Amway Compensation Plan
The Path to Success in Amway
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Two Ways to Make Money
The Amway Compensation Plan allows for 2 ways to make money on Amway products obviously a combination of the both is most profitable and advised by the company.
Method 1-30% Retail markup on products
As an IBO (Independent Business Owner) you get up to 35% discount on Amway products. When you get customers to buy your products you can charge them full price which puts that 30% into your pocket. The full price is market-competitive and charging your customers full price is your choice. Many IBO’s choose to give 10% discount to please the customer and the IBO still keeps the remaining 20% plus the PV which we will cover next!
Method 2- Amway compensation plan bonuses
The Amway Compensation Plan is simple. Each product has a value called business value (BV) and a point value (PV). The Amway exclusive products such as the Artistry, Nutrilite, Legacy of Clean, XS energy and eSpring have higher PV and BV than products from partner stores.
How much BV is accumulated within a month determines how much money you will make. The PV determines what percentage of the BV your bonus will make up. So the higher the PV and BV the bigger that check will be. For IBOs the PV and BV of each product is listed on the website and seeing your monthly PV and BV is easily accessible in the Business Center tab.
Putting the Amway Compensation Plan to Work
Step 1. Replace your supermarket with your own Amway store. This doesn’t mean spend all your money on Amway products, YOU DON’T HAVE TO BUY ANY PRODUCTS IF YOU DON’T WANT TO.
But the question is: “HOW will you sell something that you don’t use yourself?” You won’t unless you’re a really good at manipulating people. By owning and using Amway products, you are saving money and getting great products. You can sell the products with confidence because you use them.
When starting out it is best to replace your supermarket with your own Amway store because your supermarket doesn’t pay you to shop and they don’t give you up to 30% discounts at all times.
Step 2. Tell people you know about your online store. The products are rated far beyond products in supermarkets so there is no reason to be shy about sharing great products. By telling people you know they will try the products and replace their supermarket with your Amway store. They can get their own store by signing up with you in Amway.
Amway Review-The Path to Success
Amway and INA has a system that most IBOs follow to grow their business as fast as possible!
Step 1: A Brand New IBO replaces their supermarket and shops in their own Amway store. Also by telling others about the Amway items IBOs could possibly get clients making retail profit additionally for their PV bonus. Step One involves producing enough sales monthly to access least 100 PV which is equivalent to about 300 BV to obtain the minimum bonus of three percent.
Step 2: By telling others of the financial opportunities the Amway compensation plan offers, you sign-up a minimum of 6 new IBOs to your team. Your team goes through the first step and your team of 7 individuals produces 100 PV each which adds up to 700 PV which qualifies you for that 9% Bonus.
Step 3: The six IBOs inside your team decide to expand plus they each register a minimum of 4 new IBOs to their team. The new IBOs in all of their teams undergo step one and which means you will have 31 IBOs inside your team all getting 100 PV every month adding up to 3100 PV which places you in the 18% bonus level.
Step 4: PLATINUM STATUS-The IBOS at the bottom expand their business too, each getting a minimum of two IBOs and which now means your team has 79 IBOs that altogether generate 7900 PV which will get you the greatest Bonus degree of 25%. Remaining in the 25% level for 12 weeks provides you with what’s known as a platinum status. For every year you’re a platinum Amway provides you with a $20,000 bonus along with a 4 day compensated vacation. Together with your performance bonus of 25% as well as your annual $20k bonus annual earnings is all about 58k for that year.
Step 5: Staying at your platinum status using the free vacation and 20k bonus will clearly get the 6 direct IBOs in your team motivated to becoming platinums as well. When your 6 IBOs attain platinum status their BV and PV is no more linked to your group, but for EACH IBO that reaches platinum status Amway provides you with a 4% bonus of the IBOs BV. At step 4 your IBO’s have 23,700 BV then 4% is about $948. So you receive a bonus of $948 every month out of each direct IBO that becomes a platinum.
DIAMOND STATUS: When you are a platinum and so are your 6 direct IBOs you’ve arrived at DIAMOND status. Besides the high earnings Amway diamonds have outlandish perks like holidays and also you get massive exposure through the organization by posting your story in Achievers Mag that 3 million Amway IBOs see as motivation to grow their business. The diamond status is the ultimate goal that IBO’s have because it means financial freedom and the business will grow on autopilot from there because your downline wants diamond status as well. The Amway compensation plan rewards the best when it shows you have done some serious work such as building a large and prosperous team.
Other Important Information
Beyond Diamond: The earnings potential with Amway doesn’t have a cap therefore the more IBOs in your network and more importantly the more sales are made the cash keeps rising. I’m not going to enter the particulars of the many statuses above Diamond since it is overwhelming and it is advisable to learn the basics first.
Pyramid Scheme: Amway’s background: Existed since 1959, contained in 97 nations, 11 billion in sales, 13000 IBOs that are millionaires or higher, worldwide research labs and institutes for product engineering and research, 7,283 acres of Food and drug administration licensed fields in US, Mexico and Brasil.
