Getting Into the Details

Getting Into the Details:

A guide to progressing as an Independent Brand Ambassador with

w w w . redaspenlove . c o m COMPENSATION PLAN

SALES TRACK

BRAND SALES SALES SALES SALES AMBASSADOR AMBASSADOR LEADER MANAGER EXECUTIVE #redaspenlove

Sales (PV) 0 PV 120 PV 1,000 PV 2,000 PV 4,000+ PV Personal Commission 25% 27% 30% 33% 35%

TEAM TRACK

NATIONAL BRAND BRAND SENIOR BRAND SENIOR BRAND ASSOCIATE BRAND SENIOR BRAND EXECUTIVE SR. EXECUTIVE EXECUTIVE AMBASSADOR LEADER BRAND LEADER MANAGER MANAGER BRAND DIRECTOR DIRECTOR BRAND BRAND BRAND DIRECTOR DIRECTOR DIRECTOR DIRECTOR

Personal Volume 300 400 500 600 600 600 600 600 600 600 Personal Personal Personal Personal Personal Personal Dashing Start PV Volume + Volume + Volume + Volume + Volume + Volume + DSPVL1 DSPVL1 DSPVL1 DSPVL1 DSPVL1 DSPVL1

Group Volume 1,000 2,000 4,000 8,000 10,000 12,000 13,000 14,000 15,000 4 AL: 1 AL 1 AL 2 AL 3 AL 4 AL: 5 AL: 5 AL: 6 AL: 6 AL: Active Legs: 1 BM

QUALIFICATIONS 2 BM 1 BM 1 ABD 1 ABD 1 BD Titled Legs 1 SBM 1 SBM 1 BD 1 SBD TITLE Downline Volume 16,000 30,000 60,000 120,000 250,000 500,000

Level 1 3% 8% 8% 10% 10% 10% 10% 10% 10% 10% Level 2

LEVEL 3% 5% 5% 5% 5% 5% 5% 5%

COMMISSION Level 3 1% 1% 1% 1% 1% 1% 1% Generation 0 1% 2% 2% 2% 2% 2% Generation 1 2% 2% 2% 2% Generation 2 2% 2% 2%

OMMISSION 2% GENERATION C Generation 3 2% Generation 4 2% 1st Time Promotion $100 $150 $200 $500 $1,000 $2,500 $5,000 $7,500 $10,000 BONUS

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

qualifications

p e r s o n a l g r o u p a c t i v e d o w n l i n e t i t l e d d a s h i n g v o lu m e v o lu m e l e g v o lu m e l e g s ta r t p e r s o n a l v o lu m e

commissions

p e r s o n a l l e v e l p r o m o t i o n g e n e r at i o n c o m m i s s i o n c o m m i s s i o n b o n u s c o m m i s s i o n

BA Brand Ambassador SBL Senior Brand Leader EBD Executive Brand Director SA Sales Ambassador BM Brand Manager SEBD Senior Executive Brand Director SM Sales Manager SBM Senior Brand Manager NEBD National Executive Brand SL Sales Leader ABD Associate Brand Director Director SE Sales Executive BD Brand Director BL Brand Leader SBD Senior Brand Director

© Red Aspen, LLC ii 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 Commission 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.

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

Compensation Plan at-a-glance i Abbreviations & Icon Index ii Getting Started iv

Sales Track 1 Team Track 3 Brand Ambassador 3 Brand Leader 4 Brand Manager 6 Brand Director 7

Activities 8 Qualifications 9 Personal Volume 9 Group Volume 10 Active Leg 11 h o w t o u s e t h i s g u i d e Downline Volume 12 This guide will help you understand the Titled Leg 13 Red Aspen Commission Plan as you Dashing Start Personal Volume 15 advance through the Sales Track and/or the Team Track. You will learn Commission 16 about: Personal Commission 16 • Activities Level Commission 17 • Qualifications Promotion Bonus 19 • Commission Generation Commission 19 Examples and practices are outlined in Glossary 21 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.

