Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
career path and career car programThis is a brief description of the incentive programs in effect as of Oct. 1, 2009. The Company reserves the right to alter, modify or change the commissions, bonuses or any terms of the incentive programs described herein.
©2009 Mary Kay Inc. Rev. 10/09
Advance a proven program for achieving success
5 6 7 81 2 3 4 career path at-a-glance
n as a team leader/future independent sales director you could:
• Earnprofitsbasedonretailsales• Earna9%or13%commissionon
wholesaleordersofpersonalteammembers
• Receive$50team-buildingbonuses• EarntheuseofaCareerCarorselect
theCashCompensationoption
n as an independent sales director you could:
• Earnprofitsbasedonretailsales• Earnpersonalteamcommissionsof
4%,9%or13%• Earn9%or13%unitcommission• ReceiveaPersonalTeam-BuildingBonus
of$100ormore• ReceiveaUnitVolumeBonusof$500or
more• ReceiveaUnitDevelopmentBonusof
$300or$500• ReceiveaStarConsultantBonusof
$300,$400or$500• ReceiveaWellnessAwardBonusof
$750,$1,200or$1,800• BeeligibleforTermLifeInsurance
AwardandDisabilityAwardPrograms• EarntheuseofaCareerCarorselect
CashCompensationoption
n as an independent national sales director you could:
•Earnpersonalteamcommissionsof4%,9%or13%
•EarnpersonalunitSalesDirectorcommissionof13%
•EarnNSDcommissionsof10%onpersonalunitwholesale
•Earn9%commissionsonfirst-line;4%onsecond-line;2%onthird-lineoffspringunits
•Earn2%commissionontop10fourth-lineandbeyondunitsunaffiliatedwithNSDoffspring
•Earna$1,000and$5,000bonusfornewfirst-lineSalesDirectors
•Earn$10,000annualbonusfordevelop-mentofnewNSDoffspring
•ReceiveaStarConsultantBonusof$3,000forevery100StarConsultantsinyourunaffiliatedfirst-,second-andthird-lineoffspringunits
•EarntouseofapinkCadillacwithachoiceofoptionsorselecttheCashCompensationoption
•EnrollintheFamilySecurityandGreatFuturesPrograms
n in the career car program, you could earn the use of a:
• GrandAchieverCareerCar• PremierClubCareerCar(SalesDirector)• PinkCadillacCareerCar(SalesDirector
andNSD)• OrselecttheCashCompensationoption
inlieuofaCareerCar
n as an independent beauty consultant you could:
• Earnprofitsbasedonretailsales• Earnrewardstohelpyoubuildyour
business
n as a star consultant you could:
• Receivespecialrecognition• Earnfabulousprizes
n as a senior beauty consultant you could:
• Earnprofitsbasedonretailsales• Earna4%commissiononwholesale
ordersofpersonalteammembers
n as a star team builder you could:
• Earnprofitsbasedonretailsales• Earna4%commissiononwholesale
ordersofpersonalteammembers• Receivea$50redjacketrebate• Receive$50team-buildingbonuses
. . . . . . . . . . . .
ladder of success program
ABeautyConsultantatanystepofthecareerpathmaybecomeaStarConsultantwhenaminimumof$1,800inwholesaleSection1ordersispostmarkedwithinthecontestquarter.HighercategoriescanbeachievedwithadditionalwholesaleSection1orderspostmarkedduringthequarterandqualifiedteambuilding.Sixhundredcontestcreditsareawardedforeachqualified**newpersonalteammemberaddedduringthequarter.AStarConsultantisrewardedwithaLadderofSuccesspinanda:
➣ Sapphirestarfor$1,800wholesale➣Rubystarfor2,400contestcredits➣Diamondstarfor3,000contestcredits➣Emeraldstarfor3,600contestcredits➣Pearlstarfor4,800contestcredits
StarConsultantconsistencyalsoisrecognized.
. . . . . . . . . . . .new beauty consultant incentives
• New Beauty Consultant Product Bonus➣AnewBeautyConsultantcanearnafree†productbonuswhenherinitialwholesale
Section1orderis$600ormore,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.Thevalueoftheproductbonusshereceivesisbasedonthesizeoftheinitialorderandwhentheorderispostmarked.Fordetailsseethe Ready, Set, Sell! Inventory Options for New ConsultantsbrochureorlogontotheMaryKayInTouch®Website.
➣AnewBeautyConsultantalsocanearnafree†customizedcolorlook,valuedatmorethan$100suggestedretail,whenherinitialorderis$600ormoreinwholesaleSection1products,anditisreceivedandacceptedbytheCompanywithin15calendardaysofwhentheIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.
**AqualifiednewpersonalteammemberisonewhoseIndependentBeautyConsultantAgreementandaminimumof$600inwholesaleSection1ordersarepostmarkedandacceptedbytheCompanywithinthecontestquarter.Contestcreditisanycombinationofatleast$1,800inwholesaleSection1orders,plusqualifiednewpersonalteammembers.
†SalestaxisrequiredonthesuggestedretailvalueofSection1products.
beauty consultant career path
5
beauty consultant career path
4
Independent Beauty Consultant*Avenues of Income •Productsalesandreorders
rewards•MaryKay®pin•Applause®magazine
•EligibletoattendSeminarandCareerConference•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes
n business guidelines• An Independent Beauty Consultant is considered “active” in the month a minimum $200
wholesale Section 1 product order is received by the Company and in the following two calendar months.
•Activity status, career path status and compensation will be based on Independent Beauty Consultant Agreements and wholesale orders received and accepted by the Company by the close of business each month.
•An Independent Beauty Consultant who orders a minimum of $400 suggested retail in any Section 1 products will receive a 50% discount on her entire Section 1 order and qualify for the Earned Discount Privilege. With the Earned Discount Privilege, she can receive a 50% discount on any subsequent orders she places, regardless of size, through the end of two months after her order month. For example, if a Beauty Consultant places a minimum $500 suggested retail order on March 16, 2009, her Earned Discount Privilege will apply until May 31, 2009. She will be eligible for the Earned Discount Privilege as long as she maintains "active" status.
*AnIndependentBeautyConsultantisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.
7
n business guidelines•Spouses as Independent Beauty Consultants
➣ Spouses may be Mary Kay Independent Beauty Consultants. However, there may be only one Independent Sales Director per spouse team. They may operate separately, just as if they were not related. However, for Company record purposes, one will be considered a personal team member of the other. In other words, the spouse of a Beauty Consultant must be recruited by that Beauty Consultant. The personal team commission and team-building bonus normally paid on team members will not be paid when a spouse recruits her/his spouse. The spouse will not count in any way toward Independent Sales Director qualification or any Company promotions or awards, including qualification or maintenance of a Career Car under the Grand Achiever Career Car program.
6
Senior Beauty ConsultantAvenues of Income•Productsalesandreorders•Team-buildingcommissions
Compensation•4%personalteamcommission
rewards•1ActivePersonalTeamMember:EligibletowearSeniorBeauty
Consultantpinenhancer•2ActivePersonalTeamMembers:Eligibletoorderredjacket•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes
Requirements•1to2activepersonalteammembers•Youmustbeactive.
. . . . . . . . . . . .
personal team commissions
AllactiveSeniorBeautyConsultantsandaboveareeligibletoearna4%,9%or 13%personalteamcommissiononthewholesaleordersplacedbytheirpersonalteammembers.
➣Whenyouhaveonetofouractivepersonalteammembers,youcanearna 4%commissiononteammembers’combinedwholesaleSection1ordersinanycalendarmonth.
➣Whenyouhavefiveormoreactivepersonalteammembers,youcanearna 9%commissiononteammembers’combinedwholesaleSection1ordersinanycalendarmonth.
➣Youcanincreaseyourcommissionto13%whenyouplaceapersonalminimum$600wholesaleSection1orderinthesamemonththatatleastfivepersonalteammemberseachplaceminimum$200wholesaleSection1orders.(SpecialconsiderationsforExecutiveSeniorSalesDirectors,EliteExecutiveSeniorSalesDirectors[seePage22]andNationalSalesDirectors[seePage26].)
beauty consultant career pathbeauty consultant career path
9
. . . . . . . . . . . .
team-building bonus
A$50team-buildingbonuswillbepaidtoStarTeamBuilders,TeamLeaders,FutureIndependentSalesDirectorsandSalesDirectors-in-Qualificationforeachqualifiedpersonalteammemberbeginningwiththefourthpersonalteammember.Inthemonthyourteammember’sinitialqualifyingorderisreceived,youmustbeactiveandhaveaminimumofthreeotheractivepersonalteammemberstoreceivethebonus.
n business guidelines•For career path status and compensation purposes, a qualified team member is one
whose initial order with the Company is $600 or more in wholesale Section 1 products, and it is received and accepted by the Company in the same or following calendar month that her Independent Beauty Consultant Agreement is received and accepted by the Company.
8
Star Team BuilderAvenues of Income•Productsalesandreorders•Team-buildingcommissions•Team-buildingbonus
Compensation•4%personalteamcommission•Team-buildingbonus
rewards•EligibletowearStarTeamBuilderpinenhancer•Eligibletowearredjacket
•Receive$50rebateonthepurchaseoftheofficialredjacketavailableonlyfromMaryKayInc.
•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes
Requirements•3to4activepersonalteammembers•Youmustbeactive.
beauty consultant career pathbeauty consultant career path
11
Future Independent Sales Director*Avenues of Income•Productsalesandreorders•Team-buildingcommissions•Team-buildingbonus
Compensation•9%or13%personalteamcommission•Team-buildingbonus
rewards•EligibletowearFutureIndependentSalesDirectorpinenhancer•EligibletowearFutureIndependentSalesDirectorscarf
•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes•EligibletosubmitSalesDirector-in-Qualificationcommitmentform
➣ SeePage13fornewrequirementspriortoenteringSalesDirector-in-QualificationeffectiveJan.1,2010.
•EligibletoqualifyforGrandAchieverstatus(GrandAchieverCareerCarorCashCompensationoption)
Requirements•8ormoreactivepersonalteammembers•Youmustbeactive.
*AchievingFutureIndependentSalesDirectorrecognitionstatusdoesnotguaranteeyouwillbecomeanIndependentSalesDirector.InordertobecomeanIndependentSalesDirector,youmustsuccessfullycompletetheIndependentSalesDirectorqualificationrequirementsassetforthbytheCompany.ASalesDirectorisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.TheSalesDirectorpositionisappointedatthesolediscretionofMaryKayInc.
