2011 AMWAY GROWTH INCENTIVES Your Business. Your Achievement. Your Rewards.
TAKE YOUR BUSINESS TO THE NEXT LEVEL AWARDS SUMMARY Every IBO who embraces this Push to Platinum opportunity does so for different First-time Platinum: $2,500 and New Platinum Conference invitationreasons. You’re unique and so are Monthly: Platinum Plus and/or Platinum Eliteyour goals. And this business – your Annual: Q12 Award of $7,500 to $20,000 business – lets you grow as far and as fast as you choose. Soar to Sapphire First-time Sapphire (in-market): $5,000 and Achievers invitationAmway Growth Incentives and First-time Founders Sapphire (in-market): $7,500 and Achievers invitationspecial programs can add to an Monthly: Platinum Plus and/or Platinum Eliteexceptional compensation plan with Annual: Q12 Award of $7,500 to $20,000a variety of cash awards, business conferences, and other benefits to help you take your business to Elevate to Emeraldthe next level. Set your sights on a First-time Emerald (in-market): $15,000specific goal and go for it! First-time Founders Emerald (in-market): $20,000 Expansion (for in-market Founders Emerald): $25,000 or $50,000 orCONTENTS $75,000First-time Cash Awards 5 Monthly: Platinum Plus and/or Platinum Elite Annual: Q12 Award of $7,500 to $20,000Monthly Awards 5 Achievers invitation Annual Q12 Awards 6 Drive to DiamondQ12 Bonus Criteria and Options 6 Expansion (for in-market Diamonds with at least 3 qualified 12-month legs): $100,000 orVolume Equivalency Requirements 7 $125,000 orExpansion Awards 7 $200,000 or $250,000Business Conferences 8 Monthly: Platinum Plus and/or Platinum ElitePeter Island Qualifications 10 Annual: Q12 Award of $7,500 to $20,000 Achievers invitation Founders Achievement Awards 11 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
GROWTH INCENTIVES begin September 1 and end These standards require that:QUALIFICATION DETAILS August 31. Barring unforeseen • n IBO’s conduct must not a FIRST-TIME CASH AWARDS All awards and business conferences business conditions, this three-year negatively affect the reputation of Bonuses earned when you qualify at these levels for the first time and they are the highest pin levels for which program allows IBOs to develop Amway, its related businesses, or you’ve qualified.Amway Independent Business personal business goals to achieve IBOs affiliated with Amway and its Amway offers extra Growth Incentives for achieving key milestones in North America for the first time.Owners (IBOs) can be recognized key Growth Incentives. Fiscal year related entities;and compensated by Amway in a 2011 is the second year of the First-time Cash Awards are cumulative. If an IBO qualifies for more than one award in the same fiscal year, they qualify for • n IBO complies with the letter avariety of ways. current program. each award. Separate payments will be generated. and spirit of the Rules of Conduct, laws, and regulations in any market North American Platinum, Sapphire, and Emerald First-time Cash Awards will be paid the month after the qualification Amway IBO The Growth Incentives Program the IBO has a presence, and has been achieved and approved. Founders Awards will be paid after year end, following qualification approval. Compensation Plan also offers qualifications for select demonstrates cultural sensitivity The IBO Compensation Plan offers business conferences. Achieve Growth Incentive given market conditions; and monthly and annual bonuses that First-time Platinum* $2,500 Amway must verify and confirm that • n IBO does not defend or support aIBOs can earn in accordance with and all qualifiers have met award criteria. the conduct of others who do not their contract with Amway. New Platinum Conference invitation comply with this criteria. ________________________________________________________________________________________________________Amway Growth Incentives IBO eligibility for the 2011 Growth IBOs also may qualify for Growth Incentives Program is at the First-time Sapphire (in-market) $5,000 and Achievers invitationIncentives, a collection of discretion of Amway and is based First-time Founders Sapphire (in-market) $7,500 and Achievers invitationdiscretionary awards separate from on conduct that demonstrates high First-time Emerald (in-market) $15,000 and Achievers invitationthe IBO Compensation Plan. While ethical and business standards First-time Founders Emerald (in-market) $20,000 and Achievers invitationthese can vary from year to year, aligned with the goals and objectives ________________________________________________________________________________________________________ new Growth Incentives are designed of Amway and its related businesses. *New Platinums may overlap fiscal years as outlined in the Amway Business Reference Guide. IBOs who overlap the 2010–2011 fiscal for use from fiscal year 2010 to year will be paid the 2011 Qualification Award.fiscal year 2012. Fiscal years MONTHLY AWARDS Earn additional monthly bonuses as you grow beyond Platinum.DEFINITIONS customer’s address. Customer sales A New Leg is an in-market leg Achieve Growth Incentive from inventory must be reported qualified for the month at 