Lilla rose consultant manual

Welcome!

I would like to personally welcome you to Lilla Rose.

Congratulations on your new business!

This Manual will help you get up to speed with your new Lilla Rose business in the shortest time possible. The following pages hold the answers to many questions that you might have, and also create some new ones.

Whether you joined Lilla Rose as a way of meeting new friends, having some fun, or earning some extra money, I encourage you to consult this manual, our website, your sponsor, and our office as a means of supporting you in your own personal quest. Remember, by signing your consultant agreement, you are now in business for yourself.

Your Lilla Rose business is here for you to make it what you want. Run it part-time or full-time; you can get out of it what you put into it. This is a wonderful opportunity to achieve your dreams and we are here to help you every step of the way!

Your Lilla Rose business offers you something many people never achieve in their lifetime – true freedom, and most importantly, the ability to help others in the pursuit of their own dreams.

I welcome you to Lilla Rose and look forward to celebrating your achievements.

Sincerely,

John Dorsey President

Table Of Contents Important Startup Information About Lilla Rose Lilla Rose University

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� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

Setting Your Goals � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 16 The “Get Ready, Get Set, Go!” Business Plan � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 22 Your Grand Opening � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 26 The Retail Opportunity � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 30 Group Demonstrations � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 36 Sponsoring � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 46 Forms & Tools � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 50

Lilla Rose Compensation Plan

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Retail Discounts � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 57 Enroller and Sponsor Relationships � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 58 Enroller Relationship Bonus � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 58 Fast Start Bonus � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 60 Qualifying & Maintaining Management Benefits � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 61 Leadership Bonus � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 62 Executive Management Bonus Pools � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 63

Retail & Advertising Policy Frequently Asked Questions Glossary of Terms Policies & Procedures

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� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

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Table of Contents Lilla Rose Inc. Consultant Manual - May 2013

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Introduction & Getting Started with the Consultant Manual Congratulations! You have become a part of an exciting business that brings many interesting and dynamic people together for a common purpose – creating a satisfying life and sharing this life with others.

By becoming a Consultant with Lilla Rose, you have taken the first steps toward an adventure in achievement. This guide was designed to give you a plan and some of the tools that will help you build a successful business. It will also serve as a reference that you can use as your business grows. This manual is posted in your web based Consultant Back Office for ease of access.

You should read the business guide thoroughly and understand it before you give your first presentation. It is also vital that you be familiar all of the catalogs, brochures, business forms and printed materials that you will be using and giving to your customers.

The more comfortable you are with the materials, the more confident you will be and the more professional you will appear.

We have made your presentation as easy as possible by utilizing high quality and simple to understand materials.

We encourage you to make a habit of keeping the guide with you, especially when you are giving a show or demonstration. All of your materials can be downloaded and printed.

Some cannot be edited. You can add contacts to your planner, or see at a glance when you have dates available for group or individual demonstrations. It can also be a handy resource for any questions you might have about company policies.

OK... Let’s Get Started!

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Important Startup Information

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Startup Information Lilla Rose Inc. Consultant Manual - May 2013

Know How To Reach Lilla Rose & Your Support Team Address:

Lilla Rose Inc PO Box 3117 La Habra, CA 90632-3117

Email:

consultants@lillarose.biz for Consultants help@lillarose.biz for Customers

Corporate line: Fax:

(888) 519-8889 (949) 528-2061

Office Hours:

9:00 AM to 5:00 PM Pacific Standard Time, Monday-Friday

Office Holidays:

New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, & Christmas

Web Site:

Marketing:

www.lillarose.biz www.lrose.biz

Your Support Team Enroller

Sponsor

Phone (

)

Phone (

)

Cellular (

)

Cellular (

)

Fax (

)

Fax (

)

Email

Email

co nfe we renc e b loc train call al in ot mee g he ti ng r

Startup Events (Talk with your sponsor to complete this section)

Time

Date

Location

Note

Startup Information Lilla Rose Inc. Consultant Manual - May 2013

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Ordering & Shipping of Products Orders and Forms (online or paper) should be complete, accurate, and submitted as required. Taking your time during this step will insure you of prompt service and accurate accounting. All orders can be placed in one of three ways (See Placing Orders below). All forms are provided online at the company website.

Payment of Orders takes place immediately after the order is input into the system and an order total is presented.

Lilla Rose accepts cashier’s check, credit or debit card, or automatic bank draft. Add appropriate handling and shipping charge (Shipping Options below).

Placing Orders is easily accomplished by one of the following three ways to order products from Lilla Rose: 1. The company website, www.lillarose.biz.

2. Over the phone during Lilla Rose office hours, using our toll-free order number (888) 519-8889. Before calling please be sure to have the following on hand: Your Lilla Rose Consultant Identification Number which was in the email auto-responder you received immediately after enrolling online, also referred to as your Consultant ID. A Social Security Number, or Federal Tax ID number if you are registered as a Company/Corp can also be used.

Method of payment on record or provide a new payment method.

A Shipment address if different from your mailing address. Shipping addresses must be a street address and not a P.O. Box. We do not ship to a P.O. Box. Product identification numbers and quantities so that our staff can take your order and immediately provide you with an order total. When you order online all charges including products, tax, freight and special handling are tabulated for you automatically.

3. The company fax for Lilla Rose is (949) 528-2061.

!

Orders, once fully paid, are credited the day they are received. Orders must be successfully paid for within the pay period in order for them be included for personal sales volume and to be paid commissions and bonuses.

Special Consideration cannot be granted by the Home Office. This includes asking us to accept collect calls, pay part of street fair booths, give sample products, make exceptions to policies and procedures, “bend” the marketing program, or to hold checks for several days for yourself or friends.

Shipping of Orders are via ground service and through private carrier; therefore, you must furnish a street address and telephone number designating where the products are to be delivered. UPS will not deliver to a post office box. Orders will normally be processed within forty-eight hours. Orders received on Friday will be shipped by the following Tuesday.

Shipping and Handling Options:

Air - You may select Air transportation and pay the additional fee. This fee is tabulated at checkout.

Freight - All products and marketing materials are F.O.B. destination.

Returns & Exchanges Returned Merchandise information is detailed in the “Buy Back” section of the Policy & Procedure’s section. Lilla Rose is proud of its products and wants to ensure that you and your customers are happy with your purchases.

The process for returning or exchanging products is different depending on who purchased it and where. The following information should explain the most common scenarios, but if you have questions, please call customer service to be sure, and so you don't give your customers the wrong information.

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Startup Information Lilla Rose Inc. Consultant Manual - May 2013

Returns & Exchanges for Your Online Customers

Lilla Rose, Inc will gladly accept returns and exchanges from customers who have purchased from your Lilla Rose Replicated Website. Please email help@lillarose.biz to request your return or exchange.

Exchange Policy

Refund Policy

Covers damaged, defective and incorrect sizes Covers unwanted products 90 days from date of purchase; 1 year for defective items 30 days from date of purchase Must include a copy of the original order form, or packing slip with mark item(s) returning Item must be in original, unused condition If within 90 days of purchase, Lilla Rose will pay for Customer pays for return shipment to Lilla Rose, Inc. return shipping via Pre-Paid Merchandise Return Label, Original shipping charges non refundable. and for shipping back to the customer.

Returns & Exchanges for Your Offline Customers

Offline orders are sales you make in person, by selling product you have already purchased. Lilla Rose has no way of verifying when your customers purchased from you in this scenario. We consider this to be your customer, and your sale.

When you create an offline sale, you need to convey to your customer that you will personally handle any discontent with the product or purchase. This will strengthen your relationship with this customer, while simultaneously creating extra value to their purchase, making it a personal experience for the customer. If a customer feels appreciated and taken care of, they are much more likely to tell their friends about you.

So how can you maintain a connection to help process their return? First, be sure to give them your business card with each purchase. Second, always provide a receipt - this will benefit you and the customer should there be any issues. We provide free printable Customer Order Forms that make great receipts. They are available in your Back Office. You can also purchase a professionally designed order booklet from your Consultant Shopping Cart. These are 2-Part Carbonless Forms that are numbered, and have a place to enter your information as well as theirs.

In the end, if for whatever reason your customer has lost contact with you, they can always contact Lilla Rose and we will help them get back in touch with you, or help them process the return directly.

Returns & Exchanges for Consultants

Please print the Product RMA (Return Merchandise Authorization Form) form located in your Back Office under Tools & Information Enhanced Tools Help Documents, and include it with your return/exchange. You will need to call the office for an RMA number.

Exchange Policy

Refund Policy

Covers damaged, defective and incorrect sizes Covers unwanted products 90 days from date of purchase; 1 year for defective items 30 days from date of purchase A Product RMA form must be included Item must be in original, unused condition If item is defective and within 90 days of purchase, Lilla Consultant pays for return shipment to Lilla Rose, Rose will pay for return shipping via Pre-Paid Merchandise Inc. Original shipping charges non refundable.

Return Label, and for shipping back to the Consultant.

Otherwise, Consultant pays for shipment to Lilla Rose.

General Conditions for any Return or Exchange: Please allow 2-4 weeks for processing. Original shipping charges non refundable.

Startup Information Lilla Rose Inc. Consultant Manual - May 2013

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About Lilla Rose

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About Lilla Rose Lilla Rose Inc. Consultant Manual - May 2013

We have been in the hair goods business since 1992 when my wife wanted that first pair of

beaded chopsticks. She bought the materials to make them, but then decided to go get the expensive ones at Nordstrom instead. I took her materials, fascinated by what they were selling for, and started making them myself in the garage. Enthusiastic, admiring friends bought them up. Suppliers referred us to contacts with major retailers nationwide and, several million pairs later, everlasting success was assured… almost.

Trials and tribulations ensued, the product line expanded and contracted, and we lived life utterly dependent on what huge retailers sold or didn’t sell for us. After 9/11 things got even tougher, and we retracted into the “lean times” I call it the black years-where we literally couldn’t make rent. It was as if everything I tried failed. My wife, Missy, finally had enough and sent me into the garage with instructions to, “pull out some of your old beads and wire, make something and go sell it… NOW or else! (All husbands know what “or else” means!)

I had so much raw inventory left over from my seven years of trying to make a go of big retailers and as fate would have it, one of the products I had the most materials for was the Flexi clip. I quickly began assembling product for a weekend marketplace near our home. I went to the marketplace with barely enough capital to get in, buy a hotdog and get home. By the end of the first weekend, I had left with over $1,000.00. At the time, it was so significant. It represented hope. Tears of joy followed. The epiphany came when I realized I had kept doing the same thing for years and expected a different result. I now had a roadmap. I understood that no one would understand really how good my products were unless I demonstrated them.

Need for more financial stability led me to experiment with sales at a local Farmer’s Market where I quickly confirmed all the benefits, and potential, of direct selling. Then another moment of truth unfolded before me: I wanted to do an event but I couldn’t be in two places at once. My friend, Shannon, suggested she would cover the Farmers Market if I wanted to do another event. Another “ah-ah” moment… duplicate my effort without cloning!

Thus, I sowed the seeds of a whole different way of distribution for our company without the impersonal retail shopping experience. Product demonstration, instant customer feedback, immediate cash results, WOW! A whole new world opened up, and with utility patent in hand, I set out to spread my enthusiasm for the Flexi-clip directly to others. Without the willingness of my wife to allow me to follow this path, none of this would be here today.

Sure enough, they have responded! After seven successful years of experience at thousands of events across the nation we now have a wildly enthusiastic, return following. Other fantastic products, backed up by exceptional customer service have allowed for our company’s current success. Now, how to expand the number of people who know about our products, and allow them to profit while they share with others?

Lilla Rose is the answer.

With the proprietary Flexi-clip and an expanding line of related hair and accessory items, the opportunity is now available to all who step forward. We are grateful that you have made that step.

Lilla Rose is committed to giving you the opportunity and the framework to launch your own business and gain income and independence by offering unique, fun, functional products that women clamor for!

Our plan, with your help, is to broaden the availability of the Lilla Rose product line. What is in it for you?

You will gain the opportunity of marketing unique, proven products that by virtue of their designs, must be demonstrated. Our longer term goal for you will be for you to introduce consumable hair products into the ever expanding Lilla Rose line.

About Lilla Rose Lilla Rose Inc. Consultant Manual - May 2013

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Our Mission Share an opportunity for others to build a business that they would be proud to own and allow them to thrive personally.

Our Vision Contribute unique proprietary products that we are proud to share with friends and family.

In doing so, enable us to help you create financial freedom at whatever level you choose.

Our Guarantee We pledge to provide you with the best products, systems and support so that you may thrive in your business.

Quality, Service, Satisfaction Three words that are thrown around like a Frisbee: quality, service and satisfaction.

Companies yell it from the mountaintops telling anyone who won’t listen how important it is to their business. Yet practicing these three words are the key to why Lilla Rose represents such a successful business opportunity for so many people.

Quality, Lilla Rose maintains strict quality standards for all our products. Our goal is to help you create the “Lifetime Customer” committed to the Lilla Rose brand. And since everyone with hair or who knows someone with hair is a potential customer, your potential market is virtually limitless!

Service, Consultants provide personal, one-to-one representation at each group gathering or individual presentation. By sharing our products with friends, family and associates you have the opportunity to enhance their beauty and self esteem. In doing so, it can enable you to pursue your own goals of dramatically improving your personal lifestyle and creating solid financial security with a lucrative residual income. Sharing the opportunity with others through Relationship Marketing triggers the first step of geometric growth of your income. It provides you with the financial plan you can use to leverage your time and create a growing income stream that is the basis of true wealth. John Dorsey, the founder of Lilla Rose has designed an opportunity customized to create synergy with all your personal resources – and make your dreams come true. Lilla Rose Consultants care about their customers and give each one the individual service and understanding not often found in retail establishments.

Satisfaction, Lilla Rose is focused on its commitment to improve the quality of people’s lives, and our products are backed by a satisfaction guarantee. Every Consultant is aware of our policy and honors it with her customers. The satisfaction guarantee is a source of pride for Consultants because they can be confident of the high quality products they represent, and our price guarantee ensures that our customers get the best value possible.

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About Lilla Rose Lilla Rose Inc. Consultant Manual - May 2013

Lilla Rose Code of Ethics A company’s reputation is one of its most valuable assets and Lilla Rose always places a high priority on building the very finest reputation possible. We believe that our success depends on maintaining this image within the beauty industry, the direct selling world, before the public and between individual business people participating in the Lilla Rose Program. Moreover, we believe that our reputation directly affects the success of each of our Consultants. Lilla Rose will extend every effort to preserve and enhance this reputation for the good of everyone.

Our image cannot be built and maintained by the Home Office alone. Every Consultant that is part of the organization must assist. Therefore, Lilla Rose requires that all of its Consultants learn the following Code of Ethics: I will make the Golden Rule my basic principle for doing business at all times.

I will uphold the spirit as well as the Policies and Procedures as outlined in the Lilla Rose Policies and Procedures section of this business manual. Not only will I do what is legally right, but also that which is ethically correct.

I will conduct myself with dignity and truthfulness in order that I may protect the Lilla Rose image.

I will conduct my business in a manner that will command the respect of my sponsor, all my fellow Consultants and Lilla Rose.

I will present the Lilla Rose products and opportunity to my customers and prospects in a truthful and honest manner.

I will conduct my relationship with other Consultants in a fair and harmonious manner.

I will place great value on my own good name and on the good name of Lilla Rose. I will think of the company with loyalty while speaking of it with praise.

I will make no claims regarding products or the company that does not appear in current Lilla Rose literature. I will give clear and accurate information and avoid exaggerated statements.

I will use discretion in discussing competitive products and will not unduly disparage competitors or their products. I understand that I may be held personally liable for any claims that are not supported in the current Lilla Rose literature.

I am familiar with the Lilla Rose Satisfaction Guarantee and will make no other express or implied warranties for Lilla Rose products.

I will lead others by example - not words - for what I do is what I become.

I will believe in the company’s principles. I will carry an air of optimism, dispel ill temper with cheerfulness, kill doubt with strong conviction, and reduce friction with an agreeable personality.

The Code of Ethics reflects the Lilla Rose expectation that all Consultants will conduct their businesses with the highest level of integrity. While specific rules are detailed in our Policies and Procedures and may be subject to change from time to time, it is vital that each Consultant abides by the letter and the spirit of the Lilla Rose Code of Ethics.

About Lilla Rose Lilla Rose Inc. Consultant Manual - May 2013

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Lilla Rose University

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Lilla Rose University: Getting Started Lilla Rose Inc. Consultant Manual - May 2013

The first thing to remember is that you are not alone. Everyone at Lilla Rose whether they are in accounting, product and development, legal, manufacturing, shipping or computer systems is working for one goal - your success. Use your sponsor or regional director as a resource - don’t be afraid to ask questions or ask for help. The more you watch and listen, the more effective you’ll be.

The foundation of your business is direct sales - that is, presenting your product to an individual or group of customers, small groups at a workplace or other gathering. It makes common sense that the more showings you have, the more you can earn. There are ways, however, that you can maximize your efforts. The goal is to work smarter, not harder. Using your time efficiently and learning effective sales techniques can maximize the time you invest in your business, and maximize the results.

Overview of Selling Lilla Rose Products The ways of marketing the Lilla Rose Product line are almost unlimited. While we will suggest a few successful methods in this manual, remember that nearly any marketing idea you use will result in a certain measure of success. The one common denominator between all successful sales techniques is exposure of your product to the public. If you don’t show and talk about it, you can’t sell it. We have developed simple techniques that have put many Lilla Rose Consultants on the road to success. These will be detailed later.

As you begin to make retail sales you should remember that you are building a clientele of satisfied customers.

Every customer who begins using the products is a walking advertisement for you. Their friends and relatives will begin asking about the products. Whether your customer wants to or not, they will become a sales person for you.

Every sale could result in at least two more sales if you follow our suggestions. Referrals from satisfied customers are the best leads you can get. Always try to get 6 to 8 leads from each customer. Contact these leads in person if possible or you could mail literature and follow up with a phone call.

Always re-contact your customer within two weeks of their purchase in person or by telephone. Example: “Hello, Mrs. Jones. This is Barbara Johnson, your Lilla Rose Consultant. By now I know you have gotten lots of compliments on your hair clips. (Laugh) At least I hope you have! The reason I’m calling is to see if there are any more questions, or if I can be of help in any way. (Get response) Is there anyone who you have told about the Lilla Rose products that seemed interested?”

This procedure can result in additional sales and leads for you. Don’t be afraid to ask your customer to help you with more orders. Many would be happy to do this if they believe in the product and in you. This is also an excellent time to offer the business opportunity. Simply exposing the product to enough people and following the suggested product presentation in this manual can effectively establish a success pattern.

Getting Organized Starting your own business doesn’t mean that you have to set up an elaborate home office, but having a few business tools can help you stay organized.

First, find a space that you can keep a file or a file box, so you can keep all of your records in one place. Some of the things you will want to save are receipts of all of your business expenditures (many are tax deductible!), records of your Group Demonstrations given, and information about your customers. It’s a good idea to find a space beside a telephone to keep your business information, and always have a paper, pen and calendar handy by your phone.

You may want to consider opening a separate checking account for your Lilla Rose business. A separate credit card for business expenses is also useful in tracking your expenses come tax time.

You will want to keep a list of contacts, appointments, and potential shows, customer birthdays and other facts that will increase your business. Setting up a system early - and sticking to it - will pay big dividends as your business increases. There are lots of electronic organizers on the market, but a simple system of index cards in a box can be just as effective if you use it consistently.

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Second, you will want to carry business cards and catalogs or brochures wherever you go so that you can take advantage day-to-day encounters and turn them into business opportunities. All of the promotional literature that you give customers (e.g., catalogs, brochures, CD’s, etc) is available at the business office of your web site. When ordering you edit these materials online to include your name, address, phone number and email address.

Third, keep your supplies (demonstration materials, samples, etc.) together in one place. Many Consultants keep their supplies stocked in a tote bag or plastic container, so they are always ready.

You will receive enough marketing materials to help get you started… however you must order your business cards from your back office which you may want to do right away. You reorder all sales and marketing materials from the back office of your web site.

Getting Started Start With A Proper Attitude. One of the most rewarding aspects of working with Lilla Rose is that you have the opportunity to change peoples’ lives by helping them feel and look better, and possibly create a more beautiful life. If you maintain the attitude of helping them, you have it made in this business. Your intent will come across to the customer.

Use The Product. Remember, the last four letters in “ENTHUSIASM” stands for I AM SOLD MYSELF! Set Your Goals: Figure out and write down what you would like to accomplish with your Lilla Rose business. Is it money? Free time? The ability to quit your job? How much income you want to make? How many hours a week you are willing to commit to attain your goals?

Make A Contact & Prospect List. Try to keep a running list of at least 100 people at all times. What is the difference between a contact and a prospect? A contact is anyone you meet or know – do not pre-qualify anyone as interested or not interested in your products or business. A prospect is someone you have spoken to that expresses interest in learning more. See the contact/prospect list in the Forms & Tools section of this manual, as well as the convenient memory jogger.

Buy A Good Day Planner, PDA Or Calendar, And Get In The Habit Of Using It. One of the great benefits of owning a small business (which you now do) is the tremendous tax advantage you can create through business expenses.

By using your planner to keep simple daily records of expenses, mileage, and contracts, you will have all the documentation you need for a thorough set of tax records. You will also find that your planner will be a vital means of keeping track of appointments and prospects.

Get Enough Supplies To Get Under Way. You need some materials to get a successful start in our business, but you will want to keep expenses to a minimum. To get under way, we feel you should consider: Purchase Flexi hair clips in all sizes for demonstration Order extra product for sale and to use as samples for new customers Business Cards – Use our order form online.

Develop A Simple Method Of Presenting These And Use This Technique Over And Over. Some basic approaches that have been effective are:

Simply looking beautiful every day. Use Lilla Rose. People will ask you how and what you use?

