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GROWTH INCENTIVE PROGRAM 2018 Amway 60th Annivesary Personal & Frontline Awards Program

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Page 1: GROWTH INCENTIVE PROGRAM 2018 - Amway of …...Amway 60th Anniversary is an exclusive Diamond Invitational Event at Las Vegas in May 2019 Qualify as a Diamond and you can be on your

GROWTHINCENTIVE PROGRAM

2018

Amway 60th AnnivesaryPersonal & Frontline

Awards Program

Page 2: GROWTH INCENTIVE PROGRAM 2018 - Amway of …...Amway 60th Anniversary is an exclusive Diamond Invitational Event at Las Vegas in May 2019 Qualify as a Diamond and you can be on your

GIP 2018

Personal & Frontline Awards Program

Grow your personal and frontline volume to be in the running for more earnings! Performance Year: PY 2018 Qualification Period: 1 September, 2017 to 31 August, 2018

This program is for all IBOs.

Simply grow the total number of personal and/or frontline Qs (qualifying growth months) you achieve in PY 2018 above what you achieved in PY 2017 to receive a payment (please see payment schedule below)

What is a Personal / Frontline Q?

Volume Personal Q Frontline Q Total # of Q

7,500 PGV with no qualified legs 1 0 1

3,250 PGV plus 1 x qualified leg 0 1 1

5,000 PGV plus 1 x qualified leg 1 1 2

150 PGV plus 2 x qualified legs 0 2 2

5,000 PGV plus 2 x qualified legs 1 2 3

150 PGV plus 3 x qualified legs 0 3 3

5,000 PGV plus 3 x qualified legs 1 3 4

The following examples below indicate what happens when PGV amounts multiply.

Volume Personal Q Frontline Q Total # of Q

15,000 PGV with no qualified legs 2 0 2

22,500 PGV with no qualified legs 3 0 3

10,000 PGV plus 1 x qualified leg 2 1 3

10,000 PGV plus 2 x qualified legs 2 2 4

10,000 PGV plus 3 x qualified legs 2 3 5

• Where an IBO has one or more qualified legs AND achieves Ruby Volume (15,000PGV or more) they will only be entitled to receive a maximum of 2 x Personal Q’s.

Personal & Frontline Q Program Payment Schedule

Not a qualified Platinum in PY 2017 Qualified Platinum or above in PY 2017

$1000 for each Q you achieve above the total number of Qs you achieved in PY 2017

$2,000 for each Q you achieve above the total number of Qs you achieved in PY 2017

• You must have at least 150 PPV in ALL qualifying Q months.

• All payments will be made progressively once you have requalified at the pin level you achieved in PY 2017.

• All New Zealand qualifiers will be paid in Australian dollars which will then be converted to the equivalent amount in New Zealand dollars at the time of payment.

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Achievers 2018 is going to the Ritz Carlton, Nusa Dua!

Great Business Seminars coming your way...

How to qualify for Achievers 2018 Nusa Dua?

Previously qualified events? Achievers Qualified Months Required?

Never qualified Q8

Qualified once or Q9

Qualified twice and Q10

More than twice and and Q12

Or via Volume Equivalency with at least 10 x Achievers Qualified Months plus at least 108,000 PGV. Emerald Bonus/Rebate Recipients receive an automatic qualification.

What is an Achievers Qualified Month? Achieve a minimum of 150 PPV plus...

7,500 PGV or 3,250 PGV plus 1xQ leg or 2,000 PGV plus 2xQ leg or 1,000 PGV plus 3xQ legs

• You must also qualify at least Platinum pin.

*STOP PRESS All Achievers 2018 Nusa Dua qualifiers with an initial target of 8 x Achievers Qualified Months, must achieve a minimum of 6 x Achievers Qualified Months plus a minimum of two 15% bonus/rebate schedule months.

All other Achievers 2018 Nusa Dua qualifiers with initial targets of 9, 10 or 12 Achievers Qualified Months may count a maximum of one 15% or more bonus/rebate schedule month towards their required Achievers Qualified Months targets.

NEW EMERALD UBUD GETAWAY!New Emerald Bonus Recipients and Emerald Rebate Recipients in 2018 will be whisked away to Ubud, the cultural heart of Bali located in the cool mountains, for 3 luxurious nights at a five-star resort, as an addition to Achievers 2018 Nusa Dua. Accommodation, meals, transfers and a fantastic activities package are all included!

