Marketing plan_2021_eng-small

Compensation Plan

Dear friends! We are glad that you’ve decided to join Faberlic. Our company is one of the biggest Russian producers of cosmetics, fragrance, household goods, wellness products, adult and children's clothing, and many other interesting and high-quality products. Now you can find everything you need for you and your family in our catalogue. But that’s not all! Faberlic is one of the biggest direct selling companies in the world as well. We unite people who are ready to earn money in partnership with our company and want to learn how to make even more. How? Just follow the Faberlic compensation plan. • Do you like the quality of our products and want to buy your favorite ones at a discount? Using the compensation plan, you will find the best way to save money. • Do you want to earn additional income in your free time by telling others about your favorite products? If you know the compensation plan, you will be able to do so more successfully. • Maybe you want to start your own business that you can pass down through your family? Then knowledge of the compensation plan is absolutely essential! Whichever method you choose, whether the opportu- nity to purchase products for personal use, earn ad- ditional income, or be an entrepreneur, each one has its own benefits. We will tell you about it below.

Contents 4 Basic definitions 6 Faberlic international business 8 Main forms of Representative commission: Volume Discount, Director Bonuses 14 Extra bonuses : Qualification Bonus, Quick Start Bonus, Stability Bonus, Development Bonus, Maternity & Adoption Bonus 18 Faberlic rank system 3

Basic definitions SPONSOR – PREFERRED BUYER the person who told you about Faberlic and invited you a person who has an ID number, can buy Faberlic into a working relationship with the company. products personally, and gets 20% off the catalogue prices. ID NUMBER – a number automatically assigned to you by the system REPRESENTATIVE – as soon as you register with the company. It is also used a person who has an ID number, places an order to log in to your personal account on faberlic.com of 50 points or more each billing period, and gets the benefit of a 26%* discount on Faberlic products. BILLING PERIOD – the validity period of one catalogue, set by the company 1ST LEVEL REPRESENTATIVE – a person whom you personally invited to join Faberlic POINT (P) – a numeric indicator assigned to each and registered with the company directly under you. Faberlic product. Points are used to calculate the volume of purchased products and the amount 2ND LEVEL REPRESENTATIVE – of compensation a Representative receives each billing a person whom your 1st-level Representatives invited period, in any country where Faberlic is represented. into the company. PERSONAL VOLUME (PV) – GROUP VOLUME (GV) – the amount of products you have purchased during the sum of the Personal Volumes (PVs) of all a billing period, measured in points. Representatives in your group in a billing period, including 23% groups. Measured in points. BUYER OR CUSTOMER – a person who doesn’t have a personal Faberlic ID *The discount is 20% for certain product categories number and buys Faberlic products at catalogue prices. The Representative is responsible for the placement and delivery of such orders. 4

PERSONAL GROUP (PG)– Basic definitions all the Representatives whom you or your 5 Representatives invited into the company. Your team or group. Working with your group is one of the methods to increase your income. As a Sponsor, you will receive a commission for your team’s work, as well as for training and supporting new Representatives. Once your team turns over 3,000 or more points worth of sales (23% Volume Discount), it is separated from your Personal Group and begins to exist as an independent group. PERSONAL GROUP VOLUME (PGV) – the sum of Personal Volumes (PVs) of all Representatives in your group during a billing period, not including 23% groups. Measured in points. VOLUME DISCOUNT (VD) – Representative commission based on the group’s sales volume and calculated every billing period according to the compensation plan.

International business development in partnership with Faberlic PERSONAL GROUP MAIN FORMS OF REPRESENTATIVE COMMISSION: 1 Commission for personal sales 2 Commission for group sales 3 Director bonuses 0% 3% 6% 9% 12% 15% 19% PGV ! The terms 3 000 PTS of the Faberlic compensation plan Newcomer Director are valid in all countries where Faberlic has a branch office. 6

1COMMISSION FOR PERSONAL SALES Faberlic international business Your first step is to learn how to earn income from 7 personal sales. This is simple: show the catalogue to people you know and collect their orders. You earn the difference between the catalogue prices and Representative prices. This is the first type of Faberlic Representative income. 2COMMISSION FOR GROUP SALES Your second step is to learn how to invite new people onto your team and get them interested in your activity. Soon you will be earning commission for sales of your group. This second type of income (for your Personal Group’s work) is Volume Discount.* 3DIRECTOR BONUSES Your third step is to learn how to identify promising members of your Personal Group and help them develop their leadership skills. Train future leaders to look for newcomers and make them interested in our business. Motivate your leaders to make personal sales. What for? So that your group can successfully develop and because the bigger your team is, the bigger your sales and income will be. And then after some time you can also get the third type of income: Director bonuses for every 23% group in your team. *Volume Discount (VD) is actually a discount on your orders. It can be credited to a Representative’s personal account, and can be used to pay for up to 65% of a product’s cost. If you want funds to be paid to your bank account, you must sign a contract for services with the com- pany, which allows for the transfer of VD in cash form.

