Parent Company

Alticor Family of Companies

What is the Amway Sales Marketing Plan?

It is proven marketing system designed to reward the efforts of those who operate their business in accordance with it.

How Does the Amway Sales and Marketing Plan work?

1. Profit from Product Sales

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

2. Performance Incentive based on Product Purchases

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

the difference between your performance Incentive and the Incentive percentages of your personally-sponsored IBOs, (the latter based on the purchases of your sponsored IBOs during that month) applied to the BV of your group’s purchases.

PERFORMANCE INCENTIVE INCLUDES:

the Performance Incentive percentage (determined by your personal group PV) applied to the Business Volume of your personal purchases for the month.

1. A “Personal Discount”

2. A “Differential Commission”

If your group monthly PV is:

10,000 PV or more 21% OF Group BV

7,000 PV 18%

4,000 PV 15%

2,400 PV 12%

1,200 PV 9%

600 PV 6%

200 PV 3%

The Performance Incentive generated is:

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

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

NUTRILITE LECITHIN E110PCS/BOTTLE

19.29 688 P1,000.00 P770.00

NUTRILITE CHROMPIC EXTRA120PCS/BOTTLE

40.21 1,433 P2,085.00 P1,605.00

NUTRILITE POSITRIM DRINK PROTEIN14 PACKETS/BOX

49.98 1,781 P2,595.00 P1,995.00

ARTISTRY PURE WHITE ESSENCE30 ML

51.86 1,848 P2,690.00 P2,070.00

LOC MULTIPURPOSE CLEANER1 LITER

6.14 219 P320.00 P245.00

ARTISTRY MOISTURE PLUS14.5ML

31.45 1,121 P1,680.00 P1,255.00

211.08(PV)

1PV=35.64 BV

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

7,523BV / 211.08PV = 35.64

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

Your sponsor

You

How Sales and Marketing Plan works??

Example No.1

Accumulated

211.08 PV

Let us assume that your business reaches 211.08 PV first month. Retail profit margin will average 30% of the Distributor Price before tax; in this example, 2,256.90. In addition to the retail profit margin, 211.08 entitles you to a Performance Incentive is based solely on your own product purchases in this example, the entire amount will be a discount. On 7,523 BV, the discount will be 213.84.

With a monthly total of 211.08 PV, your business gross amount will be:

Total Monthly PV:

Explanation in Example No.1

(211.08 PV x 35.64)

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

Total Monthly BV: 7,523

Retail: Profit before Discount (30% x 7,523) Your Income:

2,256.90 Discount: (7,523 x 3%) + 225.69

Monthly Gross Amount: 2,482.59

Let us assume that your business sponsors 8 new IBO’s and that each of these new businesses purchases 211.08 PV a month. Using the Performance Incentive Schedule, your business earnings would be as follows:

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

Example No.2

You211.08PV

Jose211.08PV

Allen211.08PV

Chris211.08PV

Jay211.08PV

Brenda211.08PV

Eric211.08PV

Mario211.08PV John

211.08PV

Your Income:Retail Margin on Product Sold 2,256.90

Personal Discount (211.08PV) = 7,523 BV x 9% PL 677.07 + 12% VAT 81.246% Differential commission from C group 7,523BV x 6% (451.38 x 8 A’s)

3,611.04

TOTAL MONTHLY EARNINGS 6,626.25

(9%-3%=6%)

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

-Retail Margin on Product Sold

-Personal Discount (211.08PV) = 7,523 BV x 21% PL

+ 12% VAT

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

4,026.31 x 8 A’s TOTAL MONTHLY EARNINGS

Let us assume that each of the 8 IBO’s purchases 211.08 PV in a given month and that each one sponsors 4 other IBO’s who also purchase 211.08 PV each. The total volume of these 40 IBO’s would be 17,097.48. Including your PV of 211.08, your total group PV is 17,398.56

Example No.3

You211.08PV(Grp.PV 1,899.72)

Jose211.08PV(Grp.PV 1,899.72)

Allen211.08PV(Grp.PV 1,899.72)

Chris211.08PV(Grp.PV 1,899.72)

Jay211.08PV(Grp.PV 1,899.72)

Brenda211.08PV (Grp.PV 1,899.72)

Eric211.08PV(Grp.PV 1,899.72)

Mario211.08PV(Grp.PV 1,899.72)

John211.08PV(Grp.PV 1,899.72)

2,256.90 1,579.83

189.58

32,210.48

36,236.79

Your Income:

THANK YOU!! LOOKING FORWARD FOR YOUR SUCCESS!