Getting Into the Details: A guide to progressing as an Independent Brand Ambassador with

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1 Getting Into the Details: A guide to progressing as an Independent Brand Ambassador with w w w.redaspenlove.com

2 SALES TRACK BRAND AMSSADOR SALES AMSSADOR SALES LEADER SALES MANAGER SALES EXECUTIVE #redaspenlove Sales (PV) 0 PV 120 PV 1,000 PV 2,000 PV 4,000+ PV 25% 27% 30% 33% 35% TEAM TRACK BRAND AMSSADOR BRAND LEADER SENIOR BRAND LEADER BRAND MANAGER SENIOR BRAND MANAGER ASSOCIATE BRAND DIRECTOR BRAND DIRECTOR SENIOR BRAND DIRECTOR EXECUTIVE BRAND DIRECTOR SR. EXECUTIVE BRAND DIRECTOR NATIONAL EXECUTIVE BRAND DIRECTOR Volume Dashing Start PV Volume + DSPVL1 Volume + DSPVL1 Volume + DSPVL1 Volume + DSPVL1 Volume + DSPVL1 Volume + DSPVL1 Group Volume Active Legs: Titled Legs Downline Volume 1 AL 1,000 1 AL 2,000 2 AL 4,000 3 AL 8,000 4 AL: 1 BM 16,000 10,000 4 AL: 2 BM 30,000 12,000 5 AL: 1 BM 1 SBM 60,000 13,000 5 AL: 1 ABD 1 SBM 120,000 14,000 6 AL: 1 ABD 1 BD 250,000 15,000 6 AL: 1 BD 1 SBD 500,000 Level 1 Level 2 Level 3 Generation 0 Generation 1 Generation 2 Generation 3 Generation 4 3% 8% 8% 3% 10% 5% 1% 10% 10% 10% 5% 5% 5% 1% 1% 1% 1% 2% 2% 2% 10% 5% 1% 2% 2% 2% 10% 5% 1% 2% 2% 2% 2% 10% 5% 1% 2% 2% 2% GENERATION COMMISSION LEVEL COMMISSION TITLE QUALIFICATIONS 2% 2% 1st Time Promotion $100 $150 $200 $500 $1,000 $2,500 $5,000 $7,500 $10,000 BONUS Red Aspen, LLC i

3 ABBREVIATIONS & ICON INDEX a c t i v i t i e s s e l l s h a r e s p o n s o r b u i l d l e a d r e ta i n q u a l i f i c at i o n s p e r s o n a l v o l u m e g r o u p v o l u m e a c t i v e l e g d o w n l i n e v o l u m e t i t l e d l e g d a s h i n g s ta r t p e r s o n a l v o l u m e c o m m i s s i o n s p e r s o n a l c o m m i s s i o n l e v e l c o m m i s s i o n p r o m o t i o n b o n u s g e n e r at i o n c o m m i s s i o n Brand Ambassador SBL Senior Brand Leader EBD Executive Brand Director SA SM SL SE Sales Ambassador Sales Manager Sales Leader Sales Executive BM SBM ABD BD Brand Manager Senior Brand Manager Associate Brand Director Brand Director SEBD Senior Executive Brand Director NEBD National Executive Brand Director BL Brand Leader SBD Senior Brand Director Red Aspen, LLC ii

4 We hope the heart of your Red Aspen business is based on a desire to do something you love sharing our products, living by our brand values, influencing beauty and positively impacting the lives of women you meet every day. This guide will help you understand the Red Aspen Plan as you advance through the Red Aspen Titles. As a helpful hint, the first letter of key terms are CAPITALIZED and are defined in more detail in the glossary. Red Aspen, LLC iii 4

5 GETTING STARTED Congratulations on taking this step in your journey! You are officially an Independent Brand Ambassador with Red Aspen. A Brand Ambassador is an independent business owner who has a Brand Ambassador Agreement in place with Red Aspen. Brand Ambassadors sell Red Aspen products and/or sponsor new Red Aspen Brand Ambassadors. As a Brand Ambassador you can grow your Red Aspen business in two ways. You can focus on sales and earn commissions through the Sales Track, or you can earn bonuses for sponsoring new Brand Ambassadors and leading their teams through the Team Track. Red Aspen s compensation plan is dynamic and allows Brand Ambassadors to focus on sales, team building or both. Do what you re good at and push yourself to achieve new business goals with a compensation plan that s flexible enough to support your ever-changing life! Brand Ambassadors who participate in the Sales Track grow their business by focusing on personal product sales. If you are a sales superstar, this is a fantastic option for you! There are four groups of Sales Titles at Red Aspen: Sales Ambassadors Sales Leaders Sales Managers Sales Executives Brand Ambassadors who participate in the Team Track grow their business by focusing on building a Red Aspen team. If you love to mentor and lead others, this is the track for you! There are three groups of Team Track Brand Ambassadors at Red Aspen with varying levels of Titles in each one: Brand Leaders Brand Managers Brand Directors Red Aspen, LLC iv 5

