Award And Reward - Amway

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Amway Business Manual06Part 2Award and Reward1. The Bonus SystemThe uniqueness of the Amway Business lies in its time-proven Sales & Marketing Plan which on one hand rewards the effortsof Distributors, and on the other, inspires Distributors' potential. It is possible, through the Amway Business Opportunity andthrough individual efforts, for a common individual to create success of his own and achieve financial security.Distributors achieve their qualification levels by selling products, expand their networks by sponsoring others to becomeDistributors, and increase their Business Volume by duplicating their selling efforts.

Amway Business Manual07

Amway Business ManualA Distributor's income consists of thefollowing elements:081. Immediate IncomeBV & PV Retail Profit : Approximately 25% 30%2. Monthly BonusExcept the Retail Profit, Your business income is based Performance Bonus : 3% 21%on the monthly accumulation of points. All products Leadership Bonus : 4%are assigned 2 sets of numbers : Point Value (PV) Ruby Bonus : 2%and Business Volume (BV).The relationship between Pearl Bonus : 1%the 2 sets of value is governed by the PV/BV ratio3. Annual Bonusas announced by Amway considering facts such as Emerald Bonus : 0.25%inflation, product price adjustment and Distributor Diamond Bonus : 0.25%income level. The PV/BV ratio is 1/42 now in Taiwan. Diamond Plus Bonus : 0.25% One-Time Cash Bonus : NT 600,000 NT 4.2 million are offered for first-timequalifying Double Diamond and up level. Special Incentive Programs : (Differentspecial incentive programs are offered yearly.)The Performance BonusPerformance Bonus ScheduleIf Your Total Monthly Point Value is:10,000 or more7,000 9,9994,000 6,9992,400 3,9991,200 2,399600 1,199200 599Your Performance Bonus is:21% of you BV18%15%12%9%6%3%

and sell during a particular month determines yourPerformance Bonus percentage for that month. As youcan see, the greater your total monthly Point Value, thegreater your Performance Bonus. And the PerformanceBonus is based not only on a Distributor's own BusinessVolume but also on purchases made by Distributors andPrivileged Members whom he sponsors.Amway Business ManualThe total Point Value of all the products you purchaseExample 1YouO PV09PrivilegedMember200PVYour Performance Bonus0 200 200PV200PV X 42 X 3% NT 252For simplicity, in our examples we have assumed 1 PV isequal to 42 BV.You200PVYour Performance Bonus200 200 X 4 1,000PV1,000PV X 42 X 6% NT 2,520PrivilegedMember200PV

Amway Business Manual10Example 2Example 3Assuming the following 1, 2 and 3 situations, your totalmonthly Group PV will be the same at 600 PV, however,the Performance Bonus you receive is different.(including the PV of your own1)YouYoupersonal orders and Privileged600PV200PVMembers whom you sponsored)You 600PVX42X6% NT 1,512A2)AYou1,600PV400PV200PVB1,600PV( A is a Distributor )200PV 400PV 600PV600PVX42X6% Total Monthly PerformanceBonus of your personal group–(400PVX42) X3% A's Performance Bonus NT 1,008 Your Performance Bonuseach600PV3)You200PVA200PVB200PV(A and B are Distributors)Your Performance �� NT 1,008 The Amway business is a fair business. More effortmade, more income earned.C1,600PVD1,600PV

Amway Business ManualExample 411AYou10,000PV10,000PVAmway provides payment of 4% Leadership Bonus.A 10,000PV 420,000BVYour Leadership Bonus420,000X4% NT 16,800Please refer to P14 for more detail.Example 5D's Performance Bonus1,600 600X7 5,800PV5,800PVX42X15%–(600PVX42X6%)X7You 36,540–10,584 NT 25,95610,000PVMonthly Performance Bonus paid to A, B and C each1,600PVX42X9% NT 6,048The Performance Bonus you receiveC10,000PV200 1,600X3(A, B, C) 5,800(total PV of D's PersonalGroup)A 10,800PV10,800PVX42X21%– 1,600PVX42X9%X3(total Performance Bonus paid to A,B and C)– 5 ,800PVX42X15%(total Performance Bonus of D'sPersonal Group) 95,256–18,144–36,540 NT 40,572 By sponsoring and coaching Distributors, you increasethe base of sales on which your bonuses are calculated.You not only build your own business network but alsoenable others to build their own business.DB15,000PV4% Leadership Bonus generated by A, B and C10,000PVX42X4%X3 NT 50,4004% Leadership Bonus generated by D15,000PVX42X4% NT 25,200Your Leadership Bonus50,400 25,200 NT 75,600 As your personally sponsored Distributors reach the21% level, you should continue to sponsor and supportmore Distributors to achieve their goals in order to keepgrowing.