Page 4: GROWTH INCENTIVE PROGRAM 2018 - Amway of …...Amway 60th Anniversary is an exclusive Diamond Invitational Event at Las Vegas in May 2019 Qualify as a Diamond and you can be on your

Amway 60th Anniversary is an exclusive Diamond Invitational Event at Las Vegas in May 2019Qualify as a Diamond and you can be on your way!

Amway 60th Anniversary

Gold Coast in October 2018Stay 3 days and 2 nights in luxury while you take your business to the next level with exclusive business training.

At your nearest Amway Business Centre in April 2018.Join your State Sales Manager in Australia or Senior Manager in New Zealand to get a glimpse of some high level training and insight into important forthcoming business, product, training and digital initiatives.

New Gold & Silver Producer Seminar

GIP 2018

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PY 2018 One Time Cash Awards for 9% and 12%First Time 9% Performance Bonus Schedule level* plus minimum 1500 PGV $500

First Time 12% Performance Bonus Schedule level* plus minimum 2500 PGV $1000

*You must hit 9% for the very first time together with minimum 1500 PGV or 12% for the very first time together with minimum 2500 PGV. First time will be measured as not having been at these bonus schedule levels in the past 3 qualification years - PY 2017, PY 2016, PY 2015.

*BSP (Balanced Sustainable and Profitable) rules apply.

*Further, to be eligible an IBO must have minimum 2 bonus paying legs in month of qualification. Where an IBO has in history achieved more than 12% level are not eligible to participate in a 9% OTCA payment; and where they have in history been 15% or higher they are not eligible to participate in a 12% payment.

Terms and Conditions apply.

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Founders Achievement Awards(FAA)These annual cash awards are presented to those IBOs who demonstrate extraordinary business development and exhibit high ethical and business standards.

There is a New FAA Program being introduced this year as well - please see page 7 for further details. Both FAA programs will be monitored simultaneously for the next three years 2018,2019,2020. Eligible recipients will be paid and rewarded on whichever FAA program offers them the higher of the two FAA rewards.

How to Calculate FAA credits

Domestic Legs CreditsInternational Legs Credits

#2 Businesses

Q12 Leg 1.0 #2 Q12 leg 1.0

EBR Leg 1.5 #2 EBR 1.5

DBR Leg 3 #2 DBR 3

Other Q12 International leg 0.5

Existing FAA ProgramFAA Points Range AU Payment NZ Payment

8 leg credits AU$44,000 NZ$45,000

12 leg credits AU$88,000 NZ$90,000

16 leg credits AU$176,000 NZ$180,000

20 leg credits AU $264,000 NZ $270,000

25 leg credits AU $352,000 NZ $360,000

30 leg credits AU $528,000 NZ $540,000

35 leg credits AU $704,000 NZ $720,000

40 leg credits AU $880,000 NZ $900,000

45 leg credits AU $1,056,000 NZ $1,080,000

50 leg credits AU $1,232,000 NZ $1,260,000

55 leg credits AU $1,408,000 NZ $1,440,000

60 leg credits AU $1,584,000 NZ $1,620,000

65 leg credits AU $1,760,000 NZ $1,800,000

70 leg credits AU $1,936,000 NZ $1,980,000

GIP 2018

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PY 2018 One Time Cash AwardsThese annual cash awards are presented to those IBOs who demonstrate extraordinary business development and exhibit high ethical and business standards.

AWARD AU$ NZ$

Double Diamond $66,000 $67,500

Founders Double Diamond $88,000 $90,000

Triple Diamond $110,000 $112,500

Founders Triple Diamond $132,000 $135,000

Crown $176,000 $180,000

Founders Crown $220,000 $225,000

Crown Ambassador $264,000 $270,000

Founders Crown Ambassador $308,000 $315,000

Page 8: GROWTH INCENTIVE PROGRAM 2018 - Amway of …...Amway 60th Anniversary is an exclusive Diamond Invitational Event at Las Vegas in May 2019 Qualify as a Diamond and you can be on your

THE NEW

Rewarding balanced, sustainable business

FoundersAchievermentAward

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Since our founding in 1959, Amway has been committed to enabling success for our ABOs. Our founders, Rich DeVos and Jay Van Andel, started Amway as a way to help people everywhere start their own business and achieve their full potential.

The business was built on four Founders Fundamentals:

FREEDOM FAMILY HOPE REWARD

We believe that good work deserves appropriate recognition and financial reward. This change to FAA will better reward ABOs for building balanced, sustainable businesses and developing their downline leaders. This fundamental shift in FAA is taking place as a part of a global change to better align with the Core Plan. Amway is preserving full investment in the New FAA Bonus Program, and with this change, bonus payments will be redeployed to leaders with strong and balanced structures.

