BUSINESS MANUAL AUSTRALIA & NEW ZEALAND

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BUSINESS MANUAL AUSTRALIA & NEW ZEALAND
B U S I N E S S M A N UA L

AUSTRALIA & NEW ZEALAND
CONTENTS
 STARTING OUT, SPONSORING & DUPLICATION 							 4

 RECOGNITION LEVELS 										 6

 AWARDS & REWARDS 										 8

 TYPES OF BONUSES 										 10

 FINANCIAL FREEDOM 										 14

 INTERNATIONAL SPONSORING 									 15

 YOU ARE SUPPORTED 										 20
FREEDOM
     FAMILY
      HOPE
    REWARD
          OUR INSPIRATION, MOTIVATION,
                AND FOUNDATION.

   FREEDOM                     FAMILY                      HOPE                      REWARD
To own your own business,   Our essential support   For all to have personal    For achieving success – and
  work hard and grow.       and encouragement.      and professional success.   helping others do the same.
Starting Out
                                   Example 1                                                                                 Example 2
                                   Assuming your monthly personal PV                                                         Assuming your monthly personal PV
     Your                You                                                             Your                You
    Sponsor            100 PV      is 100 of which your immediate gross                 Sponsor            100 PV            increases to 200, your gross income
                                   income would accumulate as follows:                                                       would rise accordingly:

    30% Retail Profit on 400 BV                                   =      $120          30% Retail Profit on 800 BV                                      =     $240
    3% Performance Bonus on 400 BV                                =       $12          3% Performance Bonus on 800 BV                                   =      $24
    Your Gross Income Per Month                                   =      $132          Your Gross Income Per Month                                      =     $264
    Your Gross Income Per Year (12 x $132)                        =     $1,584         Your Gross Income Per Year (12 x $132)                           =    $3,166

Grow Through Sponsoring                                                               Grow Through Duplication
You can expand your business by sponsoring others.                                    Your business continues to grow as your IBOs follow
Let’s assume that you sponsor 4 other IBOs1, each of                                  your example and begin sponsoring their own IBOs.
whom generates 100 personal PV in a month, while you continue                         Let’s say that all 4 IBOs continue to do 100 PV
to do 100 personal PV a month. Your income                                            a month and they each sponsor four IBOs of his
could be as follows:                                                                  own who likewise do 100 PV a month. The total PV for
                                                                                      each group would be 500. If you continue to personally
Example 3
                                                                                      generate 100 PV a month, your income could be as follows:
Your total monthly Group PV at 500 GPV
                                                                                      Example 4

                            You                                                       Your total monthly Group PV at 2100 GPV
                          100 PV

      100 PV                                    100 PV                                                                     You
                                                                                                                         100 PV

                   100 PV         100 PV                                                          100 PV                                       100 PV

                                                                                           X4                                                                 X4
                                                                                         100 PV                                                             100 PV
                                                                                                                    100 PV         100 PV
    6% Performance Bonus on personal BV
    (400BV X 6%)
                                                                  =      $24

    Differential Bonuses from downlines                           =      $48                                 X4
                                                                                                           100 PV
                                                                                                                                              X4
                                                                                                                                            100 PV
    (400BV x 3% x 4)

    Total Bonus You Earn                                          =      $72

    30% Retail Profit on 400 BV                                   =      $120
                                                                                       12% Performance Bonus on personal BV                             =      $48
                                                                                       (400BV X 12%)
    Your Gross Income Per Month                                   =      $192
                                                                                       Differential Bonuses from downlines                              =     $480
    Your Gross Income Per Year (12 x $192)                        =    $2,304          (2000BV x 6% x 4)

                                                                                       Total Bonus You Earn                                             =     $528
1
 Not every IBO will sponsor 4 IBO. Some will sponsor more, some will sponsor fewer,
depending upon time and effort spent on building the business. The numbers used are    30% Retail Profit on 400 BV                                      =     $120
simply to show you how the Amway Sales & Marketing Plan works and how income is
calculated.                                                                            Your Gross Income Per Month                                      =     $648

                                                                                       Your Gross Income Per Year (12 x $648)                           =    $7,776
THE Amway® SALES & MARKETING PLAN

               RECOGNITION LEVELS
Levels of Achievement

To recognise and reward the achievements of IBOs, Amway has an extensive awards and bonus/rebate system. Pins are awarded in
honour of business-building achievements. At many levels, cash bonuses, rebates and other rewards are awarded.

To be eligible for these bonuses and awards, an IBO must be in compliance with all of the provisions of the Amway Rules of
Conduct. All award qualifications are subject to verification and review before any recognition.

 Bronze                     Silver
                                                      Gold

                                                                              Platinum             Founders
                                                                                                   Platinum

   Ruby                  Founders                   Sapphire                Founders                Emerald                  Founders
                           Ruby                                             Sapphire                                         Emerald

                         Founders                                              Founders               Double               Founders
  Diamond                Diamond                   Executive
                                                   Diamond                 Executive Diamond         Diamond            Double Diamond