6 TABLE OF CONTENTS Compensation Plan at-a-glance Abbreviations & Icon Index Getting Started i ii iv Sales Track 1 Team Track 3 Brand Ambassador 3 Brand Leader 4 Brand Manager 6 Brand Director 7 Activities 8 Qualifications 9 Volume 9 Group Volume 10 Active Leg 11 Downline Volume 12 Titled Leg 13 Dashing Start Volume Level 17 Promotion Bonus 19 Generation 19 Glossary 21 h o w t o u s e t h i s g u i d e This guide will help you understand the Red Aspen Plan as you advance through the Sales Track and/or the Team Track. You will learn about: Activities Qualifications Examples and practices are outlined in pink dotted-lines. We hope you take advantage of them and refer to them often as you advance in your business and advance in titles. Red Aspen, LLC

7 SALES TRACK Titles SALES AMSSADOR SALES LEADER SALES MANAGER SALES EXECUTIVE Abbreviation SA SL SM SE Qualifications 120 PV 1,000 PV 2,000 PV 4,000+ PV 27% 30% 33% 35% Brand Ambassadors who participate in the Sales Track grow their business through selling Red Aspen products and sharing Red Aspen online and in-person. Sales Track team members can begin earning 25% personal commission on all Red Aspen sales. As Sales Ambassadors increase sales and earn PV, or Volume, they move up the Sales Track career path and can earn anywhere from 25-35% in personal commission. In the Sales Track there are four titles you can earn as your progress through the Compensation Plan. q u i c k overview a c t i v i t i e s (see pg. 10) Sell Share q u a l i f i c a t i o n s (see pg. 10) c o m m i s s i o n (see pg. 10) t i t l e s s a l e s ambassador Work it, girl! Sales Ambassador is the first Sales Track Title. Sales Ambassadors Qualify for their Title by selling PV and earn a 27%. s a l e s leader Now we're talking! Sales Leader is the second Sales Track Title. Sales Leaders Qualify for their Title by selling ,999 PV and earn a 30%. s a l e s manager Get it girl! Sales Manager is the third Sales Track Title. Sales Managers Qualify for their Title by selling 2,000-3,999 PV and earn a 33%. s a l e s executive The highest Sales Track Title is a Sales Executive, who Qualifies for their Title by selling 4,000 PV or more and earns a well-deserved 35%. In addition to, Sales Track Ambassadors can also earn monthly annual and lifetime sales awards as they continue to grow their Red Aspen business. Red Aspen, LLC 1

8 s a l e s track s a l e s title vs. sales pa i d as title e x a m p l e: l a u r e l Example of a s Title history. Demonstrates the difference between Title and Paid as Title. t i t l e vs. pa i d as title An important concept is Title versus Paid as Title. What you are called a Sales Ambassador, Sales Leader, etc. is your Title. Your Title typically only changes when you promote and is used for recognition. How you are paid is based on your Paid as Title. You Qualify for your Paid as Title by meeting PV sales requirements every month. Paid as Title is used for determining compensation, but it can change every month. Title and Paid as Title requirements are the same, but Title is determined by the highest Paid as Title qualified for in the past 6-month period. If you fail to Qualify for your current Title in a 6-month period, you will be Demoted per the Demotion Policy to the highest Paid as Title achieved during that timeframe. Red Aspen, LLC 2

