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International Expansion FAQ

When will Consultants be able to sell and sponsor in Mexico and Australia? Sept. 1, 2013 How easy is it to sponsor someone in a different country or Region? What is the cost? To sell and/or sponsor outside of your home country, you must agree to an International Service Fee. There are two types of International Service Fees: In-Region and Out-of-Region. The In-Region International Service Fee allows Consultants to sell and sponsor in other countries within their home Scentsy Family Region. The Out-of-Region International Service Fee allows Consultants to sponsor (but not sell) outside their home Region. For U.S. Consultants to sponsor out-of-Region, a monthly cost of $10 is associated with this agreement. This is in addition to monthly PWS fees. See the Cross-Border Sponsoring Outside Your Region training document on the Resources tab of your Workstation for detailed instructions. How do new Consultants enroll? New Consultants in Mexico and Australia may enroll under a current Scentsy Family Consultant at any time after Sept. 1, 2013. For the first six months Scentsy Family is available for sales and sponsoring in Mexico and Australia, a new Consultant will be allowed to enroll under Scentsy Family, instead of a current Consultant. New Consultants who choose to enroll under Scentsy Family will be encouraged to join a Consultants team as soon as they find a Sponsor they are comfortable with. Starting March 1, 2014, anyone who joins Scentsy Family must enroll under a current Consultant. How much do Starter Kits cost for new Consultants in the new countries? The Scentsy Fragrance Starter Kit for Australia is $139 (AUD) and $1,799 (MXN) for Mexico. The Grace Adele Starter Kit for Australia is $289 (AUD) and $3,699 (MXN) for Mexico. They are based on the current Region 1 Starter Kits, and will include roughly the same items. These items are subject to change. What are the product offerings for Scentsy Fragrance and Grace Adele in the new countries? Scentsy Fragrance and Grace Adele will launch with a narrowed product offering in both Australia and Mexico. Will my PWS support these new countries? Your PWS will have the capability to support both new countries. When you accept the sellers agreement for a country, support for that country will be activated on your PWS.

What are the PWS subscription costs for these new countries? MEXICO (MXN) AUSTRALIA (AUD) VAT Inclusive GST Inclusive PWS $ 160.00 $ 13.00 Cross-border $ 80.00 $ 7.00 Cross Region $ 160.00 $ 13.00 How does a customer place an order on my PWS for one of these countries? If you are enrolled to sell in another country within your region, a customer placing an order on your PWS will select their country from the Country/Language drop-down box in the upper right hand corner of your PWS. How do I place an order in my Workstation for one of these countries? You will be able to select the country for which you are placing the order in the Select Country/Language drop-down box (upper right hand corner of the Workstation). Only those countries for which you have accepted the sellers agreement will be visible in the drop-down box. What are the Host Reward levels in Mexico and Australia? Guest Sales-Mexico* Free Product Half-Price Items $2,800-4,499 10% 1 $4,500-7,499 10% 2 $7,500-18,499 15% 3 $18,500+ 15% 4

*Host Rewards are VAT inclusive Guest SalesAustralia** Free Product Half-Price Items $220-349 $350-599 $600-1,399 $1,400+

10% 1

10% 2

15% 3

15% 4

**Host Rewards are GST inclusive Where will products ship from? We will ship products to Australian Consultants and customers from within Australia. All products being shipped to Mexico will come from our distribution center in Coppell, Texas. Our policy to ship all orders within 10 business days of the order date will extend to these new countries. What shipping costs will be associated with orders in Mexico and Australia? WORKSTATION Mexico Shipping Minimum Maximum Charge $0.01 $599.99 $120 Individual Order $600 $2,799.99 20% Party Order $2,800 Unlimited FREE

$0.01 $599.99 $120 $600 $2,799.99 20% $0.01 $799.99 $150 Scentsy Family Store Order $800 Unlimited FREE PERSONAL WEBSITE (PWS) Mexico Shipping Minimum Maximum Charge $0.01 $749.99 $150 PWS Order $750 $2,799.99 20% $2,800 Unlimited FREE $0.01 $749.99 $150 PWS Order Attached to a Party $750 Unlimited 20% *Orders sent directly to a customer instead of to the primary shipping address chosen by the Consultant. The shipping charges listed are VAT inclusive. Shipments are limited within Mexico. *Party Order - Direct Ship WORKSTATION Shipping Charge $0.01 $39.99 $8 Individual Order $40 $219.99 20% Party Order $220 Unlimited FREE $0.01 $39.99 $8 *Party Order - Direct Ship $40 $219.99 20% $0.01 $59.99 $10 Scentsy Family Store Order $60 Unlimited FREE PERSONAL WEBSITE (PWS) Australia Shipping Minimum Maximum Charge $0.01 $49.99 $10 PWS Order $50 $219.99 20% $220 Unlimited FREE $0.01 $49.99 $10 PWS Order Attached to a Party $50 Unlimited 20% *Orders sent directly to a customer instead of to the primary shipping address chosen by the Consultant. The shipping charges listed are GST inclusive. Shipments are limited within Australia. Minimum Maximum How are items taxed in Australia and Mexico? Australia employs a Goods and Services Tax (GST) of 10 percent to most goods and services. Mexico has a Value Added Tax (VAT) of 16 percent. In both countries, the added tax must be included in the listed price of products. For instance, if a Scentsy Warmer is listed at $43 (AUD), that price includes tax; if a Grace Adele Bag is listed at $1,485 (MXN), that price is VAT inclusive. How are commissions calculated in different countries that use different currencies? Australia

