Training Guide REDESIGN bw

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							Welcome to the lia sophia Family!
Congratulations on beginning your new business! You’ve joined us at one of
the most exciting times in our company’s history. We’re growing rapidly and
changing the lives of so many women around the country.
Yes, our future is certainly bright. And while we look eagerly ahead, we’re equally
proud of our distinguished history. lia sophia is a company rooted in family, whose
mission is to connect women to their dreams – from obtaining beautiful jewelry
to empowering their financial futures.
Founded over 30 years ago, the company was purchased by my father,
Victor Kiam, in 1986 and named Lady Remington. Dad was a true entrepreneur,
internationally known for his incredible success with Remington Shavers, among
other companies. One of these was Lady Remington, whose fashion forward
jewelry product and business building opportunities were the stuff of dreams.
Over time, the jewelry and the business opportunities have far exceeded my
father’s wildest imagination.
Family has always been a hallmark of this company. My mother, Ellen, has been
actively involved, helping to put together a wonderful signature collection of designer
inspired jewelry. In 2000, I became President, leading the second generation into
the business.
After my Dad passed away, when our family decided to sell Remington Shavers,
we renamed this company, keeping family utmost in mind.
Today our company is named lia sophia after my two young daughters, proudly
celebrating a third generation’s involvement in the business. This is a dream come
true for our family. We truly hope that lia sophia will help make your dreams and
those of your family a reality as well!
On behalf of all of us at lia sophia, welcome!
We are so glad you are here to share the love of jewelry.




Tory Kiam
President




                                                            lia sophia
                                                            SHARE THE LOVE OF JEWELRY®
                   Our Vision
                   lia sophia connects women to their dreams, from obtaining
                   beautiful jewelry to empowering their financial futures.




                   Our Mission                    D.R.E.A.M.S.
                   Daring our Advisors to reach higher than they ever imagined.

                   Rewarding them for success with endless opportunities for
                   personal and professional growth.


                   Encouraging our employees to reach their full potential in a place
                   where their efforts are appreciated and their success celebrated.


                   Assisting our community through our support of and involvement
                   in charitable activities impacting women.


                   Meeting the needs of our Customers through high quality jewelry,
                   affordable prices and a Lifetime Replacement Guarantee.


                   Showcasing         our industry through an outstanding example of ethics,
                   fairness and professionalism in all our business endeavors.




                   Together, we will work to make
                   the dreams of everyone associated
                   with lia sophia come true.




2   Introduction Welcome to lia sophia                                                 5/06
Direct Selling Association
lia sophia is a member of the Direct Selling Association (DSA). Based in Washington,
D.C., the Direct Selling Association (DSA) is the national trade association for the leading
firms that manufacture and distribute goods and services sold directly to consumers.
lia sophia embraces the Association’s mission, “To protect, serve and promote the
effectiveness of member companies and the independent business people they
represent. To ensure that the marketing by member companies of products and/or the
direct sales opportunity is conducted with the highest level of business ethics and
service to consumers.”
The DSA logo is proudly printed on our lia sophia catalog. A link to the DSA website is
available on the Advisor Advantage or on the public website, www.liasophia.com.



Lifetime Replacement Guarantee
At lia sophia, Customer satisfaction is our number one priority. To ensure that we
always exceed your expectations, we offer a FULL LIFETIME REPLACEMENT
GUARANTEE.
Jewelry returned within 120 days will be replaced at no charge. After this, please add a
$5.00 PER ITEM handling charge. If your original selection is no longer available, you will
receive a gift certificate for its full value.
Because this guarantee is offered by lia sophia, ALL replacements or refunds MUST be
handled through the company and NOT the Advisor. Shipping charges are not
refundable and cash refunds are not available after 45 days.
Send defective item along with a copy of your Customer purchase receipt to:
lia sophia
Attn: Exchange Department
855 Foster Avenue
Bensenville, IL 60106
Allow two to three weeks for handling. Thank you.




 5/06                                                      Introduction Welcome to lia sophia   3
           Your Company and You
           Our dedicated Home Office team is eager to serve you. Whatever your needs, don’t
           hesitate to contact us:


           Home Office Contact Info
           lia sophia                                 Corporate website: www.liasophia.com
           855 Foster Avenue                          Advisor Advantage website:
           Bensenville, IL 60106                      your login ID is your Advisor number
           phone: 630-860-3323
           toll-free: 1-800-487-3323
           Fax: 630-860-5634
           Monday-Friday 7am-Midnight



           Contacts
           To reach Customer Service:                 For questions on the use of the lia sophia
           cs@liasophia.com or 1-800-959-3324         logo: logouse@liasophia.com
           (Holds/Exchanges/Backorders/Check          NEW Managers who would like to order
           Questions or Website Billing Questions)    GEMS for their team meetings:
           For general information:                   gems@liasophia.com
           info@liasophia.com
           To reach the Sales Department:
           sales@liasophia.com



           Phone Contacts
           SALES/MANAGER SERVICES                    COMMUNICATIONS
           Trips/Conference                          Public Relations/Ads
           Mary Beth Allen x1056                     Mary Jo Hann x1058
           marybetha@liasophia.com                   maryjoh@liasophia.com

           Status Changes/Monthly                    INTERNET
           Contest/Sales Figures                     Internet Order Entry/Faxed Orders
           Jenny Carney x1022                        Kim Panek x1051
           jennyc@liasophia.com                      kimp@liasophia.com
           Kits/Excellent Beg/New Starts             Personal Websites - Technical Questions
           Donna Weidner x1029                       Technical Internet Support
           donnaw@liasophia.com                      or Personal Websites
                                                     support@liasophia.com



4   Introduction Welcome to lia sophia                                                        5/06
 My Manager

 Name                                        Phone


 Address                                     Email


                                             Office hours




Giving Back – lia sophia
supports Dress for Success
lia sophia is proud to donate a portion of the profits from the sale of a specially
selected piece in each catalog to Dress for Success. Founded in 1996, Dress for
Success is a not-for-profit organization that assists economically challenged women
transition from unemployment to self-sufficiency. Its nationally recognized Professional
Women’s Group provides coaching, mentoring and career skills training for those newly
employed.To date, the organization has helped more than 170,000 women work
towards independence. Visit www.dressforsuccess.org to learn more.




 5/06                                                       Introduction Welcome to lia sophia   5
    Contents
    Introduction – Welcome to lia sophia..............................................1


    Chapter 1 – Getting Started ............................................................7


    Chapter 2 – Hostess Coaching and Holding Shows ......................19


    Chapter 3 – Placing Orders (Internet and Forms)...........................33


    Chapter 4 – Compensation and Recruiting....................................49


    Chapter 5 – Communication, Recognition and Awards .................59


    Chapter 6 – Jewelry Education......................................................71


    Chapter 7 – Guidelines ..................................................................93




6   Introduction Welcome to lia sophia                                                            5/06
                                       Chapter One: Getting Started


Overview
Your Starter Kit has arrived and you’re ready to begin?! Right? Almost! In order to be
successful, you’ll want to be both knowledgeable and organized. This is the perfect time to
familiarize yourself with the products, design your display and create your presentation.
And it’s important to begin with a good foundation. In this chapter, we’ll review:
  ■   Steps to take when your Starter Kit arrives
  ■   Developing your Show presentation
  ■   Setting goals
  ■   Setting up your office
  ■   The Excellent Beginnings Program
  ■   Developing a list of contacts
  ■   Controlling your calendar
  ■   Getting to know the Advisor Advantage
  ■   Managing Expectations



Steps to take when your Starter Kit arrives
Follow the guidelines below to help ensure that you’ve accomplished everything…
  ■   Get to know your Jewelry!
      • Unpack your samples.
      • Locate each piece in the catalog.
      • Read the Fashion Focus (available online in the Advisor Advantage).
        Note: Your temporary login information will be emailed to you once your
        Agreement is submitted.
      • Review the basic product information in Chapter 6.
  ■   Ask your Manager for suggestions. She’s walked in your shoes and can provide you
      with some terrific advice on jewelry ideas to share, ways to ask for bookings and hints
      to highlight the Customer Save Plan. Talk to her after EVERY Show during your first few
      weeks. She’ll be happy to review your results and give you helpful hints to further develop
      your technique.
  ■   Work with your Manager and plan to attend your team’s Monthly Meetings for even
      MORE ideas. Meetings provide both inspiration and motivation to help you realize your full
      potential. In addition, you can learn from others, hear the latest news, see more products
      and make new friends.
  ■   Create your display. Props or no props? It’s up to you!


 5/06                                                             Chapter One Getting Started       7
    Developing your Show presentation
    You’ve opened your samples, reviewed the Fashion Focus, talked to your Manager, and
    scheduled your first Shows. Now it’s time to decide EXACTLY what you’re going to say.
    Use a model? Play a game? Involve your audience? It’s up to you. The training video you
    received in your Starter Kit shares ONE recommended basic Show presentation. Review it
    several times, stopping and starting to take notes and practice as needed. As you watch it,
    keep in mind that there’s no “right” way to present. You are only limited by your own creativity!
    You can also learn a great deal by watching others. Observe the Shows of your Manager and
    those of other Advisors on your team whenever possible.



    Setting goals
    The dictionary says that a goal is “The purpose toward which an endeavor is directed;
    an objective.” As you begin your lia sophia business, you’ll probably hear a lot about goals.
    Everyone has experience setting and achieving goals. From childhood to adulthood, goals are
    a daily part of life. Take a few moments now to think about what your lia sophia goals are.
    Setting a goal is the easy part. Determining the steps to make it a reality requires a bit more
    effort. Again, that’s where your Manager comes in. She’s eager to listen to your dreams and
    then help you develop a plan to make them achievable.
    Now first, let’s dream a little. What would you do with:
    An extra $200 each month? _________________________________
    An extra $500 each month? _________________________________
    An extra $1000 each month? ________________________________
    Now, with that in mind, answer the following:
    My lia sophia monthly earnings/profits goal is? ________________
    With Shows averaging over $650 in sales, most lia sophia Advisors have the opportunity to
    earn almost $200 EACH time they work. Based on your individual income goal and 30% profit,
    review the chart below to determine approximately the number of Shows you’ll want to
    schedule monthly.
                               monthly          shows to           sales
                             income goal        schedule          needed
                                 $390               2             $1300
                                 $780               4             $2600
                                $1170               6             $3900
                                $1300               8             $5200
                                $1950               10            $6500

    Obviously any number of factors (including a higher Show average, individual orders, etc.)
    could more positively influence these numbers.

8   Chapter One Getting Started                                                                       5/06
Setting up your office
As you begin your business, it’s important that you establish a work area. A desk with a
computer would be ideal but any space you can call your own will do. Once you know where
you’ll be working, it’s time to make sure you have all the tools you’ll need to be successful.



Create a list.
  ■   File cabinet or file box
  ■   File folders
      • Use a set of A-Z folders and file copies of your Shows in their Hostess envelope by your
        Hostess’ last name.
      • Additional folders could hold profit statements, business
        receipts, etc.
  ■   Accordion filing folder with alphabetical dividers to create an
      inexpensive but efficient Customer filing system for your Wishlists.
      • Perfect for door prize drawing slips at every Show, these can also
        be used to maintain a quick and inexpensive database of Customers and Hostesses.
        This information can also be entered online.
  ■   Self-inking stamp (include your name, phone, email and website address)
  ■   Answering machine or voice mail
  ■   Calendar – We highly recommend the Franklin Covey® system.
  ■   Binders
      • Master Binder – This should be brought to EVERY Show.
        It should include:
        ❑ Master copy of catalog (with any necessary notations)
        ❑ Fashion Focus (in Printables online in the Advisor Advantage)
        ❑ Current out-of-stock information (check the Advisor Advantage online or call 1-800-
           726-3324 and press 3)
        ❑   GEMS, the monthly promotions flyer
      • Printed materials binder – This is for mailings from the Home Office, including Facets,
        your monthly newsletter.
  ■   Computer




 5/06                                                               Chapter One Getting Started    9
     The Excellent Beginnings Program
     Our Excellent Beginnings Program has been created to help you enjoy generous rewards for
     getting off to a fast and profitable start! Setting your goals is an important step in establishing
     your business to succeed. The Excellent Beginnings Program, which starts the week-ending
     date after your Starter Show is received by the Home Office, will help point you in the right
     direction. You can also earn free jewelry along the way to help you build your business.
     Through personal sales and recruiting, you can earn hundreds of dollars worth of FREE jewelry
     in your first 15 weeks in business. And it all begins by setting a goal for a certain number of
     Shows each week.

     For Sales
     Earn up to $600 in FREE jewelry your first 15 weeks in business.

     For Recruiting
     You’re excited about your business and you’ll want to start sharing this fabulous opportunity
     with others... and enjoy even greater rewards. For EACH Qualified* New Advisor you recruit in
     your first 15 weeks, you’ll earn a $300 jewelry premium.
     Follow this simple plan to setting your Excellent Beginnings goals during your first 15-weeks.
     Keep in mind, if you miss a sales level, you can STILL receive free jewelry at the next level by
     meeting that level’s sales requirement.




                                       Sales                                          Recruiting

            YOU SELL                 TIMEFRAME              YOU EARN

              $1,500                   in your first        $200 in
           in total sales                5 weeks          FREE jewelry
        minimum 3 Shows                                                            For each Qualified
                                                                                   New Advisor* you
        additional $1,500           in weeks 6-10           $200 in                  recruit in your
               OR                        OR               FREE jewelry               first 15 weeks
       $3,000 in total sales      by end of week 10
                                                                                       you’ll earn a
                                                                                     $300 jewelry
        additional $1,500          in weeks 11-15           $200 in                     premium!
               OR                        OR               FREE jewelry
       $4,500 in total sales      by end of week 15




     * Note: In all lia sophia incentive programs, a Qualified New Advisor sells $1,500 or more
              in recognition sales in their first five weeks of business with a minimum of three
              qualified Shows.


10   Chapter One Getting Started                                                                     5/06
Developing a list of contacts –
Who do you know?
You’re beginning your business and it’s time to tell the world!! Fill in the names and phone
numbers of people you know. When complete, you’ll be able to contact them for bookings. For
your convenience, a recommended script to use when calling them follows.


Friends and Family

1. __________________________________________ 6. _____________________________________

2. __________________________________________ 7. _____________________________________

3. __________________________________________ 8. _____________________________________

4. __________________________________________ 9. _____________________________________

5. __________________________________________ 10. ____________________________________


Neighbors

1. __________________________________________ 6. _____________________________________

2. __________________________________________ 7. _____________________________________

3. __________________________________________ 8. _____________________________________

4. __________________________________________ 9. _____________________________________

5. __________________________________________ 10. ____________________________________


People You Meet Every Day (hair salon, bank, dry cleaners, doctor’s office, etc.)

1. __________________________________________ 6. _____________________________________

2. __________________________________________ 7. _____________________________________

3. __________________________________________ 8. _____________________________________

4. __________________________________________ 9. _____________________________________

5. __________________________________________ 10. ____________________________________




 5/06                                                          Chapter One Getting Started     11
     Social Groups, and Club Members
     (school, scouts, PTO, sports, health club,religious group, bingo)

     1. __________________________________________ 6. _____________________________________

     2. __________________________________________ 7. _____________________________________

     3. __________________________________________ 8. _____________________________________

     4. __________________________________________ 9. _____________________________________

     5. __________________________________________ 10. ____________________________________


     Friends from School or College

     1. __________________________________________ 6. _____________________________________

     2. __________________________________________ 7. _____________________________________

     3. __________________________________________ 8. _____________________________________

     4. __________________________________________ 9. _____________________________________

     5. __________________________________________ 10. ____________________________________


     People from Your Holiday Card List

     1. __________________________________________ 6. _____________________________________

     2. __________________________________________ 7. _____________________________________

     3. __________________________________________ 8. _____________________________________

     4. __________________________________________ 9. _____________________________________

     5. __________________________________________ 10. ____________________________________




12   Chapter One Getting Started                                                         5/06
What to Say
Now that you know who you’re going to call, let’s talk about WHAT you’re going to say. Below
is a recommended script to follow. Because your initial contact is so important, we strongly
recommend a personal phone call. There’s absolutely no substitute for the excitement in your
voice! Don’t hesitate to practice in front of a mirror and remember to smile!
Recommended phone script:
“Hi (name). This is (your name). I’m just calling to let you know about a fantastic new company
I’m working with lia sophia. We sell fabulous designer inspired jewelry. There are over 400
styles to choose from – contemporary to classic and casual to really cute! There’s something
for everyone!
In order to get my business off to a great start, I’m asking some of my closest (friends/relatives
/etc.) to help me out and to host a Show for me. All you need to do is select a date, fill out
a Guest List and I’ll do the rest!
Plus, as my Hostess, you’ll enjoy some terrific savings and even earn some fantastic
FREE pieces of your choice.
Does that sound good?
Which date works best for you? I’ve got Tuesday the 10th and Thursday the 12th
(insert your dates) open.”
This of course is just a guide. Don’t hesitate to add your own personality and of course ask
your Manager to help you roleplay with her before you begin.




 5/06                                                             Chapter One Getting Started        13
     Controlling your calendar
     One of the keys to early success is to ensure that YOU are controlling your calendar and that
     your calendar is NOT controlling you. The best way to do this is to set guidelines early on.

     Time Management
     In order to be successful, we believe that you should work with a day planner of some kind.
     We recommend the Franklin Covey® System. Regardless of the time management method you
     use, before you begin determining your business commitments, it is important to schedule all
     your other personal and professional appointments.
     What does this mean? If you attend Church functions on a regular night, write it down. If your
     child plays on a team with regularly scheduled practices, write it down. If your husband has
     commitments after work, write it down. Then add other one-time commitments each month –
     a child’s birthday party, a wedding, a shower.
     Then and only then, are you ready to determine your availability to schedule Shows.

