BUSINESS BASICS. Section Contents

Transcription

1 BUSINESS BASICS There are basic activities for success in every business. In this section, you ll find an outline of those activities, along with additional guidelines to help you manage your Princess House business. Section Contents The Seven Basics for Building a Successful Business Page Setting Goals Page Booking Parties Page Hostess Coaching Page Holding Parties Page Recruiting New Consultants Page Developing a Growing Base of Hostesses & Customers Page Maintaining and Growing Your Contact List Page 5-8 Hostess Coaching Worksheet Page 5-10 New Consultant Goal Setting Worksheet Page 5-11 Managing Your Business Page 5-13 Your Profits Page 5-13 Direct Deposit Page 5-14 Go Paperless with E-Statements Page 5-15 Reshipments Page 5-15 General Princess House Policies Page 5-15 Princess House Consultant Eligibility Page 5-15 Independent Contractor Page 5-16 Compliance with Direct Selling Association Code of Ethics Page 5-16 Compliance with Local Laws Page 5-16 Local Taxes and Permits Page 5-16 Income Taxes Page 5-16 Business-Related Deductions Page 5-17 Unit Status Page 5-17 Active Status Page 5-17 Reinstatement to Active Status Page 5-18 Annual Reinvestment Fee Page 5-18 Product Buy-Back Page 5-19 Sale of Product Page 5-19 Consultant Prepaid Orders Page 5-19 Certified Check/Money Order (CMO) Status Page 5-20 Protecting Private Information of Consumers and Other Independent Consultants... Page 5-20 Corporations and Associations Page 5-20 Use of Trade Names, Trademarks and Logo Page 5-21 Copyright Infringement Page 5-22 Business Cards, Stationery, etc Page 5-22 Internet Page 5-23 Equal Opportunity Page 5-23 Offering Our Business Opportunity Page 5-23 Ownership of Ideas Page 5-23 Notices Page 5-23 General Contest/Program Policies Page 5-24 Glossary of Terms Page G Rev. 5/13

2 The SEVEN BASICS FOR BUILDING A successful business The great thing about being your own boss is that you can create your own success. Princess House allows you that opportunity when you consistently engage in the seven basic activities outlined here. 1. Setting Goals Your decision to become a Princess House Consultant and enjoy the benefits of this business were probably based on personal goals. Perhaps you ve always wanted to own your own business, or maybe you were looking for a way to earn more money for a special occasion or a vacation or to meet financial obligations. You already know what you hope to achieve as a result of your Princess House business. Now it s time to officially set those goals and develop an action plan to achieve them. To support your success, we ve created the QuickStar program. Create an action plan to achieve your QuickStar goal and you ll be on your way to building a thriving Princess House business and enjoying all the rewards that come with it. Review the QuickStar program flyer included in your Welcome Packet/ID card mailing. To achieve QuickStar, book at least six parties and submit four or more parties (each with at least $250 in Customer Sales and a minimum 50% deposit) in your first four weeks of business. As a result, you ll: Earn your choice of one Three-Booking Gift or Princess Heritage Stainless Steel Griddle a $ value. Enjoy immediate profits. Generate booking chains to fill your calendar. Focus on your first four weeks of business and work with your Organizer to develop your plan of action. Use the Goal Setting Worksheet in this section of the Guide to set your goals and confirm your action steps. Our most successful Consultants have found that setting goals and developing action plans focused on four weeks at a time is the most effective way to make a profit and build a successful business. Business Basics Rev. 5/13 5-1

3 2. Booking Parties To find your first Hostesses, start close to home with family and friends, then expand your reach using the Who Do I Know? form (in your Starter Kit and available online on the Printable Supplies page). This form will help you develop your initial contact list of potential Hostesses. Call everyone on your contact list to share your excitement about your new business and your role as a Princess House Consultant. Tell them how much fun a Princess House party is, how much they can earn as a Hostess, how much their friends can save through our limited-time Customer Specials, and how the beauty and versatility of Princess House products can make their lives easier. Once you set a date for the party, help your Hostess create a Wish List of her favorite products. Words to Say: Hi,. This is. I have some exciting news; I just started my own business! I m a Princess House Consultant and I ll be sharing great products for cooking, entertaining, decorating and gift-giving through fun home parties. I would love for you to be one of my very first Hostesses. Hosting a party is as easy as inviting some friends over for fun and conversation. In exchange, you can qualify for free products and great specials available exclusively to Hostesses. And, I can offer your guests incredible savings on some of our most popular items. What do you think? Let s see which of my open dates will work best for you. The places you go every day salon, supermarket, auto shop, kids sporting events and more are full of potential booking leads. You never know when you ll meet someone new who could be interested in Princess House. Offer them the opportunity to host a party and earn fantastic Princess House products free. They may also be interested in the income opportunity, so be sure to share how they can become a Princess House Consultant just like you. Have business cards and a supply of recruiting brochures to share with anyone you meet and follow-up within 48 hours with a phone call. Business Basics Rev. 5/13 5-2

