Consultant Policies & Procedures Last Modified: January 13, 2014 1

Transcription

Consultant Policies & Procedures Last Modified: January 13, 2014 1
Consultant Policies & Procedures
Last Modified: January 13, 2014
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Jamberry Nails, LLC
Consultant Policies & Procedures
Table of Contents
INTRODUCTION ............................................................................................................................................. 7
PRACTICING THE JAMBERRY NAILS VALUES ................................................................................................. 7
CONSULTANT STATUS AND QUALIFICATIONS .............................................................................................. 7
Basic Qualifications ................................................................................................................................... 7
Continued Permanent Residence ............................................................................................................. 8
Compensation Plan ................................................................................................................................... 8
Paid-As Title .............................................................................................................................................. 8
Consultant Status ...................................................................................................................................... 8
Career Title................................................................................................................................................ 9
Online Agreement ..................................................................................................................................... 9
Consultant ID............................................................................................................................................. 9
Independent Contractor Status ................................................................................................................ 9
One Name Per Agreement ...................................................................................................................... 11
Business Entities...................................................................................................................................... 11
Exclusive Territories/Solicitation of Overseas Business.......................................................................... 11
EXCLUSIVE PROMOTION OF PRODUCTS ..................................................................................................... 11
ETHICAL CONDUCT...................................................................................................................................... 12
LEGAL COMPLIANCE.................................................................................................................................... 12
LICENSES...................................................................................................................................................... 12
CONFIDENTIALITY ....................................................................................................................................... 12
NON-SOLICITATION ..................................................................................................................................... 12
TRANSFERABILITY........................................................................................................................................ 13
NEW CONSULTANT DEVELOPMENT............................................................................................................ 13
Income Claims ......................................................................................................................................... 13
Remote Sponsors .................................................................................................................................... 13
Cross Sponsoring ..................................................................................................................................... 13
Sponsor Reassignment ............................................................................................................................ 14
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Release of Team ...................................................................................................................................... 14
Improper Initial Assignment ................................................................................................................... 14
Inadequate Support ................................................................................................................................ 14
Deceptive Sponsorship ............................................................................................................................ 14
Disruptive Relationships ......................................................................................................................... 15
Leadership Support Practices ................................................................................................................. 15
No Product Purchase Required ............................................................................................................... 16
ANNUAL RENEWAL OF CONSULTANT AGREEMENT ................................................................................ 16
Personal Website Annual/Quarterly/Monthly Renewal........................................................................ 16
TERMINATION OF Consultant Agreement ................................................................................................ 17
Resignation .............................................................................................................................................. 17
Cancellation ............................................................................................................................................ 17
Home Office Termination ....................................................................................................................... 17
Effect of Termination .............................................................................................................................. 18
Events Upon Termination Of This Agreement ........................................................................................ 18
Buy-Back Policy ....................................................................................................................................... 19
Compression ........................................................................................................................................... 20
Reactivation Policy .................................................................................................................................. 21
TEAM MANAGER LEVEL RESPONSIBILITIES ................................................................................................. 21
Commissions Policy And Payout Timelines ............................................................................................. 21
Account Holds ......................................................................................................................................... 23
Suspension of Contractual Obligations ................................................................................................... 23
CORPORATE MARKETING, LEADS AND ASSIGNMENTS............................................................................... 23
Our Philosophy........................................................................................................................................ 23
TAXES .......................................................................................................................................................... 25
Income Tax .............................................................................................................................................. 25
Frequently Asked Questions About U.S. Income Tax ............................................................................. 25
Sales Tax .................................................................................................................................................. 26
State Specific Sales Tax Notices .............................................................................................................. 26
Exempt Sales ........................................................................................................................................... 27
Insurance..................................................................................................................................................... 27
ADVERTISING, PRESS, TRADEMARK AND PUBLIC IMAGE PROTECTION ..................................................... 27
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Repackaging Or Relabeling ..................................................................................................................... 27
Training Materials ................................................................................................................................... 27
Liability .................................................................................................................................................... 27
Trademarks ............................................................................................................................................. 28
Advertising and Press.............................................................................................................................. 28
Press Contacts and Leads ........................................................................................................................ 28
Media Promotions .................................................................................................................................. 28
Phone Listing Policy ................................................................................................................................ 29
Checking/Charge Accounts ..................................................................................................................... 29
ONLINE COMPLIANCE................................................................................................................................ 30
Marketing And Naming of Personal Websites ........................................................................................ 30
Restricted Use of Jamberry Trademarked Name .................................................................................... 30
Use of Jamberry in URLS ......................................................................................................................... 30
Use of Jamberry in E-Mail Addresses or Social Networking Names ....................................................... 30
Use of Jamberry Confidential Information – Names, Addresses, Emails................................................ 31
Social Networking Pages on Facebook and More................................................................................... 31
Solicitation of Business on Facebook, Consultant Facebook Group, Twitter or Other Sites .................. 31
Sales Through Auction Sites or Other Internet Sites .............................................................................. 31
Marketing Through Personal Blogs and Other Sites ............................................................................... 31
Online Affiliates....................................................................................................................................... 32
PURCHASE AND SALE OF PRODUCTS .......................................................................................................... 32
Blanket Discounts.................................................................................................................................... 32
Sales Presentations ................................................................................................................................. 33
Bonus Buying........................................................................................................................................... 33
Closing Parties and Customer Delivery ................................................................................................... 34
Third-Party Consumers ........................................................................................................................... 34
Customer Cancellation ............................................................................................................................ 35
Customer Refunds and Returns .............................................................................................................. 35
Customer Order Forms ........................................................................................................................... 35
Territory Restrictions .............................................................................................................................. 35
International Sales .................................................................................................................................. 35
Out of Stock Products ............................................................................................................................. 35
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Retail Outlets .......................................................................................................................................... 36
Non-Retail Businesses ............................................................................................................................. 36
Mail Order ............................................................................................................................................... 36
Consultant-To-Consultant Sales Policy ................................................................................................... 36
Rental Space............................................................................................................................................ 36
International Distribution ....................................................................................................................... 36
Marketing Materials Credit ..................................................................................................................... 36
SHIPPING ..................................................................................................................................................... 37
Retail Shipping ........................................................................................................................................ 37
Promotional and Marketing Materials Shipping..................................................................................... 37
Free Catalog Shipping ............................................................................................................................. 37
EVENTS ....................................................................................................................................................... 38
Best Practices – Opportunity Events....................................................................................................... 38
Best Practices – Training Events ............................................................................................................. 38
Temporary Sales Events .......................................................................................................................... 38
Assistance For Hearing Impaired At Home Office Events ....................................................................... 40
GENERAL PROVISIONS .............................................................................................................................. 40
Website Downtime ..................................................................................................................................... 40
Contractual Remedies ............................................................................................................................. 40
Acts of Household Members .................................................................................................................. 41
Grievances and Complaints .................................................................................................................... 41
Reporting Policy Violations ..................................................................................................................... 41
Amendments .......................................................................................................................................... 41
Indemnification/Offset ........................................................................................................................... 41
Telephone Solicitation ............................................................................................................................ 41
Cumulative Remedies/Waiver ................................................................................................................ 42
Injunctive Relief ...................................................................................................................................... 42
Waiver..................................................................................................................................................... 43
Jurisdiction .............................................................................................................................................. 43
Partial Validity ......................................................................................................................................... 43
Limitation Of Damages............................................................................................................................ 43
Privacy Policy .......................................................................................................................................... 43
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Entire Agreement .................................................................................................................................... 44
COMPANY ADDRESS AND CONTACT INFORMATION.................................................................................. 44
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INTRODUCTION
We are very excited that you are considering becoming a consultant of Jamberry (“Consultant” or
“Jamberry Consultant”). Before you take the final step to joining, please carefully review this entire
document. If you agree to comply with the policies and procedures in this agreement (the “Policies and
Procedures”), please indicate your agreement by signing the Consultant Agreement that accompanies
this document. If you have any questions about any of the terms in this document, please contact
Jamberry support at (801)796-2205.