Amway Business ManualExample 612YouUpline900PV900PVYour Performance Bonus900PVX42X6% NT 2,268You900PVYou900PVDoubleAA900PV900PVYour Performance Bonus A's Performance BonusTotal Performance Bonus1,800PVX42X9% NT 6,8043,600PVX42X12% NT 18,144Your Performance BonusPerformance Bonus Your Upline receives6,804–(900PVX42X6%) NT 4,53618,144–(2,700PVX42X12%) NT 4,536NT 9,072(you) NT 4,536(Upline)YouB900PVTotal Performance Bonus (Yours A's B's)2,700PVX42X12% NT 13,608Your Performance Bonus13,608–(900PVX42X6%)X2 NT 9,072 As your network increases so do your bonuses. You can build your own Amway Business andsurpass your Upline in achieving higher level.BonusADouble900PV900PVB900PV

Amway Business ManualExample 713YouO PVBA3,000PV3,000PVC2,000PVTotal Performance Bonus(0 3,000 3,000 2,000 2,000)PVX42X21% NT 88,200Performance Bonus of A Personal Group is(3,000 2,000 2,000)PVX42X18% NT 52,920Performance Bonus of B Personal Group is3,000PVX42X12% NT 15,120Your Performance BonusTotal–(A B) NT 20,160A's Performance Bonus52,920–(2,000PVX2X42X9%) NT 37,800NT 37,800(A) NT 20,160(you) Amwayprovides a flexible business opportunity.There is no minimun order required and you decidehow much time and efforts you want to invest.D2,000PV

Amway Business Manual14Leadership BonusExample 1The Leadership Bonus is paid each month by AmwayIf you personally sponsor one Distributor or one PMto a qualified sponsor on the Personal Group BV ofwho achieves 10,000PV and your Personal Groupeach 21% level group that he personally sponsors.PV exceeds 10,000, you will receive all of the 4%In the course of building an Amway business, aLeadership Bonus(420,000X4% NT 16,800).sponsor motivates and trains a Distributor to assist himin attaining the Maximum Performance Bonus level.At that time, both the sponsor and the Distributor arein the same Performance Bonus percentage bracket:21%. Therefore, in order to provide the sponsor with anincentive to compensate for the hard work involved indoing so, the Amway Sales & Marketing Plan providespayment of a 4% Leadership Bonus to the sponsor.This Bonus is computed by Amway on the BV of each21% qualifying group he or she personally sponsors.Under this system, a Distributor who personallysponsors at least one 21% Group and who achievesthe required Personal Group PV will be entitled to all orpart of the 4% Leadership Bonus. To r e w a r d t h e t i m e a n d e ff o r t y o u s p e n d o ndeveloping training and servicing your DownlineDistributors and PMs, Amway provides paymentof a 4% Leadership Bonus to you accordancewith the BV of the 21% qualifying group youpersonally sponsored as you meets Silver Producerqualification. The 4% Leadership Bonus is part of your estate andcan be passed on to your heirs.You10,000PV10,000PVu10,000PVIf you sponsor 7 Distributors, each of them achieves10,000PV and you maintains a Personal Group PV of atleast 10,000, you will receive a monthly 4% LeadershipBonus of : NT 117,600 (420,000X4%X7) or an annual4% Leadership Bonus of : NT 1,411,200.