Main forms of Representative commission 1. VOLUME DISCOUNT Minimum Minimum Difference between your % VD level 3–23% of Personal Group sales PV in PGV in and your Representative’s % VD level You can get Volume Discount (VD) Title % VD points, points, for your Personal Group, if your personal sales volume (PV) €/£ €/£ is 50 points or more and the volume of your personal group Director 23% 50 Pts 3 000 Pts (PGV) is more than 100 points for 90 / 80 5400 / 4800 the billing period. Senior Vice- 50 Pts 2 000 Pts 90 / 80 3600 / 3200 ! The bigger your group, the bigger Director 19% 4% your PGV and the higher your VD percentage. Vice- 15% 50 P Pts 1 500 P Pts 4% 8% Director 90 / 80 2700 / 2400 3% 7% 11% 1 000 Pts 3% 6% 10% 14% Senior 12% 50 Pts 1800 / 1600 3% 6% 9% 13% 17% Leader 90 / 80 3% 6% 9% 12% 16% 20% 600 Pts Leader 9% 50 Pts 1080 / 960 6% 90 / 80 200 Pts Senior 3% 50 Pts 360 / 320 Representa- 90 / 80 tive 50 Pts 100 Pts Representa- 90 / 80 180 / 160 tive Preferred 0% < 50 Pts < 100 Pts 3% 6% 9% 12% 15% 19% 23% Buyer Under the terms of Faberlic’s compensation plan, group Volume Discount is divided between the Representatives according to the difference between the percentages of their VD levels. For example, for a group with sales of more than 3,000 points, 23% VD is calculated for the Director (see table), which will be distributed among their team. How? If there is a Vice-Director (PGV 1,500 points, 15% VD), the Director will receive the 8% difference (23-15); if there is a Leader on the team (PGV 600 points, 9% VD), the Director gets 14% (23-9), and so on. 8 * This table uses the average value of a point, equal to 1,80 € / 1,60 £

Main forms of Representative commission: Group discount is calculated every HOW IS A SPONSOR’S 6% group billing period (the validity period COMISSION CALCULATED PV 100 of one catalogue). ALLOWING FOR THE VD % PGV 200 This is how it’s done: DIFFERENCE? your Personal Group’s sales 6% volume for the period • R epresentatives A and B achieved is multiplied by a PGV of more than 100 points under 3% group the corresponding percentage the compensation plan, and they can PV 100 in the compensation plan, get their VD for this billing period. and the resulting sum of points But Representative A’s VD is larger than PGV 100 is multiplied by the cost of one Representative B’s VD, because A has point in the national currency. a higher VD percent (6%) than B (3%). 3% This is your team’s commission. All compensation plan A’s Volume discount for personal sales calculations are automatically is calculated like this: 100 Pts x € 1 X 6% performed and displayed =€6 in the Representative’s personal (€ 1/ £ 0,72 is the cost of one point when account on faberlic.com calculating VD in EU). • A t the same time there is Representative B, a member of A’s team, who achieved 100 points of PV and PGV and has 3% VD. For 100 points, Sponsor A’s PGV is calculated as the difference from Representative B’s VD percentage, equal to 3% (6%-3%); so, 100 points x € 1 x 3% =€ 3 So, in total, Representative A’s VD for this billing period is € 6 + € 3= € 9 VD is calculated in the same way for any discount level in the compensation plan, from 3% to 23%. 9