   Triple                    Founders
 Diamond                  Triple Diamond
                                                      Crown                     Founders
                                                                                 Crown               Crown                   Founders
                                                                                                   Ambassador            Crown Ambassador
AWARDS & REWARDS
                                                                                                                                                                                                        • 1st time Platinum qualification
                                                                                                          Bonus Qualification                                       Exclusive Business Invitation         can be qualified by rolling 12
                                                                                                                                                                                                          months with 3 months are
           Level                Pin Requirements                                                    Monthly                                                                                               consecutive.
                                                              Performance   Leadership/     Ruby                Emerald     Diamond    Diamond                  New Platinum    Amway      Founders
                                                                                                     Depth                                         FAA   OTCA
                                                                 Bonus      Foster Bonus   Bonus*                Bonus       Bonus    Plus Bonus                  Seminar      Achievers   Council***   • Platinum Requalification are any
                                                                                                     Bonus
                                                                                                                                                                                                          6 months within Performance
                              15% Bonus/Rebate with at                                                                                                                                                    year.
BRONZE                        least 3 x 6% bonus/rebate
                                   legs plus 100ppv
                                                                  •                                                                                                                                     • Founders Platinum and above
                                                                                                                                                                                                          qualification are qualifying
                                                                                                                                                                                                          within Performance Year.
SILVER PRODUCER                 1 Silver Producer month
                                                                  •             •           •                                                                                                           • All Founders qualifications can
                                                                                                                                                                                                          be qualified through Volume
                                                                                                                                                                                                          Equivalency (VE).
GOLD PRODUCER                  3 Silver Producer months
                                                                  •             •           •                                                                                                           • Emerald and Founders Emerald
                                                                                                                                                                                                          qualifications can be achieved
PLATINUM                       6 Silver Producer months
                                                                  •             •           •                                                                       •             •                       by local and international
                                                                                                                                                                                                          legs. Diamonds and above
                                                                                                                                                                                                          qualification can be achieved by
RUBY
                              2 x Maximum Performance
                                   Bonus, 1 month                 •             •           •                                                                                     •                       local and international legs, with
                                                                                                                                                                                                          at least 3 local legs as the base
                                                                                                                                                                                                          (must be EBR).
FOUNDERS PLATINUM              12 Silver Producer months
                                                                  •             •           •                                                                                     •                     • Emerald bonus/rebate must be
                                                                                                                                                                                                          an Emerald Bonus Recipient
FOUNDERS RUBY
                              2 x Maximum Performance
                                   Bonus, 12 months               •             •           •                                                                                     •                       (EBR) with at least qualified 3
                                                                                                                                                                                                          local legs.
                                                                                                                                                                                                        • Diamond bonus/rebate must be
SAPPHIRE                        2 Q plus 15% - 6 months
                                                                  •             •           •                                                                                     •                       an Diamond Bonus Recipient
                                                                                                                                                                                                          (DBR) with at least qualified 6
                                                                                                                                                                                                          local legs.
FOUNDERS SAPPHIRE              2 Q plus 15% - 12 months
                                                                  •             •           •                                                                                     •                     • Diamond Plus bonus/rebate
                                                                                                                                                                                                          must be an Diamond Bonus
EMERALD                               3 Q6 Legs
                                                                  •             •           •         •           •                                                               •                       Recipient (DBR) with at least
                                                                                                                                                                                                          qualified 7 local legs.
                                                                                                                                                                                                        • FAA must be a Diamond Bonus
FOUNDERS EMERALD                      3 Q12 Legs
                                                                  •             •           •         •           •                                                               •                       Recipient in at least one market,
                                                                                                                                                                                                          have four in-market Founders

                                                                  •             •           •         •           •             •                  •                              •
                                                                                                                                                                                                          Platinum legs under their #1 and
DIAMOND                               6 Q6 Legs                                                                                                                                                           #2 businesses and have earned
                                                                                                                                                                                                          a minimum of 20 FAA points on
                                                                                                                                                                                                          a global basis.
FOUNDERS DIAMOND              6 Q12 Legs or 8 FAA points
                                                                  •             •           •         •           •             •                  •                              •
                              9 Q6 Legs or 10 FAA points
                                  or minimum Founders
                             Diamond qualification with at
EXECUTIVE DIAMOND             least 1 x Founders Platinum
                                in each Q12 leg together
                                                                  •             •           •         •           •             •        •         •                              •
                                   with a minimum of
                                 10 qualification credits

                              9 Q12 Legs or 12 FAA points
                                 or minimum Founders
                             Diamond qualification with at
FOUNDERS EXECUTIVE DIAMOND    least 1 x Founders Platinum
                                 in at least 8 x Q12s leg
                                                                  •             •           •         •           •             •        •         •                              •
                              together with a minimum of
                                16 qualification credits

                              12 Q6 Legs or 14 FAA points
                                 or minimum Founders
                             Diamond qualification with at
DOUBLE DIAMOND               least 1 x Founders Platinum in
                             at least 8 x Q12 legs together
                                                                  •             •           •         •           •             •        •         •      •                       •
                                  with a minimum of 25
                                   qualification credits
AWARDS & REWARDS
                                                                                                                                                                                                               TERMS AND CONDITIONS FOR
                                                                                                                Bonus Qualification                                        Exclusive Business Invitation       Amway ACHIEVERS **
                                                                                                                                                                                                               1. The Amway Leadership Seminar
             Level                   Pin Requirements                                                     Monthly
                                                                                                                                                                                                                  (Achievers) is not part of the
                                                                    Performance   Leadership/     Ruby                Emerald     Diamond     Diamond                  New Platinum    Amway      Founders
                                                                                                           Depth                                          FAA   OTCA
                                                                       Bonus      Foster Bonus   Bonus*                Bonus       Bonus     Plus Bonus                  Seminar      Achievers   Council***      Amway Sales & Marketing Plan
                                                                                                           Bonus
                                                                                                                                                                                                                  and may be subject to future
                                                                                                                                                                                                                  modifications.
                                   12 Q12 Legs or 16 FAA points
                                                                                                                                                                                                               2. Achievers is strictly based on
                                      or minimum Founders
                                                                                                                                                                                                                  invitational basis, not automatic
                                  Diamond qualification with at

