I put the papers and previews into the main folder. All elements go into one element folder within the kit. Most add ons (cards, word strips, alphas etc) go into their own folder, too. Once in a while I'll put word strips or paint in the main element folder rather than in its own. The one exception to my method is megacollabs where every designer does their own preview. Then papers go into a paper folder and only the previews are in the main kit folder.
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