Explain how the Lilla Rose products are just now become available through relationship marketing in the U.S.A. Describe the benefits of our products and give a few testimonials.

Use one simple method of asking for the sale with which you feel comfortable.

Keep Two Simple Rules In Mind To Make Business Profitable.

Make your business pay as you go. Keep your expenses under control until you’ve made a good beginning.

Whether you set a goal to spend 5, 10 or 20 hours a week on the business, commit yourself to consistent effort week after week. This is the single biggest difference between those who succeed and those who don’t.

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Enjoy Yourself. This is really a fun business, so enjoy the people you work with and let your efforts bring you the rewards. Avoid high-pressure closes. Lilla Rose products are easy to sell if you simply show, and demonstrate them.

The Lilla Rose brand name alone will create interest and possibly new orders from previous Lilla Rose customers.

Ask For Help Anytime You Need It. Lilla Rose is dedicated to your success. We will supply you with all the information and training you need to make your business what you want it to be. If you have a question that you can’t find the answer to in the training manual or from your sponsor - call or email the Lilla Rose Office. We want you to succeed!

Always Conduct Yourself with Integrity and Class & Adhere To the Lilla Rose Code of Ethics. As you work your Lilla Rose business, people see you as the Company itself. Everything you do reflects on every Lilla Rose Consultant in the country and on your own good name. Skip the short cuts, do the work proudly and be the example of integrity the business world rarely sees. Let’s make a difference together. We can make sure that everyone wins.

Your First 30 Days We are pleased that you are a part of the Lilla Rose family. Your decision provides you with an opportunity to take control of your financial destiny and make a difference in the lives of others.

Whether your goal is to make extra income or to develop a business and become financially independent, you’ll find that there is no better career to be involved in than helping others.

You are in business for yourself, not by yourself. You have the support and training most could only receive from a franchised business, but without the enormous up-front costs.

The First 48 Hours

Complete all necessary paper work Place your first order for your Sales Kit & Sales Aids Meet with your sponsor for a getting started meeting Read and review your Consultant Manual Go online and familiarize yourself with our website and the tools available there Prepare your Contact & Prospect List Schedule ongoing training with your Upline Set your business goals Find a quiet place in your home to set up your business area, with no distractions

The First 2 Weeks

Be a product of the product – develop your own testimonial Attend a Business Opportunity Meeting either online or live at our training center Attend the next official business training session Attend any other training sessions that are available Review all available training materials Order 3-way calling for your telephone or cell phone, it’s only a few dollars per month Open a business checking account and a business credit card to use exclusively for your new Lilla Rose business Order business cards Book your first two product presentations Contact your Upline to schedule field training with two prospects Purchase a day planner or time management system Continue to set your goals, review them and work towards achieving them

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Lilla Rose University Setting Your Goals

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Lilla Rose University: Setting Your Goals Lilla Rose Inc. Consultant Manual - May 2013

Now that you have a workplace set up and your Lilla Rose materials organized, take a moment to

reflect on why you are starting this business. Are you planning a special vacation? Need money to pay an extra bill?

Want to begin a new career? Whatever it is, it is important to write down your goals and reflect on them once in a while. How much extra money do you need a week? A month? What is your dream? A new car? A spectacular vacation? To send your child to whatever college they chose?

What would you have and do if money were no object in your life?

Your success in this business will happen with greater speed and ease when you are closely in touch with your ‘why’ for engaging in it. Most people experience success to the extent to which they have clearly defined and are passionate about their ‘why’ and can tap into that passion for building their business. Your ‘Why’ is an emotional ‘anchor’ that must be important enough and/or big enough in your life to cause you to take action to make it happen. Use the following worksheet to identify what goals and dreams you want to happen in your life that can be provided through building this business.

Finding out your - WHY? Before you answer these questions, recognize that your goals will change and be redefined. So for now, write down whatever you have come up with in the past or whatever comes to mind now and move on to the next section.

Recognize however, that the more clearly defined your goals are the more you have set yourself up to win, so make a commitment to the ongoing refinement of your goals.

In the next section, we will discuss how you can use your Lilla Rose business to achieve your goals, dreams and desires. You’ll find that not only is Lilla Rose a wonderful way to make new friends, socialize and play products, but it is also a wonderful way to reach your dreams and have fun doing it!

Don’t be afraid to dream, think big even if it seems impossible, and take a moment now to write down your dreams!

My Short Term Goals (example, pay off credit cards)

1. _____________________________________________________________________________________

2. _____________________________________________________________________________________

3. _____________________________________________________________________________________

My Long Term Goals (example, retire early)

1. _____________________________________________________________________________________

2. _____________________________________________________________________________________

3. _____________________________________________________________________________________

What are your special talents that can help make you a successful Consultant?

(Example, I love people and am a great leader!)

1. _____________________________________________________________________________________

2. _____________________________________________________________________________________

3. _____________________________________________________________________________________

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Commitments Now that you have determined what you want, you must decide what you are willing to commit to make it happen.

All businesses are built through commitment. You commit to bring money, time, personal skills, and contacts. Let’s go through the process of determining your commitment strategy so that you can construct a Success Plan.

Money You don’t need much money to begin, but you do need some. You will need to divide your resources into the following areas:

Start Up Investment:

Initial Inventory:

$__________________

Phone/Cell/Business Line:

$__________________

Fax Machine/Computer or other:

$__________________

Marketing Material (e.g., Business Cards):

$__________________

Other start-up expense(s):

$__________________

Sub Total $__________________

Monthly Costs:

Inventory Re-Order:

$__________________

Second Line with 3-way calling/Call waiting:

$__________________

Lead Development:

$__________________

Sub Total $__________________ Total $__________________

There are many tax benefits associated with having your own business. See a business accountant and/or ask your sponsor for more information about how these benefits can offset your business expenses.

Time How much time are you willing to commit to your business? Be realistic and be consistent. It doesn’t matter how fast you get there, slow and steady is usually best. Use your calendar to figure out the blocks of time you can commit to your business on a regular, weekly basis. Write down Lilla Rose on your calendar in the available time slots you will commit to your new business. Write down the total number of hours below.

My Weekly Time Commitment (total hours)_______________________________ My days/times of availability are: _______________________________________ I will call _______ people each week/day I will talk to _______ new contacts each week/day

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Personal Skills, Talent & Experience We all have skills, talents and experiences we will use to build this business. Taking this inventory is a way to boost your confidence in your ability to build this business and be prepared to let those you bring into the business know how you will help them succeed.

What are the key strengths you bring to your business? (Use separate sheet if needed) Example: “I like to teach people new things”

1. ______________________________________________________________________________________

2. ______________________________________________________________________________________

3. ______________________________________________________________________________________

In what areas are you willing to make breakthrough improvements? Example: “I’m going to learn to be more efficient and organized with my time”

1. ______________________________________________________________________________________

2. ______________________________________________________________________________________

3. ______________________________________________________________________________________

Commitments Summary: Your Plan to Win Now it’s time to tally up the resources and the commitments you are willing to invest in developing your Lilla Rose business. Go back to the previous pages and let’s summarize and tabulate your commitments.

Capital .................................. Total $

_________________________

Time..................................... Total hrs _________________________

Contacts each week...................... At least # _________________________

These numbers tell the story; they become the cornerstone of your business. They are the key to opening a whole new door of opportunity. Combine them with consistency of effort and you will achieve your goals. Now all you have to do is deepen your commitment to take these actions to produce results. You do this by making your commitment public.

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Developing Your Contact List One of the most common concerns of a new Consultant is “How can I possibly sell enough product to be successful?

I don’t know that many people!”

You will start with your circle of friends and acquaintances, and you will discover that each of them also has a circle, and this network can expand with exciting speed as you get started.

Your contact list is a list of your friends, family members, co-workers, and anyone else that may be a potential customer, referral source or recruit. As you are filling out your list keep some of these categories in mind---you may be surprised at how many people you know!

Create a list of names and phone numbers in a three-ring binder using copies of the Contact/Prospect List Worksheet in the Appendix. You will compose this list of contacts from your address book, Rolodex, Christmas or Holiday card list or any other lists you may have. Use the Memory Jogger in the Appendix to remind you of all the people you know. You may not know their name; it’s okay to describe them as the “lady who works at my dry cleaners.” Even if you don’t have their phone number right at that moment put their name on the list. Many people can come up with 200-300 names if they complete this exercise.

Out of each 100 names, at least 10-15 on average is looking for a way to earn some extra income or may end up simply using the products after you share the information with them. You won’t necessarily know who those 10-15 people are, so choose not to prejudge them.

For example, you may think ‘Charlie’ is so successful, as a lawyer she makes over $200,000 a year, but what you don’t know is that Charlie feels trapped, she has to keep working to afford the lifestyle she wants for her family and he has little time freedom to spend with them. Charlie is a perfect candidate for the Lilla Rose business. She has great contacts, likes to take care of herself personally, loves quality and is looking for alternatives. Instead of “voting” on whether what you have is anyone on your list, simply notify them all and allow the interested ones to identify themselves or refer you to others. The only pre-judging you can do is be sure to first call any people you know who are looking for another way to earn income or live a more beautiful life!

If you think your list is short, don’t be discouraged. Even if you have 5-10 people, that’s enough for you to invite to your business grand opening, and to launch your business. You’ll meet more and more people as you progress.

For this exercise you will need the contact/prospect forms and a pencil or pen. Remember to list everyone who comes to mind. Do not censor yourself! Don’t worry if you don’t have all the information, you can add it later. Use the forms and just write people’s names or even “woman who delivers my mail” if you don’t know their names in each line as you think of them.

List all the people in your immediate family including spouse, children, siblings, and parents.

List the people in your extended family including aunts, uncles, cousins, nieces, nephews, and grandparents and in-laws

List your neighbors, friends and co-workers

List your spouse’s friends and co-workers

List members who belong to the same group (PTA, Literary League, Fraternity, Sorority, Church, Bowling Team etc.) that you do.

List people you have met through your children, teachers, coaches, daycare professionals.

Get out your Christmas card list, wedding invitation list, any address books you may have.

Find your old yearbook. Are there people listed whom you can contact? If so, write down their names.

Ask people for referrals of those who might like to try our product, add their names to the list.

List people with whom you have a professional relationship. See Memory Jogger on opposite page.

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Memory Jogger: Use the below list to help remind you of all the possible contacts in your daily life.

Accountant

Clients/Customers

Dentist

Gardener

Hairdresser

Landlord

Mail Carrier

Pet Groomer

Stock Broker

Tenants Waitresses

Attorney Contractor Doctors Grocer Insurance Salesperson Landscaper Mechanic Pool Cleaner Tax Consultant Therapist Waiters

Coaches Daycare Provider Exercise Instructor Friends at the Gym Interior Decorator Loan Officer Neighbors Sales People Teacher Veterinarian

Completing your contact list can have another benefit. When you are booking presentations or coaching a new Consultant, you are showing her how to do basically what you have just done - listing people you know that can potentially be customers. You can use this experience to help you book presentations and overcome objections.

This will be covered the “Scheduling” section of your business guide.

The Notification Principle The purpose of approaching your contacts is not to ‘convince’ any of these people to join you in the business. You want to simply notify them by playing the compelling, overview message we provide you. Let them know you have started your own part-time, home-based business and you want them to know what you are doing. If you were opening for example, a retail shoe store, wouldn’t you notify everyone you know? The same principle applies here.

In the process of notifying your contacts you will run across some people who will naturally be interested in an income opportunity or our products. The key is to let those people select themselves by listening to the 3-minute sizzle call. There’s no need for you to convince or sell anyone. You will be most effective when your intention is to simply notify with no agenda. It is okay to call the people first whom you believe would benefit from the business or who would be an asset to your team. Just remember to enter the conversation with no objective other than to expose them to what you have.

Schedule your first block of telephone time (preferably two hours) and begin notifying your contacts about your business. Practice a 30 second “commercial” or introduction to your new business and Lilla Rose. Coordinate this with your sponsor or Upline so they can be available to coach you and answer your questions about the process.

Write the dates here: Date to begin notifying contacts: ____________________ Ideally, you will want to work in 1-2 hour blocks of time. A good first month goal might be to turn 20 contacts into prospects and sponsor your first 5 Consultants.

Number of contacts I will notify each week ____________

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Lilla Rose University The “Get Ready, Get Set, Go!” Business Plan

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Lilla Rose University: Ready, Set, Go! Lilla Rose Inc. Consultant Manual - May 2013

The “Get Ready, Get Set, Go!” Business Plan is simply a logical approach to your business that will enhance your chances of success. Of course, nobody can guarantee your success, but following these steps will help you order your business life and help you get started on the right foot. This training is the basis of the Lilla Rose business, and is the foundation upon which the training programs are based.

Just like an Olympic runner looking to win the gold medal, you have a better chance for success if you follow the philosophy of “Get Ready, Get Set, Go!” “Get Ready” simply means that you are on the line and prepared to run.

In network marketing that means learning the business principles. “Get Set” simply means you are in position and totally focused on your objective. For you that objective is achieving success and you get “Set” by preparing to share the opportunity with others. Finally, “Go!” is when you spring into action and accomplish what the other steps have prepared you to do, which for you will be moving forward and putting your plan into motion. Let’s take a closer look at how this philosophy works in your business.

Get Ready When you are ready, you have prepared yourself to conduct business. You know what your products are; you have used enough of the product to know that you can proudly represent them. You have a clear idea of what you have to do to get paid the kind of money you want to make. You are set up to handle customer communications and questions.

Of course, it is possible to get stuck on “Get Ready.” While you want to be fully prepared to do business you should also keep in mind that you cannot make your business run on preparation alone. Eventually you must DO something to recover your startup costs and turn a profit. All this preparation is aimed at preparing yourself to do the right thing at the right time in the right way to build your business.

Use the following as a checklist of items that will help you get “Ready.”

I have read about and understand the Lilla Rose products.

I know enough about Lilla Rose products that I can tell others general information about them and know where to get material for complete explanations.

I am a product user myself and can speak enthusiastically about them.

I have read and understand the Lilla Rose Compensation Plan.

I have read and understand the Lilla Rose Policies and Procedures.

I have enough supplies to start my business.

I am prepared to deal with the tax realities of having my own business.

I have done a “check up from the neck up” and am mentally prepared to conduct business.

I have set reasonable activity goals that should get me the results I want.

I have notified my Upline that I am a serious businessperson. I recognize that I have hired them, not the other way around. My Upline works for me!

I have scheduled a Business Grand Opening and have completed my guest list.

I have contacted at least three Upline Consultants who have agreed to help me get started.

These Upline Consultants are: Name

Phone

Note

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Get Set Getting “Set” requires you to focus your attention on an objective or goals and not be distracted from that focus.

In network marketing this is typically done by creating a list of people who you think might be interested in your products or in the business opportunity.

In network marketing, focus is a little more than developing a list of friends and Consultants. It really means to decide the techniques you will use when you approach people on your list, as well as a system to track their progress towards a sale or enrolling them as a Consultant.

You will soon discover that there are three kinds of markets: warm, cold and pre-sold. Your warm market is made up of people you know and who may be influenced by what you do or say. Your cold market is made up of everybody else in the world.

Obviously, your cold market is by far the largest. If you plan to be successful in your Lilla Rose business, you’ll need to have a way to meet and influence your cold market. Fortunately, most women already use these products. Your job is to be able to show a stranger why he or she would be better off using Lilla Rose products.

How do you approach your cold market? There are a number of techniques, but they all have the underlying principles of first being in love with your product and proud to represent it and second learning to care enough about people, even strangers, that you are willing to make yourself uncomfortable to be of service to them. After all, if they don’t know about Lilla Rose products and you tell them about them, aren’t you really doing them a favor? And, how could somebody doing a favor offend anybody? Let’s talk about some of the strategies you might use in approaching what is now your cold market. Remember, you are not yet in the “Go!” stage of this business approach, but are looking at these possibilities (along with others suggested by your Upline or derived by you) and planning which of them you feel comfortable about starting with.

Booths at fairs, bazaars, and malls: This is another technique that has been successfully used by Lilla Rose Consultants. The trick to setting up a booth is to make it attractive, displaying enough information to attract attention and arouse curiosity. People will stop and ask, then you have the right to share your information with them in detail. Remember to clear your booth design and event registration with the home office.

Another principle in setting up a booth is to make it visually interesting. This means use some pictures, color, and various sizes and styles of text. Also, when you work a booth you must use body language that indicates you are glad you are there and are willing and able to field questions. This is not the place to read a book, do homework, or lounge invisibly in the background. If you choose this method for contacting your cold market, remember you are on duty when at the booth.

Referrals: Always ask for referrals, and follow up on them. Make it a practice to never leave someone with whom you have discussed business without asking for a referral. This does two things. First, it expands your warm market by giving you an introduction to people in your cold market. Second, it causes the prospect to think about their warm market and think that they may have enough contacts to feel comfortable about starting a Lilla Rose business of their own.

What are some of your ideas? Add them here.

!

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All Consultant marketing must comply with the Retail & Advertising Policies section of this manual.

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Go! Up to this point you have been preparing to contact people. First, making sure you’re well versed in the company and its products and services and second, defining whom you want to share the information with and how you want to approach them. The “Get Ready” and “Get Set” portions of this plan should have taken you no more than a week or two at the most. You can’t make any money in this business, or help anybody else, unless you act. That is the purpose of “Go!” Your first few contacts are absolutely critical. In the “Get Ready” phase of this plan you put your Upline on notice that you are a serious player. They now work for you. They didn’t hire you - you hired them. It is time to put them to work. If you don’t know how to set appointments, or are not confident doing so, get with them and have them come along and give you some “on the job training.” If you don’t know how to most effectively present products, bring them along with you to your appointments. If you don’t know how to effectively screen prospects, have them teach you. That is what they are committed to do, and that is what you are committing to do for the people you enroll in Lilla Rose. This is a people-helping-people business.

Let’s talk about some of the concepts behind the “Go!” portion of your plan.

Set activity goals. When you set activity goals you’re setting goals on something you can control.

Lilla Rose is strong enough that if you get in front of the people you will have sales. Statistically, there is no way around that.

Develop teams with your Upline and Downline (or sideline, for that matter!). Businesses require a variety of skills to be successful. Just as nobody is expected to have all the skills needed to build a booming business all by themselves using more traditional marketing methods, very few people inherently have all the skills required to put together a network marketing organization by themselves. You may be a good recruiter but not so good at teaching product use. If you are associated with someone in Lilla Rose who has the opposite skill set, get together and work out an equitable deal to help one another. And make sure you communicate clearly with each other!

Track your performance, identify ways to improve, and make self-improvement a daily part of your life. If you have no way to track your performance of goals or a desire to improve you may as well not get started. Many network marketers (even some who gain a level of success) seem to miss the point entirely. They think it is all about money. It isn’t. Network marketing is about helping people and improving you. The money will follow. Long-term success can’t be built on a flimsy product line or compensation plan that abuses customers and Consultants. Neither can it be built on weak personal character.

Successful Consultants do what unsuccessful Consultants are unwilling to do. Successful Lilla Rose Consultants plan their days with activities that meet long-term goals... and then they work their plan. It is really pretty simple. The hard part is the discipline to do it.

Make it fun. You are a volunteer. If it isn’t fun, it probably isn’t worth doing. You have a lot of other things you can do with your life. While it may sound like a paradox, you should work hard at making it fun.

We at Lilla Rose are grateful for your willing participation in our mission to improve people’s lives. We want to be a positive addition to your life. We can only do that if you do your best to be prepared, work hard, and have fun.

The rest of this manual contains detailed information that you need to get familiar with as the “Ready” part of your “Get Ready, Get Set, Go!” business plan. It’s time to roll up your sleeves and get to work!

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Lilla Rose University Your Grand Opening

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Lilla Rose University: Grand Opening Lilla Rose Inc. Consultant Manual - May 2013

We have found that one of the most effective beginnings is to have a “Grand Opening” to launch

your new business. This can be a great way to introduce your family and friends to the company you’ve chosen to be a part of, and answer any questions they might have. It is a wonderful environment where you can feel comfortable and practice your new skills. As an enroller you will want to hold this event with your new Consultant if possible. As a new Consultant, it is good to have an Upline there to help you and to answer questions. Use your contact list to invite everyone you know. You never know who will show up. This has historically been one of the most successful events for our Consultants. It is a great way to launch your business!

An Overview of the Sponsor Objectives:

Help the Consultant launch their business with support from their warm market (friends, neighbors, & relatives).

Use your sales ability to help build the Consultant’s personal self-esteem and credibility with their customers.

Help get the Consultant “in the money” early through retail sales.

Get the Consultant on the track to success by helping them schedule future presentations to gain referral business.

The Consultant will gain product knowledge, presentation and communication skills, and sales techniques.

This is a training program.

Preparation for the Grand Opening: Help the new Consultant schedule a mutually agreed upon date, time, and location.

Together the sponsor or enroller and the Consultant should develop a list of people to invite. It is best to invite at least 30 people (to ensure an attendance of about 10).

Invitations requesting RSVP need to be mailed ten days to two weeks before the event. Note that the Grand Opening will last one and a half to two hours.

It is okay to send emails; however, a phone call should also be made to all invited. Nothing replaces a personal touch.

Follow-up calls should be made three days before the event to all people who did not RSVP. The Consultants’ Responsibility:

Send invitations and follow-up with phone calls.

Provide seating for all attendees, an area for displaying products, and prepare a very simple light snack.

Confirm with the sponsor the number of confirmed guests.

The Consultant should be free of all distractions, turn on the answering machine, ask someone to assist in watching the children in another area of the home, etc.

Have all necessary sales aides available.

Have a pen and notebook to list questions that arise throughout the Grand Opening.

Start and end the Grand Opening on time.

Dress professionally.

The Sponsors’ Responsibility: Arrive one-half hour early.

Ask the Consultant to provide a little information about each guest that confirmed.

Bring accessories that will make the display table very inviting, such as tablecloth or sheet, silk flowers, boxes for elevating the products, etc.

