Consultant Activity

Consultant activity – A Consultant is considered active in the month a minimum $200 wholesale Section 1 product order is received by the Company and in the following two calendar months. If a Consultant does not meet active guidelines, the Consultant is considered inactive at the end of the third non-ordering month. To reactivate her active status, she should submit a minimum $200 wholesale Section 1 order to the Company. She will receive Company mailings as long as her name has not been removed from the Company mailing list. Please note that Section 1 orders of less than $200 wholesale would not maintain or reinstate an active status.

If at any time a Consultant is unable to meet the three-month ordering criteria, her Sales Director may suggest a plan suitable to meeting her personal needs. If placement of at least a minimum order is not possible within the next two months, the Consultant will be considered inactive, and her name may be removed from the Company mailing list. Of course, she may reactivate her active status by simply following the reinstatement policy and procedures. One extremely important thing to remember, however, is that once the automatic reinstatement period has expired, a Beauty Consultant will permanently lose any personal team members.

  • former Consultant status – If no order is received by the Company on or before the last business day of the Consultant’s fifth non-ordering month, the Consultant’s name will be removed from the Consultant rolls on the first day of the sixth non-ordering month. However, as long as the Consultant has not returned product to the Company for repurchase, the Mary Kay opportunity is still available in the future whenever the Consultant wishes to become active again. See also “reinstatement.”
  • reinstatement – A former Consultant may be reinstated and regain her active status simply by placing a minimum $200 wholesale Section 1 order with the Company within one year of her last order month (or anniversary month if no order was ever placed).* The terms of the then current Independent Beauty Consultant Agreement will apply. She will be reinstated to the unit and the recruiter indicated on record at the time removed, but she will not regain any personal team members. See also “automatic reinstatement” below.
    (*For the purposes of reinstatement or re-recruitment, only the month is considered; the actual day within the month is not applicable. For example, if the last order is placed any day within October 2001 and followed by an Agreement termination, then it is considered a reinstatement order if received on or before the last business day of September 2002. If the order is received in or after October 2002, the former Consultant would be considered a new team member.)
  • automatic reinstatement – Should reinstatement occur within the same month of having been removed from the Consultant rolls, the reinstating Consultant will be automatically reinstated and restored to active status and will retain her personal team members, as though never interrupted. For this to happen, the order must be received during the same month her name is removed. (The order must be received before the last business day of her sixth non-ordering month.)
  • re-recruitment of former Consultants – A former Beauty Consultant in good standing with the Company may reactivate her status after more than one year from her last order month (or anniversary month if no order was ever placed). She will be considered a new team member and will be required to submit a new Independent Beauty Consultant Agreement and purchase a new Starter Kit or Starter Kit Update to ensure she has the most current products, literature and sales aids. Examples of matters that can affect a Beauty Consultant’s “good standing” status with the Company are whether the Beauty Consultant returned product to the Company for repurchase and whether the Beauty Consultant owes money to the Company as a result of any outstanding accounts receivable.
  • career guidelines
    • A Beauty Consultant is considered “active” in the month a minimum $200 wholesale Section 1 product order is received by the Company and in the following two calendar months.
    • Activity status, career status and compensation will be based on Independent Beauty Consultant Agreements and wholesale orders received by the Company by the end of the business day on the last working day of the month.
    • An Independent Beauty Consultant is an independent contractor, not an employee of the Company and will not be treated as an employee for federal tax purposes or otherwise.

Consultant Activity Notification Schedule

Month Status Order
JAN (A1) $180 First month of active status.
FEB (A2) Second month of active status if no order is received by month-end business close.
First Non-Ordering Month.
MAR (A3) Second month of active status if no order is received by month-end business close.
Second Non-Ordering Month.
APR (I1) First month of inactive status if no order is received by month-end business close.
Third Non-Ordering Month. Must have order in this month to be considered active.
MAY (I2) Second month of inactive status if no order is received by month-end business close.
Fourth Non-Ordering Month. Company notice mailed mid-month.
JUN (I3) Third month of inactive status if no order is received by month-end business close.
Fifth Non-Ordering Month. Must have order in this month to remain on Company mailing list.
JUL (T) Automatic reinstatement month. If no order is received by month-end business close, personal team members will be lost.
Sixth Non-Ordering Month. Name is deleted from Company mailing list and placed on former Consultant list.
  • (I1) Indicates that Consultant has not ordered in prior two months and must place a minimum $200 wholesale Section 1 order with the Company this month to remain active (first month of inactive status).
  • (I2) Indicates second month of inactive status.
  • (I3) Indicates third month of inactive status.
  • (T) Indicates former Consultant status and removal from the Company mailing list. New team members with no order on record to meet the $200 wholesale Section 1 requirement would show no indicator and would not be considered active.

Comments

  1. Kerry Allen says:

    How does an active consultant order a “new”
    starter kit for herself   – is it on the online
    order form?  Thanks!

  2. I don’t think  you can order a new starter kit- you can get the bag on the intouch site, but not the contents of the kit 

  3. Boebi, B says:

    As an inactive IBC (for about a year), with an inventory close to $5000.oo , and with quite a bit of expired product on hand this year  (purchased in 2005),  how do i go about dealing with my taxes in regards to expired/discontinued products ?  Can I claim it as a write-off ?  Thanks.
    Confused.

  4. SD always told us not to count anything in inventory unless it was on a current order form, but I would check with my tax professional to be sure.