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AUSTRALIA & NEW ZEALAND BUSINESS MANUAL

BUSINESS MANUAL - media.amway.com.au · Your Gross Income Per Month = $192 Your Gross Income Per Year (12 x $192) = $2,304 1 Not every IBO will sponsor 4 IBO. Some will sponsor more,

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Page 1: BUSINESS MANUAL - media.amway.com.au · Your Gross Income Per Month = $192 Your Gross Income Per Year (12 x $192) = $2,304 1 Not every IBO will sponsor 4 IBO. Some will sponsor more,

AUSTRALIA & NEW ZEALAND

BUSINESS MANUAL

Page 2: BUSINESS MANUAL - media.amway.com.au · Your Gross Income Per Month = $192 Your Gross Income Per Year (12 x $192) = $2,304 1 Not every IBO will sponsor 4 IBO. Some will sponsor more,

CONTENTSSTARTING OUT, SPONSORING & DUPLICATION 4

RECOGNITION LEVELS 6

AWARDS & REWARDS 8

TYPES OF BONUSES 10

FINANCIAL FREEDOM 14

INTERNATIONAL SPONSORING 15

YOU ARE SUPPORTED 20

Page 3: BUSINESS MANUAL - media.amway.com.au · Your Gross Income Per Month = $192 Your Gross Income Per Year (12 x $192) = $2,304 1 Not every IBO will sponsor 4 IBO. Some will sponsor more,

FREEDOMFAMILYHOPE

REWARDOUR INSPIRATION, MOTIVATION,

AND FOUNDATION.

FREEDOM To own your own business,

work hard and grow.

FAMILY Our essential support

and encouragement.

HOPE For all to have personal

and professional success.

REWARD

For achieving success – and

helping others do the same.

Page 4: BUSINESS MANUAL - media.amway.com.au · Your Gross Income Per Month = $192 Your Gross Income Per Year (12 x $192) = $2,304 1 Not every IBO will sponsor 4 IBO. Some will sponsor more,

Starting OutExample 1 Assuming your monthly personal PV

is 100 of which your immediate gross

income would accumulate as follows:

30% Retail Profit on 400 BV = $120

3% Performance Bonus on 400 BV = $12

Your Gross Income Per Month = $132

Your Gross Income Per Year (12 x $132) = $1,584

Grow Through SponsoringYou can expand your business by sponsoring others.

Let’s assume that you sponsor 4 other IBOs1, each of

whom generates 100 personal PV in a month, while you continue

to do 100 personal PV a month. Your income

could be as follows:

Example 3

Your total monthly Group PV at 500 GPV

6% Performance Bonus on personal BV (400BV X 6%)

= $24

Differential Bonuses from downlines (400BV x 3% x 4)

= $48

Total Bonus You Earn = $72

30% Retail Profit on 400 BV = $120

Your Gross Income Per Month = $192

Your Gross Income Per Year (12 x $192) = $2,304

1 Not every IBO will sponsor 4 IBO. Some will sponsor more, some will sponsor fewer, depending upon time and effort spent on building the business. The numbers used are simply to show you how the Amway Sales & Marketing Plan works and how income is calculated.

Example 2Assuming your monthly personal PV

increases to 200, your gross income

would rise accordingly:

30% Retail Profit on 800 BV = $240

3% Performance Bonus on 800 BV = $24

Your Gross Income Per Month = $264

Your Gross Income Per Year (12 x $132) = $3,166

Grow Through DuplicationYour business continues to grow as your IBOs follow

your example and begin sponsoring their own IBOs.

Let’s say that all 4 IBOs continue to do 100 PV

a month and they each sponsor four IBOs of his

own who likewise do 100 PV a month. The total PV for

each group would be 500. If you continue to personally

generate 100 PV a month, your income could be as follows:

Example 4

Your total monthly Group PV at 2100 GPV

12% Performance Bonus on personal BV (400BV X 12%)

= $48

Differential Bonuses from downlines (2000BV x 6% x 4)

= $480

Total Bonus You Earn = $528

30% Retail Profit on 400 BV = $120

Your Gross Income Per Month = $648

Your Gross Income Per Year (12 x $648) = $7,776

YourSponsor

You 100 PV

100 PV 100 PV

100 PV 100 PV

You 100 PV

YourSponsor

You 100 PV

100 PV 100 PV

100 PV 100 PV

You 100 PV

X4 100 PV

X4 100 PV

X4 100 PV

X4 100 PV

Page 5: BUSINESS MANUAL - media.amway.com.au · Your Gross Income Per Month = $192 Your Gross Income Per Year (12 x $192) = $2,304 1 Not every IBO will sponsor 4 IBO. Some will sponsor more,

THE Amway® SALES & MARKETING PLAN

RECOGNITION LEVELSLevels of Achievement

To recognise and reward the achievements of IBOs, Amway has an extensive awards and bonus/rebate system. Pins are awarded in

honour of business-building achievements. At many levels, cash bonuses, rebates and other rewards are awarded.

To be eligible for these bonuses and awards, an IBO must be in compliance with all of the provisions of the Amway Rules of

Conduct. All award qualifications are subject to verification and review before any recognition.

