2025 Sales and Leadership Plan

Page 1


EFFECTIVE APRIL 1, 2025

J.HILBURN INC. - NOTICE

The information contained in this document contains proprietary and confidential information of J.Hilburn Inc. and is in10ded only for the use by J.Hilburn Inc. Stylists and employees who have been granted access to such information by J.Hilburn Inc. Any distribution, copying, duplication or disclosure of this document or any information contained therein is strictly prohibited. If you are not the intended recipient of this document, please notify James Burgess at james.burgess@jhilburn.com.

SECTION I: STYLIST TITLES & ARM REQUIREMENTS

Style Consultant

Senior Style Consultant

Executive Style Consultant

Style Leader

Senior Style Leader

Executive Style Leader

Managing Director

Senior Managing Director

Executive Director

Senior Executive Director

SECTION II: STUDIO TITLES & ARM REQUIREMENTS

SECTION III: BACKMATTER

Section I

STYLIST TITLES & ARM REQUIREMENTS

Style Consultant

How To’s:

How to Achieve Title

Purchases a New Stylist Kit

Completes Training

Becomes Measure certified

How to Receive Pay How to Maintain Title

Book appointments

Sell J.Hilburn products to clients

$500 in monthly Personal Volume or $1,000 over a trailing 3-month period

Pay annual renewal fee.

Personal Sales*

*New Stylist earn 20% - 25% on all Personal Sales Volume the first 6 months.

Senior Style Consultant

How To’s:

How to Achieve Title

How to Receive Pay How to Maintain Title

$500 Personal Sales Volume

$500 Personal Sales Volume

1 Personally Sponsored Active

NOTE: You are titled as a Senior Style Consultant the month after you achieve Senior Style Consultant qualifications.

$500 Personal Sales Volume

1 Personally Sponsored Active

*New Stylist earn 20% - 25% on all Personal Sales Volume the first 6 months.

1 Personally Sponsored Active

NOTE: If a Stylist fails to be “Paid As” Senior Style Consultant at least once within 12 consecutive monthly Qualification Periods, he/she will be demoted to the highest Paid As Rank achieved in the last 12 month period.

Executive Style Consultant

How To’s:

How to Achieve Title How to Receive Pay How to Maintain Title

$1,000 Personal Sales Volume

2 Personally Sponsored Active

NOTE: You are titled as an Executive Style Consultant the month after you achieve Executive Style Consultant qualifications.

$1,000 Personal Sales Volume

2 Personally Sponsored Active

$1,000 Personal Sales Volume

2 Personally Sponsored Active

NOTE: If a Stylist fails to be “Paid As” Executive Style Consultant at least once within 12 consecutive monthly Qualification Periods, he/she will be demoted to the highest Paid As Rank achieved in the last 12-month period.

Personal Sales*

*New Stylist earn 20% - 25% on all Personal Sales Volume the first 6 months.

Style Leader

How To’s:

to Achieve Title

to Receive Pay How to Maintain Title

$1,000 Personal Sales Volume

$1,000 Personal Sales Volume

3 Personally Sponsored Active Team Volume $2,000

NOTE: You are titled as a Style Leader the month after you achieve Style Leader qualifications.

$1,000 Personal Sales Volume

3 Personally Sponsored Active Team Volume $2,000

3 Personally Sponsored Active Team Volume $2,000

NOTE: If a Stylist fails to be “Paid As” Style Leader at least once within 12 consecutive monthly Qualification Periods, he/she will be demoted to the highest Paid As Rank achieved in the last 12 month period.

Personal Sales

10 - 25% on all Personal

*New Stylist earn 20% - 25% on all Personal Sales Volume the first 6 months.

Senior Style Leader

How To’s:

How to Achieve Title

$2,000 Personal Sales Volume

4 Personally Sponsored Active Team Volume $5,000

NOTE: You are titled as a Senior Style Leader the month after you achieve Senior Style Leader qualifications.

