commissions)
· Local Listing Subscription
· Level 1 commissions when direct members subscribes to the Local program
· MD License
· Level 1 commissions when direct members purchase an MD Gateway License
o All Commissions are paid via Check from GateNet
· This includes personal shopping done through the Licensees’ Gateway
· Paid by GateNet
Fundraiser
· Cost
o No annual fee
o No monthly fee
o Organization must be recognized by the IRS as a Not-for-Profit or Non-Profit organization
· Activation
o As a security precaution, all members must be verified and activate their accounts before any commissions can be generated or paid. Their accounts will be in a suspended status until they are activated.
· Compensation
o Shopping and Service Commissions (see Shopping and Services)
§ Level 1, Level 2, Level 3 and Level 4 commissions on personal purchases made in Licensees’ Gateway
§ Level 2, Level 3 and Level 4 commissions when direct members shop
§ Level 3 commissions when indirect members shop
§ Level 4 commissions on shopping that occurs in a directly referred/enrolled Gateway
· A Fundraiser only earns L4 commission when it has an unencumbered (nothing higher than a Member between the FR and another FR) fundraiser in its organization that has shopping occur or when it has an unencumbered MD in its organization that has shopping occur. In all other cases L4 roles up. (The same Fundraiser can never earn L3 and L4 on the same transaction)
o Sales Commissions (see Sales Commissions)
§ Local Subscription
· Level 1 and Level 2 commissions when direct members subscribe to the Local program
· Level 2 commissions when direct members of an MD (in the FRs immediate downline) subscribe to the Local program
§ MD License
· Level 1 and Level 2 commissions when direct members purchase an MD Gateway License
· Level 2 commissions when direct members of an MD (in their immediate downline) purchase an MD Gateway License
o All Commissions are paid via Check from GateNet
§ This includes personal shopping done through their Gateway
Regional Marketing Director
· Cost
o $5000 Licensing fee
o $29.95 Monthly maintenance
· Activation
o As a security precaution, all members must be verified and activate their accounts before any commissions can be generated or paid. Their accounts will be in a suspended status until they are activated.
· Compensation
o Shopping and Service Commissions (see Shopping and Services)
§ Level 1, Level 2, Level 3 and Level 4 commissions on personal purchases made in their Gateway
§ Level 2, Level 3 and Level 4 commissions when direct members shop
§ Level 3 commissions when indirect members shop
§ Level 4 commissions on directly referred Gateways
§ Level 5 commissions on indirectly referred Gateways through two levels
Sales Commissions (see Sales Commissions)
§ Local Subscription
· Level 1, Level 2 and Level 3 commissions when direct members subscribe to the Local program
· Level 2 and Level 3 commissions when direct members of an MD (in the RMDs immediate downline) subscribe to the Local program
· Level 3 commissions when direct memebers of an FR (in the RMD’s immediate downline) subscribe to the Local program
· Level 3 commissions when direct members of an MD (thorugh two levels in the RMD’s downline) subscribes to the Local program
§ MD License
· Level 1, Level 2 and Level 3 commissions when direct members purchase an MD Gateway License
· Level 2 commissions when direct members of an MD (in the RMDs immediate downline) purchase an MD Gateway License
· Level 3 commissions when direct memebrs of an MD (through two levels in the RMD’s downline) purchase an MD Gateway License
§ RMD License
· Level 1 commissions when a direct member purchases an RMD Mall License
o All Commissions are paid via Check from GateNet
§ This includes personal shopping done through their own Gateway
National Marketing Director
· Cost
o $25,000 Licensing fee
o $29.95 Monthly maintenance
· Activation
o As a security precaution, all members must be verified and activate their accounts before any commissions can be generated or paid. Their accounts will be in a suspended status until they are activated.
· Compensation
o Shopping and Service Commissions (see Shopping and Services)
§ Level 1, Level 2, Level 3 and Level 4 commissions on purchases made in Mall Owner’s Mall
§ Level 2, Level 3 and Level 4 commissions when direct Shoppers shop
§ Level 3 commissions when referred Shoppers shop
§ Level 4 commissions on directly referred Malls
§ Level 5 commissions on indirectly referred Malls two levels down
§ Level 6 commission on indirectly referred Mall three levels down
o Sales Commissions (see Sales Commissions)
§ Local Subscription
· Level 1, Level 2, Level 3 and Level 4 commissions when direct members subscribe to the Local program
· Level 2, Level 3 and Level 4 commissions when direct members of an MD (in the NMDs immediate downline) subscribe to the Local program
· Level 3 and Level 4 commissions when direct members of an FR (in the NMD’s immediate downline) subscribe to the Local program
· Level 4 commissions when direct members of an RMD (in the NMD’s immediate) subscribe to the Local program
§ MD License
· Level 1, Level 2, Level 3 and Level 4 commissions when direct members purchase an MD Gateway License
· Level 2, Level 3 and Level 4 commissions when direct members of an MD (in the NMDs immediate downline) purchases an MD Gateway License
· Level 3 and Level 4 commissions when direct members of an FR (in the NMD’s immediate downline) purchases an MD Gateway License
· Level 4 commissions when direct members of an RMD (in the NMD’s immediate downline) purchases an MD Gateway License
§ RMD License
· Level 1 commissions when direct members purchases an RMD Gateway License
· NMD bonuses paid on a sliding scale from $100 to $1000 for every subsequent RMD Gateway License sold in a particular period
o All Commissions are paid via Check from GateNet
§ This includes personal shopping done through the Mall Owner’s Mall
· $29.95 Monthly
· Required for all IMRs
· Free for FRs
o Billed by GateNet
o Charged the second month
· First month’s $29.95 is included in the initial Gateway license fee
o Payment is charged 2-3 days before anniversary date via Admin interface.
· Failures before monthly anniversary date generate:
· Email to member notifying them of the failure
· Note in member’s electronic file
· Email to the sponsor. Sensitively written. Letting them know that one of their IMR’s may not be continuing. They should contact them to see what is going on.
· Failure on or after the monthly anniversary date generates:
· Customer status is demoted to Shopper
· Email to customer notifying them of failure and demotion
· Note in member’s electronic file
· Successful monthly payment of the Monthly maintenance generates commissions to up-line of equal or higher status
· No email is sent
Monthly Maintenance Fee Commissions |
||||
NMD |
NMD*1,2 |
NMD |
||
Monthly Maintenance Fee Paid ($29.95) |
$5 |
$5 |
$5 |
|
*1 – Commissions compress as normal. For example if an RMD pays their monthly maintenance, the first upline NMD gets $5, the second NMD gets $5, the third NMD get’s $5. If there is not an upline NMD, no overrides are paid. |
||||
*2 – NMDs do not receive $5 on their own bundle purchase |
||||
Shopping and Services
Rules
· Vendors
o All verified and activated members may shop cash back vendors
o To receive cash back, members must be signed in prior to selecting a vendors store on GreenBackStreet.
