Amway is a global direct selling company founded in 1959 that had a global turnover of $10.9 billion in 2011. It operates in over 100 countries worldwide and has over 5,00,000 independent business owners who sell Amway products. Amway uses a multi-level marketing model where business owners can earn income from retail profits, rebates based on sales volumes, and bonuses from the sales of their downlines.
2. Facts about Amway Business Opportunity…
Started in US in 1959 with 1 product
Global turn over of Rs.45000 crores / USD 10.9
Billion
Debt free company
Largest direct selling company of the world
600 patents, 450 products
100% money back guarantee on products
32000 product training session each yr
The Amway opportunity foundation supports more
that 800000 visually impaired children
3. Around 140 products in five categories:
Home Care, Personal Care, Nutrition & Wellness
Attitude & Artistry, Agricare – APSA80
Insurance thur AMSURE – Max New York Life.
4. It is Rs.2200 Crores for the
year ended 31/12/2011 !!
5. Third Party manufacturing
7 manufacturers in India, largest being Sarvottam Care, Baddi.
4 main regional warehouses
Bangalore
Kolkata
Delhi
Mumbai
55 smaller warehouses across 4000 towns and cities
140 Plus offices
5,00,000 Plus Amway Business owners (ABO)
8. Amway globally follows a combined strategy of direct
selling and multi-level marketing for distribution.
Every ABO becomes a part of Amway’s distribution
network.
Amway business owners can earn income and other
incentives in a variety of ways.
They fall under the categories of:
Retail Markup,
Volume Rebates,
Leadership Bonuses and
Higher Awards and Incentives.
9. Amway
ABO 1
END
CONSUMER SPONSOR
ABO 2
SPONSOR
END
Every ABO & Sponsor has to CONSUMER ABO 3
register with Amway
10. ABO’s can buy products directly from Amway at
wholesale prices and sell them at retail prices
directly to customers or add a mark – up and sell
them to other ABO’s. the difference is earned by
the ABO.
The retail mark–up for Amway is 20%
11. Rebate (%
PV BV
of BV)
Every product is allocated a Point 10,000+ 6,60,000 21%
Value (PV) and a Business Volume
7,000 4,62,000 18%
(BV). The PV is used to calculate the
rebate percentage earned. 4,000 2,64,000 15%
The BV is usually close to the 2,000 1,32,000 12%
wholesale price of the product less 1,000 66,000 9%
any sales tax.
300 19,800 6%
The rebate paid is calculated by
multiplying the PV rebate 1PV = 66 BV
percentage by the total BV.
Approximately every family requires
products equivalent to 100
PV per month.
12. Let’s presume that you have 2 friends, who are interested in buying Amway
products and you make them your customers. So in order to meet the monthly
requirements of your own along with your friends you can easily sell products
worth 300 PV.
You
Personal use Total sale 19800
100 PV
Retail profit 3960
margin @
20% of
Customer1: Customer 2 personal sale
Sale:100 PV Sale:100 PV Commission 1188
earned 6% of
total BV
300 PV = 19800 BV Total amount Rs.5148
6 % Rebate On final earned
volume
13. Let us now take another example of you having sponsored 4 persons as Amway
Business owners and each of you doing a business of 300 PV i.e. purchasing Amway
products worth BV of 19,800 each
A Total Sales Turnover of the 99000 BV
Sale: group
300 PV
Total Performance Bonus Rs. 8,910 (X)
earned by group
is 9% of 99000 BV
You
Performance Bonus paid Rs. 4,752 (B)
Sale :
to your down lines A, B, C
300PV & D [6% of 79,200 BV
(turnover of down lines)]
A
A Bonus paid to you (X - B) Rs. 4,158
Sale:
Sale: 300 PV
300 PV A Retail Profit margin @ 20% Rs. 3,960
Sale: on personal volume
300 PV
Your Total Earning of the Rs. 8,118
month
Total sale : = Rs. 4158 + Rs. 3960 =
1500 PV =99000 BV
14. Performance Bonus
Commission
leadership bonus
4 % leadership bonus for a sponsor whose down
lines have become direct distributors.
Recognition levels
Silver
Gold
Platinum
Diamond. etc
15.
16. Amway
Lead Organization. Head Office in USA
Regional Affiliate Organizations
e.g. Amway (India)
100% Money-back Guarantee
IBO’s
End Consumers
17. Payment Mode -
Account payee
cheques drawn in
favor of Primary
Applicant/Entity
only
18.
19. You don’t need to lead anyone personally to
God.
You just have to sign up 10 people into the
Amway Business Opportunity and change
their Lives.
Make each one of the above 10 sign up 10
people into the Opportunity and help change
THAN
K YOU
their Lives…
Continuation of the above Cycle helps
thousands and millions of People around the
World to Financial Independence.
Their Blessings will automatically give you
the path to Salvation / Moksha..
Hinweis der Redaktion
Amway was founded in 1959 by Jay Van Andel and Richard DeVos . Based in Ada, Michigan , the company and family of companies under Alticor reported sales growth of 15%, reaching US$ 8.2 billion for the year ending December 31, 2008 In 1949, DeVos and Van Andel had formed Ja-Ri Corporation
With Amway, all authorised representatives make their initial purchase at the same price, no matter the volume. At the end of the month the total volume of products purchased through that ABO is added up, and the volume discount paid as a rebate, typically on or about the 13th of the following month. In addition, the volume is based on all products purchased, so you don't need to buy large inventory of one product to receive a discount, as is often the case in traditional distribution.
Increasing Sales Volume An ABO's sales volume consists of three components - products purchased for personal use, products sold at retail to personal clients, and products sold at wholesale to other ABOs whom they introduce to the business ("sponsor"). Increasing any of these three areas increases an ABOs total sales volume. Products sold through sponsored ABOs result in smaller profit margins than products sold directly to consumers, however the increased sales volume would normally make up for the smaller margins. This is analagous to a retail store situation where the store owner may employee additional sales people (an expense) in the hope that the increase in sales volume will offset this and lead to overall greater profits. An ABO will invest time in finding and training new ABOs as well as retail clients because the new ABOs will eventually be able to create sales volume without their sponsor's input.