Amway MLM Business Plan

Amway Business Plan 2020

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Amway is one of the topmost network marketing company. In fact, the products of Amway are used in every second household. Almost everyone has heard about these products.

All the products made by Amway are manufactured keeping in order to match the International standards in an organic way. The focus is to always stay organic.

Amway is known to make some of the best products in the world. It is at present offering more than 450 products in not just one or two countries but more than 80 countries.

The company came to India in the year 1998 and was at that time doing its business with only six products. People who joined the company at that time are billionaires today. Since that time, this company has been successful in gaining more and more popularity with every passing year.

People have earned a lot of money by working for this company. Today, there are so many people waiting to join this company and participate in network marketing.

All the people who work at home, the unemployed people, working professional and students who are a member of this company are earning thousands of rupees by not doing much work.

There was a time when one had to pay some money to join this company but now you can just start your business after you buy one product.

Amway Business Plan:

Here we have listed the business plan of the company Amway to help you gain better clarity on how your business will work. First and foremost, let’s understand this.

When you buy a regular product the normal cycle that goes on is the product is manufactured in the factory the goes to the regional dealers then reaches the retailers than the customers(you). This is the smallest ladder in any company. There are many people involved in this process until the product finally comes to you.

The working of Amway is a bit different now. Amway business owners have the right to sell products at every level.

Amway -> ABO -> Customer

If the product comes out of the Amway factory for rupees 12 then in how much money do you think it is prepared and what will be the quality of it? In this, the company will give all the ABOs a commission of 8% and all the products will be manufactured with a state of the art equipment. Further income keeps getting added to your account once you add the second ABO in your business.

In this company, the performance of an ABO depends on PV (Product Value) and GPV. Now you must be thinking that what is PV and GPV?

Amway PV (Product Value):

The product value is the MRP a product has. According to the business plan of Amway, 1 PV is equal to 96 Rupees. For Example, if the price of a product is 480 rupees, then you will get 5 PV. So your commission is set on the basis of Product values (PV). Here is the table to better understand the commission level.

This table shows the commission based on the product volume or the PV which is assembled for a month or a year. GPV is known as the group product value. This means that the difference is also added to the commission of the ABO.

Amway BV (Business Volume):

BV, the business volume is the amount on which your commission will earn depend. According to the rules of Amway today, the amount of 1BV is 80 rupees. Earlier it was 76 rupees and but after the GST it has become 80 rupees.

Amway ABO Commission:

If you are an Amway Business Owner, then you get a chance to earn a lot of commissions. If you are ABO and buy a product then you are given the first wholesale commodity at 8% discount at the present time, i.e. On the MRP, you will get the product at 4-8% lower rate (GST has been reduced to 4-7%, which was earlier 8%). To add to the commission, we will consider it 5% on an average.

Based on the PV, your commission will be sent to you on the 15th of every month by Amway. Let us further understand this with an example.

Since the time GST has happened Amway has made some changes to its business model. In these changes, a cashback has been added. Those business owners who have 100 PV or more in a month will be given a cashback of 7%. This has been done because, after the arrival of GST, the distributor commission had to be reduced, so that no loss occurs to ABO. So in this way, since the arrival of GST, all ABOs have benefited.

Let’s say you have 100 PV products in a month, then after that whatever you points you keep adding will like an added bonus. it. When you buy these products, you will get a wholesale discount of 8% everytime.

Wholesale discounts 5% (100 pv x 80 x 5%) = 400 Rs

Cashback Discount 7% (100 pv x 80 x 7%) = 560 Rs

Monthly commission 6% (100 pv x 80 x 6%) = 456 Rs

Total Commission = 1416 Rs

This is your commission which you will get after you put in hard work but it is not just limited to this. Amway gives you more chances to earn money. When you add any other person in the Amway family, you get a commission and whenever that member makes a purchase, he is also given a commission. A commission of this kind is called differential commission.

Now the differential commission is added from in this way. Let’s believe that you have added five members to Amway, and your friends have either sold or bought collecting 100 PV. Now you have 100 PV and your GPV is  600. 600 PV is earned at a 9% level, you will subtract your differential level from your GPV level. The way to earn a differential commission is:

Wholesale discounts:  8% (100 pv x 80 x 5%) = 400 Rs

Cashback Discount: 7% (100 pv x 80 x 7%) = 560 Rs

Monthly commission: 9% (100 pv x 80 x 9%) = 720 Rs

Differential Commission (9-6): 3% (500 pv x 80 x 3%) = 1200 Rs

Total Commission = Rs 2880

This is the differentiated commission of only level. You can keep adding to it as much as you want to and earn more differential commission.

More the number of ABOs you make, the more benefits you are going to get. On the basis of this Monthly Performance, Amway declares you Silver, Gold, Platinum, Emerald and Diamond Member. We hope this article on Amway Business Plan was helpful.

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