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 (&quot;sponsor&quot;). 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.
120324 Amway Business Opportunity Presentation
Sales and Distribution
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
Around 140 products in five categories: Home Care, Personal Care, Nutrition & Wellness Attitude & Artistry, Agricare – APSA80 Insurance thur AMSURE – Max New York Life.
It is Rs.2200 Crores for theyear ended 31/12/2011 !!
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)
Raw MaterialsAmway Manufacturing and Distribution ABO’s End Consumers
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.
Amway ABO 1 END CONSUMER SPONSOR ABO 2 SPONSOR ENDEvery ABO & Sponsor has to CONSUMER ABO 3 register with Amway
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%
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.
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
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
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
Amway Lead Organization. Head Office in USA Regional Affiliate Organizations e.g. Amway (India)100% Money-back Guarantee IBO’s End Consumers
Payment Mode - Account payee cheques drawn in favor of Primary Applicant/Entity only
You don’t need to lead anyone personally toGod.You just have to sign up 10 people into theAmway Business Opportunity and changetheir Lives.Make each one of the above 10 sign up 10people into the Opportunity and help change THAN K YOUtheir Lives…Continuation of the above Cycle helpsthousands and millions of People around theWorld to Financial Independence.Their Blessings will automatically give youthe path to Salvation / Moksha..