Bronze Silver Gold

Platinum FoundersPlatinum

Ruby Founders Ruby

Sapphire FoundersSapphire

Emerald Founders Emerald

DiamondFoundersDiamond Executive

DiamondFounders

Executive DiamondDouble

DiamondFounders

Double Diamond

TripleDiamond

FoundersCrown Ambassador

Crown FoundersCrown Crown

Ambassador

Founders Triple Diamond

Page 6: BUSINESS MANUAL - media.amway.com.au · Your Gross Income Per Month = $192 Your Gross Income Per Year (12 x $192) = $2,304 1 Not every IBO will sponsor 4 IBO. Some will sponsor more,

Level Pin Requirements

Bonus Qualification Exclusive Business Invitation

Performance Bonus

Leadership/ Foster Bonus

Ruby Bonus*

Monthly Depth Bonus

Emerald Bonus

Diamond Bonus

Diamond Plus Bonus

FAA OTCANew Platinum

SeminarAmway

AchieversFounders Council***

BRONZE 15% Bonus/Rebate with at least 3 x 6% bonus/rebate

legs plus 100ppv •SILVER PRODUCER 1 Silver Producer month • • •GOLD PRODUCER 3 Silver Producer months • • •PLATINUM 6 Silver Producer months • • • • •RUBY 2 x Maximum Performance

Bonus, 1 month • • • •FOUNDERS PLATINUM 12 Silver Producer months • • • •FOUNDERS RUBY 2 x Maximum Performance

Bonus, 12 months • • • •SAPPHIRE 2 Q plus 15% - 6 months • • • •FOUNDERS SAPPHIRE 2 Q plus 15% - 12 months • • • •EMERALD 3 Q6 Legs • • • • • •FOUNDERS EMERALD 3 Q12 Legs • • • • • •DIAMOND 6 Q6 Legs • • • • • • • •FOUNDERS DIAMOND 6 Q12 Legs or 8 FAA points • • • • • • • •

EXECUTIVE DIAMOND

9 Q6 Legs or 10 FAA points or minimum Founders

Diamond qualification with at least 1 x Founders Platinum

in each Q12 leg together with a minimum of

10 qualification credits

• • • • • • • • •

FOUNDERS EXECUTIVE DIAMOND

9 Q12 Legs or 12 FAA points or minimum Founders

Diamond qualification with at least 1 x Founders Platinum

in at least 8 x Q12s leg together with a minimum of

16 qualification credits

• • • • • • • • •

DOUBLE DIAMOND

12 Q6 Legs or 14 FAA points or minimum Founders

Diamond qualification with at least 1 x Founders Platinum in at least 8 x Q12 legs together

with a minimum of 25 qualification credits

• • • • • • • • • •

AWARDS & REWARDS• 1st time Platinum qualification

can be qualified by rolling 12 months with 3 months are consecutive.

• Platinum Requalification are any 6 months within Performance year.

• Founders Platinum and above qualification are qualifying within Performance Year.

• All Founders qualifications can be qualified through Volume Equivalency (VE).

• Emerald and Founders Emerald qualifications can be achieved by local and international legs. Diamonds and above qualification can be achieved by local and international legs, with at least 3 local legs as the base (must be EBR).

• Emerald bonus/rebate must be an Emerald Bonus Recipient (EBR) with at least qualified 3 local legs.

• Diamond bonus/rebate must be an Diamond Bonus Recipient (DBR) with at least qualified 6 local legs.

• Diamond Plus bonus/rebate must be an Diamond Bonus Recipient (DBR) with at least qualified 7 local legs.

• FAA must be a Diamond Bonus Recipient in at least one market, have four in-market Founders Platinum legs under their #1 and #2 businesses and have earned a minimum of 20 FAA points on a global basis.

Page 7: BUSINESS MANUAL - media.amway.com.au · Your Gross Income Per Month = $192 Your Gross Income Per Year (12 x $192) = $2,304 1 Not every IBO will sponsor 4 IBO. Some will sponsor more,

Level Pin Requirements

Bonus Qualification Exclusive Business Invitation

Performance Bonus

Leadership/ Foster Bonus

Ruby Bonus*

Monthly Depth Bonus

Emerald Bonus

Diamond Bonus

Diamond Plus Bonus

FAA OTCANew Platinum

SeminarAmway

AchieversFounders Council***

FOUNDERS DOUBLE DIAMOND

12 Q12 Legs or 16 FAA points or minimum Founders

Diamond qualification with at least 1 x Founders Platinum in at least 8 x Q12 legs together

with a minimum of 34 qualification credits

• • • • • • • • • •

TRIPLE DIAMOND

15 Q6 Legs or 18 FAA points or minimum Founders

Diamond qualification with at least 1 x Founders Platinum

in at least 10 x Q12 legs together with a minimum of

43 qualification credits

• • • • • • • • • •

FOUNDERS TRIPLE DIAMOND

15 Q12 Legs or 20 FAA points or minimum Founders

Diamond qualification with at least 1 x Founders Platinum

in at least 10 x Q12 legs together with a minimum of

52 qualification credits

• • • • • • • • • •

CROWN

18 Q6 Legs or 22 FAA points or minimum Founders

Diamond qualification with at least 1 x Founders Platinum

in at least 12 x Q12 legs together with a minimum of

64 qualification credits

• • • • • • • • • • •

FOUNDERS CROWN

18 Q12 Legs or 25 FAA points or minimum Founders

Diamond qualification with at least 1 x Founders Platinum

in at least 12 x Q12 legs together with a minimum of

76 qualification credits

• • • • • • • • • • •

CROWN AMBASSADOR

20 Q6 Legs or 27 FAA points or minimum Founders

Diamond qualification with at least 1 x Founders Platinum

in at least 14 x Q12 legs together with a minimum of

88 qualification credits

• • • • • • • • • • •

FOUNDERS CROWN AMBASSADOR

20 Q12 Legs or 30 FAA points or minimum Founders

Diamond qualification with at least 1 x Founders Platinum in at least 14 x Q12 legs together