25% that Platinum PlusBaseline Requirements using the Customer Sales Activity did not have a Platinum in it one Generate 10,000 to 12,499 PV in Personal For Annual Q12 and (CSA) Receipt tool at Amway.com. year ago. Group/Ruby Volume for one month 2% of PG/Ruby BVExpansion Awards Customer orders shipped to an IBO’s or • enerate 150 Personal PV G A Second-year leg is an in-market address are not eligible. Platinum Elite each month (1,800 Annual) that leg qualified for the month at 25% Generate 12,500 PV or more in Personal includes 50 QCPV (600 Annual) Award Volume includes your that did not have a Platinum in it two Group/Ruby Volume for one month 4% of PG/Ruby BV from qualified sales to registered Personal PV plus the PV of IBOs in years ago. customers each month. non-qualified (non-25%) legs. This • omplete at least six C includes Pass-up PV from downline A Q is a qualified in-market 25% training credits. non-qualified Platinums. month in your frontline (legs). Expansion Awards and Q12 Qualified Customer PV (QCPV) Personal Group (PG/Ruby) Platinum Plus for Emerald Pins includes volume from registered Volume includes your Personal The average monthly Gross Income for “active” IBOs was $115 (U.S.)/$181 (Canada). require Qs for qualification. customer orders placed through Volume and Pass-up Volume (non- See pages 6 and 7 for details. Amway.com (including Partner Store 25%) from non-Platinum legs. It does Approximately 66% of all IBOs of record were found to be “active” based on an independent survey in 2001. orders), Personal Retail Websites, not include any Platinum PV whether 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%; DITTO® program, and Customer qualified or not. Diamond 0.0124%.Support, and shipped to the 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
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 VOLUME EQUIVALENCY REQUIREMENTS qualifying months during the fiscal year. As a qualifier, you will receive one annual Q12 Award, whichever is highest. 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).Achieve Growth Incentive Q12 Bonus Volume CriteriaQ12 Award $7,500 Award 10–11 Q12 Award months plus 108,000 Award PVGenerate 12 Q12 months with 7,500 Award PV or $15,000 PG (Ruby) 10–11 Q12 PG/Ruby months plus 108,000 PG/Ruby PVby meeting the requirements on the chart below. $7,500 and Achievers invitation $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.Q12 PG/Ruby You can track your Q12 month progress on Amway.com > Business Center > View Business Reports > GI Program TrackingGenerate 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________________________________________________________________________________________________________ EXPANSION AWARDS Bonuses designed to reward you for becoming a leader and helping others to succeed.Q12 Platinum Plus You may qualify for an Expansion Award when you achieve baseline requirements and generate the volume shown below.For IBOs below EmeraldGenerate 12 Q12 months with 10,000 PV in PG/Ruby As a qualifier, you will receive one annual Expansion Award, whichever is higher.Volume or by meeting the requirements on the FOUNDERS EMERALD EXPANSION AWARDS chart below. $20,000 and Achievers invitation 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: Q12 Platinum Plus • With 36 Qs and 4,000 monthly PV PG/Ruby Volume (48,000 annual) $25,000 orFor IBOs who previously achieved Emerald • With 36 Qs and 6,000 monthly PV PG/Ruby Volume (72,000 annual) $50,000 or and Achievers Generate 12 Q12 months with 10,000 PV in PG/Ruby • With 36 Qs and 7,500 monthly PV PG/Ruby Volume (90,000 annual) $75,000 or invitationVolume or by meeting the requirements on the chart below, • With 36 Qs and 2,500 monthly PV PG/Ruby Volume (30,000 annual) plus at least six new Qs† $75,000and add at least six Qs†. $20,000 and Achievers invitation DIAMOND EXPANSION AWARDS Must exceed 2010 Q baseline.† 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. } For Diamond Bonus Recipients:Q12 BONUS CRITERIA AND OPTIONS • With 54 Qs and 4,000 monthly PV PG/Ruby Volume(48,000 annual) $100,000 orTo 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 • With 60 Qs and 4,000 monthly PV PG/Ruby Volume (48,000 annual) $125,000 or and Achievers new downline qualifiers, there are additional ways to earn a Q12 GI month. • With 72* Qs and 2,500 monthly PV PG/Ruby Volume (30,000 annual) $200,000 or invitationMONTHLY REQUIREMENTS FOR Q12 • With 72* Qs and 2,500 monthly PV PG/Ruby Volume (30,000 annual) plus at least six new Qs† $250,000Q12 Bonus Required Volume Type Full Volume or 1 New Leg* or 2 New Legs or 1 Second-year Leg or 2 Second-year Legs *Diamond Bonus Recipients who achieve eight North American FAA credits and 2,500 monthly PG/Ruby Volume (30,000 annual) can qualify $7,500 Award 7,500 PV 4,000 PV 2,500 PV 5,000 PV 2,500 PV 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.$15,000 PG/Ruby 7,500 PV 4,000 PV 2,500 PV 5,000 PV 2,500 PV † Must exceed 2010 Q baseline.$20,000 Platinum Plus (below Pin Emerald) 10,000 PV 6,000 PV 4,000 PV 10,000 PV 10,000 PV$20,000 Platinum Plus† (Pin Emerald) 10,000 PV† 10,000 PV† 10,000 PV† 10,000 PV† 10,000 PV† *Can be averaged The average monthly Gross Income for “active” IBOs was $115 (U.S.)/$181 (Canada). † Must grow six Qs and exceed 2010 Q baseline. 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
