Policies and Procedures

BECAUSE COSMETICS, LLC
POLICIES AND PROCEDURES
Updated July 30, 2022

Vision Statement

BeCause Cosmetics is making the world a better, more beautiful place through quality products that enhance our customers’ lives, engaging company programs that support Affiliates in achieving their goals, and a charitable focus that affects real change through causes we support. BeCause – people matter more than products.

Introduction

Thank you for choosing BeCause Cosmetics. This agreement is a guide for you as an Affiliate of BeCause Cosmetics, LLC. It provides you with rules that establish an environment of fairness among all other Affiliates. This agreement also gives you certain rights and protections. Please read it carefully, understand it, and abide by it.

Terms and Conditions

I understand that as an Affiliate for BeCause Cosmetics, LLC (“the Company” or “BeCause Cosmetics”):

  1. I have the right to offer for sale products and services in accordance with these Terms and Conditions and Policies and Procedures (“Agreement”).
  2. I may have the right to enroll others as Affiliates with the Company.
  3. I have the right to earn commissions according to the rules of the Compensation Plan provided by the Company.
  4. I acknowledge that I am an Independent Contractor and not an employee, partner, legal representative, or franchisee of the Company. I agree that I will be solely responsible for paying all expenses that I incur, including but not limited to travel, food, lodging, secretarial, office, and other business expenses. I UNDERSTAND THAT I SHALL NOT BE TREATED AS AN EMPLOYEE OF BECAUSE COSMETICS, LLC FOR FEDERAL OR STATE TAX PURPOSES OR FOR ANY OTHER REASON. The Company is not responsible for withholding and shall not withhold or deduct from my commissions and incentives earned, if any, FICA, payroll or income taxes of any kind. I understand that I am not entitled to workers’ compensation or unemployment security benefits of any kind from the Company.
  5. I understand that I may terminate my agreement with the Company at any time and for any reason by providing written notice to the Company.
  6. I agree to follow the Policies and Procedures as outlined below. The Policies and Procedures will be updated periodically. Changes will be made available to me online and my consent will be required to proceed in my relationship as an Affiliate with the Company.
  7. The Company may terminate my agreement at any time and for any reason by providing me written notice.
  8. In the event of a termination, I waive all rights I have, including but not limited to property rights, to my former Stack and to any commissions or other remuneration derived through the sales and other activities of my Stack.
  9. I may not sell, transfer, or assign any rights under the Agreement without prior written consent from the Company.
  10. I understand that I must be in good standing, and not in violation of the Agreement, to be eligible for commissions or incentives from the Company. I further agree that if I fail to comply with the terms of the Agreement, the Company may, at its discretion, impose upon me disciplinary actions as set forth below, which may include the termination of my agreement and relationship with the Company.
  11. If any provision of the Agreement is held to be invalid or unenforceable, such provision shall be stricken and reformed only to the extent necessary to make it enforceable, and the balance of the Agreement will remain in full force and effect.
  12. If my Affiliate account is a business entity, all members associated with that entity are also parties to the Agreement.
  13. I authorize the Company to use my name, photograph, personal story, testimonial, likeness, and/or any material I submit to the Company, or associate through posting or tagging to any of its social media channels, in advertising or promotional materials and waive all claims for remuneration for such use.

Definitions

Active is an account status of an Affiliate who has satisfied the Minimum Sales Requirement.

Affiliate is an independent sales and brand representative of BeCause Cosmetics.

Affiliate Referral Link is a unique URL that identifies website visitors, customer browser sessions, and sales orders attached to you as an Affiliate.

Branch is a section of your Stack that includes all Affiliates under one Direct Affiliate.

Branding Kit is a bundle of products that may be purchased at the time of Enrollment as an Affiliate. These products can be used for sampling or for resale.

Commissions are earned as a percentage of Sales based on the Compensation Plan. You may be eligible to earn Commissions on your Personal Sales as well as the Sales of other Affiliates in your Stack. You must also be in good standing with the Company (following the Policies and Procedures) to be eligible to receive Commissions. Commissions are paid on a weekly and monthly basis, via PayPal or Venmo.