4 3. Hostess Coaching Work closely with your Hostess to ensure a profitable party. Proper Hostess Coaching will help you reach your party goals and help your Hostess earn everything on her Wish List. Here are some tips for effectively coaching your Hostess prior to the party: Your Hostess will set the tone for the party, so make sure you get her excited about it. Start by helping her create a Wish List of all her favorite products and show her what she needs to do to earn everything on her list. Help your Hostess develop an invitation/guest list using the Who Do I Know? form. Set a date for her to return the guest list to you so you can send invitations. Encourage your Hostess to over-invite. Chances are, not everyone that is invited will be able to attend the party. (Note: See Internet Tab for information on Hostess e-guest List tool.) Coach your Hostess to make personal follow-up calls to each invited guest prior to the party. It s her chance to get everyone excited about attending the party. Tell her to share the Customer Specials available and encourage her guests to bring a friend or two. Get an address for each invited guest. To increase attendance, send an to each of them with a link to your personal Princess House website so they can browse our products and Specials and generate interest before the party. (Note: See Internet Tab for information on creating visual s and your personal website.) Work with your Hostess to secure future bookings. Coach her to get at least one pre-party booking. You ll help her get more at her party. Encourage her to talk with her invited guests about booking their own parties. Remind your Hostess that for each party booked from hers, she can purchase one Princess House product (excluding Three-Booking Gifts and Gift Certificates) at half-price and can earn an exclusive Three-Booking Gift FREE when three of her guests book and hold qualified parties of their own. Ask your Hostess which guests might be interested in the Princess House business opportunity so you can be sure to talk with them during the party. Get the telephone numbers of those who couldn t attend so you can follow up with them. And, remember to share our income opportunity with your Hostess most Consultants started as Hostesses. Business Basics Rev. 5/13 5-3

5 Encourage your Hostess to collect outside orders from those who can t attend the party. The more orders she collects, the higher the Party Sales will be and the more free products your Hostess can earn and you ll earn more profits. Contact your Hostess a few times before the party to touch base and continue building enthusiasm for a great party. Encourage your Hostess to keep inviting guests, getting pre-party bookings and collecting outside orders. Offer a friendly reminder to keep refreshments simple so she can spend more time with her guests and less time preparing and serving. Suggest serving one of our all-natural food products so guests get a taste of the quality ingredients. Track your progress with each of your Hostesses by using the Hostess Coaching Worksheet (a copy is included on page 5-10 in this section and is also available to download on the Printable Supplies page in Consultant s Corner). Make copies of the original and use a three-hole punch to put them into a binder. Add your Hostesses to the worksheet and check off each activity as you go, so you know exactly what needs to be done for each party. 4. Holding Parties Every party should include recruiting, booking and selling statements (sometimes referred to as seeds ). These statements will help you find booking and recruiting leads at every party. After you ve held several parties, you ll discover what seeds work best for you and how to conduct a party that suits your personal style and creates a comfortable, fun environment for your guests to experience today s Princess House. Following a party outline will help ensure that you cover all aspects of the Princess House Opportunities with your Hostesses and guests. Use the party outline provided in The Party section of this Guide. Be sure to personalize your parties by sharing how you use our products. Incorporate unique elements like themes or games to make sure your guests have fun and to secure future bookings. Ask your Organizers and others on your team for suggestions, or visit the Bulletin Board in Consultant s Corner for ideas. Remember, your Hostesses are the key to finding recruiting, booking and selling leads. After the party, follow up immediately with anyone they suggest may be interested in the Hostess or Consultant opportunities. Be sure to nurture your Hostess relationships and stay in touch to keep them up to date on new product introductions and special offers. (Note: See Internet section for ideas for maximizing your online Contact Database.) Business Basics Rev. 5/13 5-4