Commissions
· Gateway purchases pay six levels of commissions
· When a minimum status requirement is not met by the immediate sponsor of the previously paid position, the sponsorship line is searched, in order, until the minimum status is met and that person is paid for the next position.
o Level (L1) is the point of purchase
o L1, L2, L3, L4, L5 and L6 are set for each individual cash back vendor by GreenBackStreet
o L1, L2, L3, L4, L5, and L6 are either percents or set cash amounts
§ This is based on GreenBackStreet relationship with the vendor
o By default
§ If L1 is expressed as a percent L2, L3, and L4 should be set as percents
§ If L1 is expressed as a dollar amount L2, L3, and L4 should be set as dollar amounts
o At GreenBackStreet’s discretion
§ Individual levels for a particular vendor may be set to a cash amount while others remain a percent or vice versa
o Level percents or cash amounts are set by GreenBackStreet according to the following formulas:
VID |
Vendor ID |
539 |
Determined by Pinnacle back end program. |
VIN |
Vendor Name |
Vname |
Provided by vendor. |
VC |
Vendor Commission |
15% |
Commission the vendor pays Pinnacle. (15% is only an example) |
POC |
Pay Out Commission |
14% |
Variable to be set for each merchant by corporate. Can be set higher than VC. |
PM |
Pinnacle Margin |
1% |
PM = VC – POC |
L6P |
Level 6 Percent |
3% |
Variable set by corporate. Set for each individual vendor. |
L5P |
Level 5 Percent |
6% |
Variable set by corporate. Set for each individual vendor. |
L4P |
Level 4 Percent |
9% |
Variable set by corporate. Set for each individual vendor. |
L3P |
Level 3 Percent |
15% |
Variable set by corporate. Set for each individual vendor. |
L2P |
Level 2 Percent |
6% |
Variable set by corporate. Set for each individual vendor. |
L1P |
Level 1 Percent |
60% |
Variable set by corporate. Set for each individual vendor. |
· When a purchase is entered into the system, the levels are set by the PCI Commissioning component. These levels are set in ascending order – once an activated member of a particular status is set in a level, the next level occupant must be of equal or higher status than the last.
Local Mall and Position Sales Commissions
Sales Commissions*1 *2 *3 |
||||||||||||||||||||||||||||||||||||||||||||||||
MD |
FR |
RMD |
NMD |
|||||||||||||||||||||||||||||||||||||||||||||
Local Listing sale ($599.95) made by MD |
$100 |
$0 |
$100 |
$100 |
||||||||||||||||||||||||||||||||||||||||||||
Local Listing sale ($599.95) made by FR |
$100 |
$100 |
$100 |
|||||||||||||||||||||||||||||||||||||||||||||
Local Listing sale ($599.95) made by RMD |
$200 |
$100 |
||||||||||||||||||||||||||||||||||||||||||||||
Local Listing sale ($599.95) made by NMD |
$300 |
|||||||||||||||||||||||||||||||||||||||||||||||
MD Gateway sale ($499.95) made by MD |
$100 |
$0 |
$100 |
$50 |
||||||||||||||||||||||||||||||||||||||||||||
MD Gateway sale made by FR ($499.95) |
$50 |
$100 |
$100 |
|||||||||||||||||||||||||||||||||||||||||||||
MD Gateway sale made by RMD ($499.95) |
$200 |
$50 |
||||||||||||||||||||||||||||||||||||||||||||||
MD Gateway sale made by NMD ($499.95) |
$250 |
|||||||||||||||||||||||||||||||||||||||||||||||
RMD Sale ($5,000) made by RMD |
$1,000 |
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RMD Sale ($5,000) made by NMD |
$1,000 |
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Regional Marketing Director Sale Bonus |
$100 - $1,000*4 |
|||||||||||||||||||||||||||||||||||||||||||||||
*1 - Nothing is required by the purchaser in order for sales commissions to flow. |
||||||||||||||||||||||||||||||||||||||||||||||||
*2 – Local Listing sales payout changes when sold from a position other than Marketing Director. Compression still occurs. For example, if a Marketing Director sells a Local Listing but there is not a Regional Marketing Director in the upline then the National Marketing Director will receive $200. ($100 + $100). |
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*3 – Marketing Director Gateway sale commissions compress up. For example, if a Marketing Director sells a Marketing Director License and there is not a Regional Marketing Director in the upline, the National Marketing Director receives $150 in sales commissions. ($50 + $100) |
||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||
Local and MD Sales Overrides
Local and MD Sales Overrides |
||||
NMD |
NMD*1 |
NMD |
||
Local Sales*2 |
$20 |
$20 |
$10 |
|
MD Sales*2 |
$20 |
$20 |
$10 |
|
*1 – Commissions compress as normal. For example if an RMD makes a local sale, the first upline NMD receives $20, the second upline NMD receives $20 and the third receives $10. If only one NMD appears in the upline only one override is paid out. |
||||
*2 – NMDs receive the override even if they make the local or MD sale. |
||||
1.1 – Policies and Compensation Plan Incorporated into Representative Agreement
These Policies and Procedures, in their present form and as amended at the sole discretion of GateNet, a division of Pinnacle Communications International, Inc. (hereafter “GateNet” or the “Company”), are incorporated into, and form an integral part of, the GateNet Independent Marketing Representative (“IMR”) Agreement. Throughout these Policies, when the term “Agreement” is used, it collectively refers to the Company Representative Application and Agreement, these Policies and Procedures and the Company Marketing and Compensation Plan. These documents are incorporated by reference into the IMR Agreement (all in their current form and as amended by the Company). It is the responsibility of each Representative to read, understand, adhere to, and ensure that he or she is aware of and operating under the most current version of these Policies and Procedures as updated and amended and published on the Company website. When recruiting or enrolling a new IMR, it is the responsibility of the recruiting IMR to review the most current version of these Policies and Procedures and the Company’s Compensation Plan to the applicant prior to his or her execution of the IMR Agreement via the GateNet website.
