Amway Pin level Income
Amway gives various types of income like Retail profit, Performance Bonus, Leadership Bonus etc to its distributors. To a starter, what matters most is the retail profit and performance bonus. Lets see them in detail and also Amway pin level income for higher level pins like Platinum, Emerald and Diamond.
Amway’s official video claims their Founders Diamond Pin’s average income in the year 2012 was Rs. 58.63 Lakhs.
It is the difference between the two prices MRP and DAP (Distributor Acquisition Price). The distributor buys at DAP and sells at MRP and make 10% margin out of this transaction.
For all products apart from their great value products like Persona Amla, Coconut Oil, Dynamite Razor and shaving cream, the distributor is entitled for trade discount. For all purchases made in a month, the distributor’s bank account will be credited 10% trade discount on DAP, less applicable taxes.
The retail profit is equal to all pin levels.
Let us see the pin level income in detail.
The company awards 6%, 9%, 12%, 15%, 18% and 21% bonus for the PVs 100, 500, 1500, 4000, 7000 and 10,000 respectively. A distributor will be eligible to receive this bonus if he attains 100 PV or more on his own or with a team in a calendar month.
Let us assume if Mr. A starts Amway business in October 2015 and does 100 PV and qualifies at 6% bonus level. He will get approximately Rs. 450 for a BV of 7600. As of October 2015, 1PV = 76 BV.
In next month, Mr. A sets up 6 sales team and successfully trains them to do 100 PV each apart from his own 100 PV. This month Mr A and his team makes 600 PV, thus qualifies as 9%. After distributing the profits to his team, Mr A will get approximately Rs. 1750.
Assume, in next month, Mr. A trains each of his team to do a sale of 500 PV and closes the month with 3000 PV and qualifies as 12%. Listen, the illustration mentioned here is for better understanding of the compensation plan. In reality, its tough to train to each team to deliver equal performance.
After distributing the commissions to his team, Mr. A will get Rs. 6840 approx.
In next month, Mr. A trains his 6 team to do what he did last month, that is 3000 PV each. Thus as team Mr. A does 18000 PV, qualifies as 21% and gets the Pin SILVER. This is the basic leadership Pin. After distributing commissions to his team Mr. A will get Rs. 1,23,120/- as commission for that month.
If Mr. A maintains a business volume of 10,000 PV or more consecutively for 12 months, he will be called as Founders Platinum.
Amway claims in its official video that average income of a Founders Platinum in the year 2012 was Rs. 6.65 lakhs apart from free foreign trips for the couple and other bonuses.
Average income of Founders Emerald level was Rs. 22.57 Lakhs. A Founders Emerald pin is achieved when 3 different teams of a distributor achieves Founders Platinum level.
Average income of Founders Diamond level in the year 2012 was Rs. 58.63 Lakhs. A Founders Diamond is a distributor who has six different Founders Platinum teams.
Hope this post gives sufficient information. For any clarification, please contact your upline leaders or write us.
Please go through this Amway’s official video for more understanding.