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2011 AMWAY GROWTH INCENTIVES Your Business. Your Achievement. Your Rewards.

Incentivos 2011

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Page 1: Incentivos 2011

2011 AMWAY GROWTH INCENTIVESYour Business. Your Achievement. Your Rewards.

Page 2: Incentivos 2011

TheaveragemonthlyGrossIncomefor“active”IBOswas$115(U.S.)/$181(Canada).

Approximately66%ofallIBOsofrecordwerefoundtobe“active”basedonanindependentsurveyin2001.

“Active”meansanIBOattemptedtomakearetailsale,orpresentedtheAmwayIndependentBusinessOwnerCompensationPlan,orreceivedbonusmoney,orattendedacompanyorIBOmeetingintheyear2000.“GrossIncome”meanstheamountreceivedfromretailsales,minusthecostofgoodssold,plustheamountofPerformanceBonusretained.Theremaybesignificantbusinessexpenses,mostlydiscretionary,thatmaybegreaterinrelationtoincomeinthefirstyearsofoperation.

FollowingareapproximatepercentagesofDirectFulfillmentIBOsofrecordinNorthAmericawhoachievedtheillustratedlevelsofsuccessintheperformanceyearendedAugust31,2009:Q120.3764%;Platinum0.2575%;Ruby0.0059%;FoundersPlatinum0.6063%;FoundersRuby0.0038%;Sapphire0.0277%;FoundersSapphire0.0424%;Emerald0.0206%;FoundersEmerald0.0739%;Diamond0.0214%;FoundersDiamond0.0112%;ExecutiveDiamondandAbove0.0106%.

IBOswhoearnedaPlatinumPlusBonusinatleastonebonusperiodinFY2009:0.3217%.IBOswhoearnedaPlatinumEliteBonusinatleastonebonusperiodinFY2009:0.1395%.

IBOswhoearnedFAAinFY2009:0.0121%.

IBOswhoachievedQ12inFY2009:0.3764%.

IBOswhoearnedeightormorein-marketFAAcreditsinFY2009:0.0100%.

TheAmwayIndependentBusinessOwnerCompensationPlan(IBOCompensationPlan)offersmonthlyandannualbonusesthatIBOscanearninaccordancewiththeircontractwithAmway.IBOsalsomayqualifyfortheAMWAY™GrowthIncentivesProgram(GIProgram),acollectionofdiscretionaryprogramsseparatefromtheIBOCompensationPlanandthatcanvaryfromyeartoyear.IBOeligibilityfortheGIProgramisatAmway’sdiscretion.TheGIProgramisavailableonlytoIBOsin“goodstanding”andthosewhoseconductdemonstrateshighethicalandbusinessstandardsalignedwiththegoalsandobjectivesofAmwayanditsrelatedbusinesses.

FormoredetailsonqualifyingfortheGIProgramandtherequirementsforgoodstanding,seeinformationonAmway.comorcontactAmwaySales.

AWARDSSUMMARY

PushtoPlatinumFirst-timePlatinum: $2,500andNewPlatinumConferenceinvitationMonthly: PlatinumPlusand/orPlatinumEliteAnnual: Q12Awardof$7,500to$20,000

SoartoSapphireFirst-timeSapphire(in-market): $5,000andAchieversinvitationFirst-timeFoundersSapphire(in-market): $7,500andAchieversinvitationMonthly: PlatinumPlusand/orPlatinumEliteAnnual: Q12Awardof$7,500to$20,000

ElevatetoEmeraldFirst-timeEmerald(in-market): $15,000First-timeFoundersEmerald(in-market): $20,000

Expansion(forin-marketFoundersEmerald): $25,000or $50,000or $75,000Monthly: PlatinumPlusand/orPlatinumEliteAnnual: Q12Awardof$7,500to$20,000 Achieversinvitation

DrivetoDiamondExpansion(forin-marketDiamondswithatleast3qualified12-monthlegs): $100,000or $125,000or $200,000or $250,000Monthly: PlatinumPlusand/orPlatinumEliteAnnual: Q12Awardof$7,500to$20,000 Achieversinvitation DiamondClubinvitationGrowthIncentivesareawardedbasedonNorthAmericaqualifyinglegsandvolumeonly.