PRACTICING THE JAMBERRY NAILS VALUES
At all times, Consultants must:
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Conduct themselves with the highest level of ethics, integrity and professionalism. This includes
maintaining professionalism and courtesy with customers, other Consultants, and members of the
Home Office team.
Act in good faith at all times.
Not discriminate against any individual because of age, race, creed, color or any other legally protected
status. Discrimination will not be tolerated.
Provide helpful customer service with the intent of developing long-term customer relationships.
Refrain from making disparaging comments or gossiping about others.
Abide by all the guidelines listed in Consultant Workstation to ensure it remains a positive and
supportive environment.
Jamberry (“we,” “us,” “our,” “Home Office,” or “Company”) reserves the right to terminate any
Consultant Agreement who does not comply with the Policies & Procedures or fails to operate within
the spirit of the Company’s values.
CONSULTANT STATUS AND QUALIFICATIONS
BASIC QUALIFICATIONS
You become a Jamberry Consultant when your completed Agreement has been received and accepted
by the Company.
To become a Jamberry Consultant you must be 18 years or older, be a United States citizen or
permanent resident, possess a valid Social Security Number or Green Card, maintain your personal
website, and be sponsored by a current Jamberry Consultant. If you do not have a Sponsor, you will be
assigned one by the Company in accordance with our policy on assignments. In order to sign up with
Jamberry, you must visit our website (http://www.jamberrynails.net/join/) and submit the online form,
which includes the electronic acceptance of the Consultant Agreement and your payment of $99 for the
purchase of a Starter Kit which is sold to you at the Company’s cost. The Starter Kit will help you become
familiar with Jamberry products, services, sales techniques, sales aids, and other matters, and will help
you facilitate sales. The Starter Kit includes the following: 1 Sheet of Nail Wraps plus credit for three
additional nail wraps of your choice, Jamberry Mini Heater, 6 Nail Files, 3 Buffer Blocks, Cuticle Pusher, 3
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Pairs of Salon Scissors, 50 Orange Sticks, Nail Care Cuticle Oil, 2, 25-Packs of Catalogs, 50 Nail Sample
Cards, Alcohol Wipes, Start-Up Guide, Brochures, Order Forms, Postcard Invitations, and pre-paid access
to your Personal Website and back office workstation during the month you join and the three complete
calendar months following your sign-up month. As soon as the Company approves the Consultant
Agreement and has received your payment, you are ready to get started!
CONTINUED PERMANENT RESIDENCE
Currently, Jamberry operates only in the United States, excluding United States territories. In order to
retain your Consultant Agreement with the Company, you must remain a permanent resident in the
country you signed up in. The Consultant Agreement does not transfer to another country in which the
Company operates or may operate in the future. To conduct business in another country, you must
resign in your original country and sign the relevant agreement for the new country. Additionally,
Consultants may not solicit international or cross-border business. In the future, the Company may
allow International Sponsorship between the United States and another country. Please note this
pertains to Sponsors only. No cross-border/international sales are allowed at this time.
COMPENSATION PLAN
Consultant commissions, bonuses, rewards, and titles are based upon the Jamberry Compensation Plan
which is incorporated into this Agreement by reference. Please review the Compensation Plan for
complete details, a copy of which can be reviewed here:
http://www.jamberrynails.net/uploads/cms/docs/Compensation%20Plan.pdf.
PAID-AS TITLE
Your Paid-As Title and Career Title are determined by your monthly sales activity and primarily used for
commission calculations and coaching information by the Company and your upline. Your Paid-As Title
is determined according to the Compensation Plan and is based on a number of monthly criteria,
including Personal Retail Volume (“PRV”), Team Retail Volume (“TRV”), Active Legs, and the Paid-As
Titles of certain members of your team (as such terms are defined in the Compensation Plan).
CONSULTANT STATUS
Consultant status is used to determine a Consultant’s eligibility to receive bonuses, commissions, and
rank advancements. Definitions of each status level are:
ACTIVE
A Consultant must maintain a PRV of 200 each calendar month to be considered Active.
If a Consultant has not achieved active status during a calendar month, they receive no
commissions from their downline, fast-start bonuses, Matching Advancement Bonuses,
or Generational Overrides. Active status is always measured by a calendar month.
However, they will receive personal retail commissions from their personal and
customer purchases even if they do not achieve Active status during a calendar month.
IN PROGRESS
At the beginning of each calendar month each Consultant begins with the status of In
Progress until she achieves the 200 PRV. If at the end of a calendar month you remain In
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Progress, then you still receive personal retail commissions on your and your customer’s
retail purchases, but you are not eligible to earn any other bonuses or overrides on
downline sales during any period where you fail to achieve Active status.
CANCELLATION Consultants must have a minimum of 600 PRV during any rolling 12-month period in
order to remain a Consultant and keep their downline. If they fail to meet this
requirement in any 12-month period, they will be canceled which causes them to be
removed from the company downline organization. Their downline and customers will
be compressed to the next upline Consultant who is in good standing.
RESIGNED
Any Consultant who officially resigns from the Company, by providing written notice to
the Company.
CAREER TITLE
A Consultant’s Career Title is their recognition title or the highest title they have achieved. A
Consultant’s Career Title does not change unless they are advance (see Demotion Policy in
Compensation Plan for other exceptions), unlike a Paid-as Title, which may vary from month to month.
Each Consultant is paid at the title for which they qualify during the period (“Paid-as-title”).
ONLINE AGREEMENT
Consultants must read the online Consultant Agreement in its entirety before submitting the on-line
Consultant Agreement.
CONSULTANT ID
All Consultants must provide a valid taxpayer identification number (such as a valid Social Security
Number). The Company will use this number for tax reporting purposes. You will be automatically
assigned a non-changeable Consultant ID.
INDEPENDENT CONTRACTOR STATUS
You understand that you are not an employee of Jamberry and shall not be entitled to receive any
benefits from Jamberry whatsoever. Jamberry shall not be required to make contributions for
employment insurance, Workers’ Compensation and other similar levies in respect of payments to be
made. You shall be fully responsible for paying all applicable federal and state withholding taxes,
source deductions, taxes, employment insurance premiums, Workers’ Compensation contributions
and other levies, premiums, license requirement and fees related to your earnings and activities as a
Consultant.
You agree that as a Consultant you are an independent contractor, and not an employee, agent,
partner, legal representative or franchisee of Jamberry. You shall be solely responsible for paying all
expenses incurred by yourself, including but not limited to travel, food, lodging, secretarial, office,
long-distance telephone and other expenses. You will have and maintain control of the manner and
means of your performance. You will have no power or authority to incur any debt, obligation or
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liability on Jamberry Nail’s behalf.