$2,000 Personal Sales Volume

4 Personally Sponsored Active Team Volume $5,000

to Maintain

$2,000 Personal Sales Volume

4 Personally Sponsored Active Team Volume $5,000

NOTE: If a Stylist fails to be “Paid As” Senior Style Leader at least once within 12 consecutive monthly Qualification Periods, he/she will be demoted to the highest Paid As Rank achieved in the last 12 month period.

Personal Sales

Earnings Chart

*New Stylist earn 20% - 25% on all Personal Sales Volume the first 6 months.

Executive Style Leader

How To’s:

How to Achieve Title

$3,000 Personal Sales Volume

5 Personally Sponsored Active Team Volume $10,000

NOTE: You are titled as Executive Style Leader the month after you achieve Executive Style Leader qualifications.

How to Receive Pay How to Maintain Title

$3,000 Personal Sales Volume

10 - 25% on all Personal

$3,000 Personal Sales Volume

5 Personally Sponsored Active Team Volume $10,000

5 Personally Sponsored Active Team Volume $10,000

NOTE: If a Stylist fails to be “Paid As” Executive Style Leader at least once within 12 consecutive monthly Qualification Periods, he/she will be demoted to the highest Paid As Rank achieved in the last 12 month period.

Personal Sales

*New Stylist earn 20% - 25% on all Personal Sales Volume the first 6 months.

Managing Director

How To’s:

How to Achieve Title How to Receive Pay How to Maintain Title

$3,000 Personal Sales Volume

$3,000 Personal Sales Volume

6 Personally Sponsored Active Team Volume $15,000

NOTE: You are titled as a Managing Director the month after you achieve Managing Director qualifications.

$3,000 Personal Sales Volume

6 Personally Sponsored Active Team Volume $15,000

6 Personally Sponsored Active Team Volume $15,000

NOTE: If a Stylist fails to be “Paid As” Managing Director at least once within 12 consecutive monthly Qualification Periods, he/she will be demoted to the highest Paid As Rank achieved in the last 12 month period.

Personal Sales

*New Stylist earn 20% - 25% on all Personal Sales Volume the first 6 months.

Senior Managing Director

How To’s:

How to Achieve Title

How to Receive Pay How to Maintain Title

$3,000 Personal Sales Volume

$3,000 Personal Sales Volume

7 Personally Sponsored Active Team Volume $20,000

Promote 1 Managing Director

NOTE: You are titled as an Senior Managing Director the month after you achieve Senior Managing Director qualifications.

$3,000 Personal Sales Volume

7 Personally Sponsored Active Team Volume $20,000

Promote 1 Managing Director

7 Personally Sponsored Active Team Volume $20,000

Promote 1 Managing Director

NOTE: If a Stylist fails to be “Paid As” Senior Managing Director at least once within 12 consecutive monthly Qualification Periods, he/she will be demoted to the highest Paid As Rank achieved in the last 12 month period.

Personal Sales

Earnings Chart

*New Stylist earn 20% - 25% on all Personal Sales Volume the first 6 months.

Executive Director

How To’s:

How to Achieve Title

$3,000 Personal Sales Volume

8 Personally Sponsored Active Team Volume $25,000

Promote 2 Managing Directors

NOTE: You are titled as Executive Director the month after you achieve Executive Director qualifications.

How to Receive Pay How to Maintain Title

$3,000 Personal Sales Volume

$3,000 Personal Sales Volume

8 Personally Sponsored Active Team Volume $25,000

Promote 2 Managing Directors

8 Personally Sponsored Active Team Volume $25,000

Promote 2 Managing Directors

NOTE: If a Stylist fails to be “Paid As” Executive Director at least once within 12 consecutive monthly Qualification Periods, he/she will be demoted to the highest Paid As Rank achieved in the last 12 month period.

Personal Sales Earnings Chart

*New Stylist earn 20% - 25% on all Personal Sales Volume the first 6 months.

Senior Executive Director

How To’s:

How to Achieve Title

to Receive Pay

$3,000 Personal Sales Volume

10 Personally Sponsored Active Team Volume $30,000

Promote 4 Managing Directors

NOTE: You are titled as Senior Executive Director the month after you achieve Senior Executive Director qualifications.