Bring a company video and some music - play them as guests arrive.

Start and end the Grand Opening on time.

Facilitate the event and support the new Consultant.

Assist the Consultant by inputting orders online and scheduling consultations and presentations.

Encourage and motivate the Consultant.

Dress professionally.

Wear Lilla Rose products.

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Procedures of the Business Grand Opening: Sponsor and Consultant greet guests at the door and invite them to have a beverage.

If the Consultant is comfortable, have them stand in front of the guests, thank them for coming, and introduce the Sponsor. Mention sponsor’s name, title, and any of the following that applies and gives credibility; any awards earned with Lilla Rose or in the industry, how long she has been a Consultant and any other information.

Sponsor thanks the Consultant for being invited to their home to share Lilla Rose with their closest friends & family.

Sponsor gives a little more background on the company based on personal experience if possible. Examples:

I have been to the corporate office...

I work with a great group of professional people and...

Sponsor asks what they know about Lilla Rose and how many have bought or heard about any of their products.

Sponsor asks them to write on a piece of paper (to be provided) one or more reasons why they believe the Consultant will be successful in this business. They should list skills or abilities she has that can be utilized in this business. Ask each guest to read aloud his or her comments. It is important to ask them to speak to the Consultant, not you. Give prior notice to the Consultant that when she receives a compliment to just say “thank you” not shake or hang her head. What this activity does is give the Consultant confidence to move forward with the business, develop her self-confidence and reconfirm to the participants that she does have what it takes to make it in the business and that she made a positive decision.

Sponsor asks guests to pass their paper to the Consultant. (We want her to refer to these notes if she ever gets discouraged.)

Sponsor holds up a product, and “romances” it by sharing a little about its unique qualities, and uses. Pass the products around as you show them and let everyone see and feel them. At the end of the demonstration the Sponsor closes the evening in one of two proven and successful ways.

Group Close Option 1: Sponsor says: “Now that you understand more of what Lilla Rose is about, I am sure you know why (name of Consultant) has become part of our team. She knows that she is in business for herself, but not by herself. I am here to support her and she knows that you are all behind her; otherwise, you would not be here tonight.

Now what we would like to know is how you plan to continue supporting her. You may wish to purchase products tonight, schedule an individual consultation, schedule a show to be held in your home where you invite a few people in to see our product line, or you may want to learn more about our company and how to build your own home-based business.”

Next, go around the room and ask each person how they plan to support the Consultant. When they hear each person verbalizing their commitment to the new Consultant, most people will do one of the above. If one person does says they cannot make a commitment at this time tell them that you certainly understand and that (name of Consultant) will be in touch with them in a few months to see if they would like to get together then. Also thank her for coming today because she provided great moral support for (name of Consultant). Do not embarrass anyone.

Thank them all for coming and being a part of (name of Consultant’s) Grand Opening. Also, give the Consultant the opportunity to thank them.

The Sponsor then states that she will meet with each person placing an order individually to help them complete the order form and answer any questions they may have. The Sponsor should have catalogs, sales receipts, a calculator and all other necessary materials in an adjoining room.

The Consultant should serve refreshments and meet with anyone wishing to schedule consultations or shows or who wants more information on the opportunity.

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Lilla Rose University: Grand Opening Lilla Rose Inc. Consultant Manual - May 2013

Group Close Option 2: The second option is to announce the ways they may support the Consultant and invite them to think about which method is best for them. The Sponsor then lets the guests know that she would like to meet with them individually to answer any questions they may have and discuss how they can support the Consultant. The new Consultant should serve the refreshments and be with her guests.

When the Sponsor and the new Consultant meets with each guest, they should take orders and share a little about the opportunity with those that would like more information. They should direct those that really like the product to have a personal consultation or hold a group event.

After all the guests have left, conduct a wrap up of the evening and calculate sales, and number of presentations and consultations scheduled. Also, discuss any potential sponsoring opportunities.

Assist the Consultant in completing their online order form for the sales that evening. Be sure there are dates in the planner for all appointments set. Ask if there are any questions about anything that happened during the Grand Opening.

Repeat the affirmations that the guests gave the Consultant.

Set goals for the next week and schedule a follow-up meeting (on the phone or in person.)

The Sponsor should offer to assist the Consultant with clean up before departing On the way home the Sponsor should evaluate the evening and he/her performance. What was learned, what can be improved, and what were the greatest areas of success.

The Sponsor should call the following morning and congratulate the Consultant on a successful launch of her business. Discuss future strategy and let the Consultant know that you are available for assistance.

The sponsor should try to arrange for the excited Consultant to meet with and provide assistance to with a few more experienced Consultants in their shows and business consultations. Select the best of the best – this is a great training field. (There is no compensation involved for the new Consultant, but seeing how other experienced Consultants give presentations and handle objections, etc.

Increased training time can directly affect future commissions.)

The Grand Opening is a very powerful training tool that will truly make a difference in the immediate financial rewards of the new Consultant and, more importantly, the emotional support new Consultants will feel.

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Lilla Rose University The Retail Opportunity

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Lilla Rose University: Retail Opportunity Lilla Rose Inc. Consultant Manual - May 2013

Building success in Lilla Rose begins with retail sales. As your business grows, you will be

expanding your opportunity by sponsoring other people into Lilla Rose. However, you must first learn the fundamentals of the business yourself.

Retail sales are the foundation of every successful Lilla Rose business. Not only do they generate immediate earnings, but ultimately your retail sales efforts will be your most important source for sponsoring new Consultants.

On the following pages, you will read detailed explanations on how to build a successful retail business.

Study Sales Techniques & Learn the Products Your first step in learning the retail business should be to attend a Lilla Rose Consultant Orientation with your sponsor. The meeting covers information about products, marketing programs, how to make retail sales, follow-up, goal setting, the appropriate use of sales aids and how to close the sale. Your local organization will have planned meetings scheduled on a regular basis. Plan to attend the next scheduled meeting.

In addition, arrange to accompany your sponsor on a Lilla Rose one-on-one or group presentation or set in on their conference calls. By personally observing the techniques used, you will gain firsthand knowledge of how this aspect of the business functions. You will see how an experienced business person prepares and presents the products, answers questions, closes the sale, writes orders, obtains referrals, etc. While your own presentation may differ from that of your sponsor’s, just seeing someone using these techniques and selling products will be an invaluable experience for you.

Set Sales Goals Setting sales goals is an essential procedure for every businessperson regardless of whether you are just starting out or are an experienced professional. Setting goals will do three things for your business.

1. Goals Keep You Aware Of Your Priorities.

Because retail sales and sponsoring others who create retails sales is so important to your business, you must commit yourself to reach a certain minimum production every week and every month. Only by doing so will your business achieve sustained growth and your income attains a level of stability.

2. Goals Help You Maintain A Consistent Effort.

It is particularly important when you are first starting out to know what you want to accomplish so that you can measure your progress. At first, retailing products and sponsoring others may seem difficult for you. You may be apprehensive and nervous. You may not know your products and sales techniques thoroughly. Specific sales goals will help you go out each day and make the effort necessary to get your business established.

3. Set realistic sales goals.

Only you know what a realistic goal is for you. Your goal might be $50.00 or $500 each week; depending on how much time you have to devote to your business. And once you have set a goal, do you’re very best to reach it, even if it means working extra hours and weekends to do so. Goals have to be taken seriously, just as your Lilla Rose business must be taken seriously if you plan to succeed.

If you plan to work your business 10 hours a week, then give it a solid 10 hours. By setting goals you will have a yardstick with which to measure your progress. Above all else, stick to it and don’t quit!

Keep on keeping on!

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Finding Prospects & Making Appointments.

Most people begin their retail efforts and sponsoring activities by contacting the people they know best and see frequently. These people include friends, relatives, business or professional colleagues, members of clubs, church groups, associations, etc.

Friends and acquaintances can help you get your business off to a good start. They are people that you already know with whom you can speak comfortably, familiarly, and who will be more supportive as you begin your efforts.

Some new Lilla Rose Consultants hesitate to approach personal acquaintances just because they are friends or relatives. They do not want to put their friends “on the spot”. Such hesitation is misplaced. Lilla Rose products are of the highest quality, are needed by almost everyone, and are all backed by a satisfaction guarantee. By introducing your friends to these products, you are doing them a favor. They will appreciate the enhanced benefits and superior quality of the products and the convenience of buying from you, someone they know who will give them good service.

As you begin your retail business, make these acquaintances your target audience. Use the Contact & Prospect List in the Forms & Tools section of this manual and continue by filling in the names of everyone you know. Begin with your close friends and relatives and work on down the list writing in the names of colleagues, business consultants and fellow club members. List all the people you see during the course of your day: the clerk at the dry cleaners, the plumber, parking lot attendant, waitress, your insurance man, etc. Even if you don’t know someone by name, indicate who he or she is on your list.

Sponsoring - Continuing the Process The fastest way to build an organization is to sponsor others. This doesn’t mean becoming a “sponsoring machine” that “churns out converts”… it means finding people to work with on your first level. That’s it. Never stop first-level activity. As you sponsor others and teach them to do the same retail merchandising you are doing, you build the business of your dreams. Now you can begin supporting your level one to sponsor a strong first level of their own!

Our compensation plan supports this activity with our Matching Bonus incentive through our Placement-Sponsor Relationship. This kind of caring, responsible sponsoring is one key to success.

Question: Who are you able to sponsor?

Answer: Anyone!

You can sponsor anyone. Just give people a chance to discover Lilla Rose with your help, then allow them to make a decision for themselves. Don’t prejudge. Don’t eliminate a person because she is too busy or because she doesn’t appear to be “the type.” It is impossible to recognize those who will work the business with real enthusiasm and those who will not. Remember: You never know who your “stars” are going to be. It’s exciting to know that your brightest star may be the very next person you sponsor!

Question: Who do you know?

Answer: Everyone you know is a potential member of your Lilla Rose network.

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You know more people than you might think. Who’s who in Your Life?

Go to and use the Memory Jogger in the forms section of this manual. Remember, don’t eliminate anyone. Give everyone a chance to share in Lilla Rose. Keep in mind, too, that not all people currently in the network said “yes” to opportunity the first time around. And if you do receive “no” for an answer, do not take it as a personal rejection. Some people would rather spend their time doing something else.

Effective Approaches Now that you have lists of names, you can begin approaching people about the Lilla Rose Opportunity. Remember that simple, personal, natural approaches are the most effective. Find an approach with which you feel comfortable.

Here are some examples: Share a copy of the product or opportunity brochure with someone you meet or know. They both provide colorful, useful explanations of why you are excited and what you are excited about.

Three-Way or Conference Calling with your Sponsor is easy and effective. Once again, it gives you the opportunity to make a simple introduction of your opportunity to “someone who knows,” then let the “expert” do the selling!

Hold an Opportunity Meeting at your home, or invite friends to an Opportunity Meeting at your sponsor’s home.

You’ll think of even better ways yourself! The important thing is to get started right away sharing the Products and the Opportunity of Lilla Rose!

Remember the three methods to any successful approach: Follow-Up, Follow-Up, and FOLLOW-UP! Setting Up Appointments Next, start at the top of your “Top 20 List” and contact every person on it. If your primary interest in this person is simply to retail our products; you could easily do so in a short and informal meeting. However, if this individual is a prospect and someone you would like to sponsor into your Lilla Rose business, your goal should be to set an appointment for a time and place to meet (usually the prospect’s home or work place). In this way, you will both be able to give the presentation the time it deserves.

When you are setting up an appointment whether it is in person or over the telephone, there are a number of things to remember.

Keep In Mind the Purpose of Your Call You are making a business, not a social call so keep the conversation on target. Small talk is important for breaking the ice and developing a friendly rapport, but remember that your objective is to set up a business appointment.

Don’t waste time in idle conversation, set up the appointment and then go on to the next prospect.

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Avoid Questions That Can Be Answered With A “Yes” Or “No”.

Don’t ask, “Can we meet on Thursday evening a 6:00 PM?” Instead, offer the customer choices: “Is Tuesday or Thursday better for you?” “Would you like to meet in the morning or evening?” If an alternative time is suggested, fine, but always try to give the prospect a role in setting up the appointment.

In developing your technique for obtaining appointments, you will probably find it helpful to use a script that will help you cover the desired points in the proper order. The following is a suggested telephone script for use as a model in developing your own. A similar script can be written and memorized for contacting prospects in person.

“Hello, Sally. This is Jill, how are you today?” (Don’t spend too much time chatting, get to the business at hand.)

“Listen, I have just found the greatest opportunity and I am really excited about it. Have you ever heard about Lilla Rose products?”

Everyone that hears about our products will be curious. Lilla Rose is a fantastic company that is committed to providing products that will enhance lives.

I’m calling you today because I knew that you would want to hear about it. Of course, I can’t really tell you very much about the products over the phone. I’d much rather show them to you, bring you some samples and leave some information for you to look at. Which would be more convenient for you, the first part of the week or the last part? Okay, then which is better for you, before lunch or after? How about Wednesday at 10:00? Fine, I’ll see you then.”

Presenting & Selling One-On-One Once you’ve set up your appointments, you are ready to begin selling products and building your business. In general, there are three proven techniques for presenting and selling Lilla Rose products: 1. Sharing personal product knowledge through one-on-one retailing presentations.

2. A conference call to review the products on the Lilla Rose website.

3. The group meeting Personal Product Knowledge The best way for you to convince others of the benefits of the products is to be convinced yourself. Nothing convinces better than personal experience.

In order for you to be knowledgeable, convincing, and enthusiastic about Lilla Rose products, you and your family should use as many of the products personally as possible. In doing so, you will discover just how much better you feel and look to everyone - a great feeling itself. More importantly, you will believe in what you are selling. The enthusiasm and confidence you have in the products will be your most persuasive retailing technique... because nothing sells better than honest enthusiasm.

Make All Your Statements Positive Avoid negative or indifferent methods of expressing your ideas.

Assess Your Style of Talking Is it expressive, or have you hidden your feelings behind a monotone? In your presentation, try to let your voice express the enthusiasm you feel for your products and for your business. If your voice sounds positive and you act interested, your customer will hear it and will become positive and interested too.

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Learn To Listen To Your Customers The good salesperson knows that the best retailing presentation is a two-way dialogue. Give your customers the opportunity to respond to what you have said and then carefully listen. Your customers will give you useful information about how they think and feel. They will tell you what they believe is important and which benefits they value most.

Learn to respond to what you are hearing by adapting your presentation to their specific needs and interests.

In developing your presentation, remember that you are selling yourself and the products you provide. Indicate to your customers that you are there to help them and to offer the same peace of mind that you now have. Let them know that you are a skilled and informative businessperson, that you know your products and how to use them, and that the service you offer isn’t available anywhere else.

Practice Your Presentation Use a tape recorder or video recorder to record your presentation. Present your products in front of a mirror or before your spouse or a friend. Develop your techniques for making the presentation smoothly, comfortably and easily. It’s especially important when you are first starting out to practice it thoroughly. This will increase the effectiveness of your presentation and add to your confidence.

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Lilla Rose University Group Demonstrations

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Lilla Rose University: Group Demonstrations Lilla Rose Inc. Consultant Manual - May 2013

The best way to start holding group demonstrations is by holding your Business Grand Opening.

Once you have held your Grand Opening with your sponsor/trainer, you can go on to give regular Group Demonstrations. The following is an outline of how a typical demonstration is conducted. You will find ideas for different types of Group Demonstrations and different procedures for Group Demonstrations in “the three S’s” section of the guide. (Selling, scheduling and sponsoring.)

The advantages of holding a presentation are: You can reach several customers at one time Group Demonstrations usually take place in the home setting – a comfortable setting for customers to see and use the Lilla Rose products Group Demonstrations are easy to prepare for, easy to schedule, and fun to do Group Demonstrations are one of your greatest sources of new Consultants Be Your Own Best Customer Your best advertising is yourself. Simply by using our products every day and talking about how wonderful they are, you will be sharing your business with everyone you meet. You should always be ready to “show and tell” about your products and your business, which helps you find new Consultants and schedule presentations.

Continual Training In preparation for your future success, you should know what sales and training aids are available, and how to use them. Take advantage of all available sales meetings or training functions. The shared enthusiasm and support you receive from attending these meetings is a key to your personal growth and part of the formula of your future success. Motivational and educational tapes and books can also keep your attitude “up”. Look to your leaders for advice. Pick their brains. Look for those small and large diamonds of knowledge that have helped them create their own success. As the saying goes as it pertains to working with your sales organization, “If you are down, call up! If you are up, call down!”

A “Do you?” list to keep in mind You are in the business of sharing products and an opportunity. So, how do you stay in business and find success?

You get bookings. Some of them will fall in your lap. There are those people who love to have in home shows or love looking and feeling pampered and beautiful. MOST of them will have to be asked, encouraged, and sold on the idea. This is where learning your business and doing it in a professional manner will separate you from the rest.

Part of learning your business is learning how to ask in such a way that it is THEIR idea, not yours. First of all, do you do these things? ( Those that apply) Do you give the impression you are busy and have a lot of other shows? No one likes to be the only one, and when you are in demand everyone will want you.

Do you drop booking seeds when you talk to people? Like, “Holidays are coming up”, or “who do you know that would have loved to be here tonight”.

Do you keep your eyes and ears open for booking signals? Like, the guest that wanted to buy more than they felt they could afford.

Do you ask questions so you can learn what a person wants, needs and desires?

Do you make the effort to meet and visit with all guests before the show starts (making friends, not customers)?

Do you call guests after the show to follow up? Like, checking to be sure they are happy with their purchase, or just to say Thank You. Lilla Rose University: Group Demonstrations Lilla Rose Inc. Consultant Manual - May 2013

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Do you send Thank You notes to everyone?

Do you stop at the first “No”, or do you attempt to overcome the objection?

Do you encourage referrals?

When you leave the showing do you feel you’ve done everything you can to get as many bookings as possible?

Do you go home and review the outcome of each show? Determining how you can make it even better the next time, and planning your follow up to build on this show.

How To Hold An Lilla Rose Demonstration

Twelve Steps to A Success Demonstration: 1.

2.

3.

4.

5.

6.

7.

Make sure you have on hand the hair clip products in all sizes Build the guest list – the more names there are, the better the attendance Use choice words that will entice your invitees to attend If you have friends or acquaintances to add to the attendance, invite them.

Distribute invitations so the guests have the exact time and location of the show.

Follow up by phone with all people that have been invited Request names of additional people to invite, or people that might be interested in hosting a demonstration of their own 8. Keep the names of those who cannot attend, for they could well be your next prospects to call on.

9. Be early 10. Be prepared 11. Make it fun 12. Remember to book future Group Demonstrations and ask for referrals!

Items needed for a demonstration Make sure that everything is sparkling clean. Two mirrors are very important. Sharpen pencils or make sure that pens write properly and double-check to make sure you have sufficient literature. More is better than less.

Personal Preparation Nice packaging accounts for a large part of a sale. You should package yourself well. How you look is as important as how you act. Dress for success. You must look the part. Remember you are in business for yourself and you are a walking billboard for your business. The guests want to feel they are dealing with a professional, credible person of integrity. First impressions count. It also lends credibility to your business. If you are casual or sloppy, it makes you look as if you don’t care.

When you arrive at your show looking your very best, your self-confidence will increase, which definitely increases your sales. In order to look your best at all times, be sure to have: Well-pressed and clean attire and shoes that reflect good taste.

Carefully applied make-up, but do not over do.

Well groomed hair. If you wear cologne, make sure it is not a heavy scent.

Cleanliness, including deodorant & mouthwash. If you smoke, carry breath mints on you. Remember, bad breath is a turn off. Never, never, never smoke at an event. Keep smoking a private indulgence.

Clean hands and clean fingernails. If polish is worn, it should not be chipped.

Wear a nametag so no one will forget your name.

Before going out your door, check yourself in a full-length mirror. Check how you stand and how you sit. As you go out your door, be grateful for the challenges of the day. Put a smile on your face and the world will smile back.

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A Successful Demonstration As you get more experienced in giving Lilla Rose Group Demonstrations, you will feel more confident and comfortable, and you will find ways to customize your presentation to fit your personality. While you are gaining this experience, we highly recommend that you follow formats that have been proven to be successful. There are essential elements to a successful show, and items that you must cover to give a proper presentation. If you feel that you may forget something critical, you may want to put key points on index cards and refer to them during the demonstration. It is much more natural and professional, however, to speak without using a written outline.

Before your first show, you should read and practice your opening talk often enough to have the key points memorized. Enlist your immediate family to listen and give you feedback on you presentation, practice in front of a mirror, or ask your sponsor to help. A confident and natural opening presentation sets the tone for the whole show - there’s no such thing as too much practice.

6 Steps to an Lilla Rose Demonstration 1. Arrival and Preparation Review of the guest list for future shows and sponsoring possibilities Review possibilities of outside orders, get any pre-sale information Set up of the display, supplies and products 2 Greet guests and Opening Talk Who you are About Lilla Rose The Lilla Rose advantage—pricing, reputation, guarantees Start with ice-breaker questions Encourage the guests to introduce themselves 3 Show the Products!

Present product selection, highlighting one or more ways to use it Demonstrate the product. Choose a group volunteer, show them how it works!

Let everyone touch it, hold the products and try it themselves if they wish.

4 Get Ready to Order Determine product interest and begin to condition sale Solicit them and schedule a Demonstration Ask if they would prefer a personal consultation?

Always be aware that they may want to make money too!

Always offer the opportunity to join Lilla Rose.

Show guests how to fill out orders online.

5 Process the Sales Remember all orders are placed online and processed by Lilla Rose.

Take the driver’s seat at the computer and input all order information for your clients unless you haven’t procured a laptop yet (wish list!) Otherwise process back at your home office immediately upon returning since detail and nuance are still fresh in your mind. Discuss the positives of not having to stock and distribute products.