For further certainty, the specifics of your legal relationship with Jamberry are as follows:
Control - Subject to the terms of the Consultant Agreement, and other applicable laws, Consultants shall
have complete control and discretion over the operation of their independent businesses including,
without limiting the nature of the foregoing, how much or how little time they may devote to their
businesses, and shall be entitled to establish their own business goals, business hours, and business
methods, policies and procedures.
Ownership of Tools – The Consultant shall be responsible for the ownership and acquisition of any
business tools, equipment, assets, and expenses, and all business goods, services and intangibles that
the Consultant, in her discretion, believes necessary for the operation of its independent business
including, without limiting the generality of the foregoing, the location and appointment of his or her
business office, business cards, letterhead, computer equipment, motor vehicle(s), and other tools and
equipment (e.g., phone, office supplies etc.) which she alone deems necessary for operation of her
business, all of which shall established and/or acquired by the Consultant at her own expense. The
Consultant shall also maintain such insurance, such as liability, fire and theft insurance, during the term
of this Consultant Agreement for the benefit of her business, in amounts as she deems appropriate, and
at her own expense.
Chance of Profit/Risk of Loss – Jamberry and the Consultant agree that all expenses incurred by the
Consultant in the operation of her business shall be incurred on her own account, and be her own
responsibility. Jamberry and the Consultant also agree that the terms of the Consultant’s compensation
is entirely set out in the Jamberry Compensation Plan, and accordingly, the chance of profit and the risk
of loss inherent in the Compensation Plan, and inherent in the operation of the Consultant’s
independent business, rests entirely with the Consultant, with no “expense reimbursement” or
“minimum compensation” being offered or guaranteed by Jamberry whatsoever.
No Power to Bind - While a Consultant shall be entitled to inform others that she is an Consultant
engaged by Jamberry in an independent status, she shall at no time represent himself/herself to be an
employee of Jamberry, and shall clarify with others, where necessary, her status as an independent
contractor of Jamberry. The Consultant has no authority (expressed or implied), to bind Jamberry to any
obligation, and shall not be construed as purchasers of a franchise or a business opportunity.
No Creation of Employment, Agency, Partnership, Franchise or Joint Venture Relationship - The legal
relationship between Jamberry and its Consultants is not intended to create, and does not create, an
employer/employee relationship, agency, partnership, franchise or joint venture relationship between
Jamberry and the Consultant.
Treatment as Independent Contractor for Tax and Other Purposes - Accordingly, the Consultant will
not be treated as an employee of Jamberry Nails for state or federal tax purposes (including, but not
limited to: federal income tax withholding or reporting requirements, and other like taxes, and state
employment standards rules and workers’ compensation legislation purposes).
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ONE NAME PER AGREEMENT
Jamberry recognizes one name per Consultant Agreement. A Consultant may utilize a support person
in her business. However, the individual who holds Parties and has regular customer contact must be
the individual whose name is on the Consultant Agreement. Further, Jamberry only permits one
Consultant per household. A husband and wife, mother and daughter, or any other combination of
individuals in a household may work together under a single Consultant Agreement, but only one
Consultant Agreement per household is permitted. If this applies to you, you should determine in
advance will be listed as the Consultant for purposes of commission payments and communication
with the home office who is only authorized to communicate with the individual listed on the
Consultant Agreement about the specific account.
BUSINESS ENTITIES
The Company will accept Agreements from partnerships, LLCs, or corporations so long as such
business entities are legally organized and recognized by one of the fifty United States.
EXCLUSIVE TERRITORIES/SOLICITATION OF OVERSEAS BUSINESS
No franchise is granted and there are no exclusive territories for sales or sponsoring purposes. You
may only arrange for sale within your own country of residence. You may not solicit business from
other countries and/or neighboring territories (e.g. Puerto Rico, Guam), unless you have been
approved by the Home Office.
EXCLUSIVE PROMOTION OF PRODUCTS
You are an independent contractor, and the Company imposes no restrictions on any Consultant’s
participation or sales activity in other businesses. However, promotion of other competitive business
ventures is prohibited at Jamberry Home Parties or in communication with the Company’s customers
and any competing direct-sales business (e.g. companies that offer finger or toe nail products as one
of their offerings) is not allowed. Additionally, should you advance to the Executive Career Title or
above, active or public participation in any other direct-selling venture is no longer permitted. Once
you achieve the Executive Career Title for the first time, you will have three months to wind down your
active participation in other direct selling ventures. After the three month transition period, Executives
(or higher) will no longer be permitted to actively recruit for or market any other direct sales company.
This restriction does not prohibit you from belonging to or purchasing products from such direct sales
company. Violation of this policy will result in ineligibility to receive generational overrides,
advancement, and matching bonuses for a minimum of three months. An Executive will still be eligible
to receive level overrides, personal sales bonuses, fast start bonuses, and marketing materials credit.
This policy is to ensure you have the time commitment available to actively support and train your team.
Please review the Compensation Plan for a complete list of Career Titles. A copy of the Compensation
Plan can be reviewed here:
http://www.jamberrynails.net/uploads/cms/docs/Compensation%20Plan.pdf
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ETHICAL CONDUCT
As a Consultant, you agree to conduct your business with the highest standards of honesty and
integrity. You agree to refrain from making negative, disparaging, untrue or misleading comments
about the Company, its owners, directors, officers, associates, other Consultants or any other directselling company or such company’s products. You also agree not to engage in any activities that may
cause harm to the Company or any other Consultant.
LEGAL COMPLIANCE
All Consultants shall comply with all federal, state and local statutes and regulations concerning the
operations of their businesses. You are responsible for your own managerial decisions and
expenditures, including estimating income taxes and self-employment taxes. We recommend that
you keep track of all your business expenses and speak with your accountant about how your
business expenses might affect your income tax return.
LICENSES
Some local governments might have ordinances that restrict the way you conduct your Jamberry
business. Contact your local government office to determine if any business licenses are required.
Also, if you live in a subdivision or condominium, check with your association to determine if there are
any limitations on conducting business activities in your home.
CONFIDENTIALITY
All lists of customers, your personal team, or other Consultants are proprietary property of the
Company and constitute a business trade secret. Jamberry may make these lists available to you for
the express purpose of supporting you and your personal team to further develop your Jamberry
business. You may use these lists only in connection with your Jamberry business and for no other
purpose. You must keep the lists confidential and must not make the lists available to third parties or
to use for any other commercial purpose. You agree that any wrongful disclosure of the lists or the
information on the lists will cause immediate and irreparable damage to the Company and that the
Company may pursue all legal remedies available against you if you violate this provision. This
provision will survive the termination of your Consultant Agreement.
NON-SOLICITATION
As an inducement to Jamberry to enter into this Agreement and in consideration of the mutual
covenants contained herein, during the term of this Agreement and for a period of one year
thereafter you shall not directly or indirectly, on your own behalf or on the behalf of any other person
or entity, solicit, induce or hire or attempt to solicit, induce or hire any Consultant who was your
sponsor, in your upline, who you personally sponsored, or who was on your team to terminate or
alter her business relationship with Jamberry. Additionally, for a period of one year after the
termination of this Agreement, you will not own or operate a multilevel social-selling or direct-sales
nail accessory business.
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TRANSFERABILITY
Neither this Agreement nor your Jamberry business may be transferred or assigned by you or
operated in partnership with any other person. Jamberry reserves the right to re-assign this
Agreement at any time.
