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The information contained in the Mary Kay Terminology section of this site is from the Mary Kay Career Essentials document. It has been converted to HTML and reproduced here under the Fair Use Doctrine.

We make no guarantee as to the accuracy of our HTML conversion. Some errors may be present. Please direct any questions regarding Career Essentials to Mary Kay Inc.

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.

Independent Beauty Consultant

• Requirements: Independent Beauty Consultant Agreement accepted by the Company
• Avenues of Income
  • Product Marketing
    • On The Go
    • On The Face
    • Online
    • On Paper
    • On With The Show
    • Reorders
    • Company awards and prizes
  • Rewards
    • Mary Kay® pin
    • Appease® magazine
    • Eligible to attend Seminar and Career Conference
    • Eligible to qualify for quarterly Star Consultant recognition and prizes

Senior Consultant

• Requirements: 1-2 active personal team members, and you must be active
• Avenues of Income
  • Product Marketing
    • On The Go
    • On The Face
    • Online
    • On Paper
    • On With The Show
    • Reorders
    • Company awards and prizes
    • Team Building
      • 4% personal team commission
  • Rewards
    • 1 active personal team member
      • Senior Consultant pin enhancer
      • Eligible to qualify for quarterly Star Consultant recognition and prizes
    • 2 active personal team members
      • Red Jacket Pin
      • Eligible to qualify for quarterly Star Consultant recognition and prizes
      • Eligible to order red jacket

Career Path Program - A clearly defined path for advancement in a Mary Kay career that shows an Independent Beauty Consultant step-by-step how to progress from Beauty Consultant to National Sales Director. Please see the Advance brochure for full details on the career path program. See “Consultant Career Path” chart on Page 12. For more information, log on to the Mary Kay InTouch ® Web site.

• monthly commission statement - The monthly commission statement is considered a vital tool and was developed as a means for tracking the ordering activity of a Consultant’s personal team members, as well as providing valuable information on Consultant status and team-building commission data. Wholesale purchases are reflected on the monthly commission statement according to the month in which the wholesale order is received. (Postmarks are not considered for commission purposes.)All Consultants who have personal team members or have any type of account or commission receivable or payable will receive a monthly commission statement. This statement details information on orders placed by their personal team members for the previous six months and Seminar year-to-date (adjusted wholesale). Recruiters are urged to use this monthly statement to check the progress of each of their personal team members so that they may provide their team members with the encouragement or support they may need for continued success.
• husbands and wives as Consultants - Husbands and wives both may be Mary Kay Independent Beauty Consultants; however, there may be only one Sales Director per husband and wife team. They may operate separately just as if they were not related; however, for Company record purposes, one will be considered a personal team member of the other. In other words, the spouse of a Beauty Consultant must be recruited by that Beauty Consultant. The personal team commission and team-building bonus normally paid on team members will not be paid when a wife recruits her husband or vice versa. The spouse will not count in any way toward Sales Director qualification or toward any Company promotions or awards, including qualifying for or maintaining a career car under the Consultant career car program.
• Senior Consultant - An Independent Beauty Consultant who is active and has one or two active personal team members.
  • Requirements
    • One or two active personal team members
    • You must be active
  • Rewards
    • With one active personal team member:
      • Senior Consultant pin enhancer
      • Eligible to qualify for quarterly Star Consultant recognition and prizes
    • With two active personal team members:
      • Red Jacket pin
      • Eligible to order red jacket
      • Eligible to qualify for quarterly Star Consultant recognition and prizes
  • Compensation
    • 4 percent personal team commission
  • Personal Team Commission
    • All active Senior Consultants and above are eligible to receive a 4, 9 or 13 percent commission on the wholesale orders placed by their active personal team members.
    • When you are active and have one to four active personal team members, you can receive a 4 percent commission on their combined wholesale Section 1 product orders in any calendar month.
    • When you are active and have a minimum of five active personal team members, you can receive a 9 percent commission on their combined wholesale Section 1 orders in any calendar month.
    • You can increase your commission to 13 percent when you place a personal minimum $600 wholesale Section 1 order in the same month that at least five personal team members place minimum $180 wholesale Section 1 orders.
• Star Recruiter - An Independent Beauty Consultant who is active and has a minimum of three or four active personal team members.
  • Requirements
    • Three or four active personal team members
    • You must be active
  • Rewards
    • Star Recruiter pin
    • Eligible to wear red jacket
    • Receive $50 rebate on the purchase of the official red jacket only available from Mary Kay Inc.
    • Eligible to qualify for quarterly Star Consultant recognition and prizes
    • Challenger® newsletter
  • Compensation
    • 4 percent personal team commission
    • Eligible to begin earning team-building bonus
  • Team-Building Bonus
    • A $50 team-building bonus will be paid to Star Recruiters and above for each qualified personal team member beginning with the fourth personal team member.
    • In the month your team member’s initial qualifying order is received by the Company, you must be active and have a minimum of three other active personal team members to receive the bonus.
    • For career path status and compensation purposes, a team member is considered “qualified” if her initial order with the Company is $600 or more in wholesale Section 1 products, and that order is received in the same or following calendar month that her Independent Beauty Consultant Agreement is received and accepted by the Company.
• Team Leader - An Independent Beauty Consultant who is active and has five to seven active personal team members.
  • Requirements
    • Five or more active personal team members
    • You must be active
  • Rewards
    • Team Leader pin
    • Eligible to qualify for quarterly Star Consultant recognition and prizes
    • Eligible to go on-target for Grand Achiever (career car/cash compensation)
  • Compensation
    • 9 or 13 percent personal team commission
    • Team-building bonus
• Future Independent Sales Director - An active Independent Beauty Consultant who has eight or more active personal team members.
  • Requirements
    • Eight or more active personal team members (other than your spouse or a team member’s spouse)
    • You must be active
    • Achieving Future Independent Sales Director recognition status does not guarantee you will become an Independent Sales Director. You must successfully complete the Sales Director-in-Qualification requirements as set forth by the Company. A Sales Director is an independent contractor and not an employee of Mary Kay Inc. The Sales Director position is appointed at the sole discretion of Mary Kay Inc.
  • Rewards
    • Future Independent Sales Director pin and scarf
    • Eligible to qualify for quarterly Star Consultant recognition and prizes
    • Eligible to submit commitment card to enter Sales Director-in-Qualification program
    • Eligible to qualify for Consultant Grand Achiever (career car/cash compensation)
  • Compensation
    • 9 or 13 percent personal team commission
    • Team-building bonus

