career path and career car programThis is a brief description of the incentive programs in effect as of March 1, 2014. The Company reserves the right to alter, modify or change the commissions, bonuses or any terms of the incentive programs described herein.
Advance a proven program for achieving success
®
career path at-a-glance
5 61 2n as an independent
beauty consultant you could:
• Earn profits based on retail sales • Earnrewardstohelpyoubuildyour
business
n as a star consultant you could:
• Receivespecialrecognition• Earnfabulousprizes
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
$800,$1,300or$2,000• EarntheuseofaCareerCarorselect
CashCompensationoption
7 83 4 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
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-lineandbeyondunitsaffiliatedandunaffliatedwithNSDoffspring
•Earna$1,000and$5,000bonusfornewfirst-lineSalesDirectors
•Earn$10,000annualbonusfordevelop-mentofnewNSDoffspring
•Earn$200to$800quarterlyLeadership Developmentbonusonunitsin1st–3rd affiliatedandunaffiliatedarea
•EarntheuseofapinkCadillacwithachoiceofoptionsorselecttheCashCompensationoption
•EnrollintheFamilySecurityandGreatFuturesprograms
n in the career car program, you could earn the use of a:
• GrandAchieverCareerCar• PremierClubCareerCar(SalesDirector)• PinkCadillacCareerCar(SalesDirector
andNSD)• OrselecttheCashCompensationoption
inlieuofaCareerCar
beauty consultant career path
4
Independent Beauty Consultant*Avenues of Income •Productsalesandreorders
rewards•Mary Kay ® pin•Applause®magazine•EligibletoattendSeminarandCareerConference
•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes
n business guidelines• An Independent Beauty Consultant is considered “active” in the month a minimum $225
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 $450 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, 2014, her Earned Discount Privilege will apply until May 31, 2014. She will be eligible for the Earned Discount Privilege as long as she maintains "active" status.
*AnIndependentBeautyConsultantisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.
. . . . . . . . . . . .
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 ConsultantsbrochureorlogontotheMary Kay InTouch®website.
➣AnewBeautyConsultantalsocanearnafree†customizedcolorlook,valuedatmorethan$100suggestedretail,whenherinitialorderis$600ormoreinwholesaleSection1products,anditisreceivedandacceptedbytheCompanywithin15calendardaysofwhentheIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.
**AqualifiednewpersonalteammemberisonewhoseIndependentBeautyConsultantAgreementandaminimumof$600inwholesaleSection1ordersarepostmarkedandacceptedbytheCompanywithinthecontestquarter.Contestcreditisanycombinationofatleast$1,800inwholesaleSection1orders,plusqualifiednewpersonalteammembers.
†SalestaxisrequiredonthesuggestedretailvalueofSection1products.
beauty consultant career path
5
6
Senior Beauty ConsultantAvenues of Income•Productsalesandreorders•Team-buildingcommissions
Compensation•4%personalteamcommission
rewards•1ActivePersonalTeamMember:EligibletowearSeniorBeautyConsultantpinenhancer
•2ActivePersonalTeamMembers:Eligibletoorderredjacket•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes
Requirements•1to2activepersonalteammembers•Youmustbeactive.
. . . . . . . . . . . .
personal team commissions
AllactiveSeniorBeautyConsultantsandaboveareeligibletoearna4%,9%or 13%personalteamcommissiononthewholesaleordersplacedbytheirpersonal teammembers.
➣Whenyouhaveonetofouractivepersonalteammembers,youcanearna 4%commissiononteammembers’combinedwholesaleSection1ordersinanycalendarmonth.
➣Whenyouhavefiveormoreactivepersonalteammembers,youcanearna 9%commissiononteammembers’combinedwholesaleSection1ordersinanycalendarmonth.
➣Youcanincreaseyourcommissionto13%whenyouplaceapersonalminimum$600wholesaleSection1orderinthesamemonththatatleastfivepersonalteammemberseachplaceminimum$225wholesaleSection1orders.(See“SpecialConsiderations”forExecutiveSeniorSalesDirectorsandEliteExecutiveSeniorSalesDirectorsunderIndependentSenior,FutureExecutiveSenior,ExecutiveSeniorandEliteExecutiveSeniorSalesDirectorsection;andsee“PersonalTeamCommissionof4%,9%and13%”forNationalSalesDirectorsunderIndependentNationalSalesDirectorsection.)
beauty consultant career path
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.
beauty consultant career path
7
8
Star Team BuilderAvenues of Income•Productsalesandreorders•Team-buildingcommissions•Team-buildingbonus
Compensation•4%personalteamcommission•Team-buildingbonus
rewards•EligibletowearStarTeamBuilderpinenhancer•Eligibletowearredjacket•Receive$50rebateonthepurchaseoftheofficialredjacketavailableonlyfromMary KayInc.(Applicableonlyoninitialredjacketorder)
•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes
Requirements•3to4activepersonalteammembers•Youmustbeactive.
beauty 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.
beauty consultant career path
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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 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➣Musthave10ormoreactivepersonalteammembers;referto“Priortoentering
theSalesDirector-in-Qualificationprogram”underIndependentSalesDirector-in-Qualificationsectionfordetails.
•EligibletoqualifyforGrandAchieverstatus(GrandAchieverCareerCarorCashCompensationoption)
Requirements•8ormoreactivepersonalteammembers•Youmustbeactive.
*AchievingFutureIndependentSalesDirectorrecognitionstatusdoesnotguaranteeyouwillbecomeanIndependentSalesDirector.InordertobecomeanIndependentSalesDirector,youmustsuccessfullycompletetheIndependentSalesDirectorqualificationrequirementsassetforthbytheCompany.ASalesDirectorisanindependentcontractor,notanemployeeofMary KayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.TheSalesDirectorpositionisappointedatthesolediscretionofMaryKayInc.
beauty consultant career path
Independent Sales Director-in-QualificationAvenues of Income•Productsalesandreorders•Team-buildingcommissions•Team-buildingbonus
AcceptanceintotheSalesDirector-in-QualificationprogramisattheCompany’s solediscretion.
