What is Amway MLM compensation plan? Amway IBO Review


Amway

If the selling of beauty and home cleaning products to your friends and family sounds like a great idea to you, then, this could be an excellent opportunity to make money with a flexible schedule. MLM programs like that of Amway could be the best way to seek the flexibility and income that you have always wanted. 

In this review, I will be outlining what it takes to earn a living from this kind of business opportunity. You will also want to know if this program is legit or another pyramid scheme. Sit back and relax as I review all that is about the Amway MLM business to you.

What is Amway? An Overview

Amway is a multilevel marketing company that was established in the year 1949 by two good friends – Richard DeVos and Jay Van Andel. Initially known as the Ja-Ri Corporation, the duo started out by selling Nutrilite and other imported products. After a decade, Richard DeVos and Jay Van Andel have had more than 5,000 distributors directly under them. 

By 1959, the two friends decided to start Amway with their top distributors selling their now well-known product, the Liquid Organic Cleaner. This changed everything in their lives. After making a success of the home products, they quickly made an entrance in the world of beauty and health products. 

With total revenue of $8.8 billion in 2018, over 3 million salespersons and 17,000 corporate employees, there is no doubt Amway is one of the best MLM companies in the world. Amway is a USA company based in Michigan. Amway has networks of millions of Independent Business Owners (IBO) in more than 100 countries.

Product information

Amway Products

Amway is a low-risk business that anyone can join. It is a great revenue opportunity for people who want to live a flexible life while earning a stable income. To grow in the business, a lot of hard work is needed. To succeed, you don’t just have to sell the products; you have to also do aggressive recruitment which is common amongst MLM businesses.

How to register and become an Independent Business Owner

Follow these steps to register to become a Business Owner

  1. Go to https://www.amway.com/en_US/register and click on “Become an IBO” under “START YOUR BUSINESS”.
  2. Fill out the registration form.
  3. You must have a sponsor to fill the form successfully. Select Amway Direct Seller and enter the ID number of the distributor. If you don’t have a distributor ID number, just enter 7001618832 to complete the registration
  4. Upload information such as proof of address, your account details and means of identification
  5. Then, submit the form

Amway compensation plan

When people want to go into MLM, the very first thing they consider is the compensation plan. MLM Industry wise, Amway has one of the best compensation plans. The company has two types of compensation plans. So, let us check them out.

  1. Direct income from sales of products – At this point, you are the one to determine how much you want to make a profit when you sell the products. In this category, you can buy the products at a discounted price. You earn the profit when you sell the discounted price products at a higher/reasonable retail price.
  2. Personal performance bonus (PPB) – This is the corresponding commission for every sale made at this level. Your commission starts growing with PPB especially when you have recruited a lot of people to form a large downline.

For a better understanding, let me breakdown some of their terminologies.

  • Point Value (PV) – A PV is given each time products are purchased whether for resale or personal use. These are points that are assigned to each product purchased.
  • Business Volume (BV) – This stands for the value of each product in dollars and is determined based on the number of orders made by you or your team.
  • Performance Bonus Schedule (PBS) – This is determined basis the tabulation of the PVs alongside their percentages. More points give you a higher Performance Bonus.
  1. Personal Bonus Schedule
  • 7500 and more PVs = 25% PB (the commission)
  • 6000 – 7499 PVS = 23%
  • 4000 – 5999 PVS = 21%
  • 2500 – 3999 PVS = 18%
  • 1500 – 2499 PVS = 15%
  • 1000 – 1499 PVS = 12%
  • 600 – 999 PVS = 9%
  • 300 – 599 PVS = 6%
  • 100 – 299 PVS = 3%
  1. Pass-Up Volume (PUV) – This refers to each of your frontlines. That is the first set of people you recruited into your team. The PUV is added to the BV to come up with your Gross Performance Bonus (GPB). The Performance Bonus (PB) is one of the requirements that move you up the ladder in the Amway MLM business. PB is the commission you make from BV. That is BV x PBS = PB

This means that 2,500 PVs attracts 18% PB when you check the PBS table above. It means with a $5,000 BV of 18% commission, you will get $900. Your immediate income is not added up yet. But, in reality, I wish it is as easy as it is being calculated.

The computation is somehow overwhelming and it is neither complicated nor simple.

Who is it for?

Amway MLM is an excellent way to make money with a flexible schedule. This makes the program perfect for students, housewives, nursing mothers, single mothers, retirees, pensioners, young men and women.

Pros:

  • Fees are refundable – Your registration fees can be refunded if you decide within 60 to 180 days that you no longer want to be an Independent Business Owner of Amway
  • Free courses – To succeed in the business, Amway has different courses, presentations and podcasts that are available for free.
  • Plenty of products – There are plenty of products in Amway’s catalogue. These products range from personal care, energy drinks, home products, weight management products, beauty products and sports nutrition.
  • Multinational – It is safe to say that Amway is a multinational company that operates in more than 100 countries.
  • Quality products – Amway is known for high-quality products. The products quality speaks for themselves. If you are a fulltime Independent Business Owner, you will surely be proud of the products you are selling.
  • A+ rating – Amway is rated A+ currently. Though an A+ rating is common with big MLM corporations Amway was rated BBB for close to 30 years.

Cons:

  • Shipping cost – As a seller on Amway, you will have to pay for the shipping cost for every order you make for your customers. Shipping costs eat into your commission thereby making you lose some money.
  • Expensive products – The cost of the products are usually inflated by distributors or Independent Business Owners (IBOs). In some cases, you find most of the prices of the products cheaper on Amazon.
  • The investigation by FTC – Amway has been a subject of a constant investigation by the Financial Trade Commission (FTC) for cooking the books. Though, FTC didn’t tag Amway as a pyramid scheme. It, however, said the company is operating as a pyramid scheme. The investigation was conducted in 1998.

Legit or scam

Amway is a legit company though there are many that see them as a scam or a pyramid scheme due to the fact that they have lost money in the business.

Conclusion: Is Amway MLM recommended?

No. Amway is not recommended because many people have accused Amway representatives of misinformation and misguidance. Others have also accused the company of employing unethical product promotion to hoodwink people into investing in the business.


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