Advancement to Sales Director is the decision a Beauty Consultant makes with the help of her Sales Director in the progression of her own Mary Kay business. The Sales Director Qualification Board reserves the unconditional right to decline acceptance of a DIQ commitment card.

• Independent Sales Director-in-Qualification (DIQ) - A Beauty Consultant who is in qualification for the position of Independent Sales Director. This information is also available online.
  • DIQ Entry Requirements - In order to submit a commitment card to the Company stating an intent to begin Independent Sales Director-in-Qualification (DIQ), an Independent Beauty Consultant must meet the the requirements as defined here: Mary Kay Career Essentials Consultant Career Path

Internet Programs

Mary Kay InTouch® Community - The Mary Kay InTouch® Community is a Web site exclusively for Mary Kay Independent Beauty Consultants. This site provides many time-saving tools to help you in your Mary Kay career. You will find the most current information from the Company, personal information about your business, inspiring words of wisdom from Mary Kay and much more. From this site, you will also be able to purchase or update your Mary Kay® Personal Web site, review your customer orders, place product orders, register for Company events and submit Independent Beauty Consultant Agreements. Visit the Mary Kay InTouch® Community to access all the online tools available to you. Just go to http://www.marykay.com and click on the “Mary Kay InTouch®” link.

Mary Kay® Personal Web Site Program - Independent Beauty Consultants can have their own Company-authorized, customized-shopping Web site through the Mary Kay® Personal Web Site program. Each Web site is personalized with the Beauty Consultant’s information and features an interactive online shopping section and an array of information on Mary Kay® products, gift ideas, beauty advice, career information and much more. You can offer your customers quick, convenient online shopping 24 hours a day. Log on to the Mary Kay InTouch® Community for details on how the program works and how to enroll online. Once you have your Web site, be sure your customers know how to reach you online. Include your Web site address on business cards, brochures, newsletters and address labels, and feature it on your telephone answering message. Beauty Consultants must be active in order to purchase a Personal Web site. Please note that it may take up to 72 hours after a minimum $180 wholesale order is processed for a Beauty Consultant’s activity status to be updated enabling her to purchase or renew a Web site. A Beauty Consultant must maintain an active status to be included in the ZIP code search of the Consultant Locator on http://www.marykay.com. If a Beauty Consultant reaches former Beauty Consultant status, her Web site will no longer be displayed.

