Distributor Information Pack

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1 Distributor Information Pack Volume 13 This information is for Distributors and serves as a basis of broad education about the product range and offering to clients. For further information, please contact info@papillon.co.za. Copyright: Papillon, /11/2017

2 P a g e 1 The power PURE.TRANSFORMING.DESIRE. of perfume is all about an intangible aura, an embracing memory, a sensual touch, a musical composition. It is the unsaid, the unseen, the untold, the unimagined, the impossible and the mysterious - all at once. Introduction Papillo ea s Butte fl i F e h a d just like the utte fl t a sforms from cocoon into a symbol of beauty, inspiration and desire - it is our wish that these products, and being a distributor selling these products, will have the same liberating effect on your finances and be of great value to you and the community that you live in. At Papillon we have spent a great amount of time to develop products that we believe are of such high quality and value that it will make selling both easy and very lucrative for distributors. We have imported only fine fragrance compounds of the highest quality and longevity to ensure that our perfumes are comparable to yet on average five times less expensive than the original fragrance it was inspired by. Our technically advanced Papillon Pure Skin range is scientifically developed by our own Plant Guru, Schalk van Rooyen, an herbal chemist, biologist and biochemist with two MSc degrees one in plant physiology (SA), and the other in plant chemistry and biology (USA). You can rest assured that our natural skin care products are affordable and of top quality, just like our much-loved Papillon fragrances. At Papillon we are convinced that all women, and increasingly men, would like to wear perfume on a daily basis and that perfume is no longer a luxury item but a necessity. The sad reality is that most people, even the rich, find the price of original fragrances, ranging between R300 and R1,000 per 30ml, beyond their means. The same principle applies to skincare products. Our product range has its roots in fragrances but will include other exciting products, like the PAPILLON PURE SKIN range, as the need arises and if so required by our distributors.

3 P a g e 2 Why sell Papillon perfume and products? Huge Market - with potential customers from all demographics (age, sex, education level, income level and race) Excellent Value Proposition - original branded perfume and skincare products have become unaffordable due to the weakening of the rand, inflation and the increase of luxury goods tax. Our products are on average 5 times less expensive than original branded products but of comparable quality. It is important to note that this is a word-ofmouth product (the quality and value proposition, therefore, sells the product). Top quality - we only source the highest quality compounds for all our products. Flexibility of our business model - low startup costs: for as little as R150 (incl.vat and delivery, Nationally only), you can: Be your own boss On your own time: Part-time of full-time Decide how big or small you want the opportunity to be the sky is the limit! Our products are easy to sell - anyone can be a distributor. Excellent profits between R20 R300 per unit depending on the products ordered. Free access to personalised marketing material and designs - to promote your business Flyers, business cards, banners, u ti g, shi ts etc. you only pay for the printing and market material cost not the design! We are a paperless Company and therefore use Social media, Whatsapp and s to communicate news and specials. Our Facebook Page is updated regularly with posts that you can share to your personal Facebook page. WhatsApp / messages sent from us to you may be forwarded to your customers. Our Blog Page is updated monthly with valuable info about our products and other interesting articles that will help you excel in your business. We encourage the use of Social media and technology to market Papillon to your Customers, but please be advised that there are certain rules that apply when doing so, see the applicable section below. HOW TO BECOME A PAPILLON DISTRIBUTOR Complete the short application form and pay for your Starter Pack. ( Check your for more info on how to take care of your tester kit and how to order in future. A Starter Pack must be purchased if you want to be a Papillon Distributor. You have 3 Starter Pack options to choose from. The Starter Packs are valued well above the Purchase price but have been discounted to 3 price options to suit your pocket and to offer this very unique business opportunity.