$3,000 Personal Sales Volume

10 Personally Sponsored Active Team Volume $30,000

Promote 4 Managing Directors

to Maintain Title

$3,000 Personal Sales Volume

10 Personally Sponsored Active Team Volume $30,000

Promote 4 Managing Directors

NOTE: If a Stylist fails to be “Paid As” Senior Executive Director at least once within 12 consecutive monthly Qualification Periods, he/she will be demoted to the highest Paid As Rank achieved in the last 12 month period.

Personal Sales

Stylist earn 20% - 25% on all Personal Sales Volume the first 6 months.

National Executive Director

How To’s:

How to Achieve Title

How to Receive Pay How to Maintain Title

$3,000 Personal Sales Volume

$3,000 Personal Sales Volume

12 Personally Sponsored Active Team Volume $40,000

Promote 6 Managing Directors

NOTE: You are titled as National Executive Director the month after you achieve National Executive Director qualifications

$3,000 Personal Sales Volume

12 Personally Sponsored Active Team Volume $40,000

Promote 6 Managing Directors

12 Personally Sponsored Active Team Volume $40,000

Promote 6 Managing Directors

NOTE: If a Stylist fails to be “Paid As” National Executive Director at least once within 12 consecutive monthly Qualification Periods, he/she will be demoted to the highest Paid As Rank achieved in the last 12 month period.

Personal Sales

Stylist earn 20% - 25% on all Personal Sales Volume the first 6 months.

Section II

STUDIO TITLES & ARM REQUIREMENTS

Studio Leader

How To’s:

How to Achieve Title

An approved Studio Owner

12-month Total Studio Volume

$0 - $249,999

How to Receive Pay How to Maintain Title

$3,000 Personal Sales Volume

Maintain Standards and Expectations of a Studio Owner outlined in the Studio Owner Agreement

Note: Start receiving Studio Owner Compensation at the first month titled as a Studio Owner

Personal Sales

12-month Studio Volume <$250,000

Maintain Standards and Expectations of a Studio Owner outlined in the Studio Owner Agreement.

Owner - Studio Stylist Bonus

Studio Director

How To’s:

How to Achieve Title

How to Receive Pay How to Maintain Title

$3,000 Personal Sales Volume

Rolling 12-month Studio Volume

$250,000 - $499,999

An approved Studio Owner

12-month Total Studio Volume

$250,000 - $499,999

Maintain Standards and Expectations of a Studio Owner outlined in the Studio Owner Agreement

Note: Start receiving Studio Owner Compensation at the first month titled as a Studio Owner

12-month Studio Volume

$250,000 - $499,999

Maintain Standards and Expectations of a Studio Owner outlined in the Studio Owner Agreement, including Performance Expectations.

NOTE: If a Studio Owner fails to be “Paid As” Studio Director at least once within 12 consecutive monthly Qualification Periods, he/she will be titled to the highest Paid As Title achieved in the last 12-month period.

Personal Sales

Studio Managing Director

How To’s:

How to Achieve Title

How to Receive Pay How to Maintain Title

12-month Studio Volume

$500,000 - $749,999

An approved Studio Owner

12-month Total Studio Volume

$500,000 - $749,999

$3,000 Personal Sales Volume

Maintain Standards and Expectations of a Studio Owner outlined in the Studio Owner Agreement

Note: Start receiving Studio Owner Compensation at the first month titled as a Studio Owner

Maintain Standards and Expectations of a Studio Owner outlined in the Studio Owner Agreement, including Performance Expectations.

NOTE: If a Studio Owner fails to be “Paid As” Studio Managing Director at least once within 12 consecutive monthly Qualification Periods, he/she will be titled to the highest Paid As Rank achieved in the last 12-month period.

Personal Sales

Studio Executive Director

How To’s:

How to Achieve Title

How to Receive Pay How to Maintain Title

$3,000 Personal Sales Volume

An approved Studio Owner

12-month Total Studio Volume

$750,000+

Maintain Standards and Expectations of a Studio Owner outlined in the Studio Owner Agreement

Note: Start receiving Studio Owner Compensation at the first month titled as a Studio Owner

12-month Studio Volume

$750,000+

Maintain Standards and Expectations of a Studio Owner outlined in the Studio Owner Agreement, including Performance Expectations.

