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KareMor was structured as a multilevel network marketing
company with hierarchical levels of distributors. In ascending
order from entry to the highest echelon, the levels included:
Consultant, Silver, Gold, Opal, Sapphire, Ruby, Emerald, Diamond,
and Crown. Distributors were independent representatives who
purchased from KareMor and then resold the VitaMist products.
Distributors also had the opportunity to recruit additional
distributors, resulting in a pyramid structure of what were
referred to as “downline” distributors. Advancement in the
KareMor organization depended upon the volume of product
purchases generated by the distributor and his or her downline
associates, as well as upon the width and depth of this downline
network.
The compensation earned by a distributor from participation
in the KareMor network similarly depended upon the volume of
product purchases generated by both the distributor and his or
her downline network. For instance, higher volume distributors
received larger discounts on VitaMist product purchases,
providing potentially greater profit margins on resales down
through their chains of downline associates and/or to ultimate
consumers. The compensation credited to a distributor could thus
generally be characterized as equivalent to a system of
commissions, bonuses, or “overrides”.
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Last modified: May 25, 2011