Compensation•4%,9%or13%personalteamcommission•Team-buildingbonus
Prior to Entering the Sales Director-in-Qualification Program InordertosubmitaCommitmentFormtotheCompanystatingtheintenttobeginIndependentSalesDirector-in-Qualification(DIQ)program,anIndependentBeautyConsultantmust:•Beactive.•HaveachievedStarConsultantstatusinthepriorStarConsultantcontestquarterORhaveplacedaminimum$1,800inwholesaleSection1orderspostmarkedduringthecurrentStarConsultantcontestquarter.(ForDIQpurposes,“currentStarConsultantquarter”isasoftheendofthemonthpriortosubmittingCommitmentForm.)
•Have10ormoreactivepersonalteammembersinthemonthpriortofirstmonth ofqualification.➣ Tocounttowardthisrequirement,noneoftheteammemberscanbeanyof
thefollowing: sthespouseoftheDIQ sthespouseofanyBeautyConsultant sacurrentDIQorcurrentSalesDirector sapersonalteammembersubmittingherCommitmentForminthesamemonth
astheDIQ ➣ IfoneofthepersonalteammemberssubmitsaCommitmentForminthe
samemonthastheDIQ,theDIQwillneedtoreplaceherandhaveatleast11activepersonalteammembersinthemonthpriortothefirstmonth ofqualification.
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sales director career path
Additional Requirements Prior to Entering the Sales Director-in-Qualification Program •BeingoodstandingwiththeCompany(whichincludes,butisnotlimitedto,compliancewiththetermsoftheIndependentBeautyConsultantAgreementandpayinginfullanyaccountsreceivableshemayhavewiththeCompanyundercurrentorpreviousBeautyConsultantnumbers).
•SubmitanonlineCommitmentFormavailableontheMary Kay InTouch® websitefromthe1stthroughthe3rdofeverymonth.BysubmittinganonlineCommitmentForm,theDIQwillknowimmediatelyifshehasbeenacceptedintotheSalesDirector-in-Qualificationprogram.OrsubmitanoriginalCommitmentFormpostmarkedonorbeforethe1stofthemonth.(Example:IfaDIQwishestobegintheSalesDirector-in-QualificationprogramJune1,herCommitmentFormshouldbepostmarkedsometimeinMay,oratthelatest,June1.)
DIQ Qualification Requirements •ADIQmayqualifyasanIndependentSalesDirectorinone,two,threeorfourmonths,basedonwhensheachievesthefollowing:➣ $18,000cumulativeunitwholesaleproduction➣ DIQmusthaveatleast$1,800incumulativepersonalwholesaleproduction➣ 24totalactiveunitmembers
sTheDIQisconsideredoneofthe24activeunitmembers➣ Atleast10ofthe24totalactiveunitmembersmusthaveaminimum$600
cumulativepersonalwholesaleproductionduringthequalificationperiod sTheDIQisnotconsideredoneofthe10unitmembers
➣ $4,000minimumwholesaleunitproductioneachmonth,eveniftheDIQhasalreadyreached$18,000cumulativewholesaleproductionduringthe qualificationperiod
•TheDIQ’sunitmembersmustcontributeatleast$14,000towardthe$18,000wholesaleproductionrequirement.
•ADIQmaycontributeupto$4,000inpersonalwholesaleSection1productiontowardthe$18,000cumulativeunitwholesaleproductionduringthequalificationperiod.
•ShouldtheDIQ’squalifyingunitnotmeetalloftherequirements,theDIQhasnotqualifiedandmustsubmitanewCommitmentFormtobeginqualificationagain(immediately,ifshechoosesandiseligible).TheDIQ’steammembers’recruitswillremainintheparentunit.
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sales director career path
Additional Qualification•ThequalifyingunitiscomprisedoftheDIQandherpersonalteammembers,regardlessoftheirunitaffiliation(Exception:personalteammemberswhoalreadymaybeSalesDirectorsorinqualificationtobecomeaSalesDirector).Teammembers’recruitswhoseIndependentBeautyConsultantAgreementsareacceptedbytheCompanyonorafterthefirstdayofthemonthinwhichtheDIQbeginsSalesDirectorqualificationwillbemembersofthenewqualifyingunit.Teammembers’recruitswhoseIndependentBeautyConsultantAgreementswereacceptedbytheCompanypriortoherfirstmonthofqualificationremainintheparentunit.
•Spousesdonotcounttowardanyprogramexceptunitproductionandcommission.OnceonespousebecomesaSalesDirector,theotherspouseisnoteligibletobecomeaSalesDirector.TheSalesDirectorcommissionwillbepaidonthespouse’sorders.
•SalesDirectorisanindependentcontractorandnotanemployeeofMaryKayInc.TheSalesDirectorpositionisappointedatthesolediscretionofMaryKayInc.
The DIQ understands:•TheimportanceofattendingtheNewIndependentSalesDirectorEducationweekdesignatedforherdebutingclasswhenshecompletestheSalesDirector-in-Qualificationprogram.
•IntheeventanyoneplacesanorderforaStarterKitand/orproductonbehalfofaBeautyConsultant,thefollowingapplies:➣ThepersonplacingtheordermusthavetheBeautyConsultant’sconsentpriorto
placingtheorder;➣ThepersonplacingtheordermustusetheBeautyConsultant’sfunds;and➣ThepersonplacingtheordermustbeinpossessionoftheBeautyConsultant’s
fundspriortoplacingtheorder.•TakingapostdatedcheckandplacinganorderforaBeautyConsultantwillnotcount.•ABeautyConsultantsellinganyone’sinventoryotherthanherown,thenplacinganorder,willnotcount.
•TheDIQcannotsellherinventorytoaBeautyConsultantandtakeher/hismoneytoplaceanordertoreplacetheDIQ’sinventory.
•IftheDIQuseshercreditcardtopayforaBeautyConsultant’sorder,theDIQmusthavealreadyreceivedthecashfromtheBeautyConsultantbeforetheorderismailed,phonedin,placedonlineordeliveredtothebranch.
