The approved financial model
$1 in eligible net merchandise spend = 5 points. Each point is worth $0.01. Members therefore earn rewards equal to 5% of eligible spend. Redemptions are limited to 10% of the eligible merchandise subtotal and cannot be stacked with another discount.
Prepared for Billionaire Hair LLC
Public brand: Billionaire Hair Society
Version 1.0 • September 2026
This document is the launch-ready operating policy for the customer loyalty program. Public-facing terms should be reviewed by qualified counsel before publication and adjusted to the final capabilities of the selected loyalty platform.
PROGRAM MAP
What this document controls
Section Area Purpose
1. Program decision summary Purpose, economics and launch decisions
2. Points and rewards Earning value, reward discounts and examples
3. Bonus earning Account, birthday, reviews and referrals
4. Customer rules Eligibility, posting, expiration and redemption
5. Discount interaction Bundle, signup, Wait & Save and promotions
6. Ambassador interaction Separate ledgers, tracking and commission
7. Public program terms Customer-facing rules and legal safeguards
8. Internal procedures Daily administration and exception handling
9. Fraud and controls Abuse prevention, audit trail and enforcement
10. Website requirements Member experience and developer checklist
11. Reporting and launch KPIs, reconciliation and go-live testing
Launch recommendation
Launch one customer earning level first. Do not add customer status tiers at launch. The existing points system already provides a clear 5% value, while tiered percentage discounts would create unnecessary stacking pressure beside BHS bundle offers, Wait & Save, referrals and ambassador commissions.
1. PROGRAM DECISION SUMMARY
Program purpose and approved structure
The customer loyalty program rewards legitimate repeat purchasing and qualified customer engagement while protecting BHS margins and the premium value of the brand. Enrollment is free and tied to one verified customer account.
Decision BHS rule
Base earning $1 of eligible net merchandise spend = 5 points
Point value 1 point = $0.01; 100 points = $1
Effective earn rate 5% of eligible net merchandise spend
Reward use One reward per order; maximum 10% of eligible merchandise subtotal
Posting Pending after purchase; available 30 days after delivery
Expiration 12 months after the member’s last qualifying purchase or point-earning activity
Stacking No loyalty reward may be combined with another BHS discount or offer
Ambassador separation Customer and ambassador points remain in separate ledgers
Administration Billionaire Hair LLC may review, adjust, suspend or terminate accounts under these rules
Financial guardrails
• Base points create a maximum face-value liability of 5% of eligible net merchandise revenue.
• Minimum order thresholds limit any loyalty redemption to 10% of the eligible merchandise subtotal.
• Points are earned after discounts and after any loyalty reward is applied—not on the original retail price.
• Taxes, shipping, package protection, gift cards, tips, fees and non-merchandise charges do not earn points and cannot be paid with points.
• Points do not become available until the delivery and 30-day lock period has passed.
• Returns, cancellations, refunds, chargebacks and fraudulent orders reverse the related points.
• Bonus points have fixed values, validation conditions and frequency caps.
2. POINTS AND REWARDS
How customers earn
Core formula
Eligible points = floor(eligible net merchandise subtotal × 5). Fractions are rounded down to the nearest whole point.
The eligible net merchandise subtotal is the price of qualifying products after all discounts and loyalty redemptions, excluding taxes, shipping, package protection, gift cards and other excluded charges.
Reward discounts
Points redeemed | Discount Minimum eligible subtotal | Maximum effective discount
500 points $5 off $50 10%
1,000 points $10 off $100 10%
2,500 points $25 off $250 10%
5,000 points $50 off $500 10%
10,000 points $100 off $1,000 10%
BHS should display these as exact reward cards. Customers do not convert arbitrary point amounts into cash. They select one listed reward when they meet both the point balance and minimum eligible subtotal.
