As a Coral Club Distributor, you are the face of the company. Our customers, business partners, and the general public form their opinion about the company from you. A proper business image is the key to successful business development as well as the promotion of Coral Club’s values and philosophy.

MLM is based on personal relationships that are rooted in mutual honesty and trust. It is very important to build a strong rapport with everyone that you deal with. How you look, what you say, and how you behave all play a major role in how you are perceived.

5.1. Business attire

The business world has special definitions for style of dress. The rules differ depending on the specific situation or event, which is the most important factor in selecting your attire. Ensuring that your clothes are neat, clean, and pressed is equally vital. Following the guidelines will help you achieve the correct first impression, while not adhering to the rules can lead to disappointing results. For further details, please see Appendix 1 and Appendix 2.

5.2. Communication

Communication is vital to human interaction in any setting or circumstance. It includes the obvious speaking and writing as well as more subtle things like body language. Communication is usually separated into two types - verbal and nonverbal. This section will focus mostly on verbal communication as, in the context of Coral Club, this is the type of communication that you are likely to engage in most of the time.

1. As a Coral Club Distributor, product and opportunity presentations, business meetings, telephone conversations and training sessions will be part of your regular routine. The way you communicate should be tailored depending on a multitude of factors, including the type, form, content and forum as well as and your audience. For example, a Distributor speaking in front of a crowd of thousands will use a communication style that is very different from a Distributor who is speaking to an existing customer about the Coral Club opportunity. In either case, the vocabulary that you use, the pitch, tone, and volume of your voice, the speed at which you speak as well as your body language (facial expressions, gestures, eye contact etc.) all will affect how your message is received and if you achieve the desired result. The most common objectives of communication are to deliver a specific message and to persuade the audience of your point of view.

2. The great philosopher Aristotle, defined 3 modes of persuasion. They are Ethos (Credibility), Pathos (Emotion) and Logos (Logic). Do you have credibility with your audience? Are you a trustworthy source of information? Do your words evoke any feelings? Was an emotional connection established with you and your message? Is your message based on facts? Does your argument make logical sense? Every successful speech or presentation must contain all three of these elements.

3. Effective communication is a complex skill that can take years to perfect. Improving your communication style and delivery is a worthwhile endeavor that will benefit you in all areas of your life.

5.3. Code of Ethics

Some of Coral Club’s core values are humanism, integrity, collaboration, quality and self-improvement. We believe in building a business that is based on ethical behavior, honesty and mutual respect. These values are central in our interactions with business partners, employees and Distributors. As a Distributor, you are the face of the Company and should embrace these values as well.

The Company has made a commitment to providing its Distributors top-quality Products, exceptional support, and a proven-successful Compensation Plan. A Distributor may purchase Products directly from the Company for both personal use and for resale to consumers. In turn, a Distributor agrees to represent the Products and income opportunity in an ethical and professional manner. Each Distributor agrees to abide by the following Code of Ethics:


1. I will be respectful of each and every person I meet while doing Distributor Business.

2. At all times I will conduct myself and my business in an ethical, moral, legal and financially sound manner, and will not engage in any deceptive or illegal practice.

3. I will not communicate disparaging comments about competitors’ products to others and shall not communicate slanderous, libelous, and derogatory statements about competitors or other Distributors.

4. I will not engage in activities that would bring disrepute to the Company, other Distributors, or me.

5. I will be truthful in my representation of the Products and will make no Product claim that is not contained in and supported by official Company publications.

6. I will fulfill my leadership responsibilities as a Sponsor by training, assisting, and otherwise supporting the Distributors in my Downline Organization.

7. I will accurately and lawfully represent the Compensation Plan.

8. I will not make any earnings claims or earnings representations.

9. I will abide by each and every term and condition of the Contract.

10. I will honor the terms of the Product return and refund policies with all of my retail Customers.

11. I will respect the Sponsor relationship of every other Distributor and I will neither attempt to interfere with or change these relationships nor make disparaging or untrue claims about other Distributors.

A breach of any portion of the Code of Ethics will constitute a breach of the Contract.