     Advertised Office Hours
     One of the first things that your Manager probably shared with you was her office hours.
     These are the times that she has set aside to be available to her Customers, Hostesses and of
     course, her Advisors.
     If your Manager’s office hours are Monday, Wednesday and Friday from 10:00-Noon, you know
     that you can usually reach her then. If you contact her on Tuesday at 9:00 a.m., understand
     that you will probably need to leave a message on her answering machine.
     Although you’re new to the business, you should absolutely determine your office hours right
     away. What times work best for you? Think about a typical day. If you have children at home,
     consider naptimes. If you have school age kids, perhaps mid-day would be better.
     Ideally, you should also schedule at least one evening set of hours too. This will help
     accommodate Hostesses, Customers and Potential New Advisors who work outside
     of their homes.

     Unadvertised Office Hours
     Additionally, you will want to schedule “unadvertised office hours.” Although this is also time in
     your office, it is an opportunity for you to handle paperwork, keep up with filing, enter orders
     online, update your personal website, and receive news from the Home Office by visiting the
     Advisor Advantage online or reviewing Facets at home.




14   Chapter One Getting Started                                                                     5/06
Getting to know the Advisor Advantage
lia sophia has created a remarkable Advisors-only section of the website. You will soon find that
this is one of the most valuable tools that your company offers. With just a few clicks, you can:
  ■   Enter Orders (supply, direct, Shows, samples, Starter Shows, etc.)
  ■   Check the status of Shows
  ■   Show Assistant includes detailed Hostess Coaching tips, suggestions on Show presentation
      along with a fantastic email tool that gives you the opportunity to send Show Guests
      E-vitations along with reminder, thank you and sorry you couldn’t attend emails. Those
      unable to attend are also given the opportunity to shop online and place their orders
      DIRECTLY on the website. Additionally, you can invite your Hostess to utilize the Hostess
      Connection at your personal website to enter her Guests’ email addresses, contact them,
      track attendance and receive additional Hostess Coaching tips.
  ■   Create and maintain your own personal website
  ■   Review your current sales and profits
  ■   View up-to-the-minute news from the Home Office
      • Promotions
      • Events
      • Stock
      • Awards
      • and MORE!
  ■   Access an extensive assortment of printable forms
  ■   Contact Home Office support 24/7

Logging in is easy.
Once your Agreement is entered, you will receive an email with a temporary ID number and
password that will be valid for 30 days. When your Starter Show is submitted, you will receive
your permanent login number and password.
Note: Your Login ID is your Advisor Number.
Example: If your Advisor number is 005428, then your login id is 005428. Your password is
assigned but may be changed by you.




 5/06                                                            Chapter One Getting Started        15
     Managing expectations
     In the next chapter, you’ll begin learning about a very important partnership – you and your
     Hostess. Before then, we wanted to talk about your other partner in this business – lia sophia.
     We enthusiastically embrace EACH OF YOU as our partner in success.

     Your Role…
     Your role as an Advisor is to represent the company and its product line, maintaining the high
     ethical standards and professional image as a leader in direct sales of quality fashion jewelry.
     Customers will look to you as a trusted and knowledgeable resource – one who will help them
     make their jewelry selections while maximizing their fashion dollar.

     Our Role…
     Our role as a company is to supply you with quality fashion jewelry products and offer the
     training, incentives, and sales tools you need to launch and develop a successful lia sophia
     business. We take great pride in watching Advisors develop self-confidence, realize their
     potential and reach lifelong goals. You’ll look and feel your best – and find rewards every step
     of the way.




16   Chapter One Getting Started                                                                   5/06
                                                  Chapter One: Quick Quiz

1. When your Starter Kit arrives, you should:          5. A Qualified New Advisor is one who holds a
                                                          minimum of 3 Shows and
   a. get to know the jewelry
                                                           a. sells $1000 or more in their first four weeks
   b. ask your Manager for suggestions
                                                              in business.
   c. plan to attend Monthly Meetings
                                                           b. sells $1500 or more in their first five weeks in
   d. create your display                                     business.
   e. all of the above                                     c. sells $2000 or more in their first five weeks in
                                                              business.
2. The Fashion Focus is                                    d. sells $2500 or more in their first four weeks
   a. a magazine                                              in business.

   b. a collection of information about
      the current product line                         6. Times set aside to be available to
                                                          Customers, Hostesses and any New
   c. a website                                           Advisors are called…
   d. a catalog                                            a. Advertised office hours
                                                           b. Unadvertised office hours
3. lia sophia Shows average over ___ in sales.
                                                           c. Advertised office time
   a. $250
                                                           d. Unadvertised office time
   b. $400
   c. $500                                             7. The Advisor-only section of the
   d. $650                                                website is called
                                                           a. Advisor Access
4. The Excellent Beginnings Program offers
                                                           b. Advisor Advantage
   rewards for ______ and ______ in your first
   15 weeks in business.                                   c. Advisor Only

   a. shopping and selling                                 d. Advisor Announcements

   b. wearing jewelry and recruiting
                                                       8. Questions can always be directed to…
   c. shopping and doing Shows
                                                           a. The website
   d. sales and recruiting
                                                           b. My Manager
                                                           c. The Home Office
                                                           d. All of the above




                     Answers available online in Printables in the Advisor Advantage.
     5/06
18   5/06
      Chapter Two:                         Hostess Coaching and Doing Shows



Overview
If Shows are a destination, bookings are your roadmap to success. Without them, you’re out
of business. When a Hostess agrees to open her home to lia sophia, your adventure really
begins. She becomes your partner and when she succeeds, you do too!
Once you’ve finished reading this section, you’ll want to watch our Training DVD and listen to
our Hostess coaching audio CD. Both are helpful tools that have been created to assist you
in perfecting your own personal style.
In this chapter, we’ll review:
  ■   Working with your first Hostesses
  ■   Understanding the Hostess Program and the Customer Save Plan
  ■   Preparing Hostess Packets
  ■   Preparing Customer Folders
  ■   Preparing Advantage Packets
  ■   Steps to coaching success
  ■   Invitations and follow-up
  ■   Preparing for a Show
  ■   Show presentation outline
  ■   Booking tips
  ■   Overcoming booking objections
  ■   Alternative sales




 5/06                                         Chapter 2 Hostess Coaching and Doing Shows         19
     It all begins with a plan!
     Working with your first Hostesses
     Your first Hostesses are usually friends and family members who are eager to help you
     get started in your new business. Preparing for their Shows and coaching them for success
     is great practice. It gives you a chance to get comfortable with your business among friends.
     You’ll want to thank them for their support and then follow all the usual steps for conducting
     a successful Show.



     Partners in Success
     You and your Hostess are always a team, working together for a common goal. She’s opening
     her home to your business, bringing you Customers, future Hostesses and New Advisors. In
     return, you’re rewarding her with free jewelry and fabulous discounts. You’re working as
     partners, each with a vested interest in building Show sales.



     Know the Hostess Program
     & Customer Save Plan
     Review the Hostess Program and Customer Save Plan in the catalog until you know them. Be
     excited about what you have to offer your Hostess and her Guests. When you’re excited, they’ll
     be excited, too.
     Our Hostess Program is one of the MOST generous in the industry and with each Qualified
     Show*, your Hostess is entitled to:
       ■   20% of Show sales in FREE jewelry credits
       ■   Up to four items at special Hostess Bonus prices
           ($15 unless otherwise noted)
       ■   Two items at half-price
       ■   An additional half-price selection when she purchases at a Show booked from hers
       ■   AND, with 10 orders and two dated bookings, the Hostess can receive 40%
           (that’s DOUBLE!) of her Show sales in jewelry credit for only $15 plus tax.
     Plus, lia sophia Customers enjoy savings too! Every third item purchased is 1/2 price. And they
     can ALWAYS take the MOST expensive item at 50% off!
     Additionally, Guests in attendance at a Show have the opportunity to take advantage of other
     specials. These are thank you’s offered for Guests AT the Show ONLY.




     * A Qualified Show is a minimum of $250 in Show sales.

20   Chapter 2 Hostess Coaching and Doing Shows                                                   5/06
“Coaching” is Key
To ensure the most sales, bookings, and profits from every Show, you want to “coach” your
Hostess in what she needs to do to fulfill her half of the partnership. This involves preparing
a Hostess Packet and spending time with her – in person or by phone – reviewing the contents
of the packet and the Hostess Program.



Preparing Hostess Packets
Start by encouraging her to complete the outside of the Hostess
Envelope. Then finish the Hostess Packet by filling it with the following:
  ■   Guest List
  ■   Stamped, self-addressed envelope
      for return of Guest List
  ■   Two lia sophia catalogs
  ■   GEMS, monthly promotions flyer
  ■   Extra invitations (for Guests she might see
      that she didn’t include on her Guest List)
  ■   If you have a personal website, highlight
      the benefits to her from the Hostess Connection               Gems                 Catalog
      and let her know when you’ll be emailing her the
      special access code.



Preparing Customer Folders
Equally important are materials to hand out to Customers. Your Customer Folders
should be assembled PRIOR to each Show and include:
  ■   Catalog
  ■   Customer Selection Ticket
  ■   Wishlist
  ■   GEMS, monthly promotions flyer
  ■   Opportunity brochure




                                                                             Opportunity Brochure



 5/06                                           Chapter 2 Hostess Coaching and Doing Shows          21
     Preparing Advantage Packets
     When a Potential New Advisor expresses interest in the business,
     give them an Advantage Packet.
       ■   Catalog
       ■   Opportunity brochure
       ■   Agreement
       ■   Business card
       ■   Personal note


                                                                                                       Agreement
     Steps to coaching success
       ■   Thank the Hostess for supporting your business and review the Hostess Program.
           Get her excited about all the FREE jewelry she’s going to earn by hosting your Show!
       ■   Give your Hostess a Hostess Packet. Ask her to complete the Guest List with 30 names
           and addresses. Explain the need to over-invite because not everyone will be able to attend.
           Thirty invitations will usually result in 10-12 Guests. Explain that you will mail the invitations
           for her. The extra invitations in the Hostess Packet are for her to hand to people she may
           have forgotten to invite. Of course, your Hostess will also have the opportunity to invite her
           Guests using e-vitations (email invitations). Steps to using these are detailed online in the
           Advisor Advantage.
       ■   Ask for the Guest List to be returned within three working days,
           either delivered in person or mailed to you in the stamped return
           envelope. If there’s no time to mail the Guest List, take it over the
           phone. Have the Hostess call and invite Guests. Then mail invitations
           as reminders. You should not consider a Show a solid booking until
           you have the Guest List returned to you.
       ■   Review the Hostess Wishlist. Ask the Hostess to go through the                            Guest List
                                                                                            (only a portion shown)
           catalog, choose all the items she likes best, and write them down on
           the Wishlist. Having a goal will inspire her to work for high attendance
           and save time writing up her order after the Show.
       ■   Encourage her to talk to Guests about booking their own Shows.
           Remind her that two bookings and 10 orders will DOUBLE her Hostess Credits.
       ■   Suggest simple refreshments that make hosting a Show look easy.




22   Chapter 2 Hostess Coaching and Doing Shows                                                           5/06
Invitations and follow-up
Once the invitations are in the mail, the process has just begun. Again, your successful
partnership with your Hostess involves working with her from the time of the booking until the
Show is held and closed. With each booking, make time to:
  ■   Place a follow-up call to the Hostess once you receive her Guest List.
      • Thank her again for hosting the Show.
      • Let her know EXACTLY when you’ll be mailing the invitations.
      • Stress the need for the Hostess to call all the Guests who do not RSVP. Explain that
        her personal follow-up will help ensure the attendance she wants to help maximize
        her Hostess Benefits.
      • Remind her to talk to her friends about booking their own Show.
        (Again, bookings help increase her Hostess Benefits!)
  ■   10-14 days prior to the Show, mail the invitations.
      • Send one invitation to the Hostess, so she knows when her friends receive theirs.
        Consider including a note with the following additional coaching tips.




             Just a note to let you know your invitations were mailed
             today. If your Guests have not responded within two days
             PRIOR to your Show, please give them a reminder call, and
             let them know shopping with lia sophia:
             • is fun with lots of great fashion ideas!
             • is very affordable using our terrific CUSTOMER SAVE
               PLAN – every third item is HALF price!
             • offers a Lifetime Replacement Guarantee!
             If someone cannot attend your Show, offer them the
             opportunity to place an order or book a Show. You will
             receive full credit towards your Show for both outside orders
             and bookings.
             You also have an exciting choice to make. Your Show can
             become the beginning of a fun-filled business. If you are
             interested in turning four to six hours per week into $700 or
             more per month, we’ve got a lot to talk about!
             Either way, your Show will be special! I’ll be in touch one or
             two days before your Show to check Guest attendance and for
             directions to your home.
             Sincerely,




 5/06                                                 Chapter 2 Hostess Coaching and Doing Shows   23
       ■   One or two days before the Show, place another follow-up call to see how things are
           going. Use this call to:
           •   share your enthusiasm for the success of her Show.
           •   remind her to call anyone who has not responded.
           •   check on confirmed attendance and outside orders.
           •   ask about any advance bookings.
           •   suggest again that she keep refreshments simple.
           •   get directions and confirm your time of arrival.
       ■   After the Show, send a thank you note. Consider ordering lia sophia notecards from the
           LogoLine brochure available online in the Advisor Advantage and add the following copy:




                 Dear (Hostess name),
                 I want to thank you for hosting a lia sophia Show in your
                 home. It was great fun for everyone!
                 I can’t wait for your Guests to receive all the fantastic
                 jewelry they ordered. And, I know you’ll love all your
                 incredible FREE selections. What a wonderful bonus for
                 being one of my Hostesses!
                 Your package will arrive in approximately two weeks.
                 Enclosed are copies of each Guest’s order. You may use
                 these to sort their jewelry when it arrives. Give each Guest
                 their copy when you give them the jewelry.
                 Thanks again for being a GREAT HOSTESS! Do not
                 hesitate to call me at (phone #) if you have any questions.
                 I can’t wait to work with you again!
                 Sincerely,


                                                                                          Letterhead
                                                                                           Postcard
                                                                                           Notecard




24   Chapter 2 Hostess Coaching and Doing Shows                                                  5/06
Preparing for a Show
You’ve reviewed the steps to successful Hostess coaching. You’ve made
plans to listen to our terrific Hostess coaching audio CD. Now it’s time to
prepare your actual Show presentation. As you develop your own style,
always watch carefully, listen closely and take notes.
In order to make the best use of your preparation time, you’ll want to:
  ■   Watch the Show DVD presentation – once, twice, three times or more.
      Review it until you feel comfortable.
  ■   Learn from the best. Don’t hesitate to ask your Manager if you could
      attend one of her Shows!
  ■   Practice… Practice… Practice!
      • Become familiar with the samples in your Kit and refer to
        Chapter 6 in this manual to better understand what you’re offering.
      • Be sure to add the lia sophia selections you received as a Hostess to your Kit samples.
        Remember, the more you show, the more you’ll sell.
      • Practice in front of a mirror.
      • Practice in front of a “live” audience – start with your family.
  ■   Review the Advisor Advantage stock information. The online site will quickly alert you
      to any items that are currently out of stock and minimize Customer disappointment.
  ■   Pack up your samples. Until you get comfortable, you may want to use this handy
      Show Checklist. It is also available in Printables in the Advisor Advantage to help you
      remember to bring everything you need.
  ■   Get ready to have fun! Everyone is a little nervous
      before doing their first few Shows, even when the
      Guests are friends and relatives. Just put on your
      brightest smile and think about sharing a fun time with
      the Hostess and her Guests. Any nervousness will soon
      pass as you see the Guests enjoying themselves and
      loving your lia sophia jewelry collection. Don’t worry
      about saying something wrong or forgetting something
      – you’re most likely the only one who will notice.




 5/06                                              Chapter 2 Hostess Coaching and Doing Shows     25
     Show presentation outline
     Your part of the Show presentation should take approximately 20-30 minutes. Use this handy
     outline to help you create your very own presentation.

     Before the Show Begins
     To make yourself more comfortable, we recommend greeting the Guests and interacting with
     the audience prior to starting your presentation.