On a case-by-case basis, Jamberry may allow a one-time transfer or your Jambery Nails business to a
legal entity owned by you.
NEW CONSULTANT DEVELOPMENT
As a Jamberry Consultant, you may sponsor other Jamberry Consultants and build a team. Should you
choose to sponsor Consultants, you are encouraged to provide adequate training and consistent
communication to those you Sponsor, just as you would want provided to you. A variety of tools exist
to aid you in making your training simple and effective. These tools include our weekly Consultant
Newsletter, Compensation Plan, online training materials and videos.
INCOME CLAIMS
The Federal Trade Commission and the laws of several states and provinces regulate claims regarding
the amount of income that can be earned under programs such as the Jamberry program. To avoid
compliance issues with these laws, you may not make income projections or disclose your own
compensation when presenting the Jamberry program. Hypothetical income examples that are used
to explain the operation of the Compensation Plan and that are based solely on mathematical
projections may be made to prospective Consultants, as long as it is made clear that the examples are
hypothetical and not based on actual experience.
REMOTE SPONSORS
When sponsoring long-distance, Sponsors are strongly encouraged to provide training support and
recognition to their sponsored Consultants. Using notes, handouts, video and Skype during team
meetings are effective ways to include remote Consultants in place of live, local training and/or
meeting attendance. The Sponsor is encouraged also:
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Meet Minimum Leadership Support Requirements.
Provide all training and support via phone, e-mail, or other effective communication methods and
technologies.
Arrange with a Consultant in her remote area to have the remote Consultant attend a training session,
if available.
CROSS SPONSORING
Cross sponsoring is strictly prohibited. Cross sponsoring is defined as the sponsorship of an active
Consultant or a terminated Consultant who has been active within the preceding six months within a
different line of sponsorship. This includes the use of a spouse or relative’s name or assumed names
to circumvent this policy. You may not demean, discredit or defame other Consultants in an attempt
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to entice a Consultant to become part of your sponsored group.
SPONSOR REASSIGNMENT
Jamberry will not honor requests from Consultants to have other Consultants’ downline transferred to
them. Nor will we make transfers if there is any concern that proactive solicitation of another
Consultant’s downline has occurred. The Home Office reserves the right to reject transfers for any
reason to maintain a NO POACHING culture and environment.
In order to protect the rights of all Consultants who work hard to sponsor and mentor others in the
business, the Company prohibits the transfer of a Consultant from one Sponsor to another, except
under the following conditions:
RELEASE OF TEAM
A Sponsor may release her team at any time for any reason. In order to do so, the Sponsor should
email [email protected] with a letter of release. Home Office will decide whether the team
reassignment will be effective immediately or on the 1st of the following month. Each individual team
member will roll-up to the next qualified upline (see Roll Ups).
If you inherit a team, due to the Compression Policy or a team release, that you feel is too large for
you to capably coach and support, please contact the Home Office via [email protected].
The Home Office will determine adequate team reassignment.
IMPROPER INITIAL ASSIGNMENT
At times a new Consultant will sign-up as a Consultant through the Jamberry website, however due to
technology issues or other reasons, they are accidentally assigned to a sponsor they did not intend. In
those cases, the Consultant will be reassigned to the sponsor they initially intended provided Jamberry
support us notified within 14 days of the consultant’s sign-up date.
I NADEQUATE SUPPORT
If a Consultant is dissatisfied with the minimum level of support received, she may file a request for
Sponsor reassignment by contacting Jamberry Compliance Department. Jamberry will then contact the
Sponsor via phone or e-mail and give the Sponsor 30 days to release the downline or make amends
with the downline so that the request is withdrawn by the downline via e-mail. If the request is not
withdrawn, Jamberry will then independently assign downlines to another upline who meets
Jamberry’s requirements. No special requests will be honored.
DECEPTIVE SPONSORSHIP
In cases where a Consultant is assigned to a Sponsor in a deceptive manner or such a manner that it
was not clear to the sponsored Consultant who her Sponsor would be, the sponsored Consultant may
request to be transferred to a different Sponsor, with her team intact. The new Sponsor will be
assigned by the Company. The request must be made by the sponsored Consultant directly to
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Jamberry Compliance Department by contacting them within 30 days of her start date. The Company
will investigate each request on a case-by- case basis, and reserves the right to reject or grant the
transfer of sponsorship.
D ISRUPTIVE RELATIONSHIPS
In cases where a Consultant-Sponsor relationship is strained to the point where it is disrupting the
business of those individuals and other Consultants, the sponsored Consultant may request to be
transferred to a different Sponsor, with her team intact. The new Sponsor will be assigned by the
Company and special requests will not be accommodated. The request must be made by the
sponsored Consultant directly to Jamberry Compliance Department. Jamberry will investigate each
request on a case-by-case basis, and reserves the right to reject or grant the transfer of sponsorship.
In the case where Jamberry corporate provides a lead or places a new Consultants on a sponsor’s
team and after sign up the new Consultant feels that she is not compatible or comfortable with the
assigned Sponsor, the new Consultant may request reassignment. The Home Office looks differently at
the cases of assigned relationships versus organic recruiting. The Consultant requesting a sponsor
change may not select a new upline. The Home Office will again assign a new leader based on those
qualified to receive leads.
LEADERSHIP SUPPORT PRACTICES
As a Jamberry Sponsor you are expected to :
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Actively practice the Jamberry Values as described in this Agreement.
Exemplify the cornerstone of Jamberry leadership by maintaining an active and consistent home Party
schedule.
Actively engage in goal setting and mentoring with the new Consultant.
Offer training to the new Consultant by phone or in person within 1 week of the new Consultant
signing up to be a Jamberry Consultant. The sponsor should offer several reasonable time slots and be
prepared for the training.
Allow any new consultant in your downline to attend a Home Party that you are leading or that
someone else on her team is leading within 45 days of the new consultant’s activation. Remote
Sponsors who live 50 miles or more away from you should be supported by phone.
Return phone calls or e-mails within three business days unless you pre-notified your downline of
vacation during which you will be unavailable.
Attend planned meetings and trainings for which you did not call in advance to reschedule or cancel.
Communicate with your downline monthly by e-mail, phone or in-person meetings to check in with
the downline on business goals and progress.
Disseminate information from the Home Office to your downlink in a timely manner.
The Home Office reserves the right to transfer a Sponsor's downline if these qualifications are not
met.
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NO PRODUCT PURCHASE REQUIRED
There is no financial or product purchase requirement to become a Consultant or to enter, maintain, or
advance in the Compensation Plan. In order to familiarize new Consultants with the Company products,
sales techniques, sales aids, and other matters, and for the sole purpose of facilitating sales,
Consultants are required to purchase a Starter Kit. The Company also requires that each Consultant
maintain a personal website and back-office workstation, so the Consultant can have visibility into her
performance and that of her team. The Company sells this Starter Kit to new Consultants and makes
the Consultant website and back-office workstation available to Consultants at or below its cost price.
Any products Consultants choose to purchase, including the Starter Kit, and the Business Supplies may
be returned for refund under the terms of the “Buy-Back Policy” below. The Starter Kit does not
contain any commissionable products and any products Consultants choose to purchase in connection
with becoming a Consultant are optional.