1.2 – Purpose of Policies
GateNet is a traditional marketing company that markets products and services through IMRs. It is important to understand that your success and the success of your fellow IMRs are dependent upon the integrity of the men and women who market our products and services. To clearly define the relationship that exists between IMRs and the Company, and to explicitly set a standard for acceptable business conduct, the Company has established the Agreement. The Company’s IMRs are required to comply with all of the Terms and Conditions set forth in the Agreement which the Company may amend at its sole discretion as it sees fit, as well as all federal, state, and local laws governing the Company business and conduct. Because you may be unfamiliar with many of these standards of practice, it is very important that you read and abide by the Agreement. Please review the information in this document carefully. It explains and governs the relationship between you, as an independent contractor and the Company. If you have any questions regarding any policy or rule, do not hesitate to seek an answer from your enrolling IMR, or the Company at support@gatenetmarketing.com.
1.3 – Changes to the Agreement
Because federal, state, and local laws, as well as the business environment, periodically change, the Company reserves the right to amend the Agreement and its prices in its sole and absolute discretion. By signing the IMR Agreement, the IMR applicant agrees to abide by all amendments or modifications that the Company elects to make. Amendments shall be effective upon notice to all Representatives that the Agreement has been modified. Notification of amendments shall be published in official Company materials and on the Company website. The Company shall provide or make available to all IMRs a complete copy of the amended provisions by one or more of the following methods: (1) posting on the Company’s official web site; (2) electronic mail (e-mail); (3) voice mail system broadcast; (4) inclusion in Company periodicals; (5) inclusion in product orders or bonus checks; or (6) special mailings. The continuation of an IMR’s GateNet business or acceptance of profit sharing bonuses or commissions constitutes acceptance of any and all amendments.
1.4 – Delays
The Company shall not be responsible for delays or failures in performance of its obligations when performance is made commercially impracticable due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, riot, war, fire, death, natural disasters, curtailment of a party’s source of supply, or government decrees or orders.
1.5 – Policies and Provisions Severable
If any provision of the Agreement, in its current form or as may be amended, is found to be invalid, or unenforceable for any reason, only the invalid portion(s) of the provision shall be severed and the remaining terms and provisions shall remain in full force and effect and shall be construed as if such invalid, or unenforceable provision never comprised a part of the Agreement.
1.6 – Waiver
The Company never gives up its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of the Company to exercise any right or power under the Agreement or to insist upon strict compliance by an IMR with any obligation or provision of the Agreement, and no custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of the Company’s right to demand exact compliance with the Agreement. Waiver by the Company can be affected only in writing by an authorized officer of the Company. Company’s waiver of any particular breach by a Representative shall not affect or impair Company’s rights with respect to any subsequent breach, nor shall it affect in any way the rights or obligations of any other Representative. Nor shall any delay or omission by the Company to exercise any right arising from a breach affect or impair the Company’s rights as to that or any subsequent breach. The existence of any claim or cause of action of a Representative against the Company shall not constitute a defense to the Company’s enforcement of any term or provision of the Agreement.
Section 2 – Becoming a Representative
To become a Company Representative, each applicant must:
2.1.1 – Be of the age of majority in his/her state of residence usually over the age of 18 years;
2.1.3 – Have a valid Social Security or Federal Tax ID number;
2.1.5 – Submit electronically a completed IMR Application and Agreement to the Company, The Company reserves the right to reject any applications for a new Representative or applications for renewal.
2.2 – No Product or Service Purchase Required
No person is required to sign up for third party services to become an IMR. However, in order to familiarize new IMRs with the Company products, services, sales techniques, sales aids, and other matters, the Company recommends they contact their recruiter.
2.3 – New Representative Registration
Prospective Representatives must submit an application online through their recruiter’s GateNet website or the GateNet website.
2.4 – Representative Benefits
Once an IMR Application and Agreement have been accepted by the Company, the benefits of the Marketing and Compensation Plan and the IMR Agreement are available to the new IMR. These benefits include the right to:
2.5.1 – Sell Company products and services;
2.5.2 – Participate in the Company Marketing and Compensation Plan (receive commissions, if eligible);
2.5.3 – Recruit other individuals as IMRs into the Company business and thereby, build a sales force;
2.5.4 – Receive periodic Company literature and other Company communications;
2.5.5 – Participate in Company-sponsored support, service, and training, upon payment of appropriate charges, if applicable; and
2.5.6 – Participate in promotional and incentive contests and programs sponsored by the Company for its IMRs when available.
2.6 – Term of Agreement
I understand that COMPANY shall deem this Agreement in effect upon its receipt and acceptance by COMPANY. The term of this agreement is for one year. This agreement will be automatically renewed with an annual fee as determined by the Company on or before the anniversary date of the IMR Agreement. Failure to renew after notice has been given will result in any IMR to be demoted to a Free Member position without opportunity to cure, or to provide opportunity for cure, at Company’s discretion.
The IMR must maintain the IMR “Monthly Maintenance” for $29.95 per month. These services remain in force and are paid monthly either by credit or electronic check draft. Cancellation of these services constitutes forfeiture of the IMR status with GateNet and the IMR will be demoted to a Member position.
3.1 – Adherence to the Company Marketing and Compensation Plan
IMRs must adhere to the terms of the Company Compensation Plan as set forth in official Company literature. IMRs shall not offer the Company income opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically set forth in official Company literature. IMRs shall not require or encourage other current or prospective customers or IMRs to participate in the Company in any manner that varies from the program as set forth in official Company literature. IMRs shall not require or encourage other current or prospective customers or IMRs to execute any agreement or contract other than official Company agreements and contracts in order to become a Company IMR. Similarly, IMRs shall not require or encourage other current or prospective customers or IMRs to make any purchase from, or payment to, any individual or other entity to participate in the GateNet Compensation Plan other than those purchases or payments identified as recommended or required in official Company literature.
3.2 – Advertising
IMRs are encouraged to use the marketing materials created by the Companyand understand and agree that any marketing materials created by an IMR for purpose of personal advertising must be submitted to the Company and approved before use. Any materials used that have not been approved by the Company will constitute a violation of the IMR agreement and is grounds for termination. Submit materials for approval to support@gatenetmarketing.com.
3.2.1 – General
All IMRs shall safeguard and promote the good reputation of the Company and its products. The marketing and promotion of GateNet, the business program, the Compensation Plan, and Company products and services shall be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices. To promote both the products and services, and the marketing program the Company offers, IMRs must use the sales aids and support materials produced by the Company and no others. The rationale behind this requirement is simple. The Company has carefully designed its products, product labels, Compensation Plan, and promotional materials to ensure that each aspect of the Company is fair, truthful, and substantiated. If IMRs were allowed to develop their own sales aids and promotional materials (which includes Internet advertising), notwithstanding their integrity and good intentions, the likelihood that they would unintentionally violate any number of statutes or regulations affecting a GateNet business is almost certain. These violations, although they may be relatively few, would jeopardize the GateNet marketing program for all IMRs. Materials, other than those provided by the Company, must have the prior approval of the Company’s marketing department.