SALES SALES SALES SALES Titles AMBASSADOR LEADER MANAGER EXECUTIVE

Abbreviation SA SL SM SE

Qualiﬁcations 120 PV 1,000 PV 2,000 PV 4,000+ PV

Personal Commission 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 Personal 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 o v e r v i e w t i t l e s a c t i v i t i e s s a l e s a m b a s s a d o r (see pg. 10) Work it, girl! Sales Ambassador is the first Sales Track Title. Sales Ambassa- dors Qualify for their Title by selling 120-999 PV and earn a 27% Personal Sell Share Commission. qualifications s a l e s l e a d e r (see pg. 10) Now we're talking! Sales Leader is the second Sales Track Title. Sales Leaders Qualify for their Title by selling 1000-1,999 PV and earn a 30% Personal Commission. c o m m i s s i o n (see pg. 10) s a l e s m a n a g e r

Personal Commission 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% Personal Commission.

s a l e s e x e c u t i v e 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% Personal Commission. In addition to Personal Commission, Sales Track Ambassadors can also earn monthly annual and lifetime sales awards as they continue to grow their Red Aspen business.

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 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 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.

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 • Directors

• Leaders » Associate Brand Director »Brand Director »Brand Leaders » Senior Brand Director » Senior Brand Leaders »Executive Brand Director • Managers » Senior Executive Brand »Brand Managers Director » Senior Brand Managers »National Executive Brand Director

b r a n d ambassadors q u i c k o v e r v i e w Brand Ambassadors focus on personal selling, sharing Red Aspen products in-per- a c t i v i t i e s son and online, and are eligible to earn 25-35% personal commission on qualified (see pg. 10) personal volume as soon as they join Red Aspen.

Sell Share BRAND Titles AMBASSADOR qualifications

(see pg. 10) Abbreviation BA

Qualiﬁcations 0 PV c o m m i s s i o n (see pg. 10) Personal Commission 25-35% Personal Commission Level Commission -

1st Time - Promotion

q u i c k o v e r v i e w Brand Leaders focus on personal selling, sharing Red Aspen products in-person and a c t i v i t i e s online, and sponsoring new Brand Ambassadors. (see pg. 10)

BRAND SENIOR Titles Sell Share LEADER BRAND LEADER

Abbreviation BL SBL qualifications (see pg. 10) 300 PV 400 PV Qualiﬁcations 1 AL 2,000 GV 1 AL

Personal Commission 25-35% 25-35% c o m m i s s i o n (see pg. 10) Level Commission Level 1: 3% Level 1: 8% Personal Commission 1st Time - $100 Level Commission Promotion

Promotion Bonus

e x a m p l e : n i c h o l e Example of a BA’s Title history. Demonstrates the difference between Title and Paid as Title.

© Red Aspen, LLC 5 m a n a g e r s q u i c k o v e r v i e w Brand Managers and Senior Brand Managers focus on sponsoring new Brand a c t i v i t i e s Ambassadors and building strong Red Aspen Teams. (see pg. 10)

BRAND SENIOR BRAND Titles Sell Share Sponsor Build MANAGER MANAGER

Abbreviation qualifications BM SBM (see pg. 10) 500 PV 600 PV Qualiﬁcations 4,000 GV 6,000 GV 2 AL 3 AL

Personal c o m m i s s i o n Commission 25-35% 25-35% (see pg. 10) Level 1: 8% Level 1: 10% Level Personal Commission Level 2: 3% Level 2: 5% Commission Level 3: 1% Level Commission 1st Time $150 $200 Promotion Bonus Promotion

ASSOCIATE BRAND SENIOR BRAND EXECUTIVE SENIOR EXECUTIVE NATIONAL EXECUTIVE Titles BRAND DIRECTOR DIRECTOR DIRECTOR BRAND DIRECTOR BRAND DIRECTOR BRAND DIRECTOR

Abbreviation ABD BD SBD EBD ESBD NEBD

600 PV or 600 PV or 600 PV or 600 PV or 600 PV or 600 PV or 300PV + 300 PV + 300 PV + 300 PV + 300 PV + 300 PV + 300 DSPVL1 300 DSPVL1 300 DSPVL1 300 DSPVL1 300 DSPVL1 300 DSPVL1 Qualiﬁcations 8,000 GV 10,000 GV 12,000 GV 13,000 GV 14,000 GV 15,000 GV 4 AL 4 AL 5 AL 5 AL 6 AL 6 AL (1 BM+) (2 BM+) (1 BM+, 1 SBM+) (1 ABD+, 1 SBM+) (1 ABD+, 1 BD+) (1 BD+, +1 SBD) 16,000 DV 30,000 DV 60,000 DV 120,000 DV 250,000 DV 500,000 DV