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5 P a g e 4 Large Starter Pack R700 Tester kits consist of the following: A stylish silver cosmetic case A product info guide/fragrance list and Pure Skin info guide 69 - atomizers/testers (5ml, content +/- 4ml each) - selected based on international market research +/- Fifty (50) anonymous business cards that distributors can complete and use to promote their business & ensure repeat orders An order/receipt book (for recording distributor to customer sales). All Customer orders must be completed as follows: The customer details (name, surname, cell phone number and/or ). This database is crucial for the distributor and Papillon s su ess as it can be used for all future communication with customers (new products, promotions, competitions, prizes, repeat sales etc.). The product code and quantity ordered of each, per customer. One (1) branded pen to record orders and complete registration form with. One (1) book of 100 smelling strips if usto e s do t a t to test f ag a es o thei ski s. Container with coffee beans for the customer to neutralise their sense of smell when testing different fragrances. Medium Starter Pack R350 2 stylish material drawstring bags. A product info guide/fragrance list and Pure Skin info guide 30 - atomizers/testers (5ml, content +/- 4ml each) Top 20 Female and Top 10 Male Fragrances One (1) book of 100 smelling strips if usto e s do t a t to test f ag a es on their skins. Small Starter Pack R150 A stylish material drawstring bag. A product info guide/fragrance list atomizers/testers (5ml, content +/- 4ml each) Top 15 Female and Top 5 Male Fragrances All tester kit components can be re-ordered at the following costs (prices subject to change): Atomizers/Testers (5ml) can be purchased (for new fragrances & when empty) - R10 each Pen(s) - R3 each Business cards R1.25 each (= R75 for 60) Container with coffee beans - R5 each Smelling strips - R22 each Order books R50 each Branded brown gift bags R2 each

6 P a g e 5 Branded white gift bags R3 each Silver Cosmetic case - R125 Please ote that all o de s a e see as sold and cannot be returned or exchanged afterwards unless the product is received in a damaged or defected condition. Gift wrapping branded gift bags are available to purchase on our website. If you are using your own bags, please make sure that they are plain black/white paper or plastic bags. If Tester kits are purchased and shared by more than one individual (for example: 2 friends, 2 sisters, a mother- anddaughter or stokvel members together) then each distributor sharing the tester kit must still complete a distributor registration form in order to qualify for volume discounts, bonuses and prizes (if applicable). Use this tester kit wisely and with the respect it deserves, and it will be of great value to you. THE PAPILLON SAMPLE DISPLAY UNIT Papillo s folda le display units are available for use in Salons or Retail environments. Complete Display units are R850 each (includes all 69 Testers and smelly strips). The unit on its own can be used for Markets or presentations and cost R350 (excludes testers and smelly strips)

7 P a g e 6 HOW THE BUSINESS WORKS Our business model is straight forward and simple. There are no sales targets or complex demotion rules. We offer support and advice to start, develop and grow your own sustainable Papillon business. We value our distributor relationships and their success is important to us! Please ask questions if the workings of our business model are not clear. As a distributor selling Papillon products, money can be made in the 3 ways: 1) PERSONAL PROFIT - distributors can earn between R20 and R300 profit per unit sold directly to customers, depending on the products ordered. 2) PRIZES - We have an Annual Boost your Business Competition that runs from January to October each year where you could win R10,000 against your account to be spent against any Papillon Products. * 3) REFER AND EARN - Refer a friend to become a Papillon Distributor and earn R500 credit against your account. * *T&C s appl PRICING AND PROFITS Order price unit Volu e discou ted prici g structure : The purchase price per unit is based on the order size (combined number of units per order). Larger volumes mean bigger profits. We do not close your ordering periods, but the more organised you are with your orders the more profit you will make. The following volume discounted pricing structure will apply to orders:

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9 P a g e 8 PLEASE NOTE: These prices apply to South African Distributors, prices might vary in other countries due to increased courier charges and exchange rates. ADDITIONAL INFORMATION a) Placing of Orders You will receive login details to our online ordering shop after completion of the application form and after paying for your tester kit. Papillon distributes parcels nationwide and to Neighbouring countries via an independent Courier Service. All orders must be placed and paid before 12:00 on our Website. If you do not have access to internet, please arrange an alternative ordering method i.e. Sms or whatsapp. Paid orders (payment made by 12:00) are dispatched daily at 13:00. Please use your name and surname as reference when making payments. We use Fastway couriers as our first choice, this is a door to door service, but is some cases we use Pargo or Postnet if your area is e o d Fast a s deli e a eas. Please ote that all o de s a e see as sold and cannot be returned or exchanged afterwards unless the product is damaged of defected. b) Delivery Office Collection: Orders must be placed and paid (EFT) for, at least 1 day before collection to allow sufficient time to prepare parcels and only if collection has been arranged with the office. (For your safety and ours, no cash payments will be accepted) Courier Deliveries We always aim to find innovative ways to reduce, eliminate or subsidise the actual delivery costs to distributors. Distributors have to pay for a portion of the courier costs, but decreases as invoice values increase. All products are couriered using Fastway courier services to distributors that cannot collect from Papillo s office and/or live outside Pretoria. In certain areas outside Fast a s ea h e use Pa go o Post et. O de s a e dispat hed f o Papillo s offi es as soo as your order and confirmation of payment have been received (cut off time for deliveries and payments are 12:00 daily). Couriers normally deliver parcels within 3-4 days after dispatch. Delivery times might be longer for remote/small towns. Door to Door delivery:

