NEW MARKET NEWS VIETNAM ISSUE #2 JANUARY 15, 2008 Overview Market Restriction Reminders for International Sponsors Opening Events and Activities Facilities (Headquarters/RDC/Training Center) Preparing Your Vietnam Prospects Product Information MARKET RESTRICTION REMINDERS FOR INTERNATIONAL SPONSORS Amway values the extensive experience and guidance foreign leaders bring to a new market such as Vietnam. However, we caution you before you expend significant financial resources and time to carefully consider the unique positioning of this market. Like China, Vietnam is a highly regulated market where the consequences of breaching the law and regulations can be quite extreme. The Vietnamese government will move quickly to remove any perceived threat to social order. The entire sales force, local and foreign, will be held to a strict standard of conduct and will comply with both the letter and the spirit of the Rules established by Amway as well as the Laws and Regulations of the country of Vietnam. Amway is committed to responsible growth in Vietnam and while all of our leaders are welcome to participate with us, any violation of the Rules or these laws will require us to take immediate and significant action, including sanctions both in your home market and with the International Sponsoring Linkages that you have established in Vietnam. We remind you of the following: The use of curiosity approach, any misrepresentation and inappropriate claims are strictly prohibited at any time in Vietnam. Amway Vietnam is the exclusive provider of training and all materials to support the building of the Amway Business Opportunity. No Distributor or third-party produced BSMs are allowed in Vietnam. This includes, but is not limited to, conducting training or collecting fees for training. Only Amway produced materials (Opportunity Brochure or Opportunity Powerpoint) may be used to promote the Amway Business Opportunity. International Sponsors are not allowed to be involved in any form of multi-level marketing business activities including, but not limited to: sponsoring, holding meetings (in hotel rooms, etc.), setting up of meeting centers, retailing, or conducting training. 1
We encourage you to internationally sponsor distributors in the same alignment as the line of sponsorship in your home market. The company prohibits international leaders from soliciting leaders or Distributors in other Lines of Sponsorship. Please be advised that solicitation including but not limited to offering of incentives to Distributor of another LOS is unethical behavior and will jeopardize the good standing status of an Amway leader. To protect Amway's reputation and interests, International Sponsors in Vietnam may be subject to mandatory sanctions should they violate the Rules of Conduct or any Amway policy or procedure in the Vietnam market. LOS Maps and Mailing Labels will only be available exclusively to local Vietnam Distributors. International Sponsors are not eligible to receive LOS Maps or Mailing Labels. In the first 6 months of business of Performance Year ending August 2008, no FAA points will be generated out of Vietnam. Award qualification and bonuses of Emerald and above will also not be recognized in the Vietnam market. However, qualifications below the Emerald level, i.e. up to and including Sapphire will be recognized. AMWAY VIETNAM OPENING EVENTS AND ACTIVITIES At the launch of Vietnam, activities, events and facilities will only be in Ho Chi Min City. A facility in Hanoi will be available some time in 2008. The following opening events and activities will be offered at the Phu Tho Stadium in Ho Chi Min City per the dates identified in the Market Opening / Events section below: Amway Business Kits and Optional Product Bundles International Sponsor Meetings Welcome To Amway Meetings Amway Exhibition Training Meetings Application Submission/Review Amway Business Kits and Optional Product Bundles Amway Business Kits cost VND 187,000 (including VAT), will include the following: Welcome Letter Introductory Booklet Amway Opportunity Brochure Amway Product Brochure Amway Business Manual Amway Distributor Price List Amway Customer Price List Receipt Pad Training Flyer Plastic Folder Application Form/Distributor Contract Business Kits will be available for sale from February 27, 2008 at the Phu Tho Stadium during the market launch with a purchase up to 20 kits per person (Vietnamese Citizens only). 2
Product Bundles (Optional) Two optional product bundles are only available for purchase at the Stadium, and are limited to one of each per Amway Vietnam Distributor: Product PV BV Distributor Price Nutrilite Bundle (2 items) 1. Nutrilite Bio C Plus (100 tab) 2. Nutrilite Daily (60 tab) 33.15 365,000 401,500 VND (including VAT) Home Care Bundle (3 items) 1. Amway Dish Drops (1L) 2. Amway LOC (1L) 3. Amway Squeeze Bottle 16.60 191,000 210,100 VND (including VAT) Market Opening Events The following meetings are subject to change. For additional details and updates, please check the Amway Vietnam website at www.amway.com.vn. International Sponsor Meetings (ISM) February 26, 2008 (Venue and time to be advised on the Vietnam website (www.amway.com.vn), GBISLink (www.gbislink.com) or by contacting your affiliate support staff.) The International Sponsor Meeting is recommended for all International Sponsors who wish to receive business information on the new market. English, Chinese and possibly Thai and Korean depending on interest. Welcome to Amway Meetings (in Vietnamese only) February 27 March 4, 2008 The Welcome to Amway Meetings are opportunity meetings for prospects and provides an introduction to Amway Corporation, Amway Vietnam, the Amway Business Opportunity, Product information and Vietnam compliances. The Amway Exhibition February 27 March 4, 2008 The Amway Exhibition is a showcase of The Amway Story. Take a visual tour of how the Co- Founders began the business, to the Manufacturing and R&D support efforts that go into producing the exclusive Amway Products. View the product range that will be available in Vietnam and learn more about the Amway Opportunity. Open daily from 8:00 am 7:30 pm Product Experience Overview (PEO) March 2, 3 & 4, 2008 Get a head start into the business by discovering great products that offer results. Learn how to use and retail them correctly. Hear from an expert speaker from Amway Corporation. 3