Personal 25-35% 25-35% 25-35% 25-35% 25-35% Commission

Level 1: 10% Level 1: 10% Level 1: 10% Level 1: 10% Level 1: 10% Level 1: 10% Level Level 2: 5% Level 2: 5% Level 2: 5% Level 2: 5% Level 2: 5% Level 2: 5% Commission Level 3: 1% Level 3: 1% Level 3: 1% Level 3: 1% Level 3: 1% Level 3: 1%

Gen 0: 1% Gen 0: 2% Gen 0: 2% Gen 0: 2% Gen 0: 2% Gen 0: 2% Generation Gen 1: 2% Gen 1: 2% Gen 1: 2% Gen 1: 2% Commission Gen 2: 2% Gen 2: 2% Gen 2: 2% Gen 3: 2% Gen 3: 2% Gen 4: 2%

1st Time $500 $1,000 $2,500 $5,000 $7,500 $10,000 Promotion

q u i c k o v e r v i e w Directors focus on building strong downlines. They build, grow, retain teams and are a c t i v i t i e s Red Aspen Leaders. (see pg. 10)

Sell Share Sponsor Build

Lead Retain qualifications (see pg. 10)

c o m m i s s i o n (see pg. 10)

Personal Commission

Level Commission

Promotion Bonus

Generation Commission

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 BA'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 net- work 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 Spon- sor, 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!

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 Personal Volume. It’s also the only qualification requirement for Brand Ambassador’s on the Sales Track. Personal 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 Ambas- sadors 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.

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 Personal 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 : a n n i e Determine Annie’s Group Volume.

200 + 100 + 50 + 100 + 50 + 105 + 100 + 150 + 120 Group Volume = 975

a c t i v e l e g b r a n d l e a d e r s (1 AL) · b r a n d m a n a g e r s (2-3 AL) · b r a n d d i r e c t o r s (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 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 : a n n i e 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)

down l i n e vo l ume b r and d i r e c t or s (16,000-500,000 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 – 500,000 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 : k i m Sum of BA Personal Volume (PV) + her entire Downline PV = Detemine Kim’s Downline Volume. Downline Volume (DV)

Total Downline Volume = 18,890

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.

e x a m p 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

d a s h i n g s ta r t p e r s o n a l v o lu m e b r a n d d i r e c t o r s · 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 : d s p v 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 300 + 300 = 600 sponsored Kelly, Stephanie, and Cody who PV DSPVL1 Requirement all earned 150 PV in the same month. met!

s c e n a r i o 2 Jackie earned 500 PV and sponsored 500 + 100 = 600 Julianne who earned 100 PV all in the same PV DSPVL1 Requirement month. met!

s c e n a r i o 3 Joelle earned 200 PV and sponsored Jessica 200 + 300 = 500 who earned 400 PV all in the same month. PV DSPVL1 Requirement not met.

s c e n a r i o 4 Last month Melissa earned 600 PV and did 600 + 0 = 600 not sponsor anyone. PV DSPVL1 Requirement met!

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.

Personal Commission

a l l s a l e s t r a c k t i t l e s (25%-35%)

a l l t e a m t r a c k t i t l e s (25%-35%)

Everyone in the Sales and Team Track is eligible to earn Personal Commission. You earn personal commission by selling Red Aspen products and earning Per- sonal Volume. Ambassadors earn 25-35% Personal Commission 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.

Personal Commission = Personal Volume x Personal Commission Percentage

e x a m p l e : m a n dy Mandy earns 3,500 PV in a month. What is her personal commission?

3,500 x 33% = $1,155 PV Personal Personal Commision Commision Percentage

Qualified PV = 3,500 Personal commission percentage = 33% Mandy qualifies as a Sales Manager

Level Commission

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 : a n n i e Demonstration of Levels.