10
Team LeaderAvenues of Income•Productsalesandreorders•Team-buildingcommissions•Team-buildingbonus
Compensation•9%or13%personalteamcommission•Team-buildingbonus
rewards•EligibletowearTeamLeaderpinenhancer•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes
•Eligibletogoon-targetforGrandAchieverstatus(GrandAchieverCareerCarorCashCompensationoption)
Requirements•5to7activepersonalteammembers•Youmustbeactive.
beauty consultant career pathbeauty consultant career path
The following requirements are effective Jan. 1, 2010:
Prior to Entering the Sales Director-in-Qualification Program InordertosubmitacommitmentformtotheCompanystatingtheintenttobeginIndependentSalesDirector-in-Qualification(DIQ)Program,anIndependentBeautyConsultantmust:•Beactive.•HaveachievedStarConsultantstatusinthepriorStarConsultantcontestquarter
ORhaveplacedaminimum$1,800inwholesaleSection1orderspostmarkedduringthecurrentStarConsultantcontestquarter.
•Have10ormoreactivepersonalteammembersinthemonthpriortofirstmonthofqualification.➣ Tocounttowardthisrequirement,noneoftheteammemberscanbeanyof
thefollowing: sthespouseoftheDIQ sthespouseofanyBeautyConsultant sacurrentDIQorcurrentSalesDirector sapersonalteammembersubmittinghercommitmentforminthesame
monthastheDIQ ➣ Ifoneofthepersonalteammemberssubmitsacommitmentform
inthesamemonthastheDIQ,theDIQwillneedtoreplaceherandhaveatleast11activepersonalteammembersinthemonthpriortothefirstmonthofqualification.
Additional Requirements Prior to Entering Sales Director-in-Qualification Program •BeingoodstandingwiththeCompany(whichincludes,butisnotlimitedto,
compliancewiththetermsoftheIndependentBeautyConsultantAgreementandpayinginfullanyaccountsreceivableshemayhavewiththeCompanyundercurrentorpreviousBeautyConsultantnumbers).
•SubmitanonlinecommitmentformavailableontheMaryKayInTouch®Websitefromthe8ththroughthe10thofeverymonth.Bysubmittinganonlinecommitmentform,theDIQwillknowimmediatelyifshehasbeenacceptedintotheSalesDirector-in-Qualificationprogram.Orsubmitanoriginalcommitmentformpostmarkedonorbeforethe1stofthemonth.(Example:IfaDIQwishestobeginSalesDirector-in-QualificationProgramJune1,hercommitmentformshouldbepostmarkedsometimeinMay,oratthelatest,June1.)
Independent Sales Director-in-QualificationAvenues of Income•Productsalesandreorders•Team-buildingcommissions•Team-buildingbonus
AcceptanceintotheSalesDirector-in-QualificationprogramisattheCompany’ssolediscretion.
Compensation•4%,9%or13%personalteamcommission•Team-buildingbonus
The following requirements are effective through December 2009:
Prior to Entering the Sales Director-in-Qualification ProgramInordertosubmitacommitmentformtotheCompanystatingtheintenttobeginIndependentSalesDirector-in-Qualification(DIQ)Program,anIndependentBeautyConsultantmust:•Beactive.•Haveeightormoreactivepersonalteammembersthemonthpriortothefirstmonthof
qualification.➣ Tocounttowardthisrequirement,noneoftheteammemberscanbeanyofthe
following: sthespouseoftheDIQ sthespouseofanyBeautyConsultant sacurrentDIQorcurrentSalesDirector sapersonalteammembersubmittinghercommitmentforminthesamemonth
astheDIQ ➣Ifoneofthepersonalteammemberssubmitsacommitmentforminthe
samemonthastheDIQ,theDIQwillneedtoreplaceherandhaveatleastnineactivepersonalteammembersinthemonthpriortothefirstmonthofqualification.
1312
sales director career pathsales director career path
15
The following two options for completing Sales Director-in-Qualification requirements are available for DIQs who debut through Jan. 1, 2010:
DIQ Qualification Requirements Option 1•ADIQmayqualifyasanIndependentSalesDirectorinone,two,threeorfourmonths,
basedonwhensheachievesthefollowing:➣ $16,000cumulativeunitwholesaleproduction➣ 30totalactiveunitmembers
sTocounttowardthisrequirement,noneoftheDIQ’steammemberscanbeanyofthefollowing: — thespouseoftheDIQ — thespouseofanyBeautyConsultant — acurrentDIQorcurrentSalesDirector
➣ $4,000minimumwholesaleunitproductioneachmonth,eveniftheDIQhasalreadyreached$16,000cumulativewholesaleproduction
•TheDIQ’sunitmembersmustcontributeatleast$12,000towardthe$16,000wholesaleproductionrequirement.
•ADIQmaycontributeupto$4,000inpersonalwholesaleSection1productiontowardthe$16,000cumulativeunitwholesaleproductionduringthequalificationperiod.
•ShouldtheDIQ’squalifyingunitfailtoreach30activemembersand/ortherequiredunitwholesaleproductionsalesamounts,theDIQhasnotqualifiedandmustsubmitanewcommitmentformtobeginqualificationagain(immediately,ifshechoosesandiseligible).TheDIQ’steammembers’recruitswillremainintheparentunit.
DIQ Qualification Requirements Option 2 •ADIQmayqualifyasanIndependentSalesDirectorinone,two,threeorfourmonths,
basedonwhensheachievesthefollowing:➣ $18,000cumulativeunitwholesaleproduction➣ 24totalactiveunitmembers
sTheDIQisconsideredoneofthe24activeunitmembers➣ Atleast10ofthe24totalactiveunitmembersmusthaveaminimum$600
cumulativepersonalwholesaleproductionduringthequalificationperiod sTheDIQisnotconsideredoneofthe10unitmembers
➣ $4,000minimumwholesaleunitproductioneachmonth,eveniftheDIQhasalreadyreached$18,000cumulativewholesaleproductionduringthe qualificationperiod
•TheDIQ’sunitmembersmustcontributeatleast$14,000towardthe$18,000wholesaleproductionrequirement.
•ADIQmaycontributeupto$4,000inpersonalwholesaleSection1productiontowardthe$18,000cumulativeunitwholesaleproductionduringthequalificationperiod.
14
•ShouldtheDIQ’squalifyingunitnotmeetalloftherequirements,theDIQhasnotqualifiedandmustsubmitanewcommitmentformtobeginqualificationagain(immediately,ifshechoosesandiseligible).TheDIQ’steammembers’recruitswillremainintheparentunit.
Additional Qualification (Option 1 and Option 2)•ThequalifyingunitiscomprisedoftheDIQandherpersonalteammembers,regardless
oftheirunitaffiliation(Exception:personalteammemberswhoalreadymaybeSalesDirectorsorinqualificationtobecomeaSalesDirector).Teammembers’recruitswhoseIndependentBeautyConsultantAgreementsareacceptedbytheCompanyonorafterthefirstdayofthemonthinwhichtheDIQbeginsSalesDirectorqualificationwillbemembersofthenewqualifyingunit.Teammembers’recruitswhoseIndependentBeautyConsultantAgreementswereacceptedbytheCompanypriortoherfirstmonthofqualificationremainintheparentunit.
•Spousesdonotcounttowardanyprogramexceptunitproductionandcommission.OnceonespousebecomesaSalesDirector,theotherspouseisnoteligibletobecomeaSalesDirector.TheSalesDirectorcommissionwillbepaidonthespouse’sorders.
•SalesDirectorisanindependentcontractorandnotanemployeeofMaryKayInc.TheSalesDirectorpositionisappointedatthesolediscretionofMaryKayInc.
The DIQ understands:•TheimportanceofattendingtheNewIndependentSalesDirectorEducationweek
designatedforherdebutingclasswhenshecompletestheSalesDirector-in-Qualificationprogram.
•IntheeventanyoneplacesanorderforaStarterKitand/orproductonbehalfofaBeautyConsultant,thefollowingapplies:➣ThepersonplacingtheordermusthavetheBeautyConsultant’sconsentpriorto
placingtheorder;➣ThepersonplacingtheordermustusetheBeautyConsultant’sfunds;and➣ThepersonplacingtheordermustbeinpossessionoftheBeautyConsultant’s
fundspriortoplacingtheorder.•TakingapostdatedcheckandplacinganorderforaBeautyConsultantwillnotcount.•ABeautyConsultantsellinganyone’sinventoryotherthanherown,thenplacingan
order,willnotcount.•TheDIQcannotsellherinventorytoaBeautyConsultantandtakeher/hismoneyto
placeanordertoreplacetheDIQ’sinventory.•IftheDIQuseshercreditcardtopayforaBeautyConsultant’sorder,theDIQmusthave
alreadyreceivedthecashfromtheBeautyConsultantbeforetheorderismailed,phonedin,placedonlineordeliveredtothebranch.
•TheDIQcannotplaceanorderforaBeautyConsultantwithher/hispromisetopaytheDIQback.
sales director career pathsales director career path
Independent Sales Director*Avenues of Income•Productsalesandreorders•Team-buildingcommissions•Leadership
Compensation•4%,9%or13%personalteamcommission
• Sales Director Personal Team-Building Bonus
➣ ASalesDirectorisentitledtoa$100SalesDirectorPersonalTeam-BuildingBonusforeachqualifiednewpersonalteammemberaddedtoherSalesUnit.AqualifiednewpersonalteammemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesaleSection1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.TheSalesDirectorPersonalTeam-BuildingBonusisearnedinthemonthinwhichthequalifiedteammember’sinitial$600wholesaleSection1orderisreceivedandacceptedbytheCompany.
➣ TheSalesDirectorPersonalTeam-BuildingBonuswillbepaidonthebasisofwholesaleordersandIndependentBeautyConsultantAgreementsreceivedandacceptedbytheCompanybythecloseofbusinesseachmonth.
• Sales Director Unit Volume Commission Schedule
monthly wholesale production commission
$4,000ormore 13%$0to$3,999 9%
1716
Special Considerations•ShouldaDIQsubmitacommitmentformthreetimeswithina12-monthperiod(each
timefailingtomeettherequirementstocompletetheprocess),shewillreceivealetterexplainingshehasonemoreopportunitytocompletetherequirements(herfourth).Afterreceivingtheletter,shemaydecidewhethertomakethatfourthattemptimmediately,afewmonthslateroryearslater,eitherunderhercurrentoranyfutureBeautyConsultantnumbers.Ifshedoesnotcompletetherequirementsonthefourthattempt,shewillhavetofollowatwo-monthbuildingplanasoutlinedinthelettershereceived.
•Thetwo-monthbuildingrequirementswillstillapplyshouldshechoosetoterminateherIndependentBeautyConsultantAgreementandbecomeanIndependentBeautyConsultantagainatsomefuturedate.
•IndependentBeautyConsultantswhoreturnmerchandisetotheCompanyforrepurchasearenoteligibletorejoinMaryKayasanIndependentBeautyConsultant.
•Formoreinformation,logontotheMaryKayInTouch®Websiteandselect“DIQProgram”underResources.
sales director career pathsales director career path
*ASalesDirectorisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.
