Amway Best Practices

Best Practice Messages

MESSAGE 1:

One of the fundamentals for building a balanced business is adopting a smart approach to your inventory, if you have one. Amway helps IBOs adhere to Best Practices for moving and using products through its 70% rule to receive bonuses and recognition. This practice, explained in greater detail in the Amway Rules of Conduct, specifies that you must sell or use at least 70% of the products you purchase each month in order to be eligible for bonuses or recognition on the volume.

For many, this rule probably seems like a no-brainer. But the idea behind the 70% rule is simple: it’s a measure to help keep IBOs from overstocking inventory and overextending themselves financially that could result in volume to qualify for bonuses and recognition.

While this might sound like a plan for reaping the rewards of the business for some IBOs, it ends up hurting sustainability and growth, not to mention personal finances. After all, the goal of an IBO business isn’t just to reach a certain qualification—it’s to make money! Maintaining a reasonable inventory if you choose to have one is an important key to success in both regards.

The 70% rule is not intended to discourage IBOs from purchasing product—and it certainly doesn’t mean that you can’t purchase a reasonable amount of inventory to have on hand to service your customers or for personal use. It simply is a way to ensure that products are moving and being used and to help IBOs develop savvy inventory practices to help achieve maximum profitability.

We hope this Best Practices message helps as you continue building your balanced business and achieving your dreams. Remember, you’re in business on your own, but you are never alone. Your upline, the IBOAI and Amway are here to assist you with what you need to help succeed. We’re here to support you in making people’s lives better.

MESSAGE 2:

For your balanced business to grow and thrive, you should be committed to recruiting IBOs into this extraordinary business opportunity. But Best Practices make it clear that all IBOs need to honor the lines of sponsorship. It is against the Amway Rules of Conduct to “solicit, interfere, or attempt to induce, suggest, directly or indirectly, another IBO to request a change to another Sponsor or Line of Sponsorship” (4.15 Enticement to Change Lines of Sponsorship).

When you encounter IBOs from different lines of sponsorship, it is best to wish them well in their endeavors to build their businesses, without trying to convince them of how much better your group would be for them. In some cases, another IBO may approach you about changing sponsors in the Line of Sponsorship to join your group. In these situations, it is best to take the information upline to be sure it is handled appropriately.

Remember that protecting the lines of sponsorship works both ways—it protects others and it protects you. And it allows you to focus on building your business and growing your success in a sustainable way.

We hope this Best Practices message helps as you continue your commitment to running your business by the highest standards. We want more people like you in our group, so keep looking to share the AMWAY™ business opportunity with those you meet. Not only is it rewarding for you, but you can help others achieve their goals and dreams, too.

We’ll be sharing Best Practices messages each month, so keep an eye out for them. Please feel free to contact [me (sender)/other contact] if you have any questions. And in the meantime, keep leading the way—we’re very proud of you and the ways you are building your business.

MESSAGE 3:

As you build your business, you may be discovering that the web—and in particular the AMWAY™ Website—is a great tool for sharing information and managing your business. Best Practices remind us that, as with all good things, there are rules and guidelines that need to be followed to promote positive, value-affirming behaviors and prohibit online activities that can be harmful to the business.

Amway Rules of Conduct spell out appropriate behavior for IBOs using the internet for business:

Activities such as spamming (sending out unsolicited emails promoting your business or making blanket solicitations using social networking tools such as Facebook™ or Twitter™) are prohibited.
If you are using email to communicate with a person about your business, you must have a pre-existing personal or professional relationship with that person.
Conversations about products or the business opportunity on sites such as Facebook must start with another person asking you a question or commenting about the business—not with a blanket solicitation you’ve initiated. These conversations should be kept as personal messages between the two of you.

It is also important to remember that the Rules of Conduct prohibit IBOs from advertising online or operating unauthorized websites; any website created to represent your business must be approved by Amway. This is the same requirement as for any other business materials created to promote your business or products. While there are a few exceptions for advertising online, IBOs who wish to do so must submit a written proposal and a copy of the ad to Amway for approval.

For the IBOAI’s summary of online rules, go to http://www.iboai.com/Resources-BestPractices-OnlineRules.asp.

These online rules are necessary to protect and promote the person-to-person nature of this business. Spamming and other unsolicited e-communications are often seen as unsavory and bothersome by recipients and in some cases may violate the law. When you know the people you are in contact with and have their permission to contact them, you are less likely to turn prospects off.

Remember, keeping it personal makes business better.

MESSAGE 4:

This month’s Best Practices message is a short reminder of the importance of retailing for building a balanced business.

When promoting the AMWAY™ business, it is important to be absolutely clear that the business is not a wholesale buying club—and it should not be promoted as one.

IBO success depends on building a balanced business. You can do this by focusing on the three “R’s”—

Retail our exclusive brands and premier products to more customers,
Recruit more IBOs into this extraordinary business opportunity who do the same, and
Retain more IBOs in this business through unwavering support and coaching

Selling Amway products is a critical and required component to an IBO’s business. No money can be earned in the Amway business without sales of products. Our nutrition, wellness, beauty, and home products are known for their innovation and high quality, helping you sell more. As your product knowledge increases, you’ll discover people all around you who need what you have to offer through your business. Retail selling is the fastest way to make money through your business.