Commissionable Volume Wholesale volume on which Level Commissions and Generation Commissions 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 a n d l e v e l c o m m i s s i o n 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 Personal Commission. 300 x 27% = $81.00 PV Personal Personal Commission Commission Percentage

s t e p 2 Calculate Commissionable Volume 1,000 x 75% = 750 Level 1 CV CV PV Percentage

s t e p 3 Calculate Level Commission 750 x 3% = $22.50 Level 1 CV CV PV Percentage

s t e p 4 Add personal Commission and level commission $81.00 + $22.50 = $103.50 Personal Level 1 Total Commission Commission Commission

© Red Aspen, LLC 18 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 ta i o n c o m m i s s i o n , c v 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 Commission b r and d i r e c t or s The final type of commission is a Generation Commission. 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 Personal 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.

e x a m p l e : l i l ly Identify Lilly's G0, G1, G2, and G3.

LILLY ABD

JENNIFER KELLEY JUNE LIZ LEVEL 1 BA BA BA BM

MARY JANE SARAH KATE LEVEL 2 BA BA ABD BA

LEVEL 3 LAUREN ALICE VERONICA SOPHIA ERIN BELLE LANIE BA BA SA BA ABD BA BA

LEVEL 4 HALEY JESS ALLIE NIKKI BA BA BA BA

Generation 0 LEVEL 5 Generation 1 LOUISE BECKY Generation 2 BA BA Generation 3 MACY LEVEL 6 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...

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

© Red Aspen, LLC 21 g l o s s a r y for their Paid as Title at least once every 6 months to Downline and includes all of the people below her, maintain their equivalent Title. If a Brand Ambassa- down to but not including the next Associate Brand dor fails to meet this requirement, their Title will be Director or higher. An Associate Brand Director demoted to the highest Paid as Title achieved during must be Paid as an Associate Brand Director to that 6-month period. Title demotions occur in the receive a Generation Commission, but Generations 7th month without Qualification. are defined by Title, not Paid as Title.

Downline: All the Brand Ambassadors below you, Group: A Brand Ambassador’s Group includes her- infinite levels deep. self and all of the Brand Ambassadors on her 1st, Downline Volume (DV): Sum of Personal Volume 2nd 3rd levels (regardless of Title). (PV) from a Brand Ambassador and her entire Group Volume (GV): Downline. Includes ALL Downline Brand Ambas- sadors regardless of Title. A maximum of 50% of Brand Ambassador Personal Volume (PV) + Level 1 PV + downline volume (DV) of Associate Director and Level 2 PV + Level 3 PV above can come from one Active leg or the individual A minimum of 50% of GV must come from retail Brand Ambassador for qualification purposes. sales to customers who are not Brand Ambassadors. GV is used for Senior Brand Leader and above Paid A Brand Ambassador is eligible to receive Eligible: as Title Qualification requirements. commission, bonuses and other incentives if they meet the Title requirements for it. Eligibility does Leg: A Leg begins with a Level 1 Brand Ambassador not guarantee a Brand Ambassador will receive and includes all of the Brand Ambassadors beneath that commission, bonus or incentive. To receive the her, infinite levels deep. A BA has as many Legs as payout, the Brand Ambassador must be both Eligible Level 1 BAs. When you sponsor a new BA, you are and Qualified for it. adding a new Leg. Legs are used to qualify for Brand Leader I and above Paid-as Titles. Enrollment month: The calendar month during which a Brand Ambassador joins Red Aspen. All Example: Karen has four Level 1 Brand Brand Ambassadors are assigned an Active status, Ambassadors, so she has four Legs. Stella regardless of Personal Volume (PV) earned, during is one of Karen’s Level 1 BA’s. Stella, and her their Enrollment Month. entire Downline, is one Leg to Karen.