6 Conclude the Demonstration Thank everyone, clean up Follow up with guests, bookings, and those interested in learning more about the Lilla Rose Opportunity

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Arrival and Preparation When you arrive (at least 45 minutes to 1 hour prior to the scheduled start time), there are certain things you will want to do before the guests arrive.

Set up product demo table, make sure you have brochures, forms, etc.

Spend the last few minutes sitting with the host, and discuss some of the guests that are coming so you know what to expect. This will also allow them a chance to relax before their friends arrive. Ask if there may be anyone with sales experience or who would make a good Consultant.

Should a guest(s) have canceled on short notice, tell them not to be discouraged. Assure them that you will give your best presentation to the guests that are there. Tell them you will attempt to make personal calls or mail a catalog to all those who did not attend and give them credit. Or, give them the option to invite them to the next show.

Remind them to serve simple refreshments at the close of your presentation and entertain their guests while you are helping each one get started.

If their friends want future presentations on certain dates, check your Schedule Planner and make sure the date “fits.” If not, adjust your schedule where possible, and arrange to speak to the guest when she arrives, or if it is someone who is not attending, make a note to contact them early the following day.

Setting the Stage Ideally, you have determined which room(s) you are going to use for the demonstration, so you can have make sure it is clean and ready. If not, you will want to arrange with them which area of the house is best. A typical demonstration setting might be: Family Room The product display is set up in the family room.

The guests arrive and gather in the living room where you greet them and give your opening talk.

Dining Room You have a small display.

You can take individuals to the dining room to complete paperwork, answer questions, and make your online order.

Kitchen Have light refreshments ready in the kitchen.

Of course, the ideal setting doesn’t always exist. You’ll have to be adaptable and consider your available space.

During your presentation, stand in a location that allows you to have eye contact with all guests.

Make sure there is enough seating for everyone.

The display should be in a well-lit area with enough room around the table for guests to gather.

Your sales supplies should be set up near the display – ideally you will want to have Internet access you could enter orders right there and save time later!

Request that the TV is turned off for the demonstration.

Have catalogs or pictures available in a convenient location behind where you will stand. Don’t put them out until you are finished with the presentation. You don’t want guests reading or being distracted while you are talking.

Have pens, available for the guests.

Have nametags and a marker for the guests.

Refreshments shouldn’t be served yet, this gives them something to do while waiting for you to assist them.

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Greeting Guests and Your Opening Talk You are now ready to greet the guests, remember first impressions count, so take charge! One of the most interesting aspects of holding a Lilla Rose group demonstration is the way people respond to your taking charge. This has nothing to do with an ego trip it is merely a sign that you’re professional and confident in your business with Lilla Rose!

Be upbeat but not overbearing.

Introduce yourself.

Smile, extend a hand, and repeat their name in your greeting.

Give them a card for the drawing. Pens are out on a table.

Mingle and get to know the guests a little while waiting for everyone to arrive. You don’t want to seem standoffish.

Start as close to on-time as possible in consideration of the guests that are on time.

Your Opening Presentation The importance of an opening dialogue is, first and foremost, to put your guests at ease. You will begin with a presentation that will answer some very basic questions. The opening presentation sets the stage of the whole Gaming Show. It wins the friendship and confidence of your guests. It helps them get to know you and respond to you. It prepares them to have a good time and it pre-conditions them to be open to the “3 S’s.” -- Sell, Schedule and Sponsor a Consultant. Your presentation should be informal, natural and friendly, but business-like. Experience has shown that certain points must be covered in order to get the best results, so you should have the points you want to make fixed in your mind.

Smile, be professional and enthusiastic, and keep it brief. Guests don’t want to sit and listen to a long sales presentation. You have to give them some information, without the gaming distracting them, but your sales will be closed at the table, after they have seen and experienced our wonderful products.

“Hi, my name is ______________, a Consultant with Lilla Rose.” (Briefly tell a little about yourself).

“Lilla Rose is a company ……..

Lilla Rose decided the best way to learn about our products is to use them. Also, by selling products through direct selling they could eliminate the middleman and make sure the customer has a chance to learn how it works and see how it looks before purchasing.

I’m looking forward to hearing what you think after using our products! We have some refreshments, but before we do that, I’d like to thank you for coming. If you’ll complete the guest profile at the bottom of your order form and tear it off, we’ll have a drawing for a prize.”

Demonstrate the Products!

Demonstrate the hair clips… and all the products. Have fun with it... encourage others to try them.

The demonstration is the key to success. If you tell someone how great something is, that’s one thing. If you allow them to experience it, directly, for them it’s a whole new world. Allow their own experience to help sell the product. You will not only have an easier time making a sale to each person, their experience generates genuine enthusiasm, which in turn makes your product (and you) something they want to tell all their friends about! If you say it, they can doubt it. If they experience it, they get it.

Your primary goal at this point is to have everyone try the hairclip in their own hair. Not everyone will say yes, so don’t push. Everyone WILL watch a demonstration done on someone else, so demonstrate in a group setting any time you can. Look for the most willing in the group and start there. Make sure you have two large sized hand Lilla Rose University: Group Demonstrations Lilla Rose Inc. Consultant Manual - May 2013

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mirrors. Show the volunteer how it looks in her hair. Ask her: “How does that feel? Isn’t it comfortable!?” Make it a show. Their feedback will inspire and inform the whole group. You’ll quickly find even the more timid in the group lining up to get their own demonstration. This is also the time you determine which size will work best for them.

First ask what hairstyle they prefer. Less bulky styles need smaller sizes. A half-up ponytail is usually always a smaller size than a French twist, for example. Short video instructions are available on the web site, or ask your Sponsor for a DVD. Remember to demonstrate the hair clip in the guest’s hair – SHOW them how it works and why it’s the right size!

Create a buzz around the product and the demonstration. Everyone attending will be telling their friends about how great the products are and how fun the event was! After about 20 minutes it is time to wrap up the show!

1. Announce that refreshments will now be served.

2. There is a simple and effective way to get the people alone with you individually. This is what you say: We are going to have some refreshments at this time. While you are enjoying them and so we can talk privately where it is quiet, I would like to have each of you, one at a time, come to sit with me here in the dining room. I can then help answer any questions you might have, and discuss your individual needs.

3. Take your first guest into the room where your display and ordering information is set up.

Get Ready To Order As the demonstration phase is concluded, you are now ready for the most important and exciting part of the demonstration. You are not there to “take” orders. You are there to condition their orders, which makes the difference between doing a half way job and doing a great job-- one that can make you very financially successful in the business. Your business is to sell products, schedule shows and sponsor Consultants.

All of your preparation, planning, coaching, enthusiasm, and asking positive questions will now pay off handsomely.

It is time to reap your rewards, and to have the fun of getting the order, which is called “closing”. It is easier to talk to each person individually than to try to close a sale in front of even one other person.

Making a sale is a learned process. Some people will buy on impulse, and demonstrating the product in their hair will really help. Some will need a little help to make a decision. It is a good idea to review, on a regular basis, the section of the manual on closing a sale. If you are not prepared for the process, you could lose a sale. They may even want to buy, and you unknowingly talk them out of it. Part of learning your business is learning how to be a good salesperson. The guests are expecting it. Don’t let them down…

Sit down if the set up permits. This provides a more relaxed atmosphere. You will have to work quickly and you don’t want them to feel rushed. This should help.

Be upbeat and complimentary. Be careful not to sound phony.

Using your closing techniques, close the sale and finish your business one guest at a time.

When you are ready for the next person, don’t wait for them to be sent in to you. This can be very intimidating. Go out and guide them in to the display room.

Keep the display, and your tools, neat and tidy between guests.

As you speak with guests individually, let them know of your interest in them and their particular needs. Discuss with them the products that excite them the most. Remember, you want them to become regular customers. Get

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to know something about them that you will identify with - and him or her with you. When you sit down, try to get one or two yes answers from them before you begin. If you don’t know them well, encourage them to open up and share with you. Say something like, “Betty, isn’t (Host) a lovely person?” [ Yes or No Answer ] “Did you enjoy using our products tonight?” [ Yes or No Answer ] “Do you feel that you learned anything this evening?” [ Open ended, encourages them to open up to you ] Overcoming Objections The only way to get the order is to ask for it! Now, let’s consider any objections that might come up, such as the statement, “I don’t have the money.” The quicker you understand this objection, the sooner your sales are going to go up. Many times people automatically say that they cannot afford something. Think back. How many times have you said it yourself? In the majority of cases, this simply means that you need to be more convincing. Most people are very price-conscious. However, you should talk as little as possible about price. Instead, talk about the value of each product. You must convince them that having fun and a reason to stay home and play with the family is worth the price - and much more! One word of caution: Do not get so carried away that you over-sell a product as your customer may close her mind immediately. This rule applies, in fact, to almost all objections. Do not talk about the negative objection itself; talk positively about the products and how they will help the customer.

Always Come back to the Close “Now, would you prefer to take care of this by check or credit card?”

Remember to be friendly, helpful, and on their side. You are building customer loyalty, and you will never succeed if you pressure, or make your customer feel uncomfortable about the size of their initial purchase. When they tell you check or credit card and agree to the order, then you total it up adding the appropriate sales tax. Be sure to collect payments before going on to the next customer. Have enough change for those who wish to pay cash.

Ask the Scheduling Question This is really more a statement than a question. Assume that she is going to give a yes answer and do not ask a question to which the answer could be no. Say something like this: “Sue, I really enjoyed meeting you and working with you tonight, and it would be a pleasure seeing you again. I would like to give you and your friends a complimentary demonstration. What part of the week is best for you, first or last?”

Wait for a response.

“Fine, which do you prefer, Tuesday or Wednesday?”

Wait for a response.

Which is the best time to start your demonstration, 7:30 or 8:00 PM?” You must be positive, enthusiastic and convincing. In order to do this, you should practice this approach in front of your mirror or on your family. Practice! It is easy and it is worth thousands of dollars to you to become professional.

If you receive an objection on scheduling and you have studied the show scheduling section, you should be able to overcome the objection, most of the time.

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Ask the Sponsoring Question “You know, Sue, I really think that you would be just fantastic in this business and I would like to have you attend a brief overview that is being held soon so you can hear more about our company and how it could make your financial dreams come true.”

When their reaction is positive, set the date and tell them you will pick them up. If there is an objection, restate: “Gee, I really think you would be good in this business.” Or, “Wouldn’t you take an hour of your time to find out about a financial opportunity that could help you the rest of your life?” Or, “An interview wouldn’t hurt, would it? Which is best for you, a Tuesday evening or a Saturday afternoon?”

Now, as soon as guests are finished, tell the next person that it is their turn. Go through the same steps as above, until you have finished with everyone at the show.

Process the Sales All sales are processed from your website. You can access your web site from any location that has internet service.

As orders and/or enrollments are entered all commissions, bonuses and orders are processed real time. When you are having a demonstration or opportunity presentation it is important to have an assistant. One of your new Independent Lilla Rose Consultants will need to learn the procedures. Or perhaps you are new. In that case your sponsor or enroller will be more than happy to assist.

Conclude The Demonstration Tell the guests that you will be in touch with each one of them again soon if they have provided you’re their names or emails and agreed for you to contact them Anyone who is still there are probably close friends. If the host is comfortable with it, they may want to share the demonstrations experience.

When you are finished, thank the host and compliment them on their successful demonstration. Tell them who booked a demonstration and who is interested.

Send a thank you note, or at the very minimum, call in a few days to thank your host again. Don’t forget, they are your keys to success.

How to Book More Group Demonstrations Everyone has their reason for holding a Lilla Rose Demonstration. Reasons usually fall into one of the following two categories. Coach each individual according to their primary incentive to motivate them to work toward a successful show.

To generate enough sales to get their products free.

To help you build your business: “Because I’m just starting out I need as many bookings as possible so please be thinking of 3 or 4 people who may be interested in a demonstration of their own.”

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Lilla Rose University: Group Demonstrations Lilla Rose Inc. Consultant Manual - May 2013

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Lilla Rose University Sponsoring

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Lilla Rose University: Sponsoring Lilla Rose Inc. Consultant Manual - May 2013

You can earn a significant income through personal sales just by retailing the product and holding

group and individual demonstrations, however, if you want to earn as much as possible and realize your full potential as a Consultant, you should immediately begin sponsoring other people into your organization.

Successful Sponsorship combined with a consistent record of retail sales will earn you enough to advance to the next level in the Lilla Rose compensation program. At each step, your profits and earning potential will increase dramatically.

You can build as large an organization as you desire, and you need not limit your sponsoring efforts to your own geographical area. Lilla Rose Consultants have the entire United States in which to expand. You can sponsor people who live anywhere in the country and develop a nationwide organization.

Finding Prospects Where do you find new Consultants? Everywhere! Because everyone who wants to look more beautiful is your potential prospect! You have many excellent opportunities to develop these individuals into new Lilla Rose Consultants.

When you are ready to introduce the Lilla Rose business opportunity to one of your customers, apply the same techniques to your sponsoring efforts that you used in retailing products. Try to elicit positive responses from your prospect and gradually guide the conversation in the desired direction.

For instance, you might say: “Don’t you agree that having another source of income would be useful? Does the idea of having extra money for you and your family appeal to you? Would you enjoy having a new car or taking a dream vacation?”

Know the customer so well, that you can tailor this introductory question to that person’s individual concerns and interests. Follow it up with carefully planned questions that will draw out positive responses, and you will find the prospect telling you that he wants to become a Consultant.

Prospecting Amoung People You Know... Or Strangers You Meet Friends, relatives, business acquaintances and strangers you meet on airplanes, in waiting rooms, in checkout lanes at the grocery store, etc. are all top quality prospects for the Lilla Rose opportunity.

You may first want to turn these people into customers. Developing customers is the easiest method for acquainting people with the opportunity. But on some occasions and in certain circumstances, it might be the ideal time to present the business opportunity.

When you don’t know the prospect however, you will want to go through a preliminary step called “qualifying the prospect”.

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Qualifying Prospects If the prospect expresses some interest in the products, you could proceed by asking qualifying questions. This can be done by asking questions about their life (job, hobbies, etc.) and getting to know the person as well as you can in the time you have available. People love to talk about themselves. All you have to do is get a conversation started. Your initial comment depends, of course, on the particular situation.

If the prospect is at work or on the job when you meet (cutting hair, bagging groceries, sitting behind a desk or a counter, waiting on tables, in your home selling, etc.) pay them a compliment if possible. It should be brief and sincere. For example, if the person has been particularly helpful or courteous, comment on that. Then proceed with appropriate qualifying questions like the following: How long have you been working here? (Or, doing this type of work) How do you like your job? (Are you satisfied with your position?)

What kind of hours are you working (do you put in) in this line of work?

Are you making the kind of money you would like to make?

Are there opportunities for advancement with your company?

Would you consider changing jobs if a better opportunity came your way?

Your questions show an interest in the individual as a person and will make your compliment (your wanting to recommend him for a job) more sincere. If done skillfully, it will also create a desire in him to want to achieve more in life by making him aware of his present position as compared with his real potential.

Qualifying questions might also include other areas, such as the prospect’s family, educational background, civic interests, home, car and other possessions in which special pride is taken. Subjective questions are good too, such as; “If you could go on any type of vacation tomorrow, where would you go and what would you do?” Use your imagination. It is fun and it can pay off for you. The best prospects will have a confident outlook on life, will give you positive answers, and will be enthusiastic individuals. They are usually earnest, hard workers and have a persevering attitude towards their responsibilities.

After you have qualified the prospect and decided that you would like to offer him your business opportunity, simply say, “I am always looking for people with your capabilities (or ambition, experience, background, etc.). If you were interested, I would be happy to set up an appointment with you to show you more about what we have to offer. It might be just what you are looking for! OK?” Next, get the person’s name and phone number (if given a business card, ask for the home phone number and write it on the back). Also, ask when the best time would be to reach him/her. Some people prefer not to be contacted at their present place of business.

Setting Appointments Now that you have your qualified prospect, your next goal should be to arrange the time and place for you to explain the Lilla Rose opportunity to him/her.

When you contact your prospect, it is important that you present the Lilla Rose opportunity in person. The main reason for a telephone call is to set up an appointment. If the person wants more information, simply tell him very politely but firmly that you cannot possibly do justice to the company, its products or the opportunity until you have time for a complete presentation. Besides, you are sure that he would want all the facts and details about the opportunity so that he can make an educated decision. There is simply no way to gain a thorough understanding of the program over the phone. Then you arrange to present the opportunity to your prospect in comfortable surroundings, like your prospect’s home or your own home.

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One of the best ways to start is finding out your prospects “why?” With that you can tailor your presentation to fit their need. Remember, your needs may not, and probably won’t be the same as many of your recruits. Let them tell you why they want to do the business and they tell them ways they can accomplish their goal.

If your prospect is emphatically not interested, do not try to pressure or argue him into an appointment. Just terminate your conversation as quickly and politely as possible and try that person again some other time. Many factors will contribute to a person’s receptiveness to your phone call... time, and/or whether or not he/she has had a good day, etc. Just remember that if a prospect is not Lilla Rose receptive at the time of your call, it does not necessarily mean that he is not interested in Lilla Rose. You can try again at a later date.

Always make a habit of smiling when you talk to a prospect over the phone. Even though they can’t see you, it still helps lift your voice and convey your message with more enthusiasm. You might try this approach when calling a prospect for an appointment.

“Hi, this is Mary Smith with Lilla Rose. I met you the other day at _______.”

[Note: If they need their memory jogged, be sure to give details of where you met.]

“We talked briefly then about how you could earn more money, work your own hours, and be your own boss with Lilla Rose. If you are still interested in learning more about this business opportunity, I would like to get together with you and explain it in detail. Would tomorrow afternoon or tomorrow night be OK with you?”

Personal, face to face contact is another way you can set up appointments with people you see every day. Should the situation arise with someone you see on the street, you might be able to casually bring up the subject of Lilla Rose. If, for instance, someone asks how you are, you can mention the opportunity by saying “Couldn’t be better!

You know, I have found a way to make extra money. While having fun playing games, and I’m my own boss, too!”

When he/she asks what it is, you should start by giving a brief explanation of Lilla Rose the products. Tell him/her you do not have time now to explain the details of the business, but you will be available to go over the business opportunity later.

Ask if the next day would be convenient for breakfast and that you are buying. If not, find a tentative date and set an appointment. Usually when someone makes a “tentative” appointment with you, it won’t be remembered as a “tentative appointment”, but definite! Having an appointment will give you some time alone to discuss why Lilla Rose is such a wonderful opportunity and give both you and your prospect some time to get to know one another better.

Your prospects, when they become Consultants, are like partners in your business. It is with them that you grow your business and their successes increase your own success and contribute to a business that can help all of your reach your goals. Taking time to get to know one another can help you as your mentor and grow your team, just as your sponsor has worked with you!

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Lilla Rose University Forms & Tools

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Lilla Rose University: Forms & Tools Lilla Rose Inc. Consultant Manual - May 2013

Below you’ll find a list of forms and supplies that will assist you in your day to day activities as a Lilla Rose Consultant.

Included is a short description and where you can find them.

Applications. Applicants can enroll very quickly and securely online, on your Personal Replicated Website any time day or night. In addition, printable applications are available free of charge as an electronic download your Online Back Office under Tools & Information Enhanced Tools Help Documents.

Business Cards. Business Card Art Files are available to purchase in your Back Office in the Consultant Shopping Cart, under Business Supplies Stationery. You are responsible for entering all text data so be sure that all information is correct. Once you receive the digital art files, you are responsible to make sure all text and graphics are correct and if something is incorrect you have 30 days to request alterations free of charge. You are responsible for submitting your order and the cost of printing at any compatible online printing service. There are no refunds. Be sure the information you submit conforms with the Retail & Advertising Policies section of this Manual.

Contact List. Convenient grid to build and maintain your list of contacts and prospects. Available in the Consultant Manual herein, and in your Online Back Office under Tools & Information Enhanced Tools Help Documents.

Consultant Manual. This manual, also available as PDF in your Online Back Office under Tools & Information Enhanced Tools Help Documents. For additional printed copies, please call Lilla Rose and inquire about purchasing copies.

DVD’s. The video from the DVD’s are freely available to anyone on your Replicated Website any time day and night. DVD’s are available to purchase in your Back Office in the Consultant Shopping Cart, under Business Supplies Marketing.

Group Demonstration Checklist. Convenient checklist of the tasks necessary to perform that help guarantee a successful group showing. Available in the Consultant Manual herein, and in your Online Back Office under Tools & Information Enhanced Tools Help Documents.

Opportunity Brochure. Opportunity Brochures are available to purchase in your Back Office in the Distributor Catalog, under Business Supplies Marketing.

Order Forms. Orders can be placed securely within your Online Back Office Consultant Shopping Cart or on your Replicated Website any time day or night, at no additional cost to you. Printable order forms are available as an electronic download your Online Back Office under Tools & Information Enhanced Tools Help Documents. A paper order form booklet is also available for purchase in your Back Office in your Consultant Shopping Cart, under Business Supplies Marketing.

Product Brochures. Your personal Replicated Website acts as an always available free-to-use and up to date product brochure. Printed Brochures are available to purchase in your Consultant Shopping Cart, under Business Supplies Marketing.

Prospect Information Form. Easily capture and reference the important information on your new prospect.

Available in the Consultant Manual herein, and in your Online Back Office under Tools & Information Enhanced Tools Help Documents.

Return Authorization. Printable RMA forms are available as an electronic download your Online Back Office under Tools & Information Enhanced Tools Help Documents. Be sure to call for an RMA number prior to returning any products or materials.

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51

Contacts & Prospects List Name

TIP

Phone

City, State

Prospect? Note

This form is available in your Lilla Rose Consultant Back Office as an electronic download under Consultant Downloads, for free.

