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sales aids
Section 2 items on the Consultant order form purchased by the Consultant from the Company that promote the sale of products; e.g. product samplers, skin care class supplies, literature, etc. Section 2 items are not available at a discount, are not intended for resale and are not subject to the repurchase obligation.

Sales Director car program
Career car programs available only to Sales Directors. Includes the Sales Director Premier Club and Cadillac programs. See “career car program”.

Sales Director-In-Qualification
See “Independent Sales Director-In-Qualification” and “career path program”.

Sales Director
See “Independent Sales Director”.

sales tax
When wholesale orders are placed with the company, the Consultant prepays sales tax based upon the suggested retail selling prices. The Company remits the sales taxes to the appropriate state and local jurisdictions.

Sales Ticket
Consultants use a sales ticket for each customer purchase to record information about each customer, the date, the items purchased and their prices, the sales tax, any applicable fees and the total amount purchased. It is your sales record. Here’s what a Consultant should do with each copy of the sales ticket: - The original (pink copy) is for the Consultant’s files. - Part 2 is the customer copy. Part 4 is the notice of cancellation and should be given to each customer with order of $25 or more. - Part 3 is the bank copy and is used for MasterCard, Visa and Discover sales.

satisfaction guarantee
100% satisfaction guarantee of all Mary Kay products by the Company to the consumer. Products will be replaced without charge, exchanged or the full purchase price refunded following its return to a customer’s authorized Consultant, or if the Consultant is no longer active, to the Company with proof of purchase.

Section 1
Regular line and limited-edition products. Section 1 is all products that make up the Mary Kay retail product line. Only Section 1 wholesale orders count toward active status, car qualification, company programs and contests. These items are eligible for repurchase by the company under the terms of the product repurchase program as outlined in the Consultant Agreement.

Section 2
Items that the Consultant can purchase to promote the sale of Mary Kay products. These include samples, skin care class supplies, recruiting supplies, and literature. These items are NOT discounted and are not intended for resale. Purchase of Section 2 items do not count toward a Consultant’s sales and are not eligible for repurchase by the company under the repurchase program outlined in the Consultant Agreement.

Section 2 Catalog
Brochure featuring all ongoing Section 2 sales-aid items available for ordering from the Consultant order form. Also available online.

Select Savings
Discount program for health-related services such as prescription drugs, dental, eye care, chiropractic care and more. This program is not health or medical insurance.

Seminar
The annual Company event to recognize the accomplishments of the sales force that also includes education and motivation.

Seminar area
Division of the sales force determined by Independent National Sales Director affiliation. Areas are names Diamond, Emerald, Pearl, Ruby, & Sapphire.

Seminar Contest
Yearlong sales and team-building contest leading to Seminar recognition. The contest period usually runs July 1 of one year to June 30 of the following year.

Seminar prize brochure
Brochure which features Seminar awards, recognition and requirements.

Seminar Queen
The top achiever in each category (court) during a Seminar contest year.

Senior Consultant
An active Consultant with one or two active personal team members. With two active team members, a Consultant is eligible to order her red jacket. Senior Consultants earn 4 percent personal team commission.

Senior Sales Director
See “Independent Senior Sales Director”.

60/40 rule
A suggested guideline a Consultant may use to determine the amount she pays herself once her inventory is adequate to support her business and she is earning money from her Mary Kay business. Sixty percent of the money from sales deposited for the week remains in the business account to cover product reorders and the remaining 40 percent, less other business expenses, represents earnings.

skin care class
Presentation of Mary Kay products and suggested skin care regimen to three to six customers.

Smart Start
An option for new Consultants to help launch their business:

• The Smart Start Business Package - Option includes 30 personalized business cards, Beauty Books mailed to up to 30 potential customers, plus 30 business-building tips e-mailed within 30 days. Cost is $10.
• The Smart Start Personal Web Site - Offers Consultant the opportunity to purchase a Mary Kay Personal Web Site at half off the annual rate for $25.

Star Consultant
A Consultant who places a minimum of $1,800 in wholesale Section 1 orders during a contest quarter: Stars for the Ladder of Success pin are awarded based on the size of the wholesale orders. Sapphire - $1,800; Ruby - $2,400; Diamond - $3,000; Emerald - $3,600; Pearl - $4,200.

Star Consultant program
The Star Consultant program is a recognition program for Beauty Consultants who order a minimum of $1800 in wholesale Section 1 products during a quarter. The first time a Consultant orders at least $1800 in Section 1 during a quarter, she receives a ladder of success pin and her first star to put on the pin. The color stone on the star corresponds to the amount of the order. $1800 Sapphire $2400 Ruby $3000 Diamond $3600 Emerald $4800 Pearl* * There are different levels of prizes for Pearl at 6000 and 7800, but they’re still Pearl.

Star of Excellence
Award for a Consultant who has completed eight quarters as a Star Consultant, double Star of Excellence for 16 quarters and triple Star of Excellence for 24 quarters.

Star Recruiter
An active Consultant who has three or four active personal team members. At the Star Recruiter level, a Consultant is eligible to wear the Mary Kay red jacket. Star Recruiters earn 4 percent personal team commission and can also earn a team-building bonus of $50 for each qualified personal team member, beginning with the fourth team member.