4% Minimum le a qualified sponsor earns a Leadership BonusDistributor10,000PVhe personally sponsors, his qualified sponsor isentitled to receive a Bonus that is 4% of his BV orthe established 4% Minimum Guarantee amount,YouDistributor10,000PVon the Personal Group BV of the 21% groups that10,000PVwhichever is greater.Distributor10,000PVThis 4% Minimum Guarantee is determined inaccordance with the ratio between BV and PV. Asthe BV:PV ratio changes, the amount is and the revised figure will be published by Amway inAmagram.If the Personal Group BV of a qualified sponsor isinsufficient to fulfill the 4% Minimum Guarantee to hissponsor, the difference between the Leadership Bonusactually generated by his volume and the 4% MinimumGuarantee is deducted from his Leadership Bonus tofulfill the 4% Minimum Guarantee to his qualified sponsor.BonusAmway Business ManualExample 215

Amway Business Manual16Example 2For simplicity, in the following examples we have assumed1 PV is equal to 42 BV and then the 4% MinimumGuarantee is NT 16,800.You4,000PV168,000BV1. All of the 4% Leadership BonusIf your Personal Group PV equals or exceeds 10,000,Downline10,000PV420,000BVyou will keep all of the 4% Leadership Bonus generatedby your personally sponsored 21% Group. The 4% Leadership Bonus generated by yourDownline420,000X4% NT 16,800Example 1You10,000PV420,000BV The 4% Leadership Bonus you generated168,000 X4% NT 6,720Downline11,000PV462,000BVThe difference between the 4% Minimum Guarantee andthe 4% Leadership Bonus you generated is NT 10,080.To ensure your qualified Upline Sponsor receive the 4%Minimum Guarantee of NT 16,800, NT 10,080 of theThe 4% Leadership Bonus you received is 462,000X4% NT 18,480.2. Part of the 4% Leadership BonusIf your Personal Group PV is between 4,000 and10,000, you will only receive some of the 4%Leadership Bonus generated by your personallysponsored 21% Group because you have to ensurethat your qualified Upline Sponsor will receive the 4%Minimum Guarantee of NT 16,800.4% Leadership Bonus generated by your Downline isdeducted. The 4% Leadership Bonus you actually receiveis NT 6,720.3. If your Personal Group PV is less than 4,000 and youpersonally sponsor two 21% Groups, you will receiveonly part of the 4% Leadership Bonus generated byyour personally sponsored 21% Groups because youhave to ensure that your qualified Upline Sponsor willreceive the 4% Minimum Guarantee.

Amway Business ManualExample 317You1,500PV63,000BVADownline10,000PV420,000BV BDownline10,000PV420,000BVThe 4% Leadership Bonus generated by yourDownlinesA : 420,000X4% NT 16,800B : 420,000X4% NT 16,800A B NT 33,600 The 4% Leadership Bonus you generated63,000BVX4% NT 2,520The difference between the 4% Minimum Guarantee andthe 4% Leadership Bonus you generated is NT 14,280.To ensure your qualified Upline Sponsor receive the 4%Minimum Guarantee of NT 16,800, NT 14,280 of the4% Leadership Bonus(NT 33,600) generated by yourDownlines is deducted. The 4% Leadership Bonus youactually receive is NT 33,600–NT 14,280 NT 19,320.Bonus

Amway Business Manual18Example 1Ruby BonusAA Ruby Bonus is paid by Amway when a hes Ruby volume 20,000PV in any one month,no matter he qualifies Direct Distributor or not. TheDistributor1,000PV42,000BV6%amount is equal to 2% of the Distributor's Rubyvolume in that month.The Ruby volume excludes the following:1. The PV generated by Downlines who reach the21% Performance Bonus Level in that 2. The PV generated by Downline Direct Distributors,no matter they reach the 21% Performance BonusLevel or not in that month.3. T h e P V g e n e r a t e d b y t h e U p l i n e s o f F o s t e rSponsored 21% Groups in that month (except theDistributor himself 00PV420,000BV21%The Ruby volume of Direct Distributor A excludes thefollowing 3 items:1.The PV of 21% Silver Producer F and his UplineDistributor E.2.The PV of Downline Direct Distributor D.Bonus3.The PV of 21% Foster Sponsored Group C and hisUpline B.The Ruby volume of Direct Distributor A :A G 19,000PV 1,000PV 20,000PV

