Younique international markets november 2014

INTERNATIONAL MARKETS OVERVIEW

2014Younique Presenter guidelines for operating your business in a global marketplace and conducting

cross-border sales transactions.

Younique International Markets

page 2

Table of Contents

Overview

Current Markets

Not for Resale (NFR) Policy

Royalties

Shipping

Product Pricing

3

4

5

7

11

12


page 3

Overview

Among its open markets, Younique is a “global-seamless” direct sales company.

Younique Presenters

may transact cross-

border sponsorships

and e-commerce

orders.

Your customers may

purchase product in

their local currency,

and ship to their local

address, regardless of

your own home country.

Cross-border

transactions are

conducted in

essentially the same

manner as U.S.

domestic transactions.

The three basics of Younique’s global market strategy.

1. 2. 3.


page 4

Younique presently operates in five markets:

NEW ZEALANDAUSTRALIA

CANADAUSA

Current Markets

UNITED KINGDOM


page 5

Based on local regulations, products sold into Canada, Australia, New Zealand, and the UK are currently sold on a Not for Resale (NFR) basis.

Not for Resale (NFR) Policy

Products are for personal

consumption only.

As a Presenter, you are allowed to sell Younique products in these countries

by way of your own personal e-commerce website.

Product may not be re-sold. This

includes selling at trade shows.

Rule #1 Rule #2

So how do I sell products?

Based on market performance, products will eventually be registered for re-

sale in these markets. Once that happens, products will be able to be re-sold.

Younique will begin the re-sale registration process once the monthly revenue

for a respective market reaches $1 million (USD).

Will it always be this way?


page 6

Order Amount Maximums in NFR Markets

The way NFR rules are enforced vary from country to country. In order for Younique to be in compliance with local NFR-related rules and import regulations, the following maximum order amounts have been set:

Younique allows orders up to the AUS, ND, and GBP maximums to be purchased each day.

Younique’s freight forwarder ships multiple times per week (but not necessarily daily) based on market volume.

If you place multiple large orders within a 72-hour period, one or more shipments may be delayed in order to remain in compliance with NFR regulations.

Australian, New Zealand, and UK maximums are “per importation”

COUNTRY MAXIMUM ORDER AMOUNT

Canada $800 (CAD) per importation

Australia $950 (AUD) per importation

New Zealand $280 (NZD) per importation

United Kingdom £350 (GBP) per importation


page 7

Younique provides an online resource called “Retail Royalty Rules” to help you understand your local and cross-border retail royalties.

Royalties

Royalty Rules vary based on whether

the order originated from your

home market, or was shipped to a

destination outside of your home

market.

To help you further understand

international royalty calculations, you

may log in to your website and visit

the following link. Your order history

page will also specify orders placed

from outside of your market, and

display a link that takes you to this

page.

https://www.youniqueproducts.com/account/royaltyrules

Royalties are paid to you in your local currency.

Party Points and Royalty Points are the same for everyone, in every country.

Point values for all products are listed on the Master Price & Points List

towards the end of this document.

Getting Paid Your Retail Royalties

Party Points & Royalty Points


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“Home market Retail Royalties” refers to Royalties earned on sales within your home market.

Home Market Retail Royalties (by Country)

The following table demonstrates how these Royalties are calculated in each geographic market (using the sale of one single Moodstruck 3D Fiber Lashes as an example); the example Royalties are calculated for White-status (20%) and for Yellow-status and above.

UK Presenters, Please Note:The UK retail price for every Younique product includes a 20% international fee, which is used to pay our shipping partner, who in turn pays VAT. As such, UK Presenters are earn their Retail Royalties percentage from the Net value of every product.

*

Presenter’s Market

Retail Price Royalty Points White Royalty 20% Yellow & Up Royalty 25% Currency

USA $29 29 $5.80 $7.25 USD

Canada $35 29 $7.00 $8.75 CAD

Australia $38 29 $7.60 $9.50 AUD

New Zealand $40 29 $8.00 $10.00 NZD

United Kingdom

£23 * (£19.17 Net)

29 £3.84 £4.80 GBP

When Younique Cash is applied to any purchase, points are earned (and thus Royalty paid) only for the remainder of the sale paid for in legal tender (i.e., not Younique Cash).

A Note About Using Younique Cash


page 9

“Cross-border Retail Royalties” refers to Royalties earned from a shopper from outside of your home market.

Cross-border Retail Royalties

The following table demonstrates how Royalties are calculated for cross-border sales, based on Presenter’s home market. The table uses a cross-border sale of one single Moodstruck 3D Fiber Lashes as an example.

