THREE WAYS TO MAKE MONEY

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1 Start Making Money THREE WAYS TO MAKE MONEY There are three ways you can make money with Amway: Available Retail Margin. This is immediate income from products you sell. Monthly Performance Bonuses. These are broken down into two categories: Your personal performance bonus. Your group s performance bonus. Growth Incentives: special cash incentives offered by Amway. The average monthly Gross Income for active IBOs in the U.S. was $202. Approximately 46% of all IBOs in the U.S. were active. IBOs were considered active in months in 2010 when they attempted to make a retail sale, or presented the Amway IBO Compensation Plan, or received bonus money, or attended an Amway or IBO meeting. If someone sustained that level of activity every month for a whole year, their annualized Gross Income would be $2,424. Of course, not every IBO chooses to be active every month. Gross Income means the amount received from retail sales, minus the cost of goods sold, plus monthly bonuses and cash incentives. It excludes all annual bonuses and cash incentives, and all non-cash awards, which may be significant. There may also be significant business expenses, mostly discretionary, that may be greater in relation to income in the first years of operation. MORE INFO Take the Making Money online course at Amway.com > The Learning Center > search for: making money. Making Money 1

2 Available Retail Margin IMMEDIATE INCOME THROUGH AVAILABLE RETAIL MARGIN The first way to make money is through available retail margin. The fastest way you can earn income is by selling products to customers at Suggested Retail Price.* Suggested Retail Price IBO Cost = Available Retail Margin Example: NUTRILITE Rhodiola 110 Supplement Blister Pack $21.45 Suggested Retail Price IBO Cost = $7.52 Available Retail Margin Amway will credit your Amway Citibank Prepaid Card, or any other payment method you selected after registration, for Retail Margin. *Prices are subject to change. For most current pricing, visit Amway.com. MORE INFO Learn more about the Amway Citibank Prepaid Card; log on to Amway.com as an IBO and search for: prepaid card, then click on Resources in the column on the left. 2 Making Money

3 Monthly Performance Bonuses MONTHLY BONUSES As you build your business through selling products and helping other IBOs you sponsor do the same, you may earn: Monthly Performance Bonuses based on how much you sell. Monthly and annual Leadership Bonuses based on the sales of downline IBOs. As your sales volume increases and the sales volume of downline IBOs increases the potential for cash awards and business incentives increases. The amount of your performance bonus is determined by PV and BV. PERFORMANCE BONUS SCHEDULE calculated monthly If your monthly PV is: Your Monthly Performance Bonus is: % of your BV % of your BV % of your BV 1,000 1, % of your BV 1,500 2, % of your BV PV AND BV All the products you sell are assigned a Point Value (PV) and a Business Volume (BV). Monthly Performance Bonuses are calculated using the PV and BV you accumulate through your purchases, the purchases made by your customers, and those made by IBOs you sponsor. PV BV Point Value (PV) Business Volume (BV) Assigned to every A dollar value for every product. Amway product. 2,500 3, % of your BV 4,000 5, % of your BV 6,000 7, % of your BV 7,500 or more 25% of your BV You accumulate PV and BV on the products you order, as well as those ordered by downline IBOs and customers. PV determines your bonus percentage. The more PV you and IBOs that you ve sponsored earn monthly, the higher your percentage bracket. BV determines the dollar amount that your percent of bonus is applied to. Because bonuses are calculated monthly, PV/BV accumulates only in the month it is earned. Balances are not carried forward from month to month. Making Money 3

4 Performance Bonus Calculation Performance Bonuses are available each month and are a key source of income for many IBOs. They are calculated using PV/BV earned by you and downline IBOs. The examples below show how building a balanced business can help you earn more money. YOU WITH 3 DOWNLINE IBOS Assume that in one month: You reach 150 PV and $435 in BV from product purchased by you and your customers, putting you at the 9% bonus level. 3 downline IBOs do the same. Personal Performance Bonus Your group PV is 600 (150 personal plus 450 from downline IBOs you personally sponsored). Your Performance Bonus is 9% (see chart on page 3). Illustration Key You IBOs you sponsor/ train/support X $435 Personal BV 9% Performance Bonus $39 Personal Performance Bonus 4 Making Money

5 Differential Bonus Calculation Your Differential Bonus You can earn another monthly bonus, called a Differential Bonus, if you have personally sponsored and mentored downline IBOs. (To qualify, you need to satisfy the Customer Volume Rule.*) In this example, based on the performance of downline IBOs you sponsored, you will earn: $435 in Group BV (the difference between your 9% bonus X 6% level and downline s 3% bonus level) $26 Differential Bonus x 3 downlines = $78 YOUR TOTAL PERFORMANCE BONUS $39 Personal Performance Bonus + $78 from downline s performance $117 PAID TO YOU! *To satisfy the Customer Volume Rule, you must do one of the following: Have at least one sale to each of 10 different retail customers, or Have at least 50 PV of sales to any number of retail customers. For the complete Rule, see the Rules of Conduct found in the Business Reference Guide included with your Welcome Kit or online at Amway.com. Making Money 5