                                                                        •             •           •         •           •             •          •        •      •                       •
                                                                                                                                                                                                                  upon qualification.Platinum IBOs
 FOUNDERS DOUBLE DIAMOND          least 1 x Founders Platinum in
                                                                                                                                                                                                                  will be assessed to determine
                                  at least 8 x Q12 legs together
                                                                                                                                                                                                                  if he/she conducts his/her
                                       with a minimum of 34
                                                                                                                                                                                                                  business ethically, in accordance
                                        qualification credits
                                                                                                                                                                                                                  to the letter and spirit of the
                                                                                                                                                                                                                  Amway Rules of Conduct.
                                   15 Q6 Legs or 18 FAA points                                                                                                                                                 3. The Platinum IBOs must be
                                      or minimum Founders                                                                                                                                                         the owner or operator of the
                                  Diamond qualification with at
                                                                        •             •           •         •           •             •          •        •      •                       •
                                                                                                                                                                                                                  Amway business. An inherited
 TRIPLE DIAMOND                    least 1 x Founders Platinum                                                                                                                                                    business may not be eligible
                                     in at least 10 x Q12 legs                                                                                                                                                    for invitation.
                                   together with a minimum of
                                      43 qualification credits                                                                                                                                                 4. Emerald Bonus / Rebate
                                                                                                                                                                                                                  recipents can qualify for
                                                                                                                                                                                                                  Achievers if they re-qualify
                                  15 Q12 Legs or 20 FAA points                                                                                                                                                    as Emerald Bonus / Rebate
                                      or minimum Founders                                                                                                                                                         recipents or achieve the
                                  Diamond qualification with at                                                                                                                                                   required targets. Either
 FOUNDERS TRIPLE DIAMOND           least 1 x Founders Platinum
                                     in at least 10 x Q12 legs
                                                                        •             •           •         •           •             •          •        •      •                       •                        condition applies.

                                   together with a minimum of
                                     52 qualification credits

                                   18 Q6 Legs or 22 FAA points
                                       or minimum Founders
                                  Diamond qualification with at
 CROWN                              least 1 x Founders Platinum
                                      in at least 12 x Q12 legs
                                                                        •             •           •         •           •             •          •        •      •                       •           •
                                   together with a minimum of
                                      64 qualification credits

                                  18 Q12 Legs or 25 FAA points
                                      or minimum Founders
                                  Diamond qualification with at
 FOUNDERS CROWN                    least 1 x Founders Platinum
                                     in at least 12 x Q12 legs
                                                                        •             •           •         •           •             •          •        •      •                       •           •
                                   together with a minimum of
                                     76 qualification credits

                                  20 Q6 Legs or 27 FAA points
                                      or minimum Founders
                                  Diamond qualification with at
 CROWN AMBASSADOR                  least 1 x Founders Platinum
                                     in at least 14 x Q12 legs
                                                                        •             •           •         •           •             •          •        •      •                       •           •
                                   together with a minimum of
                                     88 qualification credits

                                  20 Q12 Legs or 30 FAA points
                                       or minimum Founders
                                  Diamond qualification with at
 FOUNDERS CROWN AMBASSADOR        least 1 x Founders Platinum in
                                  at least 14 x Q12 legs together
                                                                        •             •           •         •           •             •          •        •      •                       •           •
                                      with a minimum of 100
                                        qualification credits

* Ruby is conditional. The IBO must have 15,000 PV.
** Achievers requirements are different globally, but it is for Platinum and above. Please refer to the terms and conditions on the following page.
*** Founders Council is qualifying with 20 FAA points or qualified/re-qualified at Crown Ambassador.
**** For Executive Diamond and above qualification there is a transition period where both criteria options apply until August 31 2021.
THE Amway® SALES & MARKETING PLAN

                    TYPES OF BONUSES
The Performance Bonus                                              The Ruby Bonus
Let’s say that during your first month you purchase and            A Ruby Bonus, equal to 2% of that month’s total Ruby BV, will be
personally sell products totalling 100 points. Assuming that       paid to a qualified IBO.
your average retail profit on the products is about 25%, your
immediate gross income can be $120 (30% of 400 BV).                Leadership Bonus
In addition, when your Personal PV total exceeds 50PPV points,     The Leadership Bonus is paid each month by Amway to a
you are eligible to receive a Performance Bonus. Under the         qualified sponsor on the Personal Group BV of each 21% level
Performance Bonus Schedule you would receive a Performance         group that he personally sponsors.
Bonus of 3% on your 400 BV, or $12, plus your immediate gross
income of $120, giving you a total gross monthly income of $132    In the course of building an Amway business, a sponsor
or total gross annual income of $1584 (See Example 1).             motivates and trains an IBO to assist him in attaining the level of
                                                                   Platinum. At that time, both the sponsor and the new Platinum
(1) Not everyone will, of course, have 100 points per month.
                                                                   are in the same Performance Bonus percentage bracket: 21%.
Some will have less and some will have more. This figure is used
                                                                   Therefore, in order to provide the sponsor with an incentive to
merely to demonstrate the business opportunity.
                                                                   develop a Platinum IBO and to compensate for the hard work
(2) The suggested retail profit varies with each product and       involved in doing so, the Amway Sales & Marketing Plan provides
averages about 30%.                                                payment to the sponsor with a Leadership Bonus. This Bonus is
                                                                   calculated by Amway on the BV of each 21% qualifying group he
The total Point Value of all the products you purchase and sell    or she personally sponsors.
during a particular month determines your Performance Bonus
percentage for that month. The greater your total monthly
                                                                   Under this system, the sponsor receives payment as long as
Point Value, the greater your Performance Bonus percentage
                                                                   the sponsored IBO qualifies, and as long as the sponsor
due to you.
                                                                   maintains his Personal Group PV at the levels described under
                                                                   the ‘Rules Governing Calculation of the Leadership Bonus’ on
Calculating your Performance Bonus percentage bracket on the
                                                                   the following page.
total PV places the emphasis on the number of units sold, not
on the selling price per unit. As inflation causes prices to
increase, each IBO receives a larger bonus/rebate for the same     6% Leadership Bonus
number of units sold.
                                                                   Adjustment (LBA)
 If Your Total Monthly                                Bonus        While a qualified sponsor earns a Leadership Bonus on the
 Point Value is:
                                                                   Personal Group BV of the 21% groups that he personally
 7500 points                               =     21% of your BV    sponsors, he must also remember that his sponsor is entitled
 5000 points                               =           18%         to receive a Bonus that is 6% of his BV or the established 6%
                                                                   Leadership Bonus Adjustment amount, whichever is greater.
 3250 points                               =           15%