Presenter’s Home Market

Shopper’s Home Market

Retail Price for Shopper*

Royalty Points

Peg Rate (by Presenter’s Home Mkt)

White Royalty 20%

Yellow & Up Royalty 25%

USA United Kingdom

£23 GBP 29 1.00 $5.80 USD $7.25 USD

Canada New Zealand

$40 NZD 29 1.10 $6.38 CDN $7.98 CDN

Australia Canada $35 CDN 29 1.15 $6.67 AUD $8.34 AUD

New Zealand

Australia $38 AUD 29 1.20 $6.96 NZD $8.70 NZD

United Kingdom

USA $29 USD 29 .65 £3.77 GBP £4.71 GBP

When Younique Cash is applied to any purchase, points are earned (and thus

Royalty paid) only for the remainder of the sale paid for in legal tender (i.e.,

not Younique Cash).

A Note About Using Younique Cash

“Retail Price for Shopper” refers to a person from another country purchasing a product from you in their own currency. As shown in the above examples, it doesn’t matter what the shopper paid for the product. When someone from outside of your home market purchases something from you, your Retail Royalties are calculated against Royalty Points, not the Retail Price that the shopper paid. For example: a Canada shopper buying a set of 3D Fiber Lashes from a Presenter in Australia would pay $35 CDN. The Australian Presenter’s Retail Royalties from that purchase would then be the product of Royalty Points and her market’s peg rate, multiplied by her respective Royalty percentage. E.g., 29 x 1.15 x .20 for a White Status Presenter, and 29 x 1.15 x .25 for Yellow and up.

Retail Royalties from “cross-border sales” are calculated against Royalty Points, not the Retail Price:*


page 10

Month-end Royalties are calculated based on the Royalty Points of the orders. Such point-values are universal across all markets.

Month-end Royalties

This universal Royalty point value

approach is the primary factor that

allows cross-border sponsoring

within a Presenter’s downline, while

maintaining the ability to seamlessly

calculate downline Royalties such

as Circle, First Generation, Second

Generation, and Third Generation.

For example, the formula for month-end Royalties

derived from Circle sales is:

Circle Wholesale Points x Royalty % (e.g. 5% for Green status) x Peg Rate = Royalty Amount

After month-end Royalties are

calculated using the Royalty Point

values, the final payments are

adjusted to the Presenter’s local

currency using the market-specific

peg rate found on this page.

The Benefit of Universal Points

Presenter’s Market Peg Rate

USA 1.00

Canada 1.10

Australia 1.15

New Zealand 1.00

United Kingdom .6


page 11

The chart on this page displays shipping charges. Shipping totals are based on the order subtotals only. Taxes and shipping fees do not apply towards NFR shipping maximums.

Shipping

Business Supplies Younique Cash (Y-Cash)

Half-price Items(The entire amount of the item is non-commissionable and does not apply)

1. 2. 3.

USA DomesticOrder Amount (USD) Shipping Charge (USD)

Less than $100 $5.50

$100 or more FREE

CanadaOrder Amount (CAD) Shipping Charge (CAD)

Less than $100 $10.00

$100 - $199 $7.50

$200 - $850 FREE

Australia (effective July 1)Order Amount (AUD) Shipping Charge (AUD)

Less than $100 $10.00

$100 - $225 $15.00

$226 - $950 FREE

New ZealandOrder Amount (NZD) Shipping Charge (NZD)

Less than $100 $10.00

$100 - $225 $15.00

$226 - $280 FREE

United KingdomOrder Amount (GBP) Shipping Charge (GBP)

Less than £65 £6.95

£66 - £165 £10.00

£166 - £350 FREE

In addition, there are three types of items which do not apply to the subtotal

used to calculate shipping fees.

Younique Shipping Tables


page 12

Master Price & Points ListIndividual Items

Item Name USA Canada Australia New Zealand UK* Party

PointsRoyalty Points

Moodstruck Minerals Pigment Powder $12.50 $15.00 $16.00 $17.00 £10.00(£8.33) 125 12.5

Moodstruck Minerals Concealer $29.00 $35.00 $38.00 $40.00 £23.00(£19.17) 290 29

Lucrative Lip Gloss $15.00 $18.00 $20.00 $21.00 £12.00(£10.00) 150 15

BB Flawless Complexion Enhancer $39.00 $47.00 $49.99 $55.00 £30.00(£25.00) 390 39