Amway Business Manual19Pearl BonusMinimum Pearl BonusEach Distributor who personally or foster sponsors 3 orEach qualified Pearl Bonus recipient must guaranteemore groups which qualify at the 21% Performance Bonusto his sponsoring Pearl Bonus recipient a minimum oflevel in any one month is eligible to receive a Pearl Bonus.1% of 10,000 points times the BV/PV ratio on his 21%Each month, Amway pays a qualified recipient a PearlBonus equal to 1% of the BV generated by all second levelgroup as well as one each of his personally or fostersponsored 21% groups.21% groups, down to and including the first qualified PearlWhenever a qualified Pearl Bonus recipient or one ofBonus recipient plus the personally or foster sponsoredhis personally or foster sponsored 21% groups does21% groups of that (Downline) Pearl Bonus recipient.not generate sufficient volume to fulfill the MinimumIf a qualified Pearl Bonus recipient personally or fostersponsors a qualified Pearl Bonus recipient, the PearlBonus for the sponsoring Pearl Bonus recipient is paid onlyon the 21% groups personally or foster sponsored by thesponsored Pearl Bonus recipient.To qualify for the Pearl Bonus, a Pearl Direct Distributormust be a qualified Direct Distributor and must personally orfoster sponsor at least three 21% groups in his own market.(BV generated by first level 21% groups does not counttoward the Pearl Bonus since the Leadership Bonus is paidon this volume. Pearl Bonus is paid to the Upline PearlBonus recipient on this volume.)guarantee to the Upline Pearl Bonus recipient, Amwaywill adjust the amount of the Pearl Bonus to make upthe difference. The PV/BV ratio is 1/42 and then the 1%Minimum Pearl Bonus guarantee is NT 4,200.The 1% Minimum Pearl Bonus changes if the BV/PVratio changes. Amway will publish the amount updatesin Amagram.

Amway Business Manual20Example 20,000BVYou cannot receive the Pearl Bonus generated by A, B& C since the 4% Leadership Bonus is paid on thesevolume.Your Pearl Bonus is based on the total BV of D, E, F & G:(420,000 420,000 420,000 420,000 ) X 1% NT 16,800E10,000PV420,000BVE is also a qualified Pearl Bonus recipient. Howeverhe cannot receive the Pearl Bonus because he dosenot have second level 21% groups. E will receive 0,000BV4% Leadership Bonus.

Amway Business ManualExample V420,000BVD1,200PV50,400BVE1,500PV63,000BVYour 4% Leadership Bonus is based on the total BVof A, B & C.FYour Pearl Bonus is based on the total BV of D, E, F, G,300PV12,600BVH, I & J:( 50,400 63,000 12,600 420,000 420,000 420,000 420,000 ) X1% NT 18,060GG's Pearl Bonus is based on the BV of ,000BV10,000PV420,000BVK10,000PV420,000BV

Amway Business Manual22Example 4Example 3Your Pearl Bonus is based on the total BV of D, E & F :In this example, you, B & E are Pearl Direct Distributors.(420,000 420,000 420,000) X1% NT 12,600B's Pearl Bonus is based on the total BV of D, E & F.Since E does not generate sufficient volume to fulfill theB is also a Pearl Bonus recipient.B's Pearl Bonus is based on the total BV of G, H & I :(420,000 420,000 420,000) X1% NT 12,6001% Minimum guarantee, the difference portion will bededucted from your Pearl Bonus.B's Pearl Bonus:E's Pearl Bonus is 0 because he does not have second〔(420,000 210,000 420,000) X1%〕 〔1% Minimumlevel 21% groups.guarantee NT 4,200–(210,000X1%)〕 NT 12,600Your Pearl Bonus:〔(420,000 420,000 420,000) X1%〕–〔1% Minimumguarantee NT 4,200–(210,000X1%)〕 NT 10,500E's Pearl Bonus is 0 because he does nothave second level 21% 0BV