 2000 points                               =           12%
                                                                   If the Personal Group BV of a qualified sponsor is insufficient to
 1000 points                               =           9%          fulfil the 6% Leadership Bonus Adjustment to this sponsor, the
                                                                   difference between the Leadership Bonus actually generated
 400 points                                =           6%
                                                                   by his volume and the 6% Leadership Bonus Adjustment is
 100 points                                =           3%
                                                                   deducted from his Leadership Bonus by Amway, and added to
For Illustration purpose we use 1PV:4BV.                           the Bonus of his sponsor. This same adjustment is applied up the
                                                                   line of sponsorship.
To assure the effectiveness of this feature of the Amway            The 3250 Point Value mentioned above does not include any
Sales & Marketing Plan, the 6% Leadership Bonus Adjustment          downline qualified volume (21%). It will however, include pass-
of Leadership Bonus must be adjusted whenever there are             up volume (non-qualified Silver Producer or Platinum volume).
adjustments to the BV or PV amounts. This 6% Leadership Bonus       Because an Amway business is part of a IBOs estate, the Bonus
Adjustment is determined in accordance with the ratio between       for which a Platinum is eligible can, in the event of death, be paid
BV and PV. As BV and/or PV adjustments take place in the            to the heirs. The heirs must however become Amway IBOs and
future, the amount is recalculated and the revised figure will be   continue to qualify the Independant Business to remain eligible
published by Amway in the Product Catalogue.                        for continued payments.

Rules Governing Calculation of                                      International Leadership
Leadership Bonus                                                    Bonus Schedule
                                                                    Foster Sponsors will share in a portion of the International
(1) It is paid on every BV of each month by Amway. Amway
                                                                    Leadership Bonus. Based on the date Amway receives the
calculates and pays all Leadership Bonuses.
                                                                    original application of the qualified 21% foster sponsored
                                                                    Independant Business (IB), it will be paid as follows:
(2) It is calculated from the lowest level up – never from
the highest level down.
                                                                    •   3% to Foster Sponsor and 3% to International Sponsor
                                                                        for Application Forms received before 1 September 1991
(3) You must have at least 3250 Personal Group PV in order to
                                                                        (including new markets opened before 1 May 1991).
receive any Leadership Bonus if you sponsor 1 qualified group.

                                                                    •   4% to Foster Sponsor and 2% to International Sponsor for
(4) Once the 6% Leadership Bonus Adjustment is generated, at
                                                                        Application Forms received on or after 1 September 1991
least that amount of Leadership Bonus
                                                                        (including new markets opened on or after 1 May 1991).
must continue to pass up the line of sponsorship.

                                                                    See international sponsoring on page 16.
(5) Each sponsor of a qualified group may be entitled
to a Leadership Bonus based on the following rules:
                                                                    Monthly Depth Bonus
You will keep ALL of the Leadership Bonus                           Each IBO who personally or foster sponsors 3 or more groups
generated to you:                                                   which qualify at the 21% Performance Bonus level in any one
                                                                    month is eligible to receive a Monthly Depth Bonus.
(a) If you sponsor 1 qualified group and the Leadership Bonus
generated by your Business Volume is equal to                       Each month, Amway pays a qualified recipient a Monthly Depth
or exceeds the 6% Leadership Bonus Adjustment or                    Bonus equal to 1% of the BV generated by all second level 21%
the amount of Leadership Bonus generated to you, or                 groups, down to and including the first qualified Monthly Depth
                                                                    Bonus recipient plus the personally or foster sponsored 21%
(b) If you sponsor 2 or more qualified groups and the Leadership    groups of that (downline) Monthly Depth Bonus recipient.
Bonus generated by your Business Volume
is equal to or exceeds the average of the Leadership                If a qualified Monthly Depth Bonus recipient personally or foster
Bonus generated to you by your qualified groups.                    sponsors a qualified Monthly Depth Bonus recipient, the Monthly
                                                                    Depth Bonus for the sponsoring Monthly Depth Bonus recipient
You will keep SOME of the Leadership Bonus generated to you:        is paid only on the 21% groups personally or foster sponsored by
                                                                    the sponsored Monthly Depth Bonus recipient. (BV generated
(a) If you sponsor 1 qualified group and the Leadership             by first level 21% groups does not count toward the Monthly
Bonus generated by your Business Volume is less than the 6%         Depth Bonus since the Leadership Bonus is paid on this volume.
Leadership Bonus Adjustment or the amount of Leadership             Monthly Depth Bonus is paid to the upline Monthly Depth Bonus
Bonus generated to you by that group, or                            recipient on this volume.)