9 TEAM TRACK Welcome to the Team Track! Brand Ambassadors who participate in the Team Track grow their Red Aspen business by selling and sharing Red Aspen products, sponsoring new Brand Ambassadors, and building, leading and retaining Red Aspen teams. Brand Ambassadors must meet certain sales and sponsoring Qualification requirements to advance through the Team Track Titles. There are four Title groupings in the Team Track: Brand Ambassadors Leaders» Brand Leaders» Senior Brand Leaders Managers» Brand Managers» Senior Brand Managers Directors» Associate Brand Director» Brand Director» Senior Brand Director» Executive Brand Director» Senior Executive Brand Director» National Executive Brand Director b r a n d ambassadors q u i c k overview a c t i v i t i e s (see pg. 10) Brand Ambassadors focus on personal selling, sharing Red Aspen products in-person and online, and are eligible to earn 25-35% personal commission on qualified personal volume as soon as they join Red Aspen. Sell Share q u a l i f i c a t i o n s (see pg. 10) Titles Abbreviation BRAND AMSSADOR c o m m i s s i o n (see pg. 10) Qualifications Level 0 PV 25-35% - 1st Time Promotion - Red Aspen, LLC 3

10 l e a d e r s q u i c k overview a c t i v i t i e s (see pg. 10) Brand Leaders focus on personal selling, sharing Red Aspen products in-person and online, and sponsoring new Brand Ambassadors. Sell Share Titles BRAND LEADER SENIOR BRAND LEADER q u a l i f i c a t i o n s (see pg. 10) Abbreviation BL SBL Qualifications 300 PV 1 AL 400 PV 2,000 GV 1 AL c o m m i s s i o n (see pg. 10) Level Promotion Bonus Level 1st Time Promotion 25-35% 25-35% Level 1: 3% Level 1: 8% - $100 Red Aspen, LLC 4

11 t e a m track t e a m title vs. team pa i d as title e x a m p l e: nichole Example of a s Title history. Demonstrates the difference between Title and Paid as Title. t i t l e vs. pa i d as title An important concept is Title versus Paid as Title. What you are called a Sales Ambassador, Sales Leader, etc. is your Title. Your Title typically only changes when you promote and is used for recognition. How you are paid is based on your Paid as Title. You Qualify for your Paid as Title by meeting PV sales requirements every month. Paid as Title is used for determining compensation, but it can change every month. Title and Paid as Title requirements are the same, but Title is determined by the highest Paid as Title qualified for in the past 6-month period. If you fail to Qualify for your current Title in a 6-month period, you will be Demoted per the Demotion Policy to the highest Paid as Title achieved during that timeframe. Red Aspen, LLC 5

12 m a n a g e r s q u i c k overview a c t i v i t i e s (see pg. 10) Brand Managers and Senior Brand Managers focus on sponsoring new Brand Ambassadors and building strong Red Aspen Teams. Sell Share Sponsor Build Titles BRAND MANAGER SENIOR BRAND MANAGER q u a l i f i c a t i o n s (see pg. 10) Abbreviation BM SBM Qualifications 500 PV 4,000 GV 2 AL 600 PV 6,000 GV 3 AL c o m m i s s i o n (see pg. 10) Level Promotion Bonus Level 1st Time Promotion 25-35% 25-35% Level 1: 8% Level 2: 3% Level 1: 10% Level 2: 5% Level 3: 1% $150 $200 Red Aspen, LLC 6

13 d i r e c t o r s Titles ASSOCIATE BRAND DIRECTOR BRAND DIRECTOR SENIOR BRAND DIRECTOR EXECUTIVE BRAND DIRECTOR SENIOR EXECUTIVE BRAND DIRECTOR NATIONAL EXECUTIVE BRAND DIRECTOR Abbreviation ABD BD SBD EBD ESBD NEBD Qualifications 600 PV or 300PV DSPVL1 8,000 GV 600 PV or 300 PV DSPVL1 10,000 GV 600 PV or 300 PV DSPVL1 12,000 GV 600 PV or 300 PV DSPVL1 13,000 GV 600 PV or 300 PV DSPVL1 14,000 GV 600 PV or 300 PV DSPVL1 15,000 GV 4 AL (1 BM+) 4 AL (2 BM+) 5 AL (1 BM+, 1 SBM+) 5 AL (1 ABD+, 1 SBM+) 6 AL (1 ABD+, 1 BD+) 6 AL (1 BD+, +1 SBD) 16,000 DV 30,000 DV 60,000 DV 120,000 DV 250,000 DV 500,000 DV 25-35% 25-35% 25-35% 25-35% 25-35% Level Level 1: 10% Level 2: 5% Level 3: 1% Level 1: 10% Level 2: 5% Level 3: 1% Level 1: 10% Level 2: 5% Level 3: 1% Level 1: 10% Level 2: 5% Level 3: 1% Level 1: 10% Level 2: 5% Level 3: 1% Level 1: 10% Level 2: 5% Level 3: 1% Generation Gen 0: 1% Gen 0: 2% Gen 0: 2% Gen 1: 2% Gen 0: 2% Gen 1: 2% Gen 2: 2% Gen 0: 2% Gen 1: 2% Gen 2: 2% Gen 3: 2% Gen 0: 2% Gen 1: 2% Gen 2: 2% Gen 3: 2% Gen 4: 2% 1st Time Promotion $500 $1,000 $2,500 $5,000 $7,500 $10,000 q u i c k overview a c t i v i t i e s (see pg. 10) Directors focus on building strong downlines. They build, grow, retain teams and are Red Aspen Leaders. Sell Share Sponsor Build Lead Retain q u a l i f i c a t i o n s (see pg. 10) c o m m i s s i o n (see pg. 10) Level Promotion Bonus Generation Red Aspen, LLC 7