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Lilla Rose University: Forms & Tools Lilla Rose Inc. Consultant Manual - May 2013

Name

ho wome m rk ob ile

Prospect Information Form Address

Phone/Email

Notes: Personal Notes (family, children, hobbies, referred by, any other information)

Item First Contact

Date Completed

Note

Sample Provided Follow Up Individual Presentation Group Presentation Consultant?

Asked for Referrals?

Sent new product info

TIP

This form is available in your Lilla Rose Consultant Back Office as an electronic download under Consultant Downloads, for free.

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53

Group Demonstration Check List Name

Show Date

When Booking a Demonstration Discuss who to invite, suggest over-inviting Offer suggestions on how to invite (refer to script on Guest List) Set up a time for your next call Send a personal thank-you note

Making Guest Calls Make personal “guest calls” to increase attendance, sales and add a personal touch

Final Pre-Demonstration Call Build enthusiasm and confidence Remind to keep refreshments simple

First Call Confirm the Guest List, ask for a copy Help her add to her Guest List

Explain your set up; see if the host needs anything (tables, chairs, etc.)

Verify time and directions.

Review methods for collecting Advance Orders Encourage and praise!

Set up a time for your next call

Second Call Call each Guest to confirm their receipt of the invitation Continue to build attendance Encourage additional advance orders

Pre-Show Questions Who is coming to your party that is likely to book a party of their own?

How many advance orders have you collected?

Post-Show Contact “no-shows” and ask for a booking Continue to share the business opportunity with your host. They are your best prospect!

Send a thank you note.

Notes:

TIP

This form is available in your Lilla Rose Consultant Back Office as an electronic download under Consultant Downloads, for free. Use one for each Demonstration/Presentation to make sure you remember everything. This also gives you a record at the end of the year.

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Lilla Rose Compensation Plan

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Lilla Rose Compensation Plan Lilla Rose Inc. Consultant Manual - May 2013

The Lilla Rose compensation plan was designed to offer Consultants the opportunity to develop a significant income through retailing our products as well as an opportunity to enhance that income further by building a team. Our goal is to foster personal and financial growth and success through your Lilla Rose business.

People who join Lilla Rose as Consultants retail products, build customers and grow their business. Retailing product is the foundation of your ongoing business success. Typically, a new Consultant will hold a fun event called a “Business Grand Opening” in their home or other meeting area that jumps starts their new business venture.

To become a Consultant with Lilla Rose and begin receiving the highest possible discounts, you will need to have initiated a Consultant Application and Agreement, and you must acquire your Lilla Rose Consultant Sales Kit. You may purchase a Party Pack for $49.95 or a Show Pack for $99.95 (plus tax and shipping), or you may earn your Kit by applying the credit from personal sales created at your Business Grand Opening.

Retail Discounts Upon completion of the above qualifications you will be authorized to conduct your own Business Grand Opening parties, retail Lilla Rose products and receive a retail discount of 30% up to 45% and introduce others to the Lilla Rose business opportunity to earn bonuses.

There are many ways to earn money from your Lilla Rose business. Keep in mind that all these ways of earning income are cumulative, and can reward you generously for your efforts.

Growing Your Sales. You begin each month with a base discount of 30%. When your Personal Retail Sales [PRS] reach $200 in a calendar month, you become eligible to begin receiving an additional retail Enhanced discount on your own monthly purchases. Depending on your total Personal Retail Sales, you can increase your retail discount on your personal sales from 30% up to 45%. Each month begins a new cycle of qualification.

Table 1, Enhanced Personal Retail Sales Discount

If your sales are...

You receive1...

30%

0 - $199

$

off at time of purchase2

in monthly retail sales

200 - $500

$

in monthly retail sales

501 - $999 OR in monthly retail sales

$

2,500 - $3,999

$

in monthly group volume

1,000+

$

in monthly retail sales

OR

4,000+ in monthly group volume

$

35%

30% off at time of purchase2 plus 5% at month end

40%

30% off at time of purchase2 plus 10% at month end

45%

45% off at time of purchase2

45%

30% off at time of purchase2 plus 15% at month end

1 Some Products or Sales include the full Enhanced Discount in the final price at checkout, regardless if you are qualified for that tier. Any item or sale that affects compensation will be listed in your Back Office under Tools & Information Offers, Sales, and Special Products.

2 For purchases made by your personal customers, you’ll receive commissions at month-end.

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57

Enroller and Sponsor Relationships As an additional means for you to help others in your Downline Sales Organization succeed and thereby help yourself, Lilla Rose tracks two different types of relationships among its Consultants known as: the “Enroller relationship” and the “Sponsor relationship”.

An Enroller is an existing Consultant of any rank that first explains the Lilla Rose business opportunity to a potential new Consultant, and subsequently helps them to enroll as a Consultant. Lilla Rose computer thereby recognizes an “Enroller relationship” between these two Consultants and maintains it accordingly.

A Sponsor is a Consultant of any rank who is immediately Upline in an Organization from a new or existing Consultant, and is generally responsible for the day-to-day coaching, encouragement, and assistance of the Consultants immediately below them. The Enroller and the Sponsor of a new Consultant is usually the same person, though they do not have to be. Upon meeting the qualifications for the rank of Manager, a new Manager has the option of placing a new Enrollee under another Consultant when appropriate for accelerated Team Building. (More on this later) The computer system recognizes a “placement Sponsor relationship” based on the Sponsor position between these two Consultants and maintains it accordingly.

Sponsor Relationship Bonus: Working with others to build a team When you help the people you recruit to build their team, you help them become successful while you build depth in your organization. Lilla Rose compensates you for building depth by paying you through up to four Levels of Consultant sales volume in your organization. The term “Level” is used to describe your relationship to the other Consultants. For example, when you sponsor someone, that person is your Level 1. When that person sponsors someone, the new Consultant becomes your Level 2, and so on. You can earn the right to receive bonuses on each of the four levels of Consultants.

To remain a Bonus Qualified Consultant, you must maintain a minimum Personal Bonus Value (PBV) of $200 during the qualifying month. See What is Bonus Value on next page.

Sponsor Bonuses are earned by and paid to Consultants that are Bonus Qualified. When a Consultant fails to meet the minimum maintenance requirements for earning bonuses at her titled position, the Company’s computer searches downline until it finds an Active Consultant who is Qualified for that position or higher, no matter how far Downline it has to search. The volume then “Compresses” past all non-Active Consultants in the Downline until it has satisfied its payout requirements with qualified Consultant levels or Generations. The term “compression” is used to describe the temporary condition that occurs when someone fails to meet the maintenance requirements for a particular pay period and the term.

Note: All Sponsor Bonuses do not pay on orders that any Fast Start Bonus pays on. See Fast Starts, page 61

Enroller Relationship Bonus When you personally enroll a new Consultant, as the Qualified Enroller you will receive a special 7% BV Relationship Bonus on the Enrollee’s Personal Bonus Value, as long as you are personally “Active”.

Note: If Fast Start qualified & applicable, Fast Start Bonus supersedes Enroller Bonus. See Fast Starts, page 61)

Placement Option (Managers and above) After qualifying for the rank of Supervisor, you may immediately begin qualifications for the Manager position.

The company has developed a special Manager Training program, which provides the knowledge and tools to grow your business through enhanced team building. You must complete this training before being recognized as a Manager. This will provide you with the option of placing your new personally enrolled members under another member of your team (Downline) who you feel may be a good trainer and Sponsor. Any Consultant can only be moved once, and it must be within their first seven days of enrolling.

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What is Bonus Value?

The assigned dollar value for calculation of bonuses on products sold and as a measure for promotion to various ranks in the Compensation Plan. Bonus Value is usually based on minimum product wholesale but could be less on certain low margin products. Lilla Rose has assigned a BV to each order equal to Consultant minimum wholesale (70% of suggested retail)

Earn Even More by Building a Team Monthly Personal Bonus Volume

Consultant $

200

Sponsor Bonus Levels

2 3

200

Manager $

200

Director $

200

Unit Director $

200

$ 10,000 to qualify, then $5,000 thereafter.

$ 20,000 to qualify, then $10,000 thereafter.

$ 30,000 to qualify, then $15,000 thereafter.

40% Rule Applies

40% Rule Applies

40% Rule Applies

2 Qualified Consultant Legs

2 Qualified Consultant Legs & 1 Qualified Supervisor

3 Qualified Supervisor Legs & 1 Qualified Manager Leg

4 Qualified Manager Legs & 1 Qualified Director Leg

7%

7%

7%

7%

7%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

2%

4%

2,000 to qualify, then $1,000 thereafter.

Required Legs

1

$

$

Group Bonus Volume

Enroller Bonus

Supervisor

4

Management Bonus

Table 2

ALL BONUSES: Bonuses can be suppressed on items such as clearance items, or clearance sales. Any item or sale that affects compensation will be listed in your Back Office under Tools & Information Offers, Sales, and Special Products. Bonuses do not pay on Host Award orders, or orders for Business/Marketing Supplies.

ENROLLER BONUS: Does not pay on an Enrollment order, or an order on which you personally receive a Fast Start Bonus.

SPONSOR BONUS: Does not pay on an Enrollment order, or any order on which any Fast Start of any level has paid on.

40% RULE: No more than 40% of the Group Volume can come from any one Leg. BV (Bonus Value) based on 70% of suggested retail. All Unilevel bonuses will be calculated on this value.

PBV (Personal Bonus Value) The BV of your personally placed orders, and orders placed by your customers.

GBV (Group Bonus Value) Your PBV plus the BV of your Downlines personally placed orders, and orders placed by their customer orders.

CHECKS: Compensation must be at least $20 for a check or Direct Deposit to be generated and sent you.

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Fast Start Bonus

Earn up to $200 Fast Start Bonus on new Enrollees’ first order. In an effort to enhance your early financial incentive and reward you for acquiring and educating new Independent Consultants, Lilla Rose has created the Fast Start Bonus. If you are qualified you can earn a 40% Fast Start Bonus from each of your personal Enrollees first order.

The Fast Start Bonus follows the Enroller Relationship and applies to a new Enrollee’s first order only, regardless of the amount and is subject to maximum payouts per order, per level (See Table 3). As the Enroller, if you are Fast Start Qualified, then this bonus will replace your Enroller Bonus for Fast Start eligible orders as you cannot receive both bonuses on the same order, but you will receive the higher of the two. Also, if an order pays a Fast Start Bonus, all Sponsor level bonuses (for everyone) are suppressed for that order only. Standard bonuses will be calculated for Enrollers and Sponsors on all subsequent orders.

Fast Start Qualification Requirements In order for you to earn Fast Start Bonuses, you must meet the following three requirements: 1. You must have completed a Consultant Application and Agreement, and have purchased the Party Kit for $49.95 or the Show Kit for $99.95, and 2. Be a Bonus Qualified, Active Independent Consultant in good standing, and 3. Complete one of the following prior to the new enrollment: a) Accumulate $2,000 in Personal Bonus Value (BV) over any period of time; OR b) Purchase an optional Fast Start Pack at $500.00 wholesale at time of enrollment.

Upon completing these qualifications, you will be eligible to receive Fast Start Bonuses based on the first product order placed by your personally enrolled Consultants of 40% ($200 maximum). These personally enrolled Consultant’s can also begin enrolling other Consultants who will be placed on your 2nd Enrollee level, and you will earn 10%* Fast Start Bonus on that person’s First Order ($50 maximum). And your 2nd level Consultant’s can begin enrolling Consultants and who will be placed at your 3rd Enrollee level earning you 5%* Fast Start Bonus on that person’s First Order ($25 maximum).

What is the Fast Start Pack?

The Fast Start Pack consists of merchandise equal to at least $900.00 in retail value, and can only be purchased at enrollment time, combined with the Lilla Rose Enrollment Kit of your choice. Occasionally, the contents of the Fast Start Pack can change and its value can be even higher than the $900.00 retail value, but never lower.

Table 3, Fast Start Bonus Schedule* Qualification 1 Level Enroller Relationship

Accumulate $2,000 PBV over any period of time Or Purchase optional Fast Start Enrollment Order

2nd Level Enroller Relationship

Same

3rd Level Enroller Relationship

Same

st

Bonus Amount 40% of Direct Enrollee’s (an E-1) First Order up to $500 BV (Up to $200 each) 10% of E-2s First Order up to $500 BV (Up to $50 each) 5% of E-3s First Order up to $500 BV (Up to $25 each)

* Bonuses can be suppressed on items such as clearance items, or clearance sales. Any item or sale that affects compensation will be listed in your Back Office under Tools & Information Offers, Sales, and Special Products.

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Qualifying & Maintaining Management Benefits Consultant You will become a Lilla Rose Consultant when you: 1.

2.

3.

4.

Sign Lilla Rose Consultant Application and Agreement, and Purchase a Lilla Rose Enrollment Kit, and Generate $200 in Personal Bonus Value in a calendar month, and Completed your Business Grand Opening.

Then, maintain the rank of Consultant when you: 1. Maintain a minimum of $200 in Personal Bonus Value each month.

Supervisor You will achieve the title of Supervisor when you have: 1. Two (2) or more Qualified Consultant Legs, and 2. Generated $2,000 in Group Bonus Value of which $200 is Personal Bonus Value in a calendar month.

Then, maintain the rank of Supervisor when you: 1. Maintain at least two (2) Qualified Consultant legs, and 2. Generate $1,000 in Group Bonus Value of which $200 is Personal Bonus Value in a calendar month.

Manager You achieve the title of Manager when you have: 1. Two (2) or more Qualified Consultant Legs, and 2. One (1) or more Qualified Supervisor Legs, and 3. Generated $10,000 in Group Bonus Value of which $200 is Personal Bonus Value in a calendar month. The 40% rule applies.

Then, maintain the rank of Manager when you: 1. Generate $5,000 in Group Bonus Value of which $200 is Personal Bonus Value in a calendar month. The 40% rule applies.

Director You achieve the title of Director when you have: 1. Three (3) or more Qualified Supervisor Legs, and 2. One (1) or more Qualified Manager Legs, and 3. Generated $20,000 in Group Bonus Value of which $200 is Personal Bonus Value in a calendar month. The 40% rule applies.

Then, maintain the rank of Director when you: 1. Generate $10,000 in Group Bonus Value of which $200 is Personal Bonus Value in a calendar month. The 40% rule applies.

Unit Director You achieve the title of Unit Director when you have: 1. Four (4) or more Qualified Manager Legs, and 2. One (1) or more Qualified Director Legs, and 3. Generated $30,000 in Group Bonus Value of which $200 is Personal Bonus Value in a calendar month. The 40% rule applies.

Then, maintain the rank of Unit Director when you: 1. Generate $15,000 in Group Bonus Value of which $200 is Personal Bonus Value in a calendar month. The 40% rule applies.

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Leadership Bonus When you achieve the rank of Director (D), you qualify for Group Bonus of 2% BV beginning with all your personal sales and the personal sales of everyone in your group, down to the first Director or higher rank person.

When reaching the rank of a Unit Director (UD), you qualify for Group Bonus of 4% BV beginning with your personal sales and the personal sales of everyone in your group that has not yet become a Director or Unit Director down to the first Director. Additionally, you will earn a Differential Bonus of 2% BV on the group volume of each Director.

(The difference between your 4% BV and their 2%) down to another Unit Director.

Table 4, Leadership Bonus

Director Bonus

Unit Director Bonus

+ 2% BV Director Group Bonus

+ 4% BV Executive Group Bonus and 2% BV override on Director Group

Table 4.1, Leadership Bonus Example This Unit Director receives 4% on his group, shown to the left of the divider line, up until the next encountered Director.

They will also receive 2% on any encountered Directors group, shown to the right of divider line, up until the next encountered Unit Director.

UD M C

M

S C

C C

C

S C

M

M C

C

C

S C

This Director receives 2% on his group, shown to the right of divider line, up until the next encountered Director or Unit Director.

C C

C

S C

C

D S

C

Divider

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C

C

Line

C

S C

S

S C

M C C

C

C

S C

C C

Executive Management Bonus Pools As you advance to the rank of Unit Director, you also become eligible to earn up to three new titled positions and be eligible for corresponding shares in another category of revenue called Executive Management Bonus Pools. Each of these 3 pools accumulate a total of one third of one percent (1/3 of 1%) of the Company’s total Bonus Volume for each year, and is divided equally among the qualified ranks that hold a share in each pool. (See Table 5 below) When you achieve the rank of Unit Director and help someone in your Downline become a Unit Director, you will receive the rank of Junior Executive and will qualify you to earn a share of the Junior Executive Pool. The Junior Executive Pool accumulates 1/3 of 1% of the Company’s total annual Bonus Value sales, and is divided equally at the end of the year among all Junior Executives holding its shares.

When you have a second leg in your organization, that contains a Unit Director, you will be promoted to the rank of Executive, and you will qualify to earn a share of the Executive Pool. The Executive Pool accumulates 1/3 of 1% of the Company’s total annual sales, and is divided equally at the end of the year among all Executive’s holding its shares. You will also maintain your shares in the Junior Executive Pool.

When you have a third leg in your organization that contains a Unit Director, you will be promoted to the rank of Senior Executive, and you will qualify to earn a share of the Senior Executive Pool, which accumulates 1/3 of 1% of the Company’s total annual sales, and is divided equally at the end of the year among all Senior Executive’s holding its shares. You will also maintain your shares in the Junior Executive and Executive Pools.

Share Vesting: Each month that you qualify for a particular Junior Executive, Executive, or Senior Executive rank, you will earn a share of each bonus pool for which you are qualified and those shares becomes vested for that year. At year‐end, all vested shares will be totaled and divided into the total funds in each pool to determine each share value.

Accumulation Period: All Executive Management Pools are based upon sales that are completed between December 1 and November 30 each year.

Table 5, Executive Management Bonus Pool

Divided Among Jr. Executives, Executives, & Sr. Executives

1/3

Divided Among Sr. Executives

1/3

1/3

Divided Among Executives & Sr. Executives

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Retail & Advertising Policies Frequently Asked Questions Glossary of Terms Policies & Procedures

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Lilla Rose Retail Advertising Policy Lilla Rose Inc. Consultant Manual - May 2013

Retail & Advertising Policy Lilla Rose is a person to person sales company. The display or sales of Lilla Rose products in retail outlets is prohibited as described below. The restrictions include “trunk shows”, with the exceptions stated below. Consultants may not sell Lilla Rose products to any non-Consultant persons, group or entity whose intent or purpose is to resell that product. Catalogs and business cards may be distributed and displayed at all venues, including retail outlets and other places of business. This differentiates us in the market and emphasizes the personal sales and home based business focus of Lilla Rose.

Salons Consultants may show their Lilla Rose products in hair or nail salons, in accordance to the following rules, provided there is no permanent display maintained. When showing the products at any establishment, all Lilla Rose products must be completely out of sight when the Consultant is not in sight.

Consultants may display their business cards and catalogs at their station in the salon.

Small, mobile displays are allowed at the Consultant’s station, as long as the Consultant attends it at all times.

Consultants must remove displays for the duration of any breaks and at the end of Consultant’s workday.

All rules apply to owners, employees and independent contractors of salons who are Lilla Rose Consultants.

The Lilla Rose office will address any reported violation of this policy. Violators will be subject to Policy Violation Procedures.

Trunk Shows A trunk show takes place in a business environment, conducted like an office show. It is a one or two day show hosted by the business owner, just as a friend would host a show in her home. Requirements: The trunk show may not be held in a retail establishment (including a kiosk) Consultant must obtain permission of the business owner to conduct a show Consultant must be stationed with the product display for the entire duration of the show.

The trunk show must have no permanent displays and be conducted like an office show.

Business owners that are not Consultants may not hold or host their own trunk shows.

Advertising Lilla Rose firmly believes that each Consultant should have every opportunity to run their businesses as they wish, provided they adhere to the guideline “Treat others as you wish to be treated” guideline. Although advertising can sometimes be an effective tool for increasing business, we want to make sure we don’t lose the personal service touch that makes us special. If used unwisely, advertising can work against the core values of direct sales. The advertisement of one Consultant should never undermine the hard work of another Consultant. Accordingly, we allow Consultants the opportunity to promote and advertise their businesses within certain parameters, outlined as follows.

All advertisements other than company provided materials and templates are required to be approved by the Lilla Rose home office before distribution. When you promote your business to others, please be aware that any verbiage that contradicts the following specifications are in violation of our Advertising Policies and are subject to policy Violation Procedures. Please call us if you have any questions.

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Required Advertisement Components Full name and title must be printed as follows: First and last name followed by the official title “Independent Lilla Rose Consultant”. You may include your Consultant level title.

Contact information such as telephone number or Consultant’s e-mail address may be used.

The following statement must appear as a footnote in each piece of promotional material containing the Lilla Rose name or logo: Lilla Rose (name or logo) is property of Lilla Rose Inc, and is used under license.

Acceptable Advertisement Components The following are acceptable examples: E-mail signatures containing the Lilla Rose name or logo, providing the words “Independent Lilla Rose Consultant” are used.

Standard discounts and offers quoted from the Lilla Rose catalog.

Special discounts or offers may be advertised to existing personal customers only.

Your home address or the home address of someone else on invitations to a home show or open house.

Only invitations, business cards and other flyers that conform to the approved company format or templates may contain the Lilla Rose name or logo without written authorization from the Lilla Rose office. You may not produce any other documents using the logo without written permission.

Prohibited Advertisement Components Specific claims of earning potential (e.g. “earn an extra $500 per month” or “earn 50% profit”, etc).

Special discounts or offers that may not be advertised to the public or potential customers (e.g. “no start up fee”, “40% off”, etc.) That could undermine another Consultant’s business.

The Lilla Rose name or logo, except on invitations, business cards or flyers that conform to company provided templates, as authorized by the company office.

Item Specific Requirements You may use the following types of advertisements when adhering to the stated stipulations of each.

Business Cards Consultants must use their full name followed by “Independent Lilla Rose Consultant”. All Lilla Rose business cards must be produced in the company format. Do not include any additional information or offer specials on your business cards. Lilla Rose offers an inexepensive design service that will produce your customized Lilla Rose Business Card digital files that are ready to print at one of our printing partners. This service is available at cost in your Lilla Rose Back Office Distributor shopping cart, under "Supplies".