3.2.2 – IMR Web Sites
If an IMR desires to utilize an Internet web page to promote his or her business, he or she may do so through the Company’s official web site, using official Company replicated websites (created and maintained by the Company), and only with the express written permission of the Company.
3.2.3 – Domain Names
IMRs may not use or attempt to register any of the Company’s trade names, trademarks, service names, service marks, product names, the Company’s name, or any derivative thereof, for any Internet domain name. This includes, but is not limited to the use of GateNet, Pinnacle or GreenBackStreet.
3.2.4 – Trademarks and Copyrights
The Company will not allow the use of its trade names, trademarks, designs, or symbols by any person, including a Company IMRs, without its prior, written permission. IMRs may not produce for sale or distribution any recorded Company events and speeches without written permission from Company nor may IMRs reproduce for sale or for personal use any recording of Company-produced audio or video tape presentations.
3.2.5 – Media and Media Inquiries
IMRs must not attempt to respond to media inquiries regarding the Company, its products or services, or their independent GateNet business. All inquiries by any type of media must be immediately referred to Company’s Legal Department. This policy is designed to assure that accurate and consistent information is provided to the public as well as a proper public image.
3.2.6 – Spamming and Unsolicited Faxes
IMRs may not use or transmit unsolicited faxes, mass e-mail distribution, unsolicited e-mail, or “spamming” as determined by the Can – Spam Act 2003
• Fraudulent Enrollments Prohibited
Fraudulent enrollment is prohibited. "Fraudulent enrollment" includes: (a) the enrollment of individuals or entities without the knowledge of and/or execution of an Independent Marketing Representative Application and Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as an IMR or Customer; (c) the enrollment or attempted enrollment of non-existent individuals or entities as IMRs or Customers (“phantoms”); (d) the use of a credit card by or on behalf of an IMR or Customer when the IMR or Customer is not the account holder of such credit card; (e) Purchasing Company merchandise or services on behalf of another IMR or Customer, or under another IMR’s or Customer’s I.D. number, to qualify for commissions or bonuses .
• Business Entities
A corporation, LLC, LLP, partnership or trust (collectively referred to in this section as a “Business Entity”) may apply to be a Company IMR by submitting its federal tax ID number. A GateNet business may change its status under the same recruiter from an individual to a partnership, corporation or trust, or from one type of entity to another. Members of the entity are jointly and severally liable for any indebtedness or other obligation to the Company.
3.5 – Changes to a GateNet Business
3.5.1 – General
Each IMR must immediately notify the Company of all changes to the information contained on his or her IMR Application and Agreement. IMRs may modify their existing IMR Agreement (i.e., change Social Security number, or change the form of ownership from an individual proprietorship to a business entity owned by the IMR) by submitting a written request, a properly executed IMR Application and Agreement, and appropriate supporting documentation. There is a $25.00 fee for each change requested, which must be included with the written request. Company requests that these changes be limited to one per year.
3.5.2 – Addition of Co-Applicants
When adding a co-applicant (either an individual or a business entity) to an existing GateNet business, the Company requires a written request as well as a properly completed IMR Application and Agreement containing the applicant and co-applicant’s Social Security Numbers and signatures. To prevent the circumvention of Section 3.22 (regarding transfers and assignments of a GateNet business), the original applicant must remain as a party to the original IMR Application and Agreement. If the original IMR wants to terminate his or her relationship with the Company, he or she must transfer or assign his or her GateNet business in accordance with Section 3.22. If this process is not followed, the GateNet business will be canceled upon the withdrawal of the original IMR. All bonus and commission checks will be sent to the address of record of the original IMR. Please note that the modifications permitted within the scope of this paragraph do not include a change of recruiter. Changes of recruiter are addressed in Section 3.5.3, below. There is a $25.00 fee for each change requested, which must be included with the written request and the completed IMR Application and Agreement. Company may, at its discretion, require notarized documents before implementing any changes to a GateNet business. Please allow 30-days after the receipt of the request by Company for processing.
3.5.3 – Change of Recruiter – Cancellation and Re-Application
The only way an IMR may legitimately change organizations is by voluntarily canceling his or her GateNet business. The former IMR may reapply under a new recruiter.
3.6 – Unauthorized Claims and Actions
3.6.1 – Indemnification
An IMR is fully responsible for all of his or her verbal and written statements made regarding Company products, services, and the Marketing and Compensation Plan, which are not expressly contained, in official Company materials. IMRs agree to indemnify the Company and the Company’s directors, officers, employees, and agents, and hold them harmless from any and all liability including judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred by the Company as a result of the IMR’s unauthorized representations or actions. This provision shall survive the termination of the IMR Agreement.
3.6.2 – Product Claims
No claims about Company products or services may be made except those contained in official Company literature.
3.6.3 – Income Claims Prohibited
At GateNet, we firmly believe that the Company income potential is great enough to be highly attractive, without exaggeration. Moreover, the Federal Trade Commission and several states have laws or regulations that regulate or even prohibit certain types of income claims and testimonials made by persons engaged in marketing. While IMRs may believe it beneficial to provide copies of checks, or to disclose the earnings of themselves or others, such approaches have legal consequences that can negatively impact the Company as well as the IMR making the claim unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation. Because Company IMRs do not have the data necessary to comply with the legal requirements for making income claims, an IMR, when presenting or discussing the GateNet marketing program or Compensation Plan to a prospective IMR, may not make income projections, income claims, or disclose his or her GateNet income (including the showing of checks, copies of checks, bank statements, or tax records).
3.7 – Conflicts of Interest
3.7.1 – Non-solicitation
As an independent marketing representative, Company IMRs can participate in other marketing business ventures or marketing opportunities. However, during the term of this Agreement, IMRs may not recruit other GateNet IMRs or Customers for any other marketing business.
IMRs must not sell, or attempt to sell, any competing non-GateNet products or services to GateNet Customers or IMRs. Any products or services in the same generic category as a GateNet product or service is deemed to be competing (e.g., any telephone or internet service is in the same generic category as GateNet’s products, and is therefore a competing product, regardless of differences in area coverage, cost, or method of delivery. IMRs may not display GateNet products or services with any other products or services in a fashion that might in any way confuse or mislead a prospective customer or IMR into believing there is a relationship between the GateNet and non-GateNet products or services. IMRs may not offer the GateNet marketing program, products or services to prospective or existing Customers or IMRs in conjunction with any non-GateNet program, opportunity, product or service. IMRs may not offer any non-GateNet income opportunity, products or services at any GateNet-related meeting, seminar or convention, or immediately following such event.
