2013 growth incentives program faqs -...

2013 GROWTH INCENTIVES PROGRAM FAQS

IBO eligibility for the 2013 Growth Incentives Program is at the discretion of Amway and is based on conduct that demonstrates high ethical and business standards aligned with the goals and objectives of Amway and its related businesses.

GENERAL QUESTIONS

Q. How long will the 2013 Growth Incentives (GI) Program be in effect?A. The Growth Incentives Program is reviewed and updated annually to ensure IBOs are being

recognized and compensated the right way for doing the right things.

Q. What is PG/Ruby Volume? A. PG/Ruby is designated as Ruby Volume on your PV/BV Inquiry. It includes your Personal PV plus

pass-up volume from downline non-25%, non-Platinum legs. It does not include volume from any Platinum whether qualified at 25% or not.

1FOR IBO USE ONLY. NOT FOR USE WITH PROSPECTS.

2 FOR IBO USE ONLY. NOT FOR USE WITH PROSPECTS.

No pass up

PG/RUBY VOLUME

Illustration Key

You

IBOs you sponsor/train/support

You

2,500 PG/Ruby PV

IBO A 3,500 PG/Ruby PV (18%)

Platinum

IBO B 5,000 PG/Ruby PV (21%)

You

1,500 PG/Ruby PV

PG/IBO A 3,500 Ruby PV (18%)

Platinum

IBO B 2,500 PG/Ruby PV (18%)

7,500 PG/Ruby PV

(does not count PV from nonqualified Platinum)

This counts as a Q12 Month

4,000 PG/Ruby PV

(does not count PV from nonqualified Platinum)

This is NOT a Q12 Month

No pass up


BASELINE REQUIREMENTS

Q. What are the baseline requirements for the 2013 program?A. The baseline requirements that must be met to be eligible for annual Q12 and

Expansion Awards are: 1) Monthly, attain 150 Personal PV, 50 of which comes from Qualified Customer PV (QCPV), and 2) Complete six training credits.

Q. Can my 150 Personal PV be averaged?A. Yes. You can do 150 Personal PV each month or 1,800 annually.

Q. What is Qualified Customer PV (QCPV)?A. Qualified Customer Volume includes auto-captured retail sales to registered customers and

CSA-reported retail sales sold from inventory to registered customers residing outside the IBO’s primary residence.

Q. Do customer orders fulfilled from inventory and reported using the Customer Sales Activity (CSA) Receipt Tool count toward an IBO’s 50 QCPV monthly requirement?

A. Yes. Qualified Customer Volume will be used to determine whether an IBO met the 50 PV criteria.

Q. Does the requirement of 50 QCPV each month apply only for Q12 and Expansion Awards? A. The 50 QCPV requirement applies to all Growth Incentives (GI) annual bonuses, including all levels

of Q12 and both the Emerald and Diamond Q Leg Expansion Awards.

Q. How do the training credits work and what’s the best way to complete them? A. IBOs must complete six training credits to qualify for most growth incentives by taking online

courses, or attending Amway Instructor-led Training (ILT) courses at ACCREDITATION PLUS™ Program Approved Provider or Amway-sponsored events. Online courses that IBOs complete will automatically be tracked and will show each month on the IBO’s GI Program Tracking report online at Amway.com > Business Center > View Business Reports > GI Program Tracking.

Q. Who must complete the six training courses?A. All IBOs who wish to earn annual Q12 and Expansion Cash Awards.

Q. Will seminars, books, and tapes offered through an Approved Provider count for training credits?

A. No.

Q. How will I know what Growth Incentives I am tracking for in FY 13? A. You can see all your GI tracking information on your GI Tracking report online at Amway.com

> Business Center > View Business Reports > GI Program Tracking Program. Additionally, all Platinums will receive a monthly email from their National Account Representative. You may also call your National Account Representative to discuss everything you’re tracking for this year.


FIRST-TIME CASH AWARDS (FTCA)

Q. Can an IBO earn more than one First-time Cash Award (FTCA) in the same FY? A. Yes. First-time Cash Awards are cumulative. So, if an IBO earns more than one First-time Cash Award within

the same FY, they will receive all awards earned.

Q. Are FTCAs for requalifying pins or just first-time qualifiers?A. FTCAs (milestone awards) are for first-time-only qualifications.