     Introduce Yourself/Thank Hostess
     Introduce yourself. Tell why you became a lia sophia Advisor. Thank the Hostess and present
     her Hostess gift. Thank Guests for attending.
     NOTES: ___________________________________________________________________________
      __________________________________________________________________________________

     Introduce lia sophia
     lia sophia, formerly known as Lady Remington, has been a leader in providing high-quality
     fashion jewelry for more than 30 years. It’s still owned today by the Kiam Family of Remington
     Shaver fame. With an incredible direct selling opportunity, the company couldn’t be more proud
     of the dreams it’s helped make come true around the country. We offer an extraordinary
     product line – many of our pieces are exclusive creations; others are influenced by famous
     designers from around the world.
     NOTES: ___________________________________________________________________________
      __________________________________________________________________________________

     Highlight the Lifetime Replacement Guarantee
     If for any reason you are not completely satisfied with any lia sophia purchase, we will be
     happy to replace it with the same or a new item of your choice. No one else in the jewelry
     industry offers such a generous guarantee. (See back of Customer Selection Ticket for details).
     NOTES: ___________________________________________________________________________
      __________________________________________________________________________________

     Explain Customer Save Plan… with Enthusiasm!
     Every third item you purchase is 1/2 price. So you’ll want to choose at least three items and
     make the most expensive item your 1/2 price choice.
     NOTES: ___________________________________________________________________________
      __________________________________________________________________________________




26   Chapter 2 Hostess Coaching and Doing Shows                                                      5/06
Pass Out Wishlists
Use the Wishlist to write down your favorite selections during the presentation. It’s not an order
form; it’s just a scratch pad. Write down at least three items, so you can see the advantage of the
fantastic Customer Save Plan. You’ll also be helping (Hostess) maximize her Hostess Benefits.
NOTES: ___________________________________________________________________________
__________________________________________________________________________________

Demonstrate Samples
It can be fun to have a model from the Guests at the Show to assist you. Choose someone
wearing a plain neckline. Explain product tips as you demonstrate the jewelry. This is also
a good time to drop booking seeds: i.e. “(Hostess) has this on her Wishlist to earn free.”
NOTES: ___________________________________________________________________________
__________________________________________________________________________________

Booking Incentives
Explain all the benefits of being a Hostess and booking a Show with you. Include other
booking seeds. For example, “When two of you book your own Shows tonight, you’ll be
helping your Hostess double her credits.” Then offer any additional booking incentives
suggested by your Manager.
NOTES: ___________________________________________________________________________
__________________________________________________________________________________

Ask Guests for Customer Feedback
Refer Guests to the back of their Wishlists and lead them in filling out the Customer Information
side of the form. This will provide you with important information about who’s interested in
booking a Show or becoming a lia sophia Advisor.
NOTES: ___________________________________________________________________________
__________________________________________________________________________________

Mention Delivery and Payment
The Show orders will be delivered to the Hostess in about two weeks after the Show closes. We
accept Visa, Mastercard and Discover, personal checks made payable to the Hostess and cash.
NOTES: ___________________________________________________________________________
__________________________________________________________________________________




 5/06                                          Chapter 2 Hostess Coaching and Doing Shows             27
     Hand Out Catalogs
     We always recommend passing out catalogs after your presentation is complete, so you don’t
     lose the attention of your Guests. Invite Guests to try on samples as they shop. Remind them
     to write their favorites on their Wishlists and remember every third (most EXPENSIVE!) item
     is 1/2 price.
     NOTES: ___________________________________________________________________________
      __________________________________________________________________________________

     Provide Individual Customer Service
     Work with Guests one-on-one in writing up their orders. Invite every Guest to book her own
     Show and add to her jewelry wardrobe. Offer future Hostesses only the next few Show dates
     you have available. (This will simplify booking and help you control your datebook). Remind
     Guests to obtain and retain their Customer Purchase Receipt when they receive their order for
     any exchanges that they may have. Mention the Lifetime Replacement Guarantee again.
     Suggest keeping their receipt in their jewelry box for convenience.
     NOTES: ___________________________________________________________________________
      __________________________________________________________________________________

     Close the Show with Your Hostess
     While you’re packing up, have the Hostess review her Wishlist for her final selections. Tally up
     the Show total, figure the Hostess credits, and be excited in showing her how little she’ll be
     spending to get everything on her list. Talk to her about the lia sophia opportunity and leave
     her an Advantage Packet for herself or to share with someone else. Remind her that you’ll keep
     the Show open up to three days for her to obtain more orders. Closing quickly will help
     everyone receive their orders promptly.
     NOTES: ___________________________________________________________________________
      __________________________________________________________________________________




28   Chapter 2 Hostess Coaching and Doing Shows                                                  5/06
Booking tips
As we mentioned before, bookings will be the lifeline of your business. Without bookings,
you’re out of business. In order to keep your calendar as full as you’d like, keep these handy
hints in mind:
  ■   Make it a goal for every Show you hold to result in at least two to three future Shows.
  ■   Plant “booking seeds” throughout your Show. Examples:
      • “So many of my Hostesses choose this piece with their free credits.”
      • “As the previous Hostess, (name) has the privilege of buying any item she
        wants tonight for half price.”
      • “This special item is just for lia sophia Hostesses this month.”
      • “My Hostesses average more than $______ in free jewelry.”
  ■   A Customer with a long Wishlist is a perfect future Hostess.
      • “(Name), why don’t you purchase three items tonight, and then we’ll get the rest
        of these for you free when you host your own Show.”
  ■   Book Shows closely on your calendar – within two to three weeks is best.
      • Shows dated further out have a far greater rate of cancellation.
      • Always know your next two open dates. You should be able to offer these
        as soon as someone expresses interest.
  ■   Decide what days you want to work each month and offer potential Hostesses
      only these dates. You’ll stay in control of your calendar.
  ■   Keep Wishlists for future business. When needed contact previous Customers
      to obtain new bookings.
      • “Hi, (Customer). This is (your name). I’m so excited. I just got my new jewelry samples
        today and I thought of you right away. Can I reserve the 15th or 18th (add your available
        dates) to hold a Show for you and your friends? You’re going to love this new collection!”
  ■   And don’t hesitate to go back to your original “Who Do You Know” list in Chapter One
      for booking ideas. Remember when you contact people, be excited and your enthusiasm
      will pay off!




 5/06                                            Chapter 2 Hostess Coaching and Doing Shows          29
     Overcoming booking objections
     Objections usually come from a lack of knowledge or understanding of the lia sophia program.
     Guests who pose objections are just looking for reassurances. Using a variance of the “feel,
     felt, found” method can help put the potential Hostess at ease.

     Objection: “I’ll have to see if my friends are interested.”
     Response: “I know how you feel. I felt that same way when I was a Hostess. Now I’ve found
     that it’s best if we select a date, then if that doesn’t work I can always change it. How about
     Thursday, the 21st?”

     Objection: “My home is just too small.”
     Response: “I understand how you feel. Many of my most successful Hostesses felt that way.
     I’ve found that smaller is really better. It makes for a more casual Show and I can give Guests
     my personal attention. Would a week night or weekend work best for you?”

     Objection: “I’m just too busy right now.”
     Response: “I know how you feel but I’ve found that busy people have the best Shows.
     Wouldn’t a fun evening with friends give you a nice little break? Plus I do almost all the work.
     We could hold your Show on a Friday night in the early evening. I’ve got both the 20th and the
     27th available.”

     Objection: “I don’t know many people.”
     Response: “Then let’s schedule a Show and we’ll take care of that! I have a contact sheet that
     I use that will work for you too. We’ll just invite everyone to bring a friend, and we’ll turn four
     people into eight people just like that. I bet some of tonight’s Guests would like to attend as
     well. Let’s set a date.”

     Objection: “There have been so many Shows lately.”
     Response: “I understand how you feel. I felt that way too. But I’ve found that people really
     enjoy a night out. And jewelry appeals to everyone… we can always use more, especially with
     lia sophia’s unique Customer Save Plan. Do you think your friends would prefer a week night
     or a weekend?”

     Objection: “My husband wouldn’t like it.”
     Response: “My husband used to be the same way. But I found that he welcomed the
     opportunity to spend a night out with friends. Let’s set a date… maybe a Friday night would
     be good. What do you think?”




30   Chapter 2 Hostess Coaching and Doing Shows                                                     5/06
Alternative sales
There are lots of ways to increase sales without adding time away from home to your calendar.
Keep in mind, these should be considered SUPPLEMENTAL sales as they aren’t the BEST
ways to get bookings and your best profits will come from Shows. Consider:
  ■   Book Shows. A Hostess takes orders from the catalog only. The same Hostess and
      Customer benefits apply.
  ■   Jewelry Bonanzas. One or more Advisors pool their time and talent and invite numerous
      Hostesses to one location, usually a church hall, restaurant, etc. This allows numerous
      Shows to be held at the same time.




 5/06                                         Chapter 2 Hostess Coaching and Doing Shows        31
                                                  Chapter Two: Quick Quiz

1. Two important programs that should be                5. Hostess Packets should include _____.
   committed to memory are the                              a. Catalogs
   a. Hostess Program and the Customer Save Plan            b. Guest List
   b. Hostess Program and the Excellent                     c. Extra invitations
      Beginnings Plan
                                                            d. All of the above
   c. Excellent Beginnings Plan and the Customer
      Save Plan
                                                        6. Customer Folders should include _____.
   d. None of the above
                                                            a. Catalog, Customer Selection Ticket, Wishlist,
                                                               Opportunity Brochure
2. In the Hostess Program, with 10 orders and
                                                            b. Catalog, Hostess Selection Ticket,
   two dated bookings, the Hostess can
                                                               Opportunity Brochure, Agreement
   receive ___ of her Show sales in jewelry
   credit.                                                  c. Catalog, Wishlist, Opportunity Brochure,
                                                               Agreement
   a. 50%
                                                            d. None of the above
   b. 40%
   c. 30%
                                                        7. For optimal Show attendance, encourage
   d. 25%                                                  your Hostess to invite at least _____
                                                            a. 50 Guests
3. Doubling the Hostess Credit costs the
                                                            b. 40 Guests
   Hostess only ___.
                                                            c. 30 Guests
   a. $10
                                                            d. 20 Guests
   b. $15
   c. $20
                                                        8. Once given to the Hostess, a completed
   d. $25                                                  Guest List should be returned to you within
                                                            a. Two weeks
4. With the Customer Save Plan, every third
                                                            b. One week
   item purchased is __.
                                                            c. Five working days
   a. One-third off
                                                            d. Three working days
   b. One-quarter off
   c. One half-off
                                                        9. Invitations should be mailed _____ days
   d. FREE                                                 prior to the Show.
                                                            a. 10-14
                                                            b. 5-7
                                                            c. 21
                                                            d. None of the above

                      Answers available online in Printables in the Advisor Advantage.
                                                                                                    5/06
        Chapter Three:                           Placing Orders – Internet & Forms



Overview
You’ll quickly find that you have lots of orders to place – Shows, supplies, samples. And each
one you submit helps you write your own profit check! That’s why it’s so important that you
understand how to submit each order type correctly. To help you, lia sophia has made it
simple and convenient! Orders can be submitted in three ways: mail, fax or the easiest
of all, ONLINE through the Advisor Advantage.
Regardless, you’ll want to complete a Customer Selection Ticket for each Customer and
a Show Summary Hostess Selection Form for each Show.
As you complete the order forms, please keep the following in mind:
  ■   When filling out order forms the Hostess is always Customer 01.
  ■   Place Guest orders using Customer numbers 02 through 98.
  ■   Customer 99 should be used for Hostess Bonus Items and “Thank You Gifts” only.
  ■   Hostess Selection Tickets with an XX should be used for Bank Card
      payments made by the Advisor.
  ■   If you are sending in multiple orders, please send in one check or money order per Show.




 5/06                                          Chapter 3 Placing Orders – Internet and Forms     33
     Order Checklist


         lia sophia
         SHARE THE LOVE OF JEWELRY®                   order checklist


             ❑ Check Customer Orders for accuracy.
             ❑ Check style numbers against Stocklist.
             ❑ Check all 600 style numbers for ring sizes.
             ❑ Double check that all Hostess Summary sections
               have been completed; re-add.
             ❑ Does your payment total equal the total order?
             ❑ Is Customer credit card information
               complete?
             ❑ Have you included all payments and
               certificates?
             ❑ Have you checked for valid expiration dates on
               certificates?
             ❑ Is everything legible?




     For your convenience, we’ve created a handy Checklist for submitting orders.
     Pictured above, this is also available in Printables in the Advisor Advantage.




34   Chapter 3 Placing Orders – Internet and Forms                                    5/06
Customer Selection Ticket




How to fill out a Customer Selection Ticket
 1. Fill in your full name, phone number and        8. Total due after deducting certificates and/or
    six-digit Advisor number.                          jewelry premiums.
 2. Enter Show date.                                9. Total half-price purchases.
 3. Indicate Hostess Name.                         10. Total regular and half-price purchases.
 4. Fill in the Customer number in the             11. Add shipping.
    upper right corner, starting with 02           12. Calculate total sales tax (See Chapter 7).
    (01 is always the Hostess).
                                                   13. Calculate total due.
 5. List separately if more than one of the
                                                   14. Finalize payment due.
    same item is ordered.
                                                   15. Give the Customer copy of the Customer
 6. Total regular price purchases.
                                                       Selection Ticket which has the guarantee and
 7. Total any jewelry premiums redeemed*               exchange form on the back, to the Customer.
    or certificates.
*Note: Jewelry premiums have expiration dates. Premiums with expired dates will not be accepted.

 5/06                                           Chapter 3 Placing Orders – Internet and Forms          35
     Bank card charges
     Customer orders must be paid in full when using a bank card. To make a valid charge, you
     must secure the following information:
       ■   Charge card number
       ■   Name on card
       ■   Expiration date
       ■   Address and zip code
       ■   Cardholder signature



     Hostess Selection & Show Summary –
     Understanding Hostess Bonus Items and
     thank you gifts
     With a Qualified Show* your Hostess is entitled to purchase four items at special Hostess
     Bonus prices ($15 plus tax unless otherwise noted) and a Thank You Gift for booking. These
     need to be ordered using Customer #99. This will allow you to have the items shipped to you
     to present at their Show. You may also place them on the Hostess Summary and Selection
     Ticket if you prefer them to ship to the Hostess. These items count toward sales recognition
     but do not count toward Show sales or Hostess Awards.
     You can order Hostess Bonus Items and Thank You Gifts in two ways:
       ■   If you would like them shipped directly to you for presentation at a future booking use a
           Customer Selection Ticket as Customer #99. Be sure to complete the entire ticket includ-
           ing your Advisor information. Shipping fees must be included. To avoid confusion, Customer
           #99 tickets shipping direct to an Advisor need to be ordered independent of the Show and
           include separate payment. For the detailed procedure on ordering, see Chapter 7.
       ■   If the items are Hostess Bonus Items and are to go directly to the Hostess, order them
           on the Show Summary and Hostess Selection Ticket. They will be shipped with that
           order. No additional shipping fee applies.




     *A Qualified Show is a minimum of $250 in Show Sales


36   Chapter 3 Placing Orders – Internet and Forms                                                5/06
Past Hostess half price item
When a past Hostess attends a Show booked from hers, she is entitled to an additional item
at half price.
Here are a few simple guidelines when ordering past Hostess Half Price items on the
Customer Selection Ticket:
  ■   Must be submitted with the booked Show.
  ■   Indicate selected item in Section II.
  ■   Write “Past Hostess” directly below selection.
  ■   This selection can be in addition to other Customer Save Plan purchases.




 5/06                                           Chapter 3 Placing Orders – Internet and Forms   37
     Show Summary and Hostess Selection Form




38   Chapter 3 Placing Orders – Internet and Forms   5/06
Completing the Show Summary Section
of the Show Summary and Hostess Selection Form.
  ■   Enter all Advisor and Hostess information.
  ■   Enter an “X” in the box provided if this is a Starter Show.
  ■   Enter Ship via by placing an “X” by your choice of UPS or Post Office.*
      UPS will not deliver to a P.O. Box.
  ■   Check either Hostess or Advisor for shipping – your choice. Unless specified,
      the shipment will be sent to the Hostess. If shipping to you, the Advisor, at a different
      address, mark “Hostess” as SHIP TO, and provide the alternate address.
  ■   Enter any special shipping instructions (e.g. if you need 2-day or overnight shipping).
      Premium shipping is at the Advisor’s expense, and is calculated after the order has
      been processed. The Advisor’s account will be charged for the additional shipping charges.
  ■   Enter the total number of orders submitted with the Show including Hostess selections.
  ■   Remember the Hostess is always Customer 01. Do not count Thank You Gifts
      if you place them on a separate Customer 99 Selection Ticket.
  ■   Enter sales tax rate (For calculation, see Chapter 7).
  ■   Enter Show date.
  ■   Enter certificate or jewelry premium information if applicable. When recording certificates
      being redeemed, enter the Customer number, certificate number, type and amount.
  ■   For mailed Shows, staple jewelry premiums/certificates to upper left hand corner of the
      Show Summary and Hostess Selection Form. For Shows placed on the Internet or faxed,
      simply list the jewelry premium/certificates number in the appropriate section.
  ■   Summarize the Show payment information (See payment summary below).
      • Total Cash Deposits: Total all Customer Selection Tickets paid by cash or check and
        Hostess purchases if paid by cash or check. Thank You Gifts ordered as Customer #99
        should be included. One check per order is allowed from an Advisor.
      • Total Amount of Bank Charges: Total all bank card purchases from Customer Selection
        Tickets and the Hostess Selections if paid by bank card. Enter the total number of bank
        charges (including the Hostess) in the box. Enter dollar total in the column.
      • Enter total monies collected.
      • Bookings: Enter Bookings from the Show.
  ■   Distribute forms as noted on copies.




*Unless specified, the shipment will be shipped at the company’s discretion.

 5/06                                             Chapter 3 Placing Orders – Internet and Forms     39
     Completing the Hostess selection section of the Show Summary
     and Hostess Selection Form
     Calculate the Hostess Credit as follows:
       ■   Add all Customers’ regular and half-price purchases and the Hostess’ half-price purchases
           to figure Total Show Sales. Do not include Thank You Gifts ordered as Customer #99. Total
           Show sales must exceed $250 in profitable sales to receive Hostess Credit. If Hostess
           Credit is given above the 20% or 40% calculated by Show sales, then the Advisor will be
           charged a 30% surcharge. Any unused Hostess credit is forfeited.
     List the Hostess’ selections as follows:
       ■   Regular Price Purchases
           • Total regular price purchases made by Hostess
           • Enter amount of certificates and/or jewelry premiums redeemed by Hostess
           • Total Hostess credit given
           • Indicate Hostess credit percentage: 20% or 40%.
             (40% can only be offered with 10-buying Guests and 2-bookings – for a $15 charge).
           • Total, after deducting certificates and/or credits
       ■   Half-price purchases
           • Total half-price purchases. (Hostess is entitled to two items at half-price with profitable
             Show sales of $250 or more).
       ■   Thank You Gift purchases*
           • Total Hostess Bonus Items and Thank You Gift purchases. Your Hostesses are entitled to
             purchase four items at special Hostess Bonus prices ($15 plus tax unless otherwise
             noted) when they have a Qualified Show.
       ■   Hostess purchase payment computation
           • Total regular, half-price and thank you gift purchases.
           • Add shipping
           • Add sales tax (Enter taxable amount and % tax rate for ship-to address).
           • Add $15 charge plus tax if giving 40% Hostess Award Credit. (If no amount is included
             for the 40% credit the Home Office will automatically charge the Advisor).
           • Total due lia sophia.
           • Complete bank card information, if applicable.




