Distribution of Amway

Sales and Distribution

Group Members

Rahul Joshi

Kalpesh Kulkarni

Ashwin Kalra

Tarveen Kalsi

Latika Chopra

Started in US in 1959 with 1 product Global turn over of Rs.30000 crs. 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

31 products in four categories: Home Care, Personal Care, Nutrition & Wellness Artistry.

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 130 offices 5,00,000 Amway Business owners (ABO)

Raw Materials

Amway Manufacturing and Distribution

ABO’s

End Consumers

MANUFACTURER

STOCKIST

WHOLESALER

RETAILER

CUSTOMER

MANUFACTURER

DISTRIBUTOR

CUSTOMER

PHYSICAL DISTRIBUTION

INTELLECTUAL DISTRIBUTION

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

END CONSUMER

SPONSOR

ABO 3Every ABO & Sponsor has to 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%

Every product is allocated a Point Value (PV) and a Business Volume (BV). The PV is used to calculate the rebate percentage earned.

The BV is usually close to the wholesale price of the product less any sales tax.

The rebate paid is calculated by multiplying the PV rebate percentage by the total BV.

PV BVRebate (%

of BV)

10,000+ 5,00,000 21%

7,000 3,50,000 18%

4,000 2,00,000 15%

2,000 1,00,000 12%

1,000 50,000 9%

300 15,000 6%

1PV = 50 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.

YouPersonal use

100 PV

Customer1:Sale:100 PV

Customer 2Sale:100 PV

300 PV = 15000 BV6 % Rebate On final

volume

Total sale 15000

Retail profit margin @

20% of personal sale

3000

Commission earned 6% of

total BV

900

Total amount earned

Rs.3900

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 15,000 each

Total sale :1500 PV =75000 BV

Total Sales Turnover of the group

75000 BV

Total Performance Bonus earned by groupis 9% of 75,000 BV

Rs. 6,750 (X)

Performance Bonus paid to your down lines A, B, C & D [6% of 60,000 BV(turnover of down lines)]

Rs. 3,600 (B)

Bonus paid to you (X - B) Rs. 3,150

Retail Profit margin @ 20% on personal volume

Rs. 3,000

Your Total Earning of the month= Rs. 3,000 + Rs. 3,150 =

Rs. 6,150

YouSale :300PV

ASale:

300 PV ASale:

300 PV

ASale:

300 PV

ASale:

300 PV

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

AmwayLead Organization. Head Office in USA

Regional Affiliate Organizationse.g. Amway (UK and Ireland)

IBO’s

End Consumers

100% Money-back Guarantee

Payment Mode - Account payee cheques drawn in favor of Primary Applicant/Entity only

THANK YOU