Amway is 60 years old. It is the top company in the MLM Industry. Amway has built a fine reputation in the Network Marketing Industry. It is one of the biggest names today. They have made over 8 billion dollars. This company is the oldest and has made more money.
Amway Compensation Plan
- Your immediate income – this just means that you purchase Amway products at a discounted price and then sell them at the suggested retail price. The good thing about this is you get to decide how much you want to sell your products for. The profit you will get totally depends on you.
- Performance Bonus (PB) – For every sales you get, you receive a corresponding commission. Your Amway MLM starts growing with the PB, especially when you start forming your downlines.
To better understand how the Performance Bonus works, let’s first breakdown some of the terms they use: Point Value (PV) Each time you purchase Amway products– whether for your own use, or resale – you get a Point Value (PV). PVs are simply assigned points to each Amway product. Business Volume (BV) Business Volume is just the value in dollars assigned to each product. BV is determined by the number of orders you or your team makes. Performance Bonus Schedule (PBS) This is a table of your PVs with their corresponding percentages. The more points you have, the higher Performance Bonus you’ll get.
Performance Bonus Schedule
7500 or more PVs 25% PB (your commission)
6000- 7499 23%
4000-5999 21%
2500-3999 18%
1500-2499 15%
1000-1499 12%
600-999 9%
300-599 6%
100-299 3%
Pass-up Volume (PUV) Pass-up Volume (PUV) is the BV of each of your frontline, meaning the sales made by the first people you recruited in your Amway team. This value is added to your own BV in calculating your Gross Performance Bonus.Performance Bonus (PB) One of the requirements in moving up your MLM business is having a good Performance Bonus. PB is the commission you get from your BV. To get your PB:
PB = BV x PBS
Simply put, if you have 2500 PVs, you get 18% PB basing on the PBS. That means a BV of $5000 gets you 18% commission, which is equivalent to $900. That’s not including your immediate income yet. I wish Amway’s compensation plan was as simple as that. However, remember that when you have a team, you also earn from their performance. Once you have downlines, their compensation plan has additional computations.
Following are approximate percentages of IBOs in North America who achieved the illustrated levels of success in the IBO Fiscal Year ending August 31, 2016: New IBO Incentive 36.3695%, First Step Award 4.3107%, Balanced Sponsor Award 2.8588%, Mentor Award 1.1171%, Platinum first year 0.2353% and second year 0.0925%, Founders Platinum first year 0.1422% and second year 0.0813%, Emerald first year 0.0201% and second year 0.0041%, Founders Emerald first year 0.0092% and second year 0.0038%, Q12 Incentive 0.4683%, 7500 PV 1.6247%, 12,499 PV 0.1718%, 14,999 PV 0.1033%, 15,000 PV 0.1033%, 108,000 annual Personal Group (PG)/Ruby Volume 0.1607%, 36 Qs 0.0730%, 54 Qs 0.0147%, 72 Qs 0.0159%, 108 Qs 0.0029%, and 144 Qs 0.0022%