Parent Company

Alticor Family of Companies

What is the Amway Sales Marketing Plan?

It is proven marketing system designed to reward the

efforts of those who operate their business in accordance
with it.
How Does the Amway Sales and Marketing Plan work?
1. Profit from Product Sales

First, you receive profit from sales of products to consumers. When you are
paid by the consumer you earn the difference between the price you paid
(Distributor Price) and the price the consumer pays you (Suggested Retail or
whatever you elect to charge). If you elect to follow the Amway’s Suggested
Retail Price, your retail profit will average 30% of the Distributor Price before
tax. The suggested retail margin can be higher or lower on individual
products. Please note that retail profit is calculated before calculating any
tax.
2. Performance Incentive based on Product Purchases

Second, you can receive a Performance Incentive from Amway based on

monthly accumulation of points. All products are signed two sets of numbers:
Point Value (PV) and Business Volume (BV). Business Volume - is a
monetary amount assigned to each product. This amount may change as a
result of periodic price adjustments. The Point Value - is a numerical
quantity assigned to each product and is used to determine a Distributor’s
Performance Incentive percentage.
The total Point Value of all the products you and your group purchases from
Amway to merchandise during particular month determines your
Performance Incentive Percentage for that month. This Percentage multiplied
by the total BV of all the products you and your group purchase will be the
gross Performance Incentive for that month. Performance Incentives earned
by those IBO’s (Independent Business Owner’s) within your Business
Group are deducted from your gross Performance Incentive and paid by
Amway directly to your IBO’s. Your net Performance Incentive earnings are
paid directly to you.
PERFORMANCE INCENTIVE INCLUDES:

1. A “Personal Discount”
the Performance Incentive percentage (determined by your personal
group PV) applied to the Business Volume of your personal
purchases for the month.

2. A “Differential Commission”
the difference between your performance Incentive and the Incentive
percentages of your personally-sponsored IBOs, (the latter based on the
purchases of your sponsored IBOs during that month) applied to the BV
of your group’s purchases.
If your group monthly PV is: The Performance Incentive generated is:

10,000 PV or more 21% OF Group BV

7,000 PV 18%

4,000 PV 15%

2,400 PV 12%

1,200 PV 9%

600 PV 6%

200 PV 3%
How to compute your Point Value (PV) & Business Volume (BV)?

ITEM PURCHASE P.V. B.V. SUGGESTED PRICE DISTRIBUTOR PRICE

NUTRILITE ACEROLA C 110PCS/BOTTLE 12.15 433 P630.00 P485.00

NUTRILITE LECITHIN E 19.29 688 P1,000.00 P770.00

110PCS/BOTTLE

NUTRILITE CHROMPIC EXTRA 40.21 1,433 P2,085.00 P1,605.00

120PCS/BOTTLE

NUTRILITE POSITRIM DRINK PROTEIN 49.98 1,781 P2,595.00 P1,995.00

14 PACKETS/BOX

ARTISTRY PURE WHITE ESSENCE 51.86 1,848 P2,690.00 P2,070.00

30 ML

LOC MULTIPURPOSE CLEANER 6.14 219 P320.00 P245.00

1 LITER
ARTISTRY MOISTURE PLUS 31.45 1,121 P1,680.00 P1,255.00
14.5ML

211.08(PV) 7,523 (BV) TOTAL SALE in a month P8,425.00

7,523BV / 211.08PV = 35.64 1PV=35.64 BV

 How Sales and Marketing Plan works??

Example No.1

Your You
sponsor
Accumulated
211.08 PV
Explanation in Example No.1
Let us assume that your business reaches 211.08 PV first month. Retail profit
margin will average 30% of the Distributor Price before tax; in this example,
2,256.90. In addition to the retail profit margin, 211.08 entitles you to a
Performance Incentive is based solely on your own product purchases in this
example, the entire amount will be a discount. On 7,523 BV, the discount will be
213.84.
With a monthly total of 211.08 PV, your business gross amount will be:

Total Monthly PV: 211.08 (200PV=3%) see table on slide 6

Total Monthly BV: 7,523 (211.08 PV x 35.64)

Your Income:
Retail: Profit before Discount (30% x 7,523) 2,256.90
Discount: (7,523 x 3%) + 225.69

Monthly Gross Amount: 2,482.59

Example No.2
Let us assume that your business sponsors 8 new IBO’s and that each of these new businesses purchases
211.08 PV a month. Using the Performance Incentive Schedule, your business earnings would be as follows:

You
211.08PV

Jose Allen Chris Jay Brenda Eric Mario John

211.08PV 211.08PV 211.08PV 211.08PV 211.08PV 211.08PV 211.08PV 211.08PV

Your Group accumulated 1,899.72 PV = 9% Performance Level (PL)

Your Income:
Retail Margin on Product Sold 2,256.90

Personal Discount (211.08PV) = 7,523 BV x 9% PL 677.07 (9%-3%=6%)

+ 12% VAT 81.24
6% Differential commission from C group 3,611.04
7,523BV x 6% (451.38 x 8 A’s)
TOTAL MONTHLY EARNINGS 6,626.25
 Example No.3
Let us assume that each of the 8 IBO’s purchases 211.08 PV in a given month and that each one sponsors 4 other IBO’s
who also purchase 211.08 PV each. The total volume of these 40 IBO’s would be 17,097.48. Including your PV of 211.08,
your total group PV is 17,398.56

You
211.08PV
(Grp.PV
1,899.72)

Jose Allen Chris Jay Brenda Eric Mario John

211.08PV 211.08PV 211.08PV 211.08PV 211.08PV 211.08PV 211.08PV 211.08PV
(Grp.PV
(Grp.PV (Grp.PV (Grp.PV (Grp.PV (Grp.PV (Grp.PV (Grp.PV
1,899.72)
1,899.72) 1,899.72) 1,899.72) 1,899.72) 1,899.72) 1,899.72) 1,899.72)

Your Group accumulated 17,398.56 group PV = 21% Performance Level (PL)

Your Income:
-Retail Margin on Product Sold 2,256.90
1,579.83
-Personal Discount (211.08PV) = 7,523 BV x 21% PL
189.58
+ 12% VAT

9% Differential commission from A group (2,256.90 + 1,579.83 = 4,026.31)

32,210.48
4,026.31 x 8 A’s
TOTAL MONTHLY EARNINGS 36,236.79
 THANK YOU!!
LOOKING FORWARD FOR YOUR SUCCESS!