1918
➣ ASalesDirectorisentitledtoaSalesDirectorUnitDevelopmentBonusof$500foreachmonthfiveormorequalified*newunitmembersareaddedtoherSalesUnit.
➣TheSalesDirectorUnitDevelopmentBonusisearnedinthemonthinwhichtheappropriatenumberofnewqualifiedunitmembers’initialminimum$600wholesaleSection1ordersarereceivedandacceptedbytheCompany.
• Star Consultant Bonus
➣ ASalesDirectorisentitledtoaStarConsultantBonusbasedonthenumberofStarConsultants**inherSalesUnitinacontestquarter:
number of star consultants** bonus
5to9 $30010to14 $40015+ $500
➣ InthecaseofanOffspringUnit,StarConsultantsintheOffspringUnitwillcountforboththeSeniorSalesDirectorandthenewSalesDirectorduringtheStarConsultantcontestquarterthatthedebuttakesplace.
Contest Bonus (effective through June 30, 2010)•ASalesDirectorisentitledtoacontestbonusof$1,000whensheachieves:
➣Cadillacqualificationorrequalification➣HigherCircleofAchievementorCircleofExcellencethanthepreviousyear(payable
withJulycommissionsreceivedinAugust).Forexample,ifyour2010unitcirclelevelishigherthanyour2009unitcirclelevel,you’llearnthebonus.
➣OntheMove➣Fabulous50sClub➣HonorsSociety
New Independent Sales Director Program Bonus•AnewSalesDirectorisentitledtoa$1,000NewSalesDirectorProgramBonuswhen
sheachieveseachNewSalesDirectorProgramchallenge.
• Sales Director Unit Volume Bonus
➣ ASalesDirectorisentitledtoaSalesDirectorUnitVolumeBonusof10percent(10%)ofthemonthlyWholesalePurchaseVolumeofSalesDirector’sSalesUnit,calculatedbasedonthestartingpointoftheapplicable$1,000tier,beginningatthe$5,000tier.Forexample:
monthly unit wholesale purchase volume bonus
$5,000to$5,999.99 $500$6,000to$6,999.99 $600$7,000to$7,999.99 $700$8,000to$8,999.99 $800$9,000to$9,999.99 $900$10,000to$10,999.99 $1,000$11,000to$11,999.99 $1,100$12,000to$12,999.99 $1,200$13,000to$13,999.99 $1,300$14,000to$14,999.99 $1,400$15,000to$15,999.99 $1,500$16,000to$16,999.99 $1,600$17,000to$17,999.99 $1,700$18,000to$18,999.99 $1,800$19,000to$19,999.99 $1,900$20,000to$20,999.99 $2,000$21,000to$21,999.99 $2,100$22,000to$22,999.99 $2,200$23,000to$23,999.99 $2,300$24,000to$24,999.99 $2,400$25,000to$25,999.99 $2,500Foreach$1,000increaseinmonthlyUnitWholesalePurchaseVolume,thebonusincreasesby$100.
➣Pleasenote,thisbonusscheduleistheoreticallyinfinitebeyondtheinitial$5,000to$5,999.99tier.Thatis,althoughthe$50,000to$50,999.99tierisnotreflectedintheexample,youwouldstillreceivea$5,000UnitVolumeBonusifyourmonthlyUnitWholesalePurchaseVolumefellbetween$50,000and$50,999.99.
• Sales Director Unit Development Bonus
➣ ASalesDirectorisentitledtoaSalesDirectorUnitDevelopmentBonusof$300 foreachmonththreeorfourqualified*newunitmembersareaddedtoherSalesUnitOR
sales director career pathsales director career path
*AqualifiedunitmemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesaleSection1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.
**A“StarConsultant”isonewhoplaceswiththeCompanyaminimumof$1,800inwholesaleSection1orderspostmarkedduringtheapplicableStarConsultantContestQuarter.“StarConsultantContestQuarter”is 1)Dec.16–March15;2)March16–June15;3)June16–Sept.15;and4)Sept.16–Dec.15.
Wellness Award Bonus Program •Aspecialcashawarddesignedtohelpoffsetexpensesassociatedwiththeneedsor
activitiesthatcontributetophysicalwellnessalthoughitcanbeusedinanywayyouchoose.➣ QualificationfortheWellnessAwardBonusisbasedonthepreviouscalendaryear’s
totalannualnetadjustedSection1unitwholesaleproduction.OnecheckwillbepaidinJanuaryofeachyear.SalesDirectorsmustqualifyeachyearforthisaward.
sales director’s total annual net adjusted wellness award unit wholesale production bonus
$60,000to$124,999 $750$125,000to$186,999 $1,200$187,000andabove $1,800
Note: Mary Kay Inc. does not provide health insurance coverage for independent sales force members. The Company recognizes, however, that rising costs associated with health care and other wellness activities are a concern for all. While the bonus can be used to offset costs associated with maintaining physical wellness, it is a cash award, payable in January of the year following the qualification year, for use at Sales Director’s discretion. In order to receive the bonus, a Sales Director must be in good standing with the Company on Dec. 31 of the qualification year.
rewards•EligibletowearSalesDirectorsuit•Directors Memo
•EligibletoorderSalesDirectorUnitSupportPackage•EligibletowearSalesDirectorpinandenhancer•EligibletoearntheuseofaSalesDirectorCareerCarorCashCompensationoption•EligibletoqualifyforquarterlyStarSalesDirectorrecognitionandyearlongconsistency
prizes•EligibleforWellnessAwardBonusProgram•EligibleforTermLifeInsuranceAwardandDisabilityAwardPrograms•EligibletoattendLeadershipConference•EligibletoqualifyforTopSalesDirectorTrip•Opportunitytopersonallyrecruitindesignatedinternationalmarkets
20
n business guidelines• Sales Director commissions and Sales Director bonuses are based on wholesale orders
and Independent Beauty Consultant Agreements received and accepted by the Company by the close of business each month.
• It is expected that a Sales Director maintain minimum unit production of $4,000 wholesale per month.
. . . . . . . . . . . .
independent sales director term life insurance award and disability award programs
• Sales Director Term Life Insurance Award Program
➣PaidlifeinsuranceisawardedtoqualifiedSalesDirectorsonJan.1ofeachyearbaseduponthepreviouscalendaryear’sannualnetadjustedunitwholesaleproduction.SalesDirectorsmustqualifyeachyearforthisaward.
➣Asanaward,thefairmarketvalueofSalesDirectorTermLifeInsuranceisincludedonIRSForm1099asincome.
sales director’s total annual net adjusted life insurance unit wholesale production coverage
$187,000andover $100,000$137,000to$186,999 $75,000$112,000to$136,999 $50,000$60,000to$111,999 $25,000$48,000to$59,999 $10,000
➣IndependentNationalSalesDirectorsreceive$200,000termlifeinsurancecoveragewith$100,000accidentaldeathanddismembermentcoverage.
• Sales Director Disability Award Program➣Undercertaincircumstances,theCompanyprovidesaone-yearshort-term
disabilityawardfortotallyandpermanentlydisabledSalesDirectorsbasedontheSalesDirector’saveragemonthlytax-reportablecommissionsforthe12monthsprecedingthedateoftotalandpermanentdisability.AspartofeligibilityfortheDisabilityAwardProgram,theSalesDirectormustterminateherIndependentSalesDirectorandIndependentBeautyConsultantAgreements.
Note: This is a brief description of the Sales Director Term Life Insurance Award and Disability Award Programs. All Sales Directors eligible for the Term Life Insurance Award will receive a notification of coverage and certificate providing the provisions of coverage each calendar year upon qualification. For complete details and guidelines, please refer to the Term Life Insurance Award and Disability Award Program brochure.
21
sales director career pathsales director career path
Independent Senior, Future Executive Senior, Executive Senior and Elite Executive Senior Sales DirectorAvenues of Income•Productsalesandreorders•Team-buildingcommissions•Leadership
Compensation
• Commission Schedule
personal unit monthly number of offspringwholesale production offspring units commission
Tier1$4,000to$11,999 OnetoThree 4.0% FourtoSix 4.5% Sevenormore 5.0%Tier2$12,000ormore OnetoThree 5.0% FourtoSix 5.5% Sevenormore 6.0%
Contest Bonus (effective through June 30, 2010)•ASeniorSalesDirectorisentitledtoacontestbonusof$500whenhernewoffspring
SalesDirectorachievesanyoneormoreofthefollowing:➣OntheMove➣Fabulous50sClub➣HonorsSociety
•TheSeniorSalesDirectormusthaveaminimumunitsizeof50atthetimeheroffspringSalesDirectorqualifiesforeachchallengetoreceivethebonus.(IfaSeniorSalesDirectordebutsoneormoreadditionaloffspringSalesDirectorsonetothree[1–3]monthspriortowhenheroffspringSalesDirectorreachesoneoftheseachievements,herunitmusthaveatleast30unitmembersatthetimetheoffspringSalesDirectorqualifiestoreceivethebonus.)
22 23
Qualification• Senior Sales Director:
Youmusthaveonetotwoactivefirst-lineoffspringSalesDirectors.•Future Executive Senior Sales Director:
Youmusthavethreetofouractivefirst-lineoffspringSalesDirectors.•Executive Senior Sales Director:
Youmusthavefivetosevenactivefirst-lineoffspringSalesDirectors.•Elite Executive Senior Sales Director:
Youmusthaveatleasteightactivefirst-lineoffspringSalesDirectors.
Special Considerations•GlobalLeadershipDevelopmentProgramoffspringsalesunitsareincludedforpurposes
ofcalculatingthenumberofoffspringunits.•ASeniorSalesDirector,FutureExecutiveSeniorSalesDirector,ExecutiveSeniorSales
DirectororanEliteExecutiveSeniorSalesDirectorshallbepaidattheTier2offspringcommissionratesforthreemonthsafterthedebutofanewU.S.offspringsalesunit.Thereafter,theSenior,FutureExecutiveSenior,ExecutiveSeniororEliteExecutiveSeniorSalesDirector’sU.S.personalsalesunit’smonthlywholesaleproductiondeterminesthetieratwhichoffspringsalesunitcommissionisearned.
•Forthe13%personalteamcommission,anExecutiveSeniororEliteExecutiveSeniorSalesDirectormaysubstituteonenewqualifiedpersonalteammemberforherpersonal$600wholesaleSection1production.(Inthiscase,atotalofsixorderingpersonalteammembers,oneofwhomisnewwith$600orgreaterwholesaleSection1production,isrequiredtoearnthe13%commission.)
sales director career pathsales director career path
2524
Independent National Sales Director*Qualification•IndependentEliteExecutiveSeniorSalesDirectorsmustpersonallycommunicatetheir
NationalSalesDirectorgoal/planwiththeirSalesDevelopmentDirectorpriortoenteringtheIndependentNationalSalesDirector-in-Qualification(NIQ)period.
