UNDERSTANDING THE PLAN
THE FOUNDATION OF OUR BUSINESS
Your income
Promote quality products that people use every day. Earn in three ways:
• Retail margin from every Amway™ product that a rgistered customer puchases.
• Bonuses calculated from your business growth.
• Incentives rewarded as you reach key milestones in your business.
Retail margin
We provide registered customer prices for every product, which are 20% higher than your Amway Business Owner price. The difference between the ABO price and the customer price is the first part of your income: your retail margin.
Amway Business Owner price - ABOs pay a special ABO price for every product.
PV determines your qualification level
PV stands for Point Value. Nearly all products have a PV. The total PV of all product orders placed by you and the business group together for the month determines your bonus level. This table shows you the PV amount you need to earn per month in order to qualify for the different Performance Bonus percentages. Point values of individual products can be found online.
BV is used to calculate your Performance Bonus
BV stands for Business Volume. Nearly all products have a BV value, which determines the size of the bonus you will receive at a certain bonus percentage level.
Monthly PV |
Performance Bonus % |
| 10,000 PV | 21% |
| 7,000 PV | 18% |
| 4,000 PV | 15% |
| 2,400 PV | 12% |
| 1,200 PV | 9% |
| 600 PV | 6% |
| 200 PV | 3% |
Your Income example
When you calculate your bonus all you need to know is the total PV and BV of all your orders for a full month – that’s your sales volume. If you have sponsored a business group, you also need to know the volume of this group to calculate your overall bonus. You will discover there is a ratio between PV and BV. The total of all PVs determines your bonus percent level and the total BV determines the amount of bonus you can receive. If you have ABOs who are also eligible for a bonus it will be deducted from your gross Performance Bonus; they will not lose any of their achieved bonuses.
Let’s say your sales volume is 2,400 PV. Look back to the table to find your bonus percentage.
Your Performance bonus is 12%! Great job! Now we have all the information we need to see how much you’ll earn this month!
The example that follows is based on a PV / BV (PV / €) ratio of 2.21199 and a retail margin of 20%.
1Only those ABOs, who have sufficient registration of business activity with the local state and/or tax authorities, are eligible to receive bonuses and cash incentives as well as income deriving from retailing and can participate in business seminars such as NPS, LTS and DC. The same rules apply towards calculation of Member Plus discounts.
Assumes ABO performs consistently and meets requirements each month. PV/BV ratio of “2.21199" is used as an example only. For the currently valid PV/BV ratio please check Amway webpage or contact Customer Service.
You have earned a 12% bonus by selling products to customers and you have already sponsored 3 downlines (each with customers of their own) who are earning a 3%, 6% and 9% bonus.
Suggested Retail Margin4
20% x 221 BV = €40
Your Personal Performance Bonus
Your Group PV is 2,400 PV/5,309 BV (200 personal PV/442 BV, plus 300 PV/664 BV from sponsored ABO A, 700 PV/1,548 BV from ABO B and 1,200 PV/2,654 BV from ABO C)
221 Personal BV
X 12% Performance bonus
_________________________
= €53
³This calculation is for estimation only, may vary depending on actual circumstances and can contain out-of-date information. Information is for illustration only and neither constitutes a promise, guarantee nor other bonus payment obligation by Amway. Income calculation results are gross and do not consider expenses and taxes related to the Amway business.
4This calculation with suggested 20% retail margin is based on ABO price.
The Differential Bonus is the Performance bonus percentage difference between you and your direct downline ABOs. How to calculate it: your percentage bracket minus the downline ABOs percentage bracket is the differential percentage. If you take the downlines’ group BV x differential percentage, you can calculate your differential bonus.
Your Differential Bonus from A = €60
(9% x 664 BV = €60)
Your Differential Bonus from B = €93
(6% x 1,548 BV = €93)
Your Differential Bonus from C = €80
(3% x 2,654 BV = €80)
Your Monthly Income
Retail Margin + Your Personal Performance Bonus + Your Differential Bonus €44 + €53 € + €232 = €330
Your Yearly Income
€330 x 12 = €3,955