HOW THE MEMBER REWARD CARDS WORK A Member Reward Card (MRC) is created for every $100 spent on art. A corresponding "punch" is also generated by that $100, and it will be immediately assigned by the computer to punch a specific slot on an MRC that is already in the X-Press program. For example, if a person buys $1,000 in art, they receive 10 MRC’s for their purchase. As each of these 10 MRC’s enters the X-Press program, it generates a punch. Therefore, this $1,000 art purchase generates a total of 10 punches. The MRC’s and punches from this $1,000 purchase are numbered 1 through 10. The odd numbered MRC’s/punches (1,3,5,7,9) are called "magnetic" and they will punch the X-Press card of the Member who referred the new Member that just made the art purchase. The even numbered MRC’s/punches (2,4,6,8,10) are called "smart" and those punches will go into the global community that will be shared by other Members. Following this equation and explanation, here are some examples of what will happen: If you sponsor or refer a person that makes a $1,000 art purchase, you will receive 5 punches on your X-Press card(s) and the other 5 will go into the global community. If you sponsor a person that makes a $2,000 art purchase, you will receive 10 punches on your XPress card(s) and the remaining 10 punches will go into the global community. When you refer a person that buys $5,000 of art, that Member will create 50 new MRC’s for themselves and will also generate 50 punches of which you (their referrer) will receive 25 punches and the other 25 punches will go to the global community. Remember that each slot on every MRC has a different monetary amount that corresponds to that slot. When a slot is punched, the corresponding amount for that slot is paid to the Member who owns that MRC. One of the most common questions that people ask is: "how much will I get paid if I sponsor a person that makes a $1,000 art purchase?" Here’s the answer: "you will receive a 5% Customer Referral Fee (CRF) of $50 plus 5 punches on your X-Press card(s). We can’t give you the exact dollar amount that you will earn from these punches because every slot has a different corresponding pay out. However, the 5% CRF can be easily calculated, just as the number of punches you will receive for having referred them. Make note that the MRC’s do not necessarily get punched in numerical order. Also, an MRC does not have to be completely punched before another MRC starts receiving punches. This means that more than 1 MRC can be actively receiving punches. The computer knows where to assign the punches, and the assignment of punches is not anything that a Member can control. However, a Member can control the number of punches and the speed of punches that he/she will receive by referring more Members who buy art. This means that if a Member wants more punches on their MRC, they simply refer more Members who make art purchases. Once an MRC has been completely punched (8 punches total) in the X-Press program, it is fully redeemed and the Member who owns that MRC will have been paid a total of $200 for that corresponding MRC. The instant that the MRC receives the last punch, it is immediately moved into the Bonus program. When this happens, it generates a punch that is assigned to the Bonus card of the Member who referred this person. This means that you will receive a punch on your Bonus card for every MRC that redeems for $200 in the X-Press program owned by the Members you refer. Therefore, if you referred a Member who purchased $1,000 in art, you will be waiting for 10 punches in the Bonus program. If you referred a Member who bought $2,000 in art, you will be waiting for 20 punches in the Bonus program, and if you referred a Member who purchased $5,000 in art, you’ll be waiting for 50 punches in the Bonus program! Unlike the X-Press program, the Bonus program has no global community. Therefore, you (the referrer/sponsor) will capture all the punches in the Bonus program that were generated by the purchases of all the Members you referred. When an MRC redeems for $200 in the X-Press program and moves into the Bonus program, it immediately generates a punch on the Bonus card of the referring Member. At the same instant, the computer will also verify if the owner of the newly redeemed MRC is a fully qualified "Member." This means that the Member has purchased at least $600 in art and has already referred at least one other Member who also purchased $600 in art. If the Member has not done this, the newly redeemed MRC that has moved into the Bonus program will instantly "expire." Once a card has expired, it is gone and will not be reactivated. This does not affect the MRC’s remaining in the X-Press program that have not yet redeemed for $200 each. However, if the computer verifies that the owner of the newly redeemed MRC is a fully qualified "Member" then the Bonus card will remain, awaiting punches from their personal referrals. The reason we say that a Member cannot earn money in the Bonus program unless they’ve met the qualifications including having referred a Member who purchased at least $600 is because they would not be awaiting any punches. If a Member has not referred another Member who has purchased art, there are no punches that will follow them into the Bonus program. This is the reason that the Bonus card expires. Understanding the process of how MRC’s are punched will also clarify why Members who refer more people that buy more art, are able to earn more money; and the faster you refer these Members, the faster you make the money. When the computer sees consistent activity of sponsoring, purchasing and repurchasing, you will earn more points that will give you the opportunity to receive more global punches.