Understanding the Plan
The foundation of our business
Your Amway income* is made up of your retail margin set by yourself when selling products to customers plus any bonuses you’ve earned. Let’s look at how to calculate it for yourself.
*Only Amway Business Owners who have sufficient registration of business activity with the local state and tax authorities are eligible to receive any income deriving from selling.
We provide retail prices for every product, which are 10% higher for your registered customers than your Amway Business Owner price. The difference between the ABO price and retail price is the first part of your income: your retail margin.
Amway Business Owner price - ABOs pay a special ABO price for every product.
PV determines your qualification level
PV stands for Point Value. Nearly all products have a PV. The total PV of all product orders placed by you and the business group together for the month determines your bonus level. This table shows you the PV amount you need to earn per month in order to qualify for the different Performance Bonus percentages. Point values of individual products can be found online.
BV is used to calculate your Performance Bonus
BV stands for Business Volume. Nearly all products have a BV value, which determines the size of the bonus you will receive at a certain bonus percentage level.
Performance Bonus %
Your Income example
When you calculate your bonus all you need to know is the total PV and BV of all your orders for a full month – that’s your sales volume. If you have sponsored a business group, you also need to know the volume of this group to calculate your overall bonus. You will discover there is a ratio between PV and BV. The total of all PVs determines your bonus percent level and the total BV determines the amount of bonus you can receive. If you have ABOs who are also eligible for a bonus it will be deducted from your gross Performance Bonus; they will not lose any of their achieved bonuses.
Let’s say your sales volume is 2,400 PV. Look back to the table to find your bonus percentage.
Your Performance bonus is 12%! Great job! Now we have all the information we need to see how much you’ll earn this month!
The example that follows is based on a PV / BV (PV / €) ratio2 of 2 and a suggested retail margin of 30%.
1Only those ABOs, who have sufficient registration of business activity with the local state and/or tax authorities, are eligible to receive bonuses and cash incentives as well as income deriving from retailing and can participate in business seminars such as NPS, LTS and DC. The same rules apply towards calculation of Member Plus discounts.
You have earned a 12% bonus by selling products to customers and you have already sponsored 3 downlines (each with customers of their own) who are earning a 3%, 6% and 9% bonus.
Suggested Retail Margin4
30% x 400 BV = €120
Your Personal Performance Bonus
Your Group PV is 2,400 PV/4,800 BV (200 personal PV/400 BV, plus 300 PV/600 BV from sponsored ABO A, 700 PV/1,400 BV from ABO B and 1,200 PV/2,400 BV from ABO C)
400 Personal BV
X 12% Performance bonus
³This calculation is for estimation only, may vary depending on actual circumstances and can contain out-of-date information. Information is for illustration only and neither constitutes a promise, guarantee nor other bonus payment obligation by Amway. Income calculation results are gross and do not consider expenses and taxes related to the Amway business.
4This calculation with suggested 30% retail margin is based on ABO price.
The Differential Bonus is the Performance bonus percentage difference between you and your direct downline ABOs. How to calculate it: your percentage bracket minus the downline ABOs percentage bracket is the differential percentage. If you take the downlines’ group BV x differential percentage, you can calculate your differential bonus.
Your Differential Bonus from A = €54
(9% x 600 BV = €54)
Your Differential Bonus from B = €84
(6% x 1,400 BV = €84)
Your Differential Bonus from C = €72
(3% x 2,400 BV = €72)
Your Monthly Income
Retail Margin + Your Personal Performance Bonus + Your Differential Bonus €120 + €48 + €210 = €378
Your Yearly Income
€378 x 12 = €4,536