IMPORTANT UPDATES TO U.S. DISTRIBUTOR ANNUAL RENEWALS AND PREFERRED CUSTOMER FEE

Posted: March 17, 2019 | By: Dave Briskie

At Youngevity, we remain focused on supporting Dr. Wallach’s mission of making the world a better, healthier place. As an all-inclusive direct selling company, we want to provide a safe harbor where Distributors can “pick their passion” and build a business, and where customers can swap where they shop for great products in top-selling consumer categories. As an important part of our business strategy, we’re moving forward with a Distributor annual renewal fee and a Preferred Customer fee. This will enable all of us to more clearly define the difference between a Distributor and a Preferred Customer and leverage the benefits of each.

WHAT ARE THE FEES?

 

DISTRIBUTORS

Distributor Annual Renewal

The Distributor Annual Renewal is a fee that will be collected once a year on the Distributor’s anniversary date—the date they joined the business as a Distributor. The reason we’re implementing this policy is as follows:

1. We believe it is crucial to clearly identify and define the distinction and the benefits that exists between Retail Customers, Preferred Customers, and Distributors.  Over our 21 years in business, Youngevity has become the safe harbor for all types of companies and their sellers.  We have a wonderful culture of inclusion; however, we believe our processes must be tweaked so that all distributors within the Youngevity Nation can have an income opportunity that works for their style of selling.
2. We believe our distributors should have a distinct selling advantage in the marketing of Youngevity Products when it comes to offering the products at wholesale prices and wholesale pricing should only be available on distributor replicating websites.
3. We have invested heavily, particularly over the last couple of years, in creating business-building tools and implementing a wide array of technologies to assist our Distributors in growing their businesses.  Keeping these tools relevant and flourishing with newly developed content on a continual basis and making these tools available for ALL distributors is a significant investment by the company in your distributor business.   With multiple replicated websites, improved back-office functionality, and Youngevity University—along with a new mobile marketing app (GO2 APP) and interactive health assessment—our Distributors have a full range of marketing, sales, and training tools at their disposal.

 

 

What is the key difference with these policy changes?

Until now, we’ve provided these tools at no additional cost to Distributors—despite many other Direct Selling companies charging their sales teams for each new tool they release. Instead, we’re implementing a once-yearly, all-inclusive fee. We strongly believe that ALL distributors should have ALL tools available at their disposal with no hidden costs.  This also allows us to streamline training in an inclusionary manner.

What is the rollout plan for the Annual Distributor Renewal?

• Beginning April 1, 2019, all new Distributor enrollees will enroll with the understanding that the company has an annual renewal fee of $49.95. This will be payable exactly one year after the date they enroll.
• The Messaging to NEW Enrollees is the only impact related to the Distributor Renewal fee and this messaging begins April 1, 2019.

What about current Distributors?

• Beginning June 1, 2019, we will implement the renewal fee for current Distributors.
• Those distributors who have been with Youngevity a year or longer are subject to the annual renewal fee.

So, beginning June 1, 2019, and each day thereafter, the system will go through the following process:

1. The system will identify all distributors with a JOIN DATE corresponding with that specific day of the month. (June 1, June 2, June 3, and so on throughout every day of the year)
2. The system will look back and identify if the distributor has been involved with Youngevity a year or longer.
3. Those distributors whose JOIN DATE look back is a year or longer will be charged the Distributor Renewal Fee.
4. Those distributors whose JOIN DATE look back is less than a year will not be charged the Distributor Renewal Fee

PREFERRED CUSTOMERS

Preferred Customers: Sign-up and Annual Renewal

The new Preferred Customer sign-up fee provides benefits like discount prices, free shipping, and more. Other network marketing companies charge for these kinds of benefits, as do club models such as Costco and Amazon Prime. Preferred Customers will also have opportunities to get the annual renewal fee waived. Those opportunities will be announced as the Preferred Customer fee begins to rollout, in June 2019.

What is the key difference with these policy changes?

Until now, there’s been no cost for becoming a Preferred Customer, which has led to an overloaded system of extinct accounts due to inactivity. This has also detracted from the customer experience we want to provide. Another advantage of charging this fee is the ability to segment Distributors and Customers into two distinct groups. As a result, it will now be easier to get the right message to Customers. Please note a Preferred Customer may always upgrade to a distributor if they feel they want to build a business or earn commissions.

What is the rollout plan for New Preferred Customer Sign-up and Renewals?

• Beginning June 1, 2019, all new Preferred Customers can expect to pay $19.95 to sign up for access to discounts and more (details below).
• This will be billed at sign-up, and each year on the Preferred Customer’s anniversary date, which is one year after the date they joined as a Preferred Customer.

What about current Preferred Customers?

• Current Preferred Customers who have joined before June 1, 2019 will be grandfathered in for at least one year before being asked to renew their account.
• In other words, if you fall into this group, you won’t be billed your first annual renewal fee (at the soonest) until June 1, 2020. Active Preferred Customers will have multiple ways in which their Preferred Customer fee will be waived.  These requirements or incentives will be outlined in the coming weeks.

 

Note: This rollout plan applies to the U.S. only.  Non-U.S. Country plans will rollout and be communicated separately, at a later date (TBD).

 

KEY DIFFERENCES BETWEEN A DISTRIBUTOR AND PREFERRED CUSTOMER

 

There are benefits that come with both, but also key differences highlighted below:

Preferred Customers Get Access To:

• Wholesale product pricing
• FREE Shipping when your Autoship is over $99
• New product releases and special bundles
• Saved account information for quick checkout, order history, creating wish lists, and more

With these benefits, Preferred Customers will likely recoup their annual fee, based on the savings from just one or two orders placed within a full year.

 

Distributors Get Everything a Preferred Customer Gets, PLUS an Income Opportunity
Enjoy access to a business-building opportunity, based on a strong compensation plan—all of which is supported by modern sales and training tools, including:

• A replicated/personalized website to drive your business
• Youngevity Go2App to build your business when and where you choose
• Interactive health assessment to help customers choose the right products for their health needs
• Business center to monitor and support the health of your business
• Invaluable training resources on Youngevity University

 

 

WHY THIS IS A GOOD THING

As a Distributor, it’s important to know which teammates are truly interested in building a business, so you can provide them with the right tools and support. This, of course, requires a very different approach than engaging those who are mainly interested in our products for personal use. These new policies will help your downline, customers, and prospects decide what’s best for them, so you can focus your marketing efforts accordingly.

 

 

WE APPRECIATE YOU!

Whatever path you choose, we genuinely appreciate our partnership with Youngevity Distributors and the ongoing support of our Customers.