Kotakstars 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.
INCENTIVE ON PURCHASES
(a) 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.
(b) 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.
(c) 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.
