EARNINGS

Let’s take few examples to illustrate how Amway Sales & Marketing plan works:

E.g.1:

Since Amway Business Model is based on retailing of Products. Let’s take a simple example of how you can reach a first performance bonus level of 6% i.e. 300 PV as a starting point. 

On an average a nominal family would need under mentioned products every month.

Average usage for a Family of 4 members.

Products	PV	BV
SA-8 Gelzyme 500 ml – Laundry detergent	4.63	277.80
LOC 1 Ltr. Multi-purpose cleaner	4.71	282.60
Dish Drops – 1Ltr	6.35	381.00
Glister Tooth paste – 1 No	1.53	91.80
Satinique 2 in 1 Shampoo	4.63	277.80
Persona bar Soap of 3 (75gms)	1.35	81.00
Nutrilite Protein powder 500 gms (1)	21.16	1269.60
Nutrilite Daily Big Pack (1) Multi Vitamin	23.85	1431.00
Nutrilite Kids Drink 500mg	11.00	660.00
Attitude Face Wash	2.82	169.20
Artistry Time Defiance Lotion	27.52	1651.20
Total	109.55	6573.00

Thus every Family needs approximately Amway Products equivalent to 100 PV per month. 

Let’s presume that you have 2 to 3 Friends, who are interested in buying Amway products and you make them your Customers. So in order to meet monthly requirements of your own along with your friends, you can easily sell products worth 300 PV.

When you make 300 PV you are eligible for a commission of 6% on the total BV. In this case your BV will be approximately 18,000 (Equivalent to 300 PV).

Apart from this as a dealer you are eligible for a product discount of 20%...

Now what is your total Earning?

      Profit through 20% discount on Products i.e. 18,000*20% = Rs 3,600.00

      

      Commission @ 6% on BV of 18,000 i.e. 18000*6% = Rs 1,080.00

Now your net Profit is Rs 4,680.00

The above example is a simple one where in only 2 to 3 Customers have been assumed. In real life it is easier to get far more than 2 or 3 Customers thus increasing the scope of your Earnings.

Amway Business opportunity further provides you the second option where in you can further grow your business by encouraging other likeminded people to do the same i.e. selling Amway Products.

Over a period of time it is generally observed that your Customers, Acquaintances, Friends and Relatives may also like to start their own Amway Business. Amway grants you the rights to sponsor other people as your down-line in your Amway Business and grow your Amway Business. It is like having one shop or no of shops. By sponsoring and teaching new Amway Business owners to sell Amway products and keeping them motivated, you can further grow your because as per Amway Sales & Marketing plan the business volume is calculated for a distributor group which consists of you and people sponsored by you.

E.g.2:

Growth of Business by Building Sales Force:

Let’s now take another example of you having sponsored 4 people as Amway business Owners and each of you doing a Business of 300 PV i.e. purchasing Amway Products worth BV of 18,000 each.

PV Calculation:

Your PV: 300

Down-line PV: 1,200 (i.e. 300*4 People)

Total PV: 1,500

Total group BV: 18,000 (i.e. 18,000*5)

Total Sales Turnover of the group is 90,000 (i.e. 18,000*5)	1,500 PV
Total Performance Bonus earned by Group @ 9% of 90,000	Rs 8100.00
Performance Bonus Payable to your Down-line @ 6% of their BV of 18,000 each (i.e. 18,000*6%*4 People)	Rs 4320.00
Bonus Payable to you (8,100-4,320)	Rs 3780.00
Add Retail profit Margin on your own Purchase of Rs 18,000 @ 20%	Rs 3600.00
Your Total Earnings for the Month (3,780 + 3,600)	Rs 7,380.00

E.g.3:

Let’s assume X, an Amway Business Owner has sponsored 4 other persons as Amway BOs (A, B, C & D) and in-turn they have sponsored other persons as their down-line Amway BOs.

X Does a Personal Point Value (PPV) of 1,000 PV i.e. 60,000 Personal BV (PBV).

A’s Group Turnover be 2,000 PV i.e. 1,20,000 BV

B’s Group Turnover be 2,000 PV i.e. 1,20,000 BV

C’s Group Turnover be 1,000 PV i.e. 60,000 BV

D’s Group Turnover be 4,000 PV i.e. 2,40,000 BV

Now Group PV (GPV) is 10,000 and Group BV (GBV) is 6,00,000.

In the above example, X, An Amway BO reaches 21% slab which is the maximum commission paid by Amway on Purchase of Amway Products for the above mentioned sale of 6,00,000 BV.

Let’s Calculate the Earnings by each BOs.

Total Sales Turnover of X’s Group is 6,00,000 BV	10,000 PV
Commission level for the group @ 10,000 PV	21%
Total Group Commission (6,00,000 BV * 21%)	Rs 1,26,000.00
Commission earned by A’s Group (12% * 1,20,000)	Rs 14,400.00
Commission earned by B’s Group (12% * 1,20,000)	Rs 14,400.00
Commission earned by C’s Group (6% * 60,000)	Rs 5,400.00
Commission earned by D’s Group (15% * 2,40,000)	Rs 36,000.00
Net Commission earned by X i.e. you is (X-A-B-C-D)	Rs 55,800.00
Add Retail profit Margin on your own Purchase of Rs 60,000 @ 20%	Rs 12,000.00
Total Monthly Earning	Rs 67,800.00

So, we are ready to grow the Business…. Are You ???