NOTE: If a Studio Owner fails to be “Paid As” Studio Executive Director at least once within 12 consecutive monthly Qualification Periods, he/she will be titled to the highest Paid As title achieved in the last 12-month period.

Personal Sales

Studio Seller

Studio Seller Personal Sales*

*New Stylist earn 20% - 25% on all Personal Sales Volume the first 6 months.

Studio Mentorship Program

Direct Mentorship Rule:

The transition to Studio Ownership represents a pivotal milest1 in a Stylist’s career. Under the Direct Mentorship Rule, Mentors who successfully promote a Stylist to the role of Studio Owner will receive structured financial incentives as part of an ongoing transition plan.

Mentor Compensation & Transition Plan

The newly promoted Studio Owner will be recognized as a Permanent Managing Director (MD) line for the Mentor.

The Mentor will continue to receive Level 1 commission on the Studio Owner’s sales for a period of 12 months, followed by a phased commission adjustment:

Months 1-12: Full Level 1 commission

Months 13-18: 50% of Level 1 commission

Months 19-24: 25% of Level 1 commission

Eligibility & Upline Considerations

When the Studio Plan is signed, the upline Mentor will receive the MD line and associated benefits. The MD line remains in effect as long as the Studio is operational. This program is designed to incentivize and reward Mentorship while supporting the long-term success of new Studio Owners within the organization.

Section III

Personal Sales Volume Bonus (PSVB)

April - September 2025

With the Personal Sales Volume Bonus (PSVB), we honor our commitment to “put m1y in our Stylists’ pocket.” Personal Sales Volume Bonus (PSVB) is a tiered bonus program that rewards J.Hilburn Stylists with up to an additional 3% bonus on personal sales, starting at $12,000 in monthly sales.

Personal Sales Volume Bonus (PSVB)

Glossary

Enrolled Stylist

Any individual Stylist who has acknowledged the Stylist Agreement and is current with their annual renewal fee requirement.

Active Stylist

Any Enrolled Stylist who has $500+ in monthly Personal Sales Volume, or $1000 over a 3 month period ($500+ Monthly PV-Q or $1,000+ TTM).

Inactive Stylist

Any Enrolled Stylist who has not met $500+ Monthly PV-Q or $1,000+ TTM, or has not logged into the Stylist App or Green Room in the last 6 months. If a Stylist goes inactive he/she forfeits their title and team. The forfeited team members will Roll-up as Level 1 to the upline Stylist. The Inactive Stylist stays as Level 1 to the Mentor until reactivated or cancelled.

Personal Sponsored Active (PSA)

Stylist enrolled direct to Mentor (Level 1) who has $500+ in monthly Personal Sales Volume, or $1000 over a 3-month period ($500+ Monthly PV-Q or $1,000+ TTM).

Level 1 Stylist (Non-PSA)

Stylist who are direct to an upline Stylist (not personally sponsored), with $500 in monthly Personal Sales Volume, or $1000 over a 3-month period.

Roll-up

This is a monthly adjustment to the structure, as Stylists who are canceled creates a gap in genealogy. Upon cancellation, the team will roll-up and become a non-PSA (Level 1) for the Stylists above the canceled position.

When a cancellation of a PSA occurs, the genealogy to the canceled Stylist will “roll-up” and be considered a Non-PSA for the upline Stylist (Level 1).

Personal Team

A “personal team” refers to Stylists that you have personally recruited into the J.Hilburn business. Building a personal team and Mentoring those Stylists is how you advance in leadership and increase your earnings.

Fast Start Period

The Fast Start period, covering a new J.Hilburn Stylist’s enrollment month plus 3 full months, is a key time to build their business foundation. Achieving sales and recruiting goals during this period unlocks bonuses and higher commissions, accelerating their path to success

Title in Sales and Leadership Development Plan

Highest title achieved by a Stylist. There are 3 Consultant Titles, 3 Leader Titles and 5 Director Titles. Stylist Titles are updated when a commission period is closed.

