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.
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 team. 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.
- 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.
- 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.
- 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 to 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.