Math examples
Scenario | Calculation Result
$500 eligible order $500 × 5 2,500 points = $25 future value
$300 order using $25 reward ($300 − $25) × 5 1,375 new points; customer pays $275 before tax/shipping
$325 order with 10% bundle savings $292.50 × 5 1,462 points after rounding down
$249 eligible subtotal $249 × 5 1,245 points; $25 reward is not eligible because minimum is $250
Why the math works
A customer earns $5 in value for each $100 of eligible spend. When redeeming, the order minimum keeps the reward at 10% or less. The program therefore feels meaningful without turning every order into a double-discounted sale.
3. BONUS EARNING
Approved bonus-point schedule
Action | Points | Value | Control
Create account + verify email 250 $2.50 Once per person; not redeemable until first completed qualifying purchase
Birthday 500 $5.00 Once per 12 months; account 30+ days old and one prior completed purchase
Verified written review 100 $1.00 One review reward per eligible order
Verified photo review 250 $2.50 Original usable photo; replaces written-only reward
Verified video review 500 $5.00 Original usable video; replaces other review rewards
Successful customer referral 2,500 $25.00 Awarded after the referred order is delivered and clears the 30-day lock
Review rules
• Rewards are offered for an honest review—not for a positive review.
• The order must be verified and the submission must relate to the purchased product.
• Only the highest eligible review reward is issued per order; written, photo and video bonuses do not stack.
• Content must be original, lawful and free of third-party rights violations.
• BHS may moderate spam, harassment, unrelated content, private information and unsupported claims.
• Reuse of customer photos or videos in marketing requires the content permission presented at submission.
Referral offer
Participant | Benefit | Condition
Referred customer 10% off first qualifying order $200 minimum eligible subtotal; new BHS customer; one use
Referring customer 2,500 points ($25 value) Order delivered, paid and outside the 30-day lock
• A successful referral is a new customer who uses the unique customer referral link or code, places a qualifying paid order, receives it and clears the lock period without refund, chargeback or fraud flag.
• Limit five referral bonuses per referring member per calendar month unless BHS approves a special campaign in writing.
• Self-referrals and referrals involving the same person, household, address, device, payment method or controlled account may be rejected after review.
• A customer referral and an ambassador attribution cannot apply to the same order. The valid tracking source recorded at checkout controls.
4. CUSTOMER RULES
Eligibility and enrollment
• Enrollment is free. Members must be at least 18 years old or the age of majority in their jurisdiction.
• One loyalty account is permitted per person. A valid email address and accurate account information are required.
• Accounts, points and rewards are personal, nontransferable and have no cash value.
• Wholesale, employee, test, complimentary, fraudulent and other excluded accounts or orders do not participate unless BHS approves them in writing.
• Members are responsible for protecting their login credentials and promptly reporting suspected unauthorized access.
Point status and timing
Status | Meaning Customer view
Pending Qualifying order placed and paid, but not past the return/chargeback lock Visible but not redeemable
Available Order delivered and 30-day lock completed May be used subject to all rules
Redeemed Points exchanged for a reward and applied to an order Removed from available balance
Reversed Related transaction canceled, returned, refunded, charged back or determined ineligible Removed; account may become negative
Expired No qualifying purchase or earning activity for 12 months Removed permanently unless required otherwise by law
Missing points and adjustments
• Members must submit a missing-points request within 60 days of the applicable purchase or activity.
• The request must include the account email, order number and supporting information requested by BHS.
• BHS will normally respond within five business days; complex fraud or payment reviews may take longer.
• Manual point adjustments are documented in the account history and may be corrected if issued in error.
Expiration notice
Points expire after 12 months without a qualifying purchase or point-earning activity. BHS should send a reminder approximately 30 days before expiration when the platform supports it. Marketing-email opt-out does not prevent essential account or expiration notices where permitted.
5. DISCOUNT INTERACTION
One offer per order
A customer may use one BHS discount, reward or promotional offer per order. If more than one offer is available, the customer may choose the eligible offer that provides the best value. The website must not automatically layer offers.