10 P a g e 9 - Where distributors live in remote, inaccessible or high risk areas, it may be necessary to send parcels via Pargo/Postnet. - We do not use the South African Post Office due to parcels getting lost. - Please note that we need a delivery address at which a person will be available during working/business hours as an exact delivery time cannot be guaranteed. - In the event of there not being a person at the delivery address when the courier attempts to deliver, the distributor may have to wait until the next day. - It is best to provide a business address or alternatively a residential address where there is definitely someone present at all times to ensure prompt delivery. - Delivery dates and times vary and cannot be guaranteed so allow for a safety margin when making commitments to customers. c) Office hours Pretoria: Mondays - Fridays from 08:00 to 17:00 Saturdays: Closed (unless arranged) Papillon offices will be closed on Sundays and Public Holidays. The offices will also be closed from +/-18 December until approximately 16 January each year unless communicated differently (dates to be confirmed annually). d) Payment terms Payment terms fo all dist i uto s a e st i tl Pa e t ith o de o efo e olle tio of pa els f o Papillo s Pretoria office (if arranged). No credit terms! Payments can be made as direct deposits into our bank account or via Ele t o i fu d t a sfe s EFT s. No he ue o ash pa e ts ill e a epted at Papillo s offi es a d e do ot keep any cash at our premises. Please state your name and surname as the reference when making a direct deposit o t a sfe i to Papillo s bank account. e) Papillon banking details Papillon Pty Ltd Bank: FNB Account number: Sort code: Reference: Initials & Surname for tester kit and all other product purchases

11 P a g e 10 f) Marketing and Social Media Guidelines. The world of branding is often a deep and stormy sea that needs to be carefully navigated. Papillon is here to help you find the best way to clear skies and great sales. In order for Papillon to assist you to correctly use the Papillon brand, we have developed a set of guidelines that set out how and when the Papillon brand can and cannot be used. You can read these guidelines below. We wish u all the success as a Papillon Distributor. Welcome to the Papillon team! PAPILLON BRANDING AND SOCIAL MEDIA GUIDELINES Description of a Papillon Distributor It must always be made clear to a customer that: You are promoting and supplying Papillon products in your capacity as an independent Registered Distributor and not as an employee of Papillon and that you are not authorised to a t o Papillo s ehalf. This should include clear notification of your business name / personal name, trading address and logo (if applicable) as well as the fact that you are a Papillon Distributor.

12 P a g e 11 Further, your company/business/personal name, registered number (if applicable) and registered/main office address must appear on all note paper, purchase orders, invoices, marketing materials, sales brochures, websites, social media sites and other public facing material used by you in relation to Papillon products and services. Compliance with guidelines As a Papillon Distributor you agree: To o pl ith the Papillo B a di g Guideli es i all aspe ts of ou use of the Papillo a d, the Papillon logo and Papillon products; To o pl ith a appli a le ad e tisi g odes issued the Ad e tisi g ta da ds Autho it o a othe egulato with competent authority; To o pl ith all ad e tisi g a d a keti g la s i ludi g ut ot li ited to those covering print, electronic, online and fax marketing; Not to des i e the Papillo B a d o Papillo p odu ts i a det i e tal o deg adi g a e ; Not to pass ou self off as a Papillo e plo ee o pass ou usi ess off as ei g Papillo or the manufacturer of Papillon products. By enforcing these Guidelines, the objectives are to ensure that: Dist i uto s p o ote Papillo p odu ts i a p ofessio al a d ethi al a e that is ot isleadi g to the pu li. G aphi al a d a di g elements for Papillon products are displayed accurately and in accordance with the Papillon Branding Guidelines. Dist i uto s e sites / Fa e ook pages do ot atte pt to i i Papillo o po ate o p odu t e sites / Fa e ook page in a way that misreprese ts the Papillo / dist i uto s elatio ship. It ust e lea l appa e t that a Dist i uto e site / Fa e ook page ot a Papillo e site / Fa e ook page. Papillo Logo s The Papillon logo is the most important element of our visual identity system. It is essential that Papillon Distributors help preserve its integrity at all times by adhering to all Papillon Branding Guidelines. The role Papillon Distributor logos play in communications are to signify to audiences that they are interacting with a Registered Papillon Distributor. The Papillon Distributor logo can be used in conjunction with your company logo (if applicable), but must appear smaller and/or less prominently. Papillon distributors are permitted to use only the Authorised Distributor logos provided by Papillon Head Office.