SurfMK™ - Get connected to the Internet using SurfMK™ Internet Access. This family-friendly ISP is part of The Partnerships of the Heart program offering Beauty Consultants an exclusive discount on Internet service with a donation to the Mary Kay Ash Charitable Foundation. For more information, log on to the Mary Kay InTouch® Community.

MKeTouch™ - State-of-the-heart e-mail from you to your customers. Electronic greeting cards are customized for Mary Kay Independent Beauty Consultants to send to their customers. With MKeTouch™ you can send colorful, captivating, state-of-the-heart e-mail to your customers anytime, anywhere.You can send an online birthday greeting to celebrate your customer’s special day, share the latest Mary Kay sales promotion, product tips or share information about the Mary Kay opportunity. Plus, if you are a Mary Kay® Personal Web Site program participant, each e-mail you send will contain a link to your Personal Web site, giving your customers access to shop with you 24 hours a day, seven days a week. For more information, log on to the Mary Kay InTouch® site.

free Marykay.com e-mail service - You are invited to activate for free your very own Marykay.com e-mail account that will add professionalism to your e-mail communications and allow you to always keep the same e-mail address for your Mary Kay business no matter which Internet Service Provider you use. It will also make it easy for your customers to remember, especially for Personal Web site participants, since your e-mail address matches your Web site address. This program works similarly to Call Forwarding on your telephone. Your customers send e-mail to your business e-mail address, Marykay.com, and we forward it to the address that you specify. The forwarding takes place instantaneously and seamlessly so you don’t lose any time in getting your important customer communications.

e-Cards - A term used to describe electronic postcards sent to prospects, customers or fellow Consultants offering specific Mary Kay information, motivation or inspiration. See MKeTouch™ and myCustomers for more details on how to access and send these powerful electronic communications.

Mail Order and Desktop Office Manager Order Self-Service Order Resolution - It is easy to resolve issues relating to product orders sent by mail or by Sales Directors via Desktop Office Manager. If there is a problem with your mail or Desktop order that you can correct online, you will receive immediate notification via the Mary Kay InTouch® “Order Status” page. A courtesy e-mail notification will also be sent, but the “Order Status” page is where you can depend upon instant notification. With a few clicks of the mouse, you will be able to resolve the problem online in a matter of minutes.

myCustomers - Online organization of your customers’ information is at your fingertips through the myCustomers Web site. In addition to managing customer information — including customer profile data — online, you have the option of setting up customer groups that you can easily access when it’s time to contact them. A “tickler” system is also available that provides various reports based on special occasions/events, like birthdays. Once you receive a reminder of an upcoming occasion/event, with the click of a mouse, you can easily send an e-card with MKeTouch™. Any customers in your myCustomer list will automatically display in your preferred customer list when you enroll in the Preferred Customer Program. For more information, log on to the Mary Kay InTouch® Web site.

Preferred Customer Program Web site - This program provides you the opportunity to develop relationships, build your business and promote your Mary Kay® Personal Web Site. The features of the Preferred Customer Program Web site allow you to enjoy the convenience of enrolling your customers online, updating their addresses and selecting which customers you want to receive The Look and optional mailings.

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.

Ladder of Success program - Incentive program to encourage Independent Beauty Consultants to achieve consistent sales goals. See “Star Consultant.”

Leadership Conference - A Company-sponsored conference held each January in which Independent Sales Directors and above may register to attend for inspiration, motivation and education.

LearnMK™ - LearnMK™ is the education Web site that provides information that may help you manage and grow your Mary Kay business. The Web site includes career resources, business development, legal issues and sales and marketing ideas. You can also access the Career Essentials Success Tools forms on this Web site. LearnMK™ can be accessed from the main page of Mary Kay InTouch®.

legal considerations - To find answers to your legal and tax questions and to access the Legal Ease brochure and Tax Essentials booklet, visit LearnMK™ on the Mary Kay InTouch® Web site. See also “tax information.”