3.7.2 – Sales Reports
Sales Reports are available for IMR access and viewing at the Company’s official GateNet website. IMR access to their Reports is password protected. All Reports and the information contained therein are confidential and constitute proprietary information and business trade secrets belonging to the Company. Sales reports are provided to IMRs in strictest confidence and are made available to GateNet IMRs who maintain their Monthly Maintenance and for the sole purpose of assisting IMRs in working with their respective sales force in the development of their GateNet business. IMRs should use their reports to assist, motivate, and train their IMRs. The IMR and Company agree that, where it not for this agreement of confidentiality and nondisclosure, the Company would not provide Sales Force reports to the IMR. An IMR shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation or other entity:
3.7.2.1 – Directly or indirectly disclose any information contained in any report to any third party;
3.7.2.2 – Directly or indirectly disclose the password or other access code to his or her report;
3.8.2.3 – Use the information to compete with the Company or for any purpose other than promoting his or her GateNet business;
3.7.2.4 – Recruit or solicit any IMR or Customer of GateNet listed on any report, or in any manner attempt to influence or induce any IMR or Customer of GateNet, to alter their business relationship with the Company; or
3.7.2.5 – Use or disclose to any person, partnership, association, corporation, or other entity any information contained in any sales force report. Upon demand by the Company, any current or former IMR will return the original and all copies of reports to the Company.
3.7.3 – Direct contact with any Company supplier is forbidden. All contacts with suppliers for any reason must be made through and by the Company. An IMR shall make no false or misleading statements concerning these relationships and understands that doing so may immediately jeopardize his/her status and relationship with the Company, and is grounds for immediate termination. Any IMR who contacts or contracts with any Company service provider and/or partner merchant for the purpose of providing products, programs or services directly to registered members, customers and/or independent contractors of the Company will be terminated from the Company, immediately and forfeit any and all commission income and all rights thereto
3.8 – Enrolling Restrictions:
A partnership, corporation, limited liability company, or similar entity may become an IMR. While an IMR may enter the compensation plan in more than one position, no IMR may enroll himself/herself, or any immediate family members, nor may any IMR enroll another partnership, corporation, limited liability Company, or other entity owned or controlled directly or indirectly by the IMR. Married couples are encouraged to operate as a single IMR. Both spouses may choose to operate independently. One spouse enrolling the other is prohibited as the practice can unfairly affect commissions to the IMR’s recruiter. If an IMR chooses to have more than one position, each position will earn commission and bonuses per the terms and conditions of Company’s compensation plan. Company will credit purchases, earnings, and commissions to the enroller of each individual position.
3.9 – Errors or Questions
If an IMR has questions about or believes any errors have been made regarding commissions, bonuses, sales force reports, or charges, the IMR must notify GateNet’s IMR Support at support@gatenetmarketing.com in writing within sixty (60) days of the date of the purported error or incident in question. The Company will not be responsible for any errors, omissions or problems not reported to the Company within sixty (60) days.
3.10 – Governmental Approval or Endorsement
Neither federal nor state regulatory agencies or officials approve or endorse any direct selling or network marketing companies or programs. Therefore, IMRs shall not represent or imply that GateNet’s Compensation Plan, or its products have been "approved," “endorsed" or otherwise sanctioned by any government agency.
3.11 – Identification
All IMRs are required to provide their Social Security Number or a Federal Employer Identification Number to the Company on the IMR Application and Agreement. Upon enrollment, the Company will provide a unique IMR Identification Number to the IMR by which he or she will be identified. This number will be used to place orders, and track commissions and bonuses.
3.12 – Income Taxes
Each IMR is responsible for paying local, state, and federal taxes on any income generated as an Independent IMR. If a GateNet business is tax exempt, the Federal tax identification number must be provided to the Company. Every year, the Company will provide an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U.S. resident who had earnings of over $600 in the previous calendar year.
3.13 – Independent Contractor Status
IMRs are independent contractors, and are not purchasers of a franchise or an income opportunity. The agreement between the Company and its IMRs does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the IMR. IMRs shall not be treated as an employee for his or her services or for Federal or State tax purposes. All IMRs are responsible for paying local, state, and federal taxes due from all compensation earned as an IMR of the Company. The IMR has no authority (expressed or implied), to bind the Company to any obligation. Each IMR shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the IMR Agreement, these Policies and Procedures, and applicable laws. The name GateNet and other names as may be adopted by the Company are proprietary trade names, trademarks and service marks of the Company. As such, these marks are of great value to the Company and are supplied to IMRs for their use only in an expressly authorized manner. Use of Company name on any item not produced by the Company is prohibited except as follows:
IMRs may list themselves as a “GateNet Independent Marketing Representative” in the white or yellow pages of the telephone directory under their own name. No IMR may place telephone directory display ads using the Company’s name or logo. IMRs may not answer the telephone by saying “GateNet”, or “Pinnacle”, or “GreenBackStreet” or in any other manner that would lead the caller to believe that he or she has reached corporate offices of the Company. No IMR may use GateNet or any of the Company’s registered trademarks or logos in their personal e-mail addresses or web addresses.
3.14 – Insurance
You may wish to arrange insurance coverage for your business, as the Company does not provide property or liability insurance coverage for IMRs. Your current homeowner’s insurance policy may not cover business-related injuries or the theft of or damage to inventory or business equipment. Contact your insurance agent to make certain that your business property is protected. This can often be accomplished with a simple “Business Pursuit” endorsement attached to your present homeowner’s policy.
3.15 – International Marketing
Because of critical legal and tax considerations, the Company must limit the resale of Company products and services, and the presentation of the GateNet business to prospective customers and IMRs located within the United States and U.S. Territories and those countries that Company has officially announced are open for business.
3.16 – Adherence to Laws and Ordinances
3.16.1 – Local Ordinances
Many cities and counties have laws regulating certain home-based businesses. In most cases these ordinances are not applicable to IMRs because of the nature of their business. However, IMRs must obey those laws that do apply to them. If a city or county official tells an IMR that an ordinance applies to him or her, the IMR shall send a copy of the ordinance to the Compliance Department of GateNet. In most cases there are exceptions to the ordinance that may apply to Company IMRs.
3.16.2 – Compliance with Federal, State, Local Laws
IMRs shall comply with all federal, state, and local laws and regulations in the conduct of their businesses.
3.17 – Minors
A person who is recognized as a minor in his/her state of residence may not be a Company IMR. IMRs shall not enroll or recruit minors into the GateNet program.