with a minimum of 100 qualification credits

• • • • • • • • • • •

AWARDS & REWARDS

* Ruby is conditional. The IBO must have 15,000 PV. ** Achievers requirements are different globally, but it is for Platinum and above. Please refer to the terms and conditions on the following page. *** Founders Council is qualifying with 20 FAA points or qualified/re-qualified at Crown Ambassador. **** For Executive Diamond and above qualification there is a transition period where both criteria options apply until August 31 2021.

TERMS AND CONDITIONS FOR Amway ACHIEVERS **

1. The Amway Leadership Seminar (Achievers) is not part of the Amway Sales & Marketing Plan and may be subject to future modifications.

2. Achievers is strictly based on invitational basis, not automatic upon qualification.Platinum IBOs will be assessed to determine if he/she conducts his/her business ethically, in accordance to the letter and spirit of the Amway Rules of Conduct.

3. The Platinum IBOs must be the owner or operator of the Amway business. An inherited business may not be eligible for invitation.

4. Emerald Bonus / Rebate recipents can qualify for Achievers if they re-qualify as Emerald Bonus / Rebate recipents or achieve the required targets. Either condition applies.

Page 8: BUSINESS MANUAL - media.amway.com.au · Your Gross Income Per Month = $192 Your Gross Income Per Year (12 x $192) = $2,304 1 Not every IBO will sponsor 4 IBO. Some will sponsor more,

THE Amway® SALES & MARKETING PLAN

The Performance Bonus Let’s say that during your first month you purchase and

personally sell products totalling 100 points. Assuming that

your average retail profit on the products is about 25%, your

immediate gross income can be $120 (30% of 400 BV).

In addition, when your Personal PV total exceeds 50PPV points,

you are eligible to receive a Performance Bonus. Under the

Performance Bonus Schedule you would receive a Performance

Bonus of 3% on your 400 BV, or $12, plus your immediate gross

income of $120, giving you a total gross monthly income of $132

or total gross annual income of $1584 (See Example 1).

(1) Not everyone will, of course, have 100 points per month.

Some will have less and some will have more. This figure is used

merely to demonstrate the business opportunity.

(2) The suggested retail profit varies with each product and

averages about 30%.

The total Point Value of all the products you purchase and sell

during a particular month determines your Performance Bonus

percentage for that month. The greater your total monthly

Point Value, the greater your Performance Bonus percentage

due to you.

Calculating your Performance Bonus percentage bracket on the

total PV places the emphasis on the number of units sold, not

on the selling price per unit. As inflation causes prices to

increase, each IBO receives a larger bonus/rebate for the same

number of units sold.

If Your Total Monthly Point Value is:

Bonus

7500 points = 21% of your BV

5000 points = 18%

3250 points = 15%

2000 points = 12%

1000 points = 9%

400 points = 6%

100 points = 3%

For Illustration purpose we use 1PV:4BV.

The Ruby BonusA Ruby Bonus, equal to 2% of that month’s total Ruby BV, will be

paid to a qualified IBO.

Leadership BonusThe Leadership Bonus is paid each month by Amway to a

qualified sponsor on the Personal Group BV of each 21% level

group that he personally sponsors.

In the course of building an Amway business, a sponsor

motivates and trains an IBO to assist him in attaining the level of

Platinum. At that time, both the sponsor and the new Platinum

are in the same Performance Bonus percentage bracket: 21%.

Therefore, in order to provide the sponsor with an incentive to

develop a Platinum IBO and to compensate for the hard work

involved in doing so, the Amway Sales & Marketing Plan provides

payment to the sponsor with a Leadership Bonus. This Bonus is

calculated by Amway on the BV of each 21% qualifying group he

or she personally sponsors.

Under this system, the sponsor receives payment as long as

the sponsored IBO qualifies, and as long as the sponsor

maintains his Personal Group PV at the levels described under

the ‘Rules Governing Calculation of the Leadership Bonus’ on

the following page.

6% Leadership Bonus Adjustment (LBA)While a qualified sponsor earns a Leadership Bonus on the

Personal Group BV of the 21% groups that he personally

sponsors, he must also remember that his sponsor is entitled

to receive a Bonus that is 6% of his BV or the established 6%

Leadership Bonus Adjustment amount, whichever is greater.

If the Personal Group BV of a qualified sponsor is insufficient to

fulfil the 6% Leadership Bonus Adjustment to this sponsor, the

difference between the Leadership Bonus actually generated

by his volume and the 6% Leadership Bonus Adjustment is

deducted from his Leadership Bonus by Amway, and added to

the Bonus of his sponsor. This same adjustment is applied up the

line of sponsorship.