6 5. Recruiting New Consultants When you offer our business opportunity to others, you are sharing an opportunity to enhance their lives. At the same time, you re growing your business and expanding your career opportunities with Princess House. Consistently recruiting New Consultants will allow you to build a team and promote up in the Princess House Career Plan a step that ensures increased profits, added recognition and rewards, and long-term business and income growth. Potential New Consultants (recruiting leads) are everywhere. Think about how you became a Consultant. Did you meet a Consultant or Organizer through a friend or neighbor? Did you attend a Princess House party? Or, did you meet while you were out running errands? You never know where you ll meet your next recruiting lead, so be on the lookout and be prepared. A recruiting lead may be someone who: Has expressed an interest in what you do. You believe would be a good Consultant or could benefit from our Opportunity. Has a great personality. Wants to spend more time with her/his children. Is looking for a new job. Is looking to supplement her/his income. Loves Princess House products. Has been a Princess House Hostess. Would like the opportunity to earn free first-class vacations every year. Where can you find and develop recruiting leads? At Your Parties You have many opportunities to develop recruiting leads at your parties. Talk one-on-one with your Hostess and party guests and listen for clues indicating they might be interested in taking advantage of the Princess House Opportunities. Be sure to give them a recruiting brochure and invite them to the next local Opportunity Event or team meeting. Business Basics Rev. 5/13 5-5

7 Explain the benefits of becoming a Consultant. Use visual tools to demonstrate the income potential, recognition and rewards they ll enjoy as a Consultant. For instance, you could pass around pictures of your children and share how your Princess House business lets you spend more time with them. Or, show everyone a picture of something you re working toward, like a new car, or the brochure for the next Princess House Incentive Trip. After you ve held some parties, share your profit checks to show how much they can make. You may inspire someone with similar goals and needs to follow in your footsteps. During the product demonstration, involve your guests in sharing their favorite products and product ideas. Guests who show passion for our products are the ones you should talk with one-on-one before the party s over. Through Your Contact List When starting your business, you filled out a Who Do I Know? sheet to develop a contact list for booking parties. Many of the people on your list could be interested in the Princess House business opportunity. Give them a call and share your enthusiasm about all of the benefits you re enjoying as a Princess House Consultant. Be sure to: Ask if they have ever considered the benefits of building a successful home-based business. Invite them to go with you to your next party to see how much fun you have and how much money you make as a Consultant. Invite them to the next Opportunity Event or team meeting in your area to experience Princess House and have their questions answered. Call your Organizer and ask for support with a follow up call to your lead. Please note: Consult the Internet section for ideas on using your online Contact Database to get bookings and sales. Through Prospecting Everyone you meet even while you re out shopping, at the gym, running errands and involved in community events could be interested in the Princess House business opportunity. Offer it to everyone. You have nothing to lose and everything to gain. Carry a supply of recruiting brochures (like Enhancing Lives) to share the benefits of becoming a Princess House Consultant with leads. Be sure to exchange contact information so you can follow up and answer any questions your leads might have, and to let them know about new product introductions and special offers. Business Basics Rev. 5/13 5-6

8 Referrals Ask everyone you know and meet for referrals. Words to Say: Who do you know who might be interested in the opportunity to: Build a successful home-based business and be self-employed? Earn a generous income part time or full time? Have a flexible schedule so they can spend more time with family? Receive recognition and rewards for their achievements? Enjoy unlimited income and career opportunities? Earn fabulous expenses-paid vacations? By holding parties, sharing the Princess House business opportunity and recruiting New Consultants, you determine your income. At the same time, you are offering others the same rewarding opportunities you have the opportunity to enhance lives and live their life their way, experience personal growth and enjoy financial freedom. 6. Developing a Growing Base of Hostesses & Customers Nurturing relationships with your Hostesses and Customers is essential to securing future bookings and sales and building a successful business. Princess House provides several tools and techniques to support you in developing a growing base of Hostesses and customers: Getting to Know You forms ( Yellow Slips ) provide you with a method for collecting the most important contact information you need to effectively communicate with your Hostesses and customers. Remember to add your new contacts into your Consultant s Corner Contact Database for easy access and communication. The telephone is a quick and effective contact method. Making just a few calls a day can help you fill your party calendar, promote current Hostess and Customer Specials, invite contacts to an Open House or Opportunity Event and follow up on previous mailings or s. This is a people business and your success depends upon personal contact. Princess House provides several business supplies that are ideal for mailing to Hostesses, customers and recruiting leads. Hostess & Customer Specials flyers and recruiting brochures like the Enhancing Lives brochure (9228) will help you promote your business. Business Basics Rev. 5/13 5-7