MESSAGE 5:

Building a successful business depends on doing a lot of things well—including planning, organizing, marketing, and connecting with people—but perhaps none is more important than selling products. Regulators consider selling products to end user customers one of the critical attributes of a legitimate multilevel marketing system. In the Amway business, no one makes any money unless products are sold to end user customers. It is important to understand how this works. Best Practices outline key requirements and guidelines to ensure that retailing—selling products to customers—is a key component of every IBO business.

The Customer Volume Requirement (CVR) applies to IBOs who have not yet reached the Platinum level. To earn a bonus on sales volume made by downline IBOs during a given month, these IBOs must:

Have at least 50 PV in sales to any number of retail customers

Make at least one sale to 10 different retail customers

We have exclusive lines of products that are priced competitively, offer great value and can be easily marketed to customers. And we continue to make it easier to complete and track your sales. While IBOs are only required to achieve CVR for bonus payments on downline volume, we recommend that all IBOs use Customer Sales Activity (CSA), or Auto-Capture. These are helpful tools for keeping track of customers. (Sales are considered Auto-Capture if customers purchase on the AMWAY or personal retail websites on their own, or if you purchase for them using their customer ID numbers. CSA allows you to report sales.) CSA or Auto-Capture is needed for participation in company incentives and promotions (e.g., Fast Track Incentive Program rewards and the Growth Incentives Program).

When IBOs share the Plan with customers and prospects, they must always discuss the importance of selling products. It is not acceptable to present the Plan without emphasizing the sale of products.

MESSAGE 6:

With Amway, you’re in business on your own, but you are never alone. Your upline, the IBOAI and the Corporation are here to assist you with what you need to help succeed. For many—especially IBOs whose background is not in business—an important key to success are professional development resources. These resources, known as Business Support Materials (BSM), are helpful tools for providing optional training and motivation to IBOs, an important part of any sales-driven organization.

Amway, together with IBO leaders, is committed to making sure that every IBO has access to BSM that reflect the values of Amway: Partnership, Integrity, Personal Worth, Achievement, Personal Responsibility, Free Enterprise. Best Practices ensure that BSM are offered appropriately to IBOs. Along with Amway, there are Approved Providers of Business Support Materials. This is to ensure that all BSM comply with quality assurance standards.

It is important to remember that purchasing BSM or tickets to training events is always optional and must be positioned as such. Only registered IBOs may purchase BSM, and no one may state or imply that buying BSM or attending an event is required to become an IBO or to be successful as an IBO.

To allow IBOs to try building successful businesses with BSM without risk, Amway requires sellers of BSM to maintain a buy-back policy. Buyers of BSM are entitled to 180-day buy-back from the seller of BSM if they are not satisfied with their purchase. Those who buy tickets to functions have a 30-day satisfaction guarantee on the purchase price of the ticket.

There are also restrictions on purchases of BSM in the first 90 days by new IBOs. An IBO who chooses to purchase or sell BSM must ensure that the quantity and cost of BSM are reasonably related to sales volume and profits of that IB. In addition, IBOs in their first 90 days may return all BSM purchased in any form, including meeting tickets, with proof of purchase, for a full refund of the price paid for each BSM.

It should always be made clear that use of these resources do not guarantee success. What worked for one person may—or may not—work for another. And there is no such thing as a “magic bullet” approach to building a business. No one ever built a successful business without putting in time and effort.

For those who are committed to putting the time and energy in their Amway businesses, BSM can be important resources to help build a balanced, successful business and attaining goals.

MESSAGE 7:

With as many different reasons for choosing the AMWAY™ business opportunity as there are IBOs, it’s important to remember that we all share a bottom line—we’re in business to make money. This Best Practices message is intended to help you when talking to others about the income potential offered by an AMWAY business.

Money may not be your only goal. Many people choose this business because it involves helping other people, reaching out and connecting to them. It is a business opportunity that can be pursued with a spouse or other family members and friends. And every IBO may have different expectations for the amount of money he or she would like to make. For some, it might be enough to pay for children’s summer camps. For others, it may be to earn enough for a spouse to quit a job. And for others, it may be to have extra spending money each month.

No matter the differences, ultimately, the bottom line—making money—is important.

So how do we talk about it with prospects? There is great income potential with this business, and it can be easy to get overly excited in explaining it to others. Truth and accuracy are of utmost importance whenever we talk to others about the income potential of an AMWAY business. Best Practices ensure that prospects receive helpful and, in some cases, legally required information so that they understand the effort and potential associated with the business and are not oversold.

When talking about earnings with prospects, we can talk about how much we personally make in Amway income, or use authorized earnings representations provided that the required income disclosures are used where applicable. We also can share the annual numbers for the overall business (such as sales and the amount IBOs collectively earned in bonuses and incentives). It is important to remember that even implying that any of us personally earn more than we actually do is unacceptable. Telling someone that he or she can earn large amounts of money just by working a few hours a week also is unacceptable.