Offer or order type | Stacks with loyalty reward? | Points treatment
Loyalty reward No Earn points on net merchandise paid after the reward
3+ bundle savings — 10% No Customer earns points on the discounted merchandise subtotal
Wait & Save — 20% No Customer earns points on the discounted merchandise subtotal
Email signup — 15% first order No Customer earns points on the discounted merchandise subtotal
Customer referral — 10% No Customer earns points on the discounted merchandise subtotal
Ambassador code/link No additional customer offer unless expressly configured Customer earns normal points on eligible net merchandise; ambassador compensation follows handbook
Sale/clearance/promotion No Points may be earned unless the campaign states otherwise
Gift card purchase Not eligible No points on purchase; points may be earned when gift card is used on eligible merchandise
Reward-code rules
• Only one loyalty reward may be applied to one order.
• A generated reward code expires 60 days after issue unless the customer returns it to the point balance before use and the platform supports that function.
• A reward cannot reduce the eligible merchandise subtotal below the minimum required for that reward.
• Rewards cannot be applied after an order is submitted, to a prior purchase, to cash, or to excluded charges.
• If BHS cancels an order, redeemed points are returned. If the customer cancels or returns an order, points are returned only after the full resolution is processed and subject to the return policy.
6. AMBASSADOR INTERACTION
Same math, separate ledgers
Non-negotiable system rule
Customer loyalty points and ambassador advancement points use the same $1 = 5 points calculation, but they remain separate balances with separate purposes. Neither balance converts into the other.
Event | Customer account | Ambassador account
Customer order through valid ambassador attribution Earns 5 customer points per $1 of eligible net merchandise Earns 5 ambassador points per $1 of attributable net merchandise plus applicable commission
Ambassador’s legitimate personal purchase May earn normal customer points No self-referral commission and no ambassador sales points
Customer loyalty redemption on attributed order Uses customer points; earns new points on remaining net merchandise Commission and ambassador points calculate on net eligible merchandise after the customer reward
Customer referral order May generate customer referral benefits Does not also generate ambassador credit unless the order was validly attributed under the ambassador program instead
Return/refund/chargeback Customer points reversed Ambassador points and commission reversed under handbook
Commission example
A new customer places a $500 eligible merchandise order through a valid Boss Ambassador link with no other discount:
• Customer ledger: 2,500 pending customer points, later worth $25 when available.
• Ambassador ledger: 2,500 pending ambassador points.
• Boss Ambassador first-purchase commission: 20% × $500 = $100, subject to the handbook’s validation and payout rules.
• If the same customer later places a $500 return purchase through valid attribution, the Boss Ambassador returning-customer commission is 10% × $500 = $50.
Required technical controls
• Customer account ID and ambassador ID must be different system fields.
• The order record must retain the source link/code, discount, eligible net merchandise, customer points, ambassador points and commission basis.
• Self-referral screening must compare customer and ambassador names, emails, phones, addresses, devices and payment methods where lawfully available.
• Customer referral tracking and ambassador tracking must have a documented precedence rule. The valid source recorded at checkout controls; support may not reassign attribution without documented evidence and approval.
7. PUBLIC PROGRAM TERMS
Customer-facing terms and conditions
The following is the approved working language for publication after platform alignment and legal review.
Program sponsor. The customer loyalty program is offered by Billionaire Hair LLC, operating publicly as Billionaire Hair Society (“BHS,” “we,” “us” or “our”).
Acceptance. By enrolling, earning or redeeming points, a member agrees to these terms, the BHS website Terms of Service, Privacy Policy, shipping and return policies, and any offer-specific terms.
Eligibility. The program is open to eligible individual consumers age 18 or older. Enrollment is free, limited to one account per person and may not be used for commercial resale or unauthorized purposes.
Earning. Members earn five points for each whole dollar of eligible net merchandise spend. Points are calculated after discounts and redemptions and exclude taxes, shipping, package protection, gift cards, fees and other excluded charges. Fractional points are rounded down.
Availability. Purchase points remain pending until the order is delivered and a 30-day validation period has passed. BHS may delay or deny points while reviewing payment, return, fraud, attribution or eligibility concerns.
