Common use of Direct Selling Program Clause in Contracts

Direct Selling Program. A Direct Selling Program is any business that meets each of the following criteria (“Direct Selling Program”): 1. The business sells memberships, goods or services through independent contractors; 2. The independent contractors are authorized to recruit, sponsor or enroll other independent contractor salespersons into the business or to submit persons or entities to the business for consideration as independent contractor salespersons; and 3. Independent contractor salespersons are compensated in whole or in part on sales of goods or services of those independent contractor salespersons that they, or other independent contractor salespersons, are personally sponsoring and mentoring.