2. A point value of 4 points is assigned for each1,000 BV per group for the first 1,250,000 BV; 2To qualify for the annually paid Emerald Bonus, a Directpoints are assigned for each 1,000 BV per groupDistributor must personally or foster sponsor three orfor the next 1,250,001 3,750,000 BV; 1 point ismore 21% groups in his own market, each of whichassigned for each 1,000 BV per group for the nextqualifies at the 21% Performance Bonus level at least3,750,001 6,250,000 BV and 1 point is assigned6 months during the fiscal year.for each 10,000 BV per group thereafter. Thiscomputation is made for each group.The Emerald Bonus is paid annually. Amway setsaside an amount equal to 0.25% of all qualified BV3. The total points for all groups of each participatingDownline from all qualified Emerald Direct DistributorsEmerald Direct Distributor are then added.in the market (including 0.25% of all Amway foreign4. Dividing the total fund available by the total pointssubsidiary volume traceable to Taiwan sponsorship,gives a NT value per point.provided that volume is only one country removed fromthe market). At the end of each fiscal year (August 31),5. The Emerald Bonus is then determined for eachthis fund is distributed among all the Emerald Directqualified Emerald Direct Distributor by multiplyingDistributors who qualify in the following manner:his points by the NT value per point.1. The annual qualified BV of each of the Emerald6. Payment for the fiscal year ending August 31 is sentDirect Distributor's groups, including the BV onout in late December.which the Emerald Direct Distributor has earned theLeadership Bonus, is added together.Calculation MethodAmway Fiscal Year : September 1 to August 31BV1 1,250,0001,250,001 3,750,0003,750,001 6,250,000over 6,250,001Point Value 4 Points /1,000BV 2 Points /1,000BV 1 Points /1,000BV 1 Points /10,000BVABCDTotal Points A B C DBonus of the qualified Emerald Bonus recipientEmerald Bonus FundTotal Points of allqualified Emerald Bonusrecipients Total Points of a qualifiedEmerald Bonus recipientAmway Business ManualEmerald Bonus23

Amway Business Manual24The Volume of an Internationally Sponsored 21% groupwill be calculated for Emerald Bonus twice: one for theFoster Sponsor and the other for the InternationallySponsor.Diamond BonusTo qualify for the annual Diamond Bonus, a DirectDistributor must personally or foster sponsor six 21%groups in his own market, each of which qualifies at the21% Performance Bonus level at least 6 months duringthe fiscal year.The Diamond Bonus is paid out of a fund consisting of0.25% of the total BV of all qualified Diamond Bonusrecipients, their personally, internationally and fostersponsored 21% groups in the market as the DiamondBonus Fund. The Volume of an Internationally Sponsored21% group will be calculated for Diamond Bonustwice: one for the Foster Sponsor and the other for theInternationally Sponsor (including 0.25% of all Amwayforeign subsidiary qualified volume traceable to TaiwanBonussponsorship, provided that volume is only one countryremoved from the market).The fund is distributed to eligible participants inaccordance with the same formula employed for thecalculation of the Emerald Bonus. The Diamond DirectDistributor who personally or foster sponsors at leastseven 21% groups, each of which qualifies at the 21%Performance Bonus level during 6 months out of thefiscal year can also share in the Diamond Plus BonusFund.

Example 1A Diamond Plus Bonus is paid to each Direct Distributor whoYou are a qualified Diamond Direct Distributor and have 8personally or foster sponsors 7 or more 21% groups whosegroups. Each of them achieved 21% Performance Bonusvolume qualifies for at least 6 months during a fiscal year.Level for 8 months during the same fiscal year. YourInternationally sponsored groups are not included in theDiamond Plus Bonus : Payment unit iscomputation and payments of the Diamond Plus Bonus. The8 Groups X 8 months X100 6,400 unit.bonus is paid according to the following method:Assuming the average bonus amount

doing so, the Amway Sales & Marketing Plan provides payment of a 4% Leadership Bonus to the sponsor. This Bonus is computed by Amway on the BV of each 21% qualifying group he or she personally sponsors. Under this system, a Distributor who personally sponsors at least one 21% Group and who achieves

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