TYPES OF BONUSES

Page 9: BUSINESS MANUAL - media.amway.com.au · Your Gross Income Per Month = $192 Your Gross Income Per Year (12 x $192) = $2,304 1 Not every IBO will sponsor 4 IBO. Some will sponsor more,

To assure the effectiveness of this feature of the Amway

Sales & Marketing Plan, the 6% Leadership Bonus Adjustment

of Leadership Bonus must be adjusted whenever there are

adjustments to the BV or PV amounts. This 6% Leadership Bonus

Adjustment is determined in accordance with the ratio between

BV and PV. As BV and/or PV adjustments take place in the

future, the amount is recalculated and the revised figure will be

published by Amway in the Product Catalogue.

Rules Governing Calculation of Leadership Bonus

(1) It is paid on every BV of each month by Amway. Amway

calculates and pays all Leadership Bonuses.

(2) It is calculated from the lowest level up – never from

the highest level down.

(3) You must have at least 3250 Personal Group PV in order to

receive any Leadership Bonus if you sponsor 1 qualified group.

(4) Once the 6% Leadership Bonus Adjustment is generated, at

least that amount of Leadership Bonus

must continue to pass up the line of sponsorship.

(5) Each sponsor of a qualified group may be entitled

to a Leadership Bonus based on the following rules:

You will keep ALL of the Leadership Bonus generated to you:

(a) If you sponsor 1 qualified group and the Leadership Bonus

generated by your Business Volume is equal to

or exceeds the 6% Leadership Bonus Adjustment or

the amount of Leadership Bonus generated to you, or

(b) If you sponsor 2 or more qualified groups and the Leadership

Bonus generated by your Business Volume

is equal to or exceeds the average of the Leadership

Bonus generated to you by your qualified groups.

You will keep SOME of the Leadership Bonus generated to you:

(a) If you sponsor 1 qualified group and the Leadership

Bonus generated by your Business Volume is less than the 6%

Leadership Bonus Adjustment or the amount of Leadership

Bonus generated to you by that group, or

(b) If you sponsor 2 or more qualified groups and the Leadership

Bonus generated by your Business Volume is less than the

average Leadership Bonus generated to you.

(c) You will keep none of the Leadership bonus/rebate generated

to you if you sponsor 1 qualified group and you have less than

3250 Group PV.

The 3250 Point Value mentioned above does not include any

downline qualified volume (21%). It will however, include pass-

up volume (non-qualified Silver Producer or Platinum volume).

Because an Amway business is part of a IBOs estate, the Bonus

for which a Platinum is eligible can, in the event of death, be paid

to the heirs. The heirs must however become Amway IBOs and

continue to qualify the Independant Business to remain eligible

for continued payments.

International Leadership Bonus ScheduleFoster Sponsors will share in a portion of the International

Leadership Bonus. Based on the date Amway receives the

original application of the qualified 21% foster sponsored

Independant Business (IB), it will be paid as follows:

• 3% to Foster Sponsor and 3% to International Sponsor

for Application Forms received before 1 September 1991

(including new markets opened before 1 May 1991).

• 4% to Foster Sponsor and 2% to International Sponsor for

Application Forms received on or after 1 September 1991

(including new markets opened on or after 1 May 1991).

See international sponsoring on page 16.

Monthly Depth BonusEach IBO who personally or foster sponsors 3 or more groups

which qualify at the 21% Performance Bonus level in any one

month is eligible to receive a Monthly Depth Bonus.

Each month, Amway pays a qualified recipient a Monthly Depth

Bonus equal to 1% of the BV generated by all second level 21%

groups, down to and including the first qualified Monthly Depth

Bonus recipient plus the personally or foster sponsored 21%

groups of that (downline) Monthly Depth Bonus recipient.

If a qualified Monthly Depth Bonus recipient personally or foster

sponsors a qualified Monthly Depth Bonus recipient, the Monthly

Depth Bonus for the sponsoring Monthly Depth Bonus recipient

is paid only on the 21% groups personally or foster sponsored by

the sponsored Monthly Depth Bonus recipient. (BV generated

by first level 21% groups does not count toward the Monthly

Depth Bonus since the Leadership Bonus is paid on this volume.

Monthly Depth Bonus is paid to the upline Monthly Depth Bonus

recipient on this volume.)

1% Monthly Depth Bonus Adjustment

Each qualified Monthly Depth Bonus recipient must guarantee to

his sponsoring Monthly Depth Bonus recipient a minimum of 1%

of 7500 PV times the PV/BV ratio (equivalent to a quarter of the

6% Leadership Bonus Adjustment) on his 21% group as well as

one each of his personally or foster sponsored 21% groups.

Page 10: BUSINESS MANUAL - media.amway.com.au · Your Gross Income Per Month = $192 Your Gross Income Per Year (12 x $192) = $2,304 1 Not every IBO will sponsor 4 IBO. Some will sponsor more,

The 1% Monthly Depth Bonus Adjustment changes if and when

the BV or PV values of products change. Amway

will publish the amount updates in the Product Catalogue.

Whenever a qualified Monthly Depth Bonus recipient or one

of his personally or foster sponsored 21% groups does not

generate sufficient volume to fulfil the 1% Monthly Depth Bonus

Adjustment to the upline Monthly Depth Bonus recipient, Amway

will adjust the Bonus of the Monthly Depth Bonus to make up the

difference.

Emerald BonusTo qualify for the annually paid Emerald Bonus, a Platinum IBO

must personally or foster sponsor 3 x 21% groups in his own

market, each of which qualifies at the 21% Performance Bonus

level for at least 6 months during the performance year.