Q. Are the baseline requirements listed earlier required to earn a FTCA?A. No. Baseline requirements must be met to receive Annual Q12 and Expansion Bonuses.

Q. If an Emerald Pin that qualified in FY 2012 with 2 North American legs and 1 international leg adds a fourth leg in North America in 2013, thus earning an Emerald Bonus for the first time, will they be eligible for a New Emerald FTCA in 2013?

A. Yes. The bonus is intended to reward first-time Emerald Bonus Recipients (EBRs).

PLATINUM PLUS/PLATINUM ELITE MONTHLY GI BONUSES

Q. Does nonqualified Silver Producer (SP) or Platinum volume count toward the Platinum Plus and/or Platinum Elite Bonus?

A. Only nonqualified (non-25%) SP volume counts toward PG/Ruby PV needed to qualify for either Platinum Plus or Platinum Elite. No Platinum volume counts, whether qualified at 25% or not.

Q. If an IBO qualifies with 15,000 PG/Ruby PV, is it true they can earn a 31% bonus on their Ruby BV?A. Yes. Through the GI Program, Platinum Plus pays an additional 1% on the Ruby BV when the Ruby PV is

between 10,000 and 12,499. Platinum Elite pays 3% on the Ruby BV when the Ruby PV is between 12,500 and 14,999 Ruby PV. An additional 1% is paid on the Ruby BV when the Ruby PV is $15,000 or more. Plus the IBO Compensation Plan pays yet another 2%, or a total of 6%, on the Ruby BV when the Ruby PV is 15,000 or higher. So, with the 25% Performance Bonus and an extra 6% paid on the Ruby BV, an IBO with 15,000 Ruby PV can earn 31% on their Ruby BV.


Q12 Bonus Q12 Level Full Volume Requirements

1 New Leg Requirements

2 New LegsRequirements

1 Second-year Leg Requirements

2 Second-year Leg Requirements

$15,000 Q12 PG/Ruby 7,500 PG/Ruby PV

4,000 PG/Ruby PV*

2,500 PG/Ruby PV

5,000 PG/Ruby PV 2,500 PG/Ruby PV

$20,000 Q12 Platinum Plus (Below EM)

10,000 PG/Ruby PV

6,000 PG/Ruby PV*

4,000 PG/Ruby PV

10,000 PG/Ruby PV

10,000 PG/Ruby PV

$20,000 Q12 Platinum Plus (EM PIN) + 6 Qs**

10,000 PG/Ruby PV + 6 Qs**

10,000 PG/Ruby PV + 6 Qs**

10,000 PG/Ruby PV + 6 Qs**

10,000 PG/Ruby PV + 6 Qs**

10,000 PG/Ruby PV + 6 Qs**

Is averaging allowed?

No Yes No No No

Q12 GENERAL QUESTIONS

Q. What is a new leg?A. A new leg is one that did not have a Platinum qualify in it one fiscal year ago.

Q. What is a second-year leg?A. A second-year leg is one that did not have a Platinum qualify in it two fiscal years ago.

Q. What are Qs? A. A “Q” is a qualified in-market 25% month in your frontline (1 Q per leg). Expansion Awards and Q12

Platinum Plus for Emerald Pins require Qs for qualification.

Q. If an IBO has a leg that hasn’t qualified Platinum since FY 2010, are they considered a new leg in FY 2013, or an existing leg?

A. By definition, a new leg is one that did not have a Platinum qualify in it the previous fiscal year. In this case, the last time this leg qualified a Platinum was in FY 2010. Since they did not qualify a Platinum in FY 2011 or FY 2012, it will be considered a new leg for FY 2013. Therefore, 4,000 PV would be required over the new leg to count as a Q12 PG/Ruby month. (See chart below to determine what’s needed over the new leg when qualifying for a Q12 Platinum Plus month.)

Q. What happens if an IBO has a mix of 1 new leg and 1 second-year leg? What is the requirement then?

A. Since qualifying over 1 new and 1 second-year leg is not applicable (must be either 2 new or 2 second-year legs), the volume requirement in this situation is 4,000 over the new leg, which is more beneficial than the 5,000 required over the second-year leg.

*Only volume over one new leg can be averaged. **Must grow 6 Q’s and exceed 2012 Q baseline.

