Lyconet Marketer Quick Start Guide. Lyoness Loyalty Program

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Lyconet Marketer Quick Start Guide Lyoness Loyalty Program

Hello Lyconet Marketers! It is with great pleasure that we welcome you to the Merchant Loyalty Program at Lyoness. The Lyoness Loyalty Program is the number one Loyalty Rewards Program in the world and fills a desperate need for all independently-owned businesses. As Business Builders in Lyconet, you are the key to creating a local Shopping Community that will not only benefit you greatly as a Member, but will benefit the Merchants in your community as well. The power of our Network is undeniable and when harnessed and focused accordingly, we can create great change. Creating a local Shopping Community is essential to the overall success of Lyoness and to the stability of your business building efforts. We need smart, dedicated Members who are willing to take on the education and responsibility necessary to make the program an ongoing success. The Lyconet Marketer Quick Start Guide was designed to give you a brief overview of the Lyoness Loyalty Program, while providing you with the correct protocol on how to communicate with your local Merchants as well as with the SME Department. This Quick Start Guide does not take the place of formal training and we highly encourage you to take full advantage of ALL of the resources the SME Department has to offer. We wish you all the success in the world and look forward to working with you in the near future! Together We Are Strong Craig D. Shapiro SME Sales Director / US & LATAM

Independently-Owned Business Environment Overview The Problem: Independent Business Owners face a myriad of issues that impede their ability to grow and prosper. Many of these issues may be Macro in nature, meaning they are somewhat out of the Business owners control, i.e.; government regulations, rising minimum wage requirements, etc. However, the majority of the issues such businesses face are manageable and can be controlled, but they lack the time, ability, knowledge and support to do so. These Micro issues all fall under the businesses ability to advertise and market their business in a cost effective and efficient manner in a digital world. In addition, the number one reason why more than 85% of all independently owned businesses fail within their first year, is their inability to plan accordingly and their lack of CASHFLOW! The Solution: The Lyoness Loyalty Program solves all of the above Merchant problems while providing a once in a lifetime opportunity for you to build a business for yourself right in your own community. The Lyoness Loyalty Program excels in exposing the new Merchant to our Global Shopping Community and provides all the marketing tools a small business owner needs to compete with the largest companies in the world. As Lyconet Marketers, you benefit greatly as the Shopping Points created from your local community fuel your business model. Please review the Cashback Solutions Programs at www.loyaltyprogram.com. What s Next? Read this entire Lyconet Marketer Quick Start Guide and see if this is a business in which you would like to participate, and have the ability to master. This isn t about just selling a Loyalty Program to a Merchant; it s about making a commitment to your local community of Merchants and overseeing the development of a Lyoness Shopping Community. It will require time and effort but you will be rewarded for your efforts along the way. If you decide that this is for you, then we recommend becoming a Merchant Marketer. This path will not only keep you educated with all of the amazing programs that Lyoness has to offer, but will make you eligible for commissions found outside of the Lyconet Compensation Plan. If you would like to become a qualified Merchant Marketer, and you meet the minimum criteria below, please send your request for access to the additional training, to: merchantmarketertraining@gmail.com. Minimum Criteria: You must be a Lyconet Marketer You must complete the 5 Step Merchant Marketer Training available in your Member Web Office, in the Lyconet Section, under the Business Academy Additional Criteria, by Country: US you must complete our existing, updated, online Merchant Marketer Training Canada you must complete our existing, updated, online Merchant Marketer Training Mexico you must complete the existing, additional training provided by the Office in Mexico Brazil you must be a Premium Marketer and have completed the Easy Shop Plus, Mission 2

Loyalty Merchant Quick Start Guide for Lyconet Marketers It is critical for you, the Lyconet Marketer, to understand the significance of the personal responsibility you are accepting in providing ongoing training and support to assist your Merchant in becoming a successful, active member of our Loyalty Merchant Community. We provide all of the online training resources necessary for both you and your Merchants; however, it is up to you, as the local on-site representative of Lyoness, to be actively involved with all of the Merchants you enroll in Lyoness/Lyconet. I. FOUNDATION / BEFORE APPROACHING LOCAL BUSINESS OWNERS Community Focus Before you begin introducing local business owners to Lyoness, we strongly recommend that you focus on your local area (to best support a thriving merchant community). Gather a team of at least 4 5 Lyconet Builders who will work together to provide the optimal training environment for your Merchant Community. You will want your Team to be prepared to: Introduce local business owners to Lyoness as a prospective Loyalty Program. Assist interested business owners in submitting their Merchant Applications at: www.loyaltyprogram.com. Provide face to face, on-site, training for your Merchants, their staff and their customers (in addition to the online training materials our Department provides). Provide Shopping Clinics and Member/Lyconet Training Meetings at least weekly, if not multiple times each week. The most successful Merchant/Member communities are those: Which have multiple local businesses in close proximity (easy driving distance), covering a variety of Fields of Business (restaurants, grocers, dry cleaners, nail/hair salons, auto repair, services, plumbing, lawn care, home remodeling/renovation and at least one GCPOS location). Who are actively enrolling their existing customers as new Lyoness Members, and actively training and encouraging them to begin shopping through the Lyoness Loyalty Network immediately. In which the business owners begin redirecting their own business expenses through other Lyoness Loyalty Merchants to immediately begin earning Cashback and Shopping Points on those necessary business expenditures; B2B, Merchant to Merchant Referrals. Have active, local Lyoness Member/Leaders who patronize Lyoness Merchants regularly, provide on-site support, provide regular/frequent meetings to encourage the consistent, upward growth of membership, merchants, and shopping volume within their community.