•TheDIQcannotplaceanorderforaBeautyConsultantwithher/hispromisetopaytheDIQback.
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sales director career path
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Special Considerations•AnIndependentBeautyConsultantwhoreturnsmerchandisetotheCompanyforrepurchaseisnoteligibletorejoinMaryKayasanIndependentBeautyConsultant.
•Formoreinformation,logontotheMary Kay InTouch®websiteandselect“DIQprogram”underResources.
sales director career path
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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
$4,500ormore 13%$0to$4,499 9%
sales director career path
*ASalesDirectorisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.
• 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
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sales director career path
**AqualifiedunitmemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesaleSection1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.
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➣ ASalesDirectorisentitledtoaSalesDirectorUnitDevelopmentbonusof$500foreachmonthfiveormorequalified*newunitmembersareaddedtoherSalesUnit.
➣TheSalesDirectorUnitDevelopmentbonusisearnedinthemonthinwhichtheappropriatenumberofnewqualifiedunitmembers’initialminimum$600wholesaleSection1ordersarereceivedandacceptedbytheCompany.
• Star Consultant Bonus ➣ ASalesDirectorisentitledtoaStarConsultantbonusbasedonthenumberofStar
Consultants**inherSalesUnitinacontestquarter:
number of star consultants** bonus
5to9 $30010to14 $40015+ $500
➣ InthecaseofanOffspringUnit,StarConsultantsintheOffspringUnitwillcountforboththeSeniorSalesDirectorandthenewSalesDirectorduringtheStarConsultantcontestquarterthatthedebuttakesplace.
Cadillac Bonus ➣ASalesDirectorisentitledtoacontestbonusof$1,000whensheachieves
Cadillacqualificationorrequalification.Unit Circle Bonus
➣ASalesDirectorisentitledtoacontestbonusof$1,000whensheachievesahigherCircleofAchievementorCircleofExcellencethanthepreviousyear(payablewithJulycommissionsreceivedinAugust).Forexample,ifyour2014unitcirclelevelishigherthanyour2013unitcirclelevel,you’llearnthebonus.
New Independent Sales Director Program Bonus ➣AnewSalesDirectorisentitledtoa$1,000NewSalesDirectorprogrambonus
whensheachieveseachofthefollowingNewSalesDirectorprogramchallenges: •OntheMove
•Fabulous50sClub •HonorsSocietyIndependent Senior Sales Director Bonus
➣ASeniorSalesDirectorisentitledtoacontestbonusof$500whenhernewoffspringSalesDirectorachievesanyoneormoreofthefollowing: •OntheMove
•Fabulous50sClub •HonorsSociety ➣ TheSeniorSalesDirectormusthaveaminimumunitsizeof50atthetimeher offspringSalesDirectorqualifiesforeachchallengetoreceivethebonus.(Ifa SeniorSalesDirectordebutsoneormoreadditionaloffspringSalesDirectors onetothreemonthspriortowhenheroffspringSalesDirectorreachesoneof theseachievements,herunitmusthaveatleast30unitmembersatthetime theoffspringSalesDirectorqualifiestoreceivethebonus.)
sales director career path
* AqualifiedunitmemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesaleSection1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.
**A“StarConsultant”isonewhoplaceswiththeCompanyaminimumof$1,800inwholesaleSection1orderspostmarkedduringtheapplicableStarConsultantContestQuarter.“StarConsultantContestQuarter”is1)Dec.16–March15; 2)March16–June15;3)June16–Sept.15;and4)Sept.16–Dec.15. 19
Wellness Award bonus program •Aspecialcashawarddesignedtohelpoffsetexpensesassociatedwiththeneeds oractivitiesthatcontributetophysicalwellnessalthoughitcanbeusedinanyway youchoose.➣ QualificationfortheWellnessAwardbonusisbasedonthepreviouscalendaryear’s
totalannualnetadjustedSection1unitwholesaleproduction.OnecheckwillbepaidinJanuaryofeachyear.SalesDirectorsmustqualifyeachyearforthisaward.
sales director’s total annual net adjusted wellness award unit wholesale production bonus
$60,000to$124,999 $800$125,000to$186,999 $1,300$187,000andabove $2,000
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•EligibletoqualifyforquarterlyStarSalesDirectorrecognitionandyearlong consistencyprizes
•EligibleforWellnessAwardbonusprogram•EligibleforDisabilityAwardprogram•EligibletoattendLeadershipConference•EligibletoqualifyforTopSalesDirectorTrip•Opportunitytopersonallyrecruitindesignatedinternationalmarkets
sales director career path
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 $4,500 wholesale per month.
. . . . . . . . . . . .
independent sales director
• Sales Director Disability Award Program➣Undercertaincircumstances,theCompanyprovidesaone-yearshort-term
disabilityawardfortotallyandpermanentlydisabledSalesDirectorsbasedontheSalesDirector’saveragemonthlytax-reportablecommissionsforthe12monthsprecedingthedateoftotalandpermanentdisability.AspartofeligibilityfortheDisabilityAwardprogram,theSalesDirectormustterminateherIndependentSalesDirectorandIndependentBeautyConsultantAgreements.
Note: For additional program details and information regarding eligibility requirements, please contact Risk Management at 972-687-5744.
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sales 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$4,500to$11,999 Onetothree 4.0% Fourtosix 4.5% Sevenormore 5.0%Tier2$12,000ormore Onetothree 5.0% Fourtosix 5.5% Sevenormore 6.0%
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sales director career path
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•GlobalLeadershipDevelopmentprogramoffspringsalesunitsareincludedforpurposesofcalculatingthenumberofoffspringunits.
•ASeniorSalesDirector,FutureExecutiveSeniorSalesDirector,ExecutiveSeniorSalesDirectororanEliteExecutiveSeniorSalesDirectorshallbepaidattheTier2offspringcommissionratesforthreemonthsafterthedebutofanewU.S.offspringsalesunit.Thereafter,theSenior,FutureExecutiveSenior,ExecutiveSeniororEliteExecutiveSeniorSalesDirector’sU.S.personalsalesunit’smonthlywholesaleproductiondeterminesthetieratwhichoffspringsalesunitcommissionisearned.