2. D IRECTOR LEVEL DIRECTOR BONUSES CALCULATION BONUSES, OR “DIRECTOR number of 23% 0 1 2 3 4 6 9 24 BONUSES” groups in the 1st level When a member of your Required PGV 3000 Pts 2000 Pts 1500 Pts 1000 Pts 1000 Pts 1000 Pts 1000 Pts 1000 Pts personal group reaches 5% 5% 5% 5% 5% 5% 5% leader status, and earn 1st Level 3,000 points or more with a Director Bonus team, the computer system automatically divides their 2nd Level 1% 1% 1% 1% 1% 1% team into a new director Silver Bonus group (23% group) separate from yours. 3rd Level 0,5% 0,5% 0,5% 0,5% 0,5% This group’s volume will not Gold Bonus count as a part of your PGV anymore. 4th Level 0,25% 0,25% 0,25% 0,25% Ruby Bonus 0,125% 0,125% 0,125% 5th Level Diamond Bonus You delegate the job 6th Level 0,0625% 0,0625% responsibilities for this Elite Bonus 0,031% group to the new leader, and start to earn the next 7th Level form of Faberlic Partner Bonus Representative commission: Director For example, bonus. a Gold Director has three first-level director groups. The Gold Director The size of your income earns commission from all three directly depends on the levels of their group: level number of your • 5% from the 1st director level; group. • 1% from the 2nd director level; ! Director bonuses will • 0.5% from the 3rd director level. be calculated if your PV is more than 50 Pts, The bonus will be calculated if and your PG maintains sales the Gold Director’s own PGV is volume according to the more than 1,000 points. required PVG in the compensation plan. 10

PV 100 A Main forms of Representative PGV 3 000 commission: HOW IS THE DIRECTOR BONUS GV 24 000 CALCULATED FOR A GOLD DIRECTOR’S GROUP? Gold Director A achieved B PV 100 PV 100 C PV 65 D PGV of 3,000 points, and so PGV 3 000 she receives the full bonus PGV 4 000 PGV 3 000 for all three levels of her group. 5% 5% 5% For the 1st level, her E F commission is 5%: the total PGV of directors PV 100 PV 100 B, C, and D. So, the bonus is: PGV 3 000 PGV 4 500 10,000 points x €1 x 5% = € 500 1% 1% For the 2nd level, her G commission is 1%: the total PGV of directors PV 100 The total Director Bonuses E and F. So, the bonus PGV 3 500 of Gold Director A for the 2nd level is 7,500 for all levels is points x € 1 x 1% = € 75 0,5% € 500 + € 75 + €17,50 = For the 3rd level, her € 592,50 commission is 0.5%: 3,500 (G’s PGV) x € 1 x 0.5% 11 = €17,50

If your structure’s depth includes a 23% group… A leader with their own 23% group from any depth of your structure can become your 1st level director if there are no other Directors between that leader’s 23% group and you (meaning groups that have achieved the required PGV of 3,000 or more points in the current billing period). 1 EXAMPLE OF 2PV 200 A EXAMPLE COMMISSION OF RANK CALCULATION CALCULATION PGV 3 000 GV 7 800 Representative F’s personal Director Representative C is not a director, because she has a PGV of 500 group sales volume goes up points. This is a 23% group with a Group Volume (GV) of 6,500 to Sponsor A for as long as points, for which Director A gets a 5% Director Bonus of €325 Representative F’s group hasn’t (6,500 points x € 1 x 5%). PV 50 But for Director A’s title, this is one 23% group and one 1st level PGV 300 director. Cachieved 3,000 points worth of sales for the billing period (23% in the compensation plan). 23% Once that happens, PV 100 A Representative F’s group is PGV 3 000 divided into a separate 23% PV 100 D group and the percentage of the GV 9 500 calculated VD “goes up” for all PGV 200 Representatives until the next 23% 23% Director (in this case, A), regardless of their PGV in the Director compensation plan. Director A receives the PV 100 C 5% director bonus for the PGV 500 combined Group volume of PV 100 E GV 6 500 Representatives C, D, E, and F (4,800 points): PGV 300 23% 4,800 points x € 1 x 5% 23% Director A’s total commission from the Group Volume (GV) of all 23% groups (C, D, E, and F) is € 240 PV 50 F PGV 3 000 D PGV 3 000 E PGV 4 000 23% 23% This rule applies when calcu- 23% lating the number of 1st level 23% groups in all cases. Director 12

Under the compensation plan, Main forms of Representative commission: director bonuses are calculated in full (guaranteed bonus) if your personal EXAMPLE GUARANTEED (FULL VOLUME) AND PARTIAL group’s volume (PGV) is 3,000 points DIRECTOR BONUS CALCULATION or more, and partially (partial bonus) if PGV is less than 3,000 points for the GUARANTEED BONUS: but Director C achieved a PGV of billing period. Director A achieved a PGV of 2,500 points, so his 5% Director more than 3,000 points. Under bonus from junior Director E will A PV 100 the compensation plan, this not be calculated in full. C fell PGV 3 000 means that the company will pay short of the guaranteed bonus 23% her the full 5% bonus from calculation by 500 points Director C’s PGV. (3,000-2,500). PV 100 3 000 points х € 1 х 5% = € 150 500 points х € 1 х 5% = € 25 PGV 2 500 PARTIAL BONUS: Director C’s full bonus 23% Director C achieved PGV would have been 150 €, necessary for Director bonus but instead it is C calculation in the compensation € 150-€ 25= € 125 plan (not less than 2,000 points), 5% E PV 100 5% PGV 3 000 23% 13