14 ACTIVITIES Activities are what we DO as Brand Ambassadors at Red Aspen. We have six different activities and each one contributes to sales, commission, and qualifications. The more you DO the more you earn! s e l l All Sales Track and Team Track Ambassadors All 's are able to SELL Red Aspen products. Brand Ambassadors sell products through in person and online Pop ups, their business website, fairs and shows, and appointment-based services. s h a r e All Sales Track and Team Track Ambassadors All Brand Ambassadors also SHARE Red Aspen products. You can share product, sales, promotions, and events through social media like Facebook, Instagram and Pinterest, or go the old-fashioned route and share with your friends and network in-person! We ve created an entire library of social media assets for you to share online, and you should DEFINITELY post selfies of you and friends repping Red Aspen! s p o n s o r Brand Leaders, Brand Managers, Brand Directors Brand Leaders and above on the Team Track begin SPONSORING when a new Brand Ambassador joins their team as part of their Level 1 downline. As a Sponsor, you will help onboard new Brand Ambassadors and get them up and running with their Red Aspen business! b u i l d Brand Managers, Brand Directors Brand Managers and above on the Team Track also start BUILDING their teams. BUILDING begins once you have multiple Brand Ambassadors on your team and work towards continued team growth. l e a d & r e ta i n Brand Directors Brand Directors also LEAD and RETAIN their team. Leading begins when you have built a strong team, and focus on mentoring and developing your existing team members. Retaining occurs when you have a team of developed Brand Ambassadors in your downline that you work to keep excited, active and involved in Red Aspen! Red Aspen, LLC 8

15 QUALIFICATIONS Brand Ambassadors earn their Paid as Title by meeting certain Qualification requirements every month. There are six types of qualification requirements. Don t worry, you won t need to know about all of them right away! p e r s ona l vo l ume a l l s a l e s t r a c k t i t l e s (120-4,000 PV) a l l t e am t r a c k t i t l e s (0-600 PV) When you first join the Red Aspen, the only qualification requirement you need to think about is Volume. It s also the only qualification requirement for Brand Ambassador s on the Sales Track. Volume = your monthly total PV-eligible sales from your business website, pop ups, and other personal sales. PV-ineligible items include tax, shipping, business kit items, and samples. New Brand Ambassadors do not have a minimum PV requirement to maintain their Title, but they do need to earn at least 120 PV per month in order to be considered Active with Red Aspen. PV requirements range from 0 to 600 for the Team Track and 120 to 4,000 + on the Sales Track depending on your Title. Qualification requirements reset at 12:00AM MT on the first day of every month. You Qualify for your Paid as Title when you meet all Qualification requirements by the last day of the month at 11:59 PM MT. Team Titles are tracked in your back office on the Hub, while Sales Titles are tracked through a monthly report. Red Aspen, LLC 9

16 qua l i f i c at i on s g rou p vo l ume g rou p vo l ume s e n i or b r and l e a d e r (1,000 gv) b r and mana g e r s (2,000-4,000 gv) b r and d i r e c t or s (8,000-15,000 gv) Group Volume is an important topic for Senior Brand Leaders and above. Group Volume (GV) is your Volume + your Level 1 PV + Level 2 PV + Level 3 PV. A minimum of 50% of total GV must come from purchases by customers (i.e., buyers who are not Red Aspen Brand Ambassadors). e x a m p l e: annie Determine Annie s Group Volume Group Volume = 975 Red Aspen, LLC 10