Direct refers to Affiliates you have personally Sponsored or to whom you are currently a Sponsor (in the situation of a roll-up or change of Sponsor).

Enrollment occurs when you become an Affiliate of BeCause Cosmetics.

Lifetime Sales is your total amount of Sales while an Affiliate with BeCause Cosmetics.

Monthly Bonuses are paid by PayPal or Venmo on or before the 10th of month. For example, you will be paid out for your January Monthly Bonus on or before the 10th of February.

New Affiliate is a term used to describe an Affiliate whom you refer to join the Company.

Open is an account status of an Affiliate who is eligible to place or receive orders.

Personal Sales are sales orders received by the Company by anyone using your Affiliate Referral Link, or who selects your name as their Affiliate at Checkout.

Pool Bonus is a Monthly Bonus paid to Affiliates who meet the Qualifications in the Minimum Sales Eligibility for Pool Bonus.

Rank is determined by your Lifetime Sales. See Qualifications in the Compensation Plan.

Rank Advancement is the term used when you have reached the next level in the Compensation Plan according to the Qualifications.

Sales are equal to your order subtotal minus the value of any non-commissionsable items, any discounts (like BeCause Cash), shipping and sales tax. So, for example, if your order subtotal is $100, then you use $20 in BeCause Cash, the Sales total for that order is $80.

Sponsor (or Up 1) is the individual who is your current Sponsor, or who is immediately above you in the sales organization. This individual is responsible for mentoring you and ensuring you have the support you need to be a successful Affiliate. Your Sponsor may or may not be the original individual who enrolled you into the company. If your original Enroller left the company, you are “rolled up” to the next person above you in the sales organization, who becomes your Sponsor.

Stack refers to Affiliates below you in the sales organization. When you refer another individual to become an Affiliate of the Company, they join your Stack. Then when that Affiliate refers others who join as well, they also join your Stack.

Up 1, Up 2, Up 3, Up 4, and Up 5 refers to Affiliates above you in the sales organization. They offer you support and leadership. The Affiliate immediately above you may be referred to as your Sponsor, or as your Up 1. The Affiliate above that person is your Up 2. When eligible in the Compensation Plan, Affiliates above you in the sales organization may earn commissions on your Sales.

Weekly Bonuses are bonuses paid for weekly sales performance in addition to Weekly Commissions. They include:

  • Big Week Bonus - $25 for each $500 in Sales in a calendar week. ($25 for $500, $50 for $1,000, and so on)
  • More coming soon...

Weekly Commissions are paid each Wednesday for Personal Sales made the previous calendar week (Sunday through Saturday). Weekly Commissions are paid by PayPal or Venmo.

Eligibility to become an Affiliate

To become an Affiliate with BeCause Cosmetics, you must:

  1. Be at least 18 years old on the date of enrollment
  2. Be a US Citizen or legal resident
  3. Have a Social Security Number or Tax Identification Number
  4. Have a valid email address for communication
  5. Have a PayPal or Venmo account for Commissions
  6. Agree to the Terms and Conditions and Policies and Procedures

Code of Ethics

  1. I will provide accurate information about products and services, sales and marketing methods, and the Compensation Plan to my customers and other Affiliates.
  2. I will maintain records that are accurate and complete.
  3. I will train any Affiliates in my Stack on ethics, marketing practices, sales organization interactions, and business rules of the Company. This will always be consistent with the training resources and opportunity information provided by the Company.
  4. I will not possess at any time more product inventory than I can reasonably sell to customers within 30 days. This is called “inventory loading” and may be cause for termination of my agreement.
  5. I will not “Bonus Buy” by purchasing products to earn any rank advancement, incentive or prize without associated bona fide customer orders or a written agreement associated with an event within 30 days wherein I can reasonably sell the products. Bonus buying includes, but is not limited to, purchasing product through a straw man, purchasing product from another Affiliate, or any other deceptive selling or sponsoring activity.
  6. I will market income representations and product descriptions consistent with company directives and ethics training.
  7. I will provide a receipt from the Company that permits my customers to withdraw from a purchase order within three days from the date of the purchase transaction and receive a full refund of the purchase price.
  8. I will obey all federal, state, and local laws that pertain to my association with BeCause Cosmetics.
  9. I will always conduct myself with professionalism and courtesy, acknowledging that I am a representative of the Company, its brand, and values. I will not disparage or defame any employee, officer, vendor, Affiliate, or any other associate of BeCause Cosmetics.

