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Slide 1: 2011 AMWAY GROWTH INCENTIVES Your Business. Your Achievement. Your Rewards.
Slide 2: TAKE YOUR BUSINESS TO THE NEXT LEVEL Every IBO who embraces this opportunity does so for different reasons. You’re unique and so are your goals. And this business – your business – lets you grow as far and as fast as you choose. Amway Growth Incentives and special programs can add to an exceptional compensation plan with a variety of cash awards, business conferences, and other benefits to help you take your business to the next level. Set your sights on a specific goal and go for it! AWARDS SUMMARY Push to Platinum First-time Platinum: Monthly: Annual: $2,500 and New Platinum Conference invitation Platinum Plus and/or Platinum Elite Q12 Award of $7,500 to $20,000 Soar to Sapphire First-time Sapphire (in-market): First-time Founders Sapphire (in-market): Monthly: Annual: $5,000 and Achievers invitation $7,500 and Achievers invitation Platinum Plus and/or Platinum Elite Q12 Award of $7,500 to $20,000 Elevate to Emerald First-time Emerald (in-market): First-time Founders Emerald (in-market): Expansion (for in-market Founders Emerald): Monthly: Annual: $15,000 $20,000 $25,000 or $50,000 or $75,000 Platinum Plus and/or Platinum Elite Q12 Award of $7,500 to $20,000 Achievers invitation CONTENTS First-time Cash Awards Monthly Awards Annual Q12 Awards Q12 Bonus Criteria and Options 5 5 6 6 Drive to Diamond Volume Equivalency Requirements 7 Expansion Awards Business Conferences Peter Island Qualifications Founders Achievement Awards 7 8 10 11 Expansion (for in-market Diamonds with at least 3 qualified 12-month legs): Monthly: Annual: $100,000 or $125,000 or $200,000 or $250,000 Platinum Plus and/or Platinum Elite Q12 Award of $7,500 to $20,000 Achievers invitation Diamond Club invitation Growth Incentives are awarded based on North America qualifying legs and volume only. The average monthly Gross Income for “active” IBOs was $115 (U.S.)/$181 (Canada). Approximately 66% of all IBOs of record were found to be “active” based on an independent survey in 2001. “Active” means an IBO attempted to make a retail sale, or presented the Amway Independent Business Owner Compensation Plan, or received bonus money, or attended a company or IBO meeting in the year 2000. “Gross Income” means the amount received from retail sales, minus the cost of goods sold, plus the amount of Performance Bonus retained. There may be significant business expenses, mostly discretionary, that may be greater in relation to income in the first years of operation. Following are approximate percentages of Direct Fulfillment IBOs of record in North America who achieved the illustrated levels of success in the performance year ended August 31, 2009: Q12 0.3764%; Platinum 0.2575%; Ruby 0.0059%; Founders Platinum 0.6063%; Founders Ruby 0.0038%; Sapphire 0.0277%; Founders Sapphire 0.0424%; Emerald 0.0206%; Founders Emerald 0.0739%; Diamond 0.0214%; Founders Diamond 0.0112%; Executive Diamond and Above 0.0106%. IBOs who earned a Platinum Plus Bonus in at least one bonus period in FY2009: 0.3217%. IBOs who earned a Platinum Elite Bonus in at least one bonus period in FY2009: 0.1395%. IBOs who earned FAA in FY2009: 0.0121%. IBOs who achieved Q12 in FY2009: 0.3764%. IBOs who earned eight or more in-market FAA credits in FY2009: 0.0100%. The Amway Independent Business Owner Compensation Plan (IBO Compensation Plan) offers monthly and annual bonuses that IBOs can earn in accordance with their contract with Amway. IBOs also may qualify for the AMWAY™ Growth Incentives Program (GI Program), a collection of discretionary programs separate from the IBO Compensation Plan and that can vary from year to year. IBO eligibility for the GI Program is at Amway’s discretion. The GI Program is available only to IBOs in “good standing” and those whose conduct demonstrates high ethical and business standards aligned with the goals and objectives of Amway and its related businesses. For more details on qualifying for the GI Program and the requirements for good standing, see information on Amway.com or contact Amway Sales. 2 3
