BUSINESS MANUAL - Amway Australia · PDF fileTHE AMWAY® SALES & MARKETING PLAN The Performance Bonus Let’s say that during your first month you personally sell products...

AUSTRALIA & NEW ZEALAND

BUSINESS MANUAL

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

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.

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




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:


3% Performance Bonus on 800 BV = $24



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




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

THE AMWAY® SALES & MARKETING PLAN

RECOGNITION LEVELSLevels of Achievement

To recognise and reward the achievements of IBOs, AMWAY has an extensive awards and bonus system. Pins and plaques are

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

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 is accorded and are not based solely

on technical grounds.

Silver ProducerGold Producer

PlatinumRuby

Founders PlatinumFounders Ruby

Sapphire

Founders Sapphire

Emerald

Founders Emerald

Diamond

Founders Diamond

Executive Diamond

Founders Executive Diamond

Double Diamond

Founders Double Diamond

Triple Diamond

Founders Triple Diamond

Crown

Founders Crown

Crown Ambassador

Founders Crown Ambassador

LevelP

in Req

uirements

Bonus Q

ualification

Exclusive B

usiness Invitation

Perfo

rmance

Bo

nusLead

ership/

Fo

ster Bo

nusR

uby

Bo

nus*

Mo

nthly D

epth

Bo

nus

Em

erald

Bo

nusD

iamo

nd

Bo

nusD

iamo

nd

Plus B

onus

FAA

OTC

AN

ew P

latinum

Sem

inarA

MW

AY

A

chieversF

ound

ers C

ouncil***

SILVE

R P

RO

DU

CE

R1 Silver P

roducer m

onth•

••

GO

LD P

RO

DU

CE

R3 Silver P

roducer m

onths•

••

PLA

TINU

M6 Silver P

roducer m

onths•

••

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RU

BY

2 x Maxim

um Perform

ance B

onus, 1 month

••

••

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ND

ER

S PLA

TINU

M12 Silver P

roducer m

onths•

••

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UN

DE

RS R

UB

Y2 x M

aximum

Performance

Bonus, 12 m

onths•

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PP

HIR

E2 Q

plus 15%

- 6 months

••

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ND

ER

S SAP

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D6 Q

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S DIA

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ND

6 Q12 Leg

s or 8 FAA

points

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EC

UTIV

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IAM

ON

D9 Q

6 Legs or 10

FAA

points

••

••

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UN

DE

RS E

XE

CU

TIVE

DIA

MO

ND

9 Q12 Leg

s or 12 FAA

points

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s or 14 FA

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oints•

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points

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s or 27 FAA

points

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DE

RS C

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AM

BA

SSAD

OR

20 Q

12 Legs or 30

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points

••

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•

AW

AR

DS &

RE

WA

RD

S

* Rub

y is cond

itional. T

he IBO

must have 15,0

00

PV

. ** A

chievers requirem

ents are diff

erent glo

bally, b

ut it is for P

latinum and

above. P

lease refer to the term

s and co

nditio

ns on the fo

llowing

pag

e. *** F

ound

ers Co

uncil is qualifying

with 20

FAA

po

ints or q

ualified

/re-qualifi

ed at C

rown A

mb

assado

r.

• 1st tim

e Platinum

qualifi

cation

can be q

ualified

by ro

lling 12

mo

nths with 3 m

onths are

consecutive.

• P

latinum R

equalifi

cation are any

6 m

onths w

ithin Perfo

rmance

year.

• F

ound

ers Platinum

and ab

ove q

ualificatio

n are qualifying

w

ithin Perfo

rmance Year.

• A

ll Fo

unders q

ualificatio

ns can b

e qualifi

ed thro

ugh V

olum

e E

quivalency (V

E).

• E

merald

and F

ound

ers Em

erald

qualifi

cations can b

e achieved

by lo

cal and internatio

nal leg

s. Diam

ond

s and ab

ove q

ualificatio

n can be achieved

by

local and

international leg

s, with

at least 3 local leg

s as the base

(must b

e EB

R).

• E

merald

bo

nus must b

e an E

merald

Bo

nus Recip

ient (EB

R)

with at least q

ualified

3 local

legs.

• D

iamo

nd b

onus m

ust be an

Diam

ond

Bo

nus Recip

ient (D

BR

) with at least q

ualified

6

local leg

s.

• D

iamo

nd P

lus bo

nus must b

e an D

iamo

nd B

onus R

ecipient

(DB

R) w

ith at least qualifi

ed 7

local leg

s.