ANNUAL RENEWAL OF CONSULTANT AGREEMENT
Renewal dates will be the last day of the month one year following the month of the Consultant’s start
date. If a Consultant has a start date of November 2011, her renewal date and renewal payment due
date, if any, is the last day of November 2012; i.e. November 30. Consultants will automatically be
renewed for a year if they are in good standing under these Policies and Procedures, are maintaining a
Personal Website, are current in the payment of any personal website fees, and agree to any updated
Consultant Agreement. There are no fees to renew this agreement, provided however, that the
Company reserves the right to change this practice in the future. Any such fee would be at or below
the Company’s cost for providing Consultants with services to facilitate sales including updated official
Company materials.
An annual renewal fee, if any, is subject to change in the future without prior written notice. The
renewal fee may be subject to taxes in accordance to State law and must be paid in currency
(business credits may not be applied).
If a renewal fee is require, Consultant must pay her renewal fee online and agree to the latest terms in
the Consultant Agreement. Payment of this fee will constitute an agreement to the terms of the latest
Consultant Agreement and allow the Consultant to remain as a Jamberry Consultant for an additional
12 months, until the next renewal date. If no renewal fee is required, then Consultant’s continuing
to sell Jamberry products or services shall constitute the Consultant’s agreement to the latest
Consultant Agreement and Policies and Procedures. Failure to pay the annual renewal fee, if any,
by a Consultant will result in the deactivation of that Consultant on the first date of the month
following the renewal month. Once a Consultant has been deactivated, she must wait six months
before reapplying, as noted in the policies on Deactivation.
PERSONAL WEBSITE ANNUAL/QUARTERLY/MONTHLY RENEWAL
A Consultant is required to create a Personal Website and to have access to the Consultant back-office
workstation. The cost of this service for your join month plus the first three full calendar months after
your join month are included in the cost of the Starter Kit. On the first day of your fourth full month as
a consultant, the credit card on file will be charged for either a monthly fee of ten dollars ($10), a
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quarterly fee of twenty seven dollars ($27) or an annual fee of ninety seven dollars ($97) depending
on which option you’ve elected. The Personal Website Fee will be automatically charged either
monthly, quarterly, or annually without further notice. Your Personal Website Fee must be
current to qualify for monthly commissions payouts. Your workstation will provide an option for
you to select the frequency of your payment and to select your preferred payment method.
Any Consultant with a Career Title of Executive or higher will receive their Personal Website for
no charge. No refunds will be offered to any Consultant who achieves the rank of Executive or higher
during any period in which they have already paid for the Personal Website (whether monthly,
quarterly, or annually). Refunds for the Personal Website will be provided according to the
Company’s Buy-Back Policy.
TERMINATION OF CONSULTANT AGREEMENT
The following terms are used to describe a termination of the Consultant Agreement:
RESIGNATION
You may voluntarily terminate the Jamberry Consultant Agreement at any time and for any reason by
submitting a Self-Resignation Form (provided by the Company) to the Company. Self-Resignation
Forms can be downloaded from the Consultant Workstation. Consultants who resign must also send
copies of the letter to their upline Consultant and notify any downline Consultants of their resignation.
CANCELLATION
Cancellation means a loss of Consultant status and all Consultant benefits including product discounts,
Company mailings, eligibility for Consultant contests, events and incentives, as well as the loss of all
downline Consultants and downline commissions. All canceled Consultants’ downlines and related
coaching commissions will roll-up to the next qualified Consultant, in accordance with our policy on
“Roll-Ups”, during the following calendar month. The Consultant Agreement may be canceled:
1. As a result of the Consultant’s resignation.
2. At the conclusion of the initial term or any renewal term without notice.
3. At the death or retirement of the individual Consultant.
4. Immediately upon relocation and change of the Consultant’s permanent residence outside of the
country where Consultant signed the Consultant Agreement.
HOME OFFICE TERMINATION
The Company may terminate the Consultant Agreement with any Consultant at any time and for any
reason by notifying you in writing of our election to terminate. The Company may immediately
terminate this Agreement without notice in the event of your death, insolvency, assignment for the
benefit of creditors, or misrepresentation in or breach of any provision of the Agreement, violations
of policies as herein defined.
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The Home Office may also terminate the Consultant Agreement if there has been a breach of any
term of these policies, the plan or the Consultant Agreement, by the Consultant. Upon termination, the
Consultant will have thirty days from the date of termination to provide a written request to Jamberry
via email at [email protected] for a refund of any pre-paid Personal Website fees for months
which have not yet passed. Upon receipt of such request the Company will refund any such pre-paid,
but unused amounts, to Consultant within ten business days of such request. If Consultant fails to
make such refund request within the time specified above, any such pre-paid Personal Website fees
shall be forfeited to the Company. For purposes of this Agreement, a “breach” shall include, but not be
limited to, any actions by the Consultant which, in the Company’s sole discretion, the Company
believes:
1. The Consultant discredits the Company’s name, goodwill or products,
2. Breaches any provision in any way which is contained in this Agreement, or the New Consultant
Start-up Guide;
3. In any way misrepresents the Company’s products or business opportunity.
The Company shall notify the Consultant by e-mail of the Home Office Termination at the latest email
address listed with the Company for the Consultant. If the Consultant Agreement was terminated by
the Home Office, the Consultant may not reapply.
EFFECT OF TERMINATION
Terminations of the Consultant Agreement are effective the first day of the month following the date
of Resignation, Deactivation or Termination. Upon termination of the Consultant Agreement for any
reason, your personal group will roll up as per our policy on Roll-Ups. In addition, you will lose any
gift certificates, Product Credits and Business Supply Credits that you have earned. You will receive
legitimately earned commissions only for the last full payment period you were active prior to
termination.
In the event that you should choose to become a Consultant again, the Company may accept or reject
your application for any reason at its sole discretion. If your application is accepted, you must start at
the beginning Career Title of Consultant.
EVENTS UPON TERMINATION OF THIS AGREEMENT
YOU WILL:
1. Within five days of termination pay all amounts due and owed to Jamberry;
2. No longer have the right to offer or arrange sales of Jamberry products or services and you must
cease representing yourself as a Jamberry Consultant immediately; and
3. Be ineligible to receive any unaccrued compensation or benefits as a Consultant.
You will cease use of Jamberry Intellectual Property and Confidential Information and will cease
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holding Home Parties, trade shows, presentations or otherwise displaying, offering for sale or selling
Jamberry products. If you offer for sale or sell Jamberry products in violation of the foregoing
sentence, Jamberry will be entitled to recover from you $5,000 as liquidated damages without having
to prove actual harm.
If requested by Jamberry, you will return all Confidential Information to Jamberry. You may return to
Jamberry unsold Jamberry products purchased within thirty days of the Termination, provided that the
products are in resalable condition, not discontinued, and are returned with shipping charges prepaid
and insured for their full value during shipment, and Jamberry will reimburse you according to the
Buy-Back policy set forth below. If you decide to return any unsold Jamberry Products, Jamberry
reserves the right to offset any amounts returned to you against previously paid commissions or
other rewards. The net refund will be issued within four weeks from receipt of the returned
product.
BUY-BACK POLICY
A Consultant may return any Starter Kits and marketing materials/business supplies that she
personally purchased from the Company during the previous year at any time.
