Amway compensation plan

The Amway Compensation Plan Overview. How it works

May 24, 2013

by Darrel Andrews

in MLM Reviews

The Amway compensation plan is a way of helping you achieve your financial goals by becoming a distributor of Amway products.

At present there are some three million distributors worldwide who help sell the company’s more than 450 unique products.

Amway distributes its products using the direct selling model, in which distributors sell the product directly to customers and recruit other distributors. Here is a quick overview of the Amway compensation plan.

How to Make Money Using the Amway Compensation Plan

Under the plan there are two ways to make money as an Amway distributor or Independent Business Owner:

Sell Amway products and recruit other IBOs to work as a team and earn leadership awards and other financial incentives.

To become an IBO, and take advantage of the Amway comp plan, you will have to buy a welcome kit that contains step-by-step instructions on how to start your Amway home business. You can also buy an optional product kit that includes full-size product samples that you can use at home or give away to clients.

Here are the two ways you can earn under the Amway compensation plan

Earn a retail markup on the products that you sell.

As an Amway IBO, you are entitled to buy product at discounts of up to 35 percent. You can then resell the product to customers at full price and pocket the difference. Or you can choose to give your customers a slight discount that will make the product price even more competitive while still allowing you to earn a profit from the markup.

Earn bonuses based on how much product you sell. Each Amway product is allocated a business value and a point value. The amount of bonus money you earn is determined by how much business value you accumulate.

The point value determines what percentage of the business value will go towards your bonus.

amway comensation planTo illustrate, let’s say you sell some $500 worth of Amway products in a month, which is equivalent to a 500 Bonus Value. If you sell the product at full price, you will earn $150 based on a 30% markup.

If you accumulate 100 PV, you will be entitled to a further 3% of your BV or $15. Hence, your earnings for the month will be $165.

You then build up your team by recruiting at least six new IBOs. If each team member also succeeds in selling $500 worth of product a month, and accumulating 100 PV each for a total of 700, your will qualify for a bonus of 9% on the accumulated business value of $3,500, or $315.

If each distributor opts to recruit their own IBOs, the number of point value your group accumulates increases further, boosting you to a higher bonus level.

If your group accumulates at least 7500 PV in one month, and maintains this for three months, you achieve platinum status. Under the Amway compensation plan, IBOs who achieve this status are entitled to a $20,000 annual bonus as well as a four day paid vacation.

You will receive a further bonus for each IBO in your group that achieves platinum status.

Is the Amway compensation plan the best in the business?

The Amway compensation plan is a great way to build a residual income, however it can be a bit complicated to understand. After being in the home based business for a long time I have seen many compensation plans out and I actually started out as a Amway distributor.

But as of today the best compensation plan that I have ever come across in the home based business/MLM industry, would be Empoweramway compensation plan Network’s compensation plan, paying out 100% of the money back out to the distributors. It’s very simple to understand and it’s incredibly POWERFUL.

This is the best compensation plan in the business and you can find out why here: The Empower Network compensation plan

To your success and prosperity,

Darrel Andrews

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