6 Bonus Payment and Product Profitability BONUS PAYMENTS For any calendar month in which a Monthly Performance Bonus is earned, payment is issued on the 15th of the following month. For your convenience, the Amway Citibank Prepaid Card gives you immediate access to your bonus money. For more payment options, log on to Amway.com as an IBO and go to My Accounts > Bonus Payment Method. See pages 4 and 5 of this section, as well as the Business Reference Guide included with this kit, for more details on performance bonuses. PRODUCT PROFITABILITY Product profitability plays a huge role in how large or small your bonus payments are. In the Products section, look for this notebook to see how profitable each product line can be for you. PROFITABILITY BY PRODUCT CATEGORY Amway products are divided into three categories: Product Category Available Retail Margin* BONUS Most IBOs build their retail business by focusing on these top two categories. 1. Win 35% highest All Win products come from the NUTRILITE and ARTISTRY brands. Win products have the highest Available Retail Margin and profitability. 2. Complement 15 35% Includes some NUTRILITE and ARTISTRY products. 3. Convenience 8% Convenience products offer a way to build your monthly PV/BV with products you and your customers use every day. lowest *When you sell products at Suggested Retail Prices. As we introduce Amway product lines in the Your Products section, you ll see which ones have the greatest profit potential. Using this information, you can decide which products you ll focus on in building your retail business. 6 Making Money

7 Growth Incentives The third way IBOs make money in an Amway business is through Growth Incentives for remarkable achievements of business success. There are two types of Growth Incentives: Monetary one-time cash awards. Nonmonetary, such as conference trips. These incentives and awards are based on pin recognition levels and are in addition to the IBO Compensation Plan. MORE INFO Learn more in the Growth Incentives Brochure. Log on to Amway.com and search for: growth incentive brochure. Get an overview of the Compensation Plan by taking the Making Money Course online at Amway.com > The Learning Center. Making Money 7

8 Recognition Levels Start here: RECOGNITION OF YOUR ACHIEVEMENT As you build your business you ll earn pins, certificates, and awards, and be recognized for your achievements in ACHIEVE magazine and on the web at AchieveMagazine.com. Silver Producer Gold Producer Platinum Founders Platinum Ruby Diamond Founders Ruby Founders Diamond Sapphire Executive Diamond Founders Executive Diamond Founders Sapphire Emerald Double Diamond Founders Double Diamond Triple Diamond Founders Emerald Founders Triple Diamond Crown Founders Crown MORE INFO Learn more about recognition levels. Log in to Amway.com and search for: leadership pin levels. Crown Ambassador Founders Crown Ambassador 8 Making Money

9 Rewards and Recognition REWARDS AND RECOGNITION FOR YOU Every year, thousands of Independent Business Owners in North America earn cash rewards for their outstanding achievements. These include cash rewards that range from $25,000 to $250,000. Many also earn memorable business incentive trips to some of the world s most treasured travel destinations. Where can your Amway business take you? INCENTIVE TRIPS New Platinum Conference When you qualify at the Platinum level, your all-expenses-paid incentive journey begins. New Platinum Conference, in partnership with your IBOAI business affiliation leaders, provides you with in-depth training into how to optimize your income and recruiting efforts. Combine the training with incredible parties and entertainment, on-stage recognition, meetings with Amway executives and national account representatives and IBOAI leaders, and you have a packed three-day business conference that you won t want to miss. ACHIEVERS 2012 Achievers will be held at one of the finest resorts in the nation: the Gaylord National, an 18-story, 1.5-acre, glass-covered atrium offering stunning views of the Potomac River. Those who qualify will be taken on an incredible journey as they take in all of the fantastic parties, exclusive tours, and memorable experiences that Washington, D.C., and the Achievers program have to offer. Achievers The largest Amway business conference of the year. Achievers takes an ordinary business conference and makes it exclusive by adding firstclass hotel rooms, meals, parties, activities, top-name entertainment acts, celebrities, prize giveaways, and so much more. Mixed in with these exclusive experiences you ll find what you really came for: recognition, inspiration, and tools and training to take home to your groups and take your business to the next level. This four-night trip is paid for by Amway for your hard work and dedication. MORE INFO Find out about additional incentive business conferences such as Diamond Club, which is held in Maui each year. Log in at Amway.com > business center > events. The average monthly Gross Income for active IBOs in the U.S. was $202. Approximately 46% of all IBOs in the U.S. were active. Making Money 9

10 Making Money Notes GET INSPIRED! Read about Amway s successful IBOs their stories, their experiences, their accomplishments. Go to AchieveMagazine.com. 10 Making Money 2012 All rights reserved. Printed in the USA. L4092ENE