Version 2 (Latest)
M/s RCM Consumer Products Pvt. Ltd. (RCPPL) is marketing its
consumer products under Direct Selling System. Each individual
associates himself with the company and purchases the goods
directly from company. The customer pays the price and is
given certain discount. In the system, an opportunity is given
to interested persons to make the purchases as per the plan of
the company by helping others as the benefits of all are
interrelated. Consumer takes decision to buy product(s) not
due to big advertisement but due to the quality of the
product(s) and/or by the opinion and satisfaction of other
consumers who are using the product(s). After using the
products and feeling satisfied with quality and concept, user
share his views with others and thus the group expands day by
day. Company does not require any advertisement, any marketing
agent, any area distributor or retailer for selling the
products. Company saves lot of amount and distributes it to
Associate Buyers as per the plan.
A perusal of the above would show that the whole marketing system is based not on any positive advertisement, but on creating an acceptability and awareness amongst the society, by actual use of the products by some members of the society and deriving satisfaction out of the same. For example, if “A” purchases a product from RCPPL and feels satisfied with quality and usefulness of the same, he is expected to tell this to others, so that others would also follow his example and purchase the product. However, it may be noted that “A” is not under any obligation to do so. The sales pattern adopted by RCPPL is such that it encourages people to propose further in their group and each one’s related group expands
In context to this, the persons may be interested in sharing their view about the product with others, RCPPL has devised method by which it is identified that some people have purchased the goods due to sharing of the views about the goods by “A” then “A” gets incentive/discount. Thus, in this way, group for making the purchases is formed on its own
A perusal of the above would show that the whole marketing system is based not on any positive advertisement, but on creating an acceptability and awareness amongst the society, by actual use of the products by some members of the society and deriving satisfaction out of the same. For example, if “A” purchases a product from RCPPL and feels satisfied with quality and usefulness of the same, he is expected to tell this to others, so that others would also follow his example and purchase the product. However, it may be noted that “A” is not under any obligation to do so. The sales pattern adopted by RCPPL is such that it encourages people to propose further in their group and each one’s related group expands
In context to this, the persons may be interested in sharing their view about the product with others, RCPPL has devised method by which it is identified that some people have purchased the goods due to sharing of the views about the goods by “A” then “A” gets incentive/discount. Thus, in this way, group for making the purchases is formed on its own
A person who desires to avail the incentive on purchase as per defined methodology framed by the company, has to get himself registered as an
Associate Buyer with the RCPPL and follow other procedures laid down as under :-
Proposer
Associate Buyer who promotes any individual to become Associate Buyer in his/her group is termed as a Proposer.
Sponsor
Associate Buyer, under whom new individual is joining, is termed as a sponsor.
Group of Associate Buyer
All Associate Buyers under the particular Associate Buyer who being promoted by him/her and/or promoted by his group’s other Associate Buyers shall be termed as Particular Associate Buyer’s Group.Application
The person interested to become Associate Buyer is required to apply online by the application form available on the company's website. The necessary details of the applicant, sponsor and proposer are to be filled in the Form. In addition, the original scan copy of the applicant's photo, identity card, address proof and bank account details have to be uploaded. The terms and conditions given with the application are to be read and accepted. After that an OTP comes in the mobile number given in the application. After the OTP is entered, the application is received by the company. List of the documents to be uploaded along with application form for becoming an Associate Buyer are as under:
1. A colorful photo passport size
2. One of the following documents for certification of Photo ID
2.1. Aadhaar Card (Both Side)
2.2. Passport (Valid)
2.3. PAN Card
2.4. Voter’s Identity Card
2.5. Driving License (Valid)
2.6. Written confirmation from the banks certifying identity proof
2.7. Domicile certificate with communication address and photograph
2.8. Central/State Government certified ID proof
2.9. Certification from any of the Authorities mentioned below:
- Panchayat Pradhan
-Councilor
- Sarpanch of Gram Panchayat
2.2. Passport (Valid)
2.3. PAN Card
2.4. Voter’s Identity Card
2.5. Driving License (Valid)
2.6. Written confirmation from the banks certifying identity proof
2.7. Domicile certificate with communication address and photograph
2.8. Central/State Government certified ID proof
2.9. Certification from any of the Authorities mentioned below:
- Panchayat Pradhan
-Councilor
- Sarpanch of Gram Panchayat
3. Self attested Photocopy of any of following documents for address proof:-
3.1. Aadhaar Card (Both Side)
3.2. Telephone bill not older than 3 months
3.3. Bank account statement not older than 3 months (Attested by Bank)
3.4. Electricity bill not older than 3 months
3.5. Ration card
3.6. Passport (Valid)
3.7. Driving License (Valid)
3.8. Voter’s Identity Card
3.9. Written confirmation from the banks (Attested by Bank)
3.10. Lease agreement along with rent receipt not older than 3 months
3.11. Current employer’s certificate mentioning residence
3.12. Domicile certificate with communication address and photograph
3.13. Central/State Government certified Address proof
3.2. Telephone bill not older than 3 months
3.3. Bank account statement not older than 3 months (Attested by Bank)
3.4. Electricity bill not older than 3 months
3.5. Ration card
3.6. Passport (Valid)
3.7. Driving License (Valid)
3.8. Voter’s Identity Card
3.9. Written confirmation from the banks (Attested by Bank)
3.10. Lease agreement along with rent receipt not older than 3 months
3.11. Current employer’s certificate mentioning residence
3.12. Domicile certificate with communication address and photograph
3.13. Central/State Government certified Address proof
* Please note that expired passport cannot be used as address proof, it can
be accepted as ID proof.
