· Pure
Romance Consultants are independent contractors who have discretion to discount
Pure Romance products. Consultants have the option of maintaining
inventory to support their business and to purchase products for their personal
use. Management’s best estimate is that Consultant discounting,
maintenance of inventory, and personal use reduces Consultant income by
approximately 15% on average. The figures in the chart incorporate this
adjustment.
· The
Average Total Earnings data is net of kit purchases by Consultants. Kits
include products and marketing materials Consultants may use to run their businesses.
· To
be eligible for override earnings, Consultants must be active themselves and
have at least one active team member in their downline during the relevant
period.
· Overrides
and bonuses are paid out on a monthly basis to any Consultant who has an active
status, has at least one active team member in their downline in a given month,
and meets the requirements to receive such payout. Consultants who have one or
more active team members hold the level of “Advanced Consultant” or above.
· In
the chart above, Consultants are identified at the level they held on December
31, 2020, and Consultants may have held a higher or lower level earlier in the
year and earned overrides at that higher level. The overrides and bonuses shown
in the “Inactive” row belong to those who were active status earlier in the
year, but were inactive on December 31, 2020.
· The
figures in the chart include all Consultants who (i) were active at any point
during 2020 (defined as generating at least $100 every two calendar months by
either purchasing this amount of inventory to sell at in-home parties, having
customers place $100 in product from their personal website, or a combination
of both totaling at least $100); and (ii) purchased a kit that included product
for resale, purchased product that could be resold, or made sales through their
personal websites. If a Consultant purchases a kit that includes both demo
products and sellable inventory, they are considered active immediately upon
the date of their kit purchase. If a Consultant purchases a kit that does not
include sellable inventory, then they must fulfill the $100 sales requirement
within 60 days of their kit purchase to have active status. This “never activated”
group of Consultants accounts for approximately 5% of the population who either
purchased their kit in 2020 or entered the year with a pre-existing active
status from the prior year, and these individuals are not included in the
chart.