9 is a convenient way to send updates or announcements and is a great way to advertise your business. Your Contact Database enables you to invitations, reminders, announcements, thank you notes, etc., with beautiful visual templates or print labels to send to guests without an address. See Internet section for details. Princess House provides new specials, promotions and incentives for Hostesses, customers and leads on a regular basis. These programs can help you build your business by attracting recruiting and booking leads and creating excitement among Hostesses and party guests. Tip: Make phone calls efficiently. A short, friendly conversation is all you need. Your Hostesses, customers and leads will appreciate that you re not taking too much of their time. For those who aren t interested in the Princess House Opportunities right now, ask if they would like to be on your telephone or list to receive upcoming new and exciting offers. Be sure to ask who they know who might be interested in learning about today s Princess House. And always thank them for their time. 7. Maintaining and Growing Your Contact List Business contacts come through referrals from Hostesses, party guests, people who placed outside orders, friends, family members, neighbors, your children s friends and people you meet every day. We use an acronym for these contacts, FRANK: Friends Relatives Acquaintances Neighbors Kids Friends By consistently asking for referrals, you will grow your contact list of potential Hostesses, customers and recruiting leads. Every time you meet someone face-to-face, you have an opportunity to create new chains of business. At parties and outside of parties there are plenty of opportunities to add to your contact list. When you re in a waiting room perhaps at the doctor s office or hair salon start a conversation with the people waiting with you. Do the same at the grocery store, bank or post office. Simply starting a conversation will open the door that allows you to talk about what you do and to offer the Princess House Opportunities to others. Business Basics Rev. 5/13 5-8

10 Remember to give your new contacts your business card (available to order online in Consultant s Corner; click Order Business Stationery under Toolbox in the navigation menu) and a recruiting brochure, as well as a Hostess & Customer Specials flyer. Exchange contact information and offer to give them a call in a day or two. Remember that your enthusiasm is contagious, so be sure to show them how excited you are to speak with them again. Everywhere you turn, you meet someone new to offer the opportunity to host a Princess House party or enjoy a fun shopping experience. And every new Hostess and customer has the potential to become a New Consultant. Business Basics Rev. 5/13 5-9

11 P rincess H ouse Hostess Coaching Worksheet Check off each activity or insert a date as it occurs. Review to make sure all commitments are on schedule. Set Party Date, Time and Location Discussed Products for Presentation Helped Develop Guest List Chose Free Product Goal Explained Order Payment Options Discussed Consultant Opportunity Date Guest List Needed Date Guest List Received Date Invitations Mailed Number of Invitations Mailed Dates Follow-up Phone Calls Made Date Party Sales Close After Party Thank You Note to Hostess Mailed Total Sales Number of Bookings Number of Recruit Leads Hostess Name and Telephone Number Make copies of this form to use with all parties or download from the Printable Supplies page in Consultant s Corner. Business Basics Rev. 5/

12 New Consultant Goal Setting Worksheet My Name My Organizer The answers to the following questions will help you establish goals and develop an action plan to achieve them. Talk with your Organizer to establish priorities and schedule sales and recruiting activities to support your first four weeks. I m excited about starting my own business because: My Princess House Business Goals I want to hold (#) parties each week. These days/times are good for me: I would like to earn $ per week or $ a month. I will use the profit I earn for. QuickStar Program (check box when task completed) q I will hold and submit my first four parties (each with at least $250 in Customer Sales and a minimum 50% deposit) by (date) to qualify for QuickStar and earn my choice of one Three-Booking Gift or Griddle (valued at $100-$195). Please note: Your four-week QuickStar goal date will be listed on your first Statement of Profits. My Princess House Business Action Plan q I will attend (#) Observation Parties. These days/times are good for me. q I will write all family and personal appointments in my Business Planner by (date). Business Basics Rev. 5/

13 q I will schedule my Announcement Party (Open House) in my home by (date). q I will fill out the Who Do I Know? form by (date). q I will fill out my Guest List for my Announcement Party and mail my invitations by (date). q I will use the Announce Your Business Press Release (available in Consultant s Corner) to alert the local media about my new business. q I will book my first six parties by (date). q I will become familiar with my Princess House Starter Kit products and materials by reviewing them by myself and/or with my Organizer beginning (date). I will review the product information in Success Starts Now and available on the Product Knowledge pages in Consultant s Corner. q After each of my first six parties, I will talk with my Organizer to ask questions, share my experiences and get new tips and suggestions. Additional Activities Here is a list of additional activities that my Organizer has recommended to help me get off to a successful start in my new Princess House business. Business Basics Rev. 5/

14 MANAGING YOUR business These guidelines will define your business relationship with Princess House and act as a basic reference for conducting your business. Remember, your Princess House Home Office and Organizer support teams are always available to help answer questions. Your Profits Before you know it, you ll be making money with your Princess House business. See the Q&A page of Success Starts Now for an explanation of the Princess House Profit Check Schedule. The sales on which you receive profits and credit toward contests and awards are known as Commissionable Volume. This includes all Customer Sales. The following items are not included in Commissionable Volume: taxes, delivery fees, Hostess and Previous Hostess Merchandise Credit Used, Hostess Half-Price Items, Hostess Specials, and Previous Hostess Half-Price Items. Your weekly profits and bonuses are based on our Compensation Plan (a copy is included in your New Consultant ID Card mailing). The Compensation Plan may be modified occasionally, at the discretion of Princess House, to further stimulate the vitality and growth of your business. Refer to the illustration and explanations below to answer any questions you may have about the Statement of Profits that is included with each profit check Business Basics Rev. 5/