4. Cancelled original signed cheque which has the name printed of the account holder or original
Bank statement issued and attested by bank for the proof of Bank Account Number
There is no charge/fee for registration as an Associate Buyer . After
the successful submission of application form and documents (It is a
sole responsibility of the Applicant to submit valid Documents and
Information), a Unique/Track ID Number will be given on website. After
acceptance of his/her Application, applicant will receive the
permanent ID Number. After receiving the permanent ID Number, the
Associate Buyer has to obtain the ID card by login on Website. It is
sole company’s discretion to register the new applicant as Associate
Buyer. One Associate Buyer can propose / sponsor as many persons as
he/she desires.
Please note: There is no consideration for proposing / sponsoring to become
Associate Buyer to Proposer / Sponsor.
The Company shall be at liberty to accept or reject the application
at its sole discretion without assigning any reason whatsoever.
The step of Allotment of password and Unique ID for the applicant by
the company shall be construed as the registration of Associate
Buyer. This registration shall come into effect only after the
acceptance by the company by way of issuance of Password and Unique
ID
Incentive On Purchases
1. Incentive is calculated on purchase volume of a product.
Purchase volume maybe equivalent to selling price or different as
may be declared by the company from time to time. It can be seen
on company's website.2. Main Group and other Group (Groups of Associate Buyer under a
Particular Proposer / Sponsor) The Group with highest Purchase
Volume is called main Group of Associate Buyer. All the Groups
other than main Group are called other Group/Groups of Associate
Buyer. Main Group may be different in different months.3. Eligibility & Calculation of Purchase Incentive:- Since
Purchase Incentive is totally based on individual purchase volume
of Associate Buyer therefore Associate Buyer shall become eligible
for Purchase Incentive only if his/her minimum purchase of RCM
Products is Rs. 100 on accrual basis in the relevant month.
Net Incentive of a particular Associate Buyer is calculated by deducting aggregate Purchase Incentive of his/her group/groups Associate Buyers from whole aggregate Purchase Incentive. This can be termed as calculation on difference basis. The Incentive of the Associate Buyer who becomes disqualified for any reason for Incentive, shall not be excluded for calculation of Incentive payable to other Associate Buyers on difference basis.
Incentive is calculated on a fixed percentage based on monthly purchase volume made by Associate Buyers and their groups on differential basis as follows:
Net Incentive of a particular Associate Buyer is calculated by deducting aggregate Purchase Incentive of his/her group/groups Associate Buyers from whole aggregate Purchase Incentive. This can be termed as calculation on difference basis. The Incentive of the Associate Buyer who becomes disqualified for any reason for Incentive, shall not be excluded for calculation of Incentive payable to other Associate Buyers on difference basis.
Incentive is calculated on a fixed percentage based on monthly purchase volume made by Associate Buyers and their groups on differential basis as follows:
Basic Purchase Incentive Rates
Vital Level
Pin Level 1
Opener: Total P.V. of all Groups 70,000 or more
including P.V. of B Leg 20,000 or more
Pin Level 2
Eagle: Total P.V. of all Groups 1,15,000 or more
including P.V. of B Leg 30,000 or more
Pin Level 3
Runner: Total P.V. of all Groups 1,70,000 or more
including P.V. of B Leg 40,000 or more
Pin Level 4
Winner: Total P.V. of all Groups 2,60,000 or more
including P.V. of B Leg 50,000 or more
Pin Level 5
Star: Total P.V. of all Groups 3,50,000 or more
including P.V. of B Leg 70,000 or more
Royalty Bonus Rates
Note:
- Associate buyer becomes eligible for Royalty Bonus only if his/her minimum purchase of RCM product is not less than 1500 Purchase Volume on accrual basis in the relevant month
- Royalty is calculated on difference basis by deducting Royalty of sponsored group/groups from total Royalty.