We all know that it takes time and effort to build a successful and profitable business—it’s not something that can be done in a flash with a minimum amount of work. Building a successful business is challenging, and an achievement to be proud of. It should always be represented as such. Portraying it as something that doesn’t require much effort does a disservice to prospective IBOs by setting them up with false expectations. It also minimizes the work of those who have built strong businesses and exposes you, your organization and Amway to potential legal claims that the business is being misrepresented.

The AMWAY business, as it is, is a great opportunity. There is never a need to oversell it. Many of us have accomplished more than we had ever believed possible. We know the same can be true for current and prospective IBOs.

MESSAGE 8:

As you’ve discovered, AMWAY offers the best business opportunity in the world—and it is open to anyone in the world. We are attracting new IBOs from diverse backgrounds; many are younger, and from different races, religions, and nationalities. Our Best Practices make it clear that acceptance of others is a crucial part of our business.

Regardless of backgrounds, where we live or who we vote for, this business can help each of us achieve our goals and dreams. And just as we are committed to supporting people who want to run their own businesses, we’re also committed to acceptance. There’s room for everyone in this business—no matter how different we may be in our religious beliefs, political affiliations, or other viewpoints and opinions. It’s part of what makes our business strong and successful.

It’s especially important to be mindful of this during business meetings, where there is a tendency to share personal beliefs with others from the stage. While it is fine to talk about how important our beliefs are in our own lives and how they’ve helped us build our businesses, it is not acceptable to say that other IBOs need to believe the same thing.

The one common belief that team members should share in is the power of this business and a commitment to building our businesses in the right way. Our differences can provide a broad and strong foundation for growing the AMWAY™ opportunity.

MESSAGE 9:

We can think of many great reasons for becoming an IBO—and many wonderful benefits to talk about with prospects who are considering launching their own businesses powered by Amway. Our Best Practices specify that while we can share many benefits as motivation for becoming IBOs, we cannot encourage people to start their own businesses purely for tax benefits.

The Amway IBO Compensation Plan (“Plan”) offers a great opportunity to make money, own a business, meet new people, and use and sell premier products.

The Plan is not meant to be a source of tax benefits or relief, and it should not be confused with unscrupulous tax avoidance promotions. It is a violation of Amway Rules of Conduct to promote tax benefits to prospects as a principal reason for becoming an IBO.

While there are provisions in tax laws that assist small business owners, no one should encourage a prospect to start an AMWAY™ business in order to be able to deduct various personal living and travel expenses from his or her income. The tax laws are in place to help those who operate their businesses with the honest objective of earning a profit—not as tax shelters. In those cases, and with proper record-keeping, IBOs can deduct most ordinary and necessary expenses incurred in the operation of their businesses. The IBOAI website contains some resources that IBOs may find helpful in this connection. However, you should consult a qualified tax advisor (preferably a CPA/CGA) for specific guidance about your personal situation.

MESSAGE 10:

You know how important it is for somebody you are sharing the business with to see the whole picture of what the opportunity offers. It helps the person you are sharing the business with to make an informed decision, and it helps you determine how to focus your time and energy. Best Practices support this by requiring that you share the AMWAY Business Opportunity Brochure (ABOB) whenever you also share the Amway IBO Compensation Plan (“Plan”). In fact, any time we tell somebody that they can make more than the average monthly income of “active” IBOs reported by Amway ($115 in the US / $181 in Canada), we must disclose the average. This is required to comply with requirements by the FTC. The ABOB provides this information, and much more about the business opportunity.

If you are giving a general overview of how the business works, without sharing the Plan, it is not required that you also provide the brochure

You can find a copy of this brochure in the Resource Center at Amway.com.

MESSAGE 11:

Many, if not most, of us have been on the receiving end of questions about whether our business is a pyramid. It can be a hot topic. The answer is an unequivocal NO—pyramid businesses are illegal. Amway is committed to maintaining the highest standards in business. This month’s Best Practices message is intended to help clear up any misconceptions related to Amway and pyramid businesses.

There are certain characteristics that mark illegal pyramids:

Payment of head-hunting fees, i.e., money is earned just for recruiting others and not from sales volume;
Minimum purchase requirements to participate; and / or
No sales of legitimate products or services to those outside the organization.

The AMWAY™ business opportunity is distinctly different from an illegal pyramid. Here are a few of the most important qualities that distinguish us from a pyramid:

There are no head-hunting fees involved—ever. No one earns money just for registering new IBOs.
We also have no minimum purchase requirements to register as an IBO. While there is a registration fee (common for direct-selling companies), the purchase of product is entirely optional, though it is recommended in order to learn about the products.
And perhaps most important—no one ever earns money in an AMWAY business until product is sold.

In fact, Amway standards like the Customer Volume Requirement (CVR) are intended to encourage the sale of product. The CVR, for example, requires that IBOs who haven’t reached the Platinum level must generate at least 50 PV worth of sales to any number of retail customers or make at least one sale to 10 different retail customers in order to earn a Performance Bonus on downline volume. The bottom line is that selling products is imperative to the success of each IBO business and the overall AMWAY business.

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