(b) If you sponsor 2 or more qualified groups and the Leadership    1% Monthly Depth Bonus Adjustment
Bonus generated by your Business Volume is less than the
                                                                    Each qualified Monthly Depth Bonus recipient must guarantee to
average Leadership Bonus generated to you.
                                                                    his sponsoring Monthly Depth Bonus recipient a minimum of 1%
                                                                    of 7500 PV times the PV/BV ratio (equivalent to a quarter of the
(c) You will keep none of the Leadership bonus/rebate generated
                                                                    6% Leadership Bonus Adjustment) on his 21% group as well as
to you if you sponsor 1 qualified group and you have less than
                                                                    one each of his personally or foster sponsored 21% groups.
3250 Group PV.
The 1% Monthly Depth Bonus Adjustment changes if and when
                                                                                         Diamond Bonus
the BV or PV values of products change. Amway
will publish the amount updates in the Product Catalogue.                                To qualify for the annual Diamond Bonus, a Platinum
                                                                                         IBO must personally or foster sponsor 6 x 21% groups
Whenever a qualified Monthly Depth Bonus recipient or one                                in his own market, each of which qualifies at the 21%
of his personally or foster sponsored 21% groups does not                                Performance Bonus level during at least 6 months
generate sufficient volume to fulfil the 1% Monthly Depth Bonus                          of the performance year.
Adjustment to the upline Monthly Depth Bonus recipient, Amway
will adjust the Bonus of the Monthly Depth Bonus to make up the                          The Diamond Bonus is paid out of a fund consisting of 1/4 of
difference.                                                                              1% of all qualified BV downlines from all qualified Diamond
                                                                                         IBOs in the market (including 1/4 of 1% of all Amway foreign
Emerald Bonus                                                                            subsidiary qualified volume traceable to Australia or New Zealand
                                                                                         sponsorship, provided that
To qualify for the annually paid Emerald Bonus, a Platinum IBO                           volume is only one country removed from the market).
must personally or foster sponsor 3 x 21% groups in his own
market, each of which qualifies at the 21% Performance Bonus
                                                                                         The fund is distributed to eligible participants in accordance
level for at least 6 months during the performance year.
                                                                                         with the same formula employed for the calculation of the
                                                                                         Emerald Bonus. The Diamond IBO who personally or foster
The Emerald Bonus is paid annually. Amway sets aside an amount                           sponsors at least 7 x 21% groups, each of which qualifies at
equal to 1/4 of 1% of all qualified BV downline from                                     the 21% Performance Bonus level during 6 months out of the
all qualified Emerald IBOs in the market (including 1/4 of 1%                            performance year can also share in the Diamond Plus
of all Amway foreign subsidiary qualified volume traceable                               Bonus Fund. (See next column for Diamond Plus Bonus
to Australia or New Zealand sponsorship, provided that volume is                         Qualification Schedule.)
only one country removed from the market). At the end of each
performance year (August 31), this fund is distributed among all
                                                                                         Diamond Plus Bonus
the Emerald IBOs who qualify in the
following manner:                                                                        A Diamond Plus Bonus is paid to each Platinum IBO who
                                                                                         personally or foster sponsors 7 or more 21% groups whose
(1) The annual qualified BV of each of the Emerald IBOs groups,                          volume qualifies for at least 6 out of 12 months of a given
including the BV on which the Emerald IBO has earned the                                 performance year. Internationally sponsored groups are
Leadership Bonus, is added together.                                                     not included in the computation and payments of the Diamond
                                                                                         Plus Bonus. The bonus/rebate is paid according to the
(2) A point value of 4 points is assigned for each 1,000 BV                              following method:
per group for the first 25,000 BV; 2 points are assigned for each
                                                                                         Units are assigned to each qualified 21% group for each month
1,000 BV per group for the next 49,999 BV; 1 point is assigned
                                                                                         they qualify. The number of units assigned to
for each 1,000 BV per group for the next 49,999 BV and 1
                                                                                         each group per month is as follows:
point is assigned for each 10,000 BV per group thereafter. This
computation is made for each group.
                                                                                         (1) Each performance year Amway sets aside a fund
                                                                                         equal to 1/4 of 1% of the in-market Business Volume generated by
(3) The total points for all groups of each participating Emerald
                                                                                         all the 21% groups in the line of
IBO are then added.
                                                                                         sponsorship of the Diamond Plus Bonus qualifiers.

(4) Dividing the total fund available by the total points
                                                                                         Once the total number of units is assigned to each Diamond Plus
gives an AUD/NZD value per point.
                                                                                         Bonus Qualifier, (see schedule below) the grand total of units
                                                                                         is divided into the Diamond Plus Bonus Fund to determine the
(5) The Emerald Bonus is then determined for each qualified
                                                                                         AUD/NZD value of each unit. Each qualifier’s bonus/rebate is
Emerald IBO by multiplying his points by the AUD/NZD value per
                                                                                         determined by multiplying the AUD/NZD value per unit by the
point.
                                                                                         total number of units for that qualifier.

(6) Payment for the performance year ending August 31 are sent
                                                                                         (2) This amount is to be paid before the end of the calendar year
out in December.
                                                                                         for the previous performance year.
NOTE: For all bonus/rebate purposes, a No. 2 Independant Business (an Independant
Business which has been purchased or otherwise acquired, and is being operated by
a Platinum IBO or above in a different line of sponsorship) is treated as a completely
separate business. Volumes generated by the 2 Independant Business’ are not
combined for purposes of calculating bonuses or for award purposes.
Diamond Plus Bonus Qualification                                            and calculations, and all recognitions and awards given, as
                                                                            stated in this manual apply to Amway of Australia and
and Unit Computation Schedule                                               Amway of New Zealand.

Qualified 21%                                    Bonus Unit
groups totalling                         (multiplied by months qualified)   (2) “Amway” used herein refers to Amway of Australia and
7 – 11 groups                  =               100 per group                Amway of New Zealand.
12 – 14 groups                 =               200 per group
15 – 17 groups                 =               300 per group
                                                                            (3) GIP, FAA and Achievers are discretionary awards & rewards
18 – 19 groups                 =               400 per group
                                                                            and not part of the Amway Sales & Marketing Plan. Attendance
20 or more groups              =               500 per group
                                                                            at Achievers and other incentive trips is by invitation only and
                                                                            NOT automatic upon qualification. To receive the reward, an IBO

FAA Credit Calculation                                                      must meet the criteria set forth by Amway to be considered
                                                                            for the awards, and must also demonstrate the high ethical and
                                                                            business standards that are aligned with the goals and objectives
Domestic Legs                                               Leg Credits
                                                                            of Amway.
Q12 Leg or Q12 VE1 leg                                  =         1.0
Emerald bonus/rebate recipient leg                      =         1.5
Diamond bonus/rebate recipient leg                      =         3.0       Inheritable Income for Your Family
                                                                            One of the attributes of the Amway Sales & Marketing Plan is
International Legs                                          Leg Credits     the ability of IBOs to build and establish a substantial business,
No. 2 business with Q12 or Q12 VE1                      =        1.0        and then pass it on to their heirs as part of their estate. This is
No. 2 Emerald bonus/rebate recipient business           =        1.5        best accomplished by working with one’s own solicitor to assure
No. 2 Diamond bonus/rebate recipient business           =     3.0 – 6.0     that the transfer of the Independant Business complies with the
Other Q12 or Q12 VE1 legs                               =        0.5        owner’s wishes and with the laws that govern inheritance in the
                                                                            respective country, as well as Amway’s requirements for transfer

Financial
                                                                            of an Independant Business. The specific information can be
                                                                            obtained by contacting Amway directly and we will be glad to

Freedom
                                                                            assist you and your solicitor with the details.