• Travel to Foreign Countries - Mary Kay® products manufactured for sale in the United States cannot be sold in foreign countries. You should be aware that taking products designed for sale in the United States for resale in other countries could involve you in difficulties with: customs authorities for failure to pay import duties, packaging and labeling officials because products are not properly labeled for other markets and tax authorities for failing to pay tax on the sale to their governments through the Mary Kay Inc. subsidiary.
• Unemployment Compensation - You are not an employee of Mary Kay Inc. Since you are a self-employed person, the Company does not contribute any amount for you under various state unemployment insurance tax requirements. Thus, you may not claim unemployment by virtue of your having been associated with Mary Kay Inc. as an Independent Beauty Consultant.
• Use of Company Names for Personal Business Purposes
  • Personal Accounts - No Beauty Consultant or Sales Director may use the trademarks or trade name Mary Kay® or Mary Kay Inc. on personal checks (with the exception of checks offered through MKConnections®) or credit card accounts. These accounts may easily be kept separate for business purposes by the designation cosmetics account, business account or similar words.
  • Telephone Answering - You should not answer your personal telephone in a manner or have a message which leaves the caller with the impression that she has reached the corporate offices of Mary Kay Inc.
  • Telephone Directory Listing - As a Beauty Consultant, you are not allowed to list your Mary Kay business or residential service telephone number in any white or yellow pages directories (whether published by telephone companies or private publishing companies) in any way in connection with the Company-owned trade name, trademark or corporate names.This privilege is reserved for those Sales Directors who have elected to participate in the Company’s yellow pages advertising program and only after an agreement has been executed between the Sales Director and the Company concerning the licensed use of the Company’s trademarks or trade names.

look book
The Mary Kay catalog of products, which also showcases several coordinated makeup “Looks.” A new look book is published every three months and features limited-edition items, new products and the current line of products.

mail orders - See “ordering Mary Kay® products.”

marketing plan - The Mary Kay marketing plan developed by Mary Kay and her son Richard Rogers which ensures that every Independent Beauty Consultant’s opportunity is equal to her ambition and ability.

• dual-marketing concept - Another important aspect of Mary Kay Inc. is its dual-marketing system — its separation of corporate management from independent contractors selling the Company’s products.
  • corporate management and staff:
    • plan product and market development
    • provide quality products to Independent Beauty Consultants
    • provide the most liberal discount structure and highest commission opportunity possible
    • advertise Mary Kay® products to give marketing support for Consultants
    • offer incentives and awards for Consultants who excel in sales, team building or leadership
    • organize national and regional Seminars and Career Conferences which Consultants may voluntarily attend for education and inspiration
    • make suggestions (as exemplified by this guide) designed to enable Consultants to succeed in their own Mary Kay businesses
    • offer products and services to help Consultants grow their businesses and earn money.
  • As a Beauty Consultant and the wholesale purchaser of Mary Kay® products, you:
    • operate independently of corporate management
    • derive earnings from retail sales of Mary Kay® products to the ultimate consumers
• About the Marketing Plan - When Mary Kay founded the Company, she developed a special marketing plan which included the best features and avoided the mistakes that she had previously encountered in her 25 years with direct sales companies. The plan ensures that every Consultant’s opportunity is equal to her ambition and her ability.
• Income is based on retail sales - The entire marketing structure is based upon and intended to foster retail sales to ultimate consumers, with commissions earned based upon the products being sold at retail prices.
• All products are purchased directly from the Company - All Sales Directors and Consultants purchase products directly from the Company based on the same discount schedule. There is only one wholesale sale (from the Company to you) and one retail sale (from you to your customer). Our products do not pass through several levels of distributors. Every Consultant sells her own products at retail to consumers of her choice.
• You decide to advance yourself on the basis of proven ability - Mary Kay Inc. does not sell franchises or distributorships. You are able to advance in this career when you are ready.
• There are no territories to limit where you may sell or recruit - Many companies sell franchise rights within a limited geographic area, and many assign territories. Mary Kay Inc. believes this is unnecessary. You may build your team and sell merchandise in any of the 50 United States, Puerto Rico, the U.S. Virgin Islands and Guam.
• Your Starter Kit puts you in business - Your Mary Kay business begins with a Starter Kit and does not require the purchase of any additional amount of product. Adequate inventory, however, will help ensure that you will be able to handle a quickly growing business. The benefits of purchasing inventory are discussed in Career Essentials on the Starting Points: Beginning Your Mary Kay Business audiotape.
• Only Mary Kay® products are presented or sold - Appointments with customers are the marketplace where our products are intended to be sold to the ultimate consumer. Any products or services mentioned during appointments are naturally identified with our Company and our trademarks. We ask Consultants not to introduce products or services not offered by Mary Kay Inc. during their appointments to avoid creating trademark confusion and customer misunderstandings.

Mary Kay Ash Charitable Foundation - Nonprofit, public foundation focusing on funding research of cancers affecting women and on efforts to prevent violence against women. Visit the Foundation Web site at http://www.mkacf.org.

Mary Kay InTouch® Community - See “Internet programs.”