15 1 Hostess column: Shows your Hostess name and/or other transactions. For instance: Hostess name for a returned order (R/O). Profit Bonus on sales from the previous Period. Non-party transactions (i.e., printed matter, auto sampling, prepaid amount due, etc.). Hostess name for returned sales/cancelled orders (RET/SLS; i.e., customer returned item for a refund). Price difference for item(s) on order. Reinvestment fee (see information under General Princess House Policies in this section). 2 Commissionable Volume column: This is the Commissionable Volume figure as shown on your Order Summary. 3 Profit column: Shows your profit on the Commissionable Volume. 4 Split Profit column: Indicates percent of profit received or deductions made for a split profit party. See the Writing and Placing Orders section for details. 5 Booking column: Will show you when a Three-Booking Gift was awarded and what the cost is to you. Please note: Anything that requires a Consultant contribution will be shown here. For example, Previous Hostess Items, Party Builders, Early Bird contributions, etc. 6 Printed matter column: Shows order processing fees. 7 Overwrite section: Incentive overwrites are for Organizers only based on the Commissionable Volume of orders received, plus reshipments, less returns for each group. 8 Contest Info: During some contests you ll find information here. 9 Starter Kit balance: Shows the current balance due, if any, for your Starter Kit. Direct Deposit Want your profits faster? Enjoy the speed and convenience of Direct Deposit! You ll be mailed a Direct Deposit enrollment form with your New Consultant ID Card mailing, or you can go to Consultant s Corner and enroll via the online form. You ll find it by selecting Account/Website portal under the My Account tab, then clicking Direct Deposit in the Manage Personal Profile section. And while you re enrolling in Direct Deposit, you can go paperless meaning you ll help save trees and postage, plus save yourself filing time! Just leave the box to continue receiving paper statements unchecked when you enroll in Direct Deposit online. Business Basics Rev. 5/

16 Go Paperless with E-statements Want one-stop access to all your Profit Statements? Whether for tax purposes or to print and share with others to show how profitable a Princess House business is, you can access your Profit Statements online in Consultant s Corner. Simply click Activity/Profit Statement on your Consultant s Corner Home Page, in the Personal Snapshot box. General princess house policies Princess House Consultant Eligibility In order to become a Princess House Consultant, an individual must: Be at least 18 years of age. Be a legal resident of the United States or a U.S. Territory. Agree to operate a bona fide business by selling and promoting Princess House products. Complete a Consultant Application and Agreement. Members of a Consultant s immediate family are invited to become Consultants and conduct parties, too, as long as they have a Consultant s Agreement signed and accepted by Princess House and they are affiliated within the same Unit team. Princess House reserves the right, in its sole discretion, to reject any application. Independent Contractor All Consultants are independent contractors, not employees or agents of Princess House or its affiliated companies. The use of the words employee, agent or company representative, either verbally or on any business cards, stationery or other printed material, is strictly prohibited. You should identify yourself as a Princess House Independent Consultant. Compliance with Direct Selling Association Code of Ethics Consultants must comply with the Code of Ethics as adopted by the Direct Selling Association, which is amended from time to time. A copy of the current Code can be found in the Company s website footer at Compliance with Local Laws Consultants must comply with all local, state and federal laws and regulations that apply to their business and shall not engage in any business practice or activity that could discredit or damage the image or reputation of Princess House. Business Basics Rev. 5/

17 Local Taxes and Permits Various states and local municipalities may impose a variety of taxes, permits or fees on individuals conducting business within their jurisdictions. It is the responsibility of each Consultant to become familiar and fully comply with such requirements. Income Taxes As an Independent Contractor, you are responsible for the filing and payment of all self employment and income taxes due on your Princess House earnings. Each year, Princess House will send you a Federal Form 1099 as a record of your earnings and contest awards. You must keep your own personal record of supplies purchases you make through Princess House, such as those for printed materials, Party Builders, etc. Consult with your accountant or tax adviser to determine the best method for preparing your taxes. Links to the IRS Tax Guide web page are available in Consultant s Corner (click General Business under Resources & Training, then click Business Support). Business-Related Deductions As an Independent Contractor, you are entitled to certain tax deductions for business-related expenses such as telephone, gas, business aids, etc. Maintaining proper receipts is essential to making sure you can support your deductions. Princess House highly recommends that you talk to your accountant or tax advisor shortly after you start your business for a complete review of all business deductions you may be entitled to as a Consultant. Links to the IRS guides recommended by the Direct Selling Association are available in the Resources & Training section of Consultant s Corner under Business Support. Please note: Princess House cannot provide duplicate copies of receipts for business supplies. Please retain all receipts for your records. Unit Status One of the greatest benefits of your association with Princess House is that you re in business for yourself but not by yourself. New Consultants automatically become part of the Unit team to which the person who introduced them belongs. Business Basics Rev. 5/