Star Recruiter pin
Awarded by a Sales Director to a Consultant when she is active and has three personal team members.

Starter Kit
The kit a new Consultant purchases when the Company accepts her Consultant Agreement. It includes the items a Consultant needs to start her Mary Kay business and conduct selling appointments, including supplies, demonstration products, educational materials and forms.

storing product
When a Consultant receives inventory, they will want to designate space such as a closet or shelf for the purpose of storing Mary Kay products. A Consultant should organize their inventory by product category and formula to make finding products easy. Use the “first in, first out” rule in selling: Sell the product that has been on your shelf the longest before you sell newer product. When stored properly, exposed neither to excessive cold nor heat, most Mary Kay products have a minimum three-year shelf life from the date of manufacture. Products that don’t have a minimum three-year shelf life have an expiration date stamped on the package. A Consultant should check the expiration date before making a product delivery.

Success Tools envelope
Envelope containing useful success tools for a Consultant to organize her Mary Kay business.

suggested retail price
A retail selling price suggested by the Company for each Mary Kay product; however, as independent contractors, Consultants determine their own retail prices. The Consultant’s wholesale price is based on a discount from suggested retail prices. The prices listed in the Beauty Book, Look Book, Personal Web Site and promotional brochures are also suggested retail.

tax essentials
A guide that provides the general tax information applicable to the Mary Kay business that is available on Mary Kay InTouch web site.

team building
Recruiting new Mary Kay team members.

team-building bonus
A bonus paid to active Star Recruiters, Team Leaders, Future Sales Directors and DIQs for each qualified personal team member beginning with the fourth active personal team member.

Team-building guidelines

• Follow the Golden Rule - If your prospect is a close relative or established customer of another Consultant, allow that Consultant the opportunity to ask her to join her team.
• No territories - Mary Kay follows an open territory policy for team building as well as for selling. This means that your team-building efforts are not limited to a specific geographic area within the United States, Puerto Rico, the U.S. Virgin Islands and Guam.
• A potential team member must be 18 years of age or older.
• Avoid conflict of interest - Your prospect cannot be a Mary Kay, Inc. employee or relative of an employee.
• Don’t prejudge - Your responsibility is to share the benefits a Mary Kay career has to offer so the prospect can make an informed decision.

Team Leader
An active Consultant with five to seven active, personal team members. Team Leaders earn 9 or 13 percent personal team commission and can also earn team-building bonuses. When a Consultant is active and has a minimum of five active team members, she receives a 9 percent commission on their combined wholesale Section 1 orders in any month. When a Consultant places a minimum $600 personal wholesale Section 1 order in the same month that at least five of her personal team members each place a minimum $200 wholesale Section 1, the Consultant’s commission increases to 13 percent.

team member
Person who is recruited by a Consultant or Sales Director to begin a Mary Kay business.

telephone coaching
The Consultant talks with the hostess to obtain names and phone numbers of each guest, reviews the hostess incentive, determines location for the class, refreshments, and encourages the hostess to confirm guests and invite more if necessary.

telephone directory listing
Sales Directors can elect to participate in the Company’s yellow pages advertising program.

tentative date booking approach
If a guest is hesitant about setting a date for her own class because she doesn’t know when she could hold it, a Consultant may want to suggest that the guest set a tentative date.

termination
The cancellation of a sales force member’s agreement with the Company.

top Sales Director trip
A trip awarded to Sales Directors who achieve the Circle of Excellence by achieving at least $650,000 in estimated unit retail production during a Seminar contest year.

Triple Star of Excellence
24 Star Consultant quarters.

unit
A Sales Director’s group of personal and non-personal team members.

unit meeting
A weekly meeting held by Sales Directors in order to educate, motivate and recognize their unit members.

unit member
A member of a Sales Director’s unit, but not necessarily her personal team member.

unit production
The combined total of the unit’s orders at wholesale or estimated suggested retail.

warm booking
When a consultant attempts to book an appointment with a stranger.

warm chatter
An informal way for a Consultant to develop rapport by engaging in a casual conversation with a stranger, hoping to turn them into a customer.

Weekly Accomplishment Sheet
This sheet provides a Consultant with an organized way to keep track of their weekly business. It summarizes income from appointments, Internet sales, reorders, the Preferred Customer Program and miscellaneous sales. One side of the Weekly Accomplishment Sheet shows the past week’s activities and income. The reverse side includes additional information about business activities and plans for the next week.

Weekly Plan Sheet
A sheet that looks like a grid where a Consultant can plan out every hour of every day for the next week. They are used to show where Mary Kay can be ‘fit in’ to a busy lifestyle.

wholesale
The cost of Section 1 products to a Consultant based on a discount from suggested retail prices. One should not draw the mistaken conclusion that the cost to a Consultant is the true wholesale cost of that product.

X’d-Out-Date Booking Approach
This approach helps determine when you’re going to hold appointments. Using a highlighter pen, a Consultant puts Xs in their datebook for when they would like to hold appointments. The Consultant then offers prospective hostesses a choice of available times.