Additional bonuses 1.“QUALIFICATION QUALIFICATION BONUS 2. “QUICK START” BONUS” A one-time reward from Rank number of 1st level Qualification Bonus Faberlic supports and Faberlic for the growth 23% groups €/£ encourages rapid business of 1st level Directors Director development. in your group. Senior Director 0 1 000 / 800 The company pays Silver Director an additional reward The Qualification bonus 0–1 500 / 400 for the quick growth is calculated once you Gold Director of independent Director confirm your rank 8 times Ruby Direktors 2 2 000 / 1 600 groups in the course of a year Diamond (volume of 3,000 points (doesn’t have to be Director 3 3 000 / 2 400 or more). consecutive). 4 4 000 / 3 200 ! Qualification rank 6 6 000 / 4 800 can be “Unconfirmed” or “Confirmed”. Elite Director 9 9 000 / 7 200 If you have the required National 12 18 000 / 14 400 number of 23% groups in Director 15 22 500 / 18 000 your group for a certain Senior National rank during 1-7 billing Director periods, your rank is “Unconfirmed”. International 18 27 000 / 21 600 Your title will be Director 21 31 500 / 25 200 “Confirmed” after Senior 24 100 000 / 80 000 the calculation of International Qualification Bonus Director (see table). Partner Senior Partner 24 150 000 / 128 000 Executive 24 250 000 / 227 500 Partner National 24 350 000 / 318 500 Partner International 24 750 000 / 682 500 Partner General 30 1 000 000 / 910 000 Partner ! Payment of the “Qualification” and “Quick Start” bonuses is only possible under a signed Contract for Services with Faberlic. *in EU/UK 14

Additional bonuses 3.“STABILITY BONUS” STABILITY BONUS /€ / £/* An additional bonus for the directors Rank 6 months 1 year who maintain the same sales volume for a certain rank. Director 100 / 80 200 / 160 It is calculated twice a year if you keep your rank above your con- Senior Director 150 / 120 300 / 240 firmed rank. Silver Director 200 / 160 400 / 320 This means you do business as a rank no lower than the rank you held when Gold Director 300 / 240 600 / 480 your Qualification Bonus was calcu- lated for 8 calculations in a row, while Ruby Director and 400 / 320 800 / 640 achieving a personal volume of 100 higher points or more. *in EU/UK 15

4. “DEVELOPMENT The Development Bonus is paid to BONUS” a Representative if the following requirements are met: If you are a Diamond Director The Leader keeps their rank, but (or higher) and continue to do no lower than Diamond Director, business in the company, you can until the end of the last billing period earn an additional yearly reward of qualification; called the Development Bonus. The Representative must add eight 1st level 23% groups in the current This is 30% of all Qualification year compared to the previous year. Bonuses in your Diamond Personal Volume (PV) of 100 points Director structure earned in the in each billing period over the course past year. of the year. The bonus is only paid to those Direc- The Development Bonus is a tors who kept their confirmed rank significant additional type of in one of the last two billing periods income for developing groups. (12th and 13th) of the current year. Why? Imagine that you’re a Diamond Director. This year, eight The total of all Qualification Bonuses in your group is: Directors, two Senior Directors, a Director: € 1 000 x 8 = € 8 000 / £ 6400 Silver, a Gold, and a Ruby Director Senior Director: € 1 500 x 2 = € 3 000 / £2 400 all earned Qualification bonuses Silver Director: € 2 000 / £1 600 in your group. Gold Director: € 3 000 / £2 400 Ruby Director: € 4 000/ £ 3 200 ! If a new Diamond Total: € 20 000 / £ 16 000 Director appears in your group, they will YOUR DEVELOPMENT BONUS IS: receive the Development € 20 000 X 30% = € 6 000 Bonus for their own group themselves. The Development Bonus for a new Diamond Director starts being calcu- lated from the period the Diamond Director rank was assigned (Qualifi- 16 cation bonus was paid). The bonus is calculated at the end of the 13th campaign each year.

