Holding or Carrying Inventory FAQSUpdated 3 months ago

Holding or Carrying Inventory FAQS

Q: May Advocates hold or carry inventory for the purpose of person-to-person sales?
A: No. To ensure the proper maintenance and handling of all Crunchi products sold, maintaining and carrying product inventory is not permitted. Crunchi permits person-to-person sales with orders transmitting through the Advocate’s replicated website

Q: Why is this policy in place?
A: To protect the integrity of the products and also the Advocates promoting them. Many direct- selling companies encourage or require you to carry inventory, which means the promoters of that company become the warehouse! Think of the cost, responsibility, and risk involved in an inventory-based business. Unlike this model, Crunchi Advocates are encouraged to hold only enough products for themselves and to sample out to potential Clients/Advocates. This means you have all of the benefits of promoting and selling a product without the risk and personal investment of mass inventory. Simply send them to your replicated website to order and our team handles the rest! No handling, wrapping, boxing, shipping, or (in some cases) returning on your part involved! Returning? Well, our P&P doesn’t support cash and carry sales. Therefore, if you were to sell an item on hand to someone else, we would be unable to cover this under our Return Policy in the event they wanted to exchange it for another item. Leaving you on the hook for the return or exchange. Making this policy is a win-win for all parties involved.

Q: But what if I own a brick-and-mortar store and want to sell Crunchi directly from there? Is this permitted?
A: No. Our core business is our Advocate Program and we currently do not offer a wholesale option. If a business desires to sign up as an Advocate, they are welcome to do so! However, they would follow the same rules/guidelines as any other Advocate, and inventory for cash and carry sales is still not permitted. Simply put, our product is designed to be shared person to person, through education and the individualized care of an Advocate.

Q: If I own a brick-and-mortar store and would like to display Crunchi for sampling purposes only, is this permitted?
A: Yes. Order/ Enrollment Incentivizing & Giveaways/Promotional Gifts

Q: Is the $100 Promotional Gift (Giveaways) limit referring to what the Advocate paid for the giveaway item or the value of the item itself? For example, if I wanted to give away a designer bag that I received as a gift (so no cost to me personally) with a Crunchi Lip Oil - since the bag was given at no cost to me and the Lip Oil is under the $100 limit, is this compliant?
A: The giveaway cap is on a $100 value - not $100 in cost to you. In the example above, the only way it would remain compliant was if the bag that you received for free was within the $100 value limit when combined with the Lip Oil.

Q: Why is there a limit to the value of a single Crunchi giveaway?
A: Simply put, to create an even playing field for our Advocate Community. If Advocate Suzy has an unlimited bank account and can offer a $500 giveaway, but Advocate Mary cannot, then Advocate Suzy has an unfair advantage. Placing a limit on the single giveaway amount, levels the playing field and ensures that Advocates are focusing on what truly matters - promoting our amazing product(s) which is a selling point in and of itself!

Q: Are Advocates allowed to offer a public-facing giveaway?
A: This answer is a yes/no - depending on the scenario. All giveaways not related to the growth of your network, must be held in a private setting and advertised on a private platform. BUT - a giveaway may be held on a public platform if it is related to the growth of your network and a disclaimer to your public post must be added stating, “Only those not currently working with or tied to another Advocate are eligible to win”. This ensures that the offer of the promotional gift does not encourage Client hopping or an unfair advantage. See Section 3.6 for complete details.

Example of a promotional gift/ giveaway that is compliant: Suzy has a public IG page and wants to grow her following. She makes a post that says, “Comment below and tag a clean beauty lover that you think should follow my page. All new followers/taggers will be entered to win a Powerlight Eye Cream” - Then she adds the disclaimer that the winner cannot work with another Advocate to win. Related to growing network Disclaimer added Value under $100

Q: Are Advocates allowed to promote their Crunchi promotional gift/giveaway (that is not related to their following growth) on a public platform so long as the giveaway itself is handled in a private group or setting?
A: No. They must be promoted and held in a private group or setting.

Q: What about the Host Rewards Program? May I share these perks on a public platform?
A: Yes! The Host Rewards Program is available to all Advocates to utilize and attract new Hosts/Clients.

Q: Am I allowed to give away a Crunchi product with a non-Crunchi product?
A: Yes - But we recommend you choose carefully and only give away an item that we do not carry and aligns with our Clean Beauty philosophies.