Mary Kay’s mission - To enrich women’s lives. We will do this in tangible ways, by offering quality products to consumers, financial opportunities to our independent sales force and fulfilling careers to our employees. We will also reach out to the heart and spirit of women, enabling personal growth and fulfillment for the women whose lives we touch. We will carry out our mission in a spirit of caring, living the positive values on which our Company was built.

Mary Kay® Personal Web Site program - See “Internet programs.”

Mary Kay® philosophies - The principles and teachings of Mary Kay Ash which incorporate many founding beliefs of the Company, including the Golden Rule; priorities of God first, family second, career third; the go-give spirit and the adoptee program.

Mary Kay® Product Replacement Program - See “customer refunds and exchanges.”

http://Marykay.com - The Mary Kay corporate Web site featuring Company and product information.The Consultant Locator allows visitors to connect to the Personal Web site of a Consultant in their ZIP code. mileage, recording - See “tax information.”

Marykay.com
The Mary Kay corporate Web site featuring Company and product information. The Consultant Locator allows visitors to connect to the Personal Web Site of a Consultant in their zip code.

mileage, recording
See “tax information”.

Million-Dollar Circle of Excellence - Seminar achievements for Independent Sales Directors whose units achieve $1 million or more in estimated unit retail production during the Seminar contest year.

MKConnections® - The MKConnections® program supports Mary Kay Independent Beauty Consultants and Sales Directors by offering products and services to help advertise and organize their businesses, save money and invest in their long-term financial security. Business-building tools include business cards and checks featuring pictures of Mary Kay® products, stationery, a Visa® credit card program, apparel and business gear and product protection insurance. Detailed information and online ordering for all MKConnections® programs can be found at http://www.mkconnections.com.

• Business Cards, Checks and Stationery - offers products to help you grow your business with items such as Mary Kay® business cards, business card kits, stationery items and checks. For more information or to order business cards, checks and stationery, log on to http://www.mkconnections.com or call 1-800-627-9577.
• Apparel and Business Gear - offers apparel and accessories with the Mary Kay® logo to help you advertise your Mary Kay business and product carriers to keep your business organized and mobile. For more information or to order, log on to http://www.mkconnections.com or call 1-800-350-7382.
• Visa® Credit Offer from First USA - cardholders receive a gift of Mary Kay® product annually when the card is used to place a minimum $180 wholesale Section 1 order. This credit card program is designed to help you manage your inventory for the growth of your long-term business. Applying is easy. Just log on to http://www.mkconnections.com or call 1-800-804-8516.
• Product Protection Insurance - is an insurance policy designed especially for Mary Kay Independent Beauty Consultants who wish to protect their product inventory from theft or damage. For more information or to enroll, log on to http://www.mkconnections.com or call 1-800-697-4549.
• Select Savings - offers a package of discounts that provide savings on health-related services such as vision care, dental care, prescription medication and more.This program is not health or medical insurance. For more information or to enroll, log on to http://www.mkconnections.com or call 1-877-483-7478.

Note: More information about most MKConnections® programs mentioned above can be found in the Success Tools envelope.

MKeTouch™ - See “Internet programs.”

mkvelocity.com - Special area of the Mary Kay corporate and Personal Web sites devoted to the Velocity® product line. If the Velocity® generation is your target audience, you can use this Web site address on your Mary Kay® business cards and on your reorder labels allowing visitors to directly access the Velocity® content.

Momentum Month - The first month after qualification under the Consultant Grand Achiever program. During this month, the qualifier’s personal and team production is doubled, including any program credits. (For more information about program guidelines, ask your Sales Director or refer to the Advance brochure. You can obtain an Advance brochure from your Sales Director or access a copy through the Mary Kay InTouch® Web site.)

National Sales Director emeritus
Retired Independent National Sales Director.

National Sales Directors, NSDs
See “Independent National Sales Director”.

new Consultant rewards

• As a new Consultant, you can be eligible to qualify for a product bonus incentive based on your initial wholesale Section 1 order.
• If your initial order with the Company is $600 or more wholesale of Section 1 products and is received by the Company within the same or following calendar month as your Independent Beauty Consultant Agreement, you will receive a product bonus based upon the size of your initial order.
• You’ll be eligible to participate in the ongoing quarterly contest programs based on the accumulated wholesale orders postmarked during the contest quarter.
• You may want to refer to the Ready, Set, Sell! Inventory Options for New Consultants brochure for the product bonuses. For the online brochure, log on to the Mary Kay
  InTouch® Web site.

notice of cancellation
The last copy of the sales ticket is a notice of cancellation form. When a sale is $25 or more retail, current government regulations require that this copy of the notice of cancellation be given to the customer. To fail to do so could be considered an “unfair and deceptive act or practive” by various government agencies. See “sales ticket.”

offspring
A sales unit that originates from within another unit. When a Consultant finishes DIQ and becomes a Director with her own unit, that new unit is known as an “offspring” of the unit she was originally a member of.

online, ordering - See “ordering online” and “Internet programs.”