     *These items count toward sales recognition but do not count toward Show sales or Hostess Awards.

40   Chapter 3 Placing Orders – Internet and Forms                                                     5/06
Hostess Envelope
The Hostess Envelope is an excellent organizational tool. Within the envelope you can keep all
Show paperwork. It also includes a handy section to summarize important information and is
easy to file when completed.




Guest List
Our Guest List (#7556) includes handy self-adhesive labels with two convenient carbon copies–
one for the Hostess and one for you. Also features space to quickly record RSVP’s too!




 5/06                                        Chapter 3 Placing Orders – Internet and Forms       41
     Prepaid Fax Order Form
                                                                  While entering online through
                                                                  the Advisor Advantage is the
                                                                  fastest way to enter your Shows,
                                                                  fax orders are also welcomed.
                                                                  A copy of the Fax Order Form
                                                                  is available in Printables online
                                                                  in the Advisor Advantage.




     Please complete one form per Show according to the following guidelines:

       ■   Fax orders are processed on a first-in/         • Hostess name
           first-out basis as received.                    • Total amount of bank card purchases
       ■   Fax Order No: 630-860-0652                      • Type of order
       ■   Fax your order in the following sequence:         (show, sample, supply, etc.)
           • First: Fax Summary Form                       • Your name and number where you can
           • Second: Hostess/Customer purchase               be reached if your fax is not received.
             information                               ■   Keep in mind:
           • Third: Additional bank card information       • Confirmation from your fax machine
       ■   Immediately after faxing your order,              does not confirm delivery to lia sophia.
           confirm on our Fax confirmation line,           • Once your order has been received,
           1-800-726-3324 ext. 1031 and leave all            absolutely no changes can be made.
           information requested:                          • No call will be made to you if your fax
           • Advisor number                                  has been received.




42   Chapter 3 Placing Orders – Internet and Forms                                                 5/06
Direct Sales Order Form
                                                                 The Direct Sales Order Form is
                                                                 available in Printables online in
                                                                 the Advisor Advantage.




■   Use to service individual Customer orders between Shows.
■   Customer Save Plan may be applied to these purchases.
■   Profit, override and sales credit apply to these orders. No Hostess Credit applies.




5/06                                          Chapter 3 Placing Orders – Internet and Forms          43
     Supply Order Form
                                                                   The Supply Order Form is
                                                                   available in Printables online
                                                                   in the Advisor Advantage.




       ■   Use to order supply items from the current supplies available.
           Updated supply numbers are also available on the website.
       ■   All supply and business builders are prepackaged in various quantities.
       ■   To order more than one set of the same item, write the number of sets you
           want in the quantity column.
       ■   Business builders do not carry the lia sophia Lifetime Replacement Guarantee.
       ■   Supply items cannot be exchanged.
       ■   Supply orders must include payment.




44   Chapter 3 Placing Orders – Internet and Forms                                                  5/06
Sample Order Form
                                                                  The Sample Order Form is
                                                                  available in Printables online
                                                                  in the Advisor Advantage.




■   Use to order additional jewelry pieces to build your sample kit.
■   Advisors must be of active status to purchase samples.
■   Orders will be shipped by the most economical courier.
■   Sample orders must include payment.
■   Include shipping fee.
    (Certificates cannot be used toward shipping
    except when a 001 certificate is used).
■   When ordering Hostess Bonus Items, make them the only item on the form.
    DO NOT mix with regular sample items.




5/06                                          Chapter 3 Placing Orders – Internet and Forms        45
     Entering Orders Online through the
     Advisor Advantage
     The internet superhighway is waiting for you in lia sophia’s Advisor Advantage.
     Available 24/7, this state-of-the-art site allows you to enter orders, update your personal
     website, read the latest news and much more!
     There isn’t a simpler, easier or FASTER way to submit your orders and Shows to the
     Home Office. Give it a try and you’ll quickly discover why it’s to YOUR ADVANTAGE
     to enter your Shows online. Complete order entry details are available online.




46   Introduction Welcome to Lia Sophia                                                            5/06
                                              Chapter Three: Quick Quiz

1. There are three convenient ways to place             5. Hostess Bonus Items and thank you gifts
orders _____.                                           can be shipped to ____ or ____.
   a. Mail, fax, Internet                                   a. You or the Customer
   b. Mail, in person, Internet                             b. The Hostess or Customer
   c. Mail, fax, in person                                  c. You or the Hostess
   d. None of the above                                     d. None of the above


2. Each Customer order will need to be placed           6. When a past Hostess attends a Show
on a _____.                                             booked from hers, she is entitled to _____.
   a. Wishlist                                              a. An additional half-price item
   b. Customer Selection Ticket                             b. More FREE jewelry
   c. Hostess Selection Form                                c. A percentage off her purchase
   d. Show Summary Form                                     d. Book again


3. When submitting an order, check all _____            7. We recommend keeping all Show
style numbers for ring sizes.                           paperwork organized in a
   a. 400                                                   a. Hostess folder
   b. 500                                                   b. Hostess file
   c. 600                                                   c. Hostess envelope
   d. 700                                                   d. None of the above


4. Bank cards that lia sophia accepts are               8. To place orders for Customers between
_____.                                                  Shows, use a _____.
   a. Visa, Mastercard, Discover                            a. Direct Sales Order Form
   b. Visa, Mastercard, American Express                    b. Prepaid Fax Order Form
   c. Visa, Discover, American Express                      c. Supply Order Form
   d. None of the above                                     d. Sample Order Form




                      Answers available online in Printables in the Advisor Advantage.
    5/06
48   5/06
                 Chapter Four:                           Compensation and Recruiting



Overview
You have certainly joined the right company at the right time! lia sophia is offering women
around the country the opportunity to make their dreams come true, personally and
professionally. Whether you need an extra $100 or an extra $1000 or more each month,
THIS is the company for you! Our dynamic compensation plan is incredible and when you
recruit JUST THREE, you will begin receiving fantastic overrides and bonuses. Dream BIG
because this is the place to make wishes come true!
The rewards of your lia sophia business:
  ■   Weekly profit checks – 30% profit on regular and half-price sales.
  ■   Excellent Beginnings – Get off to a great start using our Excellent Beginnings Program.
      See page 10.
  ■   Quarterly Recruiting Program – Complete details are available online in Printables.
  ■   Yearly Cash Bonus – For personal sales and personal recruiting as defined
      in the current year’s Conference Recognition Brochure.
  ■   Sample Discounts – You may purchase up to 24 additional product samples
      for your kit at a 77% discount during your first five weeks in business.
  ■   Incentive Travel Trips – You have the opportunity to earn vacations to exciting
      destinations all over the world.




 5/06                                                 Chapter 4: Compensation and Recruiting    49
     Understanding your profit check
     Each profit check is attached to an earning statement similar to that shown above.
     Copies are mailed weekly and also available online in your Advisor Advantage.

     Section 1 – Earnings (Profit/Refund/Override/Bonus)
     for period ending —/—/—
       ■   The week-ending date for all transactions and earnings pertaining to this check.
       ■   Indicates profit earned by Hostess name and shipment number.
       ■   Indicates REFUND by Customer/Hostess name and shipment number.

     Section 2 – Deductions/Additions To Earnings for Current Period
       ■   Indicates any monies owed to you or to lia sophia
       ■   Profit check deductions may occur for the following reasons:
           • Payment shortages
           • State sales tax miscalculated
           • Shipping charges omitted
           • Shows returned and cancelled
           • Redemption of Customer $5 Jewelry Premiums
           • No ring size certificates
           • Excess Hostess Award amounts
           • Customer refunds

     Section 3 – Summary
       ■   Month-to-date and Year-to-date information




50   Chapter 4: Compensation and Recruiting                                                   5/06
Moving up!
Want to give yourself a raise?! You can. Personal sales and recruiting accomplishments will
help you achieve the first level of leadership – Unit Manager. As a Unit Manager, you’ll receive:
  ■   30% each week on your personal sales*
  ■   PLUS 10% override each week on personal Unit
      (includes your personal sales)*
  ■   PLUS 5% override each week on personal promoted Units*
  ■   PLUS monthly bonuses as outlined in the Leadership Manual
Complete details on all levels of lia sophia management are available online in Printables
in the Advisor Advantage.



Building your team through recruiting
You’ve just read about the financial benefits of adding to your team. Sharing the opportunity
can bring so much more. Changing lives, opening doors, giving others the chance to realize
their full potential, together with lia sophia, YOU have so much to offer.




        *Based on profitable sales


 5/06                                                 Chapter 4: Compensation and Recruiting        51
     Recruiting –
     Getting a New Advisor Started...
     Completing the Advisor’s Agreement (#7588) is the beginning of the New Advisor’s
     relationship with the company. It is also a legally binding arrangement between lia sophia
     and that individual. It is extremely important that the Agreement is filled out completely.
     Agreements may be submitted in three ways:
       ■   online through an Advisor’s personal website
       ■   mail
       ■   fax
           (For your convenience, a PDF of the Agreement is also available to be printed from
           Printables online in the Advisor Advantage).
     Please note: ALL AGREEMENTS (mail, fax and online) will be processed including:
       ■   Appropriate sales tax (based on the ship-to destination) on the Starter Kit price.
       ■   Shipping charge (plus tax where applicable)
     Profit may not be applied to Starter Kits from the Starter Show. EVERY Agreement submitted
     MUST include payment IN FULL.
                                                       Submitting Agreements online is an
                                                       ADDITIONAL benefit available to lia sophia
                                                       Personal Website Subscribers only. New
                                                       Advisors need simply click on the “Join Us!“
                                                       button under the “our opportunity” tab and
                                                       follow the quick and easy, step-by-step
                                                       instructions.
                                                       To take advantage of this secure, online
                                                       feature, the New Advisor will need to have the
                                                       following information BEFORE they begin:
                                                          ■   Social security number
                                                          ■   Email address
                                                          ■   Checking account information
                                                              (for profit check direct deposit which
                                                              is a requirement for using the Online
                                                              Application feature)
                                                          ■   Credit card
                                         Agreement            (Note: The RECRUITER can pay for the
                                                              Starter Kit with their own credit card).




52   Chapter 4: Compensation and Recruiting                                                              5/06
As the Online Application establishes an Agreement between lia sophia and the New Advisor,
the New Advisor must review the Agreement terms and conditions and check a box to
acknowledge that they accept. The Agreement WILL NOT be processed WITHOUT this. There
is no reason to send the original Application to the Home Office. Copies submitted via fax or
mail will continue to require the New Advisor’s signature.
Regardless of method, once the completed application is submitted, the New Advisor will
receive an email that provides them with a temporary Advisor Number and password to the
Advisor Advantage. This will allow them to access the many features available there – including
the ability to enter their Starter Show online! In addition, a copy of this email will go to the
Recruiter and the Upline Manager.
Any information submitted on the Agreement CANNOT be changed at a later date by verbal
request. This is a LEGAL document between the New Advisor and lia sophia and cannot be
altered or modified without the written approval of the New Advisor, the Recruiter and the
Starter Show holder on record.
Keep in mind, they will not be able to create their personal lia sophia website or place
ANY OTHER orders until their Starter Show has been received.
Additionally, when entering a Starter Show online, it is important to note that the person who
is to recieve profit must log in with their Advisor number. Temporary Advisor ID should be listed
first. Starter Shows MUST BE submitted within 30 days of submitting an Agreement or it will be
voided and reapplication required. Starter Shows can always be entered online, regardless of
how the Application was submitted.



What lia sophia has to offer
As a lia sophia Advisor, you probably have a good knowledge of the many benefits available
to you. When someone asks you to share more about the opportunity, we recommend
highlighting a few of your favorite things and giving them a copy of our Opportunity Brochure.
Your natural enthusiasm for the business has probably caught their attention. This is a great
time for you to gather their personal information. Then, ask if your Manager can give them
a follow-up phone call or better still, set up a meeting. In either case, YOU should be involved.
This is a terrific way to learn!




 5/06                                                Chapter 4: Compensation and Recruiting         53
     Places to recruit
     Where will you find New Advisors? Anywhere! In line at the grocery store, picking up your child
     from day care, singing in the Church choir to name just a few. But the single BEST and MOST
     successful place to recruit is AT your Shows. And, time and again, we’ve seen that the
     NUMBER ONE candidate to recruit is your Hostess.



     Do you know WHY people join
     direct selling companies?
       ■   Want to stay home with their children
       ■   Want flexible hours
       ■   Desire to be their own boss
       ■   Want to work less and earn more
       ■   Love of product
       ■   Socialization – wanting to get out of the house
       ■   Income needs
       ■   Enjoy the other lia sophia Advisors
       ■   Want to change their lives
       ■   Ready for fun
       ■   Travel
       ■   Looking for something new and different
       ■   Desire for recognition
       ■   Interest in earning FREE prizes
       ■   Self improvement



     Why did YOU join lia sophia?
     Whatever YOUR personal reasons, chances are someone has joined the company for EVERY
     ONE of those reasons listed. Never presume when talking with a Potential New Advisor that
     you KNOW WHY they want to join the company. Every person is unique. This is when your
     listening skills will be key.




54   Chapter 4: Compensation and Recruiting                                                      5/06
Ways to share the opportunity –
AT your Shows
■   Talk about exactly WHY you joined the business
■   Talk about the benefits you’re enjoying with your lia sophia business
    • Income
    • Flexible hours
    • Free products
    • Tax savings
    • A reason to get out of the house
    • And more!
■   Ask who would be great at doing what you do?
    • This is a great question to ask during your presentation.
■   Listen to conversations.
    • Who’s just lost their job?
    • Who would love to buy everything but is short on cash?
    • Who has small children at home?
    • Who has management experience?
■   Bring lia sophia Advantage Packets to every Show. These include:
    • An opportunity brochure
    • A catalog
    • An Application and Agreement
    • Your business card with a personal note
■   Create a lia sophia “brag” book. Include photos, copies of checks, awards, etc.
    Pass this around at Shows. This is a great way to subtley show the difference the
    business has made in your life.




5/06                                                 Chapter 4: Compensation and Recruiting   55
     Ways to share the opportunity –
     OUTSIDE your Shows
       ■   Wear our jewelry.
       ■   Carry the lia sophia Advantage Packets with you.
       ■   Wear LogoLine clothing.
       ■   Talk about what you do when you’re not at Shows.
       ■   Let your natural enthusiasm and excitement intrigue others.
       ■   Answer questions but don’t over-inform those asking.



     Taking “No” for an answer
     More often than not, when you offer the opportunity, you’ll hear a “no!” The most critical thing
     to remember is that the individual is not saying “no” to you personally – they are merely saying
     “no” to the offer. It’s really no different than saying “no” to a waitress who offers you dessert or
     a salesperson who asks if you need help in finding something.
     The important thing to remember is WHY they’re saying no.
       ■   Is it the wrong time?
       ■   Is it the wrong company?
       ■   Is it a financial reason?
       ■   Is it concerns about child care at night?
     Understanding their reasons will help you determine your next step.




56   Chapter 4: Compensation and Recruiting                                                           5/06
Overcoming recruiting objections
When trying to overcome recruiting objections, it is often helpful to use a variation of the feel,
felt, found method. Review the examples below and then try a few of your own.
Objection: “I could never do what you do.”
Response: “I know exactly how you feel. I felt that way too. I would never speak in front
of a group until I started this. Now it’s one of my favorite things to do. This business has made
a huge difference in my life.”
Objection: “I don’t have the money to start.”
Response: “I understand how you feel. When I started I didn’t feel like I could afford it either.
But, with my Manager’s help, I was able to get my kit and the rest is history. It was the best
decision I ever made.”
Objection: “I’m too busy.”
Response: “I know how you feel. I used to work overtime constantly just to make ends meet.
I realized that busy people are the most organized. Today, I’m still working – earning full-time
pay with part-time hours. Thank you lia sophia.”
Objection: “I wouldn’t know where to begin.”
Response: “I know how you feel. Don’t worry. lia sophia offers comprehensive training and
I’ll be there along with my Manager to help you every step of the way.”
Objection: “I’ve had friends who tried home parties and they were never successful.”
Response: “I know how you feel. I’ve found that almost everyone knows people who have lost
money trying to start a home-based business. lia sophia offers a one-year unconditional
money back guarantee on your Starter Kit purchase (see Advisor’s Agreement for details).
There’s nothing to lose except a small restocking fee.”
Again, work with your Manager until you are comfortable answering potential New Advisor’s
questions and overcoming their objections.



Where would you be if no one asked you?
Finally, think for a moment about the difference lia sophia is making in your life. Think where
you would be today if NO ONE had shared the opportunity with you. With that answer in mind,
ask yourself, “how can I not recruit?” You have the tools. You have a fantastic business to offer
others. You have incredible rewards to reap. It’s time to dream some dreams and change some
lives – starting with your own!