Scentsy has a global Compensation Plan designed to support multiple countries. The commission calculation is: PRV x Commission Percentage x Peg Rate = Commission amount in local currency. Current peg rates: United States: 1 Australia: 1.3 Mexico: 16 Will there be awards and incentives for Consultants in Australia and Mexico? Yes. The Scentsy Family Consultant Guide will include specifics about each of the awards and how to achieve them. How will new Consultants in Australia and Mexico be supported? We will have dedicated Consultant Support teams for each new country. This way we can ensure that our Consultant Support Representatives are knowledgeable about the new markets, and that our hours of operation will match normal business hours in Australia and Mexico. Will Scentsy Family Store products be available? Scentsy Family Store products will be available at launch. These include catalogs; order forms; Host Rewards brochures; Buy, Host, and Join brochures; business cards; and labels. We will let you know about other items as we get closer to launch. What other tools will be available to new Consultants? Scentsy Consultants in Australia and Mexico will have similar tools to their U.S. and Canadian counterparts. They will have a Workstation and the ability to subscribe to a Personal Website (PWS). New Consultant Starter Kits specific to either Australia or Mexico will be sent to new recruits in their respective country. Will Scentsy Family host welcome meetings in Australia and Mexico? Yes. We are planning to host welcome meetings in both countries. We encourage anyone to attend, and will let you know when and where the events will take place. I have contacts in Australia who would like to join Scentsy. What do I need to do? There are some simple steps you can take to be ready to sponsor in Australia: 1. You must have a PWS. 2. Go to "Subscriptions" in the Account tab on your Workstation and enroll in the International Service Fee Agreement: Out-of-Region. Then, go to the country in which you wish to sponsor and accept the Scentsy Independent Consultant Agreement (SICA) for that country. Once you have agreed to the International Service Fee Agreement: Out-of Region, your potential recruit will be able to go to your PWS and enroll. I have contacts in Mexico I would like to sponsor, but I dont speak Spanish. What can I do to support them? One of the benefits of agreeing to the International Service Fee Agreement is the ability to change your market and language on your Workstation or PWS. If you have the agreement and accept the SICA for Mexico, you will be able to view your Workstation and PWS in Spanish, or in an English language version of the Spanish content. You see what your recruit sees, in whichever language works best for you.

Can Region 1 and 2 Consultants sell in Region 3? Region 1 and 2 Consultants residing in Australia, on or off a military base, cannot sell to Region 3 customers. Region 1 and 2 cannot sell to Region 3 because they have to live in the Region where they do their Scentsy business. 1. Long-distance management of a team is extremely difficult, and the ability for U.S. and Canadian Consultants to support sales in foreign countries is difficult and expensive. 2. The cost of shipping products from the U.S. to Region 3 or other markets would not be feasible due to shipping costs and import fees and duties. 3. Many Region 3 products are not made in the U.S. and will never be made in the U.S. because production costs and inefficiencies make it unreasonable. These costs would have to be passed on to customers meaning higher prices. 4. Residing in the Region if you are not a citizen or authorized to work there doesnt mean you can legally sell there. i. For Region 1 Consultants who are going to be in Australia for a long enough time that they think it makes sense, they could terminate their Region 1 agreement and start up as a Region 3 Consultant but then they could not sell to any Region 1 customers. This is driven from the laws and regulations we have to work under by expanding outside of the U.S. and Canada. Tax structures are different, reporting of income is different, and this equates to it being a lot more expensive to do business long distance as well. Please see the policy below for more information. 6.2.8 International Sales You are only allowed to sell Scentsy Family products or offer the Scentsy Family opportunity within the United States, U.S. Territories, and those countries in which Scentsy Family is operating, as announced in official Scentsy Family literature. Consultants are not allowed to conduct business in any country or region until Scentsy Family has officially launched operations in that country or region. Conducting business includes advertising, recruiting, or selling products. Signing the Independent Consultant Agreement only authorizes the Consultant to work inside the United States and its territories. Additional documentation and agreements are necessary for U.S. Consultants to sell outside of the United States. International agreements and a list of open locations are located within the Account tab on your Workstation and must be accepted and transmitted before U.S. Consultants can sponsor and/or sell outside of the U.S. Can I participate in a fair or show in Mexico or Australia? No. Please make sure you are familiar with Scentsy Familys policy on fairs and shows in other countries. 6.5.4.4 International Fairs and Shows Policy Only Scentsy Family Consultants who have signed a Country-Specific Distribution and/or Sponsorship Agreement AND who are RESIDENTS of that country (regardless of their citizenship) are allowed to enter into agreements and/or contracts with a fair, show, or other temporary sales event in that country. You may not take products across international borders with the intention of selling them. How can U.S. Consultants advertise in Mexico or Australia? Per the Scentsy, Inc. Policies and Procedures, Section 6.4.4.5 (U.S. version), Consultants cannot purchase email, phone, or direct mail lists to contact people they do not know personally.

If Region 1 Consultants have family or friends in Region 3, they can contact them, and/or contact other potential recruits through them. Acceptable: I live in Idaho but my mother lives in Australia. She talks with some of her friends about the great opportunity Scentsy is and refers them to join under me because I have the Region 3 international agreement. NOT acceptable: I live in Idaho and my mother lives in Australia and works at a company. She forwards a generic email from me to all the employees in her company about joining Scentsy. Want to Learn More? For more details on the required agreements, and the ins and outs of sponsoring and selling in our new markets, check out the International Agreements Overview, posted to the International link in the Resources tab of the Workstation.