TAKEYOURBUSINESSTOTHENEXTLEVEL

EveryIBOwhoembracesthisopportunitydoessofordifferentreasons.You’reuniqueandsoareyourgoals.Andthisbusiness–yourbusiness–letsyougrowasfarandasfastasyouchoose.

AmwayGrowthIncentivesandspecialprogramscanaddtoanexceptionalcompensationplanwithavarietyofcashawards,businessconferences,andotherbenefitstohelpyoutakeyourbusinesstothenextlevel.Setyoursightsonaspecificgoalandgoforit!

CONTENTS

First-timeCashAwards 5

MonthlyAwards 5

AnnualQ12Awards 6

Q12BonusCriteriaandOptions 6

VolumeEquivalencyRequirements 7

ExpansionAwards 7

BusinessConferences 8

PeterIslandQualifications 10

FoundersAchievementAwards 11

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GROWTHINCENTIVESQUALIFICATIONDETAILSAll awards and business conferences

AmwayIndependentBusinessOwners(IBOs)canberecognizedandcompensatedbyAmwayinavarietyofways.

AmwayIBOCompensationPlanTheIBOCompensationPlanoffersmonthlyandannualbonusesthatIBOscanearninaccordancewiththeircontractwithAmway.

AmwayGrowthIncentivesIBOsalsomayqualifyforGrowthIncentives,acollectionofdiscretionaryawardsseparatefromtheIBOCompensationPlan.Whilethesecanvaryfromyeartoyear,newGrowthIncentivesaredesignedforusefromfiscalyear2010tofiscalyear2012.Fiscalyears

beginSeptember1andendAugust31.Barringunforeseenbusinessconditions,thisthree-yearprogramallowsIBOstodeveloppersonalbusinessgoalstoachievekeyGrowthIncentives.Fiscalyear2011isthesecondyearofthecurrentprogram.

TheGrowthIncentivesProgramalsooffersqualificationsforselectbusinessconferences.

Amwaymustverifyandconfirmthatallqualifiershavemetawardcriteria.

IBOeligibilityforthe2011GrowthIncentivesProgramisatthediscretionofAmwayandisbasedonconductthatdemonstrateshighethicalandbusinessstandardsalignedwiththegoalsandobjectivesofAmwayanditsrelatedbusinesses.

Thesestandardsrequirethat:•anIBO’sconductmustnot

negativelyaffectthereputationofAmway,itsrelatedbusinesses,orIBOsaffiliatedwithAmwayanditsrelatedentities;

•anIBOcomplieswiththeletterandspiritoftheRulesofConduct,laws,andregulationsinanymarkettheIBOhasapresence,anddemonstratesculturalsensitivitygivenmarketconditions;and

•anIBOdoesnotdefendorsupporttheconductofotherswhodonotcomplywiththiscriteria.

DEFINITIONS

BaselineRequirementsFor Annual Q12 and Expansion Awards• Generate150PersonalPV

eachmonth(1,800Annual)thatincludes50QCPV(600Annual)fromqualifiedsalestoregisteredcustomerseachmonth.

• Completeatleastsixtrainingcredits.

QualifiedCustomerPV(QCPV)includesvolumefromregisteredcustomerordersplacedthroughAmway.com(includingPartnerStoreorders),PersonalRetailWebsites,DITTO®program,andCustomerSupport,andshippedtothe

customer’saddress.CustomersalesfrominventorymustbereportedusingtheCustomerSalesActivity(CSA)ReceipttoolatAmway.com.CustomerordersshippedtoanIBO’saddressarenoteligible.

AwardVolumeincludesyourPersonalPVplusthePVofIBOsinnon-qualified(non-25%)legs.ThisincludesPass-upPVfromdownlinenon-qualifiedPlatinums.

PersonalGroup(PG/Ruby)VolumeincludesyourPersonalVolumeandPass-upVolume(non-25%)fromnon-Platinumlegs.ItdoesnotincludeanyPlatinumPVwhetherqualifiedornot.

ANewLegisanin-marketlegqualifiedforthemonthat25%thatdidnothaveaPlatinuminitoneyearago.

ASecond-yearlegisanin-marketlegqualifiedforthemonthat25%thatdidnothaveaPlatinuminittwoyearsago.

