GLOSSARY OF SALES TERMS - U.S.

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1 - U.S. Here are some of the most common words you will hear, see and say as a Beautycounter Consultant. ACTIVE CONSULTANT An Active Consultant is a Consultant in good standing with the company, who satisfies the minimum requirement of 1,200 in Qualifying Volume (QV) and 250 New Volume (NV) every 6 months. See. Qualifying Volume and New Volume. ANNIVERSARY DATE An Anniversary Date is one year from the day a person registers or renews as a Consultant or a Member of Band of Beauty. The Anniversary Date stays with the Consultant s or Member s ID as long as that ID is valid. AUTOSHIP Autoship allows a Member or Consultant to place a standing Beautycounter order to be shipped at regular intervals and automatically billed to a credit card on file. Autoship orders can be scheduled to ship every 30 or 60 days, and can be changed without penalty. Autoship customers receive shipment notifications 7 days prior to shipment, and will receive alerts 60 days and 30 days before the credit card on file is scheduled to expire. BRANCH A Branch is built when a Consultant recruits another Consultant to be on their team. The Branch grows when the recruited Consultant adds Consultants to their team. BUSINESS VOLUME (BV) Business Volume is a Consultant s Qualifying Volume (QV) plus the total Qualifying Volume generated by her Team. See Qualifying Volume and Team. 1.

2 CALENDAR MONTH A calendar month is one of the standard months, January through December. Beautycounter uses a calendar month to calculate and pay Commissions, Bonuses and Overrides, rather than a business period with a fixed number of days or weeks. CLIENT A Beautycounter Client is a customer who purchases Beautycounter products at full retail price. Independent Consultants and Members of Band of Beauty are not considered Clients. COMMISSIONABLE VOLUME (CV) Determines how much you are paid for building a Team or downline. CV is typically 75% of the Personal Volume (PV) on a given item. It s generated by your downline Consultants sales to Clients and Members, as well as their personal orders. See Personal Volume and Team. CONSULTANT (INDEPENDENT CONSULTANT) A Beautycounter Consultant is an independent contractor who joins Beautycounter with the goal of building a Beautycounter business. GENERATION A Generation is created when Consultants at the Paid-As rank of Director or above recruit Consultants who are then themselves promoted to the Paid-As rank of Director or above. The number of Generations (i.e., 1st Generation, 2nd Generation, etc.) is determined by the number of Directors between the recruiting Director and the new Director. GENERATION OVERRIDES Generation Overrides of 3% to 5% are paid on the Commissionable Volume (CV) of Director Generations according to the qualifications of the Career Plan Guide. HOST A Host is a person who invites friends and acquaintances to her home (or other convenient location) for a Beautycounter Social. HOST COACHING Host Coaching consists of information and guidance Consultants give Hosts to help them plan successful Socials and earn Host Rewards. Please reference the Host Brochure to learn more. 2.

3 HOST REWARDS Hosts Rewards are the special benefits and discounts Hosts receive based on the total sales and number of purchasing guests that attend their Socials. LEAD A Lead is anyone interested in hosting a Social, purchasing, or selling Beautycounter products. LEVEL A Level denotes each layer of personal recruitment within a Team. For example, if a Consultant personally recruits five new Consultants, those five Consultants are in their 1st Level. If those 1st Level Consultants collectively recruit 15 Consultants, those 15 Consultants are in their 2nd Level, and so on. MEMBER OF BAND OF BEAUTY A Member is a loyal Beautycounter customer who signs up to our exclusive Membership program Band of Beauty which offers exclusive promotions, benefits, and special offers. MENTOR A Mentor is a Consultant who recruits a new Beautycounter Consultant. NEW VOLUME (NV) New Volume (NV) is the Qualifying Volume (QV) generated by new Clients, Members and/or personally-recruited Consultants when a new account is created and an order is placed within the same calendar month. PAID-AS TITLE A Consultant s Paid-As Title is the Career Plan title at which Consultants qualify for paid commissions, bonuses and overrides in any given month. PERSONAL SALES BONUS A Personal Sales Bonus is a bonus of up to 10% paid on a Consultant s Personal Volume (PV). Please see the Career Plan for full details. See Personal Volume. 3.

4 PERSONAL VOLUME (PV) Determines how much you are paid for selling Beautycounter produts. PV is a set value on each product sold, and it s generated by sales to Clients and Members, but not by your personal orders. PV is typically equal to the Retail Price of a product. Some products, like business aids or fees, do not generate PV. QUALIFYING VOLUME (QV) One of the criteria that determines your Paid-As Title each month. QV is generated by your sales to Clients and Members, as well as your own personal orders. Each product sold carries a specified amount of QV as stated on the Price List(s). In the US, QV is typically equal to the Retail Price of a product. Some products, like business aids and fees, do not generate QV. RECOGNITION TITLE A Recognition Title is the highest rank achieved by a Consultant during the prior two months. RETAIL COMMISSIONS Retail Commissions are paid to Active Consultants. They are paid monthly based on the Personal Volume (PV) sold in that month to Clients and Band of Beauty Members. Retail Commissions are 25% of PV. SOCIAL An organized Beautycounter gathering, held by a Host, for the purpose of previewing, sampling, and ordering Beautycounter products. START MONTH The calendar month plus the following month in which a consultant joins. For example, if a consultant signs up in Sept., his or her Start Month is Sept. and Oct. SUGGESTED RETAIL PRICE (SRP) Suggested Retail Price is the price set by Beautycounter for each item and Collection. 4.

5 TEAM A Team is made up of the Consultants, the Consultants they recruit, as well as the Clients and Band of Beauty Members they recruit. TEAM (OR LEVEL ) OVERRIDES Team Overrides of 4% to 9% are paid on a Consultant s Team s Commissionable Volume (CV), depending on the Paid-As Title achieved by that Consultant. Team Overrides are paid up to 4 levels in depth. Please see the Career Plan Guide for full details. UPGRADE An Upgrade occurs when someone wants to change their status from either Band of Beauty Member to Consultant or Client to Band of Beauty Member. Members may upgrade to Consultant at any time. When a Band of Beauty Member upgrades to Consultant, any Clients and Members referred by that Member become part of their Team. VOLUME Volume is a numeric value associated with each Beautycounter item. Volume is used to determine your Title and how much you should be paid for selling and/or leading a Team. The amounts of Volume on each item are shown on our Price List(s). Some items, like business aids, fees, and Host Rewards items do not carry any Volume. Volume from other countries will be adjusted by a Market Factor to bring it in line with the Consultant s local values. There are five types of volume that are defined in this document, and they include: To Determine Your Paid-As Title: -Qualifying Volume (QV) -New Volume (NV) -Business Volume (BV) To Determine How Much You Are Paid: -Personal Volume (PV) -Commissionable Volume (CV) 5.