17 q u a l i f i c at i o n s a c t i v e leg a c t i v e leg b r a n d leaders (1 AL) brand managers (2-3 AL) brand directors (4-6 AL) Active Legs are an important topic for Brand Leaders and above. A Leg begins with a Level 1 Brand Ambassador and includes all of the Brand Ambassadors beneath her, infinite Levels deep. When you Sponsor someone new, you are adding a new Leg this means you have the same number of Legs as a Level 1 Brand Ambassadors. An Active Leg means at least one anywhere in the leg has generated at least 120 PV by the end of the month. The Active can be found anywhere on the leg. e x a m p l e: annie Determine the number of Annie s Active Legs. Total number of legs = 3 (Lacy, Cally, and Susie) Active Legs = 2 (Rachel is active, making Cally s leg an Active Leg. Chrissy is active, making Susie s leg an Active Leg) Red Aspen, LLC 11

18 qua l i f i c at i on s down l i n e vo l ume down l i n e vo l ume b r and d i r e c t or s (16, ,000 dv) Brand Directors and above have another qualification requirement as well Downline Volume (DV). This is the sum of a Brand Directors PV plus her entire Downline s PV. Brand Directors must generate 16, ,000 DV depending on their Title. A maximum of 50% of total DV can come from any one Leg. e x a m p l e : kim Detemine Kim s Downline Volume. Sum of Volume (PV) + her entire Downline PV = Downline Volume (DV) Total Downline Volume = 18,890 Red Aspen, LLC 12

19 q u a l i f i c at i o n s t i t l e d leg t i t l e d l e g b r and d i r e c t or s Brand Directors and above must have 4-6 Active Legs, and at least 2 of these Active Legs must have a minimum Paid as Title. For example, an Associate Brand Director must have 4 Active Legs. One of those Active Legs must have the Paid as Title of Brand Manager or above. Remember, the Brand Ambassador holding the Paid as Title can be found ANYWHERE on the leg, not just on the Brand Director s Level 1, Level 2 or Level 3. e x amp l e : k i m Does Kim meet the Associate Brand Director Titled Leg requirement? Answer: Yes. Jane and Mady are both titled Brand Managers, so Kim meets the Title Leg requirement for the Associate Brand Director Title. Red Aspen, LLC 13

20 q u a l i f i c at i o n s e x t r a practice and commissionable volume e x amp l e : k i m Using the chart on the previous page, determine Kim's Downline Volume and Group Volume Group Volume (GV) = Kim s PV + L1 + L2 + L3 = 17,420 Downline Volume (DV)= Kim s PV + L1 + L2 + L3 + L4 + L5 = 18,890 Red Aspen, LLC 14

21 q u a l i f i c at i o n s d a s h i n g sta r t personal volume d a s h i n g sta r t personal volume b r a n d directors PV + DSPVL1 (MAX 300) As an Associate Director or above, any month you may combine your PV + up to 300 of your Level 1 Dashing Start Brand Ambassador PV (DSPVL1). This means you may personally sell 600 PV to Qualify for your Title, OR you may add your personal PV + the cumulative sales of your Level 1 Brand Ambassadors currently in their Dashing Start to Qualify for your Title. e x a m p l e: dspv Determine if the individuals in the following scenarios meet the PV of DSPVL1 requirement: s c e n a r i o 1 Last month Jamie earned 300 PV and sponsored Kelly, Stephanie, and Cody who all earned 150 PV in the same month = 600 PV DSPVL1 Requirement met! s c e n a r i o 2 Jackie earned 500 PV and sponsored Julianne who earned 100 PV all in the same month = 600 PV DSPVL1 Requirement met! s c e n a r i o 3 Joelle earned 200 PV and sponsored Jessica = 500 who earned 400 PV all in the same month. PV DSPVL1 Requirement not met. s c e n a r i o = 600 Last month Melissa earned 600 PV and did not sponsor anyone. PV DSPVL1 Requirement met! Red Aspen, LLC 15

22 COMMISSION Let s talk making money with Red Aspen! We re going to go over ways to GET PAID! There are 5 concepts we re going to go over - personal commission, commissionable volume, level commission, promotion bonuses, and generation commission. a l l sales track titles (25%-35%) a l l team track titles (25%-35%) Everyone in the Sales and Team Track is eligible to earn. You earn personal commission by selling Red Aspen products and earning Volume. Ambassadors earn 25-35% on all PV-eligible product sales, which are paid monthly. Items that are not PV-eligible include Business kit and sample items, tax, and shipping. = Volume x Percentage e x a m p l e: mandy Mandy earns 3,500 PV in a month. What is her personal commission? 3,500 x 33% = $1,155 PV Commision Percentage Commision Qualified PV = 3,500 commission percentage = 33% Mandy qualifies as a Sales Manager Red Aspen, LLC 16