•Forthe13%personalteamcommission,anExecutiveSeniororEliteExecutiveSeniorSalesDirectormaysubstituteonenewqualifiedpersonalteammemberforherpersonal$600wholesaleSection1production.(Inthiscase,atotalofsixorderingpersonalteammembers,oneofwhomisnewwith$600orgreaterwholesaleSection1production,isrequiredtoearnthe13%commission.)
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sales director career path
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Independent National Sales Director*QualificationCandidatesforthepositionofIndependentNationalSalesDirector(NSD)must:•Haveapersonalunitwithatleast24unitmembers.•Haveatotalof20offspringIndependentSalesDirectorshavingoneofthefollowingconfigurations:
➣(12/3/8)12first-lineoffspringSalesDirectors,threeofwhomareSeniorSalesDirectorsandatotalofeightsecond-lineoffspringSalesDirectors;or
➣(11/3/9)11first-lineoffspringSalesDirectors,threeofwhomareSeniorSalesDirectorsandatotalofninesecond-lineoffspringSalesDirectors;or
➣(10/3/10)10first-lineoffspringSalesDirectors,threeofwhomareSeniorSalesDirectorsandatotalof10second-lineoffspringSalesDirectors.
➣Eachofthe20qualifyingunits(12/8,11/9or10/10)musthaveatleast24unitmembers(or,inthecaseofinternationaloffspringunits,theminimumunitmembersbasedontheirhomecountryrequirements).
➣Ofthe20qualifyingunits,atleastsevenmustbePremierCluborCadillacqualifiersandatleastfivemustliveintheU.S.
➣ThepersonalunitofthecandidateforthepositionofNSDmustbeaCadillacCareerCarqualifier.
Special Considerations•AnIndependentEliteExecutiveSeniorSalesDirectorisencouragedtopersonallycommunicatewiththeSalesDevelopmentDirectorassociatedwithherSeminarareaherdesiretodebutasaIndependentNationalSalesDirectorfourtosixmonthspriortoherdesiredNSDdebutdate.ShealsomayfindithelpfultosharehergoalwithherNationalSalesDirectorwhocanprovidevaluablesupportandinsightonthebestwaytoensureasuccessfuldebut.
•AnewIndependentNationalSalesDirectormustachieveormaintainoneofthefollowingMinimumAreaSizesinordertoretainherNSDstatus:
➣Achievethe$125,000NSDcommissionleveloraboveinthepriorSeminaryear,or ➣Maintainatleasteightfirst-lineIndependentSalesDirectorsinherArea,or ➣Maintainatleast20offspringSalesDirectorsinherfirst–thirdlines,affiliated**
andunaffiliated.
national sales director career path
**AnaffiliatedU.S.SalesDirector,offspringunit,lineand/orareaisonethatisdirectlyassociatedwithanotheractiveoffspringNationalSalesDirector.
*AnIndependentNationalSalesDirectorisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.
•AnewIndependentNationalSalesDirectorisnotsubjecttotheseMinimumAreaSizesrequirementsforthefirst12monthsafterherdebut.Afterthis12monthgrowthperiod,ifanNSDfallsbelowalloftheMinimumArearequirements,theNSDwillhave12monthstore-establishoneofthethreeMinimumAreaSizerequirements.The12monthrebuildingperiodwillstartaccruingthefirstmonththattheNSDfailstosatisfyatleastoneofthethreeMinimumArearequirements.
Additional QualificationsInordertodebutasanNSD:•YoumustbeeligibletoparticipateintheFamilySecurityprogram.TheFamilySecurityprogramprovidesvaluableretirement,disabilityandsurvivors’benefitstoeligibleparticipatingNSDsandtheirfamilies.
➣YoumustdebutasanNSDbeforeyour60thbirthdaytoparticipateinGroupIIIoftheFamilySecurityprogram.
➣YoumustdebutasanNSDbeforeyour65thbirthdaytoparticipateinGroupVoftheFamilySecurityprogram.
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 plan document “Mary Kay Inc. Family Security program.” In the event of any conflict between the plan document and this information, the plan document shall prevail.
•WhenminimumrequirementstodebutasanIndependentNationalSalesDirectorhavebeenmet,appointmentisattheCompany’ssolediscretionafterreviewbytheNSDDebutReviewBoard.Appointmentisbasedonseveralfactors(e.g.,MaryKayimage,ethics,integrityandloyaltytotheCompany,theprogramsandthemarketingplan).
•BeingoodstandingwiththeCompany(whichincludes,butisnotlimitedto,compliancewiththetermsoftheIndependentBeautyConsultantAgreementandIndependentSalesDirectorAgreementandpayinginfullanyaccountsreceivableshemayhavewiththeCompanyundercurrentorpreviousBeautyConsultantnumbers).
Compensation•Team commission of 4%, 9% or 13% Forthe13%personalteamcommission,aNationalSalesDirectordoesnothaveanypersonalactivityrequirements,butisstillrequiredtohaveatleastfivepersonalteammemberseachplaceminimum$225wholesaleSection1orders.
•Sales Director personal unit volume commission of 13%•National Sales Director Commission
➣NSDpersonalunitvolumecommissionof10% sAnNSDmayelecttokeepherpersonalunitatthetimeshedebutsorforma
personalunitatalaterdateinordertodevelopadditionalfirst-lineoffspringunits.Shewillearna10%NSDcommissiononherpersonalunit’swholesalevolumeinadditiontoa13%SalesDirectorcommissiononthatunit’swholesaleproduction.
