Advanced Leadership Program Compensation Enhancements

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1 MEETING SUMMARY

2 Advanced ship Program Compensation Enhancements Key messages: Beginning in C4 (Trendsetter C6), earnings in the Advanced ship Program have been enhanced for all. (Promoters and above) $20 for every qualified recruit 3% additional earnings for sponsoring Enhanced Promotion and Mentor bonuses 1. Total Team Sales is comprised of all your Personal Award Sales plus your G1-G3 Representatives Award Sales. 2. A Qualified Recruit is a G1 new recruit who has an order of $150 or more placed by the second campaign and paid on time. Kickstart Representatives will earn the greater of the two bonuses 3. A sponsoring bonus is earned on the sales of all G1 appointments beginning C4, provided the Upline has $50 in personal award sales excluding performance points. All new Representatives count including both Personal and ALMA Reinstatements, nested and roll-ups do not count 4. Promotion and Mentor Bonuses are paid in 4 equal installments over the subsequent performing campaigns and includes a grace campaign. Mentor must be at same title or above to receive the Mentor bonus 5. Generation bonuses are paid for orders $50+. Earning percentages based on paid sales. NOTE: We have eliminated the New Gold and year-over-year growth requirement for Gold and Platinum Executive s. ADVANCED LEADERSHIP EARNINGS Effective C Personal Qualifications G1 Title Requirements Campaign Rewards TITLE Personal Sales G1 Orders Total Team Sales (1) G1 Silver Ambassador G1 Gold Qualified Recruit Sponsoring Bonus (2) Bonus (3) Advancements (4) Generation Bonus (5) Gold Promotion Bonus Mentor Bonus G1 G2 G3 + Bonus (6) Executive Cash Bonus PROMOTER Promoter $50 1 $20 3% Star Promoter $50 2 $20 3% AMBASSADOR Bronze Ambassador Silver Ambassador Gold Ambassador $200 3 $1,000 $20 3% $50 0 $250 3% 3% $200 6 $2,000 $20 3% $750 $375 4% 3% $200 9 $4,000 $20 3% $1,000 $500 5% 3% 2% LEADER Bronze Silver Gold $ $8,000 1 $20 3% $1,500 $ % 3% 2% $ $12,500 2 $20 3% $2,000 $1, % 3% 2% $ $20,000 2 $20 3% $2,500 $1, % 3% 2% EXECUTIVE LEADER Bronze Executive Silver Executive Gold Executive Platinum Executive $ $40, $20 3% $3,000 $1,500 9% 3% 2% 2% $ $100, $20 3% $5,000 $2,500 10% 3% 2% 2% $ $200, $20 3% $10,000 $5,000 10% 3.5% 2.5% 3% $ $300, $20 3% $20,000 $10,000 10% 4% 3% 4% Up to $400 (7) 2 AVON 2017 ship Kickoff Summary

3 Representative Earnings Enhancements Key messages: Effective Campaign 9 (Trendsetter C11), the earnings opportunity has been enhanced: Earn on every dollar of your personal sales ($1+) Always earn the same whether estore or brochure sales. Watches are now included as Jewelry for full commission. Sales levels have been simplified. The current earnings levels for Representatives in the President s Recognition Program remains the same and now includes estore sales. Registered Fundraisers continue to earn at 50%. Demo policy remains the same. Sales Center orders follow the same chart. EARNINGS LEVELS EFFECTIVE CAMPAIGN 9 Campaign Sales Beauty and Jewelry $0 $ % $150 $ % $300 $ % $500 or more 40% Fashion and Home ALL Fashion and Home EARN 20% KickStart Program Enhancements Key messages: Effective Campaign 4 (Trendsetter C6), the KickStart program* will run seven campaigns instead of six. The first campaign (which could be as short as a few days) will generate a guaranteed 40% regardless of order size, category (beauty, fashion, home) and channel (brochure or estore). The progressive goals remain the same starting in the second campaign instead of the first. A $150 order in either the first or second campaign counts to make the new Representative KickStart Qualified and trigger bonuses for the recruiter. *See YourAvon.com for full details on KickStart Program. LOA KICKSTART PROGRAM Sales Goals Effective Campaign 4 1 ANY SIZE! 2 $150 3 $200 4 $250 5 $300 6 $350 7 $400 3 AVON 2017 ship Kickoff Summary

4 Ticket to Boss Life - You Do, You Get! Key messages: During C2 - C13 (Trendsetter C4 - C15), you can earn incentive awards for every personal recruit. Receive one Ticket to Boss Life scratch-off ticket for each personal recruit who places a $150+ order by their second campaign and pays on time. Avon-generated ALMA recruits are not included in this incentive. Every ticket is a winner. Prizes include free Avon branded items, gift cards, Smart TVs, tablets, a trip to Disney World and a Grand Prize of $10,000. Learn more at YourAvon.com. NO PURCHASE NECESSARY. Void where prohibited. Giveaway begins on December 21, 2016 at 12:00 a.m. EST and ends on June 13, 2017 at 11:59 p.m. EST. Open to Avon Representatives and District Sales Managers who are legal residents of the 50 U.S. states and D.C. See Official Rules at youravon.com for complete details, including non-purchase entry method. Vacation Like a Boss Key messages: Beginning C3 C9 (Trendsetter C5 - C11), all Representatives are eligible to earn an all-inclusive trip to the Atlantis Resort on Paradise Island, Bahamas by recruiting, mentoring and promoting. Coaching Program Key messages: A new coaching program is coming in March 2017 and is open to all levels of s, focusing on growth through performance, recruiting and skill building. 4 AVON 2017 ship Kickoff Summary

