Understanding the Plan
The foundation of our business
Your income
Promote quality products that people use every day. Earn in three ways:
• Retail margin from every Amway™ product that a rgistered customer puchases.
• Bonuses calculated from your business growth.
• Incentives rewarded as you reach key milestones in your business.
Retail margin
We provide prices for customers for every product, which are 20% higher than your Amway Business Owner price. The difference between the ABO price and the price for customers is the first part of your income: your retail margin.
Amway Business Owner price - ABOs pay a special ABO price for every product.
PV determines your qualification level
PV stands for Point Value. Nearly all products have a PV. The total PV of all product orders placed by you and the business group together for the month determines your bonus level. This table shows you the PV amount you need to earn per month in order to qualify for the different Performance Bonus percentages. Point values of individual products can be found online.
BV is used to calculate your Performance Bonus
BV stands for Business Volume. Nearly all products have a BV value, which determines the size of the bonus you will receive at a certain bonus percentage level.
Monthly PV | Performance Bonus % |
10,000 PV | 21% |
7,000 PV | 18% |
4,000 PV | 15% |
2,400 PV | 12% |
1,200 PV | 9% |
600 PV | 6% |
200 PV | 3% |
Your Income example
When you calculate your bonus all you need to know is the total PV and BV of all your orders for a full month – that’s your sales volume. You can track your monthly PV and BV in ‘My Office’ on the Amway website after you log in. If you have sponsored a business group, you also need to know the volume of this group to calculate your overall bonus. You will discover there is a ratio between PV and BV. The total of all PVs determines your bonus percent level and the total BV determines the amount of bonus you can receive. If you have ABOs who are also eligible for a bonus it will be deducted from your gross Performance Bonus; they will not lose any of their achieved bonuses.
Let’s say your sales volume is 2,400 PV. Look back to the table to find your bonus percentage.
Your Performance bonus is 12%! Great job! Now we have all the information we need to see how much you’ll earn this month!
The example that follows is based on a PV / AV (PV / SEK) ratio¹ of 21,53158 and a retail margin of 20%.
¹Assumes ABO performs consistently and meets requirements each month. PV/BV ratio of “21,53158" is used as an example only. For the currently valid PV/BV ratio please check Amway webpage or contact Customer Service.
You have earned a 12% bonus by promote products to customers and you have already sponsored 3 downlines (each with customers of their own) who are earning a 3%, 6% and 9% bonus.
Retail Margin4
10% x 2,153 AV = 431 SEK
Your Personal Performance Bonus
Your Group PV is 2,400 PV/51,676 AV (200 personal PV/4,306 AV, plus 300 PV/6,459 AV from sponsored ABO A, 700 PV/15,072 AV from ABO B and 1,200 PV/35,838 AV from ABO C)
2,153 Personal AV
X 12% Performance bonus
_________________________
= 517 SEK
³This calculation is for estimation only, may vary depending on actual circumstances and can contain out-of-date information. Information is for illustration only and neither constitutes a promise, guarantee nor other bonus payment obligation by Amway. Income calculation results are gross and do not consider expenses and taxes related to the Amway business.
4This calculation with suggested 20% retail margin is based on ABO price.
The Differential Bonus is the Performance bonus percentage difference between you and your direct downline ABOs. How to calculate it: your percentage bracket minus the downline ABOs percentage bracket is the differential percentage. If you take the downlines’ group BV x differential percentage, you can calculate your differential bonus.
Your Differential Bonus from A = 581 SEK
(9 % x 6,459 BV = 581 SEK)
Your Differential Bonus from B = 904 SEK
(6 % x 15,072 BV = 904 SEK)
Your Differential Bonus from C = 775 SEK
(3 % x 25,838 BV = 775 SEK)
Your Monthly Income
Retail Margin + Your Personal Performance Bonus + Your Differential Bonus 431 SEK + 517 SEK + 2,261 SEK= 3,208 SEK
Your Yearly Income
3,208 SEK x 12 = 38,499 SEK