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national sales director career path
Independent National Sales Director Commission Schedule based on combined monthly nsd wholesale purchase volume commission
First-lineoffspringsalesunits 9%Second-lineoffspringsalesunits 4%Third-lineoffspringsalesunits 2%
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national sales director career path
➣ First-line new offspring Sales Director bonus BonuseswillbepaidforthedevelopmentofSalesDirectorsfromNSD’spersonalunitaccordingtothefollowingschedule:
nsd bonus
Debut bonus:PaidattimeofoffspringSalesDirector’sdebut(paidonlyonceperindividualSalesDirector) $5,000
•Theminimum20unitsrequiredtodebutasanewNationalSalesDirectormust beinplacebeforethefirst-lineoffspringSalesDirector$5,000bonuscan beearnedonanySalesDirectorswhodebutonthesamedayastheirNationalSalesDirector.
Wholesale production bonus:Paidat annualanniversaryofsameSalesDirector’s debutwhenoffspringSalesDirectorgenerates wholesaleproductionof$60,000ormore withinlast12months$1,000
s Tobeeligibleforthe$1,000first-lineoffspringSalesDirectorbonusbasedonwholesaleproduction,theNSDmusthavequalifiedtoearnthe$5,000 first-lineoffspringSalesDirectorbonusforthedebutofthesameoffspring SalesDirector.
NSD Area Leadership Development BonusAnNSDwillearnaquarterly(Dec.31,March31,June30andSept.30)LeadershipDevelopmentbonusontheunitsinher1st–3rdaffiliatedandunaffiliated*areamembersasfollows:•$200foreachSeniorSalesDirector •$300foreachFutureExecutiveSalesDirector •$500foreachExecutiveSeniorSalesDirector •$800foreachEliteExecutiveSeniorSalesDirector •$800foreachNationalSalesDirectorPersonalUnitSpecialnote:WhenanEliteExecutiveSeniorSalesDirectordebutsasaNationalSalesDirector,theSeniorNationalSalesDirectorwhoreceivesthe$10,000NSDOffspringDevelopmentbonuswillnolongerreceivethe$800quarterlybonuspaidonEliteExecutiveSeniorSalesDirectorsorNSDpersonalunits.
*AnaffiliatedU.S.SalesDirector,offspringunit,lineand/orareaisonethatisdirectlyassociatedwithanotheractiveoffspringNationalSalesDirector.
Top 10 Affiliated and Unaffiliated Fourth-Line and Beyond Sales Director Commission• A 2% commission calculated on the combined monthly wholesale purchase volume of
NSD’s offspring Sales Directors that are affiliated and unaffiliated* fourth-line and beyond. “Top 10” means the monthly ranking 1–10 of NSD’s affiliated and unaffiliated* fourth-line and beyond offspring sales units based on monthly wholesale purchase volume.
Grand 5 Contest bonus• A National Sales Director is entitled to a contest bonus of $1,000 when an unaffiliated
U.S. Sales Director in her area achieves any one or more of the following:➣ Cadillac qualification or requalification ➣ Higher Circle of Achievement or Circle of Excellence than the previous year (payable
with July commissions received in August)➣ On the Move➣ Fabulous 50s Club➣ Honors Society
. . . . . . . . . . . .
nsd motivation account
A special allowance is paid to NSDs to help defray some of the expenses related to prizes, awards, newsletters, telephone calls, etc., which are associated with an NSD’s activity with her unaffiliated fourth-line Sales Directors and beyond. This allowance is determined at the end of June and paid in July of the same year according to the following schedule. Only unaffiliated offspring units from the U.S. and Global Leadership Development program are considered for this account.
number of fourth line and below payment
1 to 20 $1,200 21 to 50 $2,400 51 to 100 $3,600 101 + $12,000
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national sales director career path
* An affiliated U.S. Sales Director, offspring unit, line and/or area is one that is directly associated with another active offspring National Sales Director.
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national sales director career path
rewards• Eligible to wear National Sales Director suit• National News Notes• NSD bracelet
• Eligible for annual luxury trip for self and spouse• Earn the use of a Cadillac or choose the Cash Compensation option at a rate of $1,400
per month in lieu of the car• Family Security program• Opportunity to personally recruit in designated international markets• Disability Award program• Great Futures program• Limousine service at Seminar Awards Ceremony
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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➣ ThefirsttimethatanindividualdebutsasanNSD,theSeniorNSD(whohasbeen
anNSDforatleastsix[6]months)fromwhoseunaffiliatedareatheoffspringNSDisdeveloped,isentitledtoa$10,000offspringNSDDebutbonusatthetimeofthenewoffspringNSD’sdebut.Thereshallonlybeone(1)recipientofthisbonus.Forpurposesofdeterminingtherecipientofthisbonus,theNSDofthenewoffspringNSDsix(6)monthspriortotheoffspringNSD’sdebut,receivesthebonus.
national sales director career path
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➣ TheSeniorNSDisentitledtoa$10,000offspringNSDAnniversarybonusannuallythereafterontheoffspringNSD’sdebutdateforsolongastheNationalSalesDirectorAgreements(“NSDAgreement”)ofboththeSeniorNSDandtheoffspringNSDremainineffect.Notwithstandinganythingtothecontrarycontainedherein,theSeniorNSDwillcontinuetoreceivetheoffspringNSDAnniversarybonusuntiltheterminationofherNSDAgreementiftheNSDAgreementofheroffspringNSDterminatedduetotheoffspring’sdeathorqualificationanddebutasan NSDEmeritus.
➣ IftheNSDAgreementofanOffspringNSDisterminated,buttheformeroffspringNSDlaterre-debutsasanNSD,theSeniorNSDatthetimeofthere-debutwillnotreceiveanoffspringNSDDebutbonus,whichisonlypaidthefirsttimeanindividualdebutsasanNSD.TheSeniorNSDatthetimeoftheNSD’sre-debutwillbeeligiblefortheannualoffspringNSDAnniversarybonusbasedonthere-debutdate,beginningonthefirstanniversaryoftheoffspringNSD’sre-debut.
national sales director career path
Independent Elite Executive National Sales Director
Qualification• YoumusthaveatleastfiveoffspringNationalSalesDirectorsfromanylinewhodebutedasIndependentNationalSalesDirectorssubsequenttoyourdebutandforwhomyouareeligibletoreceivetheOffspringNSDDevelopmentbonus.