AQisaqualifiedin-market25%monthinyourfrontline(legs).ExpansionAwardsandQ12PlatinumPlusforEmeraldPinsrequireQsforqualification.Seepages6and7fordetails.

FIRST-TIMECASHAWARDSBonuses earned when you qualify at these levels for the first time and they are the highest pin levels for which you’ve qualified.

AmwayoffersextraGrowthIncentivesforachievingkeymilestonesinNorthAmericaforthefirsttime.

First-timeCashAwardsarecumulative.IfanIBOqualifiesformorethanoneawardinthesamefiscalyear,theyqualifyforeachaward.Separatepaymentswillbegenerated.

NorthAmericanPlatinum,Sapphire,andEmeraldFirst-timeCashAwardswillbepaidthemonthafterthequalificationhasbeenachievedandapproved.FoundersAwardswillbepaidafteryearend,followingqualificationapproval.

Achieve GrowthIncentiveFirst-timePlatinum* $2,500 and NewPlatinumConferenceinvitation________________________________________________________________________________________________________

First-timeSapphire(in-market) $5,000andAchieversinvitationFirst-timeFoundersSapphire(in-market) $7,500andAchieversinvitationFirst-timeEmerald(in-market) $15,000andAchieversinvitationFirst-timeFoundersEmerald(in-market) $20,000andAchieversinvitation________________________________________________________________________________________________________*NewPlatinumsmayoverlapfiscalyearsasoutlinedintheAmwayBusiness Reference Guide.IBOswhooverlapthe2010–2011fiscal

yearwillbepaidthe2011QualificationAward.

MONTHLYAWARDSEarn additional monthly bonuses as you grow beyond Platinum.

Achieve GrowthIncentivePlatinumPlusGenerate10,000to12,499PVinPersonalGroup/RubyVolumeforonemonth 2%ofPG/RubyBVorPlatinumEliteGenerate12,500PVormoreinPersonalGroup/RubyVolumeforonemonth 4%ofPG/RubyBV

TheaveragemonthlyGrossIncomefor“active”IBOswas$115(U.S.)/$181(Canada).

Approximately66%ofallIBOsofrecordwerefoundtobe“active”basedonanindependentsurveyin2001.

FollowingareapproximatepercentagesofDirectFulfillmentIBOsofrecordinNorthAmericawhoachievedtheillustratedlevelsofsuccessintheperformanceyearendedAugust31,2009:Q120.3764%;Platinum0.2575%;Ruby0.0059%;Sapphire0.0277%;FoundersSapphire0.0424%;Emerald0.0206%;FoundersEmerald0.0206%;Diamond0.0124%.

IBOswhoearnedaPlatinumPlusBonusinatleastonebonusperiodinFY2009:0.3217%.IBOswhoearnedaPlatinumEliteBonusinatleastonebonusperiodinFY2009:0.1395%.

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ANNUALQ12AWARDSYou may qualify for an award of $7,500, $15,000, or $20,000 when you meet baseline requirements and generate 12 qualifying months during the fiscal year. As a qualifier, you will receive one annual Q12 Award, whichever is highest.

Achieve GrowthIncentiveQ12AwardGenerate12Q12monthswith7,500AwardPVorbymeetingtherequirementsonthechartbelow. $7,500andAchieversinvitation________________________________________________________________________________________________________

Q12PG/RubyGenerate12Q12monthswith7,500PVinPG/RubyVolumeorbymeetingtherequirementsonthechartbelow. $15,000andAchieversinvitation________________________________________________________________________________________________________

Q12PlatinumPlusFor IBOs below EmeraldGenerate12Q12monthswith10,000PVinPG/RubyVolumeorbymeetingtherequirementsonthechartbelow. $20,000andAchieversinvitation________________________________________________________________________________________________________

Q12PlatinumPlusFor IBOs who previously achieved Emerald Generate12Q12monthswith10,000PVinPG/RubyVolumeorbymeetingtherequirementsonthechartbelow,andaddatleastsixQs†. $20,000andAchieversinvitation†Must exceed 2010 Q baseline.

Q12BONUSCRITERIAANDOPTIONSTo receive a Q12 Bonus requires that you produce at least 7,500 PV in either Award Volume or PG/Ruby Volume. As an IBO develops new downline qualifiers, there are additional ways to earn a Q12 GI month.

