Amway India New Business Plan 2017

By | August 9, 2015

Amway India New Business Plan is announced and is effective from 1st August 2017. The minor change to the old plan which is effective from September 2015 may influence the new business builders positively.

The 12% performance bonus slab is being replaced by new 11% and 13 % slabs. The 12 % slab was present ever since Amway started its operation in India.

500 PV is needed to achieve  9% slab which is the predecessor to the 12 % . One need to do 1500 PV to achieve 12%. That is an ABO has to triple his business volume to move to next level.

To achieve 15% slab from 12%, one has to do 4000 PV business volume which is also nearly  three times of the 12 % slab.

Amway studied this difficulty and removed the age-old 12 % slab and introduces two new slabs namely 11% and 13%.

PV value for 11% is 1200 and 13% is 2400 which reduces the vast gap which could translate in to a measurable and achievable goal.

The new effort index is 1:78 that is 1 PV is equal to Rs.78 of Net sales Value.

If you want to know about the old plan and other details you may read further.

Amway India Enterprises has changed its basic business plan which will put more money into the packets of newcomers or people who give little volume. It comes into effect from September 2015. It is seen as a historical move by industry experts.

The Amway India New Business plan rewards through many types of bonus of which Performance Bonus is the basic and important one. This is given on the turnover given by an individual and his team. So far the Point Value(PV) slabs are 300, 1000, 2000, 4000 ,7000 and 10000. The business value (BV) is calculated as 1 PV = Rs. 76/- as of now. The incentives for those PV slabs  are 6%, 9%, 12%, 15%, 18% and 21% respectively.

Apart from retail income, if a distributor wishes to earn the performance bonus, he has to make a sale of approximately Rs. 28500/- ( 300 PV) in that particular month either individually or with a teaNew PV Slabm. This was bit tough for those who does the business in their spare time. This resulted in attrition of the recruited people.

To maintain attrition, it is wise to put more money in the packets of newcomers. Noted this, Amway found an answer in Amway India New Business plan 2015 by the way of slashing the PV slabs which throws easily achievable goals. They reduced the PV slab of 6% from 300 PV to 100 PV , 9% slab from 1000 PV to 500 PV and 12% slab from 2000 PV to 1500 PV. All other upper slabs remain unchanged. This clearly shows the company’s focus is turning in nurturing new comers.

By doing just 100 PV ( Approx. value Rs. 8500 ), a new distributor can now easily achieve the foundation PIN 6%. They have also decreased their first and second purchase offers for new comers from 100 PV to 50 PV.

By November 2015, they have introduced Preferred customer program to the Amway India New Business plan which will benefit both distributors and customers.

With effect from August 1, 2016, Amway has made few important changes to the segmentation policy which differs ABO and customer.

They are,

  • ABO’s who had not submitted their bank account and didn’t make any purchase/sponsoring in the past 12 months will be converted as PC and their LOS will be realigned to his sponsor ABO.

Final_Segmentation_Changes-page-003

 

  • Any ABO, to receive differential commission, has to have 3 buying PC’s in that particular month. If not, the commission will be passed to the next qualified ABO in his Line of Sponsorship.Final_Segmentation_Changes-page-002
  • Any ABO who does not earn any commission (either differential or from personal purchase) in at least one month of last 12 months, will be converted to preferred customer. He will also lose his LOS.
  • For any new ABO, to maintain his ABO status, need tFinal_Segmentation_Changes-page-001o have at least three PCs registered by him within 90 days of registration.

Their state of the art manufacturing facility at Nilakottai near Dindugal, Tamilnadu has begun production by December 2015.

Also Read Preferred customer program from November 2015

 

26 thoughts on “Amway India New Business Plan 2017

    1. Vijay Post author

      No change in trade discount. On margin, lets wait for New MRP after GST.

      Reply
  1. Dhirendra

    If an old ABO GETS CONVERTED to PC ,then he/she can get converted to ABO again in old criteria ……………………………….Will he/she can again converted to ABO…………………..if didnt get any commission………in 12 months……….?

    Reply
  2. Dhirendra

    Every person who joins as ABO in AMWAY should forever be an ABO instead of making them a Preferred Customer if the criteria not fulfilled completely…….& for life long an ABO should be allowed to purchase goods from AMWAY as an ABO…………………….It will encourage them……………..in this busy life…………

    Reply
  3. Dhirendra

    Every person in todays life is Busy……………So frequent changes in the Amway Plan like PC & ABO criteria etc. always hampers the people associated with AMWAY………..

    Reply
    1. Vijay Post author

      I am expecting something by September 2016. Let’s wait and watch…

      Reply
    1. Vijay Post author

      Yes, if there is any differential commission. There is no mandatory minimum PV requirement. But watch out for preferred customer rule which is yet to be implemented. If implemented, you need to have minimum three buying preferred customers in that commission month to receive commission.

      Reply
  4. ASTHANA

    Is Amway still a network marketing model in India? What has changed?

    Reply
  5. kathpalrishu

    every month zero business of amway according to many other compnaies like vestige flp etc there is some discrepency in amway plan

    Reply
    1. Vijay Post author

      Even small time retailers like flower merchants close their business daily and start from Zero next day. Every business in the world does so either daily or monthly as per their business structure.

      I don’t think its a problem and Amway does so in more than 100 countries and territories for more than 60 years and they are number one in the world.

      Reply
  6. s k sahu

    I want to know benefits of part time business with amaway and approximate income and rules regulations and other information

    Reply
    1. Balwant singh deo

      U can join the amway business Owner with no cost then u can buy many different products as per your choice which are like daily needs, cosmetics , food supplyment etc. Whenever your license no active thought the amway then you are also join or give the license other people

      Reply
    1. Vijay Post author

      6% with 100 PV will give approximately Rs. 460. This is excluding trade discount if any.

      Reply
  7. sibapatii

    Came to know that an IBO is bound to make 3 customers a month. Is it true?

    Reply
    1. Vijay Post author

      Thanks for asking. As of now there is no such rule. But, by November 2015, the company may launch preferred customer program. By then another modification in basic plan is expected. Let’s wait and watch.

      Reply
  8. shailja joshi

    Enter your comment here…thanks for quick response I want to learn bus.plan Plz help me

    Reply

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