Slide 3: GROWTH INCENTIVES QUALIFICATION DETAILS All awards and business conferences Amway Independent Business Owners (IBOs) can be recognized and compensated by Amway in a variety of ways. Amway IBO Compensation Plan The IBO Compensation Plan offers monthly and annual bonuses that IBOs can earn in accordance with their contract with Amway. Amway Growth Incentives IBOs also may qualify for Growth Incentives, a collection of discretionary awards separate from the IBO Compensation Plan. While these can vary from year to year, new Growth Incentives are designed for use from fiscal year 2010 to fiscal year 2012. Fiscal years begin September 1 and end August 31. Barring unforeseen business conditions, this three-year program allows IBOs to develop personal business goals to achieve key Growth Incentives. Fiscal year 2011 is the second year of the current program. The Growth Incentives Program also offers qualifications for select business conferences. Amway must verify and confirm that all qualifiers have met award criteria. IBO eligibility for the 2011 Growth Incentives Program is at the discretion of Amway and is based on conduct that demonstrates high ethical and business standards aligned with the goals and objectives of Amway and its related businesses. These standards require that: • n IBO’s conduct must not a negatively affect the reputation of Amway, its related businesses, or IBOs affiliated with Amway and its related entities; • n IBO complies with the letter a and spirit of the Rules of Conduct, laws, and regulations in any market the IBO has a presence, and demonstrates cultural sensitivity given market conditions; and • n IBO does not defend or support a the conduct of others who do not comply with this criteria. FIRST-TIME CASH AWARDS Bonuses earned when you qualify at these levels for the first time and they are the highest pin levels for which you’ve qualified. Amway offers extra Growth Incentives for achieving key milestones in North America for the first time. First-time Cash Awards are cumulative. If an IBO qualifies for more than one award in the same fiscal year, they qualify for each award. Separate payments will be generated. North American Platinum, Sapphire, and Emerald First-time Cash Awards will be paid the month after the qualification has been achieved and approved. Founders Awards will be paid after year end, following qualification approval. Achieve Growth Incentive First-time Platinum* $2,500 and New Platinum Conference invitation ________________________________________________________________________________________________________ First-time Sapphire (in-market) $5,000 and Achievers invitation First-time Founders Sapphire (in-market) $7,500 and Achievers invitation First-time Emerald (in-market) $15,000 and Achievers invitation First-time Founders Emerald (in-market) $20,000 and Achievers invitation ________________________________________________________________________________________________________ *New Platinums may overlap fiscal years as outlined in the Amway Business Reference Guide. IBOs who overlap the 2010–2011 fiscal year will be paid the 2011 Qualification Award. MONTHLY AWARDS Earn additional monthly bonuses as you grow beyond Platinum. DEFINITIONS Baseline Requirements For Annual Q12 and Expansion Awards • enerate 150 Personal PV G each month (1,800 Annual) that includes 50 QCPV (600 Annual) from qualified sales to registered customers each month. • omplete at least six C training credits. Qualified Customer PV (QCPV) includes volume from registered customer orders placed through Amway.com (including Partner Store orders), Personal Retail Websites, DITTO® program, and Customer Support, and shipped to the customer’s address. Customer sales from inventory must be reported using the Customer Sales Activity (CSA) Receipt tool at Amway.com. Customer orders shipped to an IBO’s address are not eligible. Award Volume includes your Personal PV plus the PV of IBOs in non-qualified (non-25%) legs. This includes Pass-up PV from downline non-qualified Platinums. Personal Group (PG/Ruby) Volume includes your Personal Volume and Pass-up Volume (non25%) from non-Platinum legs. It does not include any Platinum PV whether qualified or not. A New Leg is an in-market leg qualified for the month at 25% that did not have a Platinum in it one year ago. A Second-year leg is an in-market leg qualified for the month at 25% that did not have a Platinum in it two years ago. A Q is a qualified in-market 25% month in your frontline (legs). Expansion Awards and Q12 Platinum Plus for Emerald Pins require Qs for qualification. See pages 6 and 7 for details. Achieve Platinum Plus Generate 10,000 to 12,499 PV in Personal Group/Ruby Volume for one month or Platinum Elite Generate 12,500 PV or more in Personal Group/Ruby Volume for one month Growth Incentive 2% of PG/Ruby BV 4% of PG/Ruby BV The average monthly Gross Income for “active” IBOs was $115 (U.S.)/$181 (Canada). Approximately 66% of all IBOs of record were found to be “active” based on an independent survey in 2001. ollowing are approximate percentages of Direct Fulfillment IBOs of record in North America who achieved the illustrated levels of success in the performance year ended F August 31, 2009: Q12 0.3764%; Platinum 0.2575%; Ruby 0.0059%; Sapphire 0.0277%; Founders Sapphire 0.0424%; Emerald 0.0206%; Founders Emerald 0.0206%; Diamond 0.0124%. IBOs who earned a Platinum Plus Bonus in at least one bonus period in FY2009: 0.3217%. IBOs who earned a Platinum Elite Bonus in at least one bonus period in FY2009: 0.1395%. 4 5