MONTHLYREQUIREMENTSFORQ12Q12 Bonus Required Volume Type Full Volume or 1 New Leg* or 2 New Legs or 1 Second-year Leg or 2 Second-year Legs$7,500 Award 7,500 PV 4,000 PV 2,500 PV 5,000 PV 2,500 PV$15,000 PG/Ruby 7,500 PV 4,000 PV 2,500 PV 5,000 PV 2,500 PV$20,000 Platinum Plus (below Pin Emerald) 10,000 PV 6,000 PV 4,000 PV 10,000 PV 10,000 PV $20,000 Platinum Plus†

(Pin Emerald) 10,000 PV† 10,000 PV† 10,000 PV† 10,000 PV† 10,000 PV†

*Can be averaged

†Must grow six Qs and exceed 2010 Q baseline.

VOLUMEEQUIVALENCYREQUIREMENTSShould you miss one or two Q12 months, you may still qualify with Volume Equivalency. This requires 10 or 11 Q12 months plus the required volume (see chart below).Q12 Bonus Volume Criteria $7,500 Award 10–11 Q12 Award months plus 108,000 Award PV$15,000 PG (Ruby) 10–11 Q12 PG/Ruby months plus 108,000 PG/Ruby PV$20,000 Platinum Plus (below Pin Emerald) 10–11 Q12 Platinum Plus months plus 144,000 PG/Ruby PV$20,000 Platinum Plus (Pin Emerald) 10–11 Q12 Platinum Plus months plus 144,000 PG/Ruby PV plus at least six new Qs†

†Must exceed 2010 Q baseline.

You can track your Q12 month progress on Amway.com > Business Center > View Business Reports > GI Program Tracking

EXPANSIONAWARDSBonuses designed to reward you for becoming a leader and helping others to succeed.

YoumayqualifyforanExpansionAwardwhenyouachievebaselinerequirementsandgeneratethevolumeshownbelow.

Asaqualifier,youwillreceiveoneannualExpansionAward,whicheverishigher.

FOUNDERSEMERALDEXPANSIONAWARDSQualified in-market Founders Emeralds with at least 3 qualified in-market 12-month legs can earn one of the following awards.

ForEmeraldBonusRecipients:•With36Qsand4,000monthlyPVPG/RubyVolume(48,000annual) $25,000or•With36Qsand6,000monthlyPVPG/RubyVolume(72,000annual) $50,000or•With36Qsand7,500monthlyPVPG/RubyVolume(90,000annual) $75,000or•With36Qsand2,500monthlyPVPG/RubyVolume(30,000annual)plusatleastsixnewQs† $75,000

DIAMONDEXPANSIONAWARDSQualified in-market Diamond Bonus Recipients who have a minimum of 3 qualified in-market 12-month legs can earn one of the following awards.

ForDiamondBonusRecipients:•With54Qsand4,000monthlyPVPG/RubyVolume(48,000annual) $100,000or•With60Qsand4,000monthlyPVPG/RubyVolume(48,000annual) $125,000or•With72*Qsand2,500monthlyPVPG/RubyVolume(30,000annual) $200,000or•With72*Qsand2,500monthlyPVPG/RubyVolume(30,000annual)plusatleastsixnewQs† $250,000

*DiamondBonusRecipientswhoachieveeightNorthAmericanFAAcreditsand2,500monthlyPG/RubyVolume(30,000annual)canqualifyinlieuof72Qsand2,500PG/RubyVolume.AtleastsixnewQsarestillrequiredtoreceivethe$250,000ExpansionAward.†Must exceed 2010 Q baseline.

} andAchieversinvitation

andAchieversinvitation}

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TheaveragemonthlyGrossIncomefor“active”IBOswas$115(U.S.)/$181(Canada).

Approximately66%ofallIBOsofrecordwerefoundtobe“active”basedonanindependentsurveyin2001.

FollowingareapproximatepercentagesofDirectFulfillmentIBOsofrecordinNorthAmericawhoachievedtheillustratedlevelsofsuccessintheperformanceyearendedAugust31,2009:Q120.3764%;Platinum0.2575%;Ruby0.0059%;Sapphire0.0277%;FoundersSapphire0.0424%;Emerald0.0206%;FoundersEmerald0.0739%;Diamond0.0124%.