3.18.1 – Actions of Household Members or Affiliated Individuals
If any member of an IMR’s immediate household engages in any activity, which, if performed by the IMR, would violate any provision of the Agreement, such activity will be deemed a violation by the IMR and the Company may take disciplinary action pursuant to the statement of policies in the Policies and Procedures against the IMR. Similarly, if any individual associated in any way with a corporation, partnership, trust or other entity (collectively “affiliated individual”) violates the Agreement, such action(s) will be deemed a violation by the entity, and the Company may take disciplinary action against the entity.
3.19 – Sale , Transfer or Assignment of GateNet Business
Although a GateNet business is a privately owned, independently operated business, the sale, transfer or assignment of a GateNet business is subject to certain limitations. If an IMR wishes to sell his or her GateNet business, the following criteria must be met:
3.19.1 – Protection of the existing line of sponsorship must always be maintained so that the GateNet business continues to be operated in that line of sponsorship.
3.19.2 – The buyer or transferee must be (or must become) a qualified Company IMR. If the buyer is an active Company IMR, he or she must first terminate his or her GateNet business simultaneously with the purchase, transfer, assignment or acquisition of any interest in the new GateNet business.
3.19.3 – Before the sale, transfer or assignment can be finalized and approved by the Company, any debt obligations the selling IMR has with the Company must be satisfied.
3.19.4 – The selling IMR must be in good standing and not in violation of any of the terms of the Agreement in order to be eligible to sell, transfer or assign a GateNet business. Prior to selling a GateNet business, the selling IMR must notify the Company’s Legal Department, in writing, of his or her intent to sell the GateNet business. No changes in line of sponsorship can result from the sale or transfer of a GateNet business.
3.20 – Separation of a GateNet Business
Company IMRs sometimes operate their GateNet businesses as husband-wife partnerships, partnerships, LLCs, LLPs, corporations, or trusts. At such time as a marriage may end in divorce or a corporation, partnership or trust (the latter three entities are collectively referred to herein as “entities”) may dissolve, arrangements must be made to assure that any separation or division of the GateNet business is accomplished so as not to adversely affect the interests and income of other GateNet businesses up or down the line of sponsorship. If the separating parties fail to provide for the best interests of other IMRs and the Company, the Company will involuntarily terminate the IMR’s Agreement. During the pendency of a divorce or entity dissolution, the parties must adopt one of the following methods of operation:
3.20.1 – One of the parties may, with consent of the other(s), operate the GateNet business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees authorize the Company to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee.
3.20.2 – The parties may continue to operate the GateNet business jointly on a “business-as-usual” basis, whereupon all compensation paid by the Company will be paid according to the status quo as it existed prior to the Company’s receipt of notice of the divorce or dissolution proceeding. This is the default procedure. Under no circumstances will the sales force of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will the Company split commission and bonus checks between divorcing spouses or members of dissolving entities. The Company will recognize only one sales force and will issue only one commission check per GateNet business per commission cycle. Commission checks shall always be issued to the same individual or entity. In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the GateNet business, the IMR Agreement shall be involuntarily canceled. If a former spouse has completely relinquished all rights in their original GateNet business, they are thereafter free to enroll under any recruiter of their choosing. In such case, however, the former spouse or partner shall have no rights to any IMRs in their former sales force or to any former retail customer. They must develop their new GateNet business in the same manner, as would any other new IMR
3.21 – Succession
Upon the death or incapacitation of an IMR, his or her GateNet business may be passed to his or her heirs. Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper. Accordingly, an IMR should consult an attorney to assist him or her in the preparation of a will or other testamentary instrument. Whenever a GateNet business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased IMR’s sales force provided the following qualifications are met. The successor(s) must:
3.21.1 – Execute an IMR Agreement;
3.21.2 – Comply with terms and provisions of the Agreement; and
3.21.3 – Meet all of the qualifications for the deceased IMR’s status.
3.21.4 – Bonus and commission checks of a GateNet business transferred pursuant to this section will be paid in a single check jointly to the devisees. The devisees must provide the Company with an “address of record” to which all bonus and commission checks will be sent;
3.21.5 – If the GateNet business is bequeathed to joint devisees, they must form a business entity and acquire a federal taxpayer identification number. The Company will issue all bonus and commission checks and one 1099 to the business entity.
3.22 – Transfer Upon Death of an IMR
To effect a testamentary transfer of a GateNet business, the successor must provide the following to the Company: (1) an original death certificate; (2) a notarized copy of the will or other instrument establishing the successor’s right to the GateNet business; and (3) a completed and executed IMR Agreement.
3.23 – Transfer Upon Incapacitation of an IMR
To effect a transfer of a GateNet business because of incapacity, the successor must provide the following to the Company: (1) a notarized copy of an appointment as trustee; (2) a notarized copy of the trust document or other documentation establishing the trustee’s right to administer the GateNet business; and (3) a completed IMR Agreement executed by the trustee.
3.24 – Telephone Solicitation and Cold Calling
IMRs agree that they shall comply with all rules, regulations and policies of the Federal Communications Commission (FCC) when telephoning individuals and businesses in their marketing efforts to build their GateNet business, either by enrolling new customers or IMRs or selling services offered on the GreenBackStreet shopping mall. In addition, if IMRs use automatic telephone dialing systems relative to the operation of their GateNet businesses, they MUST also adhere to the rules, regulations and policies of the FCC. Failure to comply is grounds for termination.
4.1 – Change of Address or Telephone
To ensure timely delivery of products, support materials, and commission checks, it is critically important that the Company’s files are current. IMRs planning to move should update their Contact Info on the GateNet website. Failure to update a change of address could cause a commission check(s) to be lost in the mail. In the event a check is lost, there is a 10-business day waiting period before the Company can place a stop payment on the check. A stop payment fee of $30 will be charged the IMR to have it re-issued. The Company is not responsible for any bank fees that the IMR may be charged from their bank if the IMR attempts to cash or deposit the original commission check(s).
4.2 – Continuing Development Obligations
4.2.1 – Ongoing Training
Any IMR who recruits another IMR into the Company must perform bona fide assistance and training function to ensure that his or her IMR sales team member is properly operating his or her GateNet business. An IMR is responsible for their own business building and is responsible to provide support to Fundraisers unless otherwise informed in writing to the company. If recruiting other IMRs you are responsible to train new IMRs in Company product knowledge, effective sales techniques, the Company Compensation Plan, and compliance with Company Policies and Procedures. Most IMR training will be available online. IMRs must monitor the IMRs in their sales force to ensure that their IMRs do not make improper product or business claims, or engage in any illegal or inappropriate conduct.