5.4. Independent contractor:

As a Coral Club Distributor, you will operate your business as an independent contractor. The agreement between you and the Company does not create an employer/employee relationship, agency, partnership, or joint venture between you and the Company. You shall not be treated as an employee for your services or for Federal or State tax purposes. You are responsible for paying local, state, and federal taxes due from all compensation earned as a Distributor of the Company. You have no authority (expressed or implied), to bind the Company to any obligation. You shall establish your own goals, hours, and methods of sale, so long as you comply with the terms of the Contract and applicable laws.

Operating as an independent contractor comes with many benefits and responsibilities.
Some of the factors that designate a Distributor as an independent contractor are:

1. You are free to determine your own work hours. Coral Club does not dictate when and how many hours you work.

2. You are free to make your own business decisions. Coral Club does not dictate your business plans and business expenditures.

3. Your compensation depends on sales, not the amount of hours worked or people referred to the Company.

Some of the responsibilities that come with owning your own business are:

1. You assume all the risks of owning a business, which may lead to either profits or losses.

2. You are responsible for obtaining and paying for necessary business licenses and insurance.

3. You will have operating expenses in order to grow your business.

4. You are responsible for keeping your books and records (for example: sales, taxes, expenses, etc.).

5. You are responsible for filing your own income tax based on your earnings.

5.5. Sales tax

Retail Sales of Coral Club products and promotional materials are subject to various sales and use taxes by local, county, and state government agencies in the United States. You are ultimately responsible for collecting and remitting the appropriate taxes. For your convenience, Coral Club collects the correct amount of sales tax and remits these taxes on your behalf to the appropriate tax authority. You can recover these taxes when you make a retail sale.

If you have submitted, and the Company has accepted, a current Sales Tax Exemption Certificate and Sales Tax Registration License, sales taxes will be added to the invoice.

In January of each year, we will issue a check to you in an amount equal to the sales taxes collected from you during the immediately preceding calendar year. Exemption from the payment of sales tax is applicable only to orders that are shipped to a state for which the proper tax exemption papers have been filed and accepted. Applicable sales taxes will be charged on orders that are drop-shipped to another state. Any sales tax exemption accepted by the Company is not retroactive.

5.6. Income tax

Income received as a result of direct sales is taxable under IRS regulations. You are responsible for reporting your income and paying all the appropriate taxes. Every year, the Company will provide an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U.S. resident who: 1) Had earnings of over $600 in the previous calendar year; or 2) Made purchases during the previous calendar year in excess of $5,000. The Company cannot provide Distributors with any personal tax advice. It is recommended that you work with a professional tax advisor who can provide you with qualified advice.

5.7. Business licenses

You may be required to obtain a business license, depending on the area where you reside and/or conduct business. You shall take responsibility for finding out all applicable regulations and compliance with the law.

5.8. Bonuses and Commissions

Bonus and Commission Qualifications and Accrual

A Distributor must be active and in compliance with the Agreement to qualify for bonuses and commissions. So long as a Distributor complies with the terms of the Agreement, the Company shall pay commissions to such Distributor in accordance with the Compensation Plan. The minimum amount for which the Company will issue a commission is $50.

If a Distributor’s bonuses and commissions do not equal or exceed $50, the Company will accrue the commissions and bonuses until they total $50. Payment will be issued once $50 has been accrued.

Notwithstanding the foregoing, all commissions, bonuses or other compensation owed a Distributor, regardless of the amount accrued, will be paid at the last pay period of the year or upon the termination of the Contract.

Adjustments to Bonuses and Commissions:

1. Adjustments for Returned Products

Distributors receive bonuses and commissions based on the actual sales of Coral Club products to end consumers. When a product is returned to the Company for a refund, or the buyer institutes a credit card chargeback, either of the following may occur at the Company’s discretion: (1) the bonuses and commissions attributable to the returned or repurchased product will be deducted in the month in which the refund is given, and continuing every pay period thereafter until the bonuses and commissions are recovered; and/or (2) the bonuses and commissions attributable to the refunded product may be deducted from any refunds or credits to the Distributor(s) who received the bonuses or commissions on the sales of the refunded product or cancelled service.