 5/06                                                  Chapter 4: Compensation and Recruiting        57
                                               Chapter Four: Quick Quiz

1. You receive _____ profit on all regular            5. When sharing the opportunity at your
   and half-price sales.                                 Shows, be sure to ___.
   a. 10%                                                 a. Talk about WHY you joined the business
   b. 20%                                                 b. Highlight the benefits you’re enjoying
   c. 30%                                                 c. Listen to conversations
   d. 40%                                                 d. All of the above


2. You receive a _____ sample discount.               6. An Advantage Packet includes:
   a. 44%                                                 a. An Opportunity Brochure and Agreement
   b. 55%                                                    and Application

   c. 66%                                                 b. A catalog

   d. 70%                                                 c. Your personal card and/or a personal note
                                                          d. All of the above
3. Profit checks are paid _____.
   a. Daily                                           7. When sharing the opportunity OUTSIDE
                                                         your Shows, be sure to _____.
   b. Weekly
                                                          a. Wear the jewelry
   c. Monthly
                                                          b. Carry Advantage Packets with you
   d. Annually
                                                          c. Talk about your business

4. The best place to recruit is _____.                    d. All of the above

   a. Your home
                                                      8. The first level in lia sophia management
   b. Your Show
                                                         is _____.
   c. Your Church
                                                          a. Unit Manager
   d. Your grocery store
                                                          b. Division Manager
                                                          c. Region Manager
                                                          d. Zone Manager




                    Answers available online in Printables in the Advisor Advantage.
                                                                                                      5/06
Chapter Five:                          Communication, Recognition & Awards



Overview
At lia sophia, we succeed when you do. And, there’s nothing we enjoy more than sharing
and celebrating your success. This chapter will highlight ALL the fantastic opportunities you
have for recognition and awards as well as the terrific communication tools we have created
to keep you informed.
In this chapter, we’ll review:
  ■   Home Office communication
      • Facets
      • GEMS
      • The Loop
  ■   The World Wide Web
      • www.liasophia.com
      • Personal websites
      • Advisor Advantage
  ■   Awards and Recognition




 5/06                                  Chapter 5: Communication, Recognition and Rewards        59
     Home Office Communication
     Facets
     Active Advisors receive our monthly newsletter, Facets. It contains important news stories,
     insights from Home Office Executives, monthly award winners, New Advisors, bulletin board
     updates and more.

     GEMS
     The monthly Facets mailing also includes a copy of the following month’s promotions.
     (Managers also receive this in The Loop). In addition to reviewing the Hostess Program, each
     GEMS highlights the upcoming Customer, Hostess and New Advisor specials for the month.
     Perfect to hand out to prospective Hostesses as well as Show Guests, these are also available
     for purchase on your Monthly Supply Order and/or at your Monthly Meetings (when offered).

     The Loop
     Managers will enjoy additional training each month through The Loop, an e-newsletter created
     exclusively for them. It includes terrific articles, helpful hints, a timely message from leaders at
     the Home Office and more!




                                                    Facets



                           Gems

                                                                                                     Loop



60   Chapter 5: Communication, Recognition and Rewards                                                5/06
Advisor Advantage
The lia sophia opportunity allows many exciting and creative ways to support you as you build
and grow your new business. One of the most innovative and up-to-the-minute tools available
to you is the Advisor Advantage. This has been created exclusively for lia sophia Advisors and
Managers. To visit, all you have to do is log on. It’s free and simple to do.
Once there, you have access to incredible features including:
•      News stories, ideas, interviews, product features and more… available 24/7
•      lia sophia University, a completely searchable version of the training guide
•      A personal website manager that walks you through everything from starting
       up to day-to-day site maintenance.
•      Your Show Assistant… a booking calendar and project planner that will help you
       successfully maximize every Show scheduled.
•      Monthly and annual award winners.
•      Stock availability updates.
•      Online Show entry, order tracking and more!
•      Printables… Adobe Acrobat versions of some of our most-used flyers,
       business tools and forms.
Advisor Advantage couldn’t be better named. But don’t just take our word for it,
go out and explore!




    5/06                                  Chapter 5: Communication, Recognition and Rewards      61
     www.liasophia.com
     Our dynamic corporate website gives Customers the opportunity to learn more about our
     company, our business plan, our products, our Hostess Program and more. Additionally,
     by entering their zip code, Potential New Advisors and Hostesses can quickly locate the
     Advisor or Manager closest to them geographically.




62   Chapter 5: Communication, Recognition and Rewards                                         5/06
Personal Websites
Creating a personal lia sophia website is optional. However for only $9.95 (with a six-month
purchase plan) or $12.95 (with a three-month purchase plan) a month, you’ll soon discover that
this will become one of the greatest business investments you can make. Completely
customizable, you’ll have the ability to detail your
  ■   Personal features – including why you joined lia sophia
  ■   Personal events – open houses, opportunity meetings, etc.
  ■   Personal photos – business and family
Plus, your site will also feature terrific Hostess and opportunity presentations created by the
Home Office. And that’s not all! Show Guests unable to attend will have the opportunity to visit
your personal website and submit orders giving the Hostess who invited them FULL CREDIT!
What a fantastic way for your Hostess to build sales and you to increase your profit! Less than
$50 in outside Show orders monthly can completely cover your cost!
Note: you must be an active Advisor to maintain a personal website.




 5/06                                   Chapter 5: Communication, Recognition and Rewards          63
     Recognition
     The celebration of achievement. The recognition of success. The appreciation of extraordinary
     effort. All this and more is honored, acknowledged and shared with the entire lia sophia Family
     through our monthly, quarterly and annual awards.
     With one of the most comprehensive programs in the industry, lia sophia is proud to offer
     cash bonuses, fantastic trips, dazzling jewelry, designer apparel and much more as rewards
     for all levels of accomplishment.
     Achievements are recognized in three ways – through our printed publications, on our
     website at www.liasophia.com, and onstage at our Annual Conference. From the day you
     begin, you’ll feel the warmth, sincerity and genuine sense of pride that we share TOGETHER
     in the lia sophia Family.

     Weekly Awards
     Parade of Stars is a weekly feature online at the Advisor Advantage recognizing New
     Advisors, Excellent Beginnings Achiever and top personal sales of Advisors and Managers
     in the previous week.

     Monthly Awards
     Facets, our monthly newsletter, recognizes Top Achievers for personal recruiting and sales,
     group recruiting and sales for Units, Divisions, Regions and Zones as well as standings for
     National Conference. This information is also featured online in the Advisor Advantage.




                                 Top Achievers



64   Chapter 5: Communication, Recognition and Rewards                                             5/06
Quarterly Recruiting Awards
Receive an award for each of your Qualified New Advisors each fiscal quarter* as follows
(after Excellent Beginnings):
  ■   Each Qualified New Advisor in a quarter* earns a $100 Jewelry Premium (no limit).
Then, with THREE Qualified New Advisors in a quarter* with total combined sales of $7,500
or more, you can choose one of the following:**
  ■   $750 Jewelry Certificate
  ■   $100 American Express Branded Reward Card
  ■   Designer Outfit
  ■   Success Pak – Over $130 in essential business supplies: includes six packages of
      Customer Selection Tickets, eight packages of invitations and 10 packages of catalogs!
  ■   lia sophia Leather Bag – 2005-2006 edition of our exclusive lia sophia genuine black
      leather carry all bag with debossed logo, comfort strap with matching luggage tag.
      22"L x 11"H x 13"D.
Those choosing the lia sophia jewelry premium, American Express Branded Reward Card,
SuccessPak or leather bag will have their prizes shipped DIRECTLY to them within 30 days of
the deadline listed on the redemption form. All Quarterly Recruiting Program winners are
published online in the Advisor Advantage.
Note: Awards are subject to change. Please review the current brochure in Printables online in
the Advisor Advantage.




*Fiscal Quarters are June-August, September-November, December-February, March-May
**A maximum of ONE Quarterly Recruiting Award per quarter.


 5/06                                   Chapter 5: Communication, Recognition and Rewards        65
     Recognition Programs
     Review these charts for complete details on the current recognition programs.
     Awards Year – June 2006-May 2007

     Personal Acheivements
     personal recruiting
                            QUALIFICATIONS                       AWARD
                      Qualified     Amount
                        New         in New
                      Advisors      Advisor
     Advisors                        Sales

         Ruby           9    with $ 40,000       $500 jewelry premium
         Emerald       12 with $ 60,000          $500 jewelry premium + $500 cash
         Diamond       15 with $ 80,000          $750 jewelry premium + $750 cash


     Managers
         Ruby          12 with $ 60,000          $500 jewelry premium
         Emerald       16 with $ 90,000          $500 jewelry premium + $500 cash
         Diamond       20 with $120,000          $750 jewelry premium + $750 cash


     personal sales
                            QUALIFICATIONS                       AWARD
                        Amount in Sales
     Advisors
         Ruby          $ 60,000 – 79,999         $750 jewelry premium
         Emerald       $ 80,000 – 99,999         $750 jewelry premium + $750 cash
         Diamond             $100,000 +          $1000 jewelry premium + $1000 cash


     Managers
         Ruby          $ 75,000 – 99,999         $750 jewelry premium
         Emerald      $100,000 – 124,999         $750 jewelry premium + $750 cash
         Diamond             $125,000 +          $1000 jewelry premium + $1000 cash

     Diamond levels will be recognized at the awards ceremony at Conference.

66   Chapter 5: Communication, Recognition and Rewards                                5/06
Group Acheivements
  group recruiting
                 QUALIFICATIONS                            AWARD
                  Qualified New
                    Recruits                All Winners                Top Achievers*

    Units         Minimum 30         $1000 jewelry premium           Top 15 + $1000 cash

    Divisions     Minimum 60         $1500 jewelry premium           Top 10 + $1000 cash

    Regions       Minimum 125        $2000 jewelry premium           Top 5 + $1250 cash

    Zones         Minimum 200        $2500 jewelry premium           Top 3 + $1500 cash




  group sales
                 QUALIFICATIONS                            AWARD
                Amount in Sales
                  (Minimum)                 All Winners                Top Achievers*

    Units            $500,000        $1000 jewelry premium           Top 15 + $1000 cash

    Divisions      $1,000,000        $1500 jewelry premium           Top 10 + $1000 cash

    Regions        $2,000,000        $2000 jewelry premium           Top 5 + $1250 cash

    Zones          $5,000,000        $2500 jewelry premium           Top 3 + $1500 cash




Top Achievers will be recognized at awards ceremony at Conference.


 5/06                                 Chapter 5: Communication, Recognition and Rewards    67
     Additional Recognition
     advisors & managers
     Consistency Award – Advisors and Managers are recognized for
                               consistent Shows held.
                       QUALIFICATIONS                                AWARD
      A minimum of one qualifying Show received per week    $1,000 jewelry premium
      for 45 weeks out of 50 fiscal weeks.



     Hall of Fame Award –       (personal and group)
                       QUALIFICATIONS                                AWARD
      Establish a new monthly or annual record in                       plaque
      recruiting and/or sales.


     lia sophia Award
                       QUALIFICATIONS                                 AWARD
      $75,000 or more personal recognition sales AND        lia sophia ring
      $125,000 or more in personal New Advisor sales.       (first time only)


     managers Managers only whose start date is May 2004 or earlier
     Advisory Board – Four member board that assists with fashion direction.
                      QUALIFICATIONS                                  AWARD
     • Top Manager in personal sales (#1 default)             Featured in catalog
     • Top Zone in personal sales combined with               with photo and
       a minimum of $20,000 personal New Advisor sales.       namesake item

     • Top Region in personal sales combined with
       a minimum of $25,000 personal New Advisor sales.
     • Top Division in personal sales combined with a
       minimum of $30,000 in personal New Advisor sales.


     zone managers
     Victor Kiam Award – Most Improved at the Zone Level.
                       QUALIFICATIONS                                   AWARD
     Combination of group sales AND New Advisor sales          Victor Kiam Award
     (New Advisor sales count TWICE!) with the highest %
     increase over the prior year.
     The acheivements above will be recognized throughout Conference weekend.

68   Chapter 5: Communication, Recognition and Rewards                               5/06
Terms
Start Date               The official start date is the week ending date AFTER the Advisor’s
                         first Show is received at the Home Office.

Qualified New Advisor    A New Advisor who has achieved $1,500 in personal recognition
                         sales with a minimum of 3 qualified Shows in their first five weeks
                         (including their Starter Show).

Qualified Show           A minimum of $250 in profitable sales.

Fiscal year              Begins June, ends May. Refer to fiscal dates calendar.

Personal “recognition”   Regular and half-price sales, Hostess items and thank you gifts.
sales

Ties                     Recruiting and/or group sales categories are broken by
                         New Advisor Sales.

Status Levels            For Conference recognition, annual cash bonuses, and all special
                         benefits related to Conference status levels will automatically compete
                         at the level effective as of the start of the fiscal year.

Matching                 Applied for all Star Managers for Group Recognition.




 5/06                             Chapter 5: Communication, Recognition and Rewards                69
                                                  Chapter Five: Quick Quiz

1. The monthly newsletter for Advisors is              5. At lia sophia, you have the opportunity to
   called ___.                                            earn awards
    a. Facets                                              a. Monthly
    b. The Loop                                            b. Quarterly
    c. GEMS                                                c. Annually
    d. None of the above                                   d. All of the above


2. Three different websites you can access as          6. Some annual awards are presented each
   a lia sophia Advisor are                               year at _____.
    a. The corporate website, your                         a. Conference
       personal website, the Advisor Advantage             b. Rally
    b. Your personal website, the Advisor                  c. Your home
       Advantage, a jewelry website
                                                           d. Your Monthly Meeting
    c. The corporate website, the Advisor
       Advantage, a jewelry website
                                                       7. The lia sophia fiscal year runs
    d. None of the above                                  from _____ to _____.
                                                           a. January to December
3. The full-color promotional piece that’s
                                                           b. June to May
   included in the Facets mailing is called
   _____.                                                  c. May to April
    a. The Loop                                            d. December to January
    b. GEMS
                                                       8. Fiscal quarters begin in _____, _____, _____
    c. Jewelry
                                                          and _____.
    d. Facets
                                                           a. June, September, December
                                                              and March
4. If you wanted to look something up
                                                           b. February, May, August and November
   in lia sophia university, you would visit
   _____.                                                  c. April, July, October and January
    a. The corporate website                               d. Monthly
    b. Your personal website
    c. Advisor Advantage
    d. None of the above




                     Answers available online in Printables in the Advisor Advantage.
                                                                                                 5/06
                                           Chapter Six:                          Jewelry Education



Overview
At lia sophia, you’re offering your Hostesses and Customers something extraordinary – the
chance to bring affordable luxuries into their lives. Our jewelry is the finest quality and of course,
each piece in our catalog offers a Lifetime Replacement Guarantee. Worried that you don’t
know the distinction between a lobster claw or a fold-over clasp? You’ve come to the right
place. When you’ve completed this chapter, you’ll understand:
  ■   How our jewelry is made
  ■   Important product terms and definitions
  ■   Product care hints
  ■   Quick tips for easy repairs
  ■   Answers to the most frequently asked product questions (FAQs)




 5/06                                                               Chapter 6: Jewelry Education         71
     How Our Jewelry is Made
     There are many steps that go into the making of lia sophia jewelry. Each piece is carefully
     hand-crafted by trained artisans. Knowing the dynamics of how the products are made will
     help you in understanding and explaining the details to your Customers.
     Turning raw material into finished product is divided into two categories – primary and
     secondary manufacturing. The following is a flow of the steps involved.



     Primary Manufacturing
     This process involves two major categories of manufacturing, Stamping/Striking and Casting.
     These produce two very different types of jewelry.




72   Chapter 6: Jewelry Education                                                                  5/06
Stamping/Striking
This process produces quantities of identical pieces of work by striking the raw material –
in dies – on power driven presses, in smaller shops, with foot-operated die presses.
Stamped pieces are lightweight. They wear comfortably and lend themselves to the highest
degree of polishing. The application makes the largest necklaces, bracelets and earrings both
comfortable and affordable.
Each “strike” shapes the piece closer to its final look. Between each strike, the pieces must
be heated (called “Annealing”). This enables a higher degree of detailing.
Rings are made by forming, stamping and cutting to size. They are then ready to become
sized rings through soldering. A wafer-like piece of solder is positioned at the bottom of the
shank and then moved along with heat, melting the solder.
In the final stages, rings are rounded, shaped and sized. (This is called “Arboring”).
Each ring is then checked for size accuracy.




 5/06                                                             Chapter 6: Jewelry Education   73
     Casting
     There are two types: White Metal and Lost Wax

     White Metal Casting
     When creating a mold for use with white metal, a master model is first created in which a
     rubber mold is formed for production models to be duplicated.




     Lost Wax Casting
     Another method is called “lost wax” or “investment” casting. The first step is to create a wax
     piece. Each rubber mold was created through the use of a master and then a production
     model. These are created by size and item. After enough pieces are wax molded, they are
     “treed” onto a wax stalk. Then a metal flask is placed over the wax trees. A plaster mixture
     called an “Investment” is then mixed and poured over the wax trees. The filled flasks are then
     baked at extremely high temperatures, hardening the plaster and turning the wax into vapor.
     After the wax is “lost”, what’s left is a cavity of the original tree. This forms the mold in which
     the jewelry is created.




74   Chapter 6: Jewelry Education                                                                     5/06
Once the mold is cast, manufacturers are ready to make the jewelry. The mold is locked into
place in a centrifugal casting machine. Molten “White Metal” is then poured into the mold and
spun. When removed, we have raw items. Each mold or “flask” is filled with molten brass.
The flasks are then spun in the centrifugal casting machine, forcing the brass into the open
cavity. After cooling, the “Investment” is removed and a brass tree of dozens of identical items
is revealed.
The pieces are then removed from the tree, and the parting line is removed. At this point
Primary Manufacturing is completed. The secondary or finishing process remains.




 5/06                                                            Chapter 6: Jewelry Education      75
     Secondary Manufacturing (Finishing)
     This stage involves finishing the surface in preparation for plating.