Directory/Chamber of Commerce listings If you would like to be listed in a directory, you may list your name, our industry as “Fine hair accessories and jewelry” and your contact information.

Home/Office Show Fliers Fliers may be used to promote a specific event, such as home/office shows, open houses or recruiting rallies.

These fliers may be mailed or handed out personally. You may use product descriptions or offers printed in any current Lilla Rose catalog. Only fliers sent to existing clients may contain a special discount honored solely by the Consultant. Please follow the Advertisement Policy and Procedures when producing fliers.

Special Event/Craft Show Fliers Fliers may be used to promote a specific event, such as home/office shows, open houses or recruiting rallies.

These fliers may be mailed or handed out personally. You may use product descriptions or offers printed in any current Lilla Rose catalog. Only fliers sent to existing clients may contain a special discount honored solely by the Consultant. Please follow the Advertisement Policy and Procedures when producing fliers.

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Lilla Rose Retail Advertising Policy Lilla Rose Inc. Consultant Manual - May 2013

Lilla Rose Name and Logo The Lilla Rose name and it's logo are property of Lilla Rose Inc. Consultants may not duplicate the Lilla Rose name without explicit authorization from the company office, except for invitations, business cards and company provided templates. This includes, but is not limited to, the Lilla Rose name or logo.

Advertising On Vehicles Lilla Rose can provide you with a logo sticker for your vehicle. Contact information must not be larger than the logo, if added. For safety reasons you may not want contact information on you vehicle however. Please do not add any other information, special offers and discounts for example.

Telephone Greetings & Recorded Messages Consultants may not have a voicemail or answer the phone in any manner that would lead others to believe that they have reached the company office of Lilla Rose. You may say Lilla Rose as long as you also say “Independent Consultant”.

Personalized Checks Lilla Rose name may be used provided the following statement is printed also: Consultant’s first and last name Independent Lilla Rose Consultant Acceptable Mediums Of Advertisements Fliers can be created by the Consultant and used to promote a specific event, like a home/office show, open house or recruiting rally, as long as they conform to the suggested format as per the original flyer template.

These flyers may be mailed or passed out personally (see Item Specific Requirements for details).

Vendor event programs distributed at the event may contain the Lilla Rose name, logo, and the name of the Consultant at the event followed by the words “Independent Lilla Rose Consultant.

Business Cards. (See Item Specific Requirements for details).

Items found in your Lilla Rose Back Office under Business Supplies including but not limited to the Lilla Rose Catalog, Opportunity Brochure, Postcard, Instruction Sheet, etc.

E-mails to your personally subscribed customers. Spam e-mail is not allowed.

Prohibited Mediums Of Advertisement Consultants may not advertise to promote their Lilla Rose business in any of the following ways: Promotional Items Consultants are not allowed to produce or purchase from any business other than Lilla Rose, any items with the Lilla Rose trademark name or logo, either for promotion or re-sale, except business cards and other company approved items including, but not limited to, magnets, license plate frames, yard signs and so forth.

Prohibited Mediums Prohibited mediums of advertisement also include, but are not limited to the following (if you have questions, please contact the Lilla Rose office): All mass media (e.g. movie theaters, newspapers, radio, television).

Magazines promoting your Lilla Rose business or the Lilla Rose trademark name or logo.

Outdoor signs (e.g. billboards, banners, window stenciling on homes, (except those supplied by Lilla Rose), except in the immediate vicinity of a home/office/trunk show, fundraiser or vendor event for the duration of the event.

Internet, including but not limited to, non company websites, web ads and unsolicited email messages (spam) and online auctions that promote the Lilla Rose trademark name or logo.

Hyperlinks to or from your Lilla Rose company website.

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Homeowner’s association newsletters (or the equivalent for apartment/condominium complexes) promoting the Lilla Rose trademark name or logo.

Ads in church, school or sporting event programs (exception: an actual size Lilla Rose business card as is allowed for church, school or sporting event programs promoting a one time event).

Yellow Pages telephone directory listings to promote your Lilla Rose business.

Yearbook ads.

Unpaid/Unsolicited Stories Or Interviews Consultants may participate in unpaid, unsolicited stories or interviews such as television, radio and newspaper coverage (please note that unpaid, unsolicited news stories or interviews are not considered advertisements). The Consultants must refer to themselves as an “Independent Lilla Rose Consultant” and cannot state or imply Lilla Rose company endorsement for any activity, association or belief. The following requirements must be adhered to: When mentioning your name in conjunction with Lilla Rose, you may only use the title of “Independent Lilla Rose Consultant”. If mentioning the Lilla Rose trademark name, you may not solicit sales to you personally by providing your name and any contact information.

If approached by the television, news or print media to participate in an interview specifically about Lilla Rose including, but not limited to, the products, Marketing and Compensation Plan, training or compensation, you must clear the interview with the Lilla Rose office in advance.

The Lilla Rose office will address any reported violation of this policy. Violators will be subject to Policy Violation Procedures.

Promoting Or Advertising Your Product Donation Any acknowledgement by Consultant’s name of a donation of your Lilla Rose products must be listed as follows; your name and “Independent Lilla Rose Consultant”. No listing or contact information is allowed on television or the Internet, or in newspapers, magazines or other mass media. The Lilla Rose office must approve any acknowledgement for donations made to persons in the media.

Internet, Website & Public Chatrooms Your Personal Lilla Rose Replicated Website (www.LillaRose.biz/YOUR-URL) is the only place to promote and sell Lilla Rose products on the Internet. You may not advertise, sell or promote your Lilla Rose business over the Internet by any means other than the programs currently offered through the Lilla Rose company office.

Websites: Consultants may not advertise or promote their Lilla Rose business on the internet or have a website that promotes or advertises their Lilla Rose businesses.

Consultants may not place an Internet ad or listing promoting a Lilla Rose business or the Lilla Rose trademark name or logo on any website.

Links to or from other websites to the Lilla Rose company website are prohibited.

It is acceptable for Consultants to represent themselves on blogs and social media website's like Facebook and Twitter provided you follow each website's own policies. The general rule is that it's all right as long as your Social Media posts are foremost about you, your family, or your interests.

While it is okay to inform others of your relationship to Lilla Rose, you may not "pitch" the Lilla Rose Opportunity, offer discounts or in any direct way use Social Media as a recruitment/sales tool.

Email: Consultants are permitted to send out email messages to an email club or email group that consist of only existing customers and Upline and Downline.

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Lilla Rose Retail Advertising Policy Lilla Rose Inc. Consultant Manual - May 2013

Consultants must ask permission of the recipient before sending out email and provide a way for the recipient to opt out of receiving further emails.

Consultants are not allowed to send out “spam”. Spam is any unsolicited email to non-existing customers.

Emails may be sent to individuals requesting information on the Lilla Rose business.

The trademark name or logo may be utilized in you email signature followed by “Independent Lilla Rose Consultant”.

The Lilla Rose office will address any reported violation of this policy. Violators will be subject to Policy Violation Procedures.

All Online Auctions Are Prohibited Consultants are not allowed to use online auctions (e.g. EBay or Amazon.com) to sell Lilla Rose products, recruit new Consultants, or advertise their business. All listings on EBay, or similar venue, are strictly prohibited.

Consultants will be terminated immediately for any participation in online auctions.

Special Event/Craft Show Policies Lilla Rose believes that home and office shows are the most effective and profitable way to promote your business.

However, we do permit participation in special events and leave to the Consultants the option of pursuing such shows at their own discretion. Some shows do well, others do not. We do encourage Consultants to weigh the costs and benefits before signing up as a vendor at an event and realize that it is possible to lose money at certain shows. These special events are a somewhat different format arena than home shows, and we have created a specific set of guidelines to be followed when applying to and selling at special events.

A “vendor event” is defined by Lilla Rose as an event at which Lilla Rose products will be sold along side the various, and possibly similar products of other vendors. At these shows vendor booths are rented by the Consultant for a fee. The shows are temporary and generally last from one to seven days. These shows may also be referred to as boutiques, fundraisers, fairs, expos and craft shows. Consultants are not permitted to sell Lilla Rose products at permanent venues such as flea markets and swap meets. For any questions about the acceptability or unacceptability of an event, please contact the Lilla Rose office for final approval.

Special Event/Craft Show Requirements You must register as an Independent Lilla Rose Consultant.

Inform the organizer of the Lilla Rose advertising policies and limitations.

Participation in the event is prohibited if the organizer cannot follow the Lilla Rose advertising policies.

Special Event/Craft Show Guidelines Please know that all such special events and shows are independent ventures and as such, Lilla Rose cannot mandate how each event organizer handles their shows.

Lilla Rose cannot and will not attempt to mediate any disputes between the event organizer(s) and/ or Consultants.

We ask that you respect the host’s decision to have their choice of whom, and how many Consultant(s) are invited to participate at the show.

Lilla Rose believes that by following these guidelines and always presenting a professional image, you will protect the reputation of the Company, enhance your success and add to the likelihood that you will be chosen to do the show again year after year.

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Frequently Asked Questions These and other frequently asked questions with their most current answers are listed in your Consultant Back Office, under the menu item Tools & Information Enhanced Tools Help FAQ. If you have a question you need the answer to please call or email the main office. Never hesitate to ask a question‌ that’s how knowledge spreads.

How can I obtain information on Lilla Rose products?

Consultants

Visit your replicated website's product page.

Switch to and read the product topic at top.

Contact your Lilla Rose sponsor.

Email Lilla Rose at consultants@lillarose.biz Call Lilla Rose at (888) 519-8889

How can I buy products?

Customers

You! Your knowledge of the product line is paramount and will show your customers and potential team members how serious you take your Lilla Rose business, and how valuable they are as a customer to you.

Visit your replicated website's product page.

Email Lilla Rose at help@lillarose.biz Call Lilla Rose at (888) 519-8889

Consultants

Buy products by logging into your Back Office, choosing Shopping under Main Menu.

Buy products by faxing/mailing in a product order form.

Buy over the phone by calling the Lilla Rose main office at (888) 519-8889.

Sell products on your free Replicated Website. Just give others your personal Lilla Rose URL and when they shop on your replicated website, you'll get credit!

Sell at home and work Parties with the help of Hostesses.

Sell at Shows, Farmers Markets, Trade Fairs, etc. See the shows topic at top and learn how to request shows.

Sell directly from the printed catalog.

Payment Accepted Credit/Debit Card Check Cash/Will Call

Customers

Buy products directly from your Personal Replicated Website by clicking Shop Now or Go Shopping on any page.

Buy products directly from you at a Show, Party, or from your printed catalog(s).

Earn free product by helping you sell! Hostesses can earn free product by coordinating a casual Party with their friends, family, and coworkers.

Credit/Debit Card

How do I become a Lilla Rose Consultant?

Interested parties are enrolled by the Consultant that originally told them about the Lilla Rose Opportunity. If you don't know or remember the Consultant that told you about the Opportunity, just call into the main office and we'll help you out. (888) 519-8889 enroll@lillarose.biz What kind of opportunities does Lilla Rose offer?

Lilla Rose offers the opportunity to share quality, unique hair and accessory items not widely available elsewhere. Become the owner of your own business and start generating cash flow via retail sales in customer's homes, fairs, and festivals.

Expand your opportunity by sponsoring and working with your own Downline consultants in order to generate passive income-getting paid while you sleep!

What is your product guarantee?

Lilla Rose guarantees all products for a period of 1 year from date of purchase.

Are the Flexi Clips Nickel free?

No, the Flexi clips are plated first with a copper base, then nickel and if another finish is used to complete it such as antique brass or antique gold, that is the final plating finish.

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Lilla Rose Frequently Asked Questions Lilla Rose Inc. Consultant Manual - May 2013

Does the gold, silver or antique brass finish “turn�?

Yes. All plated products eventually turn. The reason our clips are such a great value is we plate them to keep the cost down. Our legions of fans recognize this and have found that the "turned" versions actually have an antique look to them that makes the Flexi Clip look vintage. The antique nickel version will keep its finish much longer so if you are concerned about the "turn", you might want to consider that finish.

Do I have to inventory product?

No. Pre-purchasing product at wholesale allows you to sell "live" at Events and Shows, and more easily conduct Parties. However, pre-purchasing product is not a requirement to sell as a Lilla Rose Consultant.

Lilla Rose offers a Party Pack Enrollment Kit for $49.95 from which you can immediately begin marketing Lilla Rose product line using included samples, marketing materials, and training manuals. There are a few ways to sell without purchasing inventory such as showing and selling from the Lilla Rose printed product catalog, or your free Lilla Rose Replicated Website with built in shopping cart. If your customers order from your Personal Lilla Rose Replicated Website, or if you submit your customers catalog orders in your Consultant Back Office, no inventory is needed, and Lilla Rose does the shipping!

When do I receive my Compensation?

Retail Discounts

Retail Discounts are known as Base and Enhanced Discounts and you do not need to be Bonus Qualified to receive them.

When you will receive them can vary from instantly to at month end. See the chart below with common scenarios.

Transaction Description

When You Are Paid Base: Instantly, the Base Discount is the items wholesale price.

You are placing a wholesale order in Back Office

A Customer or Guest is placing an order on your Replicated Website, or one of your Party Carts You are submitting a Party order on behalf of your Party Guest You or your Hostess is submitting a Hostess order You are placing an order for a "Business Supply" or "Marketing Item" in Back Office

Enhanced: At month end. However, if you have accumulated $1,000 in monthly retail sales, you receive your full Enhanced Discount instantly during your qualifying purchase(s) from that date until month end.

Base & Enhanced: At month end.

Base & Enhanced: At month end.

Not Applicable. Hostess orders do not qualify for Retail Discounts Not Applicable. Only products sold for resale qualify for Retail Discounts

Bonuses

Unlike Discounts, Bonuses do require you to be Bonus Qualified in order to be able to receive any Bonuses due to you. Each Bonus also has it's own rules for determining whether or not they apply to a particular sale. See the Compensation Plan starting on page 56 of the Consultant Manual for more details on each Bonus. If your are eligible and you do qualify, here is when they pay:

Transaction Description

When You Are Paid

You are placing a wholesale order in Back Office A Customer or Guest is placing an order on your Replicated Website, or one of your Party Carts You are submitting a Party order on behalf of your Party Guest You or your Hostess is submitting a Hostess order You are placing an order for a "Business Supply" or "Marketing Item" in Back Office

All Bonuses: At month end.

Fast Start: Fast Starts also pays weekly. If you are Fast Start qualified but not Bonus Qualified, you have the entire month to become Bonus Qualified in order to receive Fast Start Bonuses for that calendar month.

Not Applicable. Hostess orders do not qualify for Bonuses Not Applicable. Only products sold for resale qualify for Bonuses Lilla Rose Frequently Asked Questions Lilla Rose Inc. Consultant Manual - May 2013

71

What is your business opportunity guarantee?

Product and sales aids shall be repurchased less a 10% restocking fee if the following criteria are a met: Independent Consultant purchased products for inventory purposes or sales aids while the Consultant agreement was in effect.

All items are in their original packaging and are a resalable condition.

All items are in the possession of the original Independent Consultant.

Items were purchased within twelve months.

What counts toward my Personal Bonus Value?

Bonus Value, or BV, is the assigned dollar value for calculation of bonuses on the products sold and as a measure for promotion to various ranks in the compensation plan. Bonus Value is usually based on minimum product wholesale but could be less on certain low margin products. Lilla Rose has assigned a BV to each order equal to Consultant minimum wholesale (70% of suggested retail).

Personal Bonus Value, or PBV (also PSV), is the Bonus Value of products you have purchased for resale, or your customers have purchased from your Replicated Website. Below is a table that shows common transactions and their Bonus Value consideration.

Transaction Description

Bonus Value Determinate

You place a wholesale order in Back Office

Bonus Value applies to all purchased items¹ that are intended for resale. This does not include business supplies² such as sales tools and marketing items.

Order placed by Customer or Guest on your Replicated Website, or one of your Party Carts

All items¹

You submit a Party order on behalf of Party Guest You or your Hostess submits a Hostess order You place an order for a "Business Supply" or "Marketing Item" in Back Office

All items¹ Not Applicable. Hostess orders do not count towards your PBV Not Applicable. Only products sold for resale qualify for Retail Discounts

¹ Excludes specially marked close-out sale items. These items are priced super low because Lilla Rose is no longer going to carry them. ² Includes everything under the "Consultant Business Supplies" menu in the Back Office Shopping Cart.

Why is the demonstration so important?

If you tell someone how great something is, that's one thing. If you allow them to experience it, directly, for them it is a whole new world.

You will not only have an easier time making a sale to each person, their experience generates genuine enthusiasm, which in turn makes your product (and you) something they want to tell all their friends about! If you say it, they can doubt it. If they experience it, they get it.

Make it your goal to give everyone a demonstration. Not everyone will say yes, so don't push. Everyone will watch a demonstration done on someone else, so demonstrate in a group setting any time you can. Look for the most willing in the group and start there. "How does that feel?", "Isn't it great!?" Make it a bit of a show. Their feedback will inspire and inform the whole group. You'll quickly find even the more timid in the group lining up to get their own demonstration. This is also the time you determine which size will work best for them. Please take the time to watch our Selling and Training videos, they are a wealth of information.

What other Frequently Asked Questions can I find online?

How can I identify the size of a Flexi clip?

How do I know what size hair clip to suggest?

How can I share items on Social Networking websites?

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Plus Documentation, Forms, Newsletters & News Archive all available in your Back Office, in the Help section of Enhanced Tools.

Glossary of Terms ACTIVE: Consultant that is in good standing with Lilla Rose, and has year-to-date personal sales of at least $29.

All Consultants have their first 12 months to become Active. Inactive Consultants will be given ample notice and opportunity to become active before the Termination process begins, see term Inactive herein.

ACTIVE LEG: An Active Leg must maintain $200 in BV for the month plus Group Volume associated with the rank title meeting the 40% Rule (See 40% Rule).

APPLICATION AND/OR AGREEMENT FORM: This is a legal binding agreement between you and the Company, which covers your rights, duties, and responsibilities and those of the Company. This is vital and necessary information.

The Policies & Procedures manual is an extension of this Agreement and should be read carefully.

BONUS: Not to be confused with Commission or Retail Discount. This is the remuneration that is based on the percentage of sales volume of others, Downline of the payee, in accordance with the respective provisions of the Compensation Plan.

BONUS QUALIFIED: You are Bonus Qualified when you are an Active Consultant in good standing and have met the minimum personal sales requirements for the applicable pay period.

BONUS VALUE (BV): The assigned dollar value for calculation of bonuses on the products sold and as a measure for promotion to various ranks in the compensation plan. Bonus Value is usually based on minimum product wholesale but could be less on certain low margin products. Lilla Rose has assigned a BV to each order equal to Consultant minimum wholesale (75% of suggested retail) BUSINESS KIT: Tools, forms, tapes, brochures, manuals and application forms, relative to the Lilla Rose business opportunity, needed to begin your new business.

COMMISSION: Not to be confused with Bonus or Retail Discount. Although it is profit, the difference in the amount of money that a Consultant earns when a product is sold at Retail but purchased less their Retail Discount, is Commission. In many cases, the difference in this amount will match closely to your Retail Discount.

COMPANY: The Lilla Rose corporate or home office.

COMPENSATION PLAN: (Sometimes called the “Marketing Plan”.) The official set of definitions and performance requirements, as published in The Lilla Rose Consultant Manual by which The Lilla Rose pays Consultants.

COMPRESSION: Unilevel Bonuses are earned by and paid to Consultants that are Bonus Qualified. When a Consultant fails to meet the minimum maintenance requirements for earning bonuses at his or her titled position, the Company’s computer searches downline until it finds a Consultant who is Bonus Qualified no matter how far downline it has to search. That qualified Consultant’s personal volume for the Unilevel plan then “Compresses” to include all the volume that may have been generated by all non-qualified Consultants in between to create the next level until it has satisfied its payout requirements with qualified Consultant levels. The term “Compression” is used to describe the temporary condition that occurs when a Consultant fails to meet the maintenance requirements for a particular pay period and the term. (See also “Rollup”) CONSULTANT: An independent contractor who has signed a Consultant Application and Agreement form with the Company, and whose Consultant Application and Agreement the Company has accepted. Upon acceptance of such Agreement by the Company, a Consultant is eligible to purchase the Company’s products at a wholesale price for resale and can enroll and sponsor other people into their Downline retail Sales Organization. A Consultant is eligible to earn Commissions and Bonuses in accordance with the terms and provisions of the Compensation Plan.

DIRECT: Refers to a Consultant that you have personally and directly enrolled. (See “Leg”) DOWNLINE: Those people directly sponsored by a Consultant, plus all the people whose line of sponsorship resulted from and came through that Consultant. Your Downline consists of all Consultants on your Level 1, Level 2, Level 3, etc, through unlimited depth. (See “Level”) Lilla Rose Glossary of Terms Lilla Rose Inc. Consultant Manual - May 2013

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ENROLL: To sign and submit a Consultant Application and Agreement form to Lilla Rose for the purpose of becoming a Consultant for the Company.

ENROLLEE: An enrolling or newly enrolled Consultant.

ENROLLER: The Lilla Rose Consultant, who introduces an Enrollee to the opportunity, explains the program, assists in the enrollment, and provides preliminary training to the Enrollee.

FRONT LINE: Refers to all Consultants that are personally sponsored and/or enrolled (Level 1) by a particular Consultant or by the Company. (See also “Direct”) GENEALOGY: The complete set of relationships (as defined by “Levels” and “Legs”) between a Consultant and his or her Upline and Downline. It is the “family tree” of any Consultant.

GENEALOGY REPORT: A computer printout of your Downline.