18 Active Status You re considered an active Consultant as long as you submit at least one qualified party order ($250 in Customer Sales and a minimum 50% deposit) every 12 weeks. If you split your qualified party with another Consultant, you must be the recipient of the 60% split of the commission for that party in order to remain active. Please see the Compensation Plan brochure for details. You will receive regular monthly mailings as long as Princess House receives a party order from you within a 12-week timeframe. If you go more than 12 weeks without submitting a party order, your mailings will be discontinued and you will be considered an Inactive Consultant. While inactive, you can learn about new programs and offers by calling your Organizer or Customer Service, or by logging in to Consultant s Corner. You will have access to Consultant s Corner for one year after becoming inactive. Your personal Princess House website, myprincesshouse.com address, address book and Contact Database will be active for one year after you become inactive. After one year of inactive status, your personal website, address, myprincesshouse.com Address Books and My Contacts list will be permanently deleted. Reinstatement to Active Status Consultants who have been inactive for less than one year: It s easy to re-start your business at any time. If you ve been inactive for less than a year (based upon the date of last party order received at Princess House), simply submit a qualified party order ($250 in Customer Sales). If you split your qualified party order with another Consultant, you must be the recipient of the 60% split of the commission for that party in order to reactivate. If you owe any outstanding balance, it must be cleared before active status is renewed. Once reactivated, you will be reaffiliated with your original Unit. Consultants who have been inactive for one year or more: If you ve been inactive for at least one year, but less than two years, follow the above procedure to become reaffiliated with your original Unit. If you want to re-start your business and change your Organizer or Unit affiliation, you may do so as long as no balance is due to Princess House and your contract has not been terminated for any reason. In order to do this, you must sign a New Consultant Agreement and purchase either a new Starter Kit or a Master Sampling of new products. You will not, however, be considered a New Consultant or be issued a new ID number, the person recruiting you will not be eligible for recruiting credit and you will not be able to participate in New Consultant incentive programs. Consultants who have been inactive for two years or more: If you remain inactive for two years or longer and decide to reactivate, you may do so as stated above to become reaffiliated with your original Unit. You will not be considered a New Consultant. Business Basics Rev. 5/

19 You do have the option to begin as a New Consultant. To do this, you must sign a New Consultant Agreement and purchase a new Starter Kit. The person recruiting you would be eligible for recruiting credit and you would be eligible to participate in New Consultant incentive programs. You will be assigned a new ID number. Please note: Any balance owed to Princess House must be paid in full in order to reactivate. If your contract has been terminated for any reason, you will not be reactivated. Annual Reinvestment Fee All active Consultants and Organizers will be charged a $25 yearly reinvestment fee on their anniversary date.* All Inactive Consultants who have been in the business at least one year will be charged this reinvestment fee upon their reinstatement date and yearly thereafter. Payment of this fee will be made through a profit deduction on the appropriate anniversary date. This fee covers printed mailings (monthly and quarterly materials, product information, promotions, ongoing field training materials, contests, recruiting rewards and events) and subsidized business supplies. * Amount of yearly reinvestment fee subject to change at the discretion of Princess House. Business Basics Rev. 5/