IBOswhoearnedaPlatinumPlusBonusinatleastonebonusperiodinFY2009:0.3217%.IBOswhoearnedaPlatinumEliteBonusinatleastonebonusperiodinFY2009:0.1395%.

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NorthAmericanGrowthCouncilThe premier recognition event and strategic planning conference of the year for top North American achievers where only the finest first-class luxury treatment will do. Get to this level and it’s no longer called success, it’s called elite success – and the reward trip is just as stupendous as the achievement. This incredible journey is sure to inspire even more business success in days ahead. See page 10 for qualification requirements.

GlobalFoundersCouncilThis is the highest global level of achievement recognized in the AMWAY™ business. With 20 FAA points and/or as a currently qualified Crown Ambassador, travel with the world’s most elite group of Amway leaders for an extravagant excursion – one you will savor forever! Whether it be Monte Carlo, a major competitive sporting event held in Beijing, or New York City. Go behind-the-scenes and above-the-clouds – this is a high-class experience, designed to abundantly reward Amway’s highest achievers.

BUSINESSCONFERENCESFor many IBOs, qualifying for invitation-only business conferences is an added incentive to achieve. Held in fabulous locations, these events give achieving IBOs a chance to talk strategy, try new products, and celebrate accomplishments.

Business conference invitations are awarded at several qualification levels.

NewPlatinumConferenceNewly qualified Platinums, the newest leaders in the business, are invited to a three-day business seminar that provides inspiration, motivation, and information to grow as a leader. New Platinums take part in world-class training to build sales and sponsoring skills and are given the opportunity to connect with executives from Amway and the Independent Business Owners Association International.

AchieversInvitationalIn a word, this annual event can only be described as spectacular. And it should be for the deserving IBOs who are Q12 Growth Incentive recipients, and/or qualified Sapphires and above who receive an invitation to attend. Achievers is the biggest business conference of the year for North America! Eligible IBOs are treated to inspiring business meetings, excellent sales and product training, a recognition gala, great entertainment, and leisure time activities.

DiamondClubQualified Diamonds and above embark on a six-day sojourn with deluxe accommodations. Attendees participate in strategic meetings, new product assessments, networking opportunities, and a wonderful celebration of outstanding achievement. But that’s not all! Attendees are surprised and delighted from the moment they arrive with special treats, celebrity appearances, marvelous parties, once-in-a-lifetime activities, amazing spa treatments, and more – all for their pleasure and relaxation.

ExecutiveDiamondClubQualifiedExecutiveDiamondsandabovealwaystravelfirstclasstoAmwayevents. For this conference, they join in the Diamond Club experience with a couple of extra-special days added on to meet with Amway executives – connect, collaborate, and strategize together – and also enjoy the ultimate in leisure time activities. No matter what you do at Executive Diamond Club, you can be sure it will be extraordinary!

PeterIslandBeautiful white sand beaches and trade wind breezes – the islands are calling you! Peter Island’s exclusive resort boasts first-rate food and service. How can we make your dreams come to life? A private yacht for a day or overnight cruise with your own captain and staff, shopping in St. Thomas with a stay at the The Ritz-Carlton® Hotel, a private hideaway on St. John, scuba diving, snorkeling, and sailing, the possibilities are endless ... paradise awaits you!

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FOUNDERSACHIEVEMENTAWARDS(FAA)DiscretionarycashawardsarepresentedtoIBOswhomeetbaselinerequirements,demonstrateextraordinarybusinessdevelopment,andexhibithighethicalandbusinessstandards.Toqualify,youmustbeaDiamondBonusRecipientwithaminimumofeightFAAcredits.Thefirsttimeyouaccumulate40FAAcreditsormore(inincrementsoffive),you’reeligibletoreceiveaspecialOne-timeCashAwardinsteadofanAnnualCashAward.