INACTIVE: Consultant that has not accumulated year-to-date personal sales of at least $29. Inactive Consultants will be given ample notice and opportunity to become Active before the Termination process begins, detailed in section 43 of Policies & Procedures.

I.D.#: The identification number used by the Company to identify each Consultant for Compensation Plan purposes.

INDIRECT: All Consultants in your Downline that are not directly enrolled by you. (See also “Downline”).

LEG: Each personally sponsored Consultant on your first level is part of your total Downline and is a separate “Leg.” You and your entire Sales Organization (Downline) are one “Leg” to your sponsor.

LEVEL: The people you personally enroll and/or sponsor are your first level. The ones they enroll and/or sponsor are your second level. The ones your second level sponsors are your third level, etc.

MAINTENANCE: The standard of performance involving a Consultant that is required for that Consultant to continue being “Paid As” a particular rank after meeting the initial qualification requirements for that rank.

MARKETING PLAN: In Network Marketing this is also known as the Compensation Plan. It is usually depicted in a graphic manner in a promotional brochure and in detail in the Company’s manual.

MULTI-LEVEL MARKETING (MLM): Another name for network marketing. (See “Network Marketing”) NETWORK MARKETING: A non-storefront type of selling where a manufacturer or its Consultants (a network marketing company) sells directly to the consumer through a “network” of independent contractors rather than through conventional outlets. Consultants multiply themselves directly and indirectly by sponsoring other Consultants and are paid accordingly on multiple levels.

OPPORTUNITY MEETING: A periodic meeting, or gathering of Network Marketing Consultants for the purpose of introducing and explaining the business opportunities to prospects.

PAID AS: Consultants that have earned the various title designations according to their sponsoring and sales performance will retain those titles indefinitely even if they do not meet the specified bonus qualifications in a pay period. However, they will be PAID AS the level at which they meet bonus qualifications for the pay period.

PERSONAL BONUS VOLUME (PBV): The accumulated Bonus Value of all products purchased by you, along with the BV of all products purchased by any retail and Preferred Customers who you have personally enrolled is combined during a given pay period to determine your “Personal Bonus Value” (PBV) for that pay period.

PERSONAL GROUP: For purposes of this Compensation Plan, a Personal Group consists of a Consultant at the top of a Sales Organization, and every Consultant below that person in that Organization, through each and every Leg. POLICIES & PROCEDURES: The governing rules of Lilla Rose that define the relationship between the Company and its Consultants, as well as between Consultants and other Consultants. The Policies & Procedures are specifically incorporated into and made a part of the Consultant’s Agreement, which each Consultant must sign in order to enroll.

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PROSPECT: A person to whom you want to offer the Lilla Rose business opportunity.

QUALIFIED LEG: A leg that contains at least $200 in Group Volume somewhere in the depth of the leg is considered to be a Qualified Leg. RANK: A new title is claimed at each level with increased percentages of bonus participation. You will always carry the title of the highest rank you reach, but are paid at the rank for which you qualify each month.

RECRUITING: Inviting others to join your organization to share the same opportunity.

RENEWAL: Lilla Rose Consultants must renew their Consultant Agreement each year no later than the anniversary date of their joining the Company. If a Consultant does not renew their relationship with Lilla Rose, they will be dropped from the computer files and any sponsored or enrolled Consultants will be moved up to the next active Consultant. If they wish to rejoin Lilla Rose at a later date, they may not reclaim their previous rank or Downline, but must join at the standard entry level in the program. (See “Roll-up”) RETAIL: Sales of the Lilla Rose products to the end users of those products. Retail sales are the foundation of your Lilla Rose business, and the ultimate purpose of all other activities within the business, including enrolling, sponsoring, training, etc.

RETAIL DISCOUNT: Not to be confused with Commission or Bonus. Regardless of your rank, you have the opportunity to purchase Lilla Rose products at a Discount off the MSRP, Manufacturers Suggested Retail Price.

ROLL-UP: The permanent form of Compression. When a Consultant terminates his Consultant Agreement or does not exercise his yearly renewal, his entire Downline rolls upline to his sponsor or the next qualified person and his name is deleted from the Company records. (See “Compression”).

70% RULE: Seventy per cent (70%) of products obtained from Lilla Rose must be retailed or consumed before reorders are made. (See Policies and Procedures) SALES ORGANIZATION: Your Sales Organization consists of you and the people that you directly enroll as Consultant’s, and the people that they enroll as Consultants, and so on, and so on, and so on. There is no limit to how wide or deep that your Sales Organization can grow. (See “Downline” and “Leg”) SPONSOR: A Consultant who agrees to be responsible for helping and developing another Consultant with his business by teaching the new Consultant how to do the business, and by assisting, encouraging and supporting him. Every Consultant must be sponsored, either by another Consultant in good standing with the Company, or by the Company itself. As consideration for being a Sponsor, the Consultant may earn bonuses based on the PBV of Consultant’s in their Downline, to the extent that the Sponsor is qualified. It is important to note that in some other Network Marketing companies, the term “Sponsor” may include the act of introducing prospective new Consultants to the opportunity and helping them sign up as new Consultants. In Lilla Rose, this is called “enrolling”. While bonuses may be earned for being a Sponsor, no payment is ever made for recruiting or enrolling. (See “Enroll”).

SUGGESTED RETAIL PRICE: The retail price as suggested by the Company. A Consultant may sell the product or service for whatever price he or she chooses.

UNILEVEL: The part of the Compensation Plan that is based on fixed Sponsorship genealogical relationships, i.e.

Override Bonuses.

UPLINE: The term “upline” refers to that portion of either your Enroller or Sponsor genealogy that precedes you.

Your Upline consists of the Consultant who is your Enroller and/or Sponsor, and his Enroller and/or Sponsor, and his Enroller and/or Sponsor, etc., all the way to the Company. (See also “Enroller” and “Sponsor”) 40% Rule: No more than 40% of the Group Volume can come from any one leg

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Policies & Procedures 1. Lilla Rose Inc, hereinafter “Company,” is a direct selling Company marketing hairstyling accessories, personal and fashion accessories and other consumer products and services to the consumer through independent distributors. The policies and procedures herein are applicable to all independent distributors of the Company.

2. A distributor is one who has completed a Company application and agreement and has been accepted by the Company as a distributor. The Company reserves the right to accept or reject anyone as a distributor.

3. All distributors must be the age of majority in the state in which they distribute Company products and services.

4. Unless waived in writing by the Company upon application, the Company will consider each married couple a single distributor. Husbands and wives may not sponsor each other directly or indirectly, nor have different sponsors. If one spouse is already a distributor, the nonparticipating spouse may elect to become a distributor, but must join the same distributorship as his or her spouse. The Company reserves the right to reject any applications for new distributorships or applications for renewal. Should a husband/wife distributor divorce, they should notify the Company as to how the distributorship is to be managed thereafter. Otherwise, the Company will recognize the final judicial or adjudicatory disposition of the distributorship.

5. Distributors are independent marketing representatives of the Company and are not to be considered purchasers of a franchise or a distributorship. The agreement between the Company and its distributors does not create an employer\employee relationship, agency, partnership, or joint venture between the Company and the distributors. Each distributor shall hold harmless the Company from any claims, damages or liabilities arising out of distributor’s business practices. Company distributors have no authority to bind the Company to any obligation. Each distributor is encouraged to set up his\her own hours and to determine his\her own methods of sale, so long as he\she complies with the policies and procedures of the Company.

6. Transaction Submission Integrity. It is essential to the success of the Company, its distributors and customers that submissions of transactions to the Company maintain integrity of communication. It is to be expected that all transactions submissions to the Company, including, but not limited to, distributor applications, distributor communication, distributor financial transactions and consumer transactions, be submitted by the individual or entity involved in the transaction. Third party submission of any and all transactions submissions is prohibited.

A distributor may not communicate any transactions submissions on behalf of another distributor, distributor applicant or customer. A distributor may not use his or her credit card or bank account on behalf of another individual or distributor. This rule is applicable to any and all forms of transactions submissions, including, but not limited to, online, telephone, fax, email, etc.

7. In the conduct of its business, the distributor shall safeguard and promote the reputation of the products and services of the Company and shall refrain from all conduct which might be harmful to such reputation of the Company or to the marketing of such products and services or inconsistent with the public interest, and shall avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices. A distributor shall not interfere with, harass or undermine other distributors and, at all times, shall respect the privacy of other distributors. A distributor must not disparage the Company, its affiliate entities, other Company distributors, Company products and/or services, the marketing and compensation plans, or Company employees.

8. The company’s program is built upon retail sales to the ultimate consumer. The company also recognizes that distributors may wish to purchase product or service in reasonable amounts for their own personal or family use. For this reason, a retail sale for bonus purposes shall include sales to nonparticipants, as well as sales to distributors for personal or family use which are not made for purposes of qualification or advancement.

It is company policy, however, to strictly prohibit the purchase of product or large quantities of inventory in unreasonable amounts solely for the purpose of qualifying for bonuses or advancement in the marketing program. Distributors may not inventory load nor encourage others in the program to load up on inventory.

Distributors must fulfill published personal and Downline retail sales requirements, including requisite retail sales to nonparticipants, as well as supervisory responsibilities, to qualify for bonuses, overrides or advancements.

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9. Any distributor, who sponsors other distributors, must fulfill the obligation of performing a bona fide supervisory, distributing and selling function in the sale or delivery of product to the ultimate consumer and in the training of those sponsored. Distributors must have ongoing contact, communication and management supervision with his or her sales organization. Examples of such supervision may include, but are not limited to: newsletters, written correspondence, personal meetings, telephone contact, voice mail, electronic mail, training sessions, accompanying individuals to Company training, sharing genealogy information with those sponsored. Distributors should be able to provide evidence to the Company semiannually of ongoing fulfillment of sponsor responsibilities.

If a distributor is an Enroller in the marketing program entitled to Enroller bonuses, then the Enroller is obligated to the same responsibilities of supervisory, communication and training activities with respect to distributors he or she has enrolled, irrespective of whether the Enroller is also the Sponsor of those distributors.

10. Company Retail/70 Percent Policy. The Company sales and marketing program is based upon retail sales to the ultimate consumer. Every aspect of the program is designed to assist our distributors in the marketing of fine products and services to the general consuming public. As a dual consumer safeguard, of the utmost importance to the Company is the policy that distributors should purchase products and services in commercially reasonable quantities, and under no circumstances may distributors cause others to purchase products or services in amounts that are not reasonably expected to be sold to the consuming public or in unreasonable amounts for personal or family use. In furtherance of these policies, the Company has adopted specific rules on retail sales and retailing referenced as the Company retail/70 percent rules. In the interest of protecting the consumer and the opportunity of its distributors, the Company enforces this rule through a verification program.

Company Retail/70 Percent Rule. a. Retail Rule.

Although the primary function of the Company is to sell products and services to the general consuming public, the Company realizes that its distributors may wish to purchase product for personal or family use in reasonable amounts. For this reason, the Company defines a retail sale to include sales to nonparticipants, as well as purchases for personal or family use in reasonable amounts, which are not made solely for purposes of qualification or advancement. This is a standard followed by leading direct selling companies. Notwithstanding this policy, the Company, in order to specifically further retail selling, has adopted a requirement that a distributor will not be eligible for bonuses or overrides unless he or she has made at least five sales per month to nonparticipant retail customers. b. 70 Percent Rule.

As with other leading direct selling companies, the Company has adopted a 70 percent rule. Under this rule, company distributors may not order additional product unless they have sold or used for personal or family use at least 70 percent of previously purchased inventory-type product. This verification form is also intended to support the 70 percent rule policy.

Retail Sales/70 Percent Rule Audit Verification Program.

In its effort to support and enforce the retail sales/70 percent rule, the Company on a quarterly basis will conduct random audit verification follow-ups. Representatives of the Company will contact distributors to further verify compliance with the retail sale/70 percent rule. Distributors should maintain records and be prepared to assist Company representatives in their task.

11. Sales Volume Qualification by Order Taking. As with other leading direct selling companies, the Company has adopted minimum personal and group sales volume requirements. With respect to tangible products, which may be offered for purchase for resale, minimum sales volume requirements may also be fulfilled by taking orders from retail customers which will be fulfilled or drop-shipped by the Company directly to the retail customer.

12. All distributors are responsible for paying local, state and federal taxes due on earnings from commissions or any other earnings generated as a seller of Company products and services. The Company will collect sales tax on behalf of the distributor, then report and distribute applicable sales taxes to the taxing entity for the state in which the sale is made. Distributors may apply for a waiver of this practice by submitting a copy of their sales and use tax number (and a statement that they are wholesale purchasers purchasing for resale) acquired through their local taxing authorities.

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13. Company distributors shall not advertise Company products and services and/or marketing plans except as specifically approved by the Company. Company distributors agree to make no false or fraudulent representations about the Company, the products, the Company compensation plan, or income potentials.

14. All distributors are required to purchase a sales kit at the time of submission of their distributor application to the Company. The sales kit is sold “at Company cost.” This sum is not a service or franchise fee, but rather is strictly to offset costs incurred by the Company for educational and business materials required for an independent distributor of the Company. No product or service purchase by the distributor is required. Data processing fees, if any, will be deducted from commissions and bonuses.

15. Trademark, Trade Names, Advertising. a. The name of the Company and other names as may be adopted by the Company are proprietary trade names and trademarks of the Company. As such, these marks are of great value to the Company and are supplied to distributor for distributor’s use only in an expressly authorized manner. Distributor agrees not to advertise the Company products or services in any way other than the advertising or promotional materials made available to distributor by the Company. Distributor agrees not to use any written, printed, recorded or any other material in advertising, promoting or describing the products or services or the Company marketing program, or in any other manner, any material which has not been copyrighted and supplied by the Company, unless such material has been submitted to the Company and approved in writing by the Company before being disseminated, published or displayed. b. The distributor, as an independent contractor, is fully responsible for all of his\her verbal and written statements made regarding the product or service and marketing program which are not expressly contained in writing in the current distributor agreement, and advertising or promotional materials supplied directly by the Company. Distributor agrees to indemnify the Company and hold it harmless from any and all liability including judgments, civil penalties, refund, attorney fees, court costs or lost business incurred by the Company as a result of distributor’s unauthorized representations. c. The Company will not permit the use of its copyrights, designs, logos, trade names, trademarks, etc., without its prior written permission. d. All Company materials, whether printed, on film, produced by sound recording, or on the internet, are copyrighted and may not be reproduced in whole or in part by distributors or any other person except as authorized by the Company. Permission to reproduce any materials will be considered only in extreme circumstances. Therefore, a distributor should not anticipate that approval will be granted. e. A Company distributor may not produce, use or distribute any information relative to the contents, characteristics or properties of Company product or service which has not been provided directly by the Company. This prohibition includes but is not limited to print, audio or video media. f. A Company distributor may not produce, sell or distribute literature, films or sound recordings which are deceptively similar in nature to those produced, published and provided by the Company for its distributors.

Nor may a distributor purchase, sell or distribute non-company materials which imply or suggest that said materials originate from the Company. g. Any display ads or institutional or trademark advertising copy, other than covered in the foregoing rules, must be submitted to the Company and approved in writing by the Company prior to publication. h. All advertising copy, direct mailing, radio, TV, newspaper and display copy must be approved in writing before being disseminated, published or displayed with the exception of blind ads where no reference is made to the Company name or product name.

16. Internet and Website Policy.

The Company maintains an official corporate website. Distributors are allowed to advertise on the internet through an approved Company program which allows distributors to choose from among Company home page designs that can be personalized with the distributor’s message and the distributor’s contact information. These websites link directly to the Company website giving the distributor a professional and Company-approved presence on the internet. Only these approved websites may be used by distributors. No distributor may

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independently design a website that uses the names, logos, product or service descriptions of the Company, nor may a distributor use “blind” ads on the internet making product or income claims which are ultimately associated with Company products, services or the Company’s compensation plan. Any person using Company names, logos, trademarks, etc., on the internet or any other advertising medium, except as permitted by Company Rules and Regulations, shall be subject to immediate discipline, including termination of distributor status.

17. Prohibition of Sales on Unauthorized Internet Sites. Except with written authorization from the Company, a distributor may not sell nor promote Company products on unauthorized internet sites, including, but not limited to auction sites such as eBay, nor internet shopping sites, nor internet malls.

18. Unsolicited Email. The Company does not permit distributors to send unsolicited commercial email to others unless such emails strictly comply with applicable laws and regulations including, without limitation, the federal CAN SPAM Act.

Any email sent by a distributor that promotes the Company, the Company opportunity or Company products and services must comply with the following: a. There must be a functioning return email address to the sender. b. There must be a notice in the email that advises the recipient that he or she may reply to the email, via the functioning return email address, to request that future email solicitations or correspondence not be sent to him or her (a functioning “opt-out” notice). c. The email must clearly and conspicuously disclose that the message is an advertisement or solicitation. d. The use of deceptive subject lines and/or false header information is prohibited. e. All opt-out requests, whether received by email or regular mail, must be honored. If a distributor receives an optout request from a recipient of an email, the distributor must forward the opt-out request to the Company.

19. Unsolicited Faxes and Spam. Except as provided in this section, distributors may not use or transmit unsolicited faxes, mass email distribution, unsolicited email, or “spamming” or use an automatic telephone dialing system relative to the operation of their Company businesses. Unsolicited broadcast distribution of email or other distribution that may be defined as “bulk mail” or “SPAM” is strictly prohibited. Distributors may send “general mailings” only to other distributors in their Downline organizations and their direct up-line sponsors. Any other bulk use of email is prohibited.

The term “automatic telephone dialing system” means equipment, which has the capacity to: a. Store or produce telephone numbers to be called, using a random or sequential number generator; and b. To dial such numbers.

The terms “unsolicited faxes” and “unsolicited email” mean the transmission via telephone facsimile or electronic mail, respectively, of any material or information advertising or promoting the Company, its products, its compensation plan or any other aspect of the Company which is transmitted to any person, except that these terms do not include a fax or email: a. To any person with that person’s prior express invitation or permission; or b. To any person with whom the distributor has an established business or personal relationship. The term “established business or personal relationship” means a prior or existing relationship formed by a voluntary two-way communication between a distributor and a person, on the basis of: (1) An inquiry, application, purchase or transaction by the person regarding products offered by such distributor; or (2) A personal or familial relationship, which relationship has not been previously terminated by either party.

20. Retail Establishments. Company products or services may only be displayed and sold in retail establishments where the nature of the business is to make appointments with customers (such as salons, doctors’ offices, and health clubs where appointments are made for personal training or classes are scheduled) the sale of such products or services within such retail facilities must be conducted by a distributor and must be preceded by Lilla Rose Policies & Procedures Lilla Rose Inc. Consultant Manual - May 2013

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a discussion where the distributor introduces the prospect to the products or services and opportunity just as they would if they had met outside of the retail facility. Company produced literature, banners, or signage only may be displayed on a shelf, counter, or wall and must be displayed by itself. Products or services may not be sold from a shelf or taken from a display for purchase by a customer. Company products or services may not be sold in any retail establishment, even by appointment, if competitive products or services are sold in the establishment. From time to time, the Company may announce policies and rules that expand or contract restrictions on sales in retail establishments.

21. Trade Shows. With written authorization from the Company, Company products or services and opportunity may be displayed at trade shows by distributors. Request for participation in trade shows must be received in writing by the Company at least two weeks prior to the show. Written authorization from the Company must be received before participating in the trade show. Unless written authorization is secured from the Company, Company products or services and opportunity are the only products or services and/or opportunity that may be offered in the trade show booth. Only Company produced marketing materials may be displayed or distributed. No distributor may sell or promote the Company’s products or services or business opportunity at flea markets, swap meets, or garage sales.

22. International Sales. No independent distributor may export or sell directly or indirectly to others who export the Company’s products, literature, sales aids or promotional material relating to the Company, its products or services or the Company’s program from the United States or its possessions or territories to any other country. Independent distributors who choose to sponsor internationally may do so only in countries in which the Company has registered to operate its business and must comply fully with the Rules of Operation of a Company distributorship in that country. Any violation of this rule constitutes a material breach of this contract and is grounds for immediate termination of the distributorship.

23. The Company reserves the right to approve or disapprove distributor’s change of business names, formation of partnerships, corporations, and trusts for tax, estate planning, and limited liability purposes. If the Company approves such a change by distributor, the organization’s name and the names of the principals of the organization must appear on the distributor application agreement along with a social security number or federal identification number. It is prohibited to make changes to attempt to circumvent or violate Company rules on raiding, solicitation, targeting, cross-sponsoring or interference.

24. The independent distributor agreement may be canceled at any time and for any reason by a distributor notifying the Company in writing of the election to cancel.

25. If a distributor elects not to renew his\her distributor agreement, all rights to bonuses, marketing position and wholesale purchases cease. The terminated distributor’s sales organization shall be transferred to his\her sponsor.

26. If the independent distributor has purchased products for inventory purposes or mandatory sales aids while the distributor agreement was in effect, all products in a resalable condition then in possession of the independent distributor, which have been purchased within twelve (months) of cancellation, shall be repurchased. The repurchase shall be at a price of not less than ninety percent (90%) of the original net cost to the participant returning such goods, taking into account any sales made by or through such participant prior to notification to the Company of the election to cancel. Buyback is 12 months in Massachusetts, Maryland, Montana, Georgia, Louisiana, Wyoming, Texas, Oklahoma, Idaho, Utah, Washington and Puerto Rico. In addition, the company will honor statutory mandated buyback requirements of every jurisdiction.

27. The Company shall be entitled to change product or service prices at any time and without notice, and to make changes in the statement of policy and procedures.

28. Each distributor shall comply with all state and local taxes and regulations governing the sale of Company products or services.

29. Notwithstanding the Company’s longer retail customer guarantee policy, all retail sales must comply with the FTC Three-Day Cooling Off Rule which requires statutory language and notice of cancellation on the retail sales receipt. The three-day right of cancellation must be orally explained to the customer and the customer must receive two copies of the notice of cancellation form.