13 P a g e 12 The Papillon corporate logo should NEVER be used by Distributors on any platform. The Papillon corporate logo is the logo that stands on its own without any other indicators and this logo is strictly reserved for Papillon. Papillon Distributors may either use their Papillon Distributor logos and Facebook banners that are provided by Papillon Head office. A set of Papillon Distributor logos and Facebook banners are available from Papillon. See the download section on (you have to be logged in to view this page) -Please do not change the size of the logos provided to you -Whenever possible the Papillon Distributor logos and product banners should appear in full colour. Where colour is not available, such as in a newspaper advertisement, the logo may be converted to grayscale. -Please obtain prior authorization from Papillon Head office for the following marketing collateral: P i t Media B o hu es We site Ba e s & Poste s Telepho e di e to ies P o otio al ite s Vehi le a di g o ial edia sites a d othe ad e tisi g sites like Gu t ee et. We will provide you with marketing designs for the above means. See our available promotional items on our website Any additional designs will be quoted. Taglines Use of the a e Papillo Pe fu e Papillo Pe fu es o Papillo pe fu e ith a a ea, i.e. Papillon Perfume/s Boks u g o a othe Papillo t ade a ked a es i a corporate tagline is prohibited. Taglines suggesting a higher level of endorsement or backing by Papillon will be rejected. Copyrighted Material Papillon Distributors are not permitted to copy or download any graphics, photographs, images, messaging, or any other content from any Papillon Material including Papillon websites and Facebook page without express written permission from Papillon. Any liability resulting from the failure to comply with this requirement is the sole responsibility of the violator of this requirement. This includes copying the Papillon colour palette and the Papillon corporate logo for use on Distributor marketing. Sharing to Distributor Facebook pages are permitted. Sharing from our Facebook page to a Dist i uto s personal Facebook page is encouraged! All artwork must be requested from Papillon head office. Updates to the Papillon Brand Papillon will notify Distributors in writing of any updates or amendments to any aspect of the Papillon brand. Any amendments to Papillon logos must be made in accordance with the master artwork, which will be made available to all Distributors. Unless otherwise notified, Distributors are free to use up existing stock of material at the time of

14 P a g e 13 notification, before commencing use of stock incorporating the amended or updated Papillon banding. Existing stock may be used for a maximum period of 3 months after notification of any amendments. Internet Policy The Papillon Distributor Internet Policy applies to websites directly or indirectly and extends to third-party websites, including search engines, Internet Advertising (for example: banners, URL, online advertising, pay per click advertising), product descriptions, product titles, page headings, subheadings, copy text, blogs, and social networks (such as Twitter, Facebook, LinkedIn, and so on). Telephone Etiquette No reference may be made to Papillon in pre-recorded telephone messages, nor during the course of answering any telephone calls. Naturally, if the topic of supply of products and related services or the line is broached, these terms may be used in descriptive manner. PowerPoint Presentation Template Please contact Papillon at info@papillon.co.za to receive the Power Point presentation that you can utilize for presentation purposes. Listing in a Telephone Directory When listing in telephone directories (Telkom Yellow Pages, Telkom White Pages, Braby directories, etc.) the word Papillon Perfume or Papillon Perfumes or Papillon Perfume/s with reference to a specific location or any reference to Papillon products may not be used. Dist i uto s a o l use thei Co pa a e/pe so al a e a d the egiste ed Papillo Dist i uto he listi g i a di e to. Facebook guidelines Before embarking on creating a Facebook page or social media profile for business, ask if you have the time to create relevant and engaging content. Poorly managed posts are worse than not being on social media. Please use the guidelines below to create posts that are within the Papillon company brand. You need to analyse why you are venturing onto Facebook? Remember that Facebook users get irritated with adverts and posts that are disguised attempts at sales pitches. Social media is exactly that, social. Your posts need to keep this in mind. You want to communicate and engage your audience not drive people away because every post is aimed at their wallets or business. Before creating your Papillon Distributor Facebook page, make sure to read this documents first, before undertaking any posts or creating any Papillon Distributor Facebook pages. After this has been created, Papillon Head office will have to approve your site/page. Basic outlines of our policies It is important for Papillon to keep track of what our distributors are posting about. While there is no desire to ha pe a i di idual s ights to post f eel, e ha e to take i to o side atio ou a e a d eputatio i the industry and cannot have instances of any content simply being posted on social networks. Regulating the content that is posted is common practice and with the growth of these platforms, it would be negligent of Papillon not to put up some framework so that our content is brand responsible and does not offend and embarrass the Company or staff.