Amway offers an excellent opportunity to build a future and
to gain financial freedom and independence. It does not offer
superannuation or a guaranteed pension plan.

The Amway Compensation Plan is designed to allow you to build
a successful independent business that can achieve maintain
financial success.

Additional income can be earned through the Leadership Bonus,
this is dependent on you as the upline, and your downlines group
volume and qualifications.

There are times when you may wish to take time off. Once
you’ve built a strong business, you may wish to relax a bit,
travel and enjoy the rewards of success. It is certainly possible
to do so, as long as your business is strong and you make
proper advance preparations.

To maintain the financial freedom you have established, be sure
to maintain your Platinum qualification, and don’t hesitate to step
in when necessary to provide the motivation and leadership to
keep your business thriving. Amway is what you make it to be!

Important Notes
(1) Amway of Australia and Amway of New Zealand is operated
as one market, a Single Line of Sponsorship. The Performance
Bonus/Rebate Schedule, all other Bonus/Rebate qualifications
INTERNATIONAL
SPONSORING

                                                                                       • Iceland              Sweden
                                                                                Farrow Islands •
                                                                                                               Norway                                   • Russia
                                                                                                                 Finland
                    • Canada                                                                                       Denmark
                                                                                                                     The Netherlands
                                                                                      Ireland •                        Poland
                                                                                 United Kingdom •                        Ukraine
                                                              • Bermuda                                        Belgium     Germany
                                                                                           Guernsey
                                                                                                                  Austria Czech Republic
                                                                                         Jersey Islands           Slovenia
                        • United States                                                           France
                                                                                                                        Italy
                                                                                                                              The Slovak Republic
                                                                                                                                Hungary
                                                   The Bahamas                                Switzerland
                                                     Dominican Republic                               Spain
                                                                                                                       Greece Croatia                     • China              Korea •       • Japan
                                                                                                                                  Romania
       • Channel Islands                               Puerto Rico (USA)                             Portugal
                                                                                                                                    Turkey
                                                         Saints Kitts & Nevis
                                                  Cuba     Guadeloupe
                                                                                                                                                                 Hong Kong •     • Taiwan
                      Mexico •                      Haiti    Dominica
                                                   Jamaica    Antiqua & Barbuda                                                                     • India              • Macau
                           Guatemala          Cayman Islands     Saint Lucia
                                                       Anguilla Grenada                                                                                  Thailand •     • Vietnam• Philippines
                            El Salvador
                                  Antilles            Montserrat     Barbados
                                  Honduras             Martinique     Trininad & Tobago
                                                                                                                                                           Malaysia •        • Brunei
                                   Costa Rica             Venezuela Saint Vincent
                                                                                                                                                          Singapore •
                                       Panama
                                       Colombia
                                                                          French Guiana                                                                                   • Indonesia
                                                       • Brazil
                                                                                                              • Namibia

                                                                                             South Africa •                                                                        • Australia
                                                        • Argentina

Important Note                                                      Zero Tolerance Policy                                    International Sponsoring
Amway prohibits advertising for leads                               Amway has adopted a Zero Tolerance Policy                In general, internationally sponsored 21% leg                  New Zealand •
in foreign countries. You are advised to                            for all unauthorised activities in unopened              will result in an award/reward month flowing
contact the local Amway office since                                markets. Refer to www.amwayglobal.com                    back to the International Sponsor. However, in
regulations differ from one country to                              and find the list of countries under                     situations where the award flows back to the
another. We recommend for you to fully                              “Choose your country”.                                   home market of this 21% leg, no subsequent
understand the legal requirements and                                                                                        award will be generated to the International
cultural perspective before initiating                                                                                       Sponsor from the home market.
any sponsoring activity.
Grow Through International                                                 amount of ILB generated, not to exceed the Leadership
                                                                           Bonus/Rebate Adjustment amount of your country, and you
Sponsoring                                                                 will receive the remaining ILB/ILR monies generated.)

There are two ways to build an Amway business internationally.       •     If you internationally sponsor one qualifying IBO and you do
                                                                           not reach the 21% level in your own country during the same
                                                                           month, the ILB will be paid to the first upline qualified IBO in
First Method: By International Sponsoring
                                                                           your LOS.
If you have a prospect in a known Amway market
on a particular country, you should follow these
                                                                     * International ILB/ILR follows the International LOS and an international LOS is
recommended procedures:
                                                                     considered the primary link.

(a) Enlist the prospect’s interest and explain to
                                                                     Additional Benefits
him/her the Amway Sales & Marketing Plan.

                                                                     •     Emerald and above pin awards – You can count
(b) Refer to your upline IBOs if they know any Amway IBOs in the
                                                                           internationally sponsored 21% Bonus/Rebate groups toward
affiliate of your prospect, who your upline IBO may contact to be
                                                                           your qualification for Emerald and above pin awards (not
or to get a foster sponsor for your prospect.
                                                                           bonuses/rebates).
                                                                     •     Emerald and Diamond bonus/rebate – You can count an
(c) Otherwise, provide your name, address and IBO Number
                                                                           internationally sponsored 21% leg towards Emerald and
and ask the prospect to contact the Amway local office. It is
                                                                           Diamond bonus/rebate only if you have qualified as an
important that your prospect personally contact and inform the
                                                                           Emerald or Diamond bonus/rebate recipient in your own
Amway affiliate of his/her intention as Amway will not contact
                                                                           country. Emerald and Diamond Bonuses/Rebates are paid to
the prospect.
                                                                           both the International and
                                                                           Foster LOS.
(d) Only upon your prospect’s contact, the Amway affiliate will
                                                                     •     One-time cash awards – Your qualified international
then assign a nearby Platinum IBO who will become the Foster
                                                                           leg will also count towards your one-time Double Diamond
Sponsor of your prospect, to explain thoroughly
                                                                           and above cash awards.
the Amway Sales & Marketing Plan for the local market.

