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 AMBASSADOR SALES AMBASSADOR 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 AMBASSADOR 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 DIRECTOR Volume Dashing Start PV Volume + DSPVL1 Volume + DSPVL1 Volume + DSPVL1 Volume + DSPVL1 Volume + DSPVL1 Volume + DSPVL1 TITLE QUALIFICATIONS 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 COMMISSION Level 1 Level 2 Level 3 3% 8% 8% 3% 10% 5% 1% 10% 5% 1% 10% 5% 1% 10% 5% 1% 10% 5% 1% 10% 5% 1% 10% 5% 1% GENERATION COMMISSION Generation 0 Generation 1 Generation 2 Generation 3 Generation 4 1% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% BONUS 1st Time Promotion $100 $150 $200 $500 $1,000 $2,500 $5,000 $7,500 $10,000 Red Aspen, LLC i

3 ABBREVIATIONS & ICON INDEX Actions 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 Qualifications 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 s 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 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 BA Brand Ambassador SE Sales Executive BD Brand Director SA Sales Ambassador BL Brand Leader SBD Senior Brand Director SM SL Sales Manager Sales Leader SBL BM SBM Senior Brand Leader Brand Manager Senior Brand Manager EBD Executive Brand Director SEBD Senior Executive Brand Director ABD Associate Brand Director NEBD National Executive 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 Compensation 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. You become a Brand Ambassador upon joining 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. 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 four groups of Titles on the Team Track: Brand Ambassadors 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 20 Generation 20 Glossary 22 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 Compensation Plan as you advance through the Sales Track and/or Team Track. You will learn about: Activities Qualifications Examples are outlined in pink dottedlines. We hope you take advantage of them and refer to them often as you advance in your business and advance in Title. Red Aspen, LLC