•EliteExecutiveSeniorSalesDirectorsmustsubmitasignedNIQLetterofCommitmenttotheCompanyatthestartoftheirNIQperiod.
•InordertobeconsideredforacceptanceintotheNIQprogram,anIndependentEliteExecutiveSeniorSalesDirectormusthaveatotalof20offspringIndependentSalesDirectorshavingoneofthefollowingconfigurations:➣(12/3/8)12first-lineoffspringSalesDirectors,threeofwhomareSeniorSales
Directorsandatotalofeightsecond-lineoffspringSalesDirectors;or➣(11/3/9)11first-lineoffspringSalesDirectors,threeofwhomareSeniorSales
Directorsandatotalofninesecond-lineoffspringSalesDirectors;or➣(10/3/10)10first-lineoffspringSalesDirectors,threeofwhomareSeniorSales
Directorsandatotalof10second-lineoffspringSalesDirectors.➣Ineachofthefourconsecutivequalifyingmonths,thefirst-lineSalesDirectors
includingtheNIQ’spersonalunitmusthaveacombinedtotalofatleast$100,000inunitwholesaleproduction.TheNIQ’spersonalunitcancontributeupto$20,000unitwholesaleproductionofthe$100,000ineachofthefourqualifyingmonths.Unitwholesaleproductioninexcessof$100,000willcarryoverforonecalendarmonth.
➣Thesecond-lineunitsmusthaveacombinedtotalofatleast$50,000inunitwholesaleproductionineachofthefourqualifyingmonths.Allunitwholesaleproductioninexcessof$50,000willcarryoverforonecalendarmonth.
➣Eachofthe20qualifyingunits(12/8,11/9or10/10)ispermittedtofallbelowtheminimumunitwholesaleproductionrequirementof$4,000(ortheminimumunitproductionrequirementoftheirhomecountries,inthecaseofinternationaloffspringunits)onetimeduringthefour-monthqualifyingperiod.
➣Eachofthe20qualifyingunits(12/8,11/9or10/10)musthaveatleast30unitmembers(ortheminimumunitmembersbasedontheirhomecountryrequirements,inthecaseofinternationaloffspringunits)attheendofthefourthmonthoftheNIQperiod.
➣Anyadditionalfirst-orsecond-lineSalesDirectorsabovetherequirednumbermayalsocontributetotherequiredwholesaleproduction.
➣Internationaloffspringproduction(IOP)onfirst-orsecond-lineoffspringSalesDirectors/NationalSalesDirectorscancounttowardU.S.SalesDirectorswhoareenteringintoNIQ.IOPiscalculatedbasedonapercentageoftheamountfirst- orsecond-lineoffspringSalesDirectors/NationalSalesDirectorsinforeignmarketsdoabove(orbelow)theminimumproductionrequirementsasdefined bytheirhomecountries(i.e., actual local production ÷ local minimum unit production requirement = % of minimum unit production x U.S. minimum unit production = production credit in U.S. dollars).
Examplecalculation:125basicunits÷100basicunits=1.25x$4,000U.S.=$5,000U.S.
➣Eachofthequalifyingfirst-lineoffspringSalesDirectorsandsecond-lineoffspringSalesDirectorswillberequiredtomeetthefour-monthNIQqualificationrequirements,andeachqualifyingSeniorSalesDirectormusthaveatleastoneoffspringSalesDirectorthatwillberequiredtomeetthefour-monthNIQqualificationrequirementsasoutlinedabove.
Additional Qualification•TheNational-in-Qualificationperiodisfourconsecutivemonths.•YoumustbeeligibletoparticipateintheFamilySecurityProgram.TheFamilySecurity
ProgramprovidesprotectionforNSDsandtheirfamiliesthroughlifeinsurance,plusvaluableretirementanddisabilitybenefitstofurthersecurethefutureoftheNSDwhoelectstoparticipateandherfamily.➣YoumustdebutasanNSDbeforeyour60thbirthdayandremainanNSDfora
minimumoffiveyearstoqualifyfornormalorearlyretirementbenefits.➣IfyoudebutasanNSDonorafteryour60thbirthdayandbeforeyour65th
birthday,andremainanNSDforaminimumoffiveyears,youmayqualifyforlateretirementbenefits.
➣Youmayelecttoretireafter15yearsofNSDserviceandqualifyfornormalretirementbenefits.
sAfteroneyearofNSDservice,youmaybeeligiblefordisabilitybenefitsordeathbenefitsatareducedpercentage.
•WhenminimumrequirementstodebutasanIndependentNationalSalesDirectorhavebeenmet,appointmentisattheCompany’ssolediscretionafterreviewbytheNSDDebutReviewBoard.Appointmentisbasedonseveralfactors(e.g., Mary Kay image, ethics, integrity and loyalty to the Company, the programs and the marketing plan).
national sales director career pathnational sales director career path
*AnIndependentNationalSalesDirectorisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.
Special ConsiderationsDuringanyofthefourconsecutivequalifyingmonths,shouldthecombinedunitwholesaleproductionoftheNIQ’sfirst-lineoffspringSalesDirectorsand/orsecond-lineoffspringSalesDirectorsfallbelowtheminimumunitwholesaleproductionrequirement,theNIQhasnotqualifiedandmustexittheNIQprogram.Inordertobeconsideredforre-entryintotheNIQprogram,anIndependentEliteExecutiveSeniorSalesDirectormust:•PersonallycommunicatewiththeSalesDevelopmentDirectorassociatedwithher
Seminarareaherplantore-entertheNIQprogram.•BeingoodstandingwiththeCompany(whichincludes,butisnotlimitedto,compliance
withthetermsoftheIndependentBeautyConsultantAgreementandIndependentSalesDirectorAgreementandpayinginfullanyaccountsreceivableshemayhavewiththeCompanyundercurrentorpreviousBeautyConsultantnumbers).
•Haveatotalof20offspringIndependentSalesDirectorshavingoneoftheconfigurationsoutlinedunder“AdditionalQualification”(seePage25).
•InthemonthpriortoresubmittingasignedNIQLetterofCommitmenttotheCompany,eachofthe20qualifyingunits(12/8,11/9or10/10)musthaveatleast30unitmembersandaminimumunitwholesaleproductionrequirementof$4,000.
•Re-entryintoNIQisattheCompany’ssolediscretion.
Note: This information is intended to provide a nontechnical summary of the Family Security Program afforded to participating Independent National Sales Directors. The actual terms and conditions of the Family Security Program are contained in the program document “Mary Kay Inc. Family Security Program.” In the event of any conflict between the program document and this information, the program document shall prevail.
Compensation•Personal team commission of 4%, 9% or 13%
Forthe13%personalteamcommission,aNationalSalesDirectordoesnothaveanypersonalactivityrequirements,butisstillrequiredtohaveatleastfivepersonalteammemberseachplaceminimum$200wholesaleSection1orders.
•Sales Director personal unit volume commission of 13%•National Sales Director Commission
➣NSDpersonalunitvolumecommissionof10% sAnNSDmayelecttokeepherpersonalunitatthetimeshedebutsorforma
personalunitatalaterdateinordertodevelopadditionalfirst-lineoffspringunits.Shewillearna10%NSDcommissiononherpersonalunit’swholesalevolumeinadditiontoa13%SalesDirectorcommissiononthatunit’swholesaleproduction.
26
Independent National Sales Director Commission Schedule based on combined monthly nsd wholesale purchase volume commission
First-lineoffspringsalesunits 9%Second-lineoffspringsalesunits 4%Third-lineoffspringsalesunits 2%
➣ First-line new offspring Sales Director Bonus BonuseswillbepaidforthedevelopmentofSalesDirectorsfromNSD’spersonalunitaccordingtothefollowingschedule:
nsd bonus
Debut bonus:PaidattimeofoffspringSalesDirector’sdebut $5,000*
s PaidonlyonceperindividualSalesDirector
Wholesale production bonus:Paidat annualanniversaryofsameSalesDirector’s debutwhenoffspringSalesDirectorgenerates wholesaleproductionof$60,000ormore withinlast12months $1,000
s Tobeeligibleforthe$1,000first-lineSalesDirectoroffspringbonusbasedonwholesaleproduction,theNSDmusthavequalifiedtoearnthe$5,000first-lineSalesDirectoroffspringbonusforthedebutofthesameoffspringSalesDirector.
NSD Star Consultant Bonus•IndependentNationalSalesDirectorsareentitledtoa$3,000StarConsultantBonusfor
theirfirst100StarConsultantsandeachadditionalaccumulated100StarConsultantsdevelopedfromherStarConsultantPool.“StarConsultantPool”meansanNSD’spersonalunitandherunaffiliated*first-,second-andthird-lineoffspringsalesunits.StarConsultantguidelinesapply.
Special Note: In the case of an offspring NSD, Star Consultants in the offspring NSD’s area who were previously in the Senior NSD’s Star Consultant Pool will count for both the Senior NSD and the new NSD during the Star Consultant contest quarter that the debut takes place and the next Star Consultant Quarter.
27
national sales director career pathnational sales director career path
*AnaffiliatedU.S.SalesDirector,offspringunit,lineand/orareaisonethatisdirectlyassociatedwithanotheractiveoffspringNationalSalesDirector.
Top 10 Unaffiliated Fourth-Line and Beyond Sales Director Commission•A2%commissioncalculatedonthecombinedmonthlywholesalepurchasevolumeof
NSD’soffspringSalesDirectorsthatareunaffiliated*fourth-lineandbeyond.“Top10”meansthemonthlyranking1–10ofNSD’sunaffiliated*fourthlineandbeyondoffspringsalesunitsbasedonmonthlywholesalepurchasevolume.
Grand 5 Contest Bonus (effective through June 30, 2010)•ANationalSalesDirectorisentitledtoacontestbonusof$1,000whenanunaffiliated
U.S.SalesDirectorinherareaachievesanyoneormoreofthefollowing:➣Cadillacqualificationorrequalification➣HigherCircleofAchievementorCircleofExcellencethanthepreviousyear(payable
withJulycommissionsreceivedinAugust)➣OntheMove➣Fabulous50sClub➣HonorsSociety
. . . . . . . . . . . .
nsd motivation account
AspecialallowanceispaidtoNSDstohelpdefraysomeoftheexpensesrelatedtoprizes,awards,newsletters,telephonecalls,etc.,whichareassociatedwithanNSD’sactivitywithherunaffiliatedfourth-lineSalesDirectorsandbeyond.ThisallowanceisdeterminedattheendofJuneandpaidinJulyofthesameyearaccordingtothefollowingschedule.OnlyunaffiliatedoffspringunitsfromtheU.S.andGlobalLeadershipDevelopmentProgramareconsideredforthisaccount.
number of fourth line and below payment
1to20 $1,200 21to50 $2,400 51to100 $3,600 101+ $12,000
rewards•EligibletowearNationalSalesDirectorsuit•National News Notes
•NSDbracelet•Eligibletoqualifyforannualluxurytripforselfandspouse•EarntheuseofaCadillacorchoosetheCashCompensationoptionatarateof$1,400
permonthinlieuofthecar•FamilySecurityProgram•Opportunitytopersonallyrecruitindesignatedinternationalmarkets•TermLifeInsuranceAwardProgram•DisabilityAwardProgram•GreatFuturesProgram•NSDTreeofLifepin•LimousineserviceatSeminarAwardsNight
28 29
national sales director career pathnational sales director career path
Independent Senior National Sales Director and Independent Executive National Sales DirectorQualification• Senior National Sales Director:
YoumusthaveoneoffspringNationalSalesDirectorinanylineregardlessofdebutsequence.