20 Product Buy-Back Should you decide that owning your own Princess House business isn t for you, you may request within one year of purchase that Princess House buy back your marketable products, including Starter Kit products. We will pay 90% of your original net cost, less any monies due to the company, provided the products are currently marketable, have never been used and are in their original product boxes. To process your buy-back request, send a written termination notice stating your name, Consultant I.D. number, Starter Kit number and reason for the return, along with your marketable product and proof of purchase (at your own expense): Princess House Distribution 500 Northridge Park Drive Rural Hall, NC Once your product is received, we will determine its marketability and, if applicable, issue a check to you within 4-6 weeks. Sale of Product To project the best image of Princess House and your business it s important that all customers are offered current products at all parties. This means selling only those products featured in the current Catalog, plus limited-time items offered by Princess House. We encourage you to follow the suggested retail prices printed in the Catalog, as these prices have been researched and are competitive in the marketplace. Remember that your profit is based on Commissionable Volume. Booking Gifts, Party and Business Builders, contest award items and any non-princess House merchandise may not be sold at parties, Open Houses or other events. These items are reserved as business-building products and, therefore, cannot be offered for sale. Please note: Hostess Special, Hostess Bonus and Hostess Exclusive items, and any item currently available in the Catalog, are not to be sold online in any way, which includes Consultant s Corner. Consultant Prepaid Orders As an active Consultant or Organizer, you receive a 38% discount on all product orders, which allows you to add current products to your personal collection and your Starter Kit. You are limited to a total of $230 in purchases over a three-month period. Orders must be prepaid by credit card, check or money order. You may submit Consultant Prepaid Orders online in Consultant s Corner or by using the Consultant Prepaid Order Form found in your Starter Kit (also available to download in Consultant s Corner). Business Basics Rev. 5/

21 Certified Check/Money Order (CMO) Status Personal check writing is a great convenience for our Consultants, and we re happy to accept check payments. However, in the event that two or more checks or one check for an amount greater than $500 are returned, we will act according to the following guidelines: If there are non-sufficient funds (NSF) in your account to cover the check(s) written to Princess House, we will send you a letter with the one-time option of sending payment by certified check, money order or valid credit card. If your account is not satisfied, or if we receive another NSF check, then Certified Check/Money Order (CMO) Status will be applied. CMO Status requires that all orders be paid in full for a minimum of 90 days by certified check, money order or valid credit card. You may request CMO status removal, when 90 days expire and there s a zero ($0.00) balance on your account for the last 30 days of your CMO Status. Permanent CMO Status will apply if any additional NSF checks are received, and a Credit Review by our Contract Review Committee will take place. Possible termination of the Consultant contract could result, requiring any balance due to Princess House to be paid within ten days. Notice of an excessive negative balance (a balance of $300 or more for three or more weeks) at any time requires full payment within ten days to avoid Credit Review and possible termination of your contract. Overdue Accounts are subject to any collection or legal expenses incurred by Princess House. Protecting Private Information of Consumers and Other Independent Consultants Consultant shall take the following steps to safeguard all private information* provided by a consumer, a prospective consumer, or prospective independent Consultant: 1) All names, addresses, credit card information and social security numbers provided need to be safeguarded by keeping this information in a secure, locked location. 2) Six months after the completion of an order transaction, Consultant should destroy all personal information such as addresses, phone number and credit card information by shredding the documents that contain this information. 3) Upon acceptance of a Consultant s Application and Agreement by the Princess House Home Office, the recruiting Consultant shall destroy all personal information such as addresses, phone numbers and credit card information by shredding the documents that contain this information. *Private information includes: name, address, telephone number, credit card information and social security number. Corporations and Associations You may run your Princess House business as a business entity (such as a corporation or a limited liability corporation) and sign the Consultant s Application and Agreement in a business entity name. Or, you may form such a business entity at any time, as long as you are the majority stockholder/ member and President/CEO or Manager of the appropriate entity and notify Princess House in writing that you wish to execute a new agreement in the name of that entity. Acceptance of the agreement by Princess House is based on the unique and personal services of the individual Consultant who is the majority stockholder/member and President/CEO or Manager of the business entity that executes the agreement. Business Basics Rev. 5/

22 Princess House reserves the right to terminate the agreement immediately upon insolvency of the business entity; incapacity of the individual Consultant who is the majority stockholder/member and President/CEO or Manager of the business entity; or failure of that individual Consultant to serve as President/CEO or Manager of the business entity or maintain majority ownership of the business entity. This agreement automatically terminates upon death, insolvency or bankruptcy of that individual Consultant or the bankruptcy of the business entity. You may also adopt a DBA ( Doing Business As ) name for your business. In either case, recognition and approval by Princess House is required. Acceptance of a business entity and DBA name requires that they not be confusingly similar to other Consultant/Organizer corporate names or contain the trade name Princess House. All business entities and DBAs must have a current Federal Employer Identification (EI) number from the Internal Revenue Service. Princess House recommends that a business entity be formed only after a Consultant confers with her/his attorney and tax advisor. Use of Trade Names, Trademarks and Logo The protection of Princess House trademarks is critical to maintaining the Princess House brand and exclusivity. For this reason, use of Princess House trademarks or any facsimile thereof in any way, is not permitted without prior written consent by Princess House. This includes activity such as photocopying the Catalog using the Princess House logo on flyers or using Princess House photography and logos on a non-princess House website. A trademark or logo is a proprietary name or symbol that Princess House has the exclusive legal right to use. Princess House trademarks include: Logos Product lines and names For example: Princess Heritage, Fantasia and Barrington Design For example, the Princess Heritage floral design: Please note: See Internet section for information on approved-for-consultant-use images within the Visual templates. Business Basics Rev. 5/