- Royalty is calculated on monthly basis.
- When Purchase Volume of Associate Buyer’s any group exceeds 3,50,000 and Purchase Volume of remaining group is not less than 1,15,000 then all groups except other group/groups who achieved the target of Purchase Volume of 3,50,000 or above shall be eligible for Royalty.
- It is compulsory for Royalty Achievers to conduct 2 meetings in a month at WWQ to earn Royalty Bonus. Meetings organized by Royalty Achievers at WWQ shall be conducted free of charge, and no fees shall be collected from attendees.
Technical Bonus Rates
Note:
- Associate Buyer becomes eligible for Technical Bonus only if his/her minimum purchase of RCM product is not less than 1500 Purchase Volume on accrual basis in the relevant month
- Technical Bonus is calculated on difference basis by deducting Technical Bonus of sponsored group/groups from total Technical Bonus
- Technical Bonus is calculated on monthly basis.
- Associate Buyer, who achieves 8 % Royalty for consecutive 3 months, shall be entitled for Technical Bonus.
- When Purchase Volume of Associate Buyer’s any group exceeds 5,00,000 and Purchase Volume of remaining group is not less than 5,00,000 then all groups except other group/groups who achieved the target of Purchase Volume of 5,00,000 or above shall be eligible for Technical Bonus.
- It is compulsory for Technical Achievers to conduct 2 meetings in a month at WWQ and 2 open meetings to earn Technical Bonus. Meetings organized by Technical Achievers at WWQ or in open shall be conducted free of charge, and no fees shall be collected from attendees.
Monthly Vital Growth Bonus
1% of Company's Total Net Monthly P.V.| Pin Level |  |  |  |  |  |
|---|---|---|---|---|---|
| Point | 1 | 2 | 3 | 4 | 5 |
- 1% of total net P.V. of the company of that month will be distributed on average basis amongst the eligible Vital Achievers, who have earned points in such month. To calculate the average, total 1% P.V. value will be divided by total points earned by all Vital Achievers, This way amount per point will be calculated
- To earn points, Vital Achievers needs to make minimum purchase of 1500 P.V. from their own ID in the particular month.
- Note:These changes will take effect for the February 2024 bonus calculation. If the level achieved in February 2023 is not maintained or surpassed, no bonus points will be awarded.
Monthly Royalty Growth Bonus
1% of Company's Total Net Monthly P.V.| Pin Level |  |  |  |  |
|---|---|---|---|---|
| Point | 10 | 11 | 12 | 13 |
1% of total net P.V. of the company of that month will be
distributed on average basis amongst the eligible Royalty
Achievers who have earned points in such month. To
calculate the average, total 1% P.V. value will be divided
by total points earned by all Royalty Achievers, This way
amount per point will be calculated.
- Royalty Achievers needs to make a minimum purchase of 1500 P.V. each month on their own ID to earn points.
- It is compulsory for Royalty Achievers to conduct 2 meetings in a month at WWQ to earn Royalty Bonus. Meetings organized by Royalty Achievers at WWQ shall be conducted free of charge, and no fees shall be collected from attendees.
Monthly Technical Growth Bonus
1% of Company's Total Net Monthly P.V.| Pin Level | Point |
|---|---|
 | 10 |
 | 12 |
 | 14 |
 | 16 |
 | 18 |
 | 20 |
 | 22 |
 | 24 |
 | 26 |
1% of total net P.V. of the company of that month will be
distributed on average basis amongst the eligible
Technical Achievers, who have earned points in such month.
To calculate the average, total 1% P.V. value will be
divided by total points earned by all Technical Achievers,
This way amount per point will be calculated.
- Technical Achievers needs to make a minimum purchase of 1500 P.V. each month on their own ID to earn points.
- It is compulsory for Technical Achievers to conduct 2 meetings in a month at WWQ and 2 open meetings to earn Technical Bonus. Meetings organized by Technical Achievers at WWQ or in open shall be conducted free of charge, and no fees shall be collected from attendees.
Yearly Vital Growth Bonus
1% of Company's Total Net Yearly P.V.- 1% of total net P.V. of company of a particular year (April to March) will be distributed on average basis amongst the eligible Vital Achievers, who have earned points during the above mentioned period. To get this, monthly vital growth bonus points earned every month from April to March Period will be added together.
- Total 1% P.V. value will be divided by the total points earned by all the Vital Achievers, This way amount per point will be calculated. This bonus amount will be calculated in the month of march every year.
- For the year 2023-24, total P.V. value for annual vital growth bonus will be calculated from May 2023 to March 2024.
- Conditions applicable to monthly Vital Growth Bonus shall be applicable for annual vital growth bonus too.