THE NEW PROGRAM WAS DESIGNED WITH SIX KEY PRINCIPLES IN MIND:

ALIGN WITH CORE PLAN

REWARD LEADERS FOR BUSINESS BUILDING EFFORTS

REWARD ACTIVE & DIRECTMARKET INVOLVEMENT

NO INTERNATIONAL BORDERS

PROMOTE BUILDING SOLIDFOUNDERS PLATINUM LEGS

ENCOURAGE SUSTAINABLEBUSINESS BUILDING

COMMITTED TO YOUR SUCCESS

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Monthly Core Plan Bonus

PERFORMANCE

DEPTH

RUBY

LEADERSHIP

THE NEW FAA BONUS PROGRAMAT A GLANCE

strengthening the connection between FAA & Core Plan

How to Qualify

+ +DBR*

4x in-market

Founders Platinum

legs

20 points

*DBR = Diamond Bonus Recipient

Multiplier Table

+ Super Legs

Min F Plat Legs

4

8

10

12

35

27

20

75

60

45

125

105

90

150

300%

250%

200%

500%

450%

400%

700%

650%

600%

750%

Points Multiplier Percentage

Super Legs Bonus ($USD)

1 $0

4 $80,000

7 $180,000

2 $40,000

5 $100,000

8 $220,000

3 $60,000

6 $140,000

... U N L I M I T E D P O T E N T I A L

Super Legs Bonus

A Super Leg is a Founders Platinum leg with 30+ points

This bonus rewards ABOs who earn the highest multiplier (750%) and have two or more legs at 30 points

The better you build, the more

you can earn

Paid annually for each and every year that you qualify

The better you build, the more you can earn Super Legs are not capped, allowing for

unlimited potential

XAverage Monthly Core Plan Bonus

=Multiplier (based on

width and depth)FAA Bonus Payment

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THE NEW FAA BONUS PROGRAMAT A GLANCE

THINGS TO KNOWPARTICIPATION REQUIREMENTS

In order to participate in the New FAA Bonus Program ABOs must:

• Be in good standing• Be a DBR in at least one market (#1

or #2 business, ISD businesses do not count)

• Have four in-market F. Platinum legs under their #1 and #2 businesses

• Have earned a minimum of 20 FAA points on a global basis

OTHER RELEVANT FACTS

Amway is committed to supporting ABOs through a three year transition period from distributor years 2018 - 2020. During this time, Amway will calculate and pay the better bonus/rebate of the Original FAA Bonus/Rebate Program or the New FAA Bonus/Rebate

Program. At the end of the period, the approach of paying the better of the New vs. Original FAA Bonus/Rebate will end. For further support, a Tracking Tool will be available in MyBiz to help you view your personal performance within the New FAA Bonus/Rebate Program.

DBR = Diamond Bonus/Rebate Recipient

EBR = Emerald Bonus/Rebate Recipient

ISDb = Internationally Sponsored Designee

BSC = Business Sales Consultant

BONUS/REBATE CALCULATION New FAA Bonus Payment = Average Monthly Core Plan Bonus x

Multiplier (based on width and depth)

Average Monthly Core Plan Bonus/Rebate Calculation

The average monthly Core Plan Bonus/Rebate calculation is based on the twelve month distributor year. As an uncapped opportunity there is unlimited potential for financial success and stability.

All monthly Core Plan income is included in the average monthly Core Plan bonus/rebate calculation (including #1 and #2 businesses).

Monthly Core Plan bonuses are:

2% LB/Foster enhancement will also be included.

The following are not included in the average monthly Core Plan bonus/rebate calculation:

• GIP and Annual Core Plan bonuses

• ISD businesses do not count for income

If you have multiple businesses, they do not have to be qualified F. Platinum for bonus to count toward the calculation total.

Note: Bonus from #2 businesses will be converted into home market currency each month for the purpose of calculation

Super Legs CalculationA Super Leg is defined as a F. Platinum leg that contributes 30 points toward their FAA point total. If a business has qualified for the maximum multiplier, they are also eligible to receive a Super Leg bonus.

The bonus calculation is based on the number of Super Legs an ABO has built. There is no bonus paid for one Super Leg, but beginning with two Super Legs, each is worth $20,000 USD. Beginning with the 6th Super Leg, the bonus increases per leg to $40,000 USD - and there is no cap on earning potential.

Note: The Super Leg bonus is not PI adjusted and is worth the same amount no matter where the Super Leg exists.