• FA

A m

ust be a D

iamo

nd B

onus

Recip

ient (DB

R) w

ith minim

um

of 8

.00

FAA

Leg C

redits (refer

to annual p

ublicatio

n of FA

A

Sched

ule).

TER

MS A

ND

CO

ND

ITION

S FOR

A

MW

AY

AC

HIE

VE

RS **

1. The A

MW

AY

Leadership

S

eminar (A

chievers) is not

part o

f the AM

WA

Y S

ales &

Marketing

Plan and

may b

e sub

ject to future m

od

ificatio

ns.

2. Achievers is strictly b

ased o

n invitatio

nal basis, no

t autom

atic up

on q

ualificatio

n.Platinum

IBO

s w

ill be assessed

to d

etermine

if he/she cond

ucts his/her b

usiness ethically, in accord

ance to

the letter and sp

irit of the

AM

WA

Y R

ules o

f Co

nduct.

3. The P

latinum IB

Os m

ust be

the owner o

r op

erator o

f the A

MW

AY

business. A

n inherited

business m

ay not b

e eligib

le fo

r invitation.

4. E

merald

Bo

nus / Reb

ate recip

ents can qualify fo

r A

chievers if they re-qualify

as Em

erald B

onus / R

ebate

recipents o

r achieve the req

uired targ

ets. Either

cond

ition ap

plies.


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

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 4% 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 4% 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 4%

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 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

4% Leadership Bonus Adjustment) on his 21% group as well as

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

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 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 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 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.

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 recipient leg = 1.5Diamond bonus recipient leg = 3.0

International Legs Leg Credits

No. 2 business with Q12 or Q12 VE1 = 1.0No. 2 Emerald bonus recipient business = 1.5No. 2 Diamond bonus 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. An IBOs Amway

Plan Presentation should be about how you are able to gain your

Financial Independence & Freedom and the ability to no longer

require a traditional job.

The Amway Sales and Marketing 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. Continue your role as leader, but at a

more relaxed pace. 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.

The benefits of an AMWAY Independent Business can be passed

on to the heirs of the original IBO only if someone has been

prepared and authorised to assume the position of the original

IBO. In short, an Independent Business can only be passed on to

another IBO. AMWAY has no legal obligation to continue paying

Performance Bonuses, 4% Leadership Bonuses, or higher award

bonuses to anyone other than an AMWAY IBO. This means either

the heir(s) or the administrator of the estate must already be,

or must become, an AMWAY IBO if the estate is to continue to

receive the benefits of that Independent Business.

It is obvious, therefore, that the original IBO must make

proper arrangements during their lifetime for the orderly and

legal transfers of ownership of their Independent Business

to their heirs. This is either by preparing the heirs to assume

responsibility, or by providing for an executor of the estate who is

an IBO, preferably a Platinum IBO. Or, alternatively by authorising

the executor to retain the services of an IBO, preferably a

Platinum IBO, to manage the AMWAY business during the

administration of the estate.

Unless a surviving spouse and/or the heirs of the deceased

IBO takes steps to take over the Independant Business and

operate it, the Independant Business will be moved up the line

of sponsorship to the next qualified sponsor. This is to ensure that downline IBOs will continue to receive proper service, training and

motivation. AMWAY will wait no longer than six months for the survivors to take appropriate steps before it moves the Independant

Business up the line of sponsorship to the next qualified sponsor.

In the event that the deceased IBO leaves no surviving spouse and leaves no Will under which his Independant Business is bequeathed

to his/her heirs, that Independant Business may be passed to the administrate appointed under the laws that govern inheritance in the

respective country.

It is true that an AMWAY business has some unique features, nevertheless, for purposes of preparing a Will, it should be treated in the

same manner as any other business. It is recommended that your legal advisor be made aware of the nature of an AMWAY business.

The bequest of an AMWAY Independant Business is more beneficial when the recipient has knowledge of and an interest in the

business and is familiar with the manner in which it should be operated.

Succession PlanningFor Succession Planning, there are few ways of operating the Independant Business to ensure the inheritable proportions are handed

down to your family/heirs accordingly. This can be done by:

(a) registering the IB as a legal entity; or

(b) to have the inclusion of a successor included on your IB, to a maximum or 2 IBOs listed on the IB; or

(c) For IBOs Platinum and above, the inclusion of additional IBOs for the purpose of succession planning as per the Rules of Conduct.

(d) integration of Independent Businesses of the Parent and Child where they are sponsor and frontline.

For further details of these options please contact Amway.