IBO LEG REQUIREMENTS


Q. What volume can be averaged annually? A. These volumes can be averaged annually:• 150 Personal PV. • 50 qualified customer PV. • Q12 4,000 PV over a new leg (PG/Ruby). • Q12 6,000 PV over 1 new leg (Platinum Plus).• Expansion Award 300 PG/Ruby Volume • Expansion Award 2,500 PG/Ruby Volume. • Expansion Award 4,000 PG/Ruby Volume. • Expansion Award 7,500 PG/Ruby Volume.

These volumes cannot be averaged annually:• Q12 – qualifications using full volume (7,500 PV or 10,000 PV PG/Ruby). • Q12 – qualifications over 2 new legs (Award and/or PG/Ruby). • Q12 – qualifications over 1 or 2 second-year legs. Q. Is averaging allowed over a new leg? A. Averaging is allowed when qualifying over 1 new leg only. It does not apply to those months

qualifying over 2 new, or 1 or 2 second-year legs. When qualifying with less than 2,500 PV over 2 new legs, averaging only applies over 1 new leg; therefore, 4,000, 6,000, or 10,000 PG/Ruby PV over one new leg, is required for averaging to apply.

Q. I f an IBO has 10,000 PG/Ruby PV outside of a 7,500 PV leg for all 12 months, does that IBO earn the $20,000 Bonus?A. Yes! If they qualified Pin Emerald or above in the past, they will also need to add six new Qs.

Otherwise, they will receive $15,000.

Q. What is the definition of a Pin Emerald for the Q12 $20,000 Bonus?A. Any IBO whose highest pin is Emerald or above.


Q12 VOLUME EQUIVALENCY

Q. Can an IBO qualify for a Q12 Cash Award using Volume Equivalency?A. Yes. As follows: • 10–11 Q12 PG/Ruby Months PLUS 108,000 PG/Ruby PV = $15,000 Q12 PG/Ruby. • 10–11 Q12 Platinum Plus Months PLUS 144,000 PG/Ruby PV = $20,000 Q12 Platinum Plus

(below Pin Emerald). • 10–11 Q12 Platinum Plus Months PLUS 144,000 PG/Ruby PV PLUS six new Qs = $20,000

Q12 Platinum Plus (for Pin Emeralds only).

Q. If a leg qualifies for Q12 through Volume Equivalency, does it also count as a Founders 12-month leg?

A. Yes. However, when qualifying for an expansion award, only the actual numbers of Qs will be counted (i.e., 10 or 11.)

Q. Do Platinums and above need to report customer volume in order to receive the $20,000 Bonus?

A. Yes. Only those customer orders fulfilled through inventory need to be reported. Qualifying customer orders placed directly by registered customers using their customer number are automatically reported.

Q. Can I average Q12 months where no new legs qualified? A. No, see June in the chart on page 8 as an example. You may only average Platinum months where

a new leg qualifies in that month.

Q. Can I use additional volume over 7,500 in a month where no new legs qualified to average up a Q12 month where there is a new leg?

A. No, see February in the chart on page 8 as an example. Because no new leg qualified, this volume is not able to be applied to other months, such as July, in order to average.

Volume Equivalency

$15,000 Q12 PG/Ruby (VE)

10 or 11 Q12 PG/Ruby Months

+ 108,000 PG/Ruby PV

$20,000 Q12 Platinum Plus (Below EM) (VE)

10 or 11 Q12 PL Plus Months

+ 144,000 PG/Ruby PV

$20,000 Q12 Platinum Plus (EM PIN)

10 or 11 Q12 PL Plus Months

+ 144,000 PG/Ruby PV+ 6 Qs


Q. If 2 new legs qualify in a month, can I average? A. See July in the chart below as an example. July is not a Q12 month and would have to be averaged

up to 4,000 PV to qualify. When 2 new legs qualify, you can earn a Q12 month via averaging up to 4,000 PV. Any volume over 4,000 PV in a month where 2 new legs qualify can be applied to average other months up to 4,000 PV. There is no averaging at 2,500 PV.