Selling Products

Affiliates and customers purchase BeCause Cosmetics products at retail price. You may only offer products for sale at prices published by the company. You may sell products in person or through referrals to the Company’s website. No other online sales of BeCause Cosmetics products are allowed. You may not sell BeCause Cosmetics products to other Affiliates on commissionable orders. You may not make any product claims or representations that are not published by the Company.

Selling BeCause Cosmetics products in a physical storefront:

  • You may not sell BeCause Cosmetics products at a retail store, salon, or any other commercial business. You may, with the permission of the business owner, maintain a display at a retail location with marketing materials, samples, and/or your contact information.
  • You may sell products at a temporary event for a maximum of 21 consecutive days per quarter, and/or a maximum of 21 total days per quarter. As the contracted party for the event, you must be present at your booth for at least 75% of the event. There is no limit to the number of BeCause Cosmetics Affiliates allowed at a temporary event. However, event organizers may impose such a limit. As Affiliates are representatives of the Company, they are expected to obey all event rules and act with professionalism and courtesy.

Forms of Payment

All online payments must be made with a credit or debit card or using PayPal payment methods. The Company accepts PayPal, Venmo, VISA, MasterCard, American Express, and Discover. You may be required to provide the Company with written documentation or a receipt for transactions with your customers.

At your personal events, you may accept cash, check, or credit card payment (using your own merchant service, such as PayPal, Venmo, Stripe, etc.) from your customers. Checks must be payable to you, not to the Company. It is your responsibility to safeguard all credit card or personal financial information from customers. Please clearly communicate to your customers when you expect to submit their orders and approximately when to expect delivery.

Sales Tax

The Company collects sales tax on each order placed and will remit to the appropriate tax jurisdictions on your behalf. It is your responsibility to calculate and collect the appropriate amount of sales tax from each customer order. Sales tax is calculated based on the shipping address of each order. If you receive products in one location and sell it in another taxing jurisdiction, please inform the corporate office so that remittance may be adjusted.

You are not required to have a sales tax identification number of your own. If you are participating in an event that requires a sales tax permit, please contact the corporate office for the Company’s sales tax information.

Commissions and the Compensation Plan

General Information:

Weekly Commissions and Weekly Bonuses are paid each Wednesday for Sales from the previous week (Sunday through Saturday). Monthly Bonuses are paid on the 10th of the month for Sales from the previous month. For example, any Monthly Bonuses you earn in January will be paid on February 10th.

You may not make specific income claims when discussing BeCause Cosmetics or your personal business as an Affiliate including, but not limited to, showing bank deposits, bank statements, commission checks, tax records, etc.

Qualifications:

All Ranks are based on Lifetime Sales (see chart below). Rank Advancements occur each Sunday, for Affiliates reaching a new lifetime benchmark during the previous calendar week (Sunday through Saturday). You can never move backwards and do not need to re-qualify at each Rank.

To be paid on the Sales of Affiliates in your Stack, you must meet the Minimum Sales Requirements.

Commissions:

Commissions on your Personal Sales are determined by your Rank, which is based on your Lifetime Sales.

Your Commissions on Sales from other Affiliates in your Stack are determined by the Rank of that Affiliate and the distance that he or she is from you. So, for example, if you have an Affiliate in your Stack who is a Rank 8 and you are Up 2 from that Affiliate, you will earn 3% on his or her Sales. See chart below.

Monthly Pool Bonus

Each month, the Company will pay a percentage of all Sales to Pool Bonuses grouped by Rank color (Green, Blue, or Black). The Pool amount for the color will be divided equally among all Affiliates at that color's Rank who meet the Minimum Sales Eligibility for Pool Bonus during the month.

