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Introduction to Amway

What is Amway?

Amway was founded in 1959 and is now a market leader in Direct Sales globally and in India. It is present
in more than 100 countries and territories. Amway provides unparalleled business opportunity to
entrepreneurs to own and operate their own business.

Amway manufactures over 500 nutrition, beauty and home products globally, that are retailed by millions
of Amway distributors across the world. The company has a global turnover of 9.5 billion US dollars.
Amway has over 1150 patents, and more than 500 patents pending. Amway has paid highest amount of
bonuses and incentives to its distributors than any other direct selling company in the world.

Amways Nutrilite is the worlds No. 1 selling vitamins and dietary supplements brand. Artistry is another
Amway brand that is among the worlds top five, largest selling, premium skincare brands.

Salient Features of Amway

Some of the salient features of the Amway business are:

There is no cost to join the Amway business.


Amway provides free training to all new joinees.
There is no minimum purchase requirement to participate in the Amway business.
All Amway products come with a money back guarantee for 100% satisfaction of use.
In addition, all new joinees are also provided a cooling off period for 90 days from the date of
joining. During this period, should you decide to exit the business, you will be eligible to return
and get full refund for the products and material purchased from Amway.

Amway in India

Amway has been operational in India since 1998 and has a turnover of over 2,000 crores. It sells over 130
world class products in the Nutrition, Beauty, Home Care and Personal Care categories. Amway has
significantly invested to create a large infrastructure with over 130 Office (stores) across pan India and
services to 11000 pin codes for home delivery. Amway India has invested over 550 crore rupees to setup
its own state of the art manufacturing plant to augment the existing manufacturing base. It is also
leveraging the digital technology and over one-third of the sales is via www.amway.in and this percentage
is growing steadily.

How do you generate income in Amway?

As an Amway Direct Seller, you can earn money by retailing Amway Products to the consumers. You can
also register consumers as your preferred customer who can order and receive products directly through
Amway. You can also introduce new people to the business and create a sales team that can replicate the
above activities and earn money.
In the Amway business you can earn money, get recognition, and also get invitation for business trips by
selling quality Amway products.

1. The first way that you can earn money is through retail margin which is the difference between
your selling price and your purchase price also known as DAP. As an Amway Direct Seller, you
determine the price you charge up to Maximum retail price or MRP for the products. When you
sell products to customers above DAP, you keep the retail margin.

2. The second way that you can earn money is through Trade Discount, given to Amway Direct
Sellers when you purchase products from Amway for retailing.

3. The third way to earn money is through the Distributor Sales plan. Amway offers an attractive
reward program to recognize and reward your hard work and achievements. You generate points
on products purchased to sell. The commissions that Amway gives are based on the points
generated through product sales by you and the sales team that you may build. There are various
types of commission that can be earned.

Amway India Sales & Marketing Plan

As mentioned earlier, you generate points on products purchased to sell. The more products you sell, the
more points you generate, the more commission you earn. For example, if you and your sales team
generate 100 points, you get a monthly commission of 6%. If you and your team generate 500 points you
get a monthly commission of 9%. The percentage commission increases as you generate more points and
goes up to 21%.

However, important to know that commissions only get generated when you sell Amway products.
Amway does not pay any commission for the sheer act of building the sales team without any product
sales.

Example 1: 6% Commission Level

INCOME
FIRST Retail Profits 433

6%
PURCHASE OFFER* Personal performance Commission
YOU 228

Sales Commission 547


COMMISSION
TOTAL 1208

+
Total Points 170
Points 50
Net Sales Volume ** 12920

SAVINGS
Team Team
PCs Trade Discounts 373
A

+
B

Points 50 Points 60 Points 10

FIRST PURCHASE OFFER

Products worth 1139

PROFTABILITY One Point equals 76 Net Sales Volume (excluding taxes & discounts). The ratio of points to Net Sales Volume (excluding taxes & discounts) is adjusted periodically by
GROWTH OPPORTUNITY Amway.
EFFORT The above example is a symbolic depiction of income earned in a month. Actual income is dependent on Individual Sales & that of ABOs in the team (basis the published
performance commission schedule), and PreferredMG16 Customer purchases. Retail profit is assumed as 9% in this example.
Retail profit is not calculated or paid by Amway. All income are subject to applicable taxes.
1 2 3 4 5 * One Time Offer for new ABO (conditions apply)
** excluding Taxes and discounts
The screen shows an example where you have achieved 6% commission level in the Amway business and
have a sales team and some preferred customer. You have sold products worth 50 points and your team
has team members A and B who have sold products of 50 and 60 points respectively. You have also some
preferred customers or PCs who have bought products worth 10 points. Your total team points are 170.
The commissions that you earn are Personal Performance commission which is for the points that you
have earned and Sales commission which is for the points that your team has earned. Along with that,
you also earn the Retail Profit and the Trade Discounts for eligible orders. In this case the total earnings
are Rs. 1208 excluding the trade discount that you get.

Higher Achievement Levels

Forums and Seminars

Amway India also invites you to various seminars and Forums in and out of India based on your level of
achievement in the business. The New Platinum Forum is a business seminar which is held in a foreign
location. You are invited to attend this forum if you achieve 6 Silver Producer months in a performance
year out of which 3 months are consecutive.

Amway India also conducts the Amway Business Leadership Seminar each year at a foreign location. You
can be a part of this Seminar if you meet the qualification criteria for the Seminar. In addition to that,
Amway India also conducts Diamond Invitational trips for the Diamond qualifiers in the business. These
trips are held at different foreign locations each year.

Support from Amway

When you join the Amway business, we provide you Digital support through the Amway app and website,
provide you education and training both offline and online, and are available to answer your queries
through our call center and through www.amway.in. We also have offices and warehouses spread across
the country to support your business and to deliver products directly to your home.
To summarize:

Amway business is free to join.


Amway Products come with Money back Guarantee for 100% Satisfaction of use.
New Joinee are provided cooling off period of 90 days.
You earn on the sale of Amway products. No Sale, No commissions.
Sheer act of Sponsoring doesnt generate any income for anyAmway Direct Seller.
This session depicts scenarios of how Amway Sales Plan works and potential income earning
at different achievement levels.
This session provides complete clarity on the Amway Business including how to earn in
Amway business.

I have gone through Welcome to Amway Module and have understood the basic details about Amway
business. I also understand that more information is available on www.amway.in

________________________
(Signature)

Disclaimer: This document is a summarized version of the Introduction to Amway Module and consists
of general business information about the Direct Selling business of Amway and its sales & marketing plan.
This document, per se, does not constitute an offer, or invitation, or solicitation of an offer to become an
Amway Direct Seller nor does any information contained herein form the basis to any contract or
commitment whatsoever. The information does not purport to be complete and is in summary form. No
representation or guarantee is made, explicitly or implicitly, concerning the accuracy of the information
presented herein.

Illustrations, calculations and assumptions contained in the scenarios are for information purposes only
and will change based on different assumptions, and is subject to many risks, uncertainties, and factors
related to the operations and business environments of Amway, such as competitive pressures, the
performance of the economy and the industry, changes in market conditions, and other known and
unknown risks, laws and are not guaranteed.