Online Agreements
Provides the recruiter and the new team member with the ability to submit a Consultant Agreement to the Company through the Internet. The team member completes the personal information, agrees to the terms and conditions and purchases the Starter Kit. Upon successful submission of the credit card payment, the new team member is assigned a Consultant Number and is able to join the online community and place her first order.

On Paper
Sales made through catalogs and brochures only. No facial or skin care class appointment held. One of five ways to market Mary Kay products.

on target

Term used to describe a Consultant who has achieved part of a specific goal and, with continued activity, could achieve it.

On The Face

Sales made at a facial or skin care class. One of five ways to market Mary Kay products.

On The Go
A quick appointment, typically 15 minutes or less. One of five ways to market Mary Kay products.

On With The Show
Appointments where a Consultant displays and demonstrates product sets. These appointments are typically held for larger groups (6 or more) and do not involve the typical “face washing” and makeup application of a skin care class or facial. One of five ways to market Mary Kay products.

Online
Selling Mary Kay products through use of the Internet using the Consultant web site. One of five ways to market Mary Kay products.

ordering Mary Kay products
Remember, when you place an order with the Company for products, you are purchasing the products at wholesale prices.The wholesale price of a product order is determined by a discount from the Company’s suggested retail price.The discount is dependent on the amount of Section 1 products ordered on the Consultant order form. All Beauty Consultants and Sales Directors buy directly from the Company based on the same discount schedule. The Consultant order form lists all the products available in the Mary Kay® product line under the heading “Section 1 – Products.” Refer to the Consultant order form for the current discount schedule and product promotion.You’ll want to take advantage of the maximum discount whenever possible.

ordering sales aids
Items listed in “Section 2 – Sales Aids” of the Consultant order form are other items you may purchase for use in your business. Section 2 items are not available at a discount, are not intended for resale and are not subject to the repurchase obligation set forth in your Independent Beauty Consultant Agreement. The Consultant order form includes the most frequently purchased sales aids as well as the latest promotional items. For the less frequently purchased items, you’ll want to refer to the Section 2 Catalog you received in your Starter Kit. The catalog pictures all ongoing Section 2 items.When you want to order something not listed on the current order form, simply write in the name, part number and price in the “Write-In” section of the order form. (The catalog will refer you to the order form if the item is listed on the order form.) The catalog will be updated twice a year. A copy of the catalog will be in Applause® magazine whenever it’s updated.

The Consultant order form includes the most frequently purchased sales aids as well as the latest promotional items.

ordering online
A consultant can order Mary Kay products anytime from any computer with access to the Internet using the Mary Kay InTouch program.

ordering by telephone - Following are guidelines for using the Mary Kay Inc. telephone ordering service:

• Payment by MasterCard, Visa or Discover Card is required for orders by phone.
• Complete your order on a current Consultant order form before calling. Compute your suggested retail, wholesale and tax amounts. Sales tax is based on where the order is being shipped.
• Call toll-free 1-800-828-9897. Telephone orders are accepted from 7:30 a.m. to midnight Central time, Monday through Friday, except holidays and the last two business days of the month.
• Your Mary Kay telephone order representative will need the following information:
  • Consultant Number
  • Shipping address
  • Suggested retail and intended wholesale amounts
  • Quantity and part number for each item you order
  • Credit card number and expiration date
• The normal discount schedule, freight charges and any special offers will apply to telephone orders.
• A $3.50 telephone charge will be added to each order.
• An Independent Beauty Consultant Agreement must be received in the branch with payment for the Starter Kit (or a Consultant Number must be on file) before a new Consultant’s order can be processed.

ordering by mail - Send your original completed Consultant order form to the branch designated for your area. Your Sales Director will advise you of the branch that will service your needs. You may find it useful to send your Sales Director a copy of your order and to keep a copy for your files.