BUSINESS CONFERENCES Diamond Club For many IBOs, qualifying for invitation-only business conferences is Qualified Diamonds and above embark on a six-day sojourn with deluxean added incentive to achieve. Held in fabulous locations, these events accommodations. Attendees participate in strategic meetings, new productgive achieving IBOs a chance to talk strategy, try new products, and assessments, networking opportunities, and a wonderful celebrationcelebrate accomplishments. of outstanding achievement. But that’s not all! Attendees are surprised and delighted from the moment they arrive with special treats, celebrityBusiness conference invitations are awarded at several qualification levels. 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! Peter Island New Platinum Conference Beautiful white sand beaches and trade wind breezes – theNewly qualified Platinums, the newest leaders in the business, are invited islands are calling you! Peter Island’s exclusive resort boaststo a three-day business seminar that provides inspiration, motivation, and first-rate food and service. How can we make your dreams comeinformation to grow as a leader. New Platinums take part in world-class to life? A private yacht for a day or overnight cruise with your owntraining to build sales and sponsoring skills and are given the opportunity captain and staff, shopping in St. Thomas with a stay at the Theto connect with executives from Amway and the Independent Business Ritz-Carlton® Hotel, a private hideaway on St. John, scuba diving,Owners Association International. 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 Incentiverecipients, and/or qualified Sapphires and above who receive an invitationto attend. Achievers is the biggest business conference of the year for North North American Growth Council America! Eligible IBOs are treated to inspiring business meetings, excellent The premier recognition event and strategic planning conference of thesales and product training, a recognition gala, great entertainment, and year for top North American achievers where only the finest first-classleisure time activities. 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
PETER ISLAND QUALIFICATIONS FOUNDERS ACHIEVEMENT AWARDS (FAA) Qualified Diamonds and above can qualify for one or more Peter Island invitations upon achieving the baseline and Discretionary cash awards are presented to IBOs who meet baseline requirements, demonstrate extraordinary business qualification requirements. 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 For one invitation, you must be a: to receive a special One-time Cash Award instead of an Annual Cash Award. • 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. Founders Achievement Awards $4,480,000 $4,800,000*This invitation is in addition to trips earned based on credits. FAA Credit Calculation $ 4,500,000 $3,920,000 $4,220,000For two invitations, you must be a requalified DBR with 18 Peter Island credits. Domestic Leg Credits $ 4,000,000 $3,360,000 $3,600,000Diamonds who qualified in FY2006 or later have a grace period and are not required to be a DBR for their first two trips. 12-month leg 1.0DBR requirements begin when the third trip is earned. Emerald Bonus leg 1.5 $ 3,500,000 $2,800,000 $3,000,000 Diamond Bonus leg 3.0First-time Diamonds with at least 3.0 PI credits or Requalifying Diamonds who are DBRs and achieve their goal earn one $ 3,000,000trip. An additional trip can be earned for being DBR with 18 PI credits or earning a New Crown Ambassador pin. $2,240,000 $2,400,000 International Leg Credits $ 2,500,000Year-to-year Goals #2 12-month leg 1.0 $1,680,000 $1,800,000Minimum goal after earning your first trip is 4.5 credits. #2 Emerald Bonus leg 1.5 $ 2,000,000 #2 Diamond Bonus leg 3.0–6.0 $1,232,000 $1,320,000 $1,120,000 $1,200,000If you achieve or exceed your FY2010 goal, your FY2011 goal will be .5 credit higher than the FY2010 goal. If you did not $1,120,000 $1,200,000 Other 12-month leg 0.5 $1,008,000 $1,080,000achieve your FY2010 goal, your goal for FY2011 will not change. $ 1,500,000 $896,000 $960,000 $784,000 $840,000 $672,000 $720,000Credits $560,000 $600,000 $ 1,000,000 $448,000 $480,000Peter Island credits are earned on qualified in-market legs: $336,000 $360,000 $224,000 $240,000 $168,000 $180,000 $112,000 $120,000 • 0.5 credit for a 6- to 11-month qualified leg. $ 500,000 $56,000 $60,000 $28,000 $30,000 • 1.0 credit for a 12-month qualified leg. Credits 8 12 16 20 25 30 35 40 45 50 55 60 65 70 40 45 50 55 60 65 70 • 1.5 credits for an Emerald Bonus leg. • 3.0 credits for a Diamond Bonus leg. FAA Annual Cash Awards FAA One-time Cash AwardsYou can track your progress on Amway.com > Business Center > View Business Reports > GI Program Tracking. Award amount U.S. dollars Award amount Canadian dollars Award amount U.S. dollars Award amount Canadian dollarsNORTH AMERICAN GROWTH COUNCIL QUALIFICATIONSNorth 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