23 c o m m i s s i o n p e r s o n a l commission example + level commission Level b r and l e a d e r s l e v e l 1: 3-8% b r and mana g e r s l e v e l 1: 10% l e v e l 2: 3-5% l e v e l 3: 0-1% b r and d i r e c t or s l e v e l 1: 10% l e v e l 2: 5% l e v e l 3: 1% Brand Leaders, Brand Managers, and Brand Directors on the Team Track are eligible for level commission. Level commission is earned by sponsoring new Brand Ambassadors who in turn sell Red Aspen products. Brand Ambassadors can earn up to 3 Levels deep on their Downline. A Brand Ambassador you have personally Sponsored is your Level 1. Brand Ambassadors Sponsored by your Level 1 are your Level 2, and so on. e x a m p l e: annie Demonstration of Levels. Red Aspen, LLC 17

24 c o m m i s s i o n c o m m i s s i o n a b l e volume + level commission example able Volume Wholesale volume on which Level s and Generation s are paid. CV = 75% of PV In most cases the PV assigned to a product is its catalog retail price. e x a m p l e: c v and level commission Laura s Paid as Title is Brand Leader. She earns 300 PV in a month and sponsors her first level 1 Downline, Kim, who earns 1,000 PV in the same month. What is Laura s total commission? s t e p 1 Calculate Laura s. 300 x 27% = $81.00 PV Percentage s t e p 2 Calculate able Volume 1,000 x 75% = 750 Level 1 PV CV Percentage CV s t e p 3 Calculate Level 750 x 3% = $22.50 Level 1 PV CV Percentage CV s t e p 4 Add personal and level commission $ $22.50 = $ Level 1 Total Red Aspen, LLC 18

25 c o m m i s s i o n p r o m o t i o n bonus, generta i o n commission, cv Promotion Bonus b r and l e a d e r s b r and mana g e r s b r and d i r e c t or s Brand Leaders, Brand Managers and Brand Directors are also eligible for first time promotion bonuses. These bonuses range from $100 to $10,000 depending on your title! When you promote to a new Title for the first time, you receive this bonus. If you promote multiple titles in the same month, you will receive multiple bonuses. Associate Brand Directors and below receive their promotion bonus in the month they promote. Beginning with Brand Directors, Ambassadors must reach their Paid as Title twice in six months to receive their bonus. Beginning with Executive Brand Director, Ambassadors will receive $2,500 each month that they are paid Brand Director or higher until the full bonus is paid. Generation b r and d i r e c t or s The final type of commission is a Generation. Associate Brand Directors and above are eligible for this commission type. Generations are based on the relationship between one Associate Brand Director and above and her Downline, down to but not including the next Associate Brand Director or above in each Leg. Up to 5 Generations may be paid out on. Associate Brand Directors and above are eligible for a Generation commission, also known as Generation 0. This is a 1-2% Generation bonus on your personal Downline, down to but not including the next Associate Director or above on each leg. An important note is that generations are defined by Title, and not by Paid as Title. Up to 5 generations may be paid out on, each at 1-2%, depending on Paid as Title. Red Aspen, LLC 19

26 c o m m i s s i o n g e n e r ta i o n commission example e x a m p l e: lilly Identify Lilly's G0, G1, G2, and G3. LILLY ABD LEVEL 1 JENNIFER KELLEY JUNE LIZ BM LEVEL 2 MARY JANE SARAH ABD KATE LEVEL 3 LAUREN ALICE VERONICA SA SOPHIA ERIN ABD BELLE LANIE LEVEL 4 HALEY JESS ALLIE NIKKI Generation 0 LEVEL 5 Generation 1 Generation 2 LOUISE BECKY Generation 3 LEVEL 6 MACY ABD Generation 0: Lilly, Jennifer, Kelley, June, Liz Generation 1: Sarah, Sophia, Belle, Lanie Generation 2: Erin, Haley, Jess, Allie, Nikki, Louis, Becky Generation 3: Macy, etc... Red Aspen, LLC 20