     Vibratory
     The pieces are tumbled in a machine for hours being smoothed and finished. When done
     spinning, the mold is opened and the raw items removed. Each piece is then cleaned at the
     point where it was connected within the mold. Polishing is the final Metal Preparation. With
     a series of buffing wheels, the metal is brought to a mirror-like finish.
     Stones are either set (in prongs) or glued. For set stones – the item is held while the stone
     is positioned, and the prongs are individually closed tightly over the stone

     Electroplating
     All of our gold jewelry is 14-22K electroplated and our silver jewelry is “rhodium” electroplated.
     Manual plating is very precise and requires each item to first be wired to a rack which is then
     placed into the plating solution. The rack of jewelry first goes into a cleaning solution, then in
     a nickel solution, a plating color solution, and finally, a cleaning solution again.
     Plating color is measured in millionths (mils) of an inch. We pride ourselves in plating more mils
     of gold and rhodium than most fashion jewelry retailers.
     Jewelry stays in the plating color solution for a period of time depending on the “mils”
     (millionths of an inch) of plating designated.




76   Chapter 6: Jewelry Education                                                                    5/06
Our jewelry is plated as follows:


    Product                                                Mils Gold           Mils Rhodium

    Necklaces in lengths of 16", 18" and 20"                 10 mils               2 mils

    Necklaces in lengths of 22", 24" and 30"                  7 mils               2 mils

    Bracelets                                               8-10 mils              2 mils

    Earrings and pins                                         7 mils               2 mils

    Women’s rings                                            80 mils               2 mils




Each Vendor checks the plating thickness via random sample testing to assure accurate mils of
thickness. A two-tone item, in essence, is plated twice; first with the secondary color, followed
with a “stop off” chemical (which is painted on by hand) to protect the secondary color while
the main color is added.
Stones are glued in after plating. Many tiny side stones, as well as some center stones, are
glued one stone at a time. This is very labor intensive, especially given some of our elaborate
stone designs.




 5/06                                                            Chapter 6: Jewelry Education       77
     There’s a lot of “life” in our jewelry!
     It’s not often a company offers a LIFETIME Replacement Guarantee. At lia sophia, in
     EVERYTHING we do, we put quality first. It’s important for you to understand the stringent
     standards that we apply to EACH AND EVERY piece of jewelry – from the time it’s selected
     until it ships to you or your Hostess.

     Product Development
     As you know, each piece is made BY HAND by skilled artisans from all over the world. You
     might even say that every piece is a work of “heart” – the culmination of the work of many –
     from the artist who draws the first sketch to the craftsman who carves the mold to the
     individual who does the plating to the one who meticulously glues on each stone. And truth be
     told, different pieces have different levels of complexity. For example, a piece like Lady Bug is
     colored by hand! And did you realize that EVERY crystal in Caché is actually cut by hand?
     With this level of detail and human involvement, occasionally, a clasp may break or a stone
     become loose. Truth be told, external elements can also create damage. Everything from hand
     creams to hairsprays and soap to smoke can affect the jewelry. And while this can occur with
     ANY piece of fine jewelry purchased from ANYWHERE, we know that lia sophia stands well
     above the competition with our exceptional Lifetime Replacement Guarantee.
     With product development complete, let’s take a look at what happens when an item is chosen
     for inclusion in the catalog.

     Jewelry Selection
     Each year, when catalog selections are finalized, an ORIGINAL (benchmark) sample is logged
     and filed in the Quality Control area.

     Incoming shipments—Initial Review
     When a shipment of jewelry is received AUTOMATICALLY 10% is sent to Quality Control for
     inspection. For example, we order 1000 Caché necklaces. Upon arrival, 100 are brought to QC
     for a detailed review.
       ■   The benchmark piece is pulled to compare the shipment against.
       ■   Gold and rhodium-plated necklaces are brought to x-ray to confirm that each has received
           the appropriate coating in mils.
       ■   Clasps are checked.
       ■   Length is verified.
       ■   Ring size is confirmed.
       ■   Stone quality is reviewed.
       ■   Rejected pieces are pulled and issues are noted
           on the log that is included with each benchmark piece.




78   Chapter 6: Jewelry Education                                                                  5/06
Packing
Once the initial 10% inspecion is passed, shipments are turned over to the packers.
  ■   Each packer is responsible for checking EVERY product received.
  ■   After review, the packer places the jewelry in its appropriate box
      or pouch and tickets it with their personal inspection number.
  ■   Please note: should issues arise with jewelry you receive, it is critical
      for you to share the individual packer’s ID numbers whenever possible.
This impressive level of detail and dedicated work of our Quality Control Team is just one
of the ways your Home Office is completely committed to your success. While occasionally
you may feel like you’re “hearing” a bit more about damages, please rest assured that when
we ship more, you will probably encounter more issues. However, we’re pleased to share
that our overall return rate continues to consistently DECREASE – an impressive statistic
considering the INCREASE in shipping.
Additionally, some products tend to have a few more quality issues. For example:
  ■   Beaded styles can break more frequently because of the amount
      of manipulation they undergo.
  ■   Components on leather styles compromised when glue is involved.
  ■   Stretch bracelets can break if the “rubber band” is overextended
      or weakened from use.
Given the choice between eliminating these popular products or understanding that occasional
damages are part of business, we have opted to include them. Should a product or style
become an ongoing issue, rest assured it will be discontinued.
Keep in mind, as we continue to grow, we will ALWAYS put service to you, your Hostesses and
Customers FIRST. After all, at lia sophia, everyone KNOWS there’s a LOT of LIFE in our jewelry!




 5/06                                                              Chapter 6: Jewelry Education   79
     Product Terms and Definitions
     Abalone Pearl     Pearl from an abalone, usually showing the iridescent colors characteristic
                       of the interior of its shell. It is a source of Mother-of-Pearl, which is used
                       in jewelry making. Colors are one-of-a-kind.

     Agate             A variety of chalcedony gem species, agate comes in many natural and
                       dyed colors, and has curved or angular banding. It was one of the first
                       gem materials known. Agate was thought to give the wearer a bold heart,
                       relief from insomnia and pleasant dreams.

     Alexandrite       A greenish mineral that appears red in artificial light, used as a gemstone.

     Aluminum          Silvery, lightweight easily worked metal now used for larger chains,
                       bracelets and bigger earrings.

     Amazonite         Amazonite is usually light green to blue-green, mottled and sometimes
                       contains light striations. It is generally opaque and can be sensitive to
                       pressure. This stone is said to calm one’s emotions and soothe nerves,
                       and to enhance creativity and the ability to express oneself. The deeper
                       the color of the amazonite, the more intense the effect is said to be.

     Amethyst          A purple variety of coarsely crystallized quartz. It is a popular gem
                       and comes in many shades – the deepest is often called Russian or
                       Siberian Amethyst.

     Anodizing         Forming a coat of a stable oxide compound on a metal surface. Done
                       electrochemically, this coating protects the metal from further oxidation,
                       corrosion and discoloration.

     Antiquing         A process whereby metal objects are chemically treated to take on a color
                       or patina associated with age.

     Art Deco          A style of decoration popular during the 1920’s and marked by clean lines
                       and simple geometric shapes.

     Aurora Borealis   Refers to crystal stones with a highly iridescent surface. Effect is achieved
                       by vapor-blasting the facets of the lower part of the crystals with an invisi-
                       ble, micro-thin metal sheet. Also refers to any iridescent finish.

     Aventurine        Aventurine is a metamorphic rock, meaning that it’s made up of more
                       than one mineral. In this case, aventurine is mainly quartz, and other
                       crystals. Interestingly, the name of the stone is derived from an accident.
                       Sometime during the 18th century, Venetian glass workers were preparing
                       molten glass when copper filings accidentally fell into the batch producing
                       a glass with sparkles. The name aventurine comes from the Italian
                       “a ventura,” which means “by chance.” This stone is found in many colors.

     Crystals          A clear, very brilliant quartz that is cut for jewelry use. lia sophia uses
                       excellent quality stones in their jewelry.

     Baguettes         Small step cut stones usually used as accents. Standard or straight
                       baguettes are rectangular, while tapered baguettes are wider at one end
                       than the other.



80   Chapter 6: Jewelry Education                                                                    5/06
Bail              An extension piece on charms, stones, pendants etc., so it may be worn
                  on a chain.

Bangle            A solid or hollow non-flexible bracelet forming a complete circle.
                  It is slipped on or clasped on.

Bead              A stone cut in the shape of a small sphere.

Bezel             A metal groove or flange that holds a gemstone in its setting. Also refers
                  to the slanting face of a cut gem.

Box & Tongue      A clasp in which a V-shaped wire fits into a small tube and
Clasp             locks in place.

Brass             An alloy metal composed of various portions of copper and zinc.

Cable Chain       A type of chain where the links are round and uniform in size.

Cabochon          Polished dome shaped cut stones without facets.

Carnelian         A pale red milky quartz which was once believed to benefit the wearer’s
                  health and love life.

Casting           A process of forming or duplicating jewelry objects by forcing molten metal
                  into an investment mold from which a wax pattern has been burned out.

Chalcedony        See Agate.

Channel Setting   A setting style that creates a line or a ribbon-like pattern with stones cut
                  to calibrated sizes. The stones are placed next to each other in grooves
                  or channels with little or no metal between them.

Coral             The hard calcium carbonate external skeleton of the coral animal.

Cubic Zirconia    Today’s best diamond imitation, CZ is manufactured not mined. With
                  brilliance and clarity that rivals diamonds, it’s the closest stone to a
                  real diamond.

Pearl             (oysters, etc.). Many mollusks form pearls; only a few are valuable. The exact
                  cause of their formation is not known, but it is presumed to be due to an
                  irritation by some foreign body which has gotten into the mollusk, perhaps
                  a grain of sand. The majority of pearls sold today are “cultured”, in other
                  words, formed by man planting a foreign substance in the mollusk to start
                  the pearl formation. A baroque pearl is a pearl of irregular shape and form.

Die Struck        An object that has been produced by striking gold sheets or tubing on
                  one or between two dies. The stamping hammer forces the metal into
                  every crevice of the die and forms sharp details.

Electroplating    Gold and silver-tone finishes are used for fashion or custom jewelry. The finish
                  is achieved through electroplating, a process of electrolysis through which
                  base metal is covered with a film of gold or rhodium (silver tone). Electroplated
                  jewelry is less expensive that karat gold and sterling silver, but just as pretty
                  and fashionable. The plating quality, finish and workmanship of lia sophia far
                  exceeds standards set by most fashion jewelry manufacturers. Styles that
                  get more “skin contact” (rings, bracelets) have heavier gold electroplate.


 5/06                                                           Chapter 6: Jewelry Education          81
     Embossed            A mechanical process done under considerable heat and pressure,
                         which permanently imprints a variety of unique effects into the surface.

     Emerald Cut         A gem cut which is usually rectangular, but sometimes square, with rows
                         of stepped facets along the edges and at the corners.

     Enamel              A vitreous, usually opaque, protective of decorative coating baked onto
                         metal or glass that dries to a hard glossy finish.

     Engraving           A design or pattern drawn onto metal with a sharp implement that
                         removes the metal.

     Epoxy               Any of several compounds having strong adhesion, toughness and chemi-
                         cal resistance, used as coatings and adhesives. Comes in many colors.

     Etching             A process for producing designs on metal by using acid. The design
                         is scratched through a coating of wax or varnish on the article, exposing
                         surfaces of the metal; acid is applied to eat into the metal to form
                         the design.

     Faceting            Also known as cutting. It is the best known gem fashion technique.
                         It produces small, flat faces, or facets, on gems of various shapes.

     Faux                A French word for false. Used in the jewelry industry to describe
                         simulated stones.

     Filigree            Delicate and intricate ornamental work made from gold, silver or fine wire.

     Findings            Often made of metal, they are any part used in jewelry construction and
                         repairs, such as bails, wires, posts, and clutches.

     Florentine Finish   A textured surface for metal produced by engraving a series of parallel
                         lines in one direction, then cross-hatching them at a 90 degree angle more
                         lightly than in the first direction.

     Fold-over Clasp     A type of clasp in which a hinged part opens, fits through a ring and
                         snaps closed to hold the ring in place.

     Formica             A trademark for any of various high pressure laminated plastic sheets.

     Fresh Water Pearl Pearls from a mussel living in fresh water of the genus Unio. The shells
                       have a very fine luster.

     Garnet              A hard, glass-like silicone material of various colors. The most precious
                         variety is of a deep, transparent red color. They are among the most
                         common of gems and are found in the crystals of rocks.

     Gemstone            A natural occurring mineral found in the rocks of the earth with the
                         chemical composition and internal atomic structure that makes it suitable
                         for jewelry use. The practice of separating gemstones into two groups,
                         precious (diamonds, emeralds, rubies, sapphires) and semi-precious
                         (all other stones) is being used less frequently.

     Gold-filled         Gold-filled jewelry is made by bonding karat gold to another metal. To be
                         labeled as such, the metal must have an outside layer that is at least 10K
                         gold and at least one twentieth of the metal’s total weight.


82   Chapter 6: Jewelry Education                                                                    5/06
Hematite        An opaque, dark gray to black metallic gem material.

Howlite         This versatile stone is named for Henry How, a 19th century mineralogist,
                who found it first in Nova Scotia. This stone forms naturally in nodules that
                appear like heads of cauliflower-like masses. Its natural color is like snow
                softly falling. Veins of black web-like streaks often are interlaced throughout
                the nodules, adding to their character. Due to the soft nature of this stone,
                however, it can easily accept dyes and take on the luscious appearance of
                turquoise blue. Regardless of how you use it, in its natural or dyed forms,
                Howlite makes the most delectable looking jewelry.

Inlay           In jewelry, to imbed material in another substance so that the surfaces of
                each are level.

Iridis          A play of colors producing rainbow effects.

Jasper          A form of semi-precious chalcedony – usually yellow, red, green or brown in
                color. Jasper is sometimes carved, but seldom faceted. Jewelry use of
                jasper goes back to the early history of civilization. It was once believed to
                have curative powers.

Jump Ring       A jewelry finding used for attaching parts of jewelry together. Jump rings
                are round or oval, in various sizes and metals.

Karat Gold      Gold is measured in karats. Pure gold, though precious, is not very
                practical for jewelry because it is too soft. To make it more durable,
                it is alloyed, or combined with various metals and then marked, according
                to strict government regulations, for gold content. Pure gold is classified
                as 24 karat, or 24K. The most common karat content for jewelry in this
                country is 14K, which means that 14/24 of the item is gold, the rest
                an alloy metal. 18 karat jewelry is also commonly found in this country, and
                an occasional piece may be 22K. Nothing less that 10K can legally be sold
                in the United States.

Lariat          An open-ended, long strand necklace. Sometimes looped into a knot
                or used with a slide so the two ends hang free.

Lapis           Lapis-lazuli, is a semi-precious stone of an azure blue color often
                tinged with violet. It is referred to as “heavens blue” and has long been
                associated with spiritual peace.

Lavender Jade   Often referred to as jadeite. It is a type of jade which is a rarer than the
                other varieties of nephrite. It is a hard and translucent and comes in many
                colors such as orange, pink, yellow, brown, blue, lavender and black.
                Value increases with transparency, intensity and evenness of color.
                The word “jade” is derived from the Spanish (pietra d’ijada) which means
                “colic stone”. In China, Jade has been respected for thousands of years.
                Jade is considered an important symbol of purity and serenity.

Lobster Claw    A clasp used for necklaces and bracelets which features an elongated
Clasp           hook. It contains a spring mechanism and can be opened to catch the
                ring from the other end of the chain.




 5/06                                                         Chapter 6: Jewelry Education        83
     Lost Wax Casting A process of casting whereby a wax model is encased in an investment
                      similar to plastic. The investment is agitated mechanically or put into a
                      vacuum to remove air bubbles and placed in an oven where the wax is
                      burned off, leaving a cavity that is filled through an opening with molten
                      metal. The investment is broken away from the hardened metal which is
                      ready for polishing and stone setting.

     Luster              The brightness of a stone’s surface reflections.

     Marcasite           A gem that was favored in generations past. It is crystallized iron pyrites
                         “fools gold” that is strong and substantial. It grows in the form of rosettes.
                         When used in jewelry, the stones are always quite small and add a diamond-
                         like sparkle.

     Marquise            An oval shape gemstone cut with pointed ends. It’s named for the
                         Marquise de Pompadour, Mistress of King Louis XV.

     Matte Finish        A finish that gives metal a grainy, sandblasted look.

     Mother of Pearl     The iridescent pearl lining of a shell.

     Onyx                A semi-precious variety of agate. Most common is Black Onyx;
                         a chalcedony that is dyed black.

     Opal                Opal is a semi-precious gemstone, and one of the most fascinating. The
                         opal, the “Queen of Gems,” is non-crystalline and iridescent. Due to its
                         delicate nature, it should never be left near any heat or bright light source
                         (sun) and should be removed before doing the dishes! Some people think
                         the Opal is unlucky, but it is one of the most valuable and desired gems.

     Oxidizing           A black finish applied to metals, either fully covering the surface or as
                         background for highlighted features of a design produced by polishing off
                         the oxidation from higher parts of embossed or engraved work.

     Panther Link        A flat chain in which solid links are arranged like bricks.

     Pavé                A type of setting in which a number of small stones are set as closely
                         together as possible.

     Princess Cut        Similar to the emerald cut except with more detailed multi-faceted cuts,
                         which adds exceptional brilliance to the stone.

     Puha shell (paua)   Large, iridescent abalone shell from Northeast Australia that has a bright
                         blue and green pearly coating and produces quality Mother-of-Pearl.