1. Starter Kit
The Consultant Starter Kit may be returned within one year from the purchase, and is eligible for a
refund of up to 90% of the purchase price. The Starter Kit must be returned in its entirety; all contents
of the Starter Kit must be unopened and all items must be unused and in resalable condition in order
to receive a refund. The Starter Kit must be returned to the Home Office via registered mail. A
trackable and/or insured (insured for approximately $200) shipping method should be used, as
Jamberry will not be responsible for lost shipments. The original shipping and handling fees are not
eligible for refund.
Opened Starter Kits will be prorated to the resalable value. Damaged or used items may not be
returned.
* Note that residents of North Dakota are not required to purchase a Starter Kit.
2. Business Supplies, including those purchased separately from the Starter Kit
Jamberry offers business supplies and promotional materials, as well as wholesale product, for your
convenience. However, these items are not required to conduct business and may be purchased at
your option. Nevertheless, business supplies and promotional materials may be returned to Jamberry
within 90 days of purchase for a refund of up to 90% of the purchase price, provided that the
business supplies and promotional materials are unopened , unused, and in resalable condition. If you
choose to return such business supplies and promotional materials, you are responsible for the cost of
the return shipment and insurance to cover the shipment. All such returns should be shipped by a
trackable means and should be insured for at least the retail value of the items being returned. Original
shipping and handling fees are not eligible for a refund.
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3. Personal Website
You may cancel any services contracts or arrangements you have purchased including personal website
for a refund for any reason, (i) provided written notice (the “Cancellation Notice”) is provided to
Jamberry, specifying the specific service(s) subject to cancellation (the “Cancelled Service(s)”). Refunds
will be provided for the Cancelled Service(s) pursuant to the policies below. In no circumstances shall
you be refunded for amounts paid in respect of Cancelled Service(s) in any month PRIOR TO the
calendar month in which the Cancellation Notice is delivered. Note however, that if you cancel your
personal website subscription, you will not be eligible to receive commissions or overrides under the
plan.
Where the Cancellation Notice is provided to Jamberry prior to the 15th day of the calendar month,
you shall be reimbursed 100% of the amount paid for the applicable Cancelled Service(s) for that
particular month, and no further payments shall be required from you for the Cancelled Service(s).
Where Cancellation Notice is provided to Jamberry on or after the 15th day of the calendar month,
but prior to the start of a new calendar month, you shall be reimbursed 50% of the amount paid for
the applicable Cancelled Service(s) in respect of that particular month, and no further payments shall
be required from you for the Cancelled Service(s), such reduced refund amount being commercially
reflective of your consumption and use of the Cancelled Service(s) during the first half of the
applicable month.
COMPRESSION
Compression occurs when a Consultant who has sponsored a team is either canceled or resigns.
At the time of a Consultant’s Cancellation or Resignation, every Consultant below her will immediately
be compressed up to the next active Consultant in the cancelled or resigned Consultant’s upline.
If a Consultant that was paid-as an Executive or higher in the last four periods is canceled (whether
voluntarily or involuntarily), their downline will only be compressed up under the following conditions:
1. If their Personal Sponsor has been paid-as an Executive or higher at least once in the last four
periods, then the downline will immediately be compressed up.
2. If their Personal Sponsor has not been paid-as an Executive or higher at least once in the last four
periods, then they will be given the following six periods to be paid-as an Executive or higher at least
twice. If the Consultant promotes to Executive in the last of the six month period, then they will be given
the following period to qualify as an Executive again (to meet the 2 periods of being paid-as Executive or
higher).
a. If the Personal Sponsor qualifies under these conditions, then the downline of the canceled
Consultant will be compressed up upon the completion of the qualifications.
b. If the Personal Sponsor does not qualify under these conditions, then the position of the canceled
Consultant will remain permanently vacant.
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REACTIVATION POLICY
Consultants may reactivate only when their Consultant Agreement was terminated as a result of their
voluntary termination of the Consultant Agreement or for their failure to achieve 600 PRV during any
rolling 12 month period. Consultants who were terminated by the Home Office may not reactivate at
any time, except with the express consent of the Home Office. The Home Office reserves the right to
deny a request for reactivation. A Consultant who wishes to reactivate must:
1. Wait six months from the date of termination of the Consultant Agreement before reapplying.
2. Sign up online by submitting a new Consultant Agreement.
3. Purchase a new Consultant Starter Kit at the current price.
Reactivation does not entitle a consultant to take back her position and downline. Upon reactivation,
the Consultant must restart at the Career Title of Consultant and will have no downline.
TEAM MANAGER LEVEL RESPONSIBILITIES
Consultants who achieve the Team Manager pay level may be asked to sign an Addendum to the
Consultant Agreement. Please note that the Addendum will be provided to Consultants for their review
prior to the completion of Home Office’s standard month-end checks and processes that confirm all
promotion levels. If it is determined that a Consultant did not achieve Team Manager pay level in the
preceding month, that Consultant will be contacted by Home Office and need not execute the
Addendum. Consultants must submit the signed form to the Home Office within 15 days after the
month of promotion. (For example, if you promote on March 28, you must submit the Addendum on or
before April 15 to be paid as a Team Manager in April). Consultants who do not execute the Addendum
at the time of promotion can choose to execute the Addendum at any time in the future, provided they
allow 30 days advance notice. (For example, a Consultant who signs the agreement after the 15 days,
on April 16, will not be paid at Team Manager until the following month, May.) Consultants can opt out
of the Team Manager’s Addendum by sending an email to the Home Office at any time. Please allow up
to 30 days to process the request. Consultants may only execute the Addendum once during a 12
month period. The purpose of the Addendum is to commit Consultant’s with the Career Title of Team
Manager or above to additional leadership requirements and expectations, among other things.
COMMISSIONS POLICY AND PAYOUT TIMELINES
Consultant commissions, bonuses, rewards, and titles are based upon the Jamberry Compensation Plan
which is incorporated into this Agreement by reference. Please review the Compensation Plan for
complete details, a copy of which can be reviewed here:
http://www.jamberrynails.net/uploads/cms/docs/Compensation%20Plan.pdf.
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Commissions on your personal retails sales are paid based on the retail value of the products sold. All
other commissions, overrides, and bonuses, are based on the commissionable amount of the product.
Commissions do not apply to the sale of Consultant-only items (e.g. Starter Kit, business supplies,
promotional items, etc.).
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A commission of 30% will be paid weekly by 11:59 p.m. each Friday for your personal retail sales
completed during the period from Wednesday at 12:01 a.m. through Tuesday at 11:59 p.m., i.e. the
period ending three days before the commission is paid out. All personal sales bonuses, level overrides,
advancement bonuses, matching bonuses and generational overrides will be paid monthly on or before
the 10th of the month as described below. If you are receiving your payments by check (and not
ProPay) your personal retail sales commissions will be paid monthly, not weekly.
End-of-Month Payout: All sales bonuses, level overrides, generational overrides, and other payments
will be paid monthly. Your end-of-month payout will be deposited on your card, on or before the 10th of
the following the month for U.S. Consultants. If the 10th falls on a weekend or holiday, the commissions
will be paid on the next business day.
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From time to time, we put items on sale as a promotional discount. These special sale items are
commissionable on the sale price of the item and not the regular retail price.
Business Supplies Credit, if earned, are credited within 5 to 7 business days after the commission period.
Please do not call to inquire before this time has passed. Promotions occur after the first of the month
following the month when all qualifications are met. Fast Start Rewards are issued weekly and are
typically paid within five business days of when they are earned.