The Emerald Bonus is paid annually. Amway sets aside an amount

equal to 1/4 of 1% of all qualified BV downline from

all qualified Emerald IBOs in the market (including 1/4 of 1%

of all Amway foreign subsidiary qualified volume traceable

to Australia or New Zealand sponsorship, provided that volume is

only one country removed from the market). At the end of each

performance year (August 31), this fund is distributed among all

the Emerald IBOs who qualify in the

following manner:

(1) The annual qualified BV of each of the Emerald IBOs groups,

including the BV on which the Emerald IBO has earned the

Leadership Bonus, is added together.

(2) A point value of 4 points is assigned for each 1,000 BV

per group for the first 25,000 BV; 2 points are assigned for each

1,000 BV per group for the next 49,999 BV; 1 point is assigned

for each 1,000 BV per group for the next 49,999 BV and 1

point is assigned for each 10,000 BV per group thereafter. This

computation is made for each group.

(3) The total points for all groups of each participating Emerald

IBO are then added.

(4) Dividing the total fund available by the total points

gives an AUD/NZD value per point.

(5) The Emerald Bonus is then determined for each qualified

Emerald IBO by multiplying his points by the AUD/NZD value per

point.

(6) Payment for the performance year ending August 31 are sent

out in December.

NOTE: For all bonus/rebate purposes, a No. 2 Independant Business (an Independant

Business which has been purchased or otherwise acquired, and is being operated by

a Platinum IBO or above in a different line of sponsorship) is treated as a completely

separate business. Volumes generated by the 2 Independant Business’ are not

combined for purposes of calculating bonuses or for award purposes.

Diamond BonusTo qualify for the annual Diamond Bonus, a Platinum

IBO must personally or foster sponsor 6 x 21% groups

in his own market, each of which qualifies at the 21%

Performance Bonus level during at least 6 months

of the performance year.

The Diamond Bonus is paid out of a fund consisting of 1/4 of

1% of all qualified BV downlines from all qualified Diamond

IBOs in the market (including 1/4 of 1% of all Amway foreign

subsidiary qualified volume traceable to Australia or New Zealand

sponsorship, provided that

volume is only one country removed from the market).

The fund is distributed to eligible participants in accordance

with the same formula employed for the calculation of the

Emerald Bonus. The Diamond IBO who personally or foster

sponsors at least 7 x 21% groups, each of which qualifies at

the 21% Performance Bonus level during 6 months out of the

performance year can also share in the Diamond Plus

Bonus Fund. (See next column for Diamond Plus Bonus

Qualification Schedule.)

Diamond Plus BonusA Diamond Plus Bonus is paid to each Platinum IBO who

personally or foster sponsors 7 or more 21% groups whose

volume qualifies for at least 6 out of 12 months of a given

performance year. Internationally sponsored groups are

not included in the computation and payments of the Diamond

Plus Bonus. The bonus/rebate is paid according to the

following method:

Units are assigned to each qualified 21% group for each month

they qualify. The number of units assigned to

each group per month is as follows:

(1) Each performance year Amway sets aside a fund

equal to 1/4 of 1% of the in-market Business Volume generated by

all the 21% groups in the line of

sponsorship of the Diamond Plus Bonus qualifiers.

Once the total number of units is assigned to each Diamond Plus

Bonus Qualifier, (see schedule below) the grand total of units

is divided into the Diamond Plus Bonus Fund to determine the

AUD/NZD value of each unit. Each qualifier’s bonus/rebate is

determined by multiplying the AUD/NZD value per unit by the

total number of units for that qualifier.

(2) This amount is to be paid before the end of the calendar year

for the previous performance year.

Page 11: BUSINESS MANUAL - media.amway.com.au · Your Gross Income Per Month = $192 Your Gross Income Per Year (12 x $192) = $2,304 1 Not every IBO will sponsor 4 IBO. Some will sponsor more,

Diamond Plus Bonus Qualification and Unit Computation ScheduleQualified 21% groups totalling

Bonus Unit (multiplied by months qualified)

7 – 11 groups = 100 per group12 – 14 groups = 200 per group15 – 17 groups = 300 per group18 – 19 groups = 400 per group20 or more groups = 500 per group

FAA Credit Calculation

Domestic Legs Leg Credits

Q12 Leg or Q12 VE1 leg = 1.0Emerald bonus/rebate recipient leg = 1.5Diamond bonus/rebate recipient leg = 3.0

International Legs Leg Credits

No. 2 business with Q12 or Q12 VE1 = 1.0No. 2 Emerald bonus/rebate recipient business = 1.5No. 2 Diamond bonus/rebate recipient business = 3.0 – 6.0Other Q12 or Q12 VE1 legs = 0.5

Financial FreedomAmway offers an excellent opportunity to build a future and

to gain financial freedom and independence. It does not offer

superannuation or a guaranteed pension plan.

The Amway Compensation Plan is designed to allow you to build

a successful independent business that can achieve maintain

financial success.

Additional income can be earned through the Leadership Bonus,

this is dependent on you as the upline, and your downlines group

volume and qualifications.

There are times when you may wish to take time off. Once

you’ve built a strong business, you may wish to relax a bit,

travel and enjoy the rewards of success. It is certainly possible

to do so, as long as your business is strong and you make

proper advance preparations.

To maintain the financial freedom you have established, be sure

to maintain your Platinum qualification, and don’t hesitate to step

in when necessary to provide the motivation and leadership to

keep your business thriving. Amway is what you make it to be!