In re Amway Corp. (93 F.T.C. 618; full name In the Matter of Amway Corporation, Inc., et al.) is a 1979 ruling by the United States Federal Trade Commission concerning the business practices of Amway, a multi-level marketing (MLM) company. The FTC ruled that Amway was not an illegal pyramid scheme. The FTC stated Amway was not an illegal pyramid scheme since the Amway system is based on retail sales to consumers. Amway has avoided the abuses of pyramid schemes by:
- not requiring an entry (“headhunting”) fee;
- making product sales a precondition to receiving the performance bonus;
- requiring the buying back of excessive inventory; and
- requiring that products be sold to retail consumers.
The administrative law judge also found that “Amway is not in business to sell distributorships and is not a pyramid distribution scheme.”
In the opinion section of the ruling, Commissioner Robert Pitofsky stated: Two other Amway rules serve to prevent inventory loading and encourage the sale of Amway products to consumers. The “70 percent rule” provides that “[every] distributor must sell at wholesale and/or retail at least 70% of the total amount of products he bought during a given month in order to receive the Performance Bonus due on all products bought….” This rule prevents the accumulation of inventory at any level. The “10 customer” rule states that “[i]n order to obtain the right to earn Performance Bonuses on the volume of products sold by him to his sponsored distributors during a given month, a sponsoring distributor must make not less than one sale at retail to each of ten different customers that month and produce proof of such sales to his sponsor and Direct Distributor.” This rule makes retail selling an essential part of being a distributor. The ALJ found that the buyback rule, the 70-percent rule, and the ten-customer rule are enforced, and that they serve to prevent inventory loading and encourage retailing.—— 93 F.T.C. 618: Opinion, page 716
FACTUAL PLAN EXPLAINATION: Amway IBOs receive commissions from the sales of items and then the Amway compensation plan is legal in every way. Also if someone is in your downline that does not necessarily mean you’ll make more than them. If a person inside your network is selling more than you or created a team that sells more than your team, they will make more money. Money is made of sales of the IBO and their team.
As proven within the slide below should you register David and David registers Peter, who is in David’s downline, is now a diamond while david is not. Peter is getting more money than David because he has a bigger team that is selling more of the products. This is when the pyramid plan accusations break apart because IBOs who continue to work harder than their sponsors will earn more money. According to the Amway compensation plan, the sponsor gets the 4% bonus but that comes from Amway and doesn’t effect the downline IBO’s income.
This is the recommended process that many IBOs follow because it allows for the IBO to get the most out of the Amway compensation plan. However many IBOs structure their network in a different way which can lead to problems for example unfair distribution of bonuses. So it seems sensible to follow along with this plan of action because it has introduced success to a lot of people.
The INA E commerce System and
INA and RIOT Training System
There are a lot of people who oppose the Amway compensation plan because they feel it rewards the ones who have bigger teams too much while the beginners make little money. In our opinion, the bigger teams deserve the bigger money because they DEDICATED THEIR TIME AND EFFORT TO BUILDING THOSE TEAMS.
This does however result in many people quitting or simply being inactive, most people lack the will power to work for something that pays off big later on, people want instant gratification.
The challenges in the Amway compensation plan and business model
The company does not use ALL available marketing resources for getting sign-ups. The model has always been to make a list of the people you know and get them to join you. The challenge is: “what if that list is real small and no one joins then what?”
The Amway compensation plan and business model may lack a SYSTEM that works for you of getting new sign-ups and training them consistently. Many IBO’s quit after their list runs out because they don’t follow the system.
The ALL IN ONE SOLUTION — INA and RIOT
The Reitenbach Institute works with Internet Associates to offers an online marketing platform that helps get more sign-ups in a day that a non-participating IBO would get in months of meetings or other offline methods. This system helps you can reach and INTERNET AUDIENCE that is ENORMOUS and WORLDWIDE.
The Reitenbach Institute and INA use a simple 3-step system of daily Internet use, telling others, and getting paid.
- Daily Internet use is easy with the completely setup system that would cost thousands of dollars and months of work to create on your own.
- Tell others, use social media and search engine optimization to get tons of people visiting your blog EVERYDAY and joining your team.
- Getting Paid.
THE system is set-up for immediate use so as soon as you join you can start getting more sign-ups, building massive teams almost automatically and getting paid.
With the Reitenbach Institute-INA network the SYSTEM does the work. You receive training from the BEST INA pros. They will teach you how to use the INA system effectively to start getting big results.
THIS SYSTEM is worth TENS OF THOUSANDS, and it would still be worth it, but the INA founders made the system so everyone who is struggling can use the system and better their lives fast. For only a few dollars a month you can use the INA system to start establishing yourself online and building your team. If you enjoyed and learning this important information on the Amway compensation plan and INA System please share it THANK YOU. For more information call 650-992-3939