27 GLOSSARY Active: A status required to earn level and generational commissions. Brand Ambassadors must generate at least 120 Volume (PV) by the end of every month to reach Active status. Brand Ambassadors are automatically assigned an Active status during the month of enrollment, regardless of Volume (PV). Not required to earn personal commissions. Active Leg: Any first level Brand Ambassador and their entire Downline where at least one person is Active. Active Leg Qualification requirements are in place for Brand Leaders and above. Dashing Start Program: A program for new Brand Ambassadors to earn Dash Box(es) during their first 60 days with Red Aspen through sponsoring and selling. Beauty Influencer Program: Rewards loyal customers and Brand Ambassadors with free product, promo codes and exclusive access to new products and promotions. Free products can be earned through pop up sales and promo codes by participating in monthly social media challenges. Earn access to promotions and new products. Brand Ambassador: An independent Red Aspen business owner who has a Brand Ambassador Agreement in place with the company. Brand Ambassadors can focus on personal selling, sponsoring new Brand Ambassadors, or both. Brand Director: The final phase of the Team Track. Brand Directors are responsible for leading and developing Brand Ambassadors and building and retaining teams. Brand Leader: The first phase of the Team Track. Brand Leaders focus on personal selling and sponsoring new Brand Ambassadors to join Red Aspen. Brand Manager: The second phase of the Team Track. Brand Managers focus on building strong Downlines and sponsoring new Brand Ambassadors who join Red Aspen. Cancellation policy: Brand Ambassadors must have a minimum of 120 Volume (PV) total at least once in each rolling 6-month period to remain a Brand Ambassador and maintain their Downline. Failure to meet this requirement results in cancellation of Brand Ambassador status, conversion to customer status and downline and customers rolled up to the next Upline Brand Ambassador. able Volume (CV): Wholesale volume on which Level s and Generation s are paid. CV = 75% of PV In most cases the PV assigned to a product is its catalog retail price. Dashing Start Volume (DSPV): The total month-to-date PV of a Brand Ambassador in her Dashing Start. Dashing Start Volume Level 1 (DSPVL1): The cumulative DSPV of all Brand Ambassadors in your Level 1. For Associate Directors and above, Qualify for your Paid as Title by earning a combination of PV + DSPVL1. Max of 300 DSPVL1 may count towards Qualifying PV per Month. Demotion: Occurs when a Brand Ambassador does not qualify for their equivalent Paid as Title at least once in 6 months. Demotion Policy: Brand Ambassadors must qualify Red Aspen, LLC 21

28 g l o s s a r y for their Paid as Title at least once every 6 months to maintain their equivalent Title. If a Brand Ambassador fails to meet this requirement, their Title will be demoted to the highest Paid as Title achieved during that 6-month period. Title demotions occur in the 7th month without Qualification. Downline: All the Brand Ambassadors below you, infinite levels deep. Downline Volume (DV): Sum of Volume (PV) from a Brand Ambassador and her entire Downline. Includes ALL Downline Brand Ambassadors regardless of Title. A maximum of 50% of downline volume (DV) of Associate Director and above can come from one Active leg or the individual Brand Ambassador for qualification purposes. Eligible: A Brand Ambassador is eligible to receive commission, bonuses and other incentives if they meet the Title requirements for it. Eligibility does not guarantee a Brand Ambassador will receive that commission, bonus or incentive. To receive the payout, the Brand Ambassador must be both Eligible and Qualified for it. Enrollment month: The calendar month during which a Brand Ambassador joins Red Aspen. All Brand Ambassadors are assigned an Active status, regardless of Volume (PV) earned, during their Enrollment Month. Generation: The relationship between one Associate Brand Director and above and her Downline, down to but not including the next Associate Brand Director or above in each Leg. Generations are defined by Title, and not by Paid as Title. Generation : Associate Brand Directors and above may be paid a Generation on the able Volume (CV) of their Downline Generations (Generation 1, Generation 2, Generation 3, Generation 4). A Generation begins with the first Associate Brand Director or above in the Downline and includes all of the people below her, down to but not including the next Associate Brand Director or higher. An Associate Brand Director must be Paid as an Associate Brand Director to receive a Generation, but Generations are defined by Title, not Paid as Title. Group: A Brand Ambassador s Group includes herself and all of the Brand Ambassadors on her 1st, 2nd 3rd levels (regardless of Title). Group Volume (GV): Brand Ambassador Volume (PV) + Level 1 PV + Level 2 PV + Level 3 PV A minimum of 50% of GV must come from retail sales to customers who are not Brand Ambassadors. GV is used for Senior Brand Leader and above Paid as Title Qualification requirements. Leg: A Leg begins with a Level 1 Brand Ambassador and includes all of the Brand Ambassadors beneath her, infinite levels deep. A has as many Legs as Level 1 s. When you sponsor a new, you are adding a new Leg. Legs are used to qualify for Brand Leader I and above Paid-as Titles. Example: Karen has four Level 1 Brand Ambassadors, so she has four Legs. Stella is one of Karen s Level 1 s. Stella, and her entire Downline, is one Leg to Karen. Level: The position a Brand Ambassador has in the Downline relative to another Upline or Downline Brand Ambassador. ly sponsored Brand Ambassadors are Level 1. Those sponsored by Level 1 are Level 2, those sponsored by Level 2 are Level 3 and so on relative to the original Brand Ambassador. Red Aspen, LLC 22