                                                                     The Foster Sponsor receives the following benefits
(e) Your prospect must complete a registration and order an
Amway Registration Pack. This process will vary
                                                                     •     The Foster Sponsor receives credit for all PV and BV
slightly between markets.
                                                                           generated by the new IBO and his group for Performance
                                                                           Bonus/Rebate purposes until the IBO reaches the 21%
(f) Your particulars need to be inserted as the International
                                                                           Performance Bonus/Rebate level.
Sponsor.
                                                                     •     The Foster Sponsor may count foster-sponsored 21% groups
                                                                           toward his qualification for all awards and bonuses/rebates
A Foster Sponsor is responsible for training, motivating                   except Foster Bonus/Rebate.*
and supplying your new IBO with products.                            •     The Foster Sponsor, subject to his qualification at the 21%
                                                                           Leadership Percentage level, is entitled to a portion of
As International Sponsor, you must not send literature, sales aids         the Leadership Bonus/Rebate generated from the foster-
or products to them as this may be illegal, but you may maintain           sponsored 21% group.
your communication with your prospect.                               •     The Foster Sponsor receives points on all BV generated
                                                                           by the new IBO and his group for Leadership Seminar
Your Benefits As An                                                        qualification.

International Sponsor
                                                                     *The Foster Sponsor’s Leadership Percentage Level would start from 0% when the
                                                                     foster IBO reaches 21% Performance Bonus.

International Leadership Bonus (ILB)
                                                                     Second Method: Registering a Second Business
When your new IBO qualifies at the maximum Performance
                                                                     You may expand your Amway business internationally by
Bonus/Rebate level, for e.g. 21%, you may be entitled to receive
                                                                     establishing a second IBOs in that country. Your #1 business
the ILB/ILR, based on the following criteria:
                                                                     shall be the International sponsor of your #2 business. Prior to
                                                                     establishing an international business you should:
•   If you qualify 21% level in your own country on the same
    month, you will receive the entire amount of
                                                                     (a) Check with this local Amway office and relevant authorities
    the ILB/ILR.
                                                                     of requirements and documents to establish a business in
•   If you internationally sponsor 2 or more IBOs who qualify
                                                                     that country. You should also refer to the nearest Embassy or
    21% during the same month and you do not reach the 21%
                                                                     Consulate for advice and instruction
    level in your own country, you will receive a portion of the
                                                                     on the requirements.
    ILB/ILR. (The first upline qualified Independant Business
    in your Line of Sponsorship (LOS) will receive the average
                                                                     (b) Refer to your upline IBOs if they know any Amway IBOs in the
THE Amway® SALES & MARKETING PLAN

market you wish to establish a 2nd business. Otherwise, contact     A personally sponsors B#1; B#1 internationally sponsors B#2
the Amway local office for the assignment of Foster Sponsor.        foster-sponsored by C and B#3 foster-sponsored by D.

(c) You must complete and submit a registration application form
and in some countries purchase a Registration Pack.
                                                                    YOUR ARE
(d) You must advise the you are registering as a
multiple business.                                                  SUPPORTED
(e) Your 1st Independant Business (IB) must be your International   Your business is well supported by a company you can trust.
Sponsor.                                                            Amway. The most important thing a IBOship provides is the
                                                                    immediate access to a range of quality Amway products. No bulk
(f) You will be given a second Amway IBO number to be used in       inventory purchase is required, and the products are backed by
that country upon the approval of your application.                 the Amway Satisfaction Guarantee.

•   You must repeat with the above provisions should you wish       Our desire is to see you succeed. We have various departments
    to establish another Amway International market.                within Amway that you can reach out to
•   Subsequent Independant Business (IB) in other countries         as you build your business.
    can be internationally sponsored by any one of your existing
    Independant Business (IB) if you indicate your choice on the    Return of Saleable Products
    Application Form for the subsequent Groups.
                                                                    Stock Reduction
                                                                    Amway accepts return of BV items which are current and in
For example, if a IBO has a No. 1 business in Australia, a No. 2
                                                                    saleable condition. Amway does not accept returned literature,
business in Hong Kong and a No. 3 business in Thailand, the IBO
                                                                    audio-visual aids, pins, plaques, forms, accessories, and other
must have determined at the time of signing the application
                                                                    promotional items and sales aids for replacement or for refund by
form for his No. 3 business which the existing Independant
                                                                    Credit Vouchers from operating Amway IBOs. The refund equals
Business will serve as the International Sponsor. Therefore, the
                                                                    the original purchase price less Performance Bonus received, less
IBO would have had two options from which to choose as
                                                                    up to 15% for handling, administration, and shipping costs.
shown below. It is recommended that the IBOs home market
be the International Sponsor.
                                                                    Refund for saleable merchandise (new and still available in the
                                                                    current line) will only be given with prior written permission from
Option 1
                                                                    Amway of Australia & New Zealand. Enclose that permission with
                                                                    the products you return.

       A                          B                         C
                                                                    Terminating business + return of saleable stocks
                                                                    Reimbursement for saleable merchandise (new and still available
                                                                    in the current line), unopened original packaging of current

      B #1                      B #2                      B #3      saleable literature, and for the unsponsored/unused Business
                                                                    Kit will be given when an IBO, through previous documentation,
                                                                    terminates the IBOship. The reimbursement is normally given
                                                                    with the next monthly computation of BV through the sponsoring
A personally sponsors B#1; B#1 internationally sponsors B#2         Independent Dusiness Owner. In exceptional cases, where the
foster-sponsored by C; and B#2 internationally sponsors B#3         line of sponsorship may not handle the merchandise return and
foster-sponsored by D.                                              reimbursement for the terminating IBO, Amway
                                                                    will handle the necessary transaction directly.
Option 2

                                                                    Current IBOs who resign will receive full resignation refund
      A                          B                         C        upon submission of their Business Kits complete with literature,
                                                                    resignation letter and ADA card.