Branch hours are 8:30 a.m. to 5 p.m. Monday through Friday (local time). Local sales counter hours are from 8:30 a.m. to 7 p.m. Monday through Friday (local time). Contact Customer Service at 1-800-272-9333, and they will connect you to your appropriate branch. See “branches” for branch addresses and phone numbers.

ordering with MasterCard, Visa or Discover Card - To pay with a MasterCard, Visa or Discover Card, you will want to follow these steps:

• Complete a Consultant order form and fill in your MasterCard, Visa or Discover Card account number, expiration date and signature.
• Do not call MasterCard,Visa or Discover to authorize your order before sending it to the branch (so that your account is not charged twice). The branch will call and authorize all orders when you purchase items from the Company.
• To allow for the maximum amount of time to pay off your entire bill, place your order the day after your credit card closing date (on your statement). For purposes of meeting production requirements, if authorization is declined, the order may not count toward that month’s production or be eligible for a contest or product offer based on the postmark cutoff or end-of-month deadline. In the event a charge is unexpectedly not authorized, the branch will attempt to notify the Consultant.

ordering tips -

• Remember to allow 10 days to two weeks for orders placed by mail. These orders must be accompanied by a valid MasterCard, Visa or Discover Card number, cashier’s check or money order (no personal checks) for the exact amount of purchase. Never mail cash.
• To place your order in person at your local branch, please submit a completed Consultant order form and full payment at least 48 hours in advance of when you wish to pick up the merchandise. During the heavier volume periods at the end of the month, fulfillment of pickup merchandise will require 72 hours.
• For customer service regarding your order, call 1-800-272-9333 from 8:30 a.m. to 5 p.m. local time, Monday through Friday. Automated information on the status of your order is available 24 hours a day, seven days a week, from a touch-tone phone by calling 1-800-440-5370.
• Using the automated information line, you can check your:
  • order description
  • process date
  • postmark date
  • ship date or projected ship date
  • wholesale Section 1 total
  • total order amount
  • annual subscription fee for your Mary Kay® Personal Web Site
  • Information is accessible for your five most recent orders within the last six months.
    • To access the automated information line, you’ll need to enter your nine-digit Personal Identification Number (PIN). For easy reference, this number is your Social Security Number. If you do not know your Social Security Number or wish to have your PIN changed, call a branch customer service representative.
• Self-Service Order Resolution for problem orders is available via the “Order Status” page on Mary Kay InTouch®.

  To resolve issues with your order, go to the Mary Kay InTouch® Web site, access the “Order Status” page and click on the link next to the order in question. You can then follow the instructions to correct the problem and submit the order back to the Company. It’s that simple. Just be sure to note that the problem must be resolved by the deadline indicated on the “Order Status” page and in the e-mail. After the deadline, the order will no longer be available for you to resolve yourself and you will need to contact Customer Service if resolution is still needed.

  Once the order has been submitted back to the Company, you will receive a follow-up e-mail confirming that the problem has been resolved. Customer Service will contact Consultants who do not have an e-mail address on file with the Company.

  This service will be available for the majority of mail orders received on the last day of the month. However, you will have less time to resolve any problems with these orders than orders received earlier in the month. Self-Service Order Resolution will not be available for any mail orders keyed on the final day of month-end processing.

Packing slip/Invoice
The computer printout which is shipped with the orders is provided to all Consultants and Directors to furnish a detailed description of the items shipped, items back ordered and the cost of the order.

part number, item number
Six-digit identifying number printed on product, carton and on the Consultant order form. Also used to order by part number when ordering online.

personal team commission - Percentage paid to all active Senior Consultants and above on the wholesale orders placed by their active personal team members. See “career path program” for details.

Perfect Start
The Perfect Start is one of two suggested goals for a new Consultant to help get her business off to a good start. To achieve a Perfect Start, a Consultant must facial 15 customers within a two-week period.

performance account
The account helps Grand Achiever participants make up any personal/team shortage during their participation in the Grand Achiever program. The account is established with a $4,500 balance in the month following qualification, which is the momentum month (see Momentum Month). Each month while participating in the program, excess production over the maintenance requirements will add to the account balance while production shortfalls will reduce the account balance by the production shortfall amount. The maximum balance carried forward each month is $13,500.

personal accounts
No Consultant or Director may use the trademarks or trade name Mary Kay or Mary Kay, Inc. on personal checks (with the exception of MKChecks offered through MKConnections) or credit card accounts. These accounts may easily be kept separate for business purposes by the designation cosmetics account, business account or similar words.

personal team commission
Percentage paid to all active Senior Consultants and above on the wholesale orders placed by their active person team members.

Personal Web Site program
See “Internet programs”.

placing product orders
See “ordering Mary Kay products”.