Important Notes

(1) Amway of Australia and Amway of New Zealand is operated

as one market, a Single Line of Sponsorship. The Performance

Bonus/Rebate Schedule, all other Bonus/Rebate qualifications

and calculations, and all recognitions and awards given, as

stated in this manual apply to Amway of Australia and

Amway of New Zealand.

(2) “Amway” used herein refers to Amway of Australia and

Amway of New Zealand.

(3) GIP, FAA and Achievers are discretionary awards & rewards

and not part of the Amway Sales & Marketing Plan. Attendance

at Achievers and other incentive trips is by invitation only and

NOT automatic upon qualification. To receive the reward, an IBO

must meet the criteria set forth by Amway to be considered

for the awards, and must also demonstrate the high ethical and

business standards that are aligned with the goals and objectives

of Amway.

Inheritable Income for Your FamilyOne of the attributes of the Amway Sales & Marketing Plan is

the ability of IBOs to build and establish a substantial business,

and then pass it on to their heirs as part of their estate. This is

best accomplished by working with one’s own solicitor to assure

that the transfer of the Independant Business complies with the

owner’s wishes and with the laws that govern inheritance in the

respective country, as well as Amway’s requirements for transfer

of an Independant Business. The specific information can be

obtained by contacting Amway directly and we will be glad to

assist you and your solicitor with the details.

Page 12: BUSINESS MANUAL - media.amway.com.au · Your Gross Income Per Month = $192 Your Gross Income Per Year (12 x $192) = $2,304 1 Not every IBO will sponsor 4 IBO. Some will sponsor more,

• Russia

• United States

• Canada

• Brazil

• Argentina

• China • Japan

• India

• Australia

• Indonesia

New Zealand •

Singapore •• Brunei

• Vietnam• Philippines

• Macau

• Namibia

• Iceland

• Bermuda

The Bahamas

Sweden

Dominican Republic

Norway

Puerto Rico (USA)

Finland

Saints Kitts & Nevis

Denmark

Guadeloupe

The Netherlands

Cuba

Guatemala

Haiti

El Salvador

Jamaica

Antilles

Cayman Islands

BelgiumGuernsey

Honduras

Anguilla

AustriaJersey Islands

Costa Rica

Montserrat

SloveniaFrance

Panama

Martinique

ItalySwitzerland

SpainPortugal

Venezuela

Greece

Colombia

Dominica

Poland

Antiqua & Barbuda

Ukraine

Saint Lucia

Germany

Grenada

Czech Republic

Barbados

The Slovak Republic

Trininad & Tobago

Hungary

Saint Vincent

Croatia

French Guiana

RomaniaTurkey• Channel Islands

• Taiwan

Malaysia •

Thailand •

Farrow Islands •

Ireland •United Kingdom •

Korea •

Hong Kong •Mexico •

South Africa •

INTERNATIONAL SPONSORING

Important Note

Amway prohibits advertising for leads

in foreign countries. You are advised to

contact the local Amway office since

regulations differ from one country to

another. We recommend for you to fully

understand the legal requirements and

cultural perspective before initiating

any sponsoring activity.

Zero Tolerance Policy

Amway has adopted a Zero Tolerance Policy

for all unauthorised activities in unopened

markets. Refer to www.amwayglobal.com

and find the list of countries under

“Choose your country”.

International Sponsoring

In general, internationally sponsored 21% leg

will result in an award/reward month flowing

back to the International Sponsor. However, in

situations where the award flows back to the

home market of this 21% leg, no subsequent

award will be generated to the International

Sponsor from the home market.

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Grow Through International SponsoringThere are two ways to build an Amway business internationally.

First Method: By International Sponsoring

If you have a prospect in a known Amway market

on a particular country, you should follow these

recommended procedures:

(a) Enlist the prospect’s interest and explain to

him/her the Amway Sales & Marketing Plan.

(b) Refer to your upline IBOs if they know any Amway IBOs in the

affiliate of your prospect, who your upline IBO may contact to be

or to get a foster sponsor for your prospect.

(c) Otherwise, provide your name, address and IBO Number

and ask the prospect to contact the Amway local office. It is

important that your prospect personally contact and inform the

Amway affiliate of his/her intention as Amway will not contact

the prospect.

(d) Only upon your prospect’s contact, the Amway affiliate will

then assign a nearby Platinum IBO who will become the Foster

Sponsor of your prospect, to explain thoroughly

the Amway Sales & Marketing Plan for the local market.

(e) Your prospect must complete a registration and order an

Amway Registration Pack. This process will vary

slightly between markets.

(f) Your particulars need to be inserted as the International Sponsor.

A Foster Sponsor is responsible for training, motivating

and supplying your new IBO with products.

As International Sponsor, you must not send literature, sales aids

or products to them as this may be illegal, but you may maintain

your communication with your prospect.

Your Benefits As An International SponsorInternational Leadership Bonus (ILB) When your new IBO qualifies at the maximum Performance

Bonus/Rebate level, for e.g. 21%, you may be entitled to receive

the ILB/ILR, based on the following criteria:

• If you qualify 21% level in your own country on the same

month, you will receive the entire amount of

the ILB/ILR.

