Terminologies in Oriflame

(1) ACTIVE CONSULTANTS:A consultant having placed a commissionable order in the current period

(2) ACTIVITY: Share in % of sales force who has placed commisionable order in the current catalogue period

(3) AVERAGE ORDER: Average Net Sales of all orders in the current catalogue period

(4) BONUS POINT: Are paid so performing leaders who sponsor more and more break away 21% groups continue to earn from those group as they grow. In order to qualify for any Oriflame bonuses,you must maintain a minimum personal purchase volume of 200bp in that catalogue period.

(5) BUSINESS VOLUME: Equals sales of cosmetic products at the consultant price, less VAT and other taxes, and may change over time due to price adjustments. Your performance discount (PD) % Is calculated on this amount

(6) CAF: Consultant Application form: Form to apply and become a consultant

(7) COF: Consultant order form: used for consultants to place orders.

(8) You are recognized as a consultant as soon as you have paid for your starters kit and paid your first BP order.

(9) DIRECTOR: This expression contains all levels from director (21%) and up to the highest level

(10) IMMEDIATE PROFIT: As a consultant you earn 30% immediate profit on your sales to customers. This is the difference that you keep between the price you sell for (the catalogue price) and what you pay online

(11) INACTIVE CONSULTANT: A consultant who has not placed a commissionable order within the current catalogue period.

A consultant can be inactive:

i) (placed last order in the period prior to the current, inactive

ii) (placed order last two periods ago,inactive

iii) (placed last order three periods ago and who will be removed from sales force at close of period unless order is placed.

(12) LEADER : This expression contains all levels from manager (12%) up to the highest Director level

(13) MANAGER: This expression contains levels from Manager (12%) up to senior manager level

(14) MINIMUM GUARANTEE: This is a way of ensuring fair rewards for your efforts. It helps avoid situations where low performer (one who cannot maintain 7,500 personal group BP ) profits from your work at deeper levels

(15) ORDER PER ACTIVE: Average Number of orders placed per Active consultant in the current period

(16) PERFORMANCE DISCOUNT : This is the commission (3-21%) you earn on your own sales and on the sales of your consultants (downlines)

(17 )PERSONAL GROUP : Refers to all consultants sponsored directly and indirectly by a consultant, but shall not include the directly sponsored 21% consultant or their downline’s.

(18) REACTIVES: Consultants who have been considered `sleeping’ but then `reactive’ by placing a commissionable order.

(19) RECRUITS : New consultants that has placed a commisoinable order

(20) REGISTERED CONSULTANTS: A consultant receives a 12 month membership from date of registration after which a renewal fee is applied.During the 12 months he/she is a registered consultant regardless of weather an order is placed or not.

(21) REMOVALS: A consultant who has not placed a commisionable order at the close of his/her third catalogue period is considered a removal and removed from the sales force. The consultant is still registered and by placing a commissionable order within the membership period is considered a reactive and again counted in sales force

(22) RENEWAL FEE: After each 12 months period a renewal fee is applied authomatically to the first invoice in the 13th month.

(23) SALES FORCE: All consultants (and Leaders) having placed at least one commissionable order within the last three catalogue period.

(24) SALES PER ACTIVE: Orders per Active x average order in net sales

(25) SLEEPING CONSULTANTS: A consultant who has been inactive between 4th catalogue and end of 12 month membership validity.

(26) STARTERS: New consultant who has signed consultant Application form but not necessarily placed a commisionable order.

(27) TOTAL SALES: Total sales in period.

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