                                                                    Non-renewed IBOs will receive only a Business Kit refund if
     B #1                       B #2                     B #3       their Business Kit complete with literature and ADA cards are
returned (together with resignation letter) within the one year     Return the products with a duly completed SA112 form to Amway,
nonrenewed period from expiry of                                    and the amount will be credited with your next order or you can
the IBOship. After which no refunds will be given.                  opt for a replacement.

The Credit Voucher                                                  Shoppers Catalogue items and Amway durable products
The Credit Voucher protects the IBO’s Performance Bonus! It is      (Big Ticket Items) such as eSpring® Water Treatment System,
a service that enables you to control your monthly group Point      atmosphere® Air Purifier, and iCook® range are
Value and Business Volume.                                          not covered by the Amway Satisfaction Guarantee, but
                                                                    by separate manufacturer’s warranty.
In addition, it enables the IBO to gain back purchasing power
within approximately 10 working days                                Repackaging Amway Products
of an order being shipped. A IBO will not have to wait for his
Performance Bonus to receive credit.                                Amway does not permit repackaging of its products. Amway
                                                                    products are to be sold only in their original packages
The Credit Voucher functions as follows:                            as manufactured by Access Business Group. Under no
                                                                    circumstances is a person authorised to repackage Amway

•    PV/BV Credit Voucher will be issued for any item shown as      products into new containers bearing the Amway name.

     TNA (Temporarily Not Available) on the invoice. It will be
     produced after the full order has been shipped and posted.     The reasons are as follows:
     Upon verification, the Credit Voucher will be updated to the
     recipient’s accounts.                                          (1) ‘Amway’ is the registered trademark of Alticor Inc. and is an
•    All PV/BV items ordered regardless of whether they were        extremely valuable asset. Accordingly, Amway will not permit
     shipped or not will be used in calculating the Performance     persons to market any product under the Amway name which
     Bonus for that particular month. This ensures that your        was not manufactured and packaged at Amway.
     Performance Bonus is not affected
•    by Amway’s inability to ship products, since your PV and BV    (2) Laws contain detailed provisions as to what must be included
     will not be reduced until the month in which you redeemed      in the labelling of products. These laws also limit the claims
     your Credit Voucher.                                           which can be made about a product. Amway carefully follows
•    Credit Voucher is also issued for products returned            these rules and regulations. They are extremely complicated and
     for credit under the Amway Satisfaction Guarantee.             change from time to time. An individual IBO is in no position
•    Credit Voucher can only be used for ordering items and         to keep abreast of the current status. Accordingly, an amateur
     cannot be redeemed for cash except under exceptional           attempting to develop his own packaging is very likely to
     circumstances. The Credit Voucher must be presented or         unintentionally violate labelling laws. Use of the Amway name
     referenced when you redeem it against your order.              on such repackaging not only puts the packager in jeopardy, but
•    Credit Voucher must be redeemed within one year from the       may also make Amway liable to possible penalty under
     date of its issue.                                             the laws of the country.

Return of Unsaleable Products                                       (3) Each product packaged by Amway is prepared under precise
                                                                    specifications. Whenever a repackaging operation is undertaken,
If a customer wants to return a product to you, get the following   there is always a possibility of contamination or adulteration of
information to complete a SA112 Returned Merchandise                the product. Repackaging of any product is subject to the same
Authorisation Form:                                                 laws and regulations governing manufacturing practices as are
                                                                    the original manufacturing and packaging operations.
1.   The reason for return.
2.   The product name and quantity.                                 (4) The sizes in which Amway makes its products available have
3.   The original invoice number.                                   been determined after very careful consideration. If other persons
4.   The name and address of the customer.                          (including IBOs) were permitted to repackage into sizes other
5.   Enclose a copy of the Customer Receipt (SA107).                than those made available by Amway, this would undoubtedly
                                                                    cause considerable confusion among IBOs and customers.
The IBO should then offer to replace the product with another
one, give full credit toward the purchase of another Amway
                                                                    Product Liability Protection
product, or refund the full purchase price.
                                                                    Amway products should not cause damage or injury if they
Products with manufacturing defects or products returned by         are used for their intended purpose and in accordance with
unsatisfied customers, for which a replacement has been given       instructions provided. In the event that an Amway product is
(or the full purchase price refunded) may be returned to Amway.     found to have a manufacturing defect or has been damaged in
                                                                    transit to the customer, the Amway 90 day satisfaction guarantee
                                                                    will apply in addition to Amway’S guarantee of quality that
                                                                    attaches to all its products.
Amway carries product liability insurance on its products which
protects both the company and its IBOs. However, this insurance
protection may not cover every situation and is dependent on
whether the injury or damage resulted from a faulty product,
from careless or negligent applications, or from the improper use
of a product. Amway’s insurance coverage does cover injury or
damage where a faulty product is involved, but does not cover
careless or negligent application or improper use
of a product.

Summary of Main Principles regarding Product Liability

(1) Like all people engaged in business, Amway IBOs may be
liable to possible damage or injury suits. Such lawsuits are,
however, extremely rare.

(2) Amway IBOs can avoid exposure to lawsuits if they are careful
and if they recommend only those uses of Amway products
which are detailed on Amway’s labels or in Amway’s literature.

(3) Amway’s insurance may not protect a IBO where the damage
or injury results from changing an Amway label, misrepresenting
a product, or from making claims other than those listed on the
product or printed in the
Amway literature.

(4) Every Amway IBO has the opportunity to secure his/her own
liability insurance at a relatively low premium. In the event that
IBOs are actively engaged in demonstrating or selling Amway
products, this additional opportunity to insure against liability is
recommended.
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