II. PREPARATION SUPPORT MATERIALS Please read all of the GTC s, Merchant Terms & Conditions and the Lyconet Compensation Plan available in your Member Web Office. Participate in live Trainings, and view recorded Trainings to understand all of the tools we provide to our Loyalty Merchants (Type lyonessmerchants.com in your browser to find our Vimeo Channel with dozens of videos pertaining to our Merchant Program). One of the best ways you can support your Merchant/Member Community is by ensuring you understand Lyoness/Lyconet foundationally. In addition, please review the attached Appendices, for information specific to the Loyalty Merchant Program. Margins: The far right column of the Margin Agreement (See Below) is the Total Minimum Allowable Margin for each Industry and Sector. So, for instance, for an Auto Service Center, they would fall under Industry #4 - Car, Gas, Accessories; Sector #29 - Oil & Car Products, Car Supplies & Service; the Total Minimum Margin is 7%. In the US, you will need to ensure your merchant understands that they will be invoiced this Total Margin on the net product/service amount for every Lyoness Member transaction. So if a Lyoness Member purchases $100 worth of products/services, before taxes, tips, delivery/shipping costs are assessed, they will be paying Lyoness 7%, or $7.00 on that particular transaction. In Canada, the Total Margin is assessed to the Gross Sales Price, which includes applicable taxes. Please ensure that the business owner understands that the Total Margin includes 4 parts: Cashback, Shopping Points, Friendship Bonuses, and the amount paid to Lyoness. Industry Sector Total Margin 4 Car, Gas, Accessories 29 Oil & Car Products, Car Supplies & Service 7 Additional Margins, Program Pricing & Commissions: Below please find the full Margin Rate Sheet, Exclusion List, Program Pricing and Commission and Shopping Point Schedule associated with the Merchant Program in the US & Canada.

Industry Sector Total Margin 1 Construction, Garden, Energy 1 Hardware 7 1 Construction, Garden, Energy 2 Construction Materials 5 1 Construction, Garden, Energy 3 Pre-fabricated House 5 1 Construction, Garden, Energy 4 Construction Work, Interior Renovation 5 1 Construction, Garden, Energy 5 Heating, Air Conditioning, Plumbing 6 1 Construction, Garden, Energy 6 Electrician 6 1 Construction, Garden, Energy 7 Wood & Carpenter 6 1 Construction, Garden, Energy 8 Locksmith 6 1 Construction, Garden, Energy 9 Locksmiths 6 1 Construction, Garden, Energy 10 Building Cleaning 6 1 Construction, Garden, Energy 11 Garden, Gardening & Landscaping 7 1 Construction, Garden, Energy 12 Garden Center 7 1 Construction, Garden, Energy 13 Energy, Fuel 4 2 Furniture, Household, Decorations 14 Florist, Flower Trade 7 2 Furniture, Household, Decorations 15 Furniture, Living 7 3 Groceries 16 Catering 7 3 Groceries 17 Food Retail 7 3 Groceries 18 Baker, Confectioner 7 3 Groceries 19 Discount Supermarket 4 3 Groceries 20 Delicatessen 7 3 Groceries 21 Meat & Sausage Products 6 3 Groceries 22 Wine, Beer, Spirits 5 3 Groceries 23 Self-Marketer 7 4 Car, Gas, Accessories 24 Car Repair Shop 7 4 Car, Gas, Accessories 25 Car Dealer 4 4 Car, Gas, Accessories 26 Car Rental 5 4 Car, Gas, Accessories 27 Car Accessories 7 4 Car, Gas, Accessories 28 Driving School 7 4 Car, Gas, Accessories 29 Oil & Car Products, Car Supplies & Service 7 4 Car, Gas, Accessories 29 Gas Station, Fuel 4 5 Shopping Mall 30 Shopping Mall 5 5 Shopping Mall 31 Wholesale Stores 5 5 Shopping Mall 32 Department Store 5 6 Electronics, Photography, Mobile Phone 33 Photography Trade 7 6 Electronics, Photography, Mobile Phone 34 Photography & Development 7 6 Electronics, Photography, Mobile Phone 35 Camera & Accessories 7 6 Electronics, Photography, Mobile Phone 36 Computer Service, IT Service 7 6 Electronics, Photography, Mobile Phone 37 Computer, Notebook, Accessories 6 6 Electronics, Photography, Mobile Phone 38 Software Development 6 6 Electronics, Photography, Mobile Phone 39 Software Trade 6 6 Electronics, Photography, Mobile Phone 40 Provider 6 6 Electronics, Photography, Mobile Phone 41 Telephone, Mobile Phone & Accessories 6 Total Margin offered cannot exceed 30% * Total Margin % includes Cash Back, Friendship Bonus, Shopping Points & Marketing % to Lyoness