7 SALES TRACK Titles SALES AMBASSADOR 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 BA 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 AMBASSADOR BA 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 1,000 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 BA s Title history. Demonstrates the difference between Title and Paid as Title. t i t l e v s. pa i d a s t i t l e An important concept is Title versus Paid as Title. What you are called a Brand Ambassador, Brand 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 2,000 GV 2 AL 600 PV 4,000 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% 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: 2% 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% 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 There are six main activities Brand Ambassadors participate in, and we have built our Compensation Plan, Training website, and social images around these six activities. They are selling, sharing, sponsoring, building, leading, and retaining. s e l l All Sales Track and Team Track Ambassadors All BA's are able to SELL Red Aspen products. Brand Ambassadors sell products through in person and online Pop ups, their E-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 (0-600 PV) a l l t e am t r a c k t i t l e s (120-4,000+ 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. PV requirements range from 0 to 600 for the Team Track and 120 to 4,000 + on the Sales Track depending on your Title. Up to 120 PV in personal consumption purchases may contribute towards Qualifying Volume each month. Qualification requirements reset at 12:00AM PT 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 PT. Team Titles are tracked in your back office on the Hub, while Sales Titles are tracked through a monthly report. Brand Ambassadors must earn 120 PV total once every rolling 6 months in order to maintain their Brand Ambassador status. If they do not meet this requirement, their account will be converted to a customer account and they will no longer be eligible to sell product or earn commission. 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) A Group includes the BA herself + all of the BA s on her first 3 Levels. Group Volume, or GV, is the BA s Volume + Level 1 PV + Level 2 PV + Level 3 PV. GV is used for Qualification requirements, but is not used to calculate any type of commission payouts. A minimum of 50% of total GV must be derived from purchases by customers (i.e., buyers who are not Red Aspen Brand Ambassadors). Group Volume does not play a role until you have become a Senior Brand Leader. 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) A Leg begins with a Level 1 BA and includes all of the BA s beneath her, infinite Levels deep. When you Sponsor a new BA, 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 BA anywhere in the leg has generated at least 120 PV by the end of the month. The Active BA 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 q u a l i f i c at i o n s d o w n l i n e volume d o w n l i n e volume b r a n d directors (16, ,000 DV) Brand Directors 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. Downline Volume is for Qualification purposes only, and is not used to calculate any payouts. A maximum of 50% of total Downline Volume can come from one Leg or from a BAs personal PV. e x a m p l e : kim Detemine Kim s Downline Volume. Sum of BA Volume (PV) + her entire Downline PV = Downline Volume (DV) Total Downline Volume = 17,090 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 leg b r a n d directors Brand Directors must also have 4-6 Active Legs, meaning a BA anywhere on the Leg needs to have generated a minimum 120 PV that Month. The additional Qualification requirement for Brand Directors involves Titled Legs. At least 2 of the Brand Director Active Legs must be both Active AND have a specific Paid as Title. For example, an Associate Brand Director must have 4 Active Legs. One of those Active Legs must have the Title of Brand Manager or above. Remember, the BA 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. 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 (DV) and Group Volume (DV). Group Volume = Kim s PV + L1 + L2 + L3 15,620 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 There are two rules to remember when determining your : is the. A Brand Ambassador may purchase Red Aspen products for her own personal use. A status is the. A Brand Ambassador may purchase Red Aspen products as inventory for her appointment based service business, fair or show, or other approved sales venue and earn 25-35% on all personal inventory sales. All inventory sales may be allocated towards Active status, PV, GV, DV, Level, and Generation. Brand Ambassadors. 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 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 3,500 PV earns Mandy the title of Sales Manager which comes with a personal commission percentage of 35%. 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: 8-10% 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. The sponsoring Brand Ambassador earns a bonus based on a percentage of her Downline's Volume. The bonus is calculated using able Volume. Brand Ambassadors can earn up to 3 Levels deep on their Downline. A Brand Ambassador you have personally Sponsored is your Level 1. Brand Ambassador's Sponsored by your Level 1 are your Level 2, and so on. To calculate Level, use the following formula: Level = Level PV x CV 75% x Level % (1-10%) 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 e x a m p l e: annie Demonstration of Levls. YOU ANNIE 200 PV LEVEL 1 LACY 100 PV CALLY 50 PV SUSIE 100 PV LEVEL 2 KELLY 50 PV KARIE 105 PV LINDSEY 100 PV CHRISSY 150 PV LEVEL 3 RACHEL 120 PV 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. Red Aspen, LLC 18

25 c o m m i s s i o n l e v e l commission example 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 Level Percentage CV s t e p 4 Add personal and level commission $ $22.50 = $ Level 1 Total Red Aspen, LLC 19

26 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, you receive this bonus. Each bonus is paid out only once. For Senior Brand Directors and below, the bonus is paid out after you qualify for the Paid as Title the second time. For Executive Brand Directors and above, the first $2500 is paid after qualifying for your Paid as Title the second time, and the rest will be paid in increments of $2500 per commission period as long as you maintain a Paid as Title of Brand Director or above. 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% Generation bonus on your personal Downline, down to but not including the next Associate Director or above. 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. Generation = Gen PV x CV 75% x Gen % (1-2%) Red Aspen, LLC 20

27 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 G1, G2, G3, and G4. Generation 1: Meg, Janey, Chris Generation 2: Mindy, June, Libby Generation 3: Annie, Jess, Frankie Generation 4: Georgia, Carly Red Aspen, LLC 21

28 GLOSSARY Active: ly sell at least 120 PV by the end of the month. Brand Ambassadors are automatically considered active during their enrollment month. Not required to earn. Active Leg: A leg where there is at least 1 Brand Ambassador who has sold 120 PV by the end of the month. 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 second phase of the Team Track. Brand Leaders focus on personal selling and sponsoring new Brand Ambassadors to join Red Aspen. Brand Manager: The third phase of the Team Track. Brand Managers focus on building strong Downlines and sponsoring new Brand Ambassadors who join Red Aspen. Brand Manager: The third 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 sell 120 PV total every rolling 6 months 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 price; used to calculate level and generation commission. 75% of retail price in most cases. CV = 75% of PV. Dashing Start Volume (DSPV): The total month-to-date PV of a Brand Ambassador during her Dashing Start period. 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 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. Red Aspen, LLC 22

