Understanding the Plan
The foundation of our business
Promote* quality products that people use every day. Earn in three ways:
- Retail margin from every Amway™ product that a registered customer purchases.
- Bonuses calculated from your business growth.
- Incentives rewarded as you reach key milestones in your business.
*Only Amway Business Owners who have sufficient registration of business activity with the local state and tax authorities are eligible to receive any income deriving from business.
We provide retail prices for every product, which are 10% higher for your registered customers than your Amway Business Owner price.
The difference between the ABO price and retail price is the first part of your income: your retail margin.
Amway Business Owner price – ABOs pay 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.
Performance Bonus %
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. You can track your monthly PV and BV in 'My Office' on the Amway website after you log in. 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 PV 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 / RON) ratio of 2 and a retail margin of 10%.
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.
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
10% x 1,400 VA = 140 lei
Your Personal Performance Bonus
Your Group PV is 2400 VP/16,800 VA (200 VP personal/1,400 VA, plus 300 VP/2,100 VA de la IPA îndrumat A, 700 VP/4,900 VA de la IPA B și 1200 VP/8,400 VA de la IPA C).
1400 Personal BV
X 12% Performance bonus
= 168 lei
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 10% 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 = 189 lei
(9% x 2,100 VA = 189 lei)
Your Differential Bonus from B = 294 lei
(6% x 4,900 VA = 294 lei)
Your Differential Bonus from C = 252 lei
(3% x 8,400 VA = 252 lei)
Your Monthly Income
Retail Margin + Your Personal Performance Bonus + Your Differential Bonus = 140 lei + 168 lei + 189 lei + 294 lei + 252 lei = 1043 lei
Your Yearly Income
1043 lei x 12 = 12.526 lei
All products have Point Value (PV) which determines bonus levels. This example: 2,400 PV = 4,800 BV, based on PV/BV ratio of 7. Bonus level is 12%. The yearly income figure assumes you and the downlines repeat the monthly income example throughout the whole year.