23 Written permission is required to apply the Princess Heritage design, or other trademarked designs, to any item or independently-created websites. Products depicting our trademarked designs may only be purchased through Princess House or an authorized third party, and may be used only for incentives, not resold. The permission of Princess House is required for use of any trademarked items. To request approval, please submit your request with the item, layout and intended use (ad, flyer, apparel, etc.) to our Legal Department at the following address: Princess House, Inc. Attn: Legal Department 470 Myles Standish Boulevard Taunton, MA Copyright Infringement No one may reproduce in whole or in part any printed material, audio, video or film recordings that have been produced by Princess House, unless given written authorization to do so by Princess House. These materials including images that appear on our website and in our Catalog and other business materials are protected by copyright laws, whether registered or unregistered, and are considered proprietary to Princess House. Consultants wishing to use full and exact reproductions of printed materials, audio, video or film recordings must submit their request to the Legal Department at the above-listed address. Business Cards, Stationery, etc. Business cards and stationery are available for all Consultants and Organizers. Princess House has partnered with a business stationery vendor to provide you with professional business cards and supplies. We strongly recommend that you order these items and use them to promote your business and maintain the Princess House corporate image. You can order these supplies easily through Consultant s Corner. Click Order Business Stationery under Toolbox in your navigation menu. For instructions, click How To Order Business Stationery under Training/Web Help in the Consultant s Corner navigation menu. Business Basics Rev. 5/

24 Internet If you have a website other than the personalized Princess House website that you set up in Consultant s Corner (see Internet section for instructions), we strongly suggest you link to your personalized Princess House website from your site. You must submit your non-princess House website to the Princess House Legal Department for approval prior to publication on the Internet. Please note: Princess House products may not be sold over the Internet except through the Post-Party Online Ordering link. No Princess House copyrighted or trademarked material may be reproduced on the Internet without the prior written consent of Princess House. Equal Opportunity The Princess House Opportunity is open to anyone, regardless of race, color, creed, religion, national origin, age, sex, or physical or mental challenge. We encourage and expect all Independent Consultants to conduct their businesses in the spirit and principle of equal opportunity for all. Offering Our Business Opportunity When offering our Business Opportunity or presenting the Princess House Compensation Plan, a Consultant: Must clearly indicate that the principle activity of a Consultant is to sell and distribute Princess House products to consumers through the home party plan method of sales. Must not imply or represent that a Consultant can benefit solely from the recruiting of other Consultants. Must not imply or represent that success may be achieved with little or no effort. Must not make any statements with regard to the earnings opportunity that are not accurate and truthful. Ownership of Ideas The sharing of ideas between Princess House and its Independent Consultants is enthusiastically encouraged. Any ideas or suggestions a Consultant provides to Princess House for any reason, verbally or in writing, will become the sole property of Princess House. This includes postings on the Princess House Facebook Page and Group and in Celebrate Magazine. The Consultant will have no ownership rights and no right to receive any additional earnings or other payments. Notices Any notices relevant to the Consultant Agreement will be provided in writing and sent to the current address of record. Notices mailed first class prepaid shall take effect three days after the day they re deposited in the mail. Notices delivered prepaid by courier, express delivery services, confirmed facsimile transmission or in person shall take effect within one day of delivery to the carrier. Business Basics Rev. 5/

25 General Contest/Program Policies The following General Policies apply to all Princess House contests and/or award programs. They are provided here to clarify contest/program rules and to answer your most frequently asked questions concerning contest/program definitions, although each individual contest/program will have guidelines that may be exclusive to that particular contest/program. Please review carefully: All references to sales refer to Commissionable Volume. First Party Date refers to the date on which the New Consultant s first party order was received at Princess House with appropriate payment and all required information complete. Only orders processed at Princess House during the contest dates qualify. New Consultant recruiting credit is applied to the Consultant/Organizer named on the New Consultant s application. Princess House may disqualify any contest achiever for violation of her/his Consultant and/or Organizer Agreement. Achievers with a credit balance due to Princess House must clear that balance within 30 days of notification (via phone, , or mail) or forfeit their award(s). Princess House is required by law to notify the IRS of the value of all prizes, trips and non-cash awards earned or won by a Consultant or Organizer. These are considered taxable income for the year in which the prize is processed. Business Basics Rev. 5/