• Performance• Ruby• Leadership• Monthly Depth

• Foster• International

Leadership

Multiplier Calculation

The multiplier calculation is determined based on F. Platinum legs and points. F. Platinum legs and New FAA points are counted in total across all multiple businesses (#1 and #2). Both requirements must be satisfied to advance up the multiplier schedule. The maximum multiplier that can be achieved is 750% and is reached when a business has a minimum of 12 F. Platinum legs and a minimum of 150 points.

Note: In addition to multiple businesses, ISDs, Marketing Advisors and BSCs can contribute toward both F. Platinum legs and New FAA points.

FOUNDERS PLATINUM LEGSIn order for a leg to be counted as a F. Platinum leg, there must be a F. Platinum qualifier in the leg. Multiple business qualification does not contribute toward F. Platinum leg total, only downline F. Platinum legs of multiple businesses contribute. The following are also not included in the multiplier calculation:

• Q12 legs without a F. Platinum qualifier• Internationally sponsored F. Platinum

legs

Note: Volume equivalence F. Platinum qualification is counted equally as F. Platinum qualification.

POINTSPoints are calculated based on the number of leaders within each qualified F. Platinum leg. To earn any new FAA points down a F. Platinum leg, the #1/#2 business must be a F. Platinum. Points are additive within each F. Platinum leg, which have maximum contributions. A maximum of 6 points can be contributed by F. Platinum qualifiers within a F. Platinum leg. A maximum of 30 points can be contributed by a single F. Platinum leg.

Points are awarded based on the following values per qualifier:

• 1.0 for F. Platinum• 1.5 for EBR• 3.0 for DBR

Note: EBR and DBR must also be F. Platinum to count

There is no maximum to the number of points that EBRs or DBRs can contribute within a F. Platinum leg, up to the 30 allowed points. In order for a F. Platinum leg to contribute more than 1 point, the multiple business must be EBR in the local market. If not, the F. Platinum leg is capped at 1 point regardless of the number of qualifiers in the leg.

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TERMS & CONDITIONS1. All New Zealand Progressive Cash Award qualifiers will be paid in Australian Dollars (AU$) which will then be

converted to the equivalent amount in New Zealand Dollars at the time of payment. 2. All IBOs who wish to participate in the 2018 Growth Incentive Program will be required to electronically register their

acceptance of the terms and conditions, inclusive of the Higher Award and Growth Incentive Program Tracking and Review Process. Only registered incentive participants will be processed under the Higher Award and Growth Incentive Program Tracking and Review Process to qualify for potential incentive payments. These terms and conditions must be read in conjunction with the Higher Award and Growth Incentive Program Tracking and Review Process PY 2018 Australia and New Zealand requirements which will be available from mid July 2017.

3. An IBO must be in good standing with Amway to receive any Personal or Frontline Q cash award payments or receive an invitation to ANY Amway Business Seminar. At all times, the Rules of Conduct for Amway IBOs (Rules of Conduct) must be complied with. All GIP payments and incentive trip qualifications are subject to the Higher Award and Tracking verification audit process and payable at the discretion of Amway

4. A minimum of 3 x full business months must pass after the month an IBO registers as a new IBO before they can qualify at the Silver Producer level. The new Silver Producer qualification will be subject to preliminary denial and a full review if this requirement is not met

5. Any IBO who qualifies for either an Achievers qualified month or any personal or frontline Q cash award or any other initiative that is part of the Growth Incentive Program 2018 must have a minimum of 150 PPV in each qualifying month. Where an IBO achieves 150 PPV for a qualifying month this requirement EXCLUDES automatic top-up and automatic top-up reversal.

6. All personal and frontline Q cash awards and all 9% and 12% One Time Cash Awards will be paid upon the completion of the relevant higher reward qualification and review process (usually within ten weeks after the actual qualification month) has been finalised. For example, if you qualify for a payment in September 2017 you will be paid in mid -December 2017. All IBOs must also requalify in PY 2018 at their highest pin level they achieved in PY 2017 to be eligible to receive a personal and frontline Q cash award

7. To qualify for a personal or frontline Q cash award all qualifying months must be within the 2018 Amway Performance Year.

8. For the personal and frontline Q cash award program all IBOs will have a predetermined PY 2018 Q baseline which is the actual total number of personal and frontline Q’s achieved in the 2017 performance year.

9. If an IBO achieves Ruby Volume ( minimum 15,000PGV) AND also had one or more qualified legs they will only be entitled to receive a maximum of 2 x Personal Q’s.