29 g l o s s a r y Downline: All the Brand Ambassadors below you, infinite levels deep. Downline Volume (DV): Your PV + entire downline PV. Maximum of 50% of DV may come from one leg. 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: Begins with an Associate Brand Director or above and includes her entire downline, down to but not including the next Associate Brand Director or above. Generation : Bonus earned on generations in your downline; may earn on up to 5 generations. Group: A Brand Ambassador + all of the Brand Ambassadors on her 1st, 2nd 3rd levels. Group Volume (GV): Your PV + Level 1 PV + Level 2 PV + Level 3 PV. Minimum of 50% of GV must come from retail sales to non Red Aspen BAs. Inventory Sales Rule: A Brand Ambassador may purchase Red Aspen products as inventory for her appointment based service business, fair or show, or other approved sales venue and earn 25-35% on all personal inventory sales. All inventory sales may be allocated towards Active status, PV, GV, DV, Level, and Generation. Brand Ambassadors must submit inventory order requests and sales receipts to to hello@red-aspen.com. Inventory order requests must be submitted and approved prior to placing order. Leg: A Leg begins with a Level 1 Brand Ambassador and includes all of the Brand Ambassadors beneath her, infinite levels deep. A BA has as many Legs as Level 1 BAs. When you sponsor a new BA, you are adding a new Leg. Legs are used to qualify for Brand Leader I and above Paid-as Titles. Level: Brand Ambassadors in your downline. BAs you personally sponsor are your Level 1, BAs sponsored by your Level 1 are your Level 2, and so on. Level 1: Brand Ambassadors in your direct Downline. Level : Bonus earned on sales of Brand Ambassadors in your downline; may earn on up to 3 levels. Month: Time period in which Qualifications for Paid as Title are met. All Paid as title requirements reset at 12:00 AM Pacific 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 BA 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. Red Aspen, LLC 23

30 g l o s s a r y Use Rule: A Brand Ambassador may purchase Red Aspen products for her own personal use. BAs earn 25% on all personal consumption purchases. Up to 120 PV in personal consumption purchases may be allocated towards Active status and Qualifying PV. All personal consumption purchases may be allocated towards GV, DV, Level, and Generation. : 25-35% bonus earned on personal volume (PV), paid monthly. Generation: : 25-35% bonus earned on personal volume (PV), paid monthly. Volume (PV): A Brand Ambassador's monthly total qualifying personal sales. Up to 120 PV in personal consumption purchases may count towards qualifying PV and Active status each month. 1 PV = $1 USD in most cases. 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 BA qualified for the promotion, the new Title and Paid as Title is effective for the entire Month. Promotion Bonus: Bonus earned by qualifying for new Paid as Title. Each bonus is paid out only once. For Senior Brand Directors and below, bonus will be paid in full after qualifying for Paid as Title second time. For Executive Brand Directors and above, first $2500 will be paid after qualifying for Paid as Title second time. Remaining bonus will be paid in increments of $2500 per commission period. Executive Brand Directors and above must maintain Paid as Title of Brand Director or above to receive remainder of bonus. Qualify/Qualified: Occurs when a Brand Ambassador meets her Paid as Title requirements for a particular payout and/or Title in Month. A BA only receives those commissions and bonuses for which they are both Eligible and Qualified. Rebate: Brand Ambassadors are eligible to earn 25% on all personal purchases in the form of a Rebate. Roll up: When a Brand Ambassador s Red Aspen business is canceled, 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 BA in the genealogy. Typically, the BA who enrolled you. Red Aspen, LLC 24

31 g l o s s a r y 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 but not including the next associate director or higher. Used for leadership and coaching purposes only. Not used for qualification or commission payouts. Upline: Everyone above a Brand Ambassador in the genealogy structure. Red Aspen, LLC 25