5 VIBE VIBE s performance speed has been improved by 200 percent. The Downline Manager application ends on February 28. PRPC 2018 Destination Join the fun and Unlock the Magic at Disney World in Orlando, Florida, where we will celebrate your 2017 PRP achievements travel dates will be shared soon. Exclusively for President s Council & Inner Circle achievers and Executive s and above with President s Club level sales or higher. Look for complete details in the coming weeks on youravon.com under Rewards & Recognition. Preferred Preview and Delayed Billing Programs Beginning Q1 2017, we will no longer offer Preferred Preview and Delayed Billing. Avon.com matches Brochure Offers Beginning now, we are reducing the online-only offers on Avon.com to ensure customers find the best offers from Representatives. Competing offers on sites such as Retail Me Not and ebates are being eliminated. 5 AVON 2017 ship Kickoff Summary

6 Simplification We continue to be focused on simplifying your Avon experience making it easy to grow and succeed with your Avon business. Implementation dates are tentative and subject to change. Accurate View of Pricing Coming later in 2017 on the Order Summary page, the price you see will be the price you pay including tax. You will see which products are being shipped. You will not be charged for red light items at the time of ordering. You will be able to customize the Order Summary page with additional fields. Current View: 6 AVON 2017 ship Kickoff Summary

7 New Default View: 7 AVON 2017 ship Kickoff Summary

8 New Full Page & Features: 8 AVON 2017 ship Kickoff Summary

9 New Order Summary Page Features Key While the new Order Summary default view is very similar to the current view, the redesigned page adds the flexibility to set up and save your preferred view and visual comparison to Total Price, Your Cost and Estimated Earnings columns. Here are your new features: 1. Brochure Campaign - The campaign from which the item was ordered. (Optional) 2. Column Sort - This feature allows you to sort each section in ascending or descending order by clicking the column headers that have a carrot symbol (v). You can return to the original display by clicking the browser refresh symbol. ( ) 3. Comments - This column can help you understand why an item is priced as it is or to convey a better understanding of the billing. 4. Quantity (Qty) - Represents the quantity ordered, as is today. 5. Qualified Promotion - Price Tag icon indicates when a purchase has fully qualified for a campaign promotion. 6. Price Each - Indicates the brochure (or demo) price listed in the various selling materials; also referred to as Customer Price. Total Price - The price times the quantity purchased, or Total Customer Price. 7. Your Cost This is what you pay for the product Customer price less Earnings/Discounts. 8. Order Submission Progress Bar - Shows where you are in the current process and allows you to navigate back to a completed step. 9. Product # - Represents the ordering number you entered. (Optional) Billing Line # - Invoice line # available for reconciliation with your invoice. (Optional) 10. Column Display This dropdown feature allows you to display any of the available columns (up to 12) that you need to view. 11. Make Default Display Checking this allows you to save the desired display. Note: While the default display is the same for desktop and mobile your customized displays can be different based on desktop or mobile view. 12. Not Available this Campaign - For easy viewing, this section displays items that are currently not available all in one convenient place. 13. Additional Items Shipping - This section will display items stored in your Items Pending Shipment that are available to ship in the current campaign. 14. Demo Pricing Change - Represents the demo price at the time of order. 15. Remark Glossary This section will provide a full explanation of all comments. 16. Hot Points Alert This area will show you how far you are from the next Earnings Level. 17. Order Summary section This area provides all the cost details on your order which includes shipping and handling fees and applicable taxes. 9 AVON 2017 ship Kickoff Summary

10 Campaign Earnings Snapshot By Mid-January 2017, we will pilot a new campaign earnings report that provides a detailed view of what you have earned in each campaign. ESPANOL HOME KEY CAMPAIGN DATES SITE MAP HELP CONTACT US LOG OUT MY MY WEB CAMPAIGN AVON EARNING SALES REWARDS & MY ORDERS ACCOUNT OFFICE TOOLS UNIVERSITY OPPORTUNITIES LEADERSHIP RECOGNITION COMMUNITY Begin building your Campaign 16 order - due by 11:59 PM Local Time on Wednesday 07/20/2016 MY ACCOUNT Account Summary Campaign 18 Detail Back to Earnings & Order Size Account Balance Earnings & Order Size Online Order History Products at a 20% Earnings Level Order Size Sales Estimated Earnings $67.87 $13.57 Invoices Sales Centers Orders $19.99 $4.00 Process Returns estore Orders $80.00 $16.00 Pay Avon Items Previously Not Available $18.78 Get Paid by Avon Profile Order Size Earnings Adjustment? $16.79 Referrals Items Not Available This Campaign $14.99 Get Support Business Tools $4.99 Key Campaign Dates Demos $4.99 Tax Information Incentives $10.00 Total $ $79.14 PRINT VIEW CAMPAIGN INVOICES Order History Enhancements In Q2 2017, Order History will now store Grey Light Items on YourAvon.com. 10 AVON 2017 ship Kickoff Summary

11 Share the Full Brochure Online Available now on Desktop. Coming to mobile devices in February. Customers will be able to view the full brochure on mobile, tablet or desktop. How to share your brochure: 1. Go to your personal Representative e-store (sample: youravon.com/ccrehore). 2. Click on Shop my brochure which links to the main page of the online brochure Click on Shop my brochure. 3. Copy the link that appears in the address bar and paste it in an , text or Facebook post. Copy the link in the address bar. 11 AVON 2017 ship Kickoff Summary

12 Or click on any link from inside your e-store and, once on Avon.com, click the Brochure link at the top of the page. Click on Brochure link. Copy the link in the address bar and paste it in an , text or Facebook post. Note that your personal e-store URL should appear at the end of the link. Copy the link from the address bar and paste. 12 AVON 2017 ship Kickoff Summary