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•WhenanIndependentNationalSalesDirectordebutsasaNationalSalesDirectorEmeritus,theIndependentBeautyConsultantsinherpersonalsalesunitaredispersedamongherfirst-lineSalesDirectors’units.TheydonotmoveupintoherIndependentSeniorNationalSalesDirectororSeniorSalesDirector’ssalesunit.Inaddition,anoffspringSalesDirectorofthedebutingNationalSalesDirectorEmerituswillnotreplacethedebutingNationalSalesDirectorEmeritusasafirst-lineoffspringsalesunitofherSeniorSalesDirectororSeniorNationalSalesDirector.
•AnIndependentNationalSalesDirectormayrequestthattheCompanydispersetheBeautyConsultantsinherpersonalunitatanytimeintoherfirst-lineSalesDirectors’units.ShemaynotdispersetheBeautyConsultantsinherpersonalunitintoherfirst-lineNationalSalesDirectors’personalunit(s).
national sales director career path
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n o t e s
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Advancecareer path commissions at-a-glance
Career path commissions at-a-glancen personal team commission schedule for active senior
beauty consultants and above:
commission on combinedqualification wholesale orders
Youhavefiveormorepersonalteammemberswho eachplaceminimum$225wholesaleSection1 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
$4,500ormore 13%$0to$4,499 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.
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*AqualifiedteammemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesale Section1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendar monththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.
➣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$4,500to$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.
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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:PaidattimeofoffspringSalesDirector’sdebut (unlessoffspringSalesDirectorpreviouslydebutedfrom anotherNSD’spersonalunit) $5,000
Wholesale production bonus:Paidatannual anniversaryofsameSalesDirector’s debut whenoffspringSalesDirectorgenerates wholesaleproductionof$60,000 ormorewithinlast12months $1,000
s Tobeeligibleforthe$1,000first-lineoffspringSalesDirectorbonusbased onwholesaleproduction,theNSDmusthavequalifiedtoearnthe$5,000 first-lineoffspringSalesDirectorbonusforthedebutofthesameoffspringSalesDirector.
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Offspring NSD Development bonus
$10,000annualbonusonthedevelopmentofNSDoffspring
•Referto“OffspringNSDDevelopmentbonusSchedule”underIndependentSeniorNationalSalesDirectorandIndependentExecutiveNationalSalesDirectorsection fordetails.
NSD Area Leadership Development Bonus
AnNSDwillearnaquarterly(Dec.31,March31,June30andSept.30)LeadershipDevelopmentbonusontheunitsinher1st–3rdaffiliatedandunaffiliated*areamembersasfollows:
•$200foreachSeniorSalesDirector •$300foreachFutureExecutiveSalesDirector •$500foreachExecutiveSeniorSalesDirector •$800foreachEliteExecutiveSeniorSalesDirector •$800foreachNationalSalesDirectorPersonalUnit
Specialnote:WhenanEliteExecutiveSeniorSalesDirectordebutsasaNationalSalesDirector,theSeniorNationalSalesDirectorwhoreceivesthe$10,000NSDOffspringDevelopmentbonuswillnolongerreceivethe$800quarterlybonuspaidonEliteExecutiveSeniorSalesDirectorsorNSDpersonalunits.
*AnaffiliatedU.S.SalesDirector,offspringunit,lineand/orareaisonethatisdirectlyassociatedwithanotheractiveoffspringNationalSalesDirector.
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career car / cash compensation option
Advance
38
*ToselecttheGrandAchieverCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceprogram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).IndependentBeautyConsultantsorIndependentSalesDirectorsinGuam,PuertoRicoortheU.S.VirginIslandswillreceiveCashCompensationonlyandwillnothavetheoptiontochoosetheuseofaGrandAchieverCareerCar.
grand achiever career car / cash compensation option
Grand Achiever ProgramBeauty Consultant Grand Achiever Program
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 on-target requirements, qualification requirements, requalification requirements or maintenance requirements.)
Qualification•YoumayqualifyasaGrandAchieverinone,two,threeorfourmonths,basedonwhenyouachievethefollowing:➣$20,000combinedpersonal/teamwholesaleSection1production➣14activepersonalteammembers
•Youmaycontributeupto$5,000inpersonalwholesaleSection1productiontowardthetotal$20,000requirement.
•Yourteammustcontributeaminimumof$15,000wholesaleSection1productiontowardthetotal$20,000requirement.
•Youmusthaveaminimumof$5,000combinedpersonal/teamwholesaleSection1productioneachmonthofthequalificationperiodwhilemaintainingfiveormoreactivepersonalteammembers.
•Youmustbeactive.
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grand achiever career car / cash compensation option
Maintenance Requirements•Teammaintenancestartsthemonthfollowingqualificationandcontinuesthroughtherequalificationperiodaslongasminimummaintenancerequirementsaremet.
•Minimumof$5,000netadjustedteamwholesaleproductionpermonth•Minimumoffiveactivepersonalteammembers•RemaincurrentonmoniesowedtheCompany.•Receive$600carprogramcredittowardtherequired$5,000netadjustedteamwholesaleproductionpermonthforeachnewqualifiedpersonalteammember.
•Ifproductionfallsbelowtheminimummonthlymaintenancerequirement,youmaybeallowedtomaintaintherewardaslongasyouhavefiveormoreactivepersonalteammembersandsteadyimprovementismadetowardtheminimummonthlyproductionrequirement.
Independent Sales Director Unit Maintenance Option•AnIndependentSalesDirectorswhoqualifiesundertheBeautyConsultantGrandAchieverprogramwillbeallowedtoswitchatthebeginningofacalendarquarterfromBeautyConsultantGrandAchieverTeamMaintenancetoSalesDirectorGrandAchieverUnitMaintenance.