4.2.2 – Ongoing Sales Responsibilities
Regardless of their level of achievement, IMRs have an ongoing obligation to continue to personally promote sales through the generation of new customers and through servicing their existing customers.
4.3 – Non-disparagement
The Company wants to provide its IMRs with the best products, compensation plan, and services in the industry. Accordingly, we value your constructive criticisms and comments. All such comments should be submitted in writing and addressed to the Company’s Manager of the Network Marketing Business Development. E-mails may be addressed to support@gatenetmarketing.com. IMRs must not disparage, demean, or make negative remarks about the Company, other Company IMRs, Company’s products, the Compensation Plan, or Company’s directors, officers, or employees. In the event IMRs have contact with anyone at the Company for any reason, the Company expects full cooperation, and IMRs are not to use vulgar language, threaten or demean in any way the Company IMR calling. Doing so will be grounds for immediate termination.
4.4 – Reporting Policy Violations
IMRs observing a Policy violation by another IMR should submit a written report of the violation directly to the attention of the Company’s Legal Department. Details of the incidents such as dates, number of occurrences, persons involved, and any supporting documentation should be included in the report.
5.1 – No Exclusive Territories
There are no exclusive territories granted to anyone. No franchise fees are required.
6.1 – Commission Qualifications
The Company pays a monthly commission on the billing of an IMR’s personal service customers for as long as those services remain in force through the Company and the IMR remains in good standing, and other commissions in accordance with the Company’s current compensation plan. Commissions are based on the sale of products and services to subscribers. The link provided to the GateNet Compensation Plan is the only compensation plan that the Company recognizes. GateNet is solely responsible for paying all monies referred to in the compensation plan. An IMR must be active, qualified, and in compliance with the Agreement to qualify for bonuses and commissions. So long as an IMR complies with the terms of the Agreement, the Company shall pay commissions to such IMR in accordance with the Compensation Plan.
The minimum amount for which the Company will issue a check is $15.00. If an IMR’s commissions do not equal or exceed $15.00 the Company will accrue the commissions and bonuses until they total $15.00. A check will be issued once $15.00 has been accrued. I understand that I must maintain the IMR Monthly Maintenance. The Monthly Maintenance remains in force and is paid monthly either by credit or checking account draft. I understand that cancellation of the Monthly Maintenance constitutes forfeiture of my IMR status with the Company. Commissions will be paid on or around the 15th of every month. When the 15th falls on a Saturday, Sunday, or holiday, commission payments will be processed on the first business day following the 15th. Cash Back payments will be issued with in seven (7) business days after being processed.
6.2 – Adjustment to Commissions
6.2.1 – Purchase of GateNet Merchandise
If an IMR places an order for Company merchandise, and the credit card used to pay for the merchandise is rejected, the Company will make one attempt either by telephone or email to obtain good payment information. If the Company is unable to obtain good payment information, 100% of the cost of the order plus shipping and handling will be withheld from the next commission check earned by the IMR. If the amount of the commission check is not enough to cover the entire order, the Company will continue to withhold from subsequent commission checks until the amount owed is paid in full.
6.2.2 – Other Deductions
If the IMR has signed up for any of the Company’s services, and fails to pay their monthly Company invoice by the due date set out on the invoice, the Company reserves the right to take all or whatever portion of their commission check and/or all or whatever portion of any refund due is necessary in order to pay that invoice even if the entire commission check does not fully cover the invoiced amount.
6.3 – Unclaimed Commissions and Credits
IMRs must deposit or cash commission and bonus checks within six months from their date of issuance. A check that remains un-cashed after six months will be void.
6.4 – Reassignment of Sales Force of terminated IMR
If an IMR’s GateNet business is cancelled for any reason, the commissions generated by the non-qualifying IMR and his/her customers will default to the first qualified IMR above.
6.5 – Reports
All information provided by the Company in online sales force reports, including but not limited to personal and group sales volume (or any part thereof), and sales force enrollment activity is believed to be accurate and reliable. Nevertheless, due to various factors including the inherent possibility of human and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and electronic check payments; cancelled services; credit card and electronic check charge-backs; the information is not guaranteed by the Company or any persons creating or transmitting the information. ALL PERSONAL AND GROUP SALES VOLUME INFORMATION IS PROVIDED "AS IS" WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OR REPRESENTATIONS OF ANY KIND WHATSOEVER. IN PARTICULAR BUT WITHOUT LIMITATION THERE SHALL BE NO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR NON-INFRINGEMENT. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, GATENET AND/OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY DISTRIBUTOR OR ANYONE ELSE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO PERSONAL AND GROUP SALES VOLUME INFORMATION (INCLUDING BUT NOT LIMITED TO LOST PROFITS, BONUSES, OR COMMISSIONS, LOSS OF OPPORTUNITY, AND DAMAGES THAT MAY RESULT FROM INACCURACY, INCOMPLETENESS, INCONVENIENCE, DELAY, OR LOSS OF THE USE OF THE INFORMATION), EVEN IF GATENET OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. TO THE FULLEST EXTENT PERMITTED BY LAW, GATENET OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE NO RESPONSIBILITY OR LIABILITY TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY OR OTHER THEORY WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO.
Access to and use of the Company’s online reporting services and your reliance upon such information are at your own risk. All such information is provided to you "as is". If you are dissatisfied with the accuracy or quality of the information, your sole and exclusive remedy is to discontinue use of and access to the Company’s online reporting services and your reliance upon the information.
7.1 – Disciplinary Sanctions
Violation of the Agreement, these Policies and Procedures, or any illegal, fraudulent, deceptive or unethical business conduct by an IMR may result, at the Company’s discretion, in one or more of the following corrective measures:
7.1.1 – Issuance of a written warning or admonition;
7.1.2 – Require the IMR to take immediate corrective measures;
7.1.3 – Imposition of a fine, which may be withheld from bonus and commission checks;
7.1.4 – Loss of rights to one or more bonus and commission checks;
7.1.5 – The Company may withhold from an IMR all or part of the IMR’s bonuses and commissions during the period that the Company is investigating any conduct allegedly violative of the Agreement. If an IMR’s GateNet business is canceled for disciplinary reasons, the IMR will not be entitled to recover any commissions withheld during the investigation period.
7.1.6 – Suspension of the individual’s IMR Agreement for one or more pay periods.
7.1.7 – Involuntary termination of the offender’s IMR Agreement;
7.1.8 – Any other measure expressly allowed within any provision of the Agreement or which the Company deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the IMR’s policy violation or contractual breach.
7.1.9 – In situations deemed appropriate by the Company, the Company may institute legal proceedings for monetary and/or equitable relief.