Slide 4: ANNUAL Q12 AWARDS You may qualify for an award of $7,500, $15,000, or $20,000 when you meet baseline requirements and generate 12 qualifying months during the fiscal year. As a qualifier, you will receive one annual Q12 Award, whichever is highest. VOLUME EQUIVALENCY REQUIREMENTS Should you miss one or two Q12 months, you may still qualify with Volume Equivalency. This requires 10 or 11 Q12 months plus the required volume (see chart below). Q12 Bonus Volume Criteria $7,500 Award 10–11 Q12 Award months plus 108,000 Award PV $15,000 PG (Ruby) 10–11 Q12 PG/Ruby months plus 108,000 PG/Ruby PV $20,000 Platinum Plus (below Pin Emerald) 10–11 Q12 Platinum Plus months plus 144,000 PG/Ruby PV $20,000 Platinum Plus (Pin Emerald) 10–11 Q12 Platinum Plus months plus 144,000 PG/Ruby PV plus at least six new Qs† † Must exceed 2010 Q baseline. You can track your Q12 month progress on Amway.com > Business Center > View Business Reports > GI Program Tracking Achieve Growth Incentive Q12 Award Generate 12 Q12 months with 7,500 Award PV or by meeting the requirements on the chart below. $7,500 and Achievers invitation ________________________________________________________________________________________________________ Q12 PG/Ruby Generate 12 Q12 months with 7,500 PV in PG/Ruby Volume or by meeting the requirements on the chart below. $15,000 and Achievers invitation ________________________________________________________________________________________________________ Q12 Platinum Plus For IBOs below Emerald Generate 12 Q12 months with 10,000 PV in PG/Ruby Volume or by meeting the requirements on the chart below. $20,000 and Achievers invitation ________________________________________________________________________________________________________ Q12 Platinum Plus For IBOs who previously achieved Emerald Generate 12 Q12 months with 10,000 PV in PG/Ruby Volume or by meeting the requirements on the chart below, and add at least six Qs†. † EXPANSION AWARDS Bonuses designed to reward you for becoming a leader and helping others to succeed. You may qualify for an Expansion Award when you achieve baseline requirements and generate the volume shown below. As a qualifier, you will receive one annual Expansion Award, whichever is higher. FOUNDERS EMERALD EXPANSION AWARDS Qualified in-market Founders Emeralds with at least 3 qualified in-market 12-month legs can earn one of the following awards. For Emerald Bonus Recipients: • With 36 Qs and 4,000 monthly PV PG/Ruby Volume (48,000 annual) • With 36 Qs and 6,000 monthly PV PG/Ruby Volume (72,000 annual) • With 36 Qs and 7,500 monthly PV PG/Ruby Volume (90,000 annual) • With 36 Qs and 2,500 monthly PV PG/Ruby Volume (30,000 annual) plus at least six new Qs† $25,000 or $50,000 or $75,000 or $75,000 $20,000 and Achievers invitation } } and Achievers invitation Must exceed 2010 Q baseline. DIAMOND EXPANSION AWARDS Qualified in-market Diamond Bonus Recipients who have a minimum of 3 qualified in-market 12-month legs can earn one of the following awards. Q12 BONUS CRITERIA AND OPTIONS To receive a Q12 Bonus requires that you produce at least 7,500 PV in either Award Volume or PG/Ruby Volume. As an IBO develops new downline qualifiers, there are additional ways to earn a Q12 GI month. For Diamond Bonus Recipients: • With 54 Qs and 4,000 monthly PV PG/Ruby Volume(48,000 annual) • With 60 Qs and 4,000 monthly PV PG/Ruby Volume (48,000 annual) • With 72* Qs and 2,500 monthly PV PG/Ruby Volume (30,000 annual) • With 72* Qs and 2,500 monthly PV PG/Ruby Volume (30,000 annual) plus at least six new Qs† $100,000 or $125,000 or $200,000 or $250,000 and Achievers invitation MONTHLY REQUIREMENTS FOR Q12 Q12 Bonus $7,500 $15,000 $20,000 $20,000 Required Volume Type Award PG/Ruby Platinum Plus (below Pin Emerald) Platinum Plus† (Pin Emerald) Full Volume or 7,500 PV 7,500 PV 10,000 PV 10,000 PV† 1 New Leg* or 4,000 PV 4,000 PV 6,000 PV 10,000 PV† *Can be averaged 2 New Legs or 2,500 PV 2,500 PV 4,000 PV 10,000 PV† 1 Second-year Leg or 2 Second-year Legs 5,000 PV 2,500 PV 5,000 PV 2,500 PV 10,000 PV 10,000 PV† 10,000 PV 10,000 PV† *Diamond Bonus Recipients who achieve eight North American FAA credits and 2,500 monthly PG/Ruby Volume (30,000 annual) can qualify in lieu of 72 Qs and 2,500 PG/Ruby Volume. At least six new Qs are still required to receive the $250,000 Expansion Award. † Must exceed 2010 Q baseline. † Must grow six Qs and exceed 2010 Q baseline. The average monthly Gross Income for “active” IBOs was $115 (U.S.)