•AnIndependentSalesDirectorwhoswitchestoSalesDirectorGrandAchieverUnitMaintenanceisnoteligibletoswitchbacktoBeautyConsultantGrandAchiever TeamMaintenance.
•ForcompleteSalesDirectorGrandAchieverUnitMaintenancerequirements,see“Maintenance”underSalesDirectorGrandAchieverprogram.
Performance Account and Momentum Month•Performanceaccountisutilizedtooffsetproductionshortfallsbelowthemonthlyminimummaintenancerequirementof$5,000netadjustedteamwholesaleproductionpermonthanddoesnotcounttowardon-targetstatusorrequalificationrequirements.
•Performanceaccountisestablishedafterqualificationwith$5,000wholesalebalance.•Your first month after qualification is your momentum month, andallproductioninthismonth,includingcarprogramcredit,willbedoubled.
•Eachmonth,productioninexcessoftherequired$5,000addstotheperformanceaccount;lessthantherequired$5,000depletestheperformanceaccount.
•Maximumperformanceaccountbalancethatcanbecarriedforwardfrommonthtomonthis$15,000.
Grand Achiever Career Car•GrandAchieverCareerCarisinlieuofCashCompensation.•Co-opleasepaymentisdueiftheperformanceaccountisdepletedandproductionfallsshortoftherequired$5,000netadjustedteamwholesaleproduction.
grand achiever career car / cash compensation option
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•Theco-opleasepaymentamountisdeterminedbytheGrandAchieverTeamCo-opLeasePaymentSchedulebelowanddeductedfromthefollowingmonth’scommissioncheck.
•Ifthecommissioncheckisnotsufficienttocovertheco-opleasepayment,thebalancemustbepaidtothebranchbythe21stofthecurrentmonth.
•ReturnofaCareerCarpriortotheendofthemaintenanceperiodmayimpactfutureeligibilityandrewardsundertheCareerCarprogram.
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
Note: Co-op lease payments begin with the month in which you take delivery of the Career Car unless delivery is taken the last few days of the month in which case co-op lease payments begin the following month.
Cash Compensation Option•MonthlyCashCompensationisinlieuoftheGrandAchieverCareerCar.•FullCashCompensationispaideachmonthunlesstheperformanceaccountisdepletedandproductionfallsshortoftherequired$5,000netadjustedteamwholesaleproductionpermonth.
•TheCashCompensationpaymentamountisdeterminedbytheGrandAchieverTeamCashCompensationPaymentSchedulebelowandpaidinthatmonth’scommissioncheckthatisreceivedinthemiddleofthefollowingmonth.
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.
grand achiever career car / cash compensation option
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Requalification •Requalificationstartsthe21stmonthafterthequalificationmonth.•Sameasqualificationrules•$600carprogramcreditcountstowardrequiredproduction.•Performanceaccountbalancedoesnotcounttowardon-targetstatusorrequalificationrequirements.
•Performanceaccountbalancefollowingrequalificationisre-establishedafterqualificationwitha$5,000wholesalebalanceor thecurrentperformanceaccountbalance,whicheverisgreater.
Car Program Credit•Receive$600carprogramcreditforeachnewqualifiedpersonalteammember.
➣InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1productsandmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreement wasreceivedandacceptedbytheCompany.
•Carprogramcreditappliestowardtherequiredmaintenancerequirementsandrequalificationrequirements.
. . . . . . . . . . . .
net adjusted unit wholesale production
AnIndependentSalesDirector’snetadjustedunitwholesaleproductionincludesunitwholesaleproduction,pluscarprogramcredit,lessanychargebacks.
grand achiever career car / cash compensation option
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*ToselecttheGrandAchieverCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceprogram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).IndependentBeautyConsultantsorIndependentSalesDirectorsinGuam,PuertoRicoortheU.S.VirginIslandswillreceiveCashCompensationonlyandwillnothavetheoptiontochoosetheuseofaGrandAchieverCareerCar.
Sales Director Grand Achiever Program
rewards •GrandAchieverCareerCarorCashCompensation* •GrandAchieverkeychainpresentedatSeminar
On-Target•$19,500netadjustedunitwholesaleproductioninonecalendarquarter.
Qualification•$39,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendarquarters. Examples: Calendar Quarter 1 Quarter 2 Total NetWholesale$19,500 + $19,500 = $39,000 NetWholesale$18,000 + $21,000 = $39,000
•$600carprogramcreditcountstowardrequiredproduction.
Maintenance•Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyourrequalificationperiodaslongasminimummaintenancerequirementsaremet.
•Minimumof$19,500netadjustedunitwholesaleproductionpercalendarquarter•Excessproductionfromthetwoqualifyingquartersover$39,000willcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
•Productioninexcessof$19,500ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
•RemaincurrentonmoniesowedtheCompany.•$600carprogramcreditcountstowardrequiredproduction.•MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCashCompensationforeightcalendarquarters,dependinguponthenetadjustedunitwholesaleproductionfromthepriorquarter.
•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmaybeallowedtomaintaintherewardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.
grand achiever career car / cash compensation option
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Grand Achiever Career Car•GrandAchieverCareerCarisinlieuofCashCompensation•Co-opleasepaymentisdueifproductionfallsbelow$19,000netadjustedunitwholesaleproductionpercalendarquarter.
•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandtheGrandAchieverUnitCareerCarCo-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
$19,000andover -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 $375.00Note: Co-op lease payments begin with the month in which you take delivery of the Career Car unless delivery is taken the last few days of the month in which case co-op lease payments begin the following month.
Cash Compensation Option •CashCompensationisinlieuoftheGrandAchieverCareerCar.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarternetadjustedunitwholesaleproductionandtheGrandAchieverUnitCashCompensationPaymentScheduleonnextpage.
grand achiever career car / cash compensation option
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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 •$39,000netadjustedunitwholesaleproductionduringthesixthandseventhquartersofpossessionorduringtheseventhandeighthquartersofpossession
•$600carprogramcreditcountstowardrequiredproduction.•IfaSalesDirectorhasnotqualifiedbytheendofhereighthquarterofpossession,butdidachieve$19,500netadjustedunitwholesaleproductioninhereighthquarter(i.e.,ison-target),shemaycombinehereighthandninthquarterstorequalify.Note: Quarter of possession starts the quarter following qualification.