Getting Started Meetings (GSM) (in Vietnamese only) March 2, 3 & 4, 2008 An introductory training for new Vietnamese Distributors on topics such as, Goal Setting, basic Sales & Marketing Plan, How to Order, Amway Rules of Conduct, etc. Calendar in Summary 26 FEB 27 FEB Tues Wed Exhibition 28 FEB Thu 29 FEB Fri 1 MAR Sat 2 MAR Sun Meetings ISM WTA WTA WTA WTA WTA PEO GSM Kit/Prod 3 MAR Mon WTA PEO GSM 4 MAR Tue WTA PEO GSM AMWAY FACILITIES The Amway Vietnam Office and Regional Distribution Center (RDC) are a combined facility located in District 3 in Ho Chi Min City. A separate Amway Training Center (ATC) is located in Binh Thanh District. Maps to the Amway Vietnam Office/RDC and ATC along with contact information will be available on the Amway Vietnam website (www.amway.com.vn). The training schedule and venue will be announced in the Vietnam website and posted in the RDC. Distributor need to register via the website or at the ATC prior to the training. The types of training offered at the ATC and other designated venues are: Welcome to Amway Meetings (WTA) Getting Started Meeting (GSM) Product Experience Overviews (PEO) These are weekly meetings on a variety of topics with greater focus on product knowledge, usage and selling tips. Selling, Sponsoring and Servicing - A series of workshops to help Distributors to acquire these skills which are the cornerstone of building a successful business. Mandatory Training This training will be by invitation from the Amway Vietnam for new qualifiers. Recognition for Silver Producer and above qualifications will only be accorded upon satisfactory completion of mandatory training. 12% Training To help emerging leaders on their way, this training covers key topics to strengthen their understanding of the Amway Business Silver Producer Meetings A full-day Workshop providing a more in-depth grasp of the roles and responsibilities of new leaders and the Amway Rules of Conduct. Leadership Workshops A program for all newly qualified Platinums Please visit www.amway.com.vn mid February for training dates and times. 4
New Market Staff Introduction We are pleased to introduce some of the members of the Amway Vietnam Management Team: Low Han Kee How Kam Chiong Chen Sen Lin Tony Trieu Nguyen Khoa My Ng Sun Lin Jenny Nguyen Thu Thuy Managing Director Country Manager Operations Director Sales and Marketing Manager Public Affairs Manager Finance and Administration Manager Communications Manager PREPARING YOUR VIETNAM PROSPECTS With today s telecommunications (internet, phone, fax, etc.), you can stay in touch with your Internationally Sponsored prospects, providing guidance counseling on a one-on-one basis, without all the added cost of traveling to the market. In order to prepare those who you will be Internationally Sponsoring for the launch of Vietnam, Foreign Distributors may help to communicate the market details below. You are also encouraged to have your prospects attend launch meetings conducted by Amway at the Phu Tho Stadium (noted in this publication). Support staff will be available for questions and to assist them when completing their Distributor application processing. Who can be an Amway Vietnam Distributor? An individual who is a Vietnamese Citizen with a valid ID Card Husband and wife distributorship requires that both are Vietnamese Citizens Legal entities, such as corporations and partnerships are not allowed An applicant must be at least 18 years old An applicant must not be a full-time student Not convicted of a felony Distributor Application Processing/Completion In order to complete the Distributor Application, Vietnam prospects will need to present the following documents: A copy of their valid Vietnam ID Card 3 copies of 3x4 cm size photos of the applicant If the spouse is a Vietnam citizen, to also submit a copy of his/her valid Vietnam ID and 2 copies of 3x4 cm size photos If the spouse is not a Vietnam citizen, he/she will not be permitted to be added to the Distributorship Business Kit cost: 187,000 VND (including VAT) It is important to inform your Internationally Sponsored person in Vietnam to complete the International Sponsor section on the Distributor Contract with your name and Distributor number as the International Sponsor. (Failure to complete this process may lead to broken linkages and lost downline.) Amway Distributor Identification Cards will be sent via mail. 5
Ordering Information Amway Vietnam Distributors may place an order by presenting their Distributor ADA card or a copy of the SA88 Distributor Application. Orders may be faxed or placed at the RDC. Online ordering will not be available at launch. Orders must be paid in cash in the local currency (VND). No credit cards, cash cards or debit cards will be accepted. Payment must be made upfront for walk in orders or when paying for fax orders prior to order being gathered. PRODUCT INFORMATION Vietnam is a unique market for products. With Amway Vietnam s commitment to the marketplace by manufacturing 100% of the products sold in Vietnam, high quality products such as the Nutrilite product line will be introduced. All product lines will be supported by ongoing workshops, materials, training and expert product speakers. Artistry Skin Care products will be available in the next wave of product offerings four months after launch. 6