     Rhinestone          A colorless artificial gem of glass, often with facets that sparkle in
                         imitation of a diamond.

     Rhodium             A white metallic element of the platinum group, used as an alloy addition
                         to platinum and palladium jewelry, and as an electroplate finish.

     Rococo              A style of art developed from the Baroque that originated in France
                         (about 1720) and soon spread throughout Europe; this style is used in
                         architecture and decoration, characterized by elaborate, profuse designs
                         intended to produce a delicate effect.



84   Chapter 6: Jewelry Education                                                                  5/06
Rondelle          Small flat discs which separate the larger stones of a necklace.

Rose Quartz       One of the most desirable varieties of quartz. Its delicate pink color is
                  derived from traces of manganese and titanium in the stone.

Satin Finish      A finely textured metal finish, resembling a satin sheen. It is produced by
                  scratching a series of tiny parallel lines on the surface with a wire brush.

Scarab            One of the oldest and simplest gem forms. Essentially, it is a cabochon
                  engraved to represent a type of beetle common in Mediterranean countries.

Silver Plate      A fine silver film deposited on a base metal by electrolysis in the same kind
                  of electrically charged bath used to make gold electroplate. The film can
                  be as thin as 7 millionths of an inch. A silver plate item cannot be called
                  sterling or bear a marking of “silver”.

Sodalite          Characterized by its dark, intense blue color with white and sometimes
                  yellow streaks. Sodalite is a scarce mineral that can be rock forming and
                  takes its name from the reference to its sodium content.

Spring Ring       A jewelry finding used at the closing of a necklace or bracelet. It’s actually
                  a coiled spring enclosed in a circular tube. The spring presses on the inner
                  end of a curved wire partially projecting from the tube to complete the
                  circle and the closing.

Turquoise         A semi-precious stone that has been treasured around the world for
                  thousands of years. In many cultures, turquoise is regarded as a harbinger
                  of good fortune, success and health. Turquoise was first found in Turkey,
                  hence its name, now it is found in desert regions worldwide and ranges
                  from sky-blue to bluish green, even occasionally apple green. Over time,
                  the stone will absorb oils from your skin and the stone will begin to change
                  color slightly.

Stamping          Producing quantities of similar pieces by striking the material into form
                  by using power-driven presses, or in smaller shops, by foot operated
                  die presses.

Sterling Silver   A precious metal, Sterling Silver is composed of .925 percent pure silver
                  plus another metal, usually copper.

Surgical Steel    A special kind of steel developed without any nickel content. Since most
                  pierced ear irritations are caused by an allergic reaction to nickel, jewelry
                  manufacturers are using surgical steel on parts of the pierced earring that
                  may touch the ear. lia sophia’s pierced earrings are being made with
                  surgical steel posts and clutches. In some cases, posts and clutches
                  must be gold-filled due to manufacturing problems.

Tiger Eye         A semi-precious gemstone with thin bands of rich yellow and golden
                  brown on a gleaming surface.

Toggle Clasp      A fastener consisting of a ring on one end of a necklace or bracelet and
                  a short bar on the other end. The bar is slid through the ring and sits
                  across it so it does not slide or pull.




 5/06                                                          Chapter 6: Jewelry Education        85
 Product Quick Tips and Repairs
 PROBLEM            Best to Use           Alternative               What to Do

Resetting          ■   Smooth jawed       ■   Eyebrow tweezers      Notice that tiny grooves (sets) have been cut
                       jeweler’s pliers       (do not use regular   into the inside surfaces of the prongs. The
loose stones
                       available at           pliers)               widest part of the stone fits into the sets:
                       craft stores       ■   Glue                  ■   Place jaws of pliers or tweezers low on the
                   ■   Epoxy compound                                   prongs. Avoid scratching gem.
                                                                    ■   Gently pinch prongs moving closer a little at
                                                                        a time. Do NOT apply pressure to avoid
                                                                        breaking prong.
                                                                    ■   Imitation stones (NOT precious stones) may
                                                                        be reset by putting a tiny drop of epoxy glue
                                                                        on side of stone that touches setting. Press.

 PROBLEM            Best to Use           Alternative               What to Do
Repairing clasps   ■   Epoxy cement       ■   Water soluble glue    For Beads:
                   ■   Jeweler’s pliers                             ■   Snip off clasp, leaving as much cord as
                                                                        possible. If there is no knot next to the last
                                                                        bead, make one.
                                                                    ■   Thread cord through line in new clasp.
                                                                    ■   Knot link against last knot in string.
                                                                    ■   Trim cord leaving length equal to width
                                                                        of last bead.
                                                                    ■   Apply glue to cord.
                                                                    ■   Let dry until stiff.
                                                                    ■   Insert cord end through hole in last bead
                                                                        leaving only knot showing.
                                                                    ■   Carefully dab glue on knot and let it dry.
                                                                    For Necklace or Bracelet:
                                                                    ■   Twist open the end link of chain or jump ring
                                                                        that holds clasp.
                                                                    ■   Put on a new clasp and press ends of link or
                                                                        ring together with pliers.




86         Chapter 6: Jewelry Education                                                                5/06
Product Quick Tips and Repairs
PROBLEM          Best to Use               Alternative                 What to Do
Restringing      ■   Beading cord with     ■   Nylon cord, thread or   ■   If string breaks, replace cord.
beads                beading needle from       dental floss thin           Don’t use the old one.
                     craft store               enough to pass twice    ■   Fold stiff paper in “M” shape, folding in ends
                                               through holes.              to prevent spill-off.
                                           ■   Ordinary needle         ■   Place beads in the same order as old cord.
                                                                       ■   Cut cord 12" longer than length of necklace.
                                                                       ■   Use needle and tie knot in cord 1/4" from end.
                                                                       ■   Slip beads over needle on cord in proper order.
                                                                       ■   String very small beads together, intersperse
                                                                           larger beads with knots.
                                                                       ■   Slip bead onto cord, loosely knot and use finger
                                                                           to clip knot toward bead.
                                                                       ■   As knot becomes smaller and tighter, insert
                                                                           needle and push knot against bead.
                                                                       ■   Pull knot tight and remove needle.
                                                                       ■   Repeat until complete and add clasp.


PROBLEM          Best to Use               Alternative                 What to Do
Adjust tension   ■   Flat nose jeweler’s   ■   Strong tweezers         ■   Grasp in stem with jeweler’s pliers close to joint.
of a pin             pliers                                            ■   Gently bend to bring point well behind catch.
                                                                       ■   Pin stem will snap in securely.




PROBLEM          Best to Use               Alternative                 What to Do
Adjusting clip   ■   Jeweler’s pliers                                  ■   Clip back tension is applied through a spring
back earrings                                                              that is either part of back (open joint) or set
                                                                           inside a sheath that is part of back.
                                                                           • Bend neck of sheathed clip away from
                                                                             mount to loosen grip.
                                                                           • Bend forward to tighten grip.
                                                                           • To adjust the spring of the open joint clip
                                                                             which lies between the two hinge pins
                                                                             which hold clip on mount, open one edge
                                                                             with pliers and slide out clip.



          5/06                                                         Chapter 6: Jewelry Education                         87
 Product Quick Tips and Repairs
 PROBLEM             Best to Use            Alternative   What to Do
 Roll-over of pin    ■   Flat nose pliers                 ■   Gently squeeze sides of roll-over.
 is loose


 PROBLEM             Best to Use            Alternative   What to Do
 Gum from tag        ■   Alcohol                          ■   Clean with a soft cloth.
 on ring shank


 PROBLEM             Best to Use            Alternative   What to Do
 Lobster Claw or     ■   Baby oil                         ■   Put a drop on closure and work closure
 Spring Ring                                                  until smooth.

 does not close
 smoothly




88          Chapter 6: Jewelry Education                                                   5/06
Product Care Hints
Proper care will enhance and extend the life of lia sophia jewelry. Don’t hesitate to share
these tips with your Customers.
  ■   Always keep jewelry covered from dust and dirt; store in a protective jewelry box holder.
  ■   Well water and salty air may cause adverse reactions in jewelry.
  ■   Some people’s body chemistry produces more acid in the skin. This may discolor and
      damage jewelry no matter what you do.
  ■   Remove jewelry when working outside, playing sports, cleaning, showering and swimming.
      Rings should be removed before washing or applying hand cream.
  ■   Soaps, detergents, lotions and creams, hair spray and perfume can break down the finish
      on jewelry – so always put your jewelry on last.


Fall/Winter ‘06 Product Updates
Beginning with orders shipped on Monday, October 2nd, our Stylized (430) necklace will feature
a slightly modified hook closure. If your display features a sample of this style, please let your
Customers know that the closure has been modified.




                                                                                    New hook closure




10/06                                                             Chapter 6: Jewelry Education         89
     FAQ’s
     Occasionally at your Shows, Customers will have questions about product content. We’ve
     found that an educated Customer is usually a happy Customer – one who spends more!
     Q: “I only wear real gold!”
     A: Some of our styles are designer-influenced and emulate the look of “real.” Wearing
        lia sophia jewelry, you can afford to look and feel your best. Why spend money on the
        “real thing” when you can purchase the similar styles at half the price and have a Lifetime
        Replacement Guarantee.
     Q: “Does your jewelry contain nickel?”
     A: Yes, we do have nickel in our jewelry and all jewelry contains some level of nickel. Nickel is
        used in fine and fashion jewelry as an alloy that enhances brilliance in the metal. lia sophia
        jewelry is plated with more mils of the gold or rhodium over the nickel to assure longer wear.
        Most people with sensitive ears are actually reacting to nickel. For Customers with allergies,
        we recommend earring styles that use fish-hook, euro-wire or styles with no backing. This
        will allow air to pass and extend wearability.
     Q: “Your rings turn my fingers green.”
     A: It is true that everyone has unique body chemistry. Some people have more acid in their skin
        than others. Particular foods can also increase acidy in your body chemistry. This acid level
        can cause discoloration to your jewelry.
     Q: “What is your jewelry made of?”
     A: All of our jewelry starts out with a base of white metal or brass. This is then electroplated
        in a gold or rhodium solution for plating color. In the gold solution, there is real gold which is
        electrically bonded in the plating process.
     Q: “Are your earrings surgical steel hypo-allergenic?”
     A: Yes, although keep in mind, even surgical steel contains
        a low percentage of nickel.
     Q: What sizes are lia sophia necklaces available in?
     A: It varies by piece. Here’s a convenient illustration
        to refer to necklace lengths.




90   Chapter 6: Jewelry Education                                                                      5/06
                                                    Chapter Six: Quick Quiz

1. Each piece of jewelry is covered by a               5. When not in use, jewelry should be stored in
   a. 30-day Guarantee                                     a. A glass jar
   b. Lifetime Replacement Guarantee                       b. A jewelry box
   c. 60-day Guarantee                                     c. In a dish
   d. None of the above                                    d. Anywhere


2. All of our gold jewelry is                          6. Earring posts are made of
   _____ to _____ electroplated.                           a. Solid gold
   a. 10-14K                                               b. Platinum
   b. 10-22K                                               c. Surgical steel
   c. 14-22K                                               d. None of the above
   d. None of the above


3. Gold is measured in _____ of an inch.
   a. Tenths
   b. Hundreths
   c. Thousandths
   d. Millionths


4. Stones are either _____ or _____.
   a. Set or glued
   b. Glued or soldered
   c. Set or soldered
   d. None of the above




                     Answers available online in Printables in the Advisor Advantage.
     5/06
92   5/06
                                                 Chapter Seven:                               Guidelines



Overview
At lia sophia, the guidelines detailed here have been created to help ensure that Advisors
around the country are treated fairly and consistently. Take some time to familiarize yourself to
ensure that you’re running your business by “the book!”



Addendum
Occasionally, company policies and procedures will be updated. In such cases, an addendum
will be published and/or posted online.



Agreement and Starter Show Submission
In order to represent lia sophia as an independent contractor, the company must receive
a completed and Agreement either online through the recruiter’s personal website, by fax or
by mail. Payment in full is required at time of submission via Visa, Mastercard or Discover.
All Starter Kts ship within two to three business days via UPS ground or USPS*. Either party
may terminate the relationship at any time for any reason with written notice. (Refer to current
Agreement guidelines). Should you wish to leave the company, written notice is required.
This is acceptable by mail, fax or email to cs@liasophia.com.
Faxed Agreements and/or Starter Shows, must be submitted by Noon on Friday to be included
in the CURRENT week’s business. FAXED Agreements and/or Starter Shows received after
Noon on Fridays WILL count for the following week.
Keep in mind, however, ALL Agreements and Starter Shows entered ONLINE by YOU that are
SUBMITTED BY NOON on Mondays will count towards the previous week’s business.




*Note: Premium shipping is not available.


 5/06                                                                      Chapter 7 Guidelines            93
     Back orders
     If an item is temporarily out-of-stock, the Show is shipped and a “back order” is indicated
     on the invoice. The item is shipped as stock becomes available. If an item cannot be shipped
     within 30 days, a letter is sent to the original “Ship to” address asking if the Hostess/Customer
     prefers to wait for the item or receive a credit or a refund.



     Calculation errors
     For calculation errors of $9.99 or less, due the company, we will deduct the amount from
     your next profit check. Advisors should review the invoice to determine where the error is and
     contact the appropriate Customer for the balance owed.
     For errors greater than $9.99, the order will be delayed while Customer Service contacts
     you to resolve the situation.



     Certificates and premiums
     If the END USER is NOT paying for the credit, it will be called a jewelry premium and
     WILL have an expiration date of six months. IF it is purchased, it is called a certificate and does
     NOT have an expiration date.



     Change of address
     We never want to lose touch with you! Should your home address, phone or email information
     change, please contact Customer Service. Address changes must be submitted in writing.



     Cost of doing business
     In addition to minimum expenses for catalogs and supplies, the following charges
     are applied to profits:
       ■   $6.00 per Show for the Hostess Award Program. Keep in mind, any additional Hostess
           credits awarded outside the regular Hostess Program will be charged 30% of the difference
           between the regular allowable Hostess credit and what was given.
       ■   Additionally nominal fees may be charged for the use of optional Hostess and Customer
           Award Programs.
       ■   If a ring order is received without a size, a certificate will be sent in place of the ring.
           When the Customer redeems the certificate, the Advisor’s account is charged $1.25.




94   Chapter 7 Guidelines                                                                                 5/06
 ■   A charge of $4.00 applies for each incomplete or declined bank card transaction
     submitted by fax or mail for the following reasons:
     • wrong/incomplete Customer bank card information.
     • wrong/incomplete Advisor bank card information
     • declined Advisor’s card.
     • No charge applies for a declined Customer bank card.
 ■   A charge of $1.50 applies for each $5.00 Customer gift certificate used (See supply list).



Credit Card Authorization – Online
Automated credit card authorization offers orders entered online some terrific functionality.
As you utilize this wonderful tool, please keep the following in mind.
 ■   Your Show’s Customer and Hostess orders require detailed credit card
     billing name and address information.
 ■   When you submit your order, the Show's credit cards are authorized in the following order:
     • Customer 2-98
     • Customer 99
     • Customer 01
     • Customer XX
 ■   Please note: The Show credit cards are PROCESSED in the order listed above.
     For example, if you receive an error with customer 01, know that customers 2-99 have
     cleared without issues.
 ■   WHEN YOU RECEIVE AN ERROR MESSAGE, THE SHOW WILL NOT HAVE BEEN
     SUBMITTED TO THE HOME OFFICE and will continue to appear on your order list.
 ■   It will ONLY be SUBMITTED to the Home Office AFTER all issues, INCLUDING CREDIT
     CARD ERRORS, are resolved.
 ■   Note: once an order’s credit card is authorized, it CANNOT be deleted. Please make
     sure you complete the ENTIRE order before submitting it for authorization.
 ■   Allow approximately FIVE seconds of processing time for EACH credit card number
     entered per Show.
What does automated credit card authorization mean for you?
 ■   YOU have the opportunity to IMMEDIATELY contact the Hostess or Customer and
     get corrected information.
 ■   YOU effectively are in control of your own holds! Simply enter the corrected information
     and transmit.
 ■   Best of all, because internet credit cards are being authorized right away, Advisors will
     NOT incur charges for bank card declines or for incorrect Customer or Advisor bank card
     information. (These charges will remain in effect for faxed or mailed orders).



 5/06                                                                     Chapter 7 Guidelines    95
     At week-end/month-end close, please keep in mind:
       ■   Advisors will need to have at least one credit card per Show authorized
           PRIOR to Monday at Noon.
       ■   Shows not transmitted because of error codes WILL NOT be included in month-end
           UNLESS CORRECTED and transmitted successfully to the Home Office PRIOR TO
           Tuesday at 10:00 p.m. This process is the same as current procedures which requires
           all credit card problems to be fixed by the end of the day on Tuesday to be included
           in the weekly/month-end business.
     As your Hostesses and Customers continue to enjoy the additional efficiencies of Shows
     entered online, please keep the following in mind:
       ■   Allow ample time to correct data errors. For your convenience, we’ve summarized
           the MOST common error messages and recommended action steps below:
           • Invalid expiration date: verify date and contact Customer if needed.
           • Credit card declined for duplicate transaction: contact lia sophia Customer Service.
           • Card not yet active: contact Customer.
           • Issuer declined card: contact Customer.
           • Not authorized: contact Customer. (Note: if you are confident that the card is
             a DEBIT card, you may try to resubmit again the next day.)
           • Card expired: contact Customer.
           • Transaction declined: contact lia sophia Customer Service.
       ■   Because of the challenges associated with debit card daily limits, we encourage the
           use of credit cards. 50% of errors that we currently encounter are caused by debit card
           daily limit issues so minimize their use whenever possible.
       ■   When accepting credit cards from Customers, be sure the address they list on their
           order form matches the bill-to address on the credit card they are using.
       ■   Should an issue arise at month-end with a Guest’s credit card, you may want to encourage
           your Hostess to authorize use of her own card and settle up with her Guest at a later date.
       ■   Finally, one very important additional point to remember: Once you have entered an
           order and pressed SUBMIT, the order MUST BE COMPLETED ON THE INTERNET.
           DO NOT FAX A SUBMITTED ORDER – this will AUTOMATICALLY result in DOUBLE
           processing. Keep in mind, this would mean ALL credit/debit cards associated with
           the Show WOULD be DOUBLE charged BEFORE the situation could be corrected.