Refreshed Rose Water $29.00 $35.00 $38.00 $40.00 £23.00(£19.17) 290 29

Uplift Eye Serum $65.00 $78.00 $85.00 $90.00 £50.00(£41.67) 650 65

Precision Pencil Eye Liner $15.00 $18.00 $20.00 $21.00 £12.00(£10.00) 150 15

Precision Pencil Lip Liner $15.00 $18.00 $20.00 $21.00 £12.00(£10.00) 150 15

Precision Pencil Sharpener $7.50 $9.00 $9.75 $10.50 £4.95(£4.12) 75 7.5

Lash Comb/Brow Brush $20.00 $24.00 $26.00 $28.00 £16.00(£13.33) 200 20

Illuminate Clear Daily Cleanser (formerly Awake) $39.00 $47.00 $49.99 $55.00 £30.00

(£25.00) 390 39

Illuminate Clean Daily Cleanser $39.00 $47.00 $49.99 $55.00 £30.00(£25.00) 390 39

Touch Pressed Powder Foundation $32.00 $39.00 $42.00 $45.00 £25.00(£20.83) 320 32

Touch Cream Foundation $32.00 $39.00 $42.00 $45.00 £25.00(£20.83) 320 32

Divine Daily Moisturizer $39.00 $47.00 $49.99 $55.00 £30.00(£25.00) 390 39

Glorious Face & Eye Primer $39.00 $47.00 $49.99 $55.00 £30.00(£25.00) 390 39

Moodstruck Minerals Blusher $29.00 $35.00 $38.00 $40.00 £23.00(£19.17) 290 29

Moodstruck 3D Fiber Lashes $29.00 $35.00 $38.00 $40.00 £23.00(£19.17) 290 29

Foundation Brush $20.00 $24.00 $26.00 $28.00 £17.00(£13.33) 200 20

Concealer Brush $12.00 $14.00 $15.00 $17.00 £10.00(£8.33) 120 12

Blusher Brush $25.00 $30.00 $33.00 $35.00 £21.00(£16.17) 250 25

Powder Puff Brush $32.00 $38.00 $41.00 $45.00 £26.00(£20.83) 320 32

Deluxe Eye Brush $17.00 $21.00 $23.00 $24.00 £14.00(£10.83) 170 17

Liner/Shader Brush $18.00 $22.00 $23.00 $25.00 £15.00(£11.67) 180 18

Crease Brush $15.00 $18.00 $20.00 $21.00 £13.00(£10.00) 150 15

* UK Prices in parenthesis are the Net value that Retail Royalties are paid on


page 13

Master Price & Points ListSets

Collections*



Moodstruck Mineral Pigments Set of 4 $35.00 $42.00 $45.00 $49.00 £27.00

(£22.50) 350 35

Lucrative Lip Gloss Set of 3 $40.00 $48.00 $52.00 $56.00 £31.00(£25.83) 400 40

Lucrative Lip Gloss Set of 10 $119.00 $140.00 $150.00 $165.00 £93.00(£77.50) 1190 119

Eye Brush Set $45.00 $54.00 $58.00 $62.00 £37.00(£29.17) 450 45

Face Brush Set $80.00 $97.00 $104.00 $112.00 £65.00(£52.50) 800 80

Complete Brush Set $110.00 $132.00 $143.00 $150.00 £89.00(£71.67) 1100 110

Touch Foundation Set of 2 $60.00 $72.00 $78.00 $83.00 £47.00(£39.17) 600 60

Precision Pencils Set of 3 $40.00 $48.00 $52.00 $55.00 £31.00(£25.83) 400 40



New Presenter Kit

Item Name USA Canada Australia New Zealand UK Party


New Presenter Kit $99.00 $119.00 $129.00 $139.00 £69.00 0 0



Windows to the Soul $175.00 $210.00 $229.00 $244.00 £136.00(£113.33) 1750 175

Love the Skin You’re In $185.00 $220.00 $239.00 $259.00 £145.00(£120.83) 1850 185

All New $240.00 $289.00 $310.00 $333.00 £188.00(TBA) 2400 240

Twice as Nice $130.00 $155.00 $169.00 $180.00 £101.00(£84.17) 1300 130

Singular Sensation $99.00 $119.00 $129.00 $139.00 £77.00(£64.17) 990 99

Gimme Everything $290.00 $350.00 $377.00 $400.00 £227.00(£189.17) 2900 290




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You can use this worksheet to calculate what your month-end Royalty payments will be every month.

Royalties Worksheet

Circle Wholesale

Points

Circle Royalty Percentage

Market Peg Rate

Royalty Payment Amount

X X =

Circle Wholesale

Points


Market Peg Rate


X X =

Circle Wholesale

Points


Market Peg Rate


X X =

Circle Wholesale

Points


Market Peg Rate


X X =

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Younique international markets november 2014