Pontiac Vibe
A career car that a Consultant can earn the use of by meeting the Grand Achiever program guidelines. Refer to the Advance brochure for guidelines.

Power Start
The Power Start is one of two suggested goals for a new Consultant to help get her business off to a good start. To achieve a Power Start, a Consultant must facial 30 customers in a month.

Preferred Customer Program
Also known as the PCP. A program for consultants to create a database of customers, potential customers, and potential recruits. Each quarter consultants are encouraged to enroll their “Preferred Customers” in the program for three mailings and/or emails. This is presented as a service to the consultant. Consultants pay a certain price per customer to participate. On behalf of the consultant, the company mails each customer enrolled a copy of the current edition “The Look” at a reduced rate, in addition to other mailers and emails not otherwise available through the Section 2 catalog. The Preferred Customer Program also offers customers a “Free Gift with Purchase” program, which the consultant may or may not participate in. This depends on if the consultant chooses to purchase the gifts from the Section 2 catalog to then give for free to customers who make qualified purchases. When a consultant terminates from the company, either by not ordering in 12 months or by returning inventory for buyback, the consultant’s Preferred Customer list is forwarded to her director.

Premier Club
Career car program that awards Independent Sales Directors the use of a Grand Prix or cash compensation by meeting the career car program guidelines for Premier Club. See “career car program.” For more information, log on to the Mary Kay InTouch® Web site.

pre-profiling
Contacting a skin care class guest, usually by telephone, to get her skin care information by asking her the questions on the skin care profile. When pre-profiling, a Consultant will want to ask guests questions 4 and 5 on the profile to help you know which products to use as well as the foundation shade range to select. The guests can fill in the rest of the profile information during the class or show. After they have completed the questions, the recommended products will be indicated on the hard copy of the profile.

private makeover session
An optional incentive to book the hostess for another class. The focus of this appointment is on a customized color cosmetic look for the customer or hostess.

Product Protection Insurance
Created exclusively for Consultants. Product Protection Insurance covers Mary Kay product inventory and is available to active Consultants.

ProPay
Automated customer credit card sales system, accessible through the Mary Kay InTouch Web site.

product reorder labels
Small labels with a Consultant’s name and contact information to be placed on each product sold to make it easier for customers to reorder.

Product Replacement Program
See “customer refunds and exchanges: The Mary Kay Product Replacement Program”.

product replacement request form
Form for Consultants to use to receive replacement products for customer refunds and exchanges.

Product Returns
For returns made by the Consultant, see “Consultant product return policy”. For product returns for customers, see “customer refunds and exchanges: The Mary Kay Product Replacement Program”.

production: personal, team or unit - The term used for the total wholesale or estimated retail amounts purchased from the Company by an Independent Beauty Consultant, team or unit.

qualification
The process of meeting the requirements of a particular level of achievement.

qualified team member
A person is qualified once they sign a Consultant Agreement and place a Section 1 order of $600 or more during a specific time period, usually within the month they sign the Agreement and the next month.

quarterly contests
Company-sponsored contests to help motivate a Consultant to earn a specific prize and encourage goal-setting.

quarters: contest, calendar
Contest quarters are the division of Mary Kay year into four segments, called “quarters”, with each lasting approximately 13 weeks. Contest quarters normally run mid-month to mid-month (e.g., Sept. 16 - Dec. 15).Calendar quarters (e.g. Oct. 1 - Dec. 31) are used for career car program production purposes. The Mary Kay Seminar contest year is July 1 of one year through June 30 of the following year.

queen’s court
An elite group of Consultants or Sales Directors who have qualified for special recognition at Seminar for sales or team-building achievements.

recording mileage
See “tax information” for details.

Recruit
The person that a Consultant or Director has personally brought into Mary Kay by convincing them to join and sign a Consultant’s Agreement.

recruiter
Person who recruits another person to start her own Mary Kay business.

red jacket

Red blazer signifying an Independent Beauty Consultant who has built her team with three or more active team members. As soon as a Beauty Consultant has two active team members, she can purchase a red jacket using the Company red jacket order form. She is eligible to wear the jacket when she becomes a Star Recruiter with three active team members.

regular line
The ongoing collection of Mary Kay products.

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). 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.

reprogramming
Occasionally changing some of the customer’s product formulations according to her skin’s needs, often due to changes in climate conditions.

re-recruitment of former Consultants
See “Consultant activity” for details.

retail production
The total amount of sales based on suggested retail prices by a Consultant, Sales Director, team or unit during any given period.