96   Chapter 7 Guidelines                                                                            5/06
Expenses
Many expenses that you incur will be tax deductible. Save your receipts and contact
a tax professional to assist you in maximizing your tax savings.



Exchanges
Hostess and Customer
The lia sophia Hostess will receive her order as well as the orders for the guests who attended
her Show. Please be sure to remind her to include the Customer Invoice/Purchase Receipt
provided for each customer with their jewelry before distributing. This receipt includes
pertinent information required for returns and exchanges: Advisor name and number,
Hostess name, shipment number, and customer number.

Processing an exchange
Should an exchange be necessary, customers must work directly with lia sophia.
Instruct your customers to process an exchange in the following manner:
  ■   Fill out the pertinent exchange information found on the back of the Customer
      Inovice/Purchase Recepit.
  ■   Send a COPY of the ORIGINAL Customer Invoice/Purchase Recepit, the item (s) and
      monies due to lia sophia to the attention of the Returns/Exchange Department.
      (Be sure to keep a copy for your records.)
  ■   Send $5 per item for any returned/exchanged item after 120 days of receipt.
      Reminder: jewelry returned within 120 days will replaced at no charge. After this, a $5.00
      handling charge per item will be assested. If the original selection is no longer available,
      a gift certificate will be sent for its full value.
  ■   Each Bonus item returned is eligible for ONE replacement bonus item of equal or lesser
      value. A certificate will be issued for any remaining balance.
  ■   No refunds after 45 days

Advisor
Samples
  ■   Fill out the Advisor Sample Exchange form
  ■   Send the ORIGINAL Customer Invoice/Purchase Receipt (keep a copy for your records),
      Advisor Sample Exchange form AND the ITEM (s) to lia sophia to the attention of the
      Returns/Exchange Department.
  ■   Samples may be EXCHANGED ONLY if defective and ONLY for the SAME ITEM.
      Discontinued samples cannot be exchanged for any reason.




 9/06                                                                       Chapter 7 Guidelines     97
       ■   Send $5 per item for any returned/exchanged item after 120 days of receipt. Reminder:
           jewelry returned within 120 days will replaced at no charge. After this, a $5.00 handling
           charge per item will be accessed. If the original selection is no longer available, a jewelry
           premium will be sent for its full value.
       ■   Do not mail an order with your exchange, please mail separately.
       ■   Samples are not eligible for return or refund.

     Supplies
       ■   Supply items cannot be exchanged
     NOTES:
     Returns/exchanges received without receipts will NOT be processed and may be returned
     to you or your customers.
     Returns/exchanges received past the 120 will NOT be processed without the $5.00 per item
     handling charge and may be returned to you or your customers.



     Gift certificates
     $25 and $50 Gift Certificates may be purchased individually or with the Customer Save
     Plan and ordered on a Customer Selection Ticket. Tax is charged at the time of purchase.
     Profit is also paid upon purchase. If redemption for a regular price selection exceeds the
     certificate value by $5 or more, shipping and tax must be charged on the overage.



     Home Office
     Deadlines
       ■   Business Week End: Mail orders received Monday through Friday will be entered in the
           current business week. Fax, Express Mail and internet orders received by Noon Monday
           will be entered into the previous week. Faxed Agreemenets and Starter Shows must be
           submitted by Noon on Friday to be entered for current week’s business.
       ■   Business Month End: Our business year is divided into “fiscal months” (4-5 weeks each)
           as indicated on the fiscal lia sophia calendar available online in Printables. Our month-end
           order acceptance deadline for mail, fax and internet orders is Noon on MONDAY (NOON
           Friday for FAXED Agreements and Starter Shows) for EVERY month end. Please note, if a
           month-end Monday falls on a Holiday (Memorial Day, Labor Day, etc.), the deadline WILL
           be noon on Tuesday.
       ■   Internet orders submitted by NOON on Monday do not need to be completed until 10:00
           p.m. on Tuesday as long as at least ONE credit card has been authorized.

     Mailings
     Profit checks are mailed separately from invoices and statements. Please note: in weeks that
     include a Facets mailing, your invoice/statement will be included with the newsletter.


98   Chapter 7 Guidelines
Lead Program
New Advisor leads are at the heart of our business. And as you know, EACH lead received at
the Home Office is assigned for follow-up to an Advisor or Manager in the field. Because this
process is so IMPORTANT, we thought it would be helpful to review EXACTLY how leads are
handled. Our system verifies qualified Advisor and Manager eligibility daily.
To receive a lead, you must:
  ■   Have a registered e-mail address with lia sophia.
  ■   Achieve $1300 or more in personal recognition sales in the current or previous month
      (Advisors, Units and Star Units only).
  ■   Achieve minimum group requirements (Divisions and above).
When a lead is entered either online, by phone or by fax:
  ■   The system searches in five-mile increments. It continues to do this until it finds the
      Advisor or Manager closest to the lead’s zip code. If there is MORE THAN ONE eligible
      person, the leads are assigned on a rotating basis.
Note: Before an Advisor or Manager’s name appears, the computer automatically determines
the next eligible person in rotation. ONLY the name of the next individual in rotation will appear.
When information is entered and SUBMITTED, the NEXT request will receive the NEXT
Advisor/Manager’s name in the rotation.
  ■   Until information is entered and submitted the SAME NAME will continue to appear.
      In order to BEST maintain the integrity of the leads process and more importantly to
      be fair to ALL Advisors, please DO NOT enter “practice” information to test the system.
  ■   If there are no Advisors or Managers within a 50-mile radius, it will search for a Manager
      within 150 miles.
  ■   An email will be sent to the lead indicating that their name has been assigned to an
      Advisor/Manager working with their area. It indicates that they should be contacted within
      five business days.
  ■   If the lead RESUBMITS their request within five days, it will be flagged as a duplicate
      and resent to the same Advisor/Manager.
  ■   If the lead RESUBMITS and has not been contacted AFTER five days, their name will
      be forwarded to the next eligible Advisor/Manager.
Note: If you receive a lead and choose NOT to follow up, please forward the information
to your Upline Manager so she can contact them as soon as possible.
  ■   If you have one, a link to YOUR personal website will be included on the Internet
      thank you page. This is designed to help them learn more about you and your business
      BEFORE you make contact. You have the opportunity to add YOUR OWN photo and
      a brief personal message to the thank you page. Update this through the “preferences”
      tab in Advisor Advantage online.




                                                                            Chapter 7 Guidelines      99
      Maintaining active status
      To be considered an active Advisor, eligible to receive mailings and maintain a personal website,
      you are required to submit a Qualified Show every 12 weeks (minimum $250 in profitable
      sales). Thank you gifts ordered on Customer 99’s included with Shows will not count towards
      the order minimum of $250. And thank you gifts ordered on Customer 99’s that are sent
      separately also will not count towards reactivating or maintaining your active status. In addition,
      thank you gifts ordered on Customer 99’s are not available to inactive Advisors unless
      submitted with a Qualifying Show.



      Minimum Show requirement – Qualified Show
      All Show orders must be submitted with a minimum of $250 in profitable sales for Hostesses to
      be eligible for Hostess Credit. Note: Profitable sales include all Customer, half-price and
      Hostess purchases less Hostess credit and certificates used. They do not include Thank You
      gifts (Customer 99) purchases. Personal recognition sales include all regular, half-price, Hostess
      and thank you (Customer 99) gift purchases.



      Name and Logo Usage
      We couldn’t be more excited about our incredible tagline and logo. We’ve worked with designers
      to create a look and feel that best represents our new brand. With that in mind, we’ve developed
      some stricter name and logo usage guidelines that everyone (INCLUDING the Home Office!)
      MUST adhere to!
      This has been done for several reasons. First and foremost as lia sophia continues to grow
      nationally, we must be extremely careful, even protective, of the way in which our logo and
      materials are used.
      As we continue to develop our new brand, everything our logo appears on is associated
      directly with the corporate entity, lia sophia. Because of this, we must require that our logo
      appear exclusively only on company-provided or approved materials.
      Additionally, the Internet is a powerful advertising tool and we strongly encourage all Advisors
      and Managers to have their own company-authorized personal websites. Please note: this is
      the only lia sophia website that Advisors or Managers may have.
      lia sophia prohibits:
        ■   The submission of its name to any search engines.
        ■   A lia sophia personal website listing on a search engine.
        ■   An illegal personal website.
        ■   A sponsored link on a search engine.
        ■   The sale of lia sophia products through an online auction site.



100   Chapter 7 Guidelines                                                                             5/06
  ■   The use of a copyrighted image(s) or making an unauthorized claim (including hourly
      earnings, misuse of the Lifetime Replacement Guarantee, representing yourself as the
      company, etc.) This could also involve penalties from the Federal Trade Commission.
Advisors/Managers in violation of this policy will receive THREE written warnings from the Home
Office. Failure to comply by the THIRD warning WILL result in termination of the independent
contractor agreement as outlined in point #13, “Except as authorized by lia sophia, I will not
use or display lia sophia trademarks, trade names and copyrighted materials.
For your benefit, the Printables section in the Advisor Advantage will include approved
  ■   Advertisements for newspapers or magazines, including a/an
      • Hostess/booking ad
      • Recruiting ad
      • Open House announcement
      • Opportunity Meeting announcement
  ■   Signs that can be displayed at Monthly Meetings (Managers only)
  ■   Signs that can be featured in your display
  ■   Car magnets
Our fantastic LogoLine also includes terrific lia sophia apparel along with business cards,
a logo stamp, name badge and other business supplies. To ensure that we present a
consistent corporate image, any other use of the logo must be approved IN WRITING by the
Home Office. Email logouse@liasophia.com



Personal discounts
As an active Advisor, you are eligible to purchase up to 24 additional product samples for your
kit at a 77% Privilege Purchase discount during your first five weeks in business. After that, you
enjoy a 70% discount as long as you remain active.



Premium Shipping Charges
When choosing to incur ADDITIONAL expense of premium shipping, i.e. overnight, two-day air,
etc. for your orders, please keep in mind that ACTUAL charges are determined AFTER the
order has been packed, weighed and shipped. Previously, A/R charge ticket (pink) was mailed
weekly indicating the charges. Currently, these charges are listed on your profit check with the
code 601 or 602. For the best “estimate” PRIOR to placing your order, visit www.ups.com.



Profit checks
Profits are paid weekly. Checks are mailed every Friday for orders received the previous
business week except for month end when checks are mailed on Monday. Direct deposits are
available on Tuesdays.

 5/06                                                                     Chapter 7 Guidelines       101
      Public Relations
      Localized PR
      Every 4-6 weeks, ENR, our public relations firm, creates a FEATURE press release. Topics have
      varied from seasonal fashion tips to life-changing opportunities the business offers. Specific
      subject matter determines the distribution and releases can be sent on behalf of Managers,
      Advisors or both.
      Those selected for participation by the Home Office obtain a personalized copy of their release
      in an opt-out email shortly before it is forwarded to media outlets. The recipient has the option
      to participate OR NOT. If they DO NOT specifically OPT OUT of participation, the release is sent
      on their behalf. Immediately following, each individual receives an email detailing the
      publications that received it.
      Additionally, there are three GENERAL releases that are also created monthly – New Advisors
      who reach the third level of Excellent Beginnings, top sales Achiever and new management
      promotions. These also go through the opt-out procedure.

      National PR
      Please visit the website for more information on our current corporate endeavors.



      Returned orders
      When a prepaid order is returned, lia sophia notifies the Advisor, Hostess and Upline Manager
      and requests new shipping information. If a response is not received within 10 days, the order
      is canceled. Deposits are refunded to the Advisor less any profit paid. The Advisor is then
      responsible for adding her profit back to the deposits and returning them to the Hostess.
      Sales are charged back and adjustments made to override and total sales volume the week
      of the cancellation.



      Refunds
      Refunds will be issued only within 45 days of the original purchase date, when accompanied by
      the Customer Purchase Receipt. The profit that you received from these items will be deducted
      from your next check.




102   Chapter 7 Guidelines                                                                         5/06
Sales Tax
Hostess Credit
For your individual state’s information, please refer to the list in Printables online in the
Advisor Advantage.

Shipping Fees
The shipping fee is $3.80 per Customer. Alaska and Hawaii shipping fee is $4.50. The following
states require that sales tax be charged on shipping: AL, AK, CA, CO, CT, FL, GA, HI, IA, IL,
IN, KS, KY, LA, MA, ME, MI, MN, MO, MS, NC, ND, NE, NV, NM,NY, OH, OK, PA, RI, SC, SD,
TN, TX, UT, VA, WA, WI, WV and WASHINGTON, D.C. This list is subject to change. Updates
will be posted in the Advisor Advantage.

Merchandise
Sales tax must be collected on each order placed in the United States; however there are
four states that do not charge sales tax: Delaware, Montana, New Hampshire and Oregon.
The ship-to address (zip-code, city and county) will determine the sales tax rate to use.
Because lia sophia is headquartered in Illinois, ALL orders delivered in Illinois are subject to
the Home Office’s current tax rate of 7.75%. If your zip code is outside the city limits and
a revised tax code applies, check with Customer Service for the correct tax percent.



Shipping schedule
Shows will be processed in three to five working days or less. Depending on month-end
volume, this may increase to seven working days.
All orders to Alaska and Hawaii will be shipped via UPS 2-day air. UPS will not deliver
to P.O. boxes.



Show payment
Guests may pay by cash, check (payable to the Advisor) or bank card. Customer checks are
not accepted by the company. Your initial Shows must be paid by bank card or money order
until you have accumulated at least $1,500 in total sales. Once, the $1,500 has been reached,
lia sophia will accept your personal checks. A check returned for insufficient funds will revoke
check writing privileges and result in a service fee and loss of check writing privileges for a
period of six months. When sending in multiple orders, please send one check per Show.




 9/06                                                                        Chapter 7 Guidelines   103
      Supply orders
      Business Supplies
      Standard business supplies (catalogs, order forms, etc.) are also available and can be ordered
      online through regular lia sophia Order Entry. A Business Supply Catalog is available in the
      Printables section of the Advisor Advantage.

      LogoLine
      lia sophia has made available a fantastic line of logo clothing and personalized business
      supplies. These can ONLY be purchased online in the LogoLine section of the Advisor
      Advantage, by calling 1-630-544-5261 or by faxing 1-630-544-5031.



      Tax responsibilities
      As an independent contractor, you’re responsible for paying all state and federal taxes
      on your business earnings. By January 31st of each year, lia sophia issues you a 1099 Form
      for commissions, prizes and awards totaling more than $600 during the prior year. Because
      many of your business expenses are tax-deductible, we recommend that you save all
      business-related receipts and consult a tax professional at tax time. For more information,
      visit the Advisor Advantage.



      Wellness Program
      lia sophia is pleased to announce an exciting new partnership with Wellness Services.
      This innovative program offers you the opportunity to maintain your independent contractor
      status while enjoying numerous benefits including:
        ■   Affordable health, life and dental insurance: Select from more than 5000 policies from
            140 leading insurance companies. BOTH individual and family plans are available to provide
            you with comprehensive and customizable coverage.
        ■   Practical pharmacy and vision discount cards: Save hundreds of dollars annually on
            prescriptions, eyeglasses and other vision care.
        ■   Tax deductible savings and banking: A combination of innovative programs,
            all designed to help you save money and plan for the future health, retirement and
            education needs of your family!
      All of this, PLUS…
        ■   A personalized, secure and convenient home page for you to access all of your wellness
            benefits, including details on claims filing, accounts, deductibles met, etc.
      There’s never been a BETTER TIME to take charge of your healthcare while saving money
      and planning for the future! To find out more, simply go to the “Other Resources” tab in the
      Advisor Advantage.



104   Chapter 7 Guidelines                                                                           5/06
                                              Chapter Seven: Quick Quiz

1. If a backorder cannot ship within _____             5. To be considered an Active Advisor,
   days, a letter is sent asking if the                   you must _____.
   Hostess/Customer prefers to wait.                       a. Submit a Qualified Show every 3 weeks.
    a. 15                                                  b. Submit a Qualified Show every 6 weeks.
    b. 30                                                  c. Submit a Qualified Show every 9 weeks.
    c. 45                                                  d. Submit a Qualified Show every 12 weeks.
    d. 60
                                                       6. A Qualified Show is one with a
2. There is a ___ charge per Show for the                 minimum of ___.
   Hostess Award Program.                                a. $50 in sales
    a. $3                                                b. $100 in sales
    b. $6                                                c. $150 in sales
    c. $9                                                d. $250 in sales
    d. $12
                                                       7. Shows are typically processed in _____
3. Gift certificates are available in the _____           working days.
   and _____ amounts.                                      a. Two to four
    a. $25 and $50                                         b. Two to five
    b. $50 and $100                                        c. Three to five
    c. $25 and $100                                        d. Three to six
    d. None of the above


4. What is the internet deadline for the
   business month end?
    a. Noon on Tuesday, unless a holiday
    b. Noon on Sunday, unless a holiday
    c. Noon on Monday unless a holiday
    d. None of the above




                      Answers available online in Printables in the Advisor Advantage
     5/06

						
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