The Additional bonuses Whole Family! Only with Faberlic FAMILY PLAN A family business gives you 5. “MATERNITY If, at the time of giving birth the possibility to: AND ADOPTION or adopting a child, A Family Plan means that you have been at the rank two people (spouses, • sign a Contract for service BONUS” of Vice Director or higher children, parents) can with either contract holder (personal group volume register under one (first or second) by agreement Our leaders can do 1,500 points or more, ID number and work between family members; everything: build a discount level 15%-23%) for a together. Convenient? business, have or adopt minimum of 8 periods during Yes! • participate in company a child, be financially the last year, you will get this events together. independent and happy bonus! in every part of their lives! ! A Family plan is formed if the family members The company pays Payments will be made were not previously registered in another Maternity and Adoption for each newborn sponsor’s group. (or adopted) child during Bonus to leaders the course of a year from the who manage their time time of birth or adoption. and combine a family and During this time your Personal Volume for each billing period a successful business must be at least 50 points. at the same time. The maternity and adoption You won’t find anything bonus is: like that in any other € 540/ £ 450 a year for the first direct selling company. child; and € 1080/ £900 a year for the second child and so on, if the older children in the family are under age 14. 17

RANK SYSTEM € € 27 000 A REPRESENTATIVE’S INCOME DEPENDS € 22 500 ON THEIR QUALIFICATIONS € 18 000 / £ € 9 000 / £ 7 200 More than € 6 000 / £ 4 800 € 2 700 000 / £ 2 400 000 € 4 000 / £ 3 200 € 3 000 / £ 2 400 is the sum of Qualification Bonuses paid to a € 2 000 / £ 1 600 Representative who has advanced from Director to General Partner! € 500 / £ 400 2 SENIOR € 1000 / £ 800 1 DIRECTOR 23% DIRECTOR CANDIDATE 19% SENIOR VICE-DIRECTOR 15% VICE-DIRECTOR 12% SENIOR LEADER 9% LEADER 6% SENIOR REPRESENTATIVE 3% REPRESENTATIVE 1 € 1000 / £ 800 and other sums with the €/£ signs 18 are Qualification Bonuses and are paid only once

FABERLIC RANK SYSTEM € 1 000 000 / £ 910 000 Numberof Diamond PV PGV 1stlevel23% branches VD size Averageyearlyleader (points) (points) groups within those (%) commission3 € 750 000 / £ 682 500 GENERAL PARTNER 50 1 000 30 30 23% 650 000/ 580 000 € 350 000 / £ 318 500 INTERNATIONAL PARTNER 50 1 000 24 24 23% 530 000/ 470 000 € 250 000 / £ 227 500 NATIONAL PARTNER 50 1 000 24 18 23% 475 000/ 420 000 € 150 000 / £ 128 000 EXECUTIVE PARTNER SENIOR PARTNER 50 1 000 24 12 23% 415 000/ 370 000 € 100 000 / £ 80 000 50 1 000 24 6 23% 350 000/ 310 000 31 500 / £ 25 200 PARTNER 50 1 000 24 – 23% 300 000/ 265 000 / £ 21 600 SENIOR INTERNATIONAL DIRECTOR 50 1 000 21 – 23% 265 000/ 235 000 INTERNATIONAL DIRECTOR 50 1 000 18 – 23% 230 000/ 205 000 50 1 000 15 – 23% 140 000/ 125 000 / £ 18 000 SENIOR NATIONAL DIRECTOR 14 400 NATIONAL DIRECTOR 50 1 000 12 – 23% 130 000/ 115 000 50 1 000 9 – 23% 107 000/ 95 000 ELITE DIRECTOR 50 1 000 6 – 23% 72 000/ 64 000 50 1 000 4 – 23% 50 000/ 45 000 DIAMOND DIRECTOR 50 1 000 3 – 23% 32 500/ 29 000 RUBY DIRECTOR GOLD DIRECTOR SILVER DIRECTOR 50 1 500 2 – 23% 25 000/ 22 000 0/1 – 23% 18 000/ 16 000 DIRECTOR 50 5 000/ 0 – 23% 12 000/ 10 500 2 000 50 3 000 50 3 000 – – 23% 6 000/ 5 300 50 2 000 – – 19% 5 000/ 4 500 50 1 500 – – 15% 3 300/ 2 900 50 1 000 – – 12% 2 000/ 1 800 50 600 – – 9% 1 000/ 900 50 200 – – 6% 380/ 340 50 100 – – 3% 100/90 2 If the Representative reached the Director rank, 3 A verage yearly leader commission (€ / £) without 19 the Qualification Bonus payment is € 500 / £ 400 Qualification Bonus

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