Amway Compensation Plan

Amway Compensation Plan

Amway Compensation Plan

Amway was founded in 1950s. Amway was started in Ada, Michigan by Jay Van Andel and Rich Divos. They coined Amway as abbreviation of “American Way”. The company launced its first product in 1959, that was a liquid organic cleaner. Now there are more than 450 products prevailing in about 90 markets. Amway products are more focused on health and beauty, but the company also offers alternative products like home cleaners, water purifier and much more other products. Amway compensation plan has two revenue streams, direct selling and multi level marketing. Amway follows stair step break away compensation plan, which is the oldest type of mlm compensation plans.

The plan is comprised of different levels of career path. The first stage is direct distributor or Independent Business Operator, who attains the further levels with the following designations

1. Silver Producer
2. Gold Producer
3. Platinum Producer
4. Emerald
5. Diamond
6. Q 12

In order to attain these levels there are specific qualification according to Amway Compensation Plan. In order to qualify for the level of Silver Producer, the Independent Business Operator has to reach the maximum bonus level for one month. The next level is Gold Producer, for which the Independent Business Operator should qualify the maximum bonus level for three months. Platinum or Direct level requires the Independent Business Operator to achieve the maximum bonus level for six months. In North America, Platinum Independent Business Operator is generating about $30000 in sales volume per month.

Platinum is the start for higher levels of Amway Compensation Plan. The next level is Emerald that requires the distributor or Independent Business Operator to maintain at least three legs, generating silver producer volume for six months of the year. To achieve the level of Diamond Distributor, the representative is required to meet the specification of maintaining at least six legs, generating silver producer volume for six months of a year. Q 12 is Platinum or higher Independent Business Operator who qualifies for every month of a year.

Amway compensation plan allows their distributors to build deep network unit as well as wide network unit. It means the distributors may recruit as many front line distributors or Independent Business Operators (IBO) which may act as legs of his organization. And same is the scenario for the front line IBOs acting as legs for the organization of the IBO who recruited them. In this way the representative is benefited by direct recruits as well as each deep unit of his organization.

According to Amway Compensation Plan, there is a specific qualification that every distributor needs to fulfill to attain the level of Direct Distributor where he comes in a position of direct dealing with company and sourcing the products for his front line distributors. For this, the distributors have to reach the top of volume rebate scale to show their group volume significant enough to claim the level of Direct Distributor. The further levels of career path are achieved by meeting the specifications for every next level. The bonus percentage is 3% to 25% depending upon the levels of the career path.


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