Generation: The relationship between one Associate Level: The position a Brand Ambassador has in the Brand Director and above and her Downline, down Downline relative to another Upline or Downline to but not including the next Associate Brand Direc- Brand Ambassador. Personally sponsored Brand tor or above in each Leg. Generations are defined by Ambassadors are Level 1. Those sponsored by Level Title, and not by Paid as Title. 1 are Level 2, those sponsored by Level 2 are Level 3 and so on relative to the original Brand Ambassador. Generation Commission: Associate Brand Directors and above may be paid a Generation Commission on the Commissionable Volume (CV) of their Downline Generations (Generation 1, Generation 2, Gener- ation 3, Generation 4). A Generation begins with the first Associate Brand Director or above in the

Level 1: Brand Ambassadors in your direct Downline. Personal Volume (PV): A Brand Ambassador’s monthly total sales from orders placed under her ID Level Commission: Active Brand Ambassadors may number. Product credit and other discounts do not be paid a Level Commission on the Commission- qualify for PV. Tax, shipping, Business Kits, samples, able Volume (CV) from the sales of their Downline etc. are not eligible for PV. Used to determine Per- through 3 levels. Percentages and number of levels sonal Commission and qualification requirements. that a BA receives is based on their Paid as Title and Promote/Promotion: Occurs when a Brand Ambas- is regardless of the Title of the Brand Ambassadors sador is Qualified for a higher Title by the last day of below them. the month. The promotion is retroactively applied to Month: Time period in which Qualifications for Paid the first day of the Month the promotion occurred, as Title are met. All Paid as title requirements reset meaning that regardless of what day the BA qualified at 12:00 AM Mountain Time on the first day of for the promotion, the new Title and Paid as Title is every month effective for the entire Month.

Paid as Title: Qualifications that determine monthly Promotion Bonus: Earned by Qualified Brand Level and Generation Commissions, as well as other Leaders and above when they promote to a new title payouts. Paid as Title resets every calendar Month. If for the first time. Bonus will be paid when the Pro- in any Month a BA fails to achieve their Paid as Title, motion occurs. If multiple promotions occur in the she is paid at the highest Title for which she same Month, BAs are eligible for multiple bonuses. Qualifies but she retains her Title unless it is adjusted BA may only earn Promotion Bonus once per Title. pursuant to the Demotion policy. Associate Brand Directors and below receive their promotion bonus in the month they promote. Personal Commission: 25-35% commission a Brand Beginning with Brand Directors, Ambassadors must Ambassador earns on all Personal Volume, paid reach their Paid as Title twice in six months to monthly. Earned on all Personal Volume regardless receive their bonus. Beginning with Executive Brand of Active status. Commission percentage may differ Director, Ambassadors will receive $2,500 each for charity or other special events. month that they are paid Brand Director or higher until the full bonus is paid.

Qualify/Qualified: Occurs when a Brand Ambas- sador meets her Paid as Title requirements for a particular payout and/or Title in Month.

Roll up: When a Brand Ambassador’s Red Aspen another BA in the genealogy. Typically the BA who business is cancelled, either voluntarily or involun- enrolled you. tarily, their Downline moves up to the next Brand Team Track: Brand Ambassadors who grow their Ambassador in their Upline filling the gap left by the business by focusing on building a Red Aspen team. canceled Brand Ambassador. Must meet certain sales and sponsoring require- Sales Ambassador: The first Title in the Sales Track. ments to advance through Titles. Title groups include Focus on personal product sales. Brand Leaders, Brand Managers and Brand Direc- tors. Sales Track: Brand Ambassadors who grow their business by focusing on personal product sales. No Titled Leg: Require at least one Brand Ambassador sponsoring requirements in place. Titles include Sales found anywhere within a Leg is at a specified Paid as Ambassador, Sales Manager, Sales Leader and Sales Title or above. Used to qualify for Associate Brand Executive. Sales Titles and Paid as Titles are released Director and above. through monthly reporting. Title: Used for recognition, is the highest Paid-as Sales Executive: The final Title in the Sales Track. Title achieved within the prior rolling six month pe- Focus on personal product sales. riod. It does not change unless Brand Ambassador is Promoted or Demoted, unlike Paid as Title which can Sales Leader: The third Title in the Sales Track. Focus vary from month to month. New Titles are assigned on personal product sales. on the 1st day of the month following the Brand Am- Sales Manager: The second Title in the Sales Track. bassador’s promotion or demotion. Brand Ambassa- Focus on personal product sales. dors may have a Sales Title and a Team Title.

Sponsor: The Brand Ambassador directly above Team: Yourself + everyone in your Downline, down to the next Associate Brand Director or above.