• Executive National Sales Director: YoumusthaveatleastthreeoffspringNationalSalesDirectorsfromanyunaffiliatedlinewhodebutedasIndependentNationalSalesDirectorssubsequenttoyourdebutandforwhomyouareeligibletoreceivetheOffspringNSDDevelopmentBonus.
Compensation• Senior and Executive National Sales Director Commission
Schedule SeniorandExecutiveNationalSalesDirectorcommissionispayableasfollows:
nsd commission
First-lineoffspringSalesDirector whobecomesanNSD 9%
Second-lineoffspringSalesDirector whobecomesanNSD 4%
Third-lineoffspringSalesDirector whobecomesanNSD 2%
Thesepersonalunitcommissionsarepayableregardlessofdebutsequence,eveniftheoffspringNSDdebutedpriortotheSeniorNSD.Likewise,itdoesnotmatterifanotherNSDexistsbetweentheSeniorNSDandtheoffspringNSD.
• Offspring NSD Development Bonus Schedule➣ WhenanewoffspringNSDisdevelopedoutofanylineoftheNSD’sunaffiliated
area,theSeniorNSDisentitledtoa$10,000OffspringNSDDevelopmentBonusatthetimeofthenewoffspringNSD’sdebut,andannuallythereafterforsolongastheSeniorNSD’sAgreementisineffect.
➣ Thereshallonlybeone(1)recipientofthisbonus.Forpurposesofdeterminingtherecipientofthisbonus,theNSDofthenewoffspringNSDfour(4)monthspriortothenewoffspringNSD’sdebutreceivesthebonus.
Independent Elite Executive National Sales DirectorQualification• YoumusthaveatleastfiveoffspringNationalSalesDirectorsfromanylinewhodebuted
asIndependentNationalSalesDirectorssubsequenttoyourdebutandforwhoyouareeligibletoreceivetheOffspringNSDDevelopmentBonus.
CompensationInadditiontotheNational,SeniorNationalandExecutiveNationalSalesDirectorcompensationandrewards,anEliteExecutiveNationalSalesDirectoralsoiseligibletoreceivethefollowingcompensationandrewards:
➣ Elite Executive National Sales Director Fourth-Line Commission Schedule TheEliteExecutiveNationalSalesDirectorCommissionispayableonthewholesaleunitproductionofallfourth-lineoffspringsalesunits:
elite executive nsd commission
Allfourth-lineoffspringsalesunits 2%
rewards•EliteNSDDiamondBeepin
Special Considerations•WhenanIndependentNationalSalesDirectordebutsasaNationalSalesDirector
Emeritus,theIndependentBeautyConsultantsinherpersonalsalesunitaredispersedamongherfirst-lineSalesDirectors’units.TheydonotmoveupintoherIndependentSeniorNationalSalesDirectororSeniorSalesDirector’ssalesunit.Inaddition,anoffspringSalesDirectorofthedebutingNationalSalesDirectorEmerituswillnotreplacethedebutingNationalSalesDirectorEmeritusasafirst-lineoffspringsalesunitofherSeniorSalesDirectororSeniorNationalSalesDirector.
•AnIndependentNationalSalesDirectormaydispersetheBeautyConsultantsinherpersonalunitatanytimeintoherfirst-lineSalesDirectors’units.ShemaynotdispersetheBeautyConsultantsinherpersonalunitintoherfirst-lineNationalSalesDirectors’personalunit(s).
30 31
national sales director career pathnational sales director career path
career path commissions at–a–glance
Advance
Career path commissions at-a-glancen personal team commission schedule for active senior
beauty consultants and above:
commission on combinedqualification wholesale orders
Youhavefiveormorepersonalteammemberswho eachplaceminimum$200wholesaleSection1 ordersinamonth,andyoupersonallyplacea $600wholesaleSection1orderinthesamemonth 13%5ormoreactivepersonalteammembers 9%1to4activepersonalteammembers 4%
n team-building bonus
A$50team-buildingbonuswillbepaidtoStarTeamBuilders,TeamLeaders,FutureIndependentSalesDirectorsandSalesDirectors-in-Qualificationforeachqualified*personalteammemberbeginningwiththefourthpersonalteammember.
n independent sales director commission schedule:
Sales Director Unit Volume Commission Schedule monthly wholesale production commission
$4,000ormore 13%$0to$3,999 9%
Unit Volume Bonus Schedulemonthly unit wholesale purchase volume bonus
$5,000to$5,999.99 $500$6,000to$6,999.99 $600$7,000to$7,999.99 $700$8,000to$8,999.99 $800$9,000to$9,999.99 $900$10,000to$10,999.99 $1,000$11,000to$11,999.99 $1,100$12,000to$12,999.99 $1,200$13,000to$13,999.99 $1,300$14,000to$14,999.99 $1,400$15,000to$15,999.99 $1,500Foreach$1,000increaseinmonthlyUnitWholesalePurchaseVolume,thebonusincreasesby$100.
➣Pleasenote,thisbonusscheduleistheoreticallyinfinitebeyondtheinitial$5,000to$5,999.99tier.Thatis,althoughthe$50,000to$50,999.99tierisnotreflectedintheexample,youwouldstillreceivea$5,000UnitVolumeBonusifyourmonthlyUnitWholesalePurchaseVolumefellbetween$50,000and$50,999.99.
Unit Development BonusASalesDirectorisentitledtoaSalesDirectorUnitDevelopmentBonusof$300foreachmonththreeorfourqualified*newunitmembersareaddedtoherSalesUnitORaSalesDirectorUnitDevelopmentBonusof$500foreachmonthfiveormorequalified*newunitmembersareaddedtoherSalesUnit.
Sales Director Personal Team-Building BonusASalesDirectorisentitledtoa$100SalesDirectorPersonalTeam-BuildingBonusforeach“qualified”newpersonalteammemberaddedtoherSalesUnit.
Star Consultant BonusASalesDirectorisentitledtoaStarConsultantBonusbasedonthenumberofStarConsultantsinherSalesUnitinacontestquarter.
number of star consultants bonus
5to9 $30010to14 $40015+ $500
n independent senior sales director, future executive senior sales director, executive senior sales director and elite executive senior sales director commission schedule:personal unit monthly number of offspringwholesale production offspring units commission
Tier1$4,000to$11,999 OnetoThree 4.0% FourtoSix 4.5% Sevenormore 5.0%Tier2$12,000ormore OnetoThree 5.0% FourtoSix 5.5% Sevenormore 6.0%
*AqualifiedunitmemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesaleSection1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.
34 35
*AqualifiedteammemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesale Section1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendar monththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.
Offspring NSD Development Bonus
$10,000annualbonusonthedevelopmentofNSDoffspring
NSD Star Consultant Bonus
A$3,000bonuswillbepaidonNSD’spersonalunitandunaffiliated*first-,second-andthird-lineoffspringsalesunitsperStarConsultantcontestquarterforthefirst100StarConsultantsandeachadditionalaccumulated100StarConsultants.
*AnaffiliatedU.S.SalesDirector,offspringunit,lineand/orareaisonethatisdirectlyassociatedwithanotheractiveoffspringNationalSalesDirector.
n independent national sales director, senior national sales director, executive national sales director and elite executive national sales director commission schedule:based on monthly wholesale production nsdof each first-line offspring commission
First-lineunitswhoareunaffiliatedwithanoffspring NSDandthoseaffiliatedwithanoffspringNSD 9%Second-lineunitswhoareunaffiliatedwithanoffspring NSDandthoseaffiliatedwithanNSDoffspring 4%Third-line unitswhoareunaffiliatedwithanoffspring NSDandthoseaffiliatedwithanoffspringNSD 2%Top 10 fourth-lineunitsandbeyondwhoareunaffiliated withanoffspringNSD 2%
•Personalteamcommissionof4%,9%or13%•SalesDirectorpersonalunitvolumecommissionof13%•NSDpersonalunitvolumecommissionof10%
•EliteExecutiveNationalSalesDirectorfourth-linecommissionof2%
➣ First-line new offspring Sales Director Bonus BonuseswillbepaidforthedevelopmentofSalesDirectorsfromNSD’spersonalunitaccordingtothefollowingschedule: nsd bonus
Debut bonus:Paidattimeofoffspring SalesDirector’sdebut $5,000 s PaidonlyonceperindividualSalesDirector
Wholesale production bonus:Paidatannual anniversaryofsameSalesDirector’s debut whenoffspringSalesDirectorgenerates wholesaleproductionof$60,000 ormorewithinlast12months $1,000
s Tobeeligibleforthe$1,000first-lineSalesDirectoroffspringbonusbased onwholesaleproduction,theNSDmusthavequalifiedtoearnthe$5,000 first-lineSalesDirectoroffspringbonusforthedebutofthesameoffspringSalesDirector.
36 37
career car / cash compensation option
Advance
Grand Achiever Program(Effective through October 2009)
rewards• Independent Beauty Consultants ➣GrandAchieverCareerCarorCashCompensation* ➣GrandAchieverkeychainpresentedatSeminar
• Independent Sales Directors ➣CashCompensation ➣GrandAchieverkeychainpresentedatSeminar
On-Target•Fiveormoreactivepersonalteammembers•$4,000combinedpersonal/teamwholesaleSection1productioninacalendarmonth.
(Remember,ittakesanaverageof$4,500overfourmonthstoachievetherequired$18,000productionrequirement.)
•Youmustbeactive.•Theserequirementsmustbemeteachmonthtobeconsideredon-target.
(A team member who is the spouse of an Independent Beauty Consultant/Independent Sales Director or a team member of one of your personal team members will not count toward Grand Achiever Program qualification requirements, requalification requirements or maintenance requirements.)