6 Electronics, Photography, Mobile Phone 42 Audio/Video Store, MP3 Download, CD, DVD 6 6 Electronics, Photography, Mobile Phone 43 Repair, Service, Satellite TV, Installation 7 7 Health & Beauty 44 Eyeglasses, Contacts, Optics, Hearing Aids 7 7 Health & Beauty 45 Drugstore & Household Items 7 7 Health & Beauty 46 Beauty Salon, Hairdresser, Massage Therapist 9 7 Health & Beauty 47 Pharmacy (Rx prescriptions) 6 7 Health & Beauty 48 Doctor, Therapist 9 8 Clothing, Shoes, Accessories 49 Men, Women, Baby, Toddler 7 8 Clothing, Shoes, Accessories 50 Tailoring 7 8 Clothing, Shoes, Accessories 51 Shoe Store 7 8 Clothing, Shoes, Accessories 52 Shoe Maker 7 8 Clothing, Shoes, Accessories 53 Watches, Jewelry Trade 7 9 Travel, Transport, Taxi 54 Travel Agency, Taxi 5 9 Travel, Transport, Taxi 55 Travel Equipment 7 10 Hobby, Leisure, Sports 56 Toys 7 10 Hobby, Leisure, Sports 57 Hobby & Craft Supplies 7 10 Hobby, Leisure, Sports 58 Library, News Agents 7 10 Hobby, Leisure, Sports 59 Bookbinder 8 10 Hobby, Leisure, Sports 60 Gift Shop 7 10 Hobby, Leisure, Sports 61 Gyms 7 10 Hobby, Leisure, Sports 62 Sports Store 7 10 Hobby, Leisure, Sports 63 Veterinarian 9 10 Hobby, Leisure, Sports 64 Pet Shops, Accessories, Pet Food 6 10 Hobby, Leisure, Sports 65 Instrument Manufacturing 9 10 Hobby, Leisure, Sports 66 Piano Tuners 9 10 Hobby, Leisure, Sports 67 Musical Instrument Retail 9 11 Entertainment 68 Events & Outdoor Events 7 11 Entertainment 69 Catering 7 11 Entertainment 70 Ticket Service 7 11 Entertainment 71 Museums, Zoos 7 11 Entertainment 72 Art & Antiques 11 12 Restaurant, Catering, Hotel 73 Restaurant, Café, Bars 7 12 Restaurant, Catering, Hotel 74 Restaurant & Catering Supplies 6 12 Restaurant, Catering, Hotel 75 Hotels & Accommodations 7 13 Office & School Supplies 76 Office & School Supplies 6 14 Baby, Toddler 77 Baby, Toddler 7 15 Other Services 78 Tutoring, Teaching & Education 7 15 Other Services 79 Rent & Rentals 9 15 Other Services 80 Tax Services & Accounting 10 15 Other Services 82 Management Consultant 10 15 Other Services 83 Cleaning Service 7 15 Other Services 84 Agricultural Technology 7 Total Margin offered cannot exceed 30% * Total Margin % includes Cash Back, Friendship Bonus, Shopping Points & Marketing % to Lyon

* INDUSTRIES / CATEGORIES AND COMPANIES EXCLUDED IN THE MERCHANT PROGRAM Liquor Stores (Convenience Stores are okay) Real Estate (Property Management is okay) Insurance Companies Dispensaries (Drug Related Stores) Any paraphernalia related items including but not limited to; tools, equipment and/or growth of drugs Adult Entertainment Guns or Weapons Tattoo Shops Smoke Shops (E-Cigarettes/Vapor & Cigar Stores only are okay) MLM s (Direct Sales Marketing Companies) Motivational Speakers Lease/Leasing Companies Chamber of Commerce/Government Organizations Non-Profit Funeral Homes Casinos Lyoness Corporate policy prohibits the companies or industries listed above to be accepted as Lyoness Loyalty Merchants in the SME Program.