Rewards. Available points may be exchanged only for the reward discounts displayed in the member account. Each reward requires the stated minimum eligible merchandise subtotal. One reward may be used per order and may not be combined with another discount or offer.
Expiration. Points expire after 12 months without a qualifying purchase or point-earning activity, unless applicable law requires otherwise. Issued reward codes expire after 60 days unless the displayed reward states another date.
Returns and reversals. Points related to canceled, returned, refunded, disputed, charged-back, fraudulent or otherwise ineligible transactions may be canceled or reversed. A negative balance may remain if points were already used.
No property or cash value. Points and rewards are promotional, have no cash value, cannot be sold, transferred, assigned or exchanged for cash, and do not constitute property except where applicable law provides otherwise.
Account security. Members are responsible for keeping credentials secure and maintaining accurate information. BHS is not responsible for unauthorized use caused by a member’s failure to protect account access, subject to applicable law.
Abuse. BHS may combine duplicate accounts, withhold benefits, reverse points, suspend or close accounts, cancel orders, or prohibit participation when it reasonably believes fraud, manipulation, resale, self-referral, harassment or policy abuse occurred.
Communications and privacy. Program administration uses account and transaction information as described in the BHS Privacy Policy. Operational messages about balances, rewards, security, changes or expiration may be sent separately from marketing messages where permitted.
Changes or termination. BHS may modify, suspend or end the program, rewards, earning rates, exclusions or these terms. Reasonable notice will be provided when practical and as required by law. Continued participation after the effective date constitutes acceptance of updated terms.
Errors. BHS may correct administrative, pricing, posting or technical errors and may adjust balances accordingly. The BHS records of points and rewards control unless the member provides satisfactory evidence of an error.
Liability and law. Any limitation of liability, dispute resolution, governing law or arbitration terms applicable to the program must match the final BHS Terms of Service and applicable consumer law. Those provisions should not be published until reviewed by qualified counsel.
Contact. Questions or missing-points requests should be submitted through the customer-support method published on BillionaireHairSociety.com and should include the member email and applicable order number.
8. INTERNAL PROCEDURES
Daily operating procedure
Procedure | Required action
Enrollment Create or confirm one customer profile; verify email; block duplicate-account bonus; award 250 pending bonus points; require first completed purchase before redemption.
Purchase earning Capture eligible net merchandise after discount; multiply by five; round down; post as pending; store order ID and calculation basis.
Point release Confirm delivered status; wait 30 days; verify no cancel, refund, return, chargeback or fraud hold; move qualifying points from pending to available.
Reward redemption Confirm available balance, eligible products, order minimum and no conflicting offer; subtract points; apply exact reward value; earn new points only on remaining eligible merchandise.
Referral validation Confirm unique new customer, valid source tracking, $200 minimum, delivery, 30-day lock and no prohibited relationship or duplicate attribution; then issue 2,500 points.
Review bonus Confirm verified order and original relevant content; approve only the highest applicable review bonus; record content-permission status separately.
Return/refund Reverse points tied to refunded merchandise; cancel pending referral/review bonuses when applicable; restore redeemed points only under the approved return-resolution rule.
Missing points Open case; verify order/activity and account identity; check exclusions and lock; correct when proven; reply within five business days when practical.
Fraud review Place points and rewards on hold; preserve evidence; compare related accounts and payment/order signals; document decision; notify customer without disclosing sensitive controls.
Account closure Confirm identity and applicable legal requirements; prevent future earning; handle remaining points according to these terms and applicable law; retain required business records.
Manual-adjustment authority
Adjustment | Approval
1–500 points Authorized customer-support lead; reason and evidence required
501–2,500 points Customer-experience manager approval
More than 2,500 points Owner or designated executive approval
Any fraud reversal or negative-balance waiver Manager plus owner/designated executive approval.
9. FRAUD AND CONTROLS
Controls BHS must maintain
• Unique member ID, verified email and one-account-per-person rule.
• Immutable transaction log showing point source, order ID, date, status, adjustment reason and staff user.