New Leg 1 New Leg 2 PG/Ruby PV

Can Be Averaged (4,000 PV Average)

Q12 Month

Sep 2012 Q 4,000 Yes Yes

Oct 2012 9,000 No Yes

Nov 2012 9,000 No Yes

Dec 2012 Q 4,000 Yes Yes

Jan 2013 Q Q 3,000 N/A Yes

Feb 2013 9,000 No Yes

Mar 2013 Q 4,500 Yes Yes

Apr 2013 Q 4,500 Yes Yes

May 2013 Q 5,000 Yes Yes

Jun 2013 7,500 No Yes

Jul 2013 Q Q 2,300 Yes Potential

Aug 2013 Q Q 2,500 Yes Yes

Note: Additional volume over qualified new leg from March, April, and May was applied to July to make it a Q12 month with a minimum of 4,000 over one new leg. (Averaging not allowed over 2 new legs, but is allowed over one, so a minimum of 4,000 was needed.)


EMERALD/DIAMOND EXPANSION AWARDS

Q. Are new Emeralds and Diamonds eligible to participate in the Emerald and Diamond Expansion Q Leg Rewards?

A. Yes!

Q. What are Qs? A. A “Q” is a qualified in-market 25% month in your frontline (1 Q per leg). Expansion Awards and Q12

Platinum Plus for Emerald Pins require Qs for qualification.

Q. To earn a Diamond Expansion Bonus of $100,000 requires a minimum of 54 Qs plus 4,000 PG/Ruby side volume. Does it also require an IBO to be an in-market Founders Emerald with at least 3 qualified in-market 12-month legs?

A. Yes. Q. Do my international legs count for Emerald/Diamond Expansion Awards? A. No. The 2013 GI Program rewards growth in North America, therefore only in-market legs count.

Q. How much money can I earn if I average 7,500 PG/Ruby PV side volume, have 3 in-market 12-month legs, and have 36 Qs?

A. You could earn $50,000 from the Emerald Expansion Awards program.

Sep 2012

Oct 2012

Nov 2012

Dec 2012

Jan 2013

Feb2013

Mar 2013

Apr 2013

May 2013

Jun 2013

Jul 2013

Aug 2013

QCount

PG/Ruby PV 5,000 7,500 7,500 7,500 8,000 7,500 7,500 7,000 7,500 7,500 7,500 10,000

Leg 1 Q Q Q Q Q Q Q Q Q Q Q Q 12



Total 36

Sep 2012

Oct 2012

Nov 2012

Dec 2012

Jan 2013

Feb2013

Mar 2013

Apr 2013

May 2013

Jun 2013

Jul 2013

Aug 2013

QCount

PG/Ruby PV 6,000 7,000 7,500 7,500 7,500 7,500 7,500 7,500 9,500 7,500 4,000 11,000



Leg 3 Q Q Q Q Q Q Q Q Q Q 10

Leg 4 Q Q Q Q 4

Leg 5 Q Q Q Q Q Q Q Q 8


Leg 7 Q Q Q Q Q Q Q Q 8

Leg 8 Q Q Q Q Q Q 6

Total 72

Q. How much money can I earn if I have 6 in-market legs with at least 3 of them having 12 qualified months, 72 Qs and 7,500 PG/Ruby PV each month on average?

A. You could earn $200,000 or more from the Expansion Awards program. If the 72 Qs include 6 new Qs over last year’s Q baseline, you could earn $250,000.


Q. If I have a leg qualify with Volume Equivalency, does that count for 10 or 12 Qs for the Expansion Awards?

A. While a leg qualifying with VE counts as a 12-month leg toward your Founders qualification, only the actual number of Qs earned will be counted toward your Emerald or Diamond Expansion Awards (maximum of 10 or 11). In this case, you would count the Qs from any additional legs outside of your 3 Founders Emerald legs.

VOLUME EQUIVALENCY – EMERALD EXPANSION – NOT QUALIFIED

VOLUME EQUIVALENCY – EMERALD EXPANSION – QUALIFIED

Sep 2012

Oct 2012

Nov 2012

Dec 2012

Jan 2013

Feb2013

Mar 2013

Apr 2013

May 2013

Jun 2013

Jul 2013

Aug 2013

VE QCount

PG/Ruby PV 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500



Leg 3 Q Q Q Q Q Q Q Q Q Q Y 10

Note: This IBO will not qualify for an Emerald Expansion Award. Although he has 3 12-month in-market legs, he does not have 36 in-market Qs.