7.2 – Grievances and Complaints
When an IMR has a grievance or complaint with another IMR regarding any practice or conduct in relationship to their respective GateNet businesses, the complaining IMR should first report the problem to his or her enrolling IMR who should review the matter and try to resolve it with the other party’s enlisting IMR. If the matter cannot be resolved, it must be reported in writing to the Legal Department at the Company. The Legal Department will review the facts and attempt to resolve it.
8.1 – Returned Checks
All checks returned by an IMR’s bank for insufficient funds will be re-submitted for payment. A $30.00 returned check fee will be charged to the account of the IMR. After receiving a returned check from a customer or an IMR, Any outstanding balance owed to the Company by an IMR for NSF checks and returned check fees will be withheld from subsequent bonus and commission checks. An IMR fee that is paid by check that subsequently is insufficient will cause the IMR to be suspended immediately. If after a two-week period the insufficient check amount and the returned check fee set out above are not cured, the IMR will be terminated.
8.2 – Restrictions on Third Party Use of Credit Cards and Checking Account Access
IMRs shall not permit other IMRs or customers to use his or her credit card, or permit debits to their checking accounts, to enroll or to make purchases from the Company.
8.3 – Chargebacks on Credit Card Transactions
If an IMR pays his IMR fee with a credit card and subsequently charges back that amount, the IMR is no longer in good standing, and the Company will automatically terminate the IMR Agreement. There will be a $30.00 assessed for any chargeback.
8.4 – Check and EFT Processing Fee
A fee of $3 per check or Electronic Funds Transfer (“EFT”) will be deducted from an IMRs commission checks for each commission check.
9.1 – Effect of Cancellation
So long as an IMR remains active and complies with the terms of the IMR Agreement and these Policies and Procedures, the Company shall pay commissions to such IMR in accordance with the Compensation Plan. An IMR’s bonuses and commissions constitute the entire consideration for the IMR’s efforts in generating sales and all activities related to generating sales (including building a sales force). Following an IMR’s non-renewal of his or her IMR Agreement, cancellation for inactivity, or voluntary or involuntary cancellation of his or her IMR Agreement (all of these methods are collectively referred to as “cancellation”), the former IMR shall have no right, title, claim or interest to the sales force which he or she operated, or any commission or bonus from the sales generated by the sales force other than that of a Member. An IMR whose GateNet business is cancelled will permanently lose all rights as an IMR. This includes the right to sell Company products and services and the right to receive future commissions, bonuses, or other income resulting from the sales and other activities of the IMR’s former sales force. In the event of cancellation, IMRs agree to waive all rights they may have, including but not limited to property rights, to their former sales force and to any bonuses, commissions or other remuneration derived from the sales and other activities of his or her former sales force. Following an IMR’s cancellation of his or her IMR Agreement, the former IMR shall not hold himself or herself out as a GateNet IMR and shall not have the right to sell Company products or services. An IMR whose IMR Agreement is cancelled shall receive commissions and bonuses only for the last full pay period he or she was active prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).
9.2 – Involuntary Cancellation
An IMR’s violation of any of the terms of the Agreement, including any amendments that may be made by the Company in its sole discretion, may result in any of the sanctions listed in Section 8.1, including the involuntary cancellation of his or her IMR Agreement. Cancellation shall be effective on the date on which written notice is mailed, faxed, or delivered to an express courier, to the IMR’s last known address (or fax number), or to his/her attorney, or when the IMR receives actual notice of cancellation, whichever occurs first.
9.3 – Voluntary Cancellation
A participant in this traditional marketing plan has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the Company at its principal business address. The written notice must include the IMR’s signature, printed name, address, and IMR I.D. Number. You will not be entitled to a refund of all or part of amounts already paid by you; all charges are non-refundable.
9.4 – Non-renewal
An IMR may also voluntarily cancel his or her IMR Agreement by failing to renew the Agreement on its anniversary date. The Company may also elect not to renew an IMR’s Agreement upon its anniversary date.
9.5 – Montana Residents
A Montana resident may cancel his or her IMR Agreement within 15 days from the date of enrollment, and may return his or her starter kit for a full refund within such time period.
Active Customer or Shopper – A customer (shopper) who registers with the Company and has made a purchase of goods or services.
Active IMR – An IMR who is in good standing.
Agreement – The contract between the Company and each IMR includes the IMR Application and Agreement, the GateNet Policies and Procedures, the GateNet Compensation Plan, and the Business Entity Form (where appropriate), all in their current form and as amended by the Company in its sole discretion. These documents are collectively referred to as the “Agreement.”
Cancel — The termination of an IMR’s GateNet business. Cancellation may be either voluntary, involuntary, or through non-renewal.
Commissionable Products/Services— All Company products and services on which commissions and bonuses are paid. Sales aids are not commissionable products.
Company — The term “Company” as it is used throughout the Agreement means GateNet
Sales Force Report — A monthly report generated by the Company that provides critical data relating to the identities of IMRs, sales information, and enrollment activity of each IMR’s sales force. This report contains confidential and trade secret information, which is proprietary to the Company.
Line — Each one of the individuals enrolled immediately underneath an IMR and their respective marketing sales force represents one “line” in your IMR sales force.
Incapacitation –-- A person who is impaired by reason of mental illness, mental deficiency, physical illness or disability, advanced age, or drug or alcohol addition, to the extent of lacking sufficient understanding or capacity to make or communicate responsible decisions concerning his or her affairs; a person who is without legal power or ability to act; the existence of an impediment preventing action.
Immediate Household — Heads of household and dependent family members residing in the same house
IMR – Independent Marketing Representative
IMR – Fundraiser – An IMR level on-profit or not-for-profit organization in the GateNet program. No entry fee or monthly Monthly Maintenance is paid.
Company Literature –-- All material published by GreenBackStreet or GateNet including, but not limited to, the Company website.
Sales Force — The IMRs enlisted or enrolled below a particular IMR.
Official Company Material — Literature, audio or videotapes, and other materials developed, printed, published and distributed by Company to IMRs.
Shopper or Customer — An individual who purchases products from a Company vendor or merchant.
Enroller — An IMR who enrolls another IMR into the Company, and is listed as the recruiter on the IMR Application and Agreement.
Suspended IMR – An IMR who, for reasons determined by the Company, are not eligible for commissions, nor can they sell the Company’s products for a pre-determined amount of time.
Terminated IMR – An IMR who can no longer receive commissions or sell the Company’s products. Termination is either voluntary or involuntary.
Above IMR – The IMR or IMRs above a particular IMR in a line.
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