• If you internationally sponsor 2 or more IBOs who qualify

21% during the same month and you do not reach the 21%

level in your own country, you will receive a portion of the

ILB/ILR. (The first upline qualified Independant Business

in your Line of Sponsorship (LOS) will receive the average

amount of ILB generated, not to exceed the Leadership

Bonus/Rebate Adjustment amount of your country, and you

will receive the remaining ILB/ILR monies generated.)

• If you internationally sponsor one qualifying IBO and you do

not reach the 21% level in your own country during the same

month, the ILB will be paid to the first upline qualified IBO in

your LOS.

* International ILB/ILR follows the International LOS and an international LOS is

considered the primary link.

Additional Benefits

• Emerald and above pin awards – You can count

internationally sponsored 21% Bonus/Rebate groups toward

your qualification for Emerald and above pin awards (not

bonuses/rebates).

• Emerald and Diamond bonus/rebate – You can count an

internationally sponsored 21% leg towards Emerald and

Diamond bonus/rebate only if you have qualified as an

Emerald or Diamond bonus/rebate recipient in your own

country. Emerald and Diamond Bonuses/Rebates are paid to

both the International and

Foster LOS.

• One-time cash awards – Your qualified international

leg will also count towards your one-time Double Diamond

and above cash awards.

The Foster Sponsor receives the following benefits

• The Foster Sponsor receives credit for all PV and BV

generated by the new IBO and his group for Performance

Bonus/Rebate purposes until the IBO reaches the 21%

Performance Bonus/Rebate level.

• The Foster Sponsor may count foster-sponsored 21% groups

toward his qualification for all awards and bonuses/rebates

except Foster Bonus/Rebate.*

• The Foster Sponsor, subject to his qualification at the 21%

Leadership Percentage level, is entitled to a portion of

the Leadership Bonus/Rebate generated from the foster-

sponsored 21% group.

• The Foster Sponsor receives points on all BV generated

by the new IBO and his group for Leadership Seminar

qualification.*The Foster Sponsor’s Leadership Percentage Level would start from 0% when the

foster IBO reaches 21% Performance Bonus.

Second Method: Registering a Second Business

You may expand your Amway business internationally by

establishing a second IBOs in that country. Your #1 business

shall be the International sponsor of your #2 business. Prior to

establishing an international business you should:

(a) Check with this local Amway office and relevant authorities

of requirements and documents to establish a business in

that country. You should also refer to the nearest Embassy or

Consulate for advice and instruction

on the requirements.

(b) Refer to your upline IBOs if they know any Amway IBOs in the

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market you wish to establish a 2nd business. Otherwise, contact

the Amway local office for the assignment of Foster Sponsor.

(c) You must complete and submit a registration application form

and in some countries purchase a Registration Pack.

(d) You must advise the you are registering as a

multiple business.

(e) Your 1st Independant Business (IB) must be your International

Sponsor.

(f) You will be given a second Amway IBO number to be used in

that country upon the approval of your application.

• You must repeat with the above provisions should you wish

to establish another Amway International market.

• Subsequent Independant Business (IB) in other countries

can be internationally sponsored by any one of your existing

Independant Business (IB) if you indicate your choice on the

Application Form for the subsequent Groups.

For example, if a IBO has a No. 1 business in Australia, a No. 2

business in Hong Kong and a No. 3 business in Thailand, the IBO

must have determined at the time of signing the application

form for his No. 3 business which the existing Independant

Business will serve as the International Sponsor. Therefore, the

IBO would have had two options from which to choose as

shown below. It is recommended that the IBOs home market

be the International Sponsor.

Option 1

A personally sponsors B#1; B#1 internationally sponsors B#2

foster-sponsored by C; and B#2 internationally sponsors B#3

foster-sponsored by D.

Option 2

A personally sponsors B#1; B#1 internationally sponsors B#2

foster-sponsored by C and B#3 foster-sponsored by D.

YOUR ARE SUPPORTEDYour business is well supported by a company you can trust.

Amway. The most important thing a IBOship provides is the

immediate access to a range of quality Amway products. No bulk

inventory purchase is required, and the products are backed by

the Amway Satisfaction Guarantee.

Our desire is to see you succeed. We have various departments

within Amway that you can reach out to

as you build your business.

Return of Saleable ProductsStock Reduction

Amway accepts return of BV items which are current and in

saleable condition. Amway does not accept returned literature,

audio-visual aids, pins, plaques, forms, accessories, and other

promotional items and sales aids for replacement or for refund by

Credit Vouchers from operating Amway IBOs. The refund equals

the original purchase price less Performance Bonus received, less

up to 15% for handling, administration, and shipping costs.

Refund for saleable merchandise (new and still available in the

current line) will only be given with prior written permission from

Amway of Australia & New Zealand. Enclose that permission with

the products you return.

Terminating business + return of saleable stocks

Reimbursement for saleable merchandise (new and still available

in the current line), unopened original packaging of current

saleable literature, and for the unsponsored/unused Business

Kit will be given when an IBO, through previous documentation,

terminates the IBOship. The reimbursement is normally given

with the next monthly computation of BV through the sponsoring

Independent Dusiness Owner. In exceptional cases, where the

line of sponsorship may not handle the merchandise return and

reimbursement for the terminating IBO, Amway

will handle the necessary transaction directly.

Current IBOs who resign will receive full resignation refund

upon submission of their Business Kits complete with literature,

resignation letter and ADA card.