• Russia

• United

States

• Canad

a

• Brazil

• Arg

entina

• China

• Japan

• India

• Australia

• IndonesiaN

ew Z

ealand •

Singap

ore •• B

runei

• Vietnam

• Philip

pines

• Macau

• Nam

ibia

• Iceland

• Berm

uda

The Baham

as

Swed

en

Dom

inican Rep

ublic

Norw

ay

Puerto R

ico (USA

)

Finland

Saints Kitts &

Nevis

Denm

ark

Guad

eloupe

The Netherland

s

Cub

a

Guatem

ala

Haiti

El Salvad

or

Jamaica

Antilles

Caym

an Islands

Belg

iumG

uernsey

Hond

uras

Ang

uilla

Austria

Jersey Islands

Costa R

ica

Montserrat

SloveniaFrance

Panama

Martiniq

ue

ItalySw

itzerlandSp

ainPortug

al

Venezuela

Greece

Colom

bia

Dom

inica

Poland

Antiq

ua & B

arbud

a

Ukraine

Saint Lucia

Germ

any

Grenad

a

Czech R

epub

lic

Barb

ados

The Slovak Rep

ublic

Trininad &

Tobag

o

Hung

ary

Saint Vincent

Croatia

French Guiana

Rom

aniaTurkey

• Channel Island

s

• Taiwan

Malaysia •

Thailand •

Farrow Island

s •

Ireland •

United

King

dom

•

Korea •

Hong

Kong

•M

exico •

South Africa •

INTE

RN

ATIO

NA

L SP

ON

SOR

ING

Imp

ortant Note

Am

way p

rohib

its advertising

for lead

s

in foreig

n countries. Yo

u are advised

to

contact the lo

cal Am

way o

ffice since

regulatio

ns diff

er from

one co

untry to

another. W

e recom

mend

for yo

u to fully

understand

the legal req

uirements and

cultural persp

ective befo

re initiating

any spo

nsoring

activity.

Zero Tolerance Policy

Am

way has ad

op

ted a Z

ero To

lerance Po

licy

for all unautho

rised activities in uno

pened

markets. R

efer to w

ww

.amw

ayglo

bal.co

m

and fi

nd the list o

f countries und

er

“Cho

ose yo

ur country”.

International Sponsoring

In general, internatio

nally spo

nsored

21% leg

will result in an aw

ard/rew

ard m

onth fl

owing

back to

the International S

po

nsor. H

owever, in

situations w

here the award

flow

s back to

the

hom

e market o

f this 21% leg

, no sub

sequent

award

will b

e generated

to the Internatio

nal

Sp

onso

r from

the hom

e market.

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

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.

Business Relations/Sales DivisionThe Sales ( Business Relations) Division services IBOs through

sales support and activities. If you have queries about

your AMWAY business, first consult your sponsor or Platinum.

Then if you need further clarification, call the Sales Division at

AMWAY and speak to your Account Manager. The Sales Division

is also responsible for administrating the Sales & Marketing Plan.

The Sales team frequently organises forums and meetings.

Bonus Department Tracking of all award and GIP qualifications.

Business Administration Maintenance of IBO records.

Special Events

• Specialises in event management and incentive seminars.

• Organises all major ANZ events in the company, such as

AMWAY Achievers Program, Supertrip, New Platinum

Seminar and Business Presentation Updates.

Marketing DivisionThe Marketing Division manages the AMWAY products/brands

portfolio and its related product promotions.

Product Management

• Identifies and launches new products under coreline.

• Implements product promotions.

• Provides product information and answers product queries.

A B C

B #1 B #2 B #3

A B C

B #1 B #2 B #3


Conducts product surveys.

• Overall management of core business lines.

Training

• Offers a wide variety of courses on Amway products,

business and skill development.

• Conducts regular product workshops, demonstrations and

webinars

• Has an online learning environment to give you access to

courses anywhere, anytime.

• Employs naturopaths and beauty therapists as product

experts to handle your product enquiries.

Technical & Regulatory

• Insuring regulatory compliance of all Amway products.

• Provide product technical, quality and safety support for

consumer enquiries and complaints.

Distribution DivisionCustomer Service Provides one-stop service to IBOs and customers

on enquiries relating to operations and products.

After Sales Service

Provides after sales service to electrical products retailed by

AMWAY. These products are serviced by our team of technicians

as well as third party vendors.

Physical Presence and Logistics

• Manage RDCs and AMWAY Shop

• Manage physical facilities

• Provides delivery services

Communications Division• Produces all online and print business support

materials such as Product Brochures, Promotion and Display

materials, Program Flyers, Forms and Business

Kit components.