/$181 (Canada). Approximately 66% of all IBOs of record were found to be “active” based on an independent survey in 2001. ollowing are approximate percentages of Direct Fulfillment IBOs of record in North America who achieved the illustrated levels of success in the performance year ended F August 31, 2009: Q12 0.3764%; Platinum 0.2575%; Ruby 0.0059%; Sapphire 0.0277%; Founders Sapphire 0.0424%; Emerald 0.0206%; Founders Emerald 0.0739%; Diamond 0.0124%. IBOs who earned a Platinum Plus Bonus in at least one bonus period in FY2009: 0.3217%. IBOs who earned a Platinum Elite Bonus in at least one bonus period in FY2009: 0.1395%. 6 7
Slide 5: BUSINESS CONFERENCES For many IBOs, qualifying for invitation-only business conferences is an added incentive to achieve. Held in fabulous locations, these events give achieving IBOs a chance to talk strategy, try new products, and celebrate accomplishments. Business conference invitations are awarded at several qualification levels. Diamond Club Qualified Diamonds and above embark on a six-day sojourn with deluxe accommodations. Attendees participate in strategic meetings, new product assessments, networking opportunities, and a wonderful celebration of outstanding achievement. But that’s not all! Attendees are surprised and delighted from the moment they arrive with special treats, celebrity appearances, marvelous parties, once-in-a-lifetime activities, amazing spa treatments, and more – all for their pleasure and relaxation. Executive Diamond Club Qualified Executive Diamonds and above always travel first class to Amway events. For this conference, they join in the Diamond Club experience with a couple of extra-special days added on to meet with Amway executives – connect, collaborate, and strategize together – and also enjoy the ultimate in leisure time activities. No matter what you do at Executive Diamond Club, you can be sure it will be extraordinary! New Platinum Conference Newly qualified Platinums, the newest leaders in the business, are invited to a three-day business seminar that provides inspiration, motivation, and information to grow as a leader. New Platinums take part in world-class training to build sales and sponsoring skills and are given the opportunity to connect with executives from Amway and the Independent Business Owners Association International. Peter Island Beautiful white sand beaches and trade wind breezes – the islands are calling you! Peter Island’s exclusive resort boasts first-rate food and service. How can we make your dreams come to life? A private yacht for a day or overnight cruise with your own captain and staff, shopping in St. Thomas with a stay at the The Ritz-Carlton® Hotel, a private hideaway on St. John, scuba diving, snorkeling, and sailing, the possibilities are endless ... paradise awaits you! Achievers Invitational In a word, this annual event can only be described as spectacular. And it should be for the deserving IBOs who are Q12 Growth Incentive recipients, and/or qualified Sapphires and above who receive an invitation to attend. Achievers is the biggest business conference of the year for North America! Eligible IBOs are treated to inspiring business meetings, excellent sales and product training, a recognition gala, great entertainment, and leisure time activities. North American Growth Council The premier recognition event and strategic planning conference of the year for top North American achievers where only the finest first-class luxury treatment will do. Get to this level and it’s no longer called success, it’s called elite success – and the reward trip is just as stupendous as the achievement. This incredible journey is sure to inspire even more business success in days ahead. See page 10 for qualification requirements. Global Founders Council This is the highest global level of achievement recognized in the AMWAY™ business. With 20 FAA points and/or as a currently qualified Crown Ambassador, travel with the world’s most elite group of Amway leaders for an extravagant excursion – one you will savor forever! Whether it be Monte Carlo, a major competitive sporting event held in Beijing, or New York City. Go behind-the-scenes and above-the-clouds – this is a high-class experience, designed to abundantly reward Amway’s highest achievers. 8 9