$1,120,000

$1,200,000

40 45 50 55 60 65 70

$1,680,000

$1,800,000

$2,240,000

$2,400,000 $2

,800,000

$3,000,000 $3

,360,000

$3,600,000

$3,920,000

$4,220,000

$4,480,000

$4,800,000

$ 1,500,000

$ 2,000,000

$ 2,500,000

$ 500,000

$ 1,000,000

$560,000

$600,000

40 45 50 55 60 65 70

$672,000

$720,000

$784,000

$840,000

$896,000

$960,000

$1,008,000

$1,080,000

$1,120,000

$1,200,000

$1,232,000

$1,320,000

$28,000

$30,000

8Credits 12 16 20 25 30 35

$56,000

$60,000

$112,000

$120,000

$168,000

$180,000

$224,000

$240,000

$336,000

$360,000

$448,000

$480,000

$ 3,000,000

$ 3,500,000

$ 4,000,000

$ 4,500,000

FAA Annual Cash Awards FAA One-time Cash Awards

Award amount U.S. dollarsAward amount Canadian dollars

Award amount U.S. dollarsAward amount Canadian dollars

FoundersAchievementAwards

FAACreditCalculation

DomesticLeg Credits12-monthleg 1.0EmeraldBonusleg 1.5DiamondBonusleg 3.0

InternationalLeg Credits

#212-monthleg 1.0#2EmeraldBonusleg 1.5#2DiamondBonusleg 3.0–6.0Other12-monthleg 0.5

TheaveragemonthlyGrossIncomeearnedby“active”IBOswas$115(U.S.)/$181(Canada).

Approximately66%ofallIBOsofrecordwerefoundtobe“active”basedonanindependentsurveyin2001.

FollowingareapproximatepercentagesofDirectFulfillmentIBOsofrecordinNorthAmericawhoachievedtheillustratedlevelsofsuccessintheperformanceyearendedAugust31,2009:Q120.3764%;Platinum0.2575%;Ruby0.0059%;Sapphire0.0277%;FoundersSapphire0.0424%;Emerald0.0206%;FoundersEmerald0.0206%;Diamond0.0124%.

IBOswhoearnedaPlatinumPlusBonusinatleastonebonusperiodinFY2009:0.3217%.IBOswhoearnedaPlatinumEliteBonusinatleastonebonusperiodinFY2009:0.1395%.

PETERISLANDQUALIFICATIONSQualifiedDiamondsandabovecanqualifyforoneormorePeterIslandinvitationsuponachievingthebaselineandqualificationrequirements.

Foroneinvitation,youmustbea: •NewDiamondwithatleastthreePeterIsland(PI)credits,ora •RequalifiedDiamondBonusRecipient(DBR)whoachievesPeterIslandgoal,ora •RequalifiedDBRwhoachieves12PeterIslandcredits,ora •NewCrownAmbassador*whoisaDBR.

*Thisinvitationisinadditiontotripsearnedbasedoncredits.

Fortwoinvitations,youmustbearequalifiedDBRwith18PeterIslandcredits.

DiamondswhoqualifiedinFY2006orlaterhaveagraceperiodandarenotrequiredtobeaDBRfortheirfirsttwotrips.DBRrequirementsbeginwhenthethirdtripisearned.

First-timeDiamondswithatleast3.0PIcreditsorRequalifyingDiamondswhoareDBRsandachievetheirgoalearnonetrip.AnadditionaltripcanbeearnedforbeingDBRwith18PIcreditsorearningaNewCrownAmbassadorpin.

Year-to-yearGoalsMinimumgoalafterearningyourfirsttripis4.5credits.

IfyouachieveorexceedyourFY2010goal,yourFY2011goalwillbe.5credithigherthantheFY2010goal.IfyoudidnotachieveyourFY2010goal,yourgoalforFY2011willnotchange.

CreditsPeterIslandcreditsareearnedonqualifiedin-marketlegs: •0.5creditfora6-to11-monthqualifiedleg. •1.0creditfora12-monthqualifiedleg. •1.5creditsforanEmeraldBonusleg. •3.0creditsforaDiamondBonusleg.

YoucantrackyourprogressonAmway.com>BusinessCenter>ViewBusinessReports>GIProgramTracking.

NORTHAMERICANGROWTHCOUNCILQUALIFICATIONSNorthAmericanGrowthCouncilinvitationsareextendedtoIBOswhoachieveDBRwithatleast3in-marketQ12legsand: •84in-marketQs, •10in-marketFAAcredits,OR •72in-marketQsplusatleastsixnewQs†intheyearofqualification.†Must exceed 2010 baseline.

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