Non-renewed IBOs will receive only a Business Kit refund if

their Business Kit complete with literature and ADA cards are

A B C

B #1 B #2 B #3

A B C

B #1 B #2 B #3

THE Amway® SALES & MARKETING PLAN

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returned (together with resignation letter) within the one year

nonrenewed period from expiry of

the IBOship. After which no refunds will be given.

The Credit Voucher The Credit Voucher protects the IBO’s Performance Bonus! It is

a service that enables you to control your monthly group Point

Value and Business Volume.

In addition, it enables the IBO to gain back purchasing power

within approximately 10 working days

of an order being shipped. A IBO will not have to wait for his

Performance Bonus to receive credit.

The Credit Voucher functions as follows:

• PV/BV Credit Voucher will be issued for any item shown as

TNA (Temporarily Not Available) on the invoice. It will be

produced after the full order has been shipped and posted.

Upon verification, the Credit Voucher will be updated to the

recipient’s accounts.

• All PV/BV items ordered regardless of whether they were

shipped or not will be used in calculating the Performance

Bonus for that particular month. This ensures that your

Performance Bonus is not affected

• by Amway’s inability to ship products, since your PV and BV

will not be reduced until the month in which you redeemed

your Credit Voucher.

• Credit Voucher is also issued for products returned

for credit under the Amway Satisfaction Guarantee.

• Credit Voucher can only be used for ordering items and

cannot be redeemed for cash except under exceptional

circumstances. The Credit Voucher must be presented or

referenced when you redeem it against your order.

• Credit Voucher must be redeemed within one year from the

date of its issue.

Return of Unsaleable ProductsIf a customer wants to return a product to you, get the following

information to complete a SA112 Returned Merchandise

Authorisation Form:

1. The reason for return.

2. The product name and quantity.

3. The original invoice number.

4. The name and address of the customer.

5. Enclose a copy of the Customer Receipt (SA107).

The IBO should then offer to replace the product with another

one, give full credit toward the purchase of another Amway

product, or refund the full purchase price.

Products with manufacturing defects or products returned by

unsatisfied customers, for which a replacement has been given

(or the full purchase price refunded) may be returned to Amway.

Return the products with a duly completed SA112 form to Amway,

and the amount will be credited with your next order or you can

opt for a replacement.

Shoppers Catalogue items and Amway durable products

(Big Ticket Items) such as eSpring® Water Treatment System,

atmosphere® Air Purifier, and iCook® range are

not covered by the Amway Satisfaction Guarantee, but

by separate manufacturer’s warranty.

Repackaging Amway ProductsAmway does not permit repackaging of its products. Amway

products are to be sold only in their original packages

as manufactured by Access Business Group. Under no

circumstances is a person authorised to repackage Amway

products into new containers bearing the Amway name.

The reasons are as follows:

(1) ‘Amway’ is the registered trademark of Alticor Inc. and is an

extremely valuable asset. Accordingly, Amway will not permit

persons to market any product under the Amway name which

was not manufactured and packaged at Amway.

(2) Laws contain detailed provisions as to what must be included

in the labelling of products. These laws also limit the claims

which can be made about a product. Amway carefully follows

these rules and regulations. They are extremely complicated and

change from time to time. An individual IBO is in no position

to keep abreast of the current status. Accordingly, an amateur

attempting to develop his own packaging is very likely to

unintentionally violate labelling laws. Use of the Amway name

on such repackaging not only puts the packager in jeopardy, but

may also make Amway liable to possible penalty under

the laws of the country.

(3) Each product packaged by Amway is prepared under precise

specifications. Whenever a repackaging operation is undertaken,

there is always a possibility of contamination or adulteration of

the product. Repackaging of any product is subject to the same

laws and regulations governing manufacturing practices as are

the original manufacturing and packaging operations.

(4) The sizes in which Amway makes its products available have

been determined after very careful consideration. If other persons

(including IBOs) were permitted to repackage into sizes other

than those made available by Amway, this would undoubtedly

cause considerable confusion among IBOs and customers.

Product Liability ProtectionAmway products should not cause damage or injury if they

are used for their intended purpose and in accordance with

instructions provided. In the event that an Amway product is

found to have a manufacturing defect or has been damaged in

transit to the customer, the Amway 90 day satisfaction guarantee

will apply in addition to Amway’S guarantee of quality that

attaches to all its products.

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Amway carries product liability insurance on its products which

protects both the company and its IBOs. However, this insurance

protection may not cover every situation and is dependent on

whether the injury or damage resulted from a faulty product,

from careless or negligent applications, or from the improper use

of a product. Amway’s insurance coverage does cover injury or

damage where a faulty product is involved, but does not cover

careless or negligent application or improper use

of a product.

Summary of Main Principles regarding Product Liability

(1) Like all people engaged in business, Amway IBOs may be

liable to possible damage or injury suits. Such lawsuits are,

however, extremely rare.

(2) Amway IBOs can avoid exposure to lawsuits if they are careful

and if they recommend only those uses of Amway products

which are detailed on Amway’s labels or in Amway’s literature.

(3) Amway’s insurance may not protect a IBO where the damage

or injury results from changing an Amway label, misrepresenting

a product, or from making claims other than those listed on the

product or printed in the

Amway literature.

(4) Every Amway IBO has the opportunity to secure his/her own

liability insurance at a relatively low premium. In the event that

IBOs are actively engaged in demonstrating or selling Amway

products, this additional opportunity to insure against liability is

recommended.