If you have any issues or discrepancies with your commission report, they must be reported by the end
of the calendar month following the month for which the commission was issued. For example, if you
have a concern about September’s commission, which you would have received by October 10th, you
must report that issue to the Home Office by the end of October of that same year. Issues reported
after that timeline will not be researched or adjusted. Send your requests via email to
[email protected].
Online earnings reports list the amount of the commissionable product your downline has ordered each
month. If overpayments are made, amounts will be deducted from future payouts.
If you elect to not be paid your commissions via the ProPay Debit Card, then your commissions will be
issued by check. Commissions paid by check will incur a $2.00 per check processing fee.
Commissions payable by check are issued only if $25 or more is due. Commissions totaling less than $25
will be added to the next month’s commission and issued when accumulated commissions total more
than $25.
If you fail to renew your Consultant Agreement due to inactivity or failure to meet minimum sales
requirements, or if your Consultant Agreement is terminated, you will receive bonuses and commissions
only for the last full pay period prior to the termination (less any amounts withheld during an
investigation preceding an involuntary termination).
A Consultant is a self-employed, independent contractor of Jamberry. As the Consultant is not an
employee of Jamberry, each January 31st, Jamberry issues Tax Form 1099 for the previous year. A 1099
will be issued for each non-employee who has earned commission checks, incentives, prizes, etc., of
$600 or more. Commission and other earnings must be claimed as income in your tax filings each year.
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ACCOUNT HOLDS
Jamberry may, at its option, place a Consultant’s account on hold for money owed to Jamberry or for
violation of other policies listed in these Policies & Procedures. If an account is placed on hold, the
Consultant may be prohibited from placing orders, receiving all or a portion of commissions, registering
for Conferences or other corporate events or obtaining other Consultant benefits until the account is
current and/or all Policy and Procedure violations are corrected; or, if the Consultant is in a
requalification period, until the requalification period has expired.
SUSPENSION OF CONTRACTUAL OBLIGATIONS
In certain circumstances, Jamberry may agree to allow, as a matter of contract, a Consultant to suspend
their contractual obligations to the Company on the grounds of maternity or personal leave issues,
provided the total time during which the contractual obligations remain suspended does not exceed
three(3) months in any one twelve-month period. Consultants may elect to take a leave of absence
once every twelve months. The twelve-month period for testing to determine eligibility for taking leave
begins at the end of the last month of any prior leave taken, if any. To request suspension of their
contractual obligations, Consultants can notify Jamberry by e-mailing [email protected]. If a
Consultant has earned the rank of Premier Consultant or below for two of the three months prior to
electing a leave of absence, the Consultant’s account will be placed on hold during the leave period. The
Consultant will not be required to meet the PCV requirements to stay active or to maintain a team.
During the leave period, however, the Consultant will not be able to access their account, place orders,
or receive any form of commissions. If a Consultant has earned the rank of Team Manager or above for
two of the three months prior to electing a leave of absence, the Consultant’s account will not be placed
on hold. Rather, the Consultant will have access to the Consultant Workstation and personal website
during the leave of absence. The Consultant will be able to make and receive retail orders and be paid
on persona retail commissions only. The Consultant will not be required to maintain the PCV
requirements needed to remain active or to maintain a team. Jamberry reserves the right to review
requests for leaves of absence on a case-by-case basis to insure that the leaves of absence policy is not
abused.
CORPORATE MARKETING, LEADS AND ASSIGNMENTS
Jamberry makes a considerable investment in building our general brand and driving awareness that will
fuel all of our Consultants’ businesses. Our corporate marketing and public relations efforts are intended
to attract new potential customers and Consultants, which ultimately benefits every Jamberry
Consultant.
OUR PHILOSOPHY
1. For building a great social selling business, there is no substitute for leveraging YOUR social network.
Home Office leads should not be expected and are not a way to build a personal business. We do
general marketing like press and events because we know that you can then show this media coverage
to your network of people and build excitement.
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2. Our lead and assignment program has been designed to provide customers with the best possible
local experience. By honoring the customer, we believe we build the best business for all Consultants.
The Home Office will allocate Leads and Assignments with the utmost integrity to Consultants whom we
deem to be exemplary members of the Jamberry team and who we believe will provide the best support
and leadership to our customers and new Consultants.
a. A “Lead” means a request made by a customer for more information about Jamberry, interest in
hosting a home party or learning more about the opportunity to become a Consultant.
b. An “Assignment” means a new Consultant who have signed the Consultant Agreement but has not
indicated a Sponsor.
3. We do not make exceptions to this program and we are under no obligation to provide history or
explanations for our Lead and Assignment allocations.
The corporate marketing and public relations efforts will primarily direct potential customers/
Consultants to our official corporate website, www.jamberrynails.com. While on the official corporate
website, the potential customer or Consultant may learn more about products and Consultant
opportunities. The following are examples of qualifications that Jamberry may require for Leads and
Assignments. In general, most, but not all, Leads and Assignments will be given to a Consultant who:
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Embodies the core values of Jamberry and is an exemplary member of the Jamberry community.
Has a Jamberry Personal Website.
Has earned the pay rank of Lead Consultant or above in the previous month for leads interested in
learning more about the Consultant opportunity.
Has qualified in the previous month for leads interested in hosting a Home Party.
Have sponsored one new Consultant and met the Minimum Leadership Support requirements.
Jamberry has the right to transfer any Consultant who was a Corporate Lead to another team if the
Home Office determines the Consultant is receiving inadequate coaching as per the Minimum
Leadership Support requirements.
The Company encourages a Consultant to advertise her personal website in online blogs, social media
sites, and other commercial websites as much as possible to drive online sales. However, please note
that we have specific rules around online advertising that include:
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Compliance with our advertising and online policies. When you market your business, always refer to
yourself as a Jamberry Independent Consultant to eliminate confusion between your personal website
and the official Jamberry website. You may never sell your products on any site other than Jamberry
(this includes eBay, Etsy, or other auction sites).
You may not create search engine marketing campaigns (this includes Google AdWords) as it directly
competes with Jamberry’s official website and any advertising placements we are running.
On Facebook, please keep your paid advertising local and remain within 100 miles of your home.
You may not offer blanket discounts in your ad as per the policy on Blanket Discounts.
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TAXES
INCOME TAX
As a self-employed professional, it is up to you to maintain complete records regarding your income and
expenses. This will greatly assist you when calculating your taxes every year. There are many tax
benefits that can be available to self-employed individuals, and everyone should consult their own tax
advisors concerning how the benefits may apply to each individual case. Visit the IRS website
(www.irs.gov) or for more information.
At the beginning of each calendar year, Jamberry issues Tax Form 1099 for the previous year. A 1099
will be issued for each non-employee who has earned commission checks, incentives, prizes, etc., of
$600 or more. Commission and other earnings must be claimed as income with your tax filings each
year.
As a Jamberry Consultant, you are an independent contractor to Jamberry, not an employee. Because of
this distinction, you are self-employed for income tax purposes. You will report your commission
income on Schedule C of your income tax return. As a self-employed Schedule C tax filer, you may have
significant advantages in deducting business expenses. Examples include home office deductions,
business use of your auto, home computer usage and travel and entertainment expenses.
Throughout the year, keep all of your receipts for income and expenses in one place. Designate a folder
for paperwork and don’t forget to write down mileage that you’ve traveled in order to conduct your
Jamberry business. This will make it much easier for you to calculate your tax return at the end of the
year.