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30. Company distributors, as independent contractors, are free to sell or market consumer products or services other than the company‘s products with certain restrictions; however, a company distributor shall not engage in any recruiting or promotion activity that targets company distributors for opportunities or products of other direct selling companies or business opportunities, either directly or indirectly, by themselves or in conjunction with others, nor shall a distributor participate, directly or indirectly, in interference, raiding or solicitation activity of Company distributors for other direct selling companies or business opportunities. Additionally, no recruiting for other business ventures is authorized at any company function. Failure to comply with this recruiting and cross-sponsoring policy shall cause a company Consultant’s distributorship to be subject to cancellation.

31. On a periodic basis, the Company will supply data processing information and reports to the distributor, which will provide information concerning the distributor’s downline sales organization, product purchases and product mix. The distributor agrees that such information is proprietary and confidential to the company and is transmitted to the distributor in confidence. The distributor agrees that he or she will not disclose such information to any third party directly or indirectly, nor use the information to compete with the company directly or indirectly during or after the term of the agreement. The distributor and the company agree that, but for this agreement of confidentiality and nondisclosure, the Company would not provide the above confidential information to the distributor. A distributor seeking to sell his/her distributorship must acknowledge and agree to this provision prior to the finalization of the sale of their distributorship.

32. Vendor Confidentiality. The Company’s business relationship with its vendors, manufacturers, and suppliers is confidential. A distributor shall not contact, directly or indirectly, speak to or communicate with any representative of any supplier or manufacturer of the Company except at a Company sponsored event at which the representative is present at the request of the Company. Violation of this regulation may result in termination and possible claims for damages if the vendor/manufacturer’s association is compromised by the distributor contact.

33. Change in Status.

Marriage: Two Company distributors who marry after having established their own individual distributorships may continue to operate their existing distributorships, as long as they do not originate from the same line. If they originate from the same line, then the married couple has the choice of either selling or resigning from one of their distributorships, at their discretion.

Divorce: Should a married couple become divorced, they agree to notify the Company as to who will assume responsibility for the distributorship in one of the following manners: a. Written notarized agreement signed by both parties indicating who will retain the distributorship. b. A court order delineating who receives custody over the distributorship. c. Both parties may choose to retain their joint distributorship and operate it as a partnership.

The divorced distributor may apply for a new distributorship without having to wait 12 months.

Death: Upon the death of a distributor, the rights and responsibilities of the distributorship may be passed on to the rightfully legally documented heir as long as that person has filled out a new distributor application and completed the required training.

Disability: Should a distributor become disabled to the extent that he/she can no longer fulfill the required duties of the Company distributor, such disabled Consultant’s legal representative or conservator shall: a. Contact the Company within thirty (30) days of the disability and advise the company of the distributor’s status and the plans for future management or cancellation of the distributorship. b. Provide notarized or court confirmed copy of appointment as legal representative or conservator. c. Provide notarized or court confirmed copy of document establishing right to administer the company business. d. Should the legal representative or conservator plan to continue the business of the distributorship, then he/ she shall fill out a new distributor application and receive the required training consistent with the disabled distributor’s level at the time of disability. These requirements shall be satisfied within a deadline of six months.

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34. Sale or Transfer. A distributor may not sell, assign or otherwise transfer his or her distributorship, marketing position or other distributor rights without written application and approval by the Company. This paragraph is also applicable to transfer of any interest in an entity that owns a distributorship, including but not limited to corporation, partnership, trust or other non-individual entity. The potential buyer must be at the equivalent or higher rank as the selling distributor or have been a Company distributor for at least a one year period prior to the sale. The distributorship must be offered in writing first to the distributor’s sponsor. If the sponsor declines the offer, the distributor may offer the distributorship for sale to other qualified Company distributors, but only on the same terms and conditions as offered to the sponsor. A distributor who sells his or her distributorship shall not be eligible to re-qualify as a distributor for a period of at least six months after the sale. The Company reserves the right to review the sale agreement and to verify waiver from the Upline sponsor in the event the Upline sponsor declines to purchase the distributorship.

A distributor may not add a co-applicant to their distributorship and thereafter, remove their name from the distributorship, as an effort to circumvent the Company’s sale, assign, delegate or merger procedure. The primary distributor must wait twelve (12) months after adding a co-applicant to the distributorship before they are allowed to remove their name from the distributorship. It is prohibited to use a sale or transfer to attempt to circumvent Company policy on raiding, soliciting, cross-sponsoring or interference.

For the term of three (3) years after sale or transfer, a distributor agrees that he/she shall not, directly or indirectly, disrupt, damage, impair or interfere with the business of Company, whether by way of interfering with, or raiding its employees or distributors, disrupting its relationship with customers, agents, representatives, distributors, suppliers, vendors or manufacturers or otherwise. “Disrupting” or “interfering” shall include, but not be limited to, direct or indirect solicitation or recruitment for other direct selling business opportunities or products or services of other direct selling companies. A distributor seeking to sell or transfer his/her distributorship must acknowledge and agree to this provision prior to the finalization of the sale or transfer of their distributorship.

35. This statement of policies and procedures is incorporated into the independent distributorship agreement and constitutes the entire agreement of the parties regarding their business relationship.

36. The Company expressly reserves the right to alter or amend prices, Rules and Regulations, Policies and Procedures, product availability and compensation plan. Upon notification, in writing, such amendments are automatically incorporated as part of the agreement between the Company and the distributor. Company communication of changes may include, but shall not be limited to mail, email, fax, posting on the Company website, publication in company newsletters or magazines, etc.

37. Non-Individual Ownership. A partnership or corporation may be a distributor. However, no individual may participate in more than one (1) distributorship in any form without express written permission from the Company. Only in the most extreme and extraordinary circumstances will this be considered. a. A distributorship may change status under the same sponsor from individual to partnership or corporation or from partnership to corporation with proper and complete documentation. b. To form a new distributorship as a partnership or corporation or to change status to one of these forms of business, you must request a partnership/corporation form from the corporate home office. This form must be submitted detailing all partners, stockholders, officers or directors in the partnership or corporation. The partner or officer who submits the form must be authorized to enter into binding contracts on behalf of the partnership or corporation. In addition, by submitting the partnership/corporation form, you certify that no person with an interest in the business has had an interest in a distributorship within three (3) months of the submission of the form (unless it is the continuation of an existing distributorship that is changing its form of doing business).

38. Individual and Entity Ownership Information. a. An individual can have only one distributorship in the company. He/she may not own any other distributorship, either individually or jointly, nor may he/she participate as a partner, owner, stockholder, trustee, director, or association member in more than one distributorship in any form.

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b. An individual shall provide the Company with a Social Security Number or a Taxpayer Identification Number (TIN) on an IRS W-9 form. No individual operating under a fictitious name and no partnership, corporation or other business entity may become a company distributor without submitting an “Entity Information” form following enrollment of proprietorship, corporation, Limited Liability Corporation (LLC), trust or partnership.

1. Proprietorship: A copy of fictitious name filing must be submitted, plus a W-9 form.

2. Corporation: Copies of articles of incorporation are required, including the page with state seals and notarization. These articles will show who the principals are and prove validation of Federal ID Number/ Business Number/E.I.N, plus a W-9 form.

3. LLC: IRS acceptance only. The name on the IRS acceptance is required to state the LLC in order to use it as an LLC, plus a W-9 form.

4. Trust: An affidavit of trust with the notarized copy of the power of attorney is necessary. If Federal ID Number is to be used and is not noted in the affidavit, an IRS acceptance will be required, plus a W-9 form.

5. Partnership: To register as a partner, complete the partnership portion of the Entity Information form, along with all signatures that apply, plus a W-9 form.

39. Entity Guarantee for Owners: Although Company has offered distributors the opportunity to conduct their distributorship as corporate, LLC, trust or partnership entity, those entities are under the control of its owners and principals, the actions of individual owners or beneficiaries as they may affect Company’s business.

Therefore, it is agreed that actions of individual owners or beneficiaries as they may affect Company and the distributorship are also critical to Company’s business. Therefore it is agreed that actions of the ownership entity shareholders, officers, directors, trustees, beneficiaries, agents, employees or other related or interested parties and the actions of such parties, which are in contravention to Company’s policies shall be attributable to the corporate, LLC, trust or partnership entity.

In the event that any of the ownership entity shareholders, officers, directors, trustees, beneficiaries, agents, employees or other related parties shall terminate ownership interests in the distributorship, any breaching actions by such parties that continue to have a beneficial financial interest, directly or indirectly, in the distributorship shall be attributable to the distributorship.

40. Members of Same Household; Responsibility. Members of distributor’s household may operate together as one Company distributorship, but may not become separate Company distributors. Household is defined as husband, wife, and dependents. Note: Children of legal age to contract and at least 18 years of age are not considered a part of their parents’ household.

Company recognizes that members of the same household may belong to competing direct selling opportunities.

Although the actions of the parties are normally in good faith, in some circumstances, there is an abuse of relationships in which the non-company household member is engaged in recruitment, solicitation or raiding of the Company sales organization. Since the household member that has an ownership interest in the Company distributorship is in the best position to be responsible to prevent raiding or cross-sponsoring activity by their co-household member, the cross-recruiting activity of the non-company household member shall be attributed to the Company distributorship, subjecting the distributorship to discipline or termination.

41. Disciplinary Actions. A distributor’s violation of any policies and procedures, the agreement, terms and conditions or any illegal, fraudulent, deceptive, or unethical business conduct may result, at the Company’s discretion, in one or more of the following disciplinary actions: a. Issuance of a written warning or admonition. b. Imposition of a fine, which may be imposed immediately or withheld from future compensation checks. c. Reassignment of all or part of a distributor’s organization. d. Suspension, which may result in termination or reinstatement with conditions or restrictions. e. Termination of the distributor.

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42. The Company reserves the right to terminate any distributorship at any time for cause when it is determined that the distributor has violated the provisions of the distributor agreement, including the provisions of these policies and procedures as they may be amended or the provisions of applicable laws and standards of fair dealing. Such involuntary termination shall be made by the Company at its discretion. Upon an involuntary termination, the Company shall notify the distributor by mail at the latest address listed with the Company for the distributor. In the event of a termination, the terminated distributor agrees to immediately cease representing him/herself as a distributor.

43. Termination.

Termination Process: a. When a decision is made to terminate a distributorship, the Company will inform the distributor in writing that the distributorship is terminated immediately, effective as of the date of the written notification. The termination notice will be sent by certified mail to the distributor’s address on file with the Company. b. The distributor will have 15 days from the date of mailing of the certified letter in which to appeal the termination in writing, and provide written response to the finding of violations of Company agreement, policies and/or rules. The distributor’s appeal and/or response correspondence must be received by the Company within 20 days of the Company’s termination letter. If the appeal is not received within the 20 day period, the termination will be automatically deemed final. c. If a distributor files a timely appeal of termination, the Company will review and reconsider the termination, consider any other appropriate action, and notify the distributor of its decision. The decision of the Company will be final and subject to no further review. In the event the termination is not rescinded, the termination will be effective as of the date of the Company’s original termination notice.

Termination by Inactivity: By the end of their first year, if a Consultant has not accumulated, or thereafter fails to maintain a minimum of $29 in year-to-date personal sales, they will be notified and set to Inactive status. Upon this written notice to the Consultant, they will have thirty days to become Active without penalty. After that thirty days, if the Consultant remains Inactive, their Replicated URL will be released back to the selection pool, and they will have another 11 months to reactivate their Consultant status by paying a non refundable $29 reactivation fee to Lilla Rose. If a Consultant remains Inactive past this one year period, their account will be Terminated as noted in 43 "Termination Process".

44. All distributors have the right to sponsor others. In addition, every person has the ultimate right to choose his/ her own sponsor. If two distributors should claim to be the sponsors of the same new distributor, the Company shall regard the first application received by the corporate home office as controlling. a. As a general rule, it is good practice to regard the first distributor to meaningfully work with a prospective distributor as having first claim to sponsorship, but this is not necessarily controlling. Basic tenets of common sense and consideration should govern. b. As a convenience to its distributors, the Company may provide various methods of registering or informing the Company of newly sponsored distributors, including online internet registration, telephone registration and facsimile registration. Until such time as the Company receives an application, either as hard copy or by facsimile, containing all appropriate information, as well as the signature of the proposed new distributor, the Company will only consider the internet, telephone or facsimile registration in the category of “intended” recognition of sponsor. Thus, although the Company is attempting to create some convenience for its sponsoring distributors, it is the responsibility of the sponsoring distributor to cause delivery to the Company of a completed and signed distributor agreement if the sponsor is to expect formal recognition as the official sponsoring distributor. c. There is no “magic” involved in the Company or in any business. Those who sponsor widely but who do not help new distributors develop their business meet with limited success. Therefore, a responsibility of sponsorship is to work with new distributors, helping them learn the business and encouraging them during the critical early months.

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d. Sponsors are not required to carry inventory of products or sales aids for new distributors. When tangible product is involved, distributors who do so, however, find building a major sales organization much easier because of the decreased response time in meeting a new distributor’s needs.

45. Transfer of Sponsorship. Transfer is rarely permitted and is actively discouraged. Maintaining the integrity of sponsorship is absolutely mandatory for the success of the overall organization. a. Transfers will generally be approved in three (3) circumstances only: 1. In the case of unethical sponsoring by the original sponsor. In such cases, the Company will be the final authority.

2. With the written approval of the immediate five (5) upline sponsors.

3. Resigning from the Company entirely and waiting three (3) months to reapply under the new sponsor. b. In cases of unethical sponsoring, the individual may be transferred with any downlines intact; in all other events, the individual alone is transferred without any downline distributors being removed from the original line of sponsorship.

46. To be eligible for monthly override commissions and bonuses, the distributor must comply with: a. Supervisory responsibility requirements as outlined herein. b. 70% rule on resale of wholesale product ordered, and c. Retail sales rule requiring sales to at least ten nonparticipant retail customers per month. d. The requirement that his/her downline has retailed product which has been purchased at wholesale.

47. The Company encourages each independent distributor to keep accurate sales records. The program is based upon retail sales to the ultimate consumers; therefore, all forms of stockpiling or pyramiding are prohibited.

Products and services are offered to distributors only for personal consumption and for resale to consumers.

48. We comply with any states statutory purchasing limitations, buyback rules and other restrictions, disclosures and additional distributor rights and responsibilities. In any state with a business opportunity statute, required expenditures during the first six months shall not exceed the statutory amount that initiates applicability of the state business opportunity statute.

49. Income Claims. No income claims, income projections nor income representations may be made to prospective distributors. Obviously, any false, deceptive or misleading claims regarding the opportunity or product\service are prohibited. In their enthusiasm, distributors are occasionally tempted to represent hypothetical income figures based upon the inherent power of network marketing as actual income projections. This is counterproductive, since new distributors may be quickly disappointed if their results are not as extensive or as rapid as a hypothetical model would suggest. The Company believes firmly that the income potential is great enough to be highly attractive in reality without resorting to artificial and unrealistic projections.

50. Representation of Status. In all cases, any reference the distributor makes to him/herself must clearly set forth the distributor’s independent status. For example, if the distributor has a business telephone, the telephone may not be listed under the Company’s name or in any other manner which does not disclose the independent contractor status of the distributor.

51. Judgment and Tax Liens. The Company will comply fully with any court order or instruction/demand by any government taxing authorities within the United States and Canada that orders, instructs or demands the withholding of a distributor’s earnings from his/her distributorship with the Company.

52. Subpoenas Duces Tecum (Demands for Records). Assuming proper jurisdiction, the Company will comply with all subpoenas duces tecum demanding financial compensation records of a distributor in his/her capacity as an independent contractor with the Company.

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53. Requests for Records. The Company will comply fully with all requests for records accompanied by a properly prepared and signed Authorization by the person whose records are being sought. The Company will comply fully with all requests for records by government agencies with the authority to request such records and accompanied by the requisite legal documentation.

54. Newspaper Advertisements. Some Independent Representatives use classified advertising in the newspapers to find prospects. The following rules apply: No advertisement may imply that a “job” or “position” is available.

No specific income can be promised.

Advertisements must contain no misleading facts or distortions of the Company opportunity or product line.

55. Business Cards and Stationery. Any printed materials, including business cards and stationery, must be approved by the Company in advance. Criteria for approving these materials will include a judgment regarding the quality of the materials as well as properly setting forth the independent status of the distributor.

56. Telemarketing Techniques. The Federal Trade Commission and the Federal Communications Commission each have laws that restrict telemarketing practices. Both federal agencies (as well as a number of states) have “do not call” regulations as part of their telemarketing laws. Although the Company does not consider distributors to be “telemarketers” in the traditional sense of the word, these government regulations broadly define the term “telemarketer” and “telemarketing” so that your inadvertent action of calling someone whose telephone number is listed on the federal “do not call” registry could cause you to violate the law. Moreover, these regulations must not be taken lightly, as they carry significant penalties.

Therefore, distributors must not engage in telemarketing in the operation of their Company businesses. The term “telemarketing” means the placing of one or more telephone calls to an individual or entity to induce the purchase of a Company product or service, or to recruit them for the Company opportunity. “Cold calls” made to prospective customers or distributors that promote either Company products or services or the Company opportunity constitute telemarketing and are prohibited. However, a telephone call(s) placed to a prospective customer or distributor (a “prospect”) is permissible under the following situations: a. You may call family members, personal friends, and acquaintances. An “acquaintance” is someone with whom you have at least a recent first-hand relationship within the preceding three (3) months. Bear in mind, however, that if you make a habit of “card collecting” with everyone you meet and subsequently calling them, the FTC may consider this a form of telemarketing that is not subject to this exemption. Thus, if you engage in calling “acquaintances,” you must make such calls on an occasional basis only and not make this a routine practice. b. The prospect’s personal inquiry or application regarding a product or service offered by the distributor, within the three (3) months immediately preceding the date of such a meeting. c. If the distributor has an established business relationship with the prospect. An “established business relationship” is a relationship between a distributor and a prospect based on the prospect’s purchase, rental or lease of goods or services from the distributor, or a financial transaction between the prospect and the distributor within the eighteen (18) months immediately preceding the date of a telephone call to induce the prospect’s purchase of a product or service. d. If the distributor receives written and signed permission from the prospect authorizing the distributor to call. The authorization must specify the telephone number(s) which the distributor is authorized to call. e. In addition, distributors shall not use automatic telephone dialing systems relative to the operation of their Company businesses. The term “automatic telephone dialing system” means equipment which has the capacity to (a) store or produce telephone numbers to be called, using a random or sequential number generator, and (b) to dial such numbers.

57. Press Inquiries. Any inquiries by the media are to be referred immediately to the Company. This policy is to assure accuracy and consistent public image.

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58. Federal and state regulatory agencies rarely approve or endorse direct selling programs. Therefore, distributors may not represent that the Company’s program has been approved or endorsed by any governmental agency.

59. Claw Back Commissions And Bonuses. Company shall be entitled to repayment of any commission previously paid on a sale of product if the product purchase is cancelled or reversed or refund paid for a terminated purchase. Company shall recover the commission by adjustment on the next month's distributor check payment. In the event that no commission is available for adjustment in the following month, the distributor who has received the commission shall repay the commission paid on the "reverse sale" within 30 days of the Company notice to repay 60 - 70. Reserved.

71. Indemnification and Hold Harmless. The independent Distributor hereby indemnifies and releases Company, its officers, directors, agents and assigns and holds harmless from and against the full amount of any and all claims, causes of action, judicial and administrative proceedings suits, charges, liabilities, losses, damages, costs and expenses, including without limitation court costs and reasonable fees and expenses of attorneys and Consultants, which are or may be made, filed or assessed against Company at any time arising out of distributor’s business operations and representations made by distributor in the operation of his/her business, arising from the following: a. Violation and/or lack of compliance with terms of the distributor agreement, policies and procedures, rules and regulations, marketing program manual or guidelines or any other directive from the Company as to method and manner of operation of the independent distributor business; b. Engaging in any conduct not authorized by the Company in the Company market program; c. Any fraud, negligence or willful misconduct in the operation of the independent distributor business; d. Misrepresentation or unauthorized representation regarding the Company’s product or service, marketing opportunity or potential or the Company’s marketing program; e. Failure to adhere to any federal, state or local law, regulation, ordinance and/or any order or rule issue by any court of appropriate jurisdiction; f. Engaging in any action which exceeds the scope of authority to the distributor as granted by the Company; g. Engaging in any activity over which Company has no effective control as to the actions of the distributor. h. Engaging in the general business operations of distributor’s business.

72. Waiver. The Company never gives up its right to insist on compliance with these rules or with the applicable laws governing the conduct of a business. This is true in all cases, both specifically expressed and implied, unless an officer of the Company who is authorized to bind the Company in contracts or agreements specifies in writing that the Company waives any of these provisions. In addition, any time the Company gives permission for a breach of the rules, that permission does not extend to future breaches. This provision deals with the concept of “waiver,” and the parties agree that the Company does not waive any of its rights under any circumstances short of the written confirmation alluded to above.

73. Governing Law. These rules are reasonably related to the laws of the state of California and shall be governed in all respects thereby. The parties agree that jurisdiction and venue shall lie with the place of acceptance of the distributor application, the state of California.

74. Partial Validity. Should any portion of these Rules and Regulations, of the distributor’s application and agreement, or of any other instruments referred to herein or issued by the Company be declared invalid by a court of competent jurisdiction, the balance of such rules, applications, or instruments shall remain in full force and effect. // End of Policy Lilla Rose Policies & Procedures Lilla Rose Inc. Consultant Manual - May 2013

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Finally‌..

Wow, a whole lot to digest, huh? In the final analysis, your enthusiasm will create the infectiousness necessary to attract success to your venture. You have found something truly unique that you can be proud to share. We are so grateful you have trusted us by committing to the Lilla Rose Program.

We applaud you for your initiative and will enjoy celebrating your achievements!

- John

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