Car Program Credit •Receive$600carprogramcreditforeachnewqualifiedpersonalteammember.
➣ InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1products,anditmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.
•Carprogramcreditappliestowardtherequiredqualificationrequirements,maintenancerequirementsandrequalificationrequirements.
. . . . . . . . . . . .
net adjusted unit wholesale production
AnIndependentSalesDirector’snetadjustedunitwholesaleproductionincludesunitwholesaleproduction,pluscarprogramcredit,lessanychargebacks.
sales director career car / cash compensation option
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*ToselectthePremierClubCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceprogram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).IndependentBeautyConsultantsorIndependentSalesDirectorsinGuam,PuertoRicoortheU.S.VirginIslandswillreceiveCashCompensationonlyandwillnothavetheoptiontochoosetheuseofaGrandAchieverCareerCar.
Premier Club Programrewards•PremierClubCareerCar*orCashCompensation•PremierClubkeychainpresentedatSeminar
On-Target• $27,000netadjustedunitwholesaleproductioninonecalendarquarter
Qualification• $54,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendarquarters
EXAMPLES: Calendar Quarter 1 Quarter 2 Total NetWholesale$27,000 + $27,000 = $54,000 NetWholesale$25,000 + $29,000 = $54,000
• $600carprogramcreditcountstowardrequiredproduction.
Maintenance• Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyourrequalificationperiodaslongasminimummaintenancerequirementsaremet.
• Minimumof$27,000netadjustedunitwholesaleproductionpercalendarquarter• Excessproductionfromthetwoqualifyingquartersover$54,000willcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
• Productioninexcessof$27,000ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
• RemaincurrentonmoniesowedtheCompany.• $600carprogramcreditcountstowardrequiredproduction.• MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCashCompensationforeightcalendarquarters,dependinguponthenetadjustedunitwholesaleproductionfromthepriorquarter.
•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmaybeallowedtomaintaintherewardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.
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sales director career car / cash compensation option
Premier Club Career Car•PremierClubCareerCarisinlieuofCashCompensation.•Co-opleasepaymentisdueifproductionfallsbelow$26,000netadjustedunitwholesaleproductionpercalendarquarter.
•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandthePremierClubCarCo-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
Note: Co-op lease payments begin with the month in which you take delivery of the Career Car unless delivery is taken the last few days of the month in which case co-op lease payments begin the following month.
Cash Compensation Option •CashCompensationisinlieuofthePremierClubCareerCar.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarternetadjustedunitwholesaleproductionandthePremierClubCashCompensationPaymentScheduleonnextpage.
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sales director career car / cash compensation option
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.
Requalification•$54,000netadjustedunitwholesaleproductionduringthesixthandseventhquartersofpossessionorduringtheseventhandeighthquartersofpossession
•$600carprogramcreditcountstowardrequiredproduction.•IfaSalesDirectorhasnotqualifiedbytheendofhereighthquarterofpossession,butdidachieve$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.
sales director career car / cash compensation option
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*ToselecttheCadillacCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceprogram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).
Pink Cadillac Programrewards•CadillacCareerCar*orCashCompensation•CadillackeychainpresentedatSeminar
On-Target•$48,000netadjustedunitwholesaleproductioninonecalendarquarter
Qualification•$96,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendarquarters. EXAMPLES:
Calendar Quarter 1 Quarter 2 Total NetWholesale$48,000 + $48,000 = $96,000 NetWholesale$40,000 + $56,000 = $96,000•$600carprogramcreditcountstowardrequiredproduction.
Maintenance•Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyourrequalificationperiodaslongasminimummaintenancerequirementsaremet.
•Minimumof$48,000netadjustedunitwholesaleproductionpercalendarquarter.•Excessproductionfromthetwoqualifyingquartersover$96,000willcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
•Productioninexcessof$48,000ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.
•RemaincurrentonmoniesowedtheCompany.•$600carprogramcreditcountstowardrequiredproduction.•MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCashCompensationforeightcalendarquarters,dependingupontheIndependentSalesDirector’snetadjustedunitwholesaleproductionfromthepriorquarter.
•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmaybeallowedtomaintaintheawardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.
sales director career car / cash compensation option
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Cadillac Career Car •CadillacisinlieuofCashCompensation.•Co-opleasepaymentisdueifproductionfallsbelow$47,000netadjustedunitwholesaleproductionpercalendarquarter.
•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandtheCadillacCo-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
$47,000andover -0-$44,000to$46,999 $90$41,000to$43,999 $180$37,000to$40,999 $270$33,000to$36,999 $450$29,000to$32,999 $630$0to$28,999 $900
Note: Co-op lease payments begin with the month in which you take delivery of the Career Car unless delivery is taken the last few days of the month in which case co-op lease payments begin the following month.
Cash Compensation Option •CashCompensationisinlieuoftheCadillac.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarter’snetadjustedunitwholesaleproductionandtheCadillacCashCompensationPaymentScheduleonnextpage.
sales director career car / cash compensation option
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Cadillac Cash Compensation Payment Schedule (amounts subject to change)quarterly net adjusted unit monthly cashwholesale production compensation
$47,000andover $900$44,000to$46,999 $810$41,000to$43,999 $720$37,000to$40,999 $630$33,000to$36,999 $450$29,000to$32,999 $270$0to$28,999 -0-
Note: Cash Compensation payments begin with the final commission check received in the fourth month following qualification.
Requalification•$96,000netadjustedunitwholesaleproductionduringthesixthandseventhquartersofpossessionorduringtheseventhandeighthquartersofpossession
•$600carprogramcreditcountstowardrequiredproduction.•IfaSalesDirectorhasnotqualifiedbytheendofhereighthquarterofpossession,butdidachieve$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
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© 2014 MARY KAY INC. Rev. 3/14 WN343309 PRINTED IN U.S.A.
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