Qualification•YoumayqualifyasaGrandAchieverinone,two,threeorfourmonths,basedonwhen
youachievethefollowing: ➣$18,000combinedpersonal/teamwholesaleSection1production ➣12activepersonalteammembers•Youmaycontributeupto$4,000inpersonalwholesaleSection1productiontowardthe
total$18,000requirement.•Yourteammustcontributeaminimumof$14,000wholesaleSection1production
towardthetotal$18,000requirement.
•Youmusthaveaminimumof$4,000combinedpersonal/teamwholesaleSection1productioneachmonthofthequalificationperiodwhilemaintainingfiveormoreactivepersonalteammembers.
•Youmustbeactive.
Maintenance Requirements•Teammaintenancestartsthemonthfollowingqualificationandcontinuesthroughthe
requalificationperiodaslongasminimummaintenancerequirementsaremet.•Minimumof$4,500netadjustedteamwholesaleproductionpermonth•Minimumoffiveactivepersonalteammembers•RemaincurrentonmoniesowedtheCompany.•Receive$600carprogramcredittowardtherequired$4,500netadjustedteam
wholesaleproductionpermonthforeachnewqualifiedpersonalteammember.•Ifproductionfallsbelowtheminimummonthlymaintenancerequirement,youmaybe
allowedtomaintaintherewardaslongasyouhavefiveormoreactivepersonalteammembersandsteadyimprovementismadetowardtheminimummonthlyproductionrequirement.
Performance Account and Momentum Month•Performanceaccountisutilizedtooffsetproductionshortfallsbelowthemonthly
minimummaintenancerequirementof$4,500netadjustedteamwholesaleproductionpermonthanddoesnotcounttowardon-targetstatusorrequalificationrequirements.
•Performanceaccountisestablishedafterqualificationwith$4,500wholesalebalance.•Your first month after qualification is your momentum month,andallproductionin
thismonth,includingcarprogramcredit,willbedoubled.•Eachmonth,productioninexcessoftherequired$4,500addstotheperformance
account;lessthantherequired$4,500depletestheperformanceaccount.•Maximumperformanceaccountbalancethatcanbecarriedforwardfrommonthto
monthis$13,500.
Grand Achiever Career Car (Beauty Consultants only)•GrandAchieverCareerCarisinlieuofCashCompensation.•IfyouchoosetheGrandAchieverCareerCar,youwillbeeligibletostartPremier
ClubqualificationsixmonthsfollowingyourGrandAchieverqualificationmonthorbyachieving$75,000innetadjustedunitwholesaleproductionwithintwoconsecutivecalendarquarters.
•Co-opleasepaymentisdueiftheperformanceaccountisdepletedandproductionfallsshortoftherequired$4,500netadjustedteamwholesaleproduction.
•Theco-opleasepaymentamountisdeterminedbytheGrandAchieverCo-opLeasePaymentScheduleonthefollowingpageandisdeductedfromthefollowingmonth’scommissioncheck.
40 41
*ToselecttheGrandAchieverCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceProgram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).IndependentBeautyConsultantsorIndependentSalesDirectorsinGuam,PuertoRicoortheU.S.VirginIslandswillreceiveCashCompensationonlyandwillnothavetheoptiontochoosetheuseofaGrandAchieverCareerCar.
grand achiever career car / cash compensation optiongrand achiever career car / cash compensation option
➣Performanceaccountbalancefollowingrequalificationisre-establishedafterqualificationwitha$4,500wholesalebalanceorthecurrentperformanceaccountbalance,whicheverisgreater.
•IndependentSalesDirector ➣RequalificationstartsthesixthquarterofpossessionforSalesDirectorGrand
Achiever/PremierClub/Cadillac. s Thesixthquarterofpossessionisthecalendarquarterthatincludesthe21st
monthafterqualification. ➣ForSalesDirectorGrandAchiever/PremierClub/Cadillacqualificationrequirements,
seePages49and55. sIfPremierClub/Cadillacqualificationrequirementsarenotmetbytheendof
youreighthquarterofpossession,youmayqualifyforGrandAchieverstatus(CashCompensationonly)byusingthelastfourmonthsofyourseventhandeighthquarters(seePage48).
Car Program Credit•Receive$600carprogramcreditforeachnewqualifiedpersonalteammember. ➣InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1
productsandmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.
•Carprogramcreditappliestowardtherequiredmaintenancerequirementsandrequalificationrequirements.
Independent Sales Director Unit Maintenance Option•TheGrandAchieverUnitMaintenanceoptionisavailabletoIndependentSales
DirectorswhoareinmaintenanceoftheirGrandAchieverrewardanddoesnoteffectGrandAchieverrewardoptions,on-targetrequirements,qualificationrequirementsorrequalificationrequirements.
•OncetheIndependentSalesDirectorswitchestotheGrandAchieverUnitMaintenanceProgram,shewillnotbeeligibletoswitchbacktotheGrandAchieverTeamMaintenanceProgram.
•IndependentSalesDirectorswhoarequalifiedorqualifyasGrandAchieverswillbeallowedtoswitchatthebeginningofacalendarquarterfromtheGrandAchieverTeamMaintenanceProgramtotheGrandAchieverUnitMaintenanceProgram.
•OncetheIndependentSalesDirectorswitchestotheGrandAchieverUnitMaintenanceProgram,theperformanceaccountisnolongerapplicable.TheIndependentSalesDirector’snetadjustedunitwholesaleproductionduringthequarterwilldeterminetheamountofanymonthlyco-opleasepaymentsorcashcompensationpaymentsinthefollowingquarter.
•Minimumof$20,000netadjustedunitwholesaleproductionpercalendarquarter
•Ifthecommissioncheckisnotsufficienttocovertheco-opleasepayment,thebalancemustbepaidtothebranchbythe21stofthecurrentmonth.
•ReturnofaCareerCarpriortotheendofthemaintenanceperiodmayimpactfutureeligibilityandrewardsundertheCareerCarprogram.
Grand Achiever Co-op Lease Payment Schedule (amounts subject to change)
monthly net adjusted team monthly lease wholesale production co-op payment
$4,500ormore -0-$3,500to$4,499 $93.75$2,500to$3,499 $187.50$1,500to$2,499 $281.25$0to$1,499 $375.00
Cash Compensation Option (Beauty Consultants and Sales Directors)•MonthlyCashCompensationisinlieuoftheGrandAchieverCareerCar.•FullCashCompensationispaideachmonthunlesstheperformanceaccountis
depletedandproductionfallsshortoftherequired$4,500netadjustedteamwholesaleproductionpermonth.
•TheCashCompensationpaymentamountisdeterminedbytheGrandAchieverCashCompensationPaymentSchedulebelowandpaidinthatmonth’scommissioncheckthatisreceivedinthemiddleofthefollowingmonth.
Grand Achiever Cash Compensation Payment Schedule (amounts subject to change)
monthly net adjusted team monthly cashwholesale production compensation
$4,500ormore $375.00$3,500to$4,499 $281.25$2,500to$3,499 $187.50$1,500to$2,499 $93.75$0to$1,499 -0-
Note: Cash Compensation payments begin with the commission check received in the second month following qualification.
Requalification•IndependentBeautyConsultant ➣Requalificationstartsthe21stmonthafterthequalificationmonth. ➣Sameasqualificationrules ➣$600carprogramcreditcountstowardrequiredproduction. ➣Performanceaccountbalancedoesnotcounttowardon-targetstatusor
requalificationrequirements.
grand achiever career car / cash compensation optiongrand achiever career car / cash compensation option
42 43
Grand Achiever Unit Cash Compensation Payment Schedule (amounts subject to change)
quarterly net adjusted unit monthly cash wholesale production compensation payment
$19,500andover $375.00$16,500to$19,499 $337.50$14,500to$16,499 $300.00$12,500to$14,499 $262.50$10,500to$12,499 $187.50$8,000to$10,499 $112.50$0to$7,999 -0-
Net Adjusted Team Wholesale Production•GrandAchievernetadjustedteamwholesaleproductionincludespersonalandteam
production,pluscarprogramcredit,plusanyamountsborrowedfromtheperformanceaccountbalance,lessanychargebacks.
Net Adjusted Unit Wholesale Production•AnIndependentSalesDirector’snetadjustedunitwholesaleproductionincludesunit
wholesaleproduction,pluscarprogramcredit,lessanychargebacks.
Beauty Consultant Grand Achiever Program (Effective November 2009)
rewards•GrandAchieverCareerCarorCashCompensation*•GrandAchieverkeychainpresentedatSeminar
On-Target•Fiveormoreactivepersonalteammembers•$5,000combinedpersonal/teamwholesaleSection1productioninacalendarmonth•Youmustbeactive.•Theserequirementsmustbemeteachmonthtobeconsideredon-target. (A team member who is the spouse of an Independent Beauty Consultant/Independent
Sales Director or a team member of one of your personal team members will not count toward Grand Achiever Program qualification requirements, requalification requirements or maintenance requirements.)
•Productioninexcessof$20,000ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
•$600carprogramcreditcountstowardrequiredproduction.•RemaincurrentonmoniesowedtheCompany.•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmay
beallowedtomaintaintherewardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.
Grand Achiever Career Car•Co-opleasepaymentisdueifproductionfallsbelow$19,000netadjustedunit
wholesaleproductionpercalendarquarter.•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandtheGrand
AchieverCareerCarUnitCo-OpLeasePaymentSchedulebelowdeterminethemonthlyco-opleasepaymentamountdueforthecurrentquarter.
•Ifthecommissioncheckisnotsufficienttocovertheco-opleasepayment,thebalancemustbepaidtothebranchbythe21stofthecurrentmonth.
•ReturnofaCareerCarpriortotheendofthemaintenanceperiodmayimpactfutureeligibilityandrewardsundertheCareerCarprogram.
Grand Achiever Unit Co-op Lease Payment Schedule (amounts subject to change)
quarterly net adjusted unit monthly lease wholesale production co-op payment
$19,500andover -0-$16,500to$19,499 $37.50$14,500to$16,499 $75.00$12,500to$14,499 $112.50$10,500to$12,499 $187.50$8,000to$10,499 $262.50$0to$7,999 $375.00
Cash Compensation Option•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarternet
adjustedunitwholesaleproductionandtheGrandAchieverCashCompensationUnitPaymentScheduleonthenextpage.
grand achiever career car / cash compensation optiongrand achiever career car / cash compensation option
44 45
*ToselecttheGrandAchieverCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceProgram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).IndependentBeautyConsultantsorIndependentSalesDirectorsinGuam,PuertoRicoortheU.S.VirginIslandswillreceiveCashCompensationonlyandwillnothavetheoptiontochoosetheuseofaGrandAchieverCareerCar.
Performance Account and Momentum Month•Performanceaccountisutilizedtooffsetproductionshortfallsbelowthemonthly
minimummaintenancerequirementof$5,000netadjustedteamwholesaleproductionpermonthanddoesnotcounttowardon-targetstatusorrequalificationrequirements.