• Automated reversals connected to Shopify cancellations, refunds and returns.
• 30-day pending period for purchases and successful-referral awards.
• Duplicate-account and self-referral screening using lawfully available identity, address, device and payment signals.
• Velocity alerts for repeated signups, referrals, reviews, reward generation or address/payment reuse.
• Role-based staff access and two-level approval for high-value manual changes.
• Monthly reconciliation of loyalty records to order, refund and chargeback records.
• Documented customer appeal route and consistent enforcement notes.
Enforcement ladder
Level | Trigger | Action
1 — Correction Clear system or staff error Correct balance; document cause; notify member
2 — Hold Unusual activity needing review Pause redemption and bonus release while investigating
3 — Reversal Ineligible, refunded or unsupported activity Remove related points/reward; explain applicable rule
4 — Suspension Repeated or material policy violation Freeze account and benefits pending final review
5 — Termination Fraud, manipulation, threats, resale or severe abuse Close account, forfeit benefits where lawful and preserve records
Consistency standard
Similar cases should receive similar outcomes. BHS staff must document the rule applied, evidence reviewed, person approving the decision and customer communication.
10 • WEBSITE AND DEVELOPER REQUIREMENTS
Customer experience
• Join and sign-in controls available from the loyalty page and customer account.
• Plain-language three-step explanation: join, earn, redeem.
• Visible balance separated into pending, available, redeemed and expiring points.
• Exact reward cards showing points, dollar value and minimum subtotal.
• Ways-to-earn area with validation conditions—not just point amounts.
• Personal referral link/code, referred-customer offer and successful-referral definition.
• Transaction history showing date, source, status, points and related order.
• Expiration date or inactivity warning and automated 30-day notice when supported.
• Terms link, privacy link, support contact and current effective date.
Commerce and integration logic
Function | Required logic
Earn basis Net eligible merchandise after all discounts and rewards
Rounding Floor to whole points
Order status Pending at payment; available 30 days after delivery
Redemption Fixed reward choices; one per order; threshold enforced
Stacking Reject loyalty reward when any conflicting offer is active
Refund Proportional point reversal tied to refunded eligible merchandise
Attribution Retain customer referral and ambassador source; one source controls
Ledger Customer and ambassador points stored and reported separately
Admin Manual adjustment, reason codes, notes, approval and audit export
Required customer copy
Display this statement near the reward cards:
Earn 5 points for every $1 spent
100 points = $1 in reward value. Points are based on eligible merchandise after discounts. Rewards require a minimum purchase, one reward may be used per order, and rewards cannot be combined with another offer.
11 • REPORTING, LAUNCH AND OWNERSHIP
Monthly management report
Metric | Why BHS tracks it
Eligible net sales / Denominator for program cost and point issuance
Points issued / value Current promotional liability created
Points redeemed / value Actual discount cost recognized
Outstanding available points / Future expected discount exposure
Redemption rate / Whether members understand and use rewards
Repeat purchase rate / Whether the program improves retention
Average order value / Whether rewards support healthy baskets
Referral orders and cost / Acquisition value versus 10% + $25 incentive
Returns/chargebacks / Quality and fraud signal
Manual adjustments and exceptions / Control quality and staff consistency
Quarterly financial review
• Confirm base point face value remains at or below 5% of eligible net sales.
• Measure actual redemption expense, outstanding liability and breakage.
• Compare referral incentive cost with acquired customer gross margin and repeat behavior.
• Review discount stacking errors and attributed ambassador orders.
• Adjust only prospectively; publish effective dates and do not silently change earned balances.
Ownership
Owner | Responsibility
BHS owner/designated executive / Approves economics, exceptions, suspension/termination and material rule changes
Customer-experience lead / Runs daily support, adjustments, reviews and customer communication
Finance/operations / Reconciles liability, refunds, referral cost and reporting
Developer/platform administrator / Implements calculation, status, discount, integration and audit logic
Legal/privacy reviewer / Reviews public terms, privacy, dispute provisions and jurisdiction-specific requirements