• Coordinates Amway communication to IBOs and Clients via

Social Media, Email and Smartphone applications.

• Manages the website, social media, audio-visual and digital

app content to ensure the latest info is available.

• Conducts Public Relations activities, Media campaigns

and Corporate Social Responsibility initiatives to promote

Amway’s profile and values in the industry and market.

• Creates and manages new communication methods, apps

and platforms to engage and support IBOs and Clients.

Business Conduct & Rules DivisionThe Business Conduct & Rules Department manages the AMWAY

Image and Reputation and supports the conduct of all IBOs.

• Upholding and supporting IBOs with Business Conduct

and Rules

• Working with affiliations through Accreditation Plus

with business support materials

• Supporting IBOs with legal matters relating to your

Independent 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

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.

Our Commitment to the CommunityAs a responsible corporate citizen, AMWAY™ believes in giving

back to society. To this end, the company had been supporting

various community service projects in the markets it operates.

In 2003, One By One was introduced to solidify AMWAY’s

community service especially in the area of children. In addition

to these corporate initiatives, AMWAY IBOs participate selflessly

in many community programmes through a strong spirit

of volunteerism.

As one of the world’s leading direct selling companies, AMWAY

and many of its affiliates take on a leadership role and participate

actively in the affairs of the industry through the national direct

selling associations in their respective countries.

Tips on Community relations

(1) Obey the laws of the community. Nothing harms your image

more than being someone who fails to obey the

laws set up for the whole of the community.

(2) Maintain ethical practices in business. One dissatisfied

customer can influence a whole neighbourhood against

you and your product.

(3) Maintain good relations with business people

in your area.

Dealing with the MediaNew challenges always accompany success. One such challenge,

spurred by AMWAY’s phenomenal worldwide growth, is providing

the media with accurate information about corporate and IBO

activities. AMWAY meetings that attract hundreds or thousands

of IBOs and the constant stream of new developments at all

levels make AMWAY especially interesting to news reporters.

As this growth continues and AMWAY becomes ever more

newsworthy, the likelihood of your being approached by the

media for comment or an interview also increases.

That’s where AMWAY’s executive staff can help. Being abreast

of current developments, corporate policy statements and vital

statistics, they can help you respond accurately and effectively

to the media with the information that reflects the commitment

and the concerns of AMWAY. To avoid inadvertently giving out

inaccurate information or finding that you are a part of a larger

story, you should refer all media requests to the Rules of Conduct

Department, AMWAY of Australia & New Zealand They deal with

the media on a regular basis and may know of other contacts the

reporter has made and may even have had previous dealings with

the same reporter or publication. Remember, anything you say

to the media may be printed or broadcast on radio or television.

A seemingly inconsequential remark made offhandedly during

an interview could create embarrassment and/or unfavourable

publicity later on. Do not commit to an interview on your own.

If you do agree to an interview, it’s a good idea to ask some

questions of your own first. What kind of story does the reporter

have in mind? A personal profile of you? An overall story on

AMWAY? A report on the direct selling industry? Find out before

the interview what information the reporter needs and then

contact the Rules of Conduct Department at AMWAY of Australia

& New Zealand. They deal with the media on a regular basis and

may know of other contacts the reporter has made and may even

have had previous dealings with the same reporter or publication.

AMWAY Market ResearchAMWAY conducts a continuing marketing research programme

to help develop and market new products and sales aids as well

as modify and improve existing products and materials.

An essential part of this research involves contacting IBOs in the

field, either by telephone or mail, in order to obtain their

opinions and ideas. Such research is usually conducted by

AMWAY employees.

Occasionally, on very large projects, AMWAY enlists the

assistance of independent marketing research companies.

It is AMWAY’s policy to notify IBOs in advance that they will

be contacted and that they should feel free to cooperate

with the caller.

Your cooperation with AMWAY’s marketing research programme

is appreciated as a valuable contribution.

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.

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 does carry product liability insurance which protects

both the company and IBOs where an injury or damage results

from a faulty product.

(4) 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.

(5) 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

We Welcome Your IdeasAMWAY IBOs, customers, and friends are welcome to submit new

product ideas to AMWAY.

Please write or send them to:

AMWAY of Australia,

Level 3 / 7-9 Irvine Place,

Bella Vista,

Sydney 2153

AUSTRALIA

To the attention of the Corporate Development Division.

BUSINESS MANUAL - Amway Australia · PDF fileTHE AMWAY® SALES & MARKETING PLAN The Performance Bonus Let’s say that during your first month you personally sell products...

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