Yearly Royalty Growth Bonus
1% of Company's Total Net Yearly P.V.- 1% of the total net P.V. of the company of a particular year (April to March) will be distributed on an average basis amongst the eligible Royalty Achievers, who have earned points during above mentioned period. To get this, monthly royalty growth bonus points earned every month from April to March Period will be added together.
- Total 1% P.V. value will be divided by the total points earned by all the Royalty Achievers, This way amount per point will be calculated. This bonus amount will be calculated in the month of March every year.
- For the year 2023-24, the total P.V. value for annual royalty growth bonus will be calculated from May 2023 to March 2024.
- Conditions applicable to monthly royalty Growth Bonus shall be applicable to annual royalty growth bonus too.
Yearly Technical Growth Bonus
1% of Company's Total Net Yearly P.V.- 1% of total net P.V. of the company of a particular year (April to March) will be distributed on average basis amongst the eligible Technical Achievers, who have earned points during the period mentioned above. To get this, monthly technical growth bonus points earned every month from April to March Period will be added together.
- Total 1% P.V. value will be divided by the total points earned by all the Technical Achievers, This way amount per point will be calculated. This bonus amount will be calculated in the month of March every year.
- For the year 2023-24, total P.V. value for technical royalty growth bonus will be calculated from May 2023 to March 2024.
- Conditions applicable to monthly Technical Growth Bonus shall be applicable for annual technical growth bonus too.
Consistency Reward
| Monthly Purchase P.V. | 100 to 1499 | 1500 or More | 2500 or More | 5000 or More |
|---|---|---|---|---|
| DP Value of Free Products | 12% of Total P.V. | 1500 | 2500 | 5000 |
- Free products can be collected from nearby RCM Distribution Center as per the earned reward.
- Products against earned rewards can be collected within 45 days to 135 days from completion of period of 6 months. Eligibility for reward will be over after such period.
- Products against earned reward can be collected maximum in 3 times by any Associate Buyers.
- To earn consistency reward, Any Associate Buyer can start purchase from May 2023 or in any month after.
- For 1500, 2500 or 5000 slab, during the period of 6 months, if the purchase is less or not made in any month; to keep the eligibility of the plan, he/she has to make a purchase of twice the amount of shortfall purchase in addition to the regular required purchase for the running slab in the next month. For this situation, Associate Buyer in slab 100 to 1499 have to purchase 1500 P.V. in next month.
- Any Associate Buyer can increase the purchase in consistency slab in any month upto 4 months after beginning. He will be given free products after completing 6 months on average basis. This benefit will be available only if the slab does not come down once increased.
- If the purchase of associate buyer for 1500, 2500 and 5000 slabs is less than 1500 P.V. in a particular month and does not buy twice the shortfall amount in the next month, then such associate buyer will be considered in 100 to 1499 slab & reward will be given accordingly.
- If purchase is not done in any month and to remain eligible next month purchase is also not done as per terms & conditions then the month in which purchase is restarted will be considered as new start for 6 months consistency reward calculation.
- In 100 to 1499 slab, to calculate total P.V. of 6 months maximum 2500 P.V. will be considered in any month.
- Only products will be given for rewards earned. Cash shall not be given in any situation.
- After completion of 6 months of consistency purchase new entry can be started from next month.
Paints Purchase Bonus
If the monthly net purchase of paint is 5000 PV or more, then a 25%* Paint Purchase Bonus will be given on a monthly basis.
- In any month where the purchase exceeds 5000 PV, the Paint Purchase Bonus amount will be provided along with other earned incentives for that month.
- Paint purchases will be added to the purchase volume for eligibility towards performance incentive, royalty bonus, technical bonus, monthly and annual vital, and royalty & technical growth bonus, and incentives will be given as per the marketing plan.
- Paint purchases will not be added for Consistency Reward and Consistency Bonus.
INCENTIVE PAYMENT DURATION, MODE OF PAYMENT ETC
- All the above incentive for each Associate Buyer is calculated on the basis of the total purchases made by themselves and their groups’ Associate Buyer monthly from 1stDay of every month and Last Day of that month. (Both Days are inclusive)
- Except for abnormal reason, calculation of Purchase Incentive shall be completed within 40 days from the last day of the month, for which Incentive is to be calculated.
- The amount of Purchase Incentive is remitted within 90 days from the date of calculation of the Incentive.
- Payment of Incentive shall be made by anyone mode of Banking System (NEFT/RTGS/INTER BANKING TRANSFER). For this, it is mandatory to give correct bank account number and IFSC detail by Associate Buyer.
- If Associate Buyer does not receive Incentive payout due to Non-compliance of rules or due to any other reason occurred by Associate Buyer, then complete responsibility for delay/ Non-payment will be of Associate Buyer.