15 P a g e 14 Papillon encourages all its Distributors to associate themselves with the company when posting but when doing this, they must clearly brand their online posts as personal and purely their own. This is to protect Papillon from repercussions that content may generate. Individuals are encouraged to share and comment from the Papillo s Fa e ook page as this content is released and approved by Head Office. Content pertaining to sensitive company information is not to be shared on any social media platform. Divulging i fo atio like the o pa s desig pla s, i te al ope atio s a d legal atte s a e st i tl p ohi ited. Dishonorable, inflammatory and offensive content such as racial, ethnic, sexual, religious, and physical disability slurs are not tolerated. Papillon does not comment on politics, religions and generally shies away from controversial topics. Papillo s Facebook business pages should keep their posts focused on content that is about the product or related to the industry. Proper copyright and reference laws should be observed by Distributors when posting online. Papillon reserves the right to edit or amend any misleading or inaccurate content depicted in Facebook posts. The company also reserves the right to delete posts violating the any of the above or its policies. Social Media Policy Papillon encourages participation by Distributors on social media and networking sites, including Twitter, Facebook, LinkedIn, YouTube and Instagram. Individuals and businesses that choose to contribute on social media sites-while representing themselves in a Papillon distributor capacity- should adhere to the following guidelines: Dist i uto s a ot egiste o use a ou t a es o ha dles that i lude the Papillo trademark or Papillon product names. Dist i uto s a ot use the Papillo t ade a k o Papillo logos, olou palette, a d othe op ighted ate ial fo backgrounds, logos, or avatars. Dist i uto s a ot p ese t the sel es as offi ial spokespe so s for Papillon or Papillon Product. Dist i uto s a e e ou aged to ide tif the sel es as Registered Papillon Distributors in their biographies on social media sites. For Example, page/profile names must be Jane Austin Registered Papillon Distributor or Your company name Registered Papillon Distributor. The use the following Social media page/profile names are not allowed Papillon, Papillon Perfumes, Papillon Perfume, Papillon Skincare, Papillon perfume and Skincare, Papillon Pretoria (or any other area, you are not allowed to claim an area) The area you operate in can be set where you are asked on the social media page for your location. You may use as website link when asked for a website link. Instagram Handles must be used in the following manner: Papillon_Distributor(with your name or initials) Example: Mpho Khumalo may use Papillon_Distributormk / Papillon_Distributormpho / Papillon_Distributor(your nickname) If dist i uto s a e goi g to eate so ial edia pages spe ifi all to p o ote Papillo P odu ts the a e ust e take in the type of posts place on the pages. It is advisable that you share to your page from the Papillon Perfume Facebook page, rather than creating your own posts. All Specially created Facebook pages must include the following:

16 P a g e 15 I the About / Bio section This page is owned by Distri utor a e. Distri utor a e is a Registered Papillon Distributor, but independent from Papillon and is not authorised to make any statement, representation, or warranties or grant any license or permission on behalf of Papillon Perfume regarding any product, service, or Papillon website / Facebook content. Certain materials made available on or through this page are owned by Papillon and cannot be used without the prior written permission of Papillon Perfume. I the Description se tio Papillon brings you perfumes inspired by popular fragrances from around the world. Papillon perfumes only contain compounds of superior quality and longevity at affordable prices. Now you can wear your favorite perfume as an accessory. The following Disclaimer MUST be provided on all platforms where Papillon Products are promoted. Papillon products are packaged under their own trademark and generic packaging and do not resemble the original designer packaging in any way or form. The original name trademarks are the property of the respective designers and/or manufacturers and are strictly used in some instances for comparison purposes and not to mislead the customer. The following is allowed: R160 each F14 Dollar Baby Inspired by Lady Million (Paco Rabanne) R160 each F14 Dollar Baby Inspired by Lady Million (Paco Rabanne)

