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.

Career Path Program

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