Eligibility for the Monthly Pool Bonus is based on the Rank you have achieved as of the last Saturday of that calendar month, and your personal monthly Sales.

Minimum Sales Requirement

To keep a Branch of your Stack, you must meet the Minimum Sales Requirement in a rolling 2-month period that correlates with the highest Ranked Affiliate in that Branch on whom you are eligible to be paid. So, for example, let’s say that you have one Branch in your Stack with two Affiliates – a Rank 4 Affiliate and a Rank 8 Affiliate. If you are Up 1 to the Rank 4 (Red) and Up 2 to the Rank 8 (Yellow) in the same Branch, you need a minimum of $200 in Sales every two months to keep that entire Branch. If you don’t meet the Minimum Sales Requirement, the entire Branch (Rank 4 – Red and Rank 8 – Yellow) will roll up to the next eligible Affiliate.

To keep your Affiliate account Active with the Company, you must have at least $100 in Sales in the previous 12 months.

Independent Contractor Status

As an Affiliate, you are an independent contractor and not an employee or partner of the Company. You are responsible to keep track of your own expenses and file your own state and federal tax returns. If you earn more than $600 in Commissions during a calendar year, the Company will provide you with a Form 1099-NEC for Non-Employee Compensation. If you earn more than $600 in incentives, trips, or eligible prizes during a calendar year, the Company will provide you with a Form 1099-MISC for Miscellaneous Compensation.

Business Supplies

The Company sells business supplies to help you promote your BeCause Cosmetics business. You may purchase them but are not required to do so. Business supplies are not commissionable. You may not sell business supplies of any kind that are associated with BeCause Cosmetics to anyone.

Online Marketing

You may market your personal BeCause Cosmetics business through online marketing and social media channels. In doing so, you must make it abundantly clear that you are an Affiliate and are an independent entity from the Company. You may not engage in mass and/or unsolicited communications to individuals who have not requested information from you.

You may not purchase adwords for any term, name, or phrase reserved for use by the Company including, but not limited to trademarks or trade names, such as the name “BeCause Cosmetics.” You may not engage in any marketing activity that is deceptive, misleading, or malicious in nature.

Sponsoring

Sponsoring is available to all Affiliates, but is not a requirement for the Compensation Plan or Commissions. When an individual enrolls as an Affiliate with the Company, they should include your name as their requested Sponsor. You are responsible, as the Sponsor, to provide information, training, and guidance to all Affiliates that you bring into the Company. You may not solicit Affiliates within the Company to pursue a change of sponsor. Any deceptive or unethical sponsoring practice is strictly prohibited.

If your Sponsor (Up 1) terminates his or her agreement with the Company, you will roll up to the next Affiliate who will become your Up 1.

Sale or Transfer of Your Business

You may not sell your business or account with BeCause Cosmetics. You may transfer your business to any individual who meets all of the eligibility requirements. If you wish to transfer your business to a current Affiliate, you must receive written approval to do so from an officer of the Company. In connection with an approved transfer, the Company may consolidate or move your Stack at its sole discretion. It is in the best interest of the Company and all Affiliates that relationships in the Stack are considered carefully when making such moves.

Contact Information

Please keep your contact information current including billing address, shipping address, legal name, tax ID or SSN, phone numbers, and email address. The Company’s contact information is:

BeCause Cosmetics, LLC
5796 Meadowcrest Drive
Salt Lake City, Utah 84107-6501

Phone: (801) 971-4587
Email: hello@becausecosmetics.com

Other Websites

You may use other websites to market your business with BeCause Cosmetics. Customers may not purchase product on those sites. You may only use branding and design elements that are consistent with the Company's Brand Style Guide (PDF) on those sites when representing the Company or its products. You may offer training content related to BeCause Cosmetics on those sites.

Use of Trademarks and Copyrights

You may not use the words “BeCause Cosmetics” or other Company trademarks in any web URL, email address, blog, or social media account in a way that may imply that your account may be owned and/or operated by the Company. Any deceptive or misleading marketing practice is a violation of this Agreement. You are responsible for any costs associated with changing or correcting any marketing materials that are out of compliance.