17 P a g e 16 To avoid possible legal action and customer confusion It is IMPORTANT to remember that Distributors are not allowed to use a picture of the Trademarked / Original Perfume product or Inspired by product for example Prior approval by Papillon Papillon requires sight of all sales, marketing or promotional materials to be used by you in which you wish to incorporate part or all of the Papillon brand or the Papillon logo. If changes are required to a dist i uto s sales, a keti g o promotional material, Papillon will notify the Papillon Distributor accordingly and the Distributor will implement the required changes prior to the first use of the sales, marketing or promotional material. Distributors agree to amend any sales, marketing or promotional material at the Dist i uto o e pe se he e su h do u e ts do ot i Papillo s easo a le opi io o pl ith these guideli es (as may be amended and notified to Distributors from time to time). Use of Papillon Marks in URLs, addresses, and social networking sites With the exception of express written authorization f o Papillo Pe fu e, o thi d pa t a use Papillo Pe fu e, any Papillon Perfume trademark, any Papillon Perfume product or service names, or any confusingly similar marks or names as its domain name, member name or User ID, or portions thereof or as part of an address or any social media identification. Papillon Perfume product or service names may not be included in the Papillon Distributor addresses or website URL domain names, including social media identification pages. Papillon Perfume South Africa will require any such prohibited use to immediately be ceased and the name and/or domain name to be transferred to Papillon Perfume South Africa within a reasonable time established by Papillon Perfume South Africa. Advertising and discounts on websites and Social Media pages. Papillon Distributors are prohibited from advertising Papillon Perfume products and/or discounts on their websites/social pages with the exception of official Papillon Perfume promotions and offers for products which will be communicated to Distributors via /whatsapp/facebook. Papillon Distributors are prohibited from using absolutes or superlatives when referencing any p odu t p i i g. This i ludes the use of la guage su h as the lo est p i e. Papillo Dist i uto s a ot ad e tise gua a teed lo est p i es o the I te et, e sites, o i pa -per-click advertising or use similar phrases. The following phrases or similar such phrases are not permitted: - Rock-bottom prices - Will not be undersold - Guaranteed lowest prices - We o t e o p i e Similarly, Papillon Distributors may not include such phrases as part of their URL addresses. For example, is not prohibited. Papillon Distributors may advertise official Papillon Perfume promotions, advertisements, specials and competitions that are discounts on their websites, as long as they follow the same expiration dates of the official Papillon Perfume promotions/specials. This means Papillon Distributor should remove any promotional messaging from their websites once the promotion expires.

18 P a g e 17 Display of Product Names Papillon Distributors must accurately display current product names at all times. Papillon Distributors are not permitted to copy or download any graphics, photographs, images, messaging, or any content from any Papillon Perfume material including Papillon Perfume website or Facebook page without the express written permission from Papillon Perfume. Any liability resulting from the failure to comply with this requirement is the sole responsibility of the violator of this requirement. This includes the copying the Papillon Perfume colour palette, the Papillon Perfume corporate logo, and any photographs or images contained in the Papillon Perfume marketing collateral for use on distributor marketing materials, electronic presentations, websites or social media pages. Attribution on Websites and Social Media sites Papillon Distributor websites and Facebook pages must clearly and conspicuously state on the home page or on the pages relating to Papillon products, the following legend: This website/page is owned by [company name] / [Person name]. [Company name]/[person name] is a Registered Papillon Distributor, but independent from Papillon and is not authorised to make any statement, representation, or warranties or grant any license or permission on behalf of Papillon Perfume regarding any product, service, or website / Facebook content. Certain materials made available on or through this website/ Facebook page are owned by Papillon and cannot be used without the prior written permission of Papillon Perfume. If you have any questions please contact us, we are happy to assist!

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