•Performanceaccountisestablishedafterqualificationwith$5,000wholesalebalance.•Your first month after qualification is your momentum month, andallproduction
inthismonth,includingcarprogramcredit,willbedoubled.•Eachmonth,productioninexcessoftherequired$5,000addstotheperformance
account;lessthantherequired$5,000depletestheperformanceaccount.•Maximumperformanceaccountbalancethatcanbecarriedforwardfrommonthto
monthis$15,000.
Grand Achiever Career Car•GrandAchieverCareerCarisinlieuofCashCompensation.•Co-opleasepaymentisdueiftheperformanceaccountisdepletedandproductionfalls
shortoftherequired$5,000netadjustedteamwholesaleproduction.•Theco-opleasepaymentamountisdeterminedbytheGrandAchieverCo-opLease
PaymentSchedulebelowanddeductedfromthefollowingmonth’scommissioncheck.•Ifthecommissioncheckisnotsufficienttocovertheco-opleasepayment,thebalance
mustbepaidtothebranchbythe21stofthecurrentmonth.•ReturnofaCareerCarpriortotheendofthemaintenanceperiodmayimpactfuture
eligibilityandrewardsundertheCareerCarprogram.
Grand Achiever Team Co-op Lease Payment Schedule (amounts subject to change)
monthly net adjusted team monthly lease wholesale production co-op payment
$5,000ormore -0-$4,000to$4,999 $93.75$3,000to$3,999 $187.50$2,000to$2,999 $281.25$0to$1,999 $375.00
Cash Compensation Option•MonthlyCashCompensationisinlieuoftheGrandAchieverCareerCar.•FullCashCompensationispaideachmonthunlesstheperformanceaccountis
depletedandproductionfallsshortoftherequired$5,000netadjustedteamwholesaleproductionpermonth.
•TheCashCompensationpaymentamountisdeterminedbytheGrandAchieverTeamCashCompensationPaymentScheduleonthefollowingpageandpaidinthatmonth’scommissioncheckthatisreceivedinthemiddleofthefollowingmonth.
Qualification•YoumayqualifyasaGrandAchieverinone,two,threeorfourmonths,basedonwhen
youachievethefollowing:➣$20,000combinedpersonal/teamwholesaleSection1production➣14activepersonalteammembers
•Youmaycontributeupto$5,000inpersonalwholesaleSection1productiontowardthetotal$20,000requirement.
•Yourteammustcontributeaminimumof$15,000wholesaleSection1productiontowardthetotal$20,000requirement.
•Youmusthaveaminimumof$5,000combinedpersonal/teamwholesaleSection1productioneachmonthofthequalificationperiodwhilemaintainingfiveormoreactivepersonalteammembers.
•Youmustbeactive.
Maintenance Requirements•Teammaintenancestartsthemonthfollowingqualificationandcontinuesthroughthe
requalificationperiodaslongasminimummaintenancerequirementsaremet.•Minimumof$5,000netadjustedteamwholesaleproductionpermonth•Minimumoffiveactivepersonalteammembers•RemaincurrentonmoniesowedtheCompany.•Receive$600carprogramcredittowardtherequired$5,000netadjustedteam
wholesaleproductionpermonthforeachnewqualifiedpersonalteammember.•Ifproductionfallsbelowtheminimummonthlymaintenancerequirement,youmaybe
allowedtomaintaintherewardaslongasyouhavefiveormoreactivepersonalteammembersandsteadyimprovementismadetowardtheminimummonthlyproductionrequirement.
Independent Sales Director Unit Maintenance Option•AnIndependentSalesDirectorswhoqualifiesundertheBeautyConsultantGrand
AchieverProgramwillbeallowedtoswitchatthebeginningofacalendarquarterfromBeautyConsultantGrandAchieverTeamMaintenancetoSalesDirectorGrandAchieverUnitMaintenance.
•AnIndependentSalesDirectorwhoswitchestoSalesDirectorGrandAchieverUnitMaintenanceisnoteligibletoswitchbacktoBeautyConsultantGrandAchieverTeamMaintenance.
•ForcompleteSalesDirectorGrandAchieverUnitMaintenancerequirements,see Page49.
grand achiever career car / cash compensation optiongrand achiever career car / cash compensation option
46 47
Grand Achiever Team Cash Compensation Payment Schedule (amounts subject to change)
monthly net adjusted team monthly cashwholesale production compensation
$5,000ormore $375.00$4,000to$4,999 $281.25$3,000to$3,999 $187.50$2,000to$2,999 $93.75$0to$1,999 -0-
Note: Cash Compensation payments begin with the commission check received in the second month following qualification.
Requalification •Requalificationstartsthe21stmonthafterthequalificationmonth.•Sameasqualificationrules•$600carprogramcreditcountstowardrequiredproduction.•Performanceaccountbalancedoesnotcounttowardon-targetstatusorrequalification
requirements.•Performanceaccountbalancefollowingrequalificationisre-establishedafter
qualificationwitha$5,000wholesalebalanceor thecurrentperformanceaccountbalance,whicheverisgreater.
Car Program Credit•Receive$600carprogramcreditforeachnewqualifiedpersonalteammember.
➣InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1productsandmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.
•Carprogramcreditappliestowardtherequiredmaintenancerequirementsandrequalificationrequirements.
Sales Director Grand Achiever Program (Effective November 2009)
rewards ➣GrandAchieverCareerCarorCashCompensation* ➣GrandAchieverkeychainpresentedatSeminar
On-Target•$19,500netadjustedunitwholesaleproductioninonecalendarquarter.
Qualification•$39,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendar
quarters. Examples: Calendar Quarter 1 Quarter 2 Total NetWholesale$19,500 + $19,500 = $39,000 NetWholesale$18,000 + $21,000 = $39,000
•$600carprogramcreditcountstowardrequiredproduction.
Maintenance•Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyour
requalificationperiodaslongasminimummaintenancerequirementsaremet.•Minimumof$19,500netadjustedunitwholesaleproductionpercalendarquarter•Excessproductionfromthetwoqualifyingquartersover$39,000willcarryforward
tothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
•Productioninexcessof$19,500ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
•RemaincurrentonmoniesowedtheCompany.•$600carprogramcreditcountstowardrequiredproduction.•MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCashCompensation
foreightcalendarquarters,dependinguponthenetadjustedunitwholesaleproductionfromthepriorquarter.
•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmaybeallowedtomaintaintherewardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.
Grand Achiever Career Car•GrandAchieverCareerCarisinlieuofCashCompensation•Co-opleasepaymentisdueifproductionfallsbelow$19,000netadjustedunit
wholesaleproductionpercalendarquarter.•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandtheGrand
AchieverUnitCareerCarCo-opLeasePaymentScheduleonthefollowingpagedeterminethemonthlyco-opleasepaymentamountdueforthecurrentquarter.
•Ifthecommissioncheckisnotsufficienttocovertheco-opleasepayment,thebalancemustbepaidtothebranchbythe21stofthecurrentmonth.
•ReturnofaCareerCarpriortotheendofthemaintenanceperiodmayimpactfutureeligibilityandrewardsundertheCareerCarprogram.
48 49
grand achiever career car / cash compensation optiongrand achiever career car / cash compensation option
*ToselecttheGrandAchieverCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceProgram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).IndependentBeautyConsultantsorIndependentSalesDirectorsinGuam,PuertoRicoortheU.S.VirginIslandswillreceiveCashCompensationonlyandwillnothavetheoptiontochoosetheuseofaGrandAchieverCareerCar.
Car Program Credit •Receive$600carprogramcreditforeachnewqualifiedpersonalteammember.
➣ InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1products,anditmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.
•Carprogramcreditappliestowardtherequiredqualificationrequirements,maintenancerequirementsandrequalificationrequirements.
. . . . . . . . . . . .
net adjusted unit wholesale production
AnIndependentSalesDirector’snetadjustedunitwholesaleproductionincludesunitwholesaleproduction,pluscarprogramcredit,lessanychargebacks.
Grand Achiever Unit Co-op Lease Payment Schedule (amounts subject to change)
quarterly net adjusted unit monthly lease wholesale production co-op payment
$19,000andover -0-$16,000to$18,999 $37.50$14,000to$15,999 $75.00$12,000to$13,999 $112.50$10,000to$11,999 $187.50$8,000to$9,999 $262.50$0to$7,999 $375.00
Cash Compensation Option •CashCompensationisinlieuoftheGrandAchieverCareerCar.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarternet
adjustedunitwholesaleproductionandtheGrandAchieverUnitCashCompensationPaymentSchedulebelow.
Grand Achiever Unit Cash Compensation Payment Schedule (amounts subject to change)
quarterly net adjusted unit monthly cash wholesale production compensation
$19,000andover $375.00$16,000to$18,999 $337.50$14,000to$15,999 $300.00$12,000to$13,999 $262.50$10,000to$11,999 $187.50$8,000to$9,999 $112.50$0to$7,999 -0-Note: Cash Compensation payments begin with the commission check received in the fourth month following qualification.
Requalification •$39,000netadjustedunitwholesaleproductionduringthesixthandseventhquartersof
possessionorduringtheseventhandeighthquartersofpossession•$600carprogramcreditcountstowardrequiredproduction.•IfaSalesDirectorhasnotqualifiedbytheendofhereighthquarterofpossession,but
didachieve$19,500netadjustedunitwholesaleproductioninhereighthquarter(i.e.,ison-target),shemaycombinehereighthandninthquarterstorequalify.Note: Quarter of possession starts the quarter following qualification.
sales director career car / cash compensation optionsales director career car / cash compensation option
50 51
Premier Club ProgramEffective through October 2009
rewards•PremierClubCareerCar*orCashCompensation•PremierClubkeychainpresentedatSeminar
On-Target• $24,000netadjustedunitwholesaleproductioninonecalendarquarter
Qualification• $48,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendar
quarters.EXAMPLES:
Calendar Quarter 1 Quarter 2 Total NetWholesale$24,000 + $24,000 = $48,000 NetWholesale$21,000 + $27,000 = $48,000
• $600carprogramcreditcountstowardrequiredproduction.
Maintenance• Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyour
requalificationperiodaslongasminimummaintenancerequirementsaremet.• Minimumof$24,000netadjustedunitwholesaleproductionpercalendarquarter• Excessproductionfromthetwoqualifyingquartersover$48,000willcarryforward
tothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
• Productioninexcessof$24,000ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
• RemaincurrentonmoniesowedtheCompany.• $600carprogramcreditcountstowardrequiredproduction.• MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCashCompensation
foreightcalendarquarters,dependinguponthenetadjustedunitwholesaleproductionfromthepriorquarter.
•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmaybeallowedtomaintaintherewardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.
