Understanding the Plan
The foundation of our business
Your Amway income is made up of your retail margin from every Amway product that a registered customer purchases plus any bonuses you’ve earned. Let’s look at how to calculate it for yourself.
We have a retail price for each product that is 20% higher for your registered customers than the price for an Amway Business Owner. The difference between ABO price and retail price is the first part of your earnings: your base discount.
Price for an Amway Business Owner - ABOs pay each product at a special price for ABOs.
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 2,22348 and a suggested retail margin of 20 %.
Assumes ABO performs consistently and meets requirements each month. PV/BV ratio of 2,22348 is used as an example only. For the currently valid PV/BV ratio please check Amway webpage or contact Customer Service.
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 Margin3
20% x 222 BV = €44
Your Personal Performance Bonus
Your Group PV is 2,400 PV/5,336 BV (200 personal PV/445 BV, plus 300 PV/667 BV from sponsored ABO A, 700 PV/1,556 BV from ABO B and 1,200 PV/2,668 BV from ABO C)
222 Personal BV
X 12% Performance bonus
²This 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.
3This calculation with suggested 10% 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 = €60
(9% x 667 BV = €60)
Your Differential Bonus from B = €93
(6% x 1,556 BV = €93)
Your Differential Bonus from C = €80
(3% x 2,668 BV = €80)
Your Monthly Income
Retail Margin + Your Personal Performance Bonus + Your Differential Bonus €44 + €53 + €233 = €331
Your Yearly Income
€331 x 12 = €3,979