We encourage you to present yourself and your business as:

  • Jane Doe – Affiliate for BeCause Cosmetics,
  • BeCause by Jane,
  • Or other approved derivatives.

Affiliates should use Company approved logos:

BeCause_Icon_RGB Black small

When using approved logos or trademarks, take care not to distort, stretch, or alter these in any way. Maintaining the brand identity and integrity is critical in all cases. The Company reserves the right to determine whether any name is suitable or out of compliance. See our Brand Style Guide (PDF) for more information.

Media Inquiries

If you are approached by any media entity about BeCause Cosmetics, you must first contact the Company in writing and receive written permission before providing any statement, press release, or announcement. Media inquiries also include TV or Radio appearances requested.

Changing Your Sponsor

Changing Sponsors may impact many people in your Stack. We offer two possible options for you to change your Sponsor:

  1. If you have terminated your agreement with the Company and your account has been cancelled for at least 6 months, you may re-enroll under the Sponsor of your choice.
  2. You may request a change in Sponsors by providing a written request to the Corporate Office. If your Sponsor and any Affiliate eligible to be paid on your Sales in the Compensation Plan all provide written consent for the change of Sponsor, you and your Stack will be moved.

Leave

You may request leave from the Company for military, maternity, or illness. If your leave is approved by an officer of the Company, your account will not be subject to termination during the approved leave period.

Shipping and Handling

Shipping and Handling charges are determined by weight. Orders under 16 oz are charged $5.99. Orders 16 oz and over are charged $7.49. The Company uses USPS and UPS to ship orders to all 50 states, but does not ship to other US territories, APO/FPO, or other international addresses.

Return Policy

Your satisfaction is our goal. If you are ever not satisfied with the performance of your BeCause Cosmetics product, please first contact the Affiliate with whom you placed your order. We do not accept returns for color or shade selection. Make sure to always sample products before you buy to make sure you are purchasing the correct color or shade.

We’ll gladly accept your returns for BeCause Cosmetics products upon receiving your item(s) within 30 days of the purchase date. Be sure to enclose a copy of your invoice and the reason for your return. The estimated refund time is approximately 30 business days from the receipt date of your return. We’re sorry, but all shipping fees are not refundable.

Please send all returns to the attention of:

BeCause Cosmetics – Returns
5796 Meadowcrest Drive
Salt Lake City, Utah 84107-6501

Updates to this Agreement

Updates and revisions will be made to this agreement periodically. Most updates will take effect immediately.

Term of this Agreement

The term of this agreement is one year from your enrollment date. It automatically renews annually so long as you are currently enrolled as an Affiliate of BeCause Cosmetics.

Breach of the Agreement

In the event that you breach any part of this agreement, you may be subject to disciplinary action including, but not limited to: written notification, requirements of restitution, loss of your Stack, withdrawal of awards or recognition received, repayment of commissions, suspension of your account, injunctive relief, termination of your relationship with the Company, and other damages incurred.

General Provisions

As an Affiliate, you are responsible for all verbal and written statements you make regarding BeCause Cosmetics products, services and the Compensation Plan. You will indemnify and hold BeCause Cosmetics harmless from any and all liability resulting from your actions while contracted as an Affiliate or after termination of your Agreement.

All Affiliate and customer lists are confidential and are the exclusive property of BeCause Cosmetics. You may use the Affiliate list of your Stack solely for purposes of supporting your personal sales organization at BeCause Cosmetics. You are required to keep these lists confidential. Under no circumstances may you sell or share the list with any third party or disclose its contents to any third party.

Jurisdiction and venue of any matter not subject to arbitration shall reside in Salt Lake County, in the state of Utah, unless the laws of the state in which you reside expressly requires the application of its laws, in which case that state’s law shall govern all issues related to jurisdiction and venue. The Federal Arbitration Act shall govern all matters relating to arbitration. The laws of the state of Utah shall govern all other matters relating to or arising from the Agreement unless the laws of the state in which a Brand Affiliate resides expressly require the application of its laws.