2. Garnishments and Court Orders

The Company reserves the right to withhold or reduce any Distributor’s compensation as it deems necessary to comply with any garnishment or court order directing the Company to retain, hold, or redirect such compensation to a third party.

3. Hard Copy Checks

The Company pays commissions and bonuses via direct deposit into Distributors’ bank accounts. There is no charge for direct deposits. A Distributor may request payment by hard-copy check. In that event, the Company will deduct a $5 processing fee from each hard-copy check issued to the Distributor.

4. Tax Withholdings

If a Distributor fails to provide his or her tax identification number or it is later determined that the number is incorrect, the Company will deduct the necessary backup withholdings from the Distributor’s bonus and commission payments as may be required by law.

5.9. Protecting Personal & Confidential Information of Others

Handling Personal Information

As a Distributor, you will receive Personal Information from and about prospective Distributors, customers and other individuals. Keeping their Personal Information secure not only helps to ensure your compliance with the law, but it also helps you to maintain current customers’ and potential customers’ trust, which is an important factor in your success. Personal Information is information that identifies, or permits you to contact, an individual, financial information, and sales data. It includes, but is not limited to, a customer’s, potential customer’s, Distributor’s, potential Distributor’s, or other individual’s name, address, email address, phone number, credit card information, social security number, purchase history, and other information.

Give the Customer Notice

Customers want to know why you are collecting their Personal Information and what you plan to do with it, so tell them what you are collecting, why and with whom you are going to share it. Tell them this before or at the time that you collect their Personal Information, and then be sure that you use and share Personal Information only in the ways you promised.

Collect Only What You Need

Collect only the Personal Information that you really need. Review the forms that you use to collect Personal Information, and revise them to remove fields for information you do not need. Less is more. For example, don’t collect a credit or debit card number unless your customer actually makes a purchase.

Give the Customer Control

Give customers a choice about how you communicate with them. For instance, find out if a customer wants to receive promotions and other marketing messages from you and, if so, whether he or she would prefer to receive them by email, phone or another method of communication. Respect the customer’s wishes: if, for example, a customer tells you that he or she doesn’t want to receive emails, then find another way to communicate with him or her.

Stay Up-To-Date

Keep the customers’ Personal Information up-to-date. Remind them to let you know if their Personal Information changes. Keeping your contacts current helps you to stay in touch with them.

Your Back-Office

Your Back-Office may have information relating to your downline Distributor’s confidential information. You must not show this information to anyone, nor may you share your Back-Office access with anyone.

Share Only if Necessary

Don’t share a customers’ Personal Information unless you have a real business reason to do so, and then share only what is necessary, and no other information, making sure that the other person agrees to use the Personal Information only in the ways you have agreed.

Be Careful

A customer’s information is a valuable asset. Don’t communicate it to the general public or to anyone who doesn’t have a legitimate need for it. Protect it from unauthorized access or disclosure.

Dispose of Personal Information Responsibly

When you no longer need a customer’s Personal Information, stop using it. Dispose of it in a way that makes it unreadable, such as by shredding paper documents.

Be Very Careful with Sensitive Personal Information

If sensitive Personal Information such as credit or debit card numbers, social security numbers, or tax ID numbers, fall into the wrong hands, customers could become the victim of fraud or identity theft. Consider these steps to help reduce that risk:

1. Pay attention to your surroundings and use good judgment whenever you need to discuss or transmit sensitive Personal Information;

2. Do not share (or ask a customer to share) sensitive Personal Information, including payment information, in an unsecure way, such as by email;

3. Keep sensitive Personal Information in a secure place, such as a locked drawer. Do not leave it lying around where someone could see or take it;

4. Use similar safeguards if you keep sensitive Personal Information on your computer. For example, use passwords that are not easy to guess, install virus protection, and password protect documents that contain sensitive Personal Information;

5. Avoid storing Personal Information on your laptop or another portable device that could be lost or stolen, unless the device is encrypted and

6. Unless you have a legitimate business need, do not keep sensitive Personal Information. Keeping it for longer than you need it creates unnecessary risk.