Glossary

Paid-As Title

A Stylist’s Paid-As Title, or Bonus Title, is recalculated each commission period. It is the title used to determine Achieve, Receive and Maintain qualifications for commissions and can fluctuate throughout the month based on qualifications.

Mentor

The Stylist who personally enrolls a new Stylist to their Level 1.

Line

Every Stylist that is on a Stylist’s Level 1 (direct) creates a line. For example, a Stylist with 8 Level 1 Stylists has 8 Lines in their organization.

Managing Director

A Managing Director Line is established when a Stylist, in any line or level in the line, is promoted to the rank of Managing Director. The Managing Director line remains in effect for 6 months following the last month during which the qualifying Managing Director meets the criteria and is paid as Managing Director or higher. A Stylist can have multiple Managing Directors in a line; however, this only counts as one Managing Director Line.

Transition to Studio Ownership

The newly promoted Studio Owner will be recognized as a Permanent Managing Director (MD) line. The Mentor will continue to receive Level 1 commission on the Studio Owner’s sales for a period of 12 months, followed by a phased commission adjustment:

• Months 1-12: Full Level 1 commission

• Months 13-18: 50% of Level 1 commission

• Months 19-24: 25% of Level 1 commission

Glossary

Volume Types:

Personal Qualification Volume (PV-Q)

Qualifying Volume from Client orders; matches retail price. Personal commission will be paid on a monthly basis to all Stylists with a PV-Q greater than zero. PV-Q is calculated after all discounts have been applied to the order and does not include taxes or shipping cost.

Personal Commissionable Volume (PV-C)

Commissionable Volume earned from Client orders; a percentage of retail price. Full price J.Hilburn products to be paid out at 100% commissionable Volume. Third party brands and any J.Hilburn sale items to be paid at 50% commissionable Volume.

Team Volume (TV)

Your personal PV-Q plus your Team PV-Q from Levels 1 through 3.

Trailing 3 Month Volume (TTM)

PV-Q from the current month plus the 2 previous months.

Glossary Bonus Qualifications:

Title Achievement Bonus

Stylists are eligible for a Title Achievement Bonus (1 time only per Title). Title Achievement Bonuses are paid for Executive Style Consultant, Style Leader, Executive Style Leader, and Managing Director. To receive any Title Achievement Bonus, a Stylist must be eligible and have promoted to that Career Title for the very first time. The Title Achievement Bonus will be paid on the next commission payment.

Mentor Matching Title Achievement Bonus

Mentors who have a Personally Sponsored Active (PSA) Stylist who achieves a Title Achievement Bonus, may be eligible for a matching bonus. To be eligible, the Mentor must be at or above the title that the Level 1 Stylist Achieved at the latest 1 month prior to the promotion (no eligibility to achieve the bonus within the same month as PSA). (Example: PSA Stylist achieves Style Leader Title Achievement Bonus and earns $1,000. The Mentor is a Managing Director, Stylist is PSA or Level 1, and the Mentor will receive the matching $1,000 bonus).

Personal Sales Volume Bonus (PSVB)

A tiered bonus program that rewards J.Hilburn Stylists with up to an additional 3% bonus on personal sales, starting at $12,000 in monthly sales.

Team Volume Bonus (former Generation 0)

Team Volume Bonus includes each Stylist in your downline, down to, but excluding, the first Career Title Managing Director or higher and their downline. Your current Career Title is equivalent to your highest paid-as rank achieved in a trailing 12-month period.

EFFECTIVE APRIL 1, 2025

J.HILBURN INC. - NOTICE

The information contained in this document contains proprietary and confidential information of J.Hilburn Inc. and is in10ded only for the use by J.Hilburn Inc. Stylists and employees who have been granted access to such information by J.Hilburn Inc. Any distribution, copying, duplication or disclosure of this document or any information contained therein is strictly prohibited. If you are not the intended recipient of this document, please notify James Burgess at james.burgess@jhilburn.com.

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