Total 34

Sep 2012

Oct 2012

Nov 2012

Dec 2012

Jan 2013

Feb2013

Mar 2013

Apr 2013

May 2013

Jun 2013

Jul 2013

Aug 2013

VE QCount

PG/Ruby PV 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500




Leg 4 Q Q 2

Note: This IBO will qualify for a $50,000 Emerald Expansion Award because he has 3 12-month in-market legs and 36 total in-market Qs with the fourth leg providing the two Qs needed to cover leg 3, which qualified using Volume Equivalency.

Total 36


DIAMOND EXPANSION

Q. If I have the sufficient number of Qs for Emerald or Diamond Expansion Awards, but fall short of the side volume needed one or more months, can I average the side volume needed to qualify?

A. Yes. See the chart on page 7 of the 2013 GI Brochure for the equivalent annual amounts.

Q. Does a 12-month leg have to have a Platinum in depth? A. No. While it’s always good for the stability of the leg, it is not required in the 2013 GI Program.

Q. Is it true that an IBO qualifying for a Diamond Expansion Award requiring a minimum of 72 Qs can qualify with eight North American FAA Points in lieu of the 72 Qs?

A. Yes, as long as the baseline and all other Expansion Awards requirements are met.

Baseline requirements are: 1) Monthly, attain 150 Personal PV, 50 of which comes from qualified customer PV (QCPV), and 2) Complete six training credits.

Note: Both the 150 Personal PV and the 50 QCPV can be averaged. Annual amounts required are 1,800 Personal PV and 600 QCPV.

Sep 2012

Oct 2012

Nov 2012

Dec 2012

Jan 2013

Feb2013

Mar 2013

Apr 2013

May 2013

Jun 2013

Jul 2013

Aug 2013

VE QCount

PG/Ruby PV 2,500 2,500 4,000 4,000 2,500 7,500 7,500 7,500 2,500 7,500 7,500 4,000




Leg 4 Q Q Q Q Y 4

Leg 5 Q Q Q Q Q Q Q Q Y 8

Leg 6 Q Q Q Q Q Q Q Q Q Q Q Q Y 12

Leg 7 Q Q Q Q Q Q Q Q Y 8

Leg 8 Q Q Q Q Q Q Y 6

Note: This IBO will qualify for a $150,000 Diamond Expansion Award with 3 12-month in-market legs, 72 in-market Qs, and an average of 2,500 Ruby PV. If 6 of the 72 Qs are new since last fiscal year, this IBO could earn an additional $25,000 for a total of $175,000.

Total 72

Q. If an IBO ends FY 13 with fewer Qs than their baseline from FY 12, can they still earn a lesser expansion award?

A. Yes, as long as they meet the side volume and Q leg requirements for that specific award level. See Expansion Awards chart on page 7 of the 2013 GI Brochure.

BUSINESS CONFERENCE QUESTIONS

Q. Who can qualify to attend the Achievers trip?A. All IBOs who receive a Q12 Cash Award and all qualified Sapphires and above are eligible to receive

an Achievers invitation. IBOs who qualify 10 or 11 Q12 months and have a total of 90,000 PG/Ruby PV can also qualify for Achievers. (Trip only)

Q. Will Founders Platinums receive an invitation to the Achievers trip? A. Founders Platinums who receive a Q12 Cash Award are eligible to receive an Achievers invitation.

FOR IBO USE ONLY. NOT FOR USE WITH PROSPECTS.

©2012 All rights reserved. Printed in the USA. 45729ENC

Amway Independent Owners (IBOs) can be recognized and compensated by Amway in a variety of ways.

The Amway Independent Business Owner Compensation Plan (Amway Plan) offers monthly and annual bonuses that IBOs can earn in accordance with their contract with Amway. IBOs also may qualify for Amway Business Incentives (ABI) – a collection of discrectionary programs separate from the Amway Plan and that can vary from year to year. IBO eligibility for ABI programs is at Amway’s discretion and based on conduct that demonstrates high ethical and business standards aligned with the goals and objectives of Amway and its related businesses. These standards require that:• an IBO’s conduct must not negatively affect the reputation of Amway, its related businesses,

or IBOs affiliated with Amway and its related entities;• an IBO complies with the letter and spirit of the Rules of Conduct, laws, and regulations in any

market the IBO has a presence, and demonstrates cultural sensitivity given market conditions; and • an IBO doesn’t defend or support the conduct of others who don’t comply with this criteria.

2013 growth incentives program faqs -...

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