Q: What about personal pages that are not related to Crunchi or used to grow my Crunchi business? Am I held to the promotional gift/giveaway policy guidelines?
A: If you are giving away Crunchi products, then the Crunchi policies would apply. If you are giving away non-Crunchi products in your personal pages/groups/settings unrelated to Crunchi, you are free to handle giveaways as you see fit. We do not regulate giveaways that are not related to Crunchi products or your Crunchi business.

Q: May an Advocate incentivize a Client to place an order with a promotional gift or giveaway?
A: No. Per P&P Section 3.6 Advocates may not offer a promotional gift or giveaway on any platform that directly incentivizes a Client to place an order unless that promotion is being concurrently run on crunchi.com. An example of order incentivizing would be: “Place an order today to receive a free product” or “Place an order over $150 today and I will give you XYZ free service.” Instead, Advocates are encouraged to use giveaways/promotional gifts in a way that stays in alignment with our P&P. See section 3.6 for complete details.

Q: What if the incentive I am offering is a discount and not a product/service?
A: This is still not permitted. Per P&P Section 3.5 Crunchi product pricing is determined by the corporate office. Advocates must sell Crunchi products at the pricing structure determined by Crunchi which is then current at www.crunchi.com. No Advocate, or third party, may determine pricing for any Crunchi products. In order to maintain consistency with Crunchi’s brand, pricing, marketing, and image, Crunchi products may not be offered at a percentage (%) discount, sale, promotion, bundle, at a free or similarly discounted value, on any public Crunchi forum (including all public and private social media); unless that particular offering is being held concurrently at www.crunchi.com.

Q: What if the incentive I am offering is free shipping or a free shipping credit?
A: No - this is still not permitted per Section 3.5 stated above.

Q: Why is this policy in place?
A: There are several reasons for this policy with the most obvious being that it gives an unfair advantage to the Advocate offering the discount/free shipping and it also cheapens the Crunchi brand as a whole.

Q: In any capacity, may an Advocate incentivize a new Advocate to enroll?
A: No. Per Section 2.5 Advocates may not make any monetary inducement to encourage others to join Crunchi. A new Advocate must join Crunchi as a stand-alone transaction between Crunchi and the new Advocate. This transaction will not be linked to any future performance, milestones, or promises.

Q: Why is this policy in place?
A: To protect YOU and the Advocate you are registering. Think of it this way…You spend months answering the questions of a prospective Advocate who is interested in joining your team. After investing your time, energy, and effort into this person, you find out that they decided to enroll with another Advocate, strictly because that Advocate offered to give them a $100 bonus for registering with their team. How would that make you feel? It is not only unfair to you, but it sets an unhealthy precedent for the Advocate enrolling. It may also be worth mentioning that those you have to incentivize to join, you typically have to incentivize to stay…. Joining the safe beauty movement, becoming an Advocate for change and the incredible opportunity provided through our generous Compensation Plan is a worthy enough incentive!

Q: Why did Crunchi Corporate choose $100 as the single giveaway maximum amount?
A: The single giveaway amount of $100 is in place so that Advocates may offer a giveaway using any Crunchi product. For example, under our previous policy ($50 maximum for a single giveaway) Advocates would be unable to offer Powerlight since the retail value is $58.00.

Q: Why is there a limit to the value of a single giveaway?
A: Simply put, to create an even playing field for our Advocate Community. If Advocate Suzy has an unlimited bank account and can offer a $500 giveaway, but Advocate Mary cannot, then Advocate Suzy has an unfair advantage. Placing a limit on the single giveaway amount, levels the playing field and ensures that Advocates are focusing on what truly matters - promoting our amazing product(s) which is a selling point in and of itself!

Q: Are Advocates allowed to offer a public-facing giveaway?
A: No. All giveaways/promotional gift offers must be held in a private group or setting - with the exception of Instagram for the sole purpose of growing your following/network. In those instances, Advocates must add a disclaimer to their post stating, “Only those not currently working with or tied to another Advocate are eligible to win”. This ensures that the offer of the promotional gift does not encourage Client hopping or an unfair advantage.

Q: Are Advocates allowed to promote their promotional gift/giveaway on a public platform so long as the giveaway itself is handled in a private group or setting?
A: No. They must be promoted and held in a private group or setting.

Q: May cash be given for a promotional gift/giveaway?
A: No. Cash may not be given.

Q: May Gift Cards be given for a promotional gift/giveaway?
A: Yes - under the caveat that it must be for a particular retailer and not a bank or credit card company gift card equivalent to cash.

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