10. All qualified Platinums and above as of 31 August 2017 will receive their PY 2018 personal and frontline Q base from their State Sales Manager in Australia or their Senior Manager in New Zealand in late September 2017.

11. If there is default on instalment finance of volume that contributes to any higher award qualification, AMWAY reserves the right to withhold the qualification and award and any related cash award payment until the debt is resolved.

12. To protect the line of sponsorship AMWAY has instituted procedures, as far as practicable, to issue finance terms only to IBOs with the appropriate credit history, however, bonus/rebate qualifiers acknowledge that instalment debt

What Can I Earn?

Amway Pin Level Qualification IBO Earnings

Platinum Up to $45,000

Founders Platinum Up to $75,000

Founders Emerald Up to $200,000

Founders Diamond Up to $250,000

These figures are inclusive of Growth Incentive Program payments. Income levels will vary depending on the business activity, business structure or the application of the Amway Growth Incentive Program in any given year. Indicated results are based on analysis of the 2016 performance year potential earnings which are expressed in Australian dollars.

GIP 2018

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Amway DefinitionsACHIEVERS: The annual invitational business seminar for high performing IBOs.

EMERALD BONUS/REBATE RECIPIENT(EBR/ERR): An IBO will have personally or foster sponsored three or more in-market 21% groups, each of which have qualified at the maximum performance bonus level in at least six months of the Amway Performance Year.

SILVER PRODUCER An IBO who achieves one qualifying Silver Producer month within a rolling twelve month period.

GOLD PRODUCER: An IBO who achieves three qualifying Silver Producer months within a rolling twelve month period.

PGV: Personal Group Volume (PGV): Any volume outside of an IBO’s entire existing qualified leg(s).

PPV: Any Volume which is purchased by an IBO for personal use, or for sale to customers.

PY 2017: Performance Year that runs from1 September 2016 through to 31 August 2017.

PY 2018: Performance Year that runs from 1 September 2017 through to 31 August 2018.

PY 2019: Performance Year that runs from 1 September 2018 through to 31 August 2019.

PY 2020: Performance Year that runs from 1 September 2019 through to 31 August 2020.

QUALIFYING LEG: A personal or foster sponsored leg that has qualified at the maximum performance bonus level of 21% for a minimum of six months within the same Amway Performance Year.

RULES OF CONDUCT: The Rules of Conduct for Amway IBOs which can be found at www.amway.com.au/rulesofconduct or www.amway.co.nz/rulesofconduct.

VOLUME EQUIVALENCY (VE): Achieved by generating at least 10 Silver Producer qualified months in the Performance Year along with 108,000 VE, which equates to 120% of the annual Founders Platinum volume. Volume Equivalency includes both non-qualifying and qualifying volume from your entire in-market group during the Amway Performance Year.

These terms and conditions are subject to change without notice.

management is a joint responsibility between the leadership and AMWAY.13. If an audit of a qualification month indicates noncompliance with the Rules of Conduct or Higher Award tracking

requirements Amway will take steps to recover Progressive Cash Award payments and Platinum Growth cash award payments. If there is a return of products exceeding 400 PV (200 PV in New Zealand) by a qualifier or an IBO through line from a qualifier the PV will be reworked back to the month of purchase and any personal or frontline Q cash award paid in relation to that product will be recoverable by Amway.

14. To participate in the PY 2018 Growth Incentive Program, all IBOs must comply with the Amway Rules of Conduct, 15. All IBOs must be in good standing with Amway to receive an invitation to ANY business seminar as a part of the

PY 2018 Growth Incentive Program.16. Travel and accommodation will not be provided for the New Silver and Gold Producer Seminars.17. The New Silver and Gold Producer Seminar, New Platinum Seminar, Achievers, New Emerald Ubud Getaway and

Diamond Invitational events are all classified as invitational events. Thus, if an IBO receives an invitation and chooses for whatever reason not to attend any of these events they will not be reimbursed with any of the costs associated with that particular event.

18. All IBOs are responsible for their own visas upon departing and/or returning into Australia or New Zealand for any Achievers New Emerald or Diamond Invitational event which is held overseas. If for any reason an IBO is refused re-entry back into Australia or New Zealand owing to a visa issue the IBO(s) will be liable for ALL associated accommodation and travel costs incurred for any additional time which they are required to spend in the country where the event is located.

19. Achievers 2018 Nusa Dua and New Emerald Ubud Getaway are invitational events only extended to those names listed on the Amway independent business. Therefore, any children of any Amway independent business owner(s) are not invited.

20. These Terms & Conditions are subject to change without notice.