29 g l o s s a r y Level 1: Brand Ambassadors in your direct Downline. Level : Active Brand Ambassadors may be paid a Level on the able Volume (CV) from the sales of their Downline through 3 levels. Percentages and number of levels that a receives is based on their Paid as Title and is regardless of the Title of the Brand Ambassadors below them. Month: Time period in which Qualifications for Paid as Title are met. All Paid as title requirements reset at 12:00 AM Mountain Time on the first day of every month Paid as Title: Qualifications that determine monthly Level and Generation s, as well as other payouts. Paid as Title resets every calendar Month. If in any Month a fails to achieve their Paid as Title, she is paid at the highest Title for which she Qualifies but she retains her Title unless it is adjusted pursuant to the Demotion policy. : 25-35% commission a Brand Ambassador earns on all Volume, paid monthly. Earned on all Volume regardless of Active status. percentage may differ for charity or other special events. Volume (PV): A Brand Ambassador s monthly total sales from orders placed under her ID number. Product credit and other discounts do not qualify for PV. Tax, shipping, Business Kits, samples, etc. are not eligible for PV. Used to determine and qualification requirements. Promote/Promotion: Occurs when a Brand Ambassador is Qualified for a higher Title by the last day of the month. The promotion is retroactively applied to the first day of the Month the promotion occurred, meaning that regardless of what day the qualified for the promotion, the new Title and Paid as Title is effective for the entire Month. Promotion Bonus: Earned by Qualified Brand Leaders and above when they promote to a new title for the first time. Bonus will be paid when the Promotion occurs. If multiple promotions occur in the same Month, s are eligible for multiple bonuses. may only earn Promotion Bonus once per Title. Associate Brand Directors and below receive their promotion bonus in the month they promote. Beginning with Brand Directors, Ambassadors must reach their Paid as Title twice in six months to receive their bonus. Beginning with Executive Brand Director, Ambassadors will receive $2,500 each month that they are paid Brand Director or higher until the full bonus is paid. Qualify/Qualified: Occurs when a Brand Ambassador meets her Paid as Title requirements for a particular payout and/or Title in Month. Red Aspen, LLC 23

30 g l o s s a r y Roll up: When a Brand Ambassador s Red Aspen business is cancelled, either voluntarily or involuntarily, their Downline moves up to the next Brand Ambassador in their Upline filling the gap left by the canceled Brand Ambassador. Sales Ambassador: The first Title in the Sales Track. Focus on personal product sales. Sales Track: Brand Ambassadors who grow their business by focusing on personal product sales. No sponsoring requirements in place. Titles include Sales Ambassador, Sales Manager, Sales Leader and Sales Executive. Sales Titles and Paid as Titles are released through monthly reporting. Sales Executive: The final Title in the Sales Track. Focus on personal product sales. Sales Leader: The third Title in the Sales Track. Focus on personal product sales. Sales Manager: The second Title in the Sales Track. Focus on personal product sales. Sponsor: The Brand Ambassador directly above another in the genealogy. Typically the who enrolled you. Team Track: Brand Ambassadors who grow their business by focusing on building a Red Aspen team. Must meet certain sales and sponsoring requirements to advance through Titles. Title groups include Brand Leaders, Brand Managers and Brand Directors. Titled Leg: Require at least one Brand Ambassador found anywhere within a Leg is at a specified Paid as Title or above. Used to qualify for Associate Brand Director and above. Title: Used for recognition, is the highest Paid-as Title achieved within the prior rolling six month period. It does not change unless Brand Ambassador is Promoted or Demoted, unlike Paid as Title which can vary from month to month. New Titles are assigned on the 1st day of the month following the Brand Ambassador s promotion or demotion. Brand Ambassadors may have a Sales Title and a Team Title. Team: Yourself + everyone in your Downline, down to the next Associate Brand Director or above. Red Aspen, LLC 24