Premier Club Career Car•PremierClubCareerCarisinlieuofCashCompensation.•Co-opleasepaymentisdueifproductionfallsbelow$23,000netadjustedunit
wholesaleproductionpercalendarquarter.•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandthePremier
ClubCareerCarCo-opLeasePaymentSchedulebelowdeterminethemonthlyco-opleasepaymentamountdueforthecurrentquarter.
•Ifthecommissioncheckisnotsufficienttocovertheco-opleasepayment,thebalancemustbepaidtothebranchbythe21stofthecurrentmonth.
•ReturnofaCareerCarpriortotheendofthemaintenanceperiodmayimpactfutureeligibilityandrewardsundertheCareerCarprogram.
Premier Club Career Car Co-op Lease Payment Schedule (amounts subject to change)
quarterly net adjusted unit monthly leasewholesale production co-op payment
$23,000andover -0-$20,000to$22,999 $50$17,000to$19,999 $100$14,000to$16,999 $150$11,000to$13,999 $250$8,000to$10,999 $350$0to$7,999 $500
Cash Compensation Option •CashCompensationisinlieuofthePremierClubCareerCar.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarternet
adjustedunitwholesaleproductionandthePremierClubCashCompensationPaymentSchedulebelow.
Premier Club Cash Compensation Payment Schedule (amounts subject to change)
quarterly net adjusted unit monthly cashwholesale production compensation
$23,000andover $500$20,000to$22,999 $450$17,000to$19,999 $400$14,000to$16,999 $350$11,000to$13,999 $250$8,000to$10,999 $150$0to$7,999 -0-Note: Cash Compensation payments begin with the final commission check received in the fourth month following qualification.
sales director career car / cash compensation optionsales director career car / cash compensation option
52 53
*ToselectthePremierClubCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceProgram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).IndependentSalesDirectorsinGuam,PuertoRicoortheU.S.VirginIslandswillreceiveCashCompensationonlyandwillnothavetheoptiontochoosetheuseofaPremierClubCareerCar.
Requalification•$48,000netadjustedunitwholesaleproductionduringthesixthandseventhquartersof
possessionorduringtheseventhandeighthquartersofpossession•$600carprogramcreditcountstowardrequiredproduction.•IfaSalesDirectorhasnotqualifiedbytheendofhereighthquarterofpossession,but
didachieve$24,000netadjustedunitwholesaleproductioninhereighthquarter(i.e.,ison-target),shemaycombinehereighthandninthquarterstorequalify.
Note: Quarter of possession starts the second quarter following qualification.
Car Program Credit•Receive$600carprogramcreditforeachnewqualifiedpersonalteammember.
➣InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1products,anditmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.
•Carprogramcreditappliestowardtherequiredqualificationrequirements,maintenancerequirementsandrequalificationrequirements.
. . . . . . . . . . . .
net adjusted unit wholesale production
AnIndependentSalesDirector’snetadjustedunitwholesaleproductionincludesunitwholesaleproduction,pluscarprogramcredit,lessanychargebacks.
Premier Club (Effective November 2009)
rewards•PremierClubCareerCar*orCashCompensation•PremierClubkeychainpresentedatSeminar
On-Target• $27,000netadjustedunitwholesaleproductioninonecalendarquarter
Qualification• $54,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendar
quartersEXAMPLES:
Calendar Quarter 1 Quarter 2 Total NetWholesale$27,000 + $27,000 = $54,000 NetWholesale$25,000 + $29,000 = $54,000
• $600carprogramcreditcountstowardrequiredproduction.
Maintenance• Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyour
requalificationperiodaslongasminimummaintenancerequirementsaremet.• Minimumof$27,000netadjustedunitwholesaleproductionpercalendarquarter• Excessproductionfromthetwoqualifyingquartersover$54,000willcarry
forwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
• Productioninexcessof$27,000ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
• RemaincurrentonmoniesowedtheCompany.• $600carprogramcreditcountstowardrequiredproduction.• MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCash
Compensationforeightcalendarquarters,dependinguponthenetadjustedunitwholesaleproductionfromthepriorquarter.
•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmaybeallowedtomaintaintherewardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.
sales director career car / cash compensation optionsales director career car / cash compensation option
54 55
*ToselectthePremierClubCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceProgram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).IndependentSalesDirectorsinGuam,PuertoRicoortheU.S.VirginIslandswillreceiveCashCompensationonlyandwillnothavetheoptiontochoosetheuseofaPremierClubCareerCar.
Requalification•$54,000netadjustedunitwholesaleproductionduringthesixthandseventhquartersof
possessionorduringtheseventhandeighthquartersofpossession•$600carprogramcreditcountstowardrequiredproduction.•IfaSalesDirectorhasnotqualifiedbytheendofhereighthquarterofpossession,but
didachieve$27,000netadjustedunitwholesaleproductioninhereighthquarter(i.e.,ison-target),shemaycombinehereighthandninthquarterstorequalify.
Note: Quarter of possession starts the second quarter following qualification.
Car Program Credit•Receive$600carprogramcreditforeachnewqualifiedpersonalteammember.
➣InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1products,anditmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.
•Carprogramcreditappliestowardtherequiredqualificationrequirements,maintenancerequirementsandrequalificationrequirements.
. . . . . . . . . . . .
net adjusted unit wholesale production
AnIndependentSalesDirector’snetadjustedunitwholesaleproductionincludesunitwholesaleproduction,pluscarprogramcredit,lessanychargebacks.
Premier Club Career Car•PremierClubCareerCarisinlieuofCashCompensation.•Co-opleasepaymentisdueifproductionfallsbelow$26,000netadjustedunit
wholesaleproductionpercalendarquarter.•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandthePremier
ClubCarCo-opLeasePaymentSchedulebelowdeterminethemonthlyco-opleasepaymentamountdueforthecurrentquarter.
•Ifthecommissioncheckisnotsufficienttocovertheco-opleasepayment,thebalancemustbepaidtothebranchbythe21stofthecurrentmonth.
•ReturnofaCareerCarpriortotheendofthemaintenanceperiodmayimpactfutureeligibilityandrewardsundertheCareerCarprogram.
Premier Club Co-op Lease Payment Schedule (amounts subject to change)
quarterly net adjusted unit monthly leasewholesale production co-op payment
$26,000andover -0-$23,000to$25,999 $50$20,000to$22,999 $100$17,000to$19,999 $150$14,000to$16,999 $250$11,000to$13,999 $350$0to$10,999 $500
Cash Compensation Option •CashCompensationisinlieuofthePremierClubCareerCar.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarternet
adjustedunitwholesaleproductionandthePremierClubCashCompensationPaymentSchedulebelow.
Premier Club Cash Compensation Payment Schedule (amounts subject to change)
quarterly net adjusted unit monthly cashwholesale production compensation
$26,000andover $500$23,000to$25,999 $450$20,000to$22,999 $400$17,000to$19,999 $350$14,000to$16,999 $250$11,000to$13,999 $150$0to$10,999 -0-Note: Cash Compensation payments begin with the final commission check received in the fourth month following qualification.
sales director career car / cash compensation option sales director career car / cash compensation option
56 57
Pink Cadillac Programrewards•CadillacCareerCar*orCashCompensation•CadillackeychainpresentedatSeminar
On-Target•$48,000netadjustedunitwholesaleproductioninonecalendarquarter
Qualification•$96,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendar
quarters. EXAMPLES:
Calendar Quarter 1 Quarter 2 Total NetWholesale$48,000 + $48,000 = $96,000 NetWholesale$40,000 + $56,000 = $96,000•$600carprogramcreditcountstowardrequiredproduction.
Maintenance•Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyour
requalificationperiodaslongasminimummaintenancerequirementsaremet.•Minimumof$48,000netadjustedunitwholesaleproductionpercalendarquarter.•Excessproductionfromthetwoqualifyingquartersover$96,000willcarryforward
tothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
•Productioninexcessof$48,000ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
•RemaincurrentonmoniesowedtheCompany.•$600carprogramcreditcountstowardrequiredproduction.•MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCashCompensationfor
eightcalendarquarters,dependingupontheIndependentSalesDirector’snetadjustedunitwholesaleproductionfromthepriorquarter.
•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmaybeallowedtomaintaintheawardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.
Cadillac Career Car •CadillacisinlieuofCashCompensation.•Co-opleasepaymentisdueifproductionfallsbelow$45,000netadjustedunit
wholesaleproductionpercalendarquarter.•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandtheCadillac
Co-opLeasePaymentSchedulebelowdeterminethemonthlyco-opleasepaymentamountdueforthecurrentquarter.
•Ifthecommissioncheckisnotsufficienttocovertheco-opleasepayment,thebalancemustbepaidtothebranchbythe21stofthecurrentmonth.
•ReturnofaCareerCarpriortotheendofthemaintenanceperiodmayimpactfutureeligibilityandrewardsundertheCareerCarprogram.
Cadillac Co-op Lease Payment Schedule (amounts subject to change)quarterly net adjusted unit monthly co-opwholesale production lease payment
$45,000andover -0-$42,000to$44,999 $90$39,000to$41,999 $180$35,000to$38,999 $270$31,000to$34,999 $450$27,000to$30,999 $630$0to$26,999 $900
Cash Compensation Option •CashCompensationisinlieuoftheCadillac.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarter’s
netadjustedunitwholesaleproductionandtheCadillacCashCompensationPaymentSchedulebelow.
Cadillac Cash Compensation Payment Schedule (amounts subject to change)quarterly net adjusted unit monthly cashwholesale production compensation
$45,000andover $900$42,000to$44,999 $810$39,000to$41,999 $720$35,000to$38,999 $630$31,000to$34,999 $450$27,000to$30,999 $270$0to$26,999 -0-
Note: Cash Compensation payments begin with the final commission check received in the fourth month following qualification.
sales director career car / cash compensation option
58 59
*ToselecttheCadillacCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceProgram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).
Requalification•$96,000netadjustedunitwholesaleproductionduringthesixthandseventhquartersof
possessionorduringtheseventhandeighthquartersofpossession•$600carprogramcreditcountstowardrequiredproduction.•IfaSalesDirectorhasnotqualifiedbytheendofhereighthquarterofpossession,but
didachieve$48,000netadjustedunitwholesaleproductioninhereighthquarter(i.e.,ison-target),shemaycombinehereighthandninthquarterstorequalify.
Note: Quarter of possession starts the second quarter following qualification.
Car Program Credit•Receive$600carprogramcreditforeachnewqualifiedpersonalteammember.
➣InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1products,anditmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.
•Carprogramcreditappliestowardtherequiredqualificationrequirements,maintenancerequirementsandrequalificationrequirements.
. . . . . . . . . . . .
net adjusted unit wholesale production
AnIndependentSalesDirector’snetadjustedunitwholesaleproductionincludesunitwholesaleproduction,pluscarprogramcredit,lessanychargebacks.
n o t e s
60