You may call the IRS at (800) 829-1040 and request several helpful pamphlets at no cost.
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Direct Sellers, No. 911
Travel, Entertainment, Gift, and Car Expenses, No. 463
Self Employment Tax, No. 533
Business Expenses, No. 535
Business Use of Your Home, No. 587
Business Use of a Car, No. 917.
Form 4562 is used if you buy equipment (like a computer or a printer) that costs more than $150 (or the
currently applicable amount).
Sole Proprietorship – Small Business Tax Kit (also free). This kit includes copies of, and instructions for,
all of the federal tax forms you need. Call to request this at the end of the year.
Don’t forget, if your state has income tax, you will also need to file state tax forms.
FREQUENTLY ASKED QUESTIONS ABOUT U.S. INCOME TAX
If I don’t receive a Form 1099 from Jamberry, do I still need to file a tax return?
Yes, you need to report income you earned from sales of Jamberry products on Schedule C.
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If I didn’t make $600 in my Jamberry business, do I still have to file?
Yes, if you are in business, you still need to file. If you had more expenses than income, you may have
incurred a loss in your business that can be used to offset other income and reduce your taxes. You
should discuss this with your accountant.
You will be able to deduct the expenses incurred in connection with your Jamberry business. Please
contact your tax advisor concerning any questions you may have.
SALES TAX
When you become a Consultant, you authorize the Company to collect and remit to the proper
governmental agencies the applicable sales tax generated as a result of your sales of products as
outlined below. When orders are placed with the Company, sales tax is based upon the suggested retail
price. You must agree to be bound by all sales tax collection agreements between the Company and all
appropriate taxing jurisdictions, and all related rules and procedures.
Sales tax is calculated on the suggested retail price of the items purchased, not on the cost to the
Consultant. Here’s how sales tax works for your Jamberry Business:
1. When your customers purchase products from Jamberry, the Company collects sales tax and
submits it to the appropriate state based on the retail amount of the order and the location of the shipto address.
2. When you purchase products from Jamberry, and do not utilize Product Credits or Business Supply
Credits, the Company calculates, collects and remits tax on your Consultant price. When you use Product
Credits on your order, tax is calculated on the full retail value of the items. Consultants are also charged
tax on the full retail value of Business Supplies, regardless of whether or not Business Supply Credits are
used.
3. Hostess Rewards are subject to Sales Tax on the full retail amount of the rewards.
STATE SPECIFIC SALES TAX NOTICES
For consultants resident in the following states, the specific rules explained above are modified to the
following:
Alaska: Jamberry will not charge or collect sales tax for any sales originating in Alaska. Consultants who
reside and conduct business in Alaska are required to obtain their own sales tax license and to charge,
collect, and remit any and all necessary sales tax amounts to the appropriate state or local tax agency.
Hawaii: The State of Hawaii requires Jamberry to collect a 4% excise tax on all payments payable to
Consultants resident in Hawaii. The State of Hawaii also requires Jamberry to collect a ½% excise tax on
all wholesale purchases. Jambery Nails has decided to not charge the ½% excise tax on wholesale
purchases to the Consultants and will instead absorb this cost as a convenience to all Hawaii
Consultants.
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New Mexico: All Consultants residing in New Mexico are required to register with the state and obtain a
gross receipts license and to pay to the state all applicable gross receipts taxes on commission payments
received from Jamberry.
Washington: The State of Washington requires all Consultants resident in the state to register for, file,
and pay a Business and Opportunity tax for all retail sales exceeding $89,172 per year or if the
Consultant has commission payments exceeding $28,000 per year. The State of Washington also
imposes a state litter tax which Jamberry will pay as a convenience to its Washington resident
Consultants.
EXEMPT SALES
Organizations that are exempt from federal income tax are not necessarily exempt from sales tax. For
example, the Girl Scouts of America, while exempt from income tax, are not exempt from sales tax.
Each state has their own laws regarding sales tax exemptions. If you are going to be making a sale to an
organization that is exempt from income tax and believe they may be exempt from sales
tax, please send an email to [email protected] with the specific facts.
Insurance
If you have a vendor event at a facility, you may be required to provide proof of general liability
insurance. Consider speaking with your insurance agent about whether or not you need coverage for a
small and/or home- based business. If you are using a vehicle for your business, you can you also
discuss auto insurance.
ADVERTISING, PRESS, TRADEMARK AND PUBLIC IMAGE
PROTECTION
REPACKAGING OR RELABELING
Because repackaging could violate laws or result in civil liability, all products must be sold in their
original packaging only and may not be altered. Selling of half sheets of nail shields is strictly prohibited.
TRAINING MATERIALS
Consultants may not produce, distribute or sell DVDs, videotapes, audiotapes and other training
materials bearing the Company brand and name. If you have suggestions for training material, please
submit your ideas to the Home Office by e-mailing [email protected].
LIABILITY
1. Jamberry cannot guarantee or in any way be responsible for Jamberry products purchased from
sources other than Jamberry.
2. Jamberry cannot guarantee or in any way be responsible for products that are not officially part of
the Jamberry product line.
27
3. Jamberry cannot guarantee or in any way be responsible for products that have been imprinted
with the Jamberry trademark by sources other than Jamberry.
4. Jamberry cannot guarantee or in any way be responsible for products that are used or applied in a
manner inconsistent with the stated intent or instructions of Jamberry.
5. Jamberry cannot guarantee how a customer’s nails will react to its nail wraps. If you or a customer
notices that the nail wraps are causing dryness or damage to the nails, please follow the removal
instructions, follow industry nail care advice, and wait three weeks before applying a new set of nail
wraps.
TRADEMARKS
1. Consultants’ duplication of Jamberry trademarks or service marks is prohibited. Examples of
Jamberry trademarks include, but are not limited to, Jamberry, or the Jamberry logo. Display or sales
of Jamberry product in retail or service establishments of any kind are inconsistent with the purpose
for which the trademarks are registered.
2. When reproducing the Jamberry logo, it must not be altered in any manner or form.
Jamberry Consultants may not duplicate the Jamberry trademark for private use or for the intention of
selling non-Jamberry products to others.
ADVERTISING AND PRESS
You may advertise in local publications and online, but must make sure your ad is accurate,
professional and not misleading in any way. You must always list your Jamberry personal website
address and use only official Jamberry logos and images. If you list contact information, you must
identify yourself as an Independent Consultant so that there will be no confusion that you represent
the Home Office. You may advertise sponsoring opportunity events, home parties or any other
Jamberry events you choose. You may not run advertisements that feature specific products for sale
or blanket promotions (please review our policy on blanket discounts).
PRESS CONTACTS AND LEADS
The Home Office and our public relations firm are the primary points of contact with any and all
journalists, top-tier bloggers*, editors, celebrities and large-scale fashion and beauty influencers on
behalf of Jamberry Nails. Any Consultant wishing to contact any of the aforementioned press or media
entities, even if they are hyper local, is required to contact the Home Office Marketing Department first.
We may already be working with them, and if we are not then we can work with you to further your
goal in working with them while ensuring you are compliant with our policies and procedures regarding
these relations. Please direct any and all questions and media inquiries to [email protected].
*Top-tier bloggers include any blog that has a reach/following of 5,000+ people. If you are contacted
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