Slide 6: PETER ISLAND QUALIFICATIONS Qualified Diamonds and above can qualify for one or more Peter Island invitations upon achieving the baseline and qualification requirements. For one invitation, you must be a: • New Diamond with at least three Peter Island (PI) credits, or a • Requalified Diamond Bonus Recipient (DBR) who achieves Peter Island goal, or a • Requalified DBR who achieves 12 Peter Island credits, or a • New Crown Ambassador* who is a DBR. *This invitation is in addition to trips earned based on credits. For two invitations, you must be a requalified DBR with 18 Peter Island credits. Diamonds who qualified in FY2006 or later have a grace period and are not required to be a DBR for their first two trips. DBR requirements begin when the third trip is earned. First-time Diamonds with at least 3.0 PI credits or Requalifying Diamonds who are DBRs and achieve their goal earn one trip. An additional trip can be earned for being DBR with 18 PI credits or earning a New Crown Ambassador pin. Year-to-year Goals Minimum goal after earning your first trip is 4.5 credits. If you achieve or exceed your FY2010 goal, your FY2011 goal will be .5 credit higher than the FY2010 goal. If you did not achieve your FY2010 goal, your goal for FY2011 will not change. Credits Peter Island credits are earned on qualified in-market legs: • 0.5 credit for a 6- to 11-month qualified leg. • 1.0 credit for a 12-month qualified leg. • 1.5 credits for an Emerald Bonus leg. • 3.0 credits for a Diamond Bonus leg. You can track your progress on Amway.com > Business Center > View Business Reports > GI Program Tracking. FOUNDERS ACHIEVEMENT AWARDS (FAA) Discretionary cash awards are presented to IBOs who meet baseline requirements, demonstrate extraordinary business development, and exhibit high ethical and business standards. To qualify, you must be a Diamond Bonus Recipient with a minimum of eight FAA credits. The first time you accumulate 40 FAA credits or more (in increments of five), you’re eligible to receive a special One-time Cash Award instead of an Annual Cash Award. $2,800,000 $3,000,000 Domestic Leg 12-month leg Emerald Bonus leg Diamond Bonus leg Credits 1.0 1.5 3.0 $2,240,000 $2,400,000 $3,920,000 $4,220,000 FAA Credit Calculation $4,480,000 $4,800,000 70 Founders Achievement Awards $ 4,500,000 $3,360,000 $3,600,000 $ 4,000,000 $ 3,500,000 $ 3,000,000 International Leg #2 12-month leg #2 Emerald Bonus leg #2 Diamond Bonus leg Other 12-month leg Credits 1.0 1.5 3.0–6.0 0.5 $560,000 $600,000 $672,000 $720,000 $784,000 $840,000 $896,000 $960,000 $1,680,000 $1,800,000 $ 2,500,000 $1,232,000 $1,320,000 $ 2,000,000 $1,008,000 $1,080,000 $1,120,000 $1,200,000 $1,120,000 $1,200,000 $ 1,500,000 $112,000 $120,000 $168,000 $180,000 $224,000 $240,000 $336,000 $360,000 $448,000 $480,000 $ 1,000,000 Credits $28,000 $30,000 8 $56,000 $60,000 $ 500,000 40 45 50 55 60 65 70 40 45 50 55 60 65 12 16 20 25 30 35 FAA Annual Cash Awards Award amount U.S. dollars Award amount Canadian dollars FAA One-time Cash Awards Award amount U.S. dollars Award amount Canadian dollars NORTH AMERICAN GROWTH COUNCIL QUALIFICATIONS North American Growth Council invitations are extended to IBOs who achieve DBR with at least 3 in-market Q12 legs and: • 84 in-market Qs, • 10 in-market FAA credits, OR • 72 in-market Qs plus at least six new Qs† in the year of qualification. † Must exceed 2010 baseline. The average monthly Gross Income earned by “active” IBOs was $115 (U.S.)/$181 (Canada). Approximately 66% of all IBOs of record were found to be “active” based on an independent survey in 2001. ollowing are approximate percentages of Direct Fulfillment IBOs of record in North America who achieved the illustrated levels of success in the performance year ended August F 31, 2009: Q12 0.3764%; Platinum 0.2575%; Ruby 0.0059%; Sapphire 0.0277%; Founders Sapphire 0.0424%; Emerald 0.0206%; Founders Emerald 0.0206%; Diamond 0.0124%. IBOs who earned a Platinum Plus Bonus in at least one bonus period in FY2009: 0.3217%. IBOs who earned a Platinum Elite Bonus in at least one bonus period in FY2009: 0.1395%. 10 11
Slide 7: “You can’t predict the future, but you can follow your dreams.” Jay Van Andel © 2010 All rights reserved. Printed in the USA. L3998ENE 40-1454