Sales and Distribution

Group Members

 Rahul Joshi

 Kalpesh Kulkarni

 Ashwin Kalra

 Tarveen Kalsi

 Latika Chopra
 Started in US in 1959 with 1 product
 Global turn over of Rs.30000 crs.
 Debt free company
 Largest direct selling company of the

world
 600 patents, 450 products
 100% money back guarantee on products
 32000 product training session each yr
 The Amway opportunity foundation

supports more that 800000 visually

impaired children
 31 products in four categories:
Home Care,
Personal Care,
Nutrition & Wellness
Artistry.
 Third Party manufacturing
 7 manufacturers in India, largest being Sarvottam
Care, Baddi.
 4 main regional warehouses
Bangalore
Kolkata
Delhi
Mumbai
 55 smaller warehouses across 4000 towns and
cities
 130 offices
 5,00,000 Amway Business owners (ABO)
 Raw Materials

Amway Manufacturing and Distribution

ABO’s

End Consumers
 MANUFACTURER
MANUFACTURER

STOCKIST
DISTRIBUTO
R
WHOLESAL
ER CUSTOMER
RETAILER

CUSTOMER

PHYSICAL INTELLECTUAL
 Amway globally follows a combined strategy
of direct selling and multi-level marketing for
distribution.
 Every ABO becomes a part of Amway’s
distribution network.
 Amway business owners can earn income and
other incentives in a variety of ways.
 They fall under the categories of:
Retail Markup,
Volume Rebates,
Leadership Bonuses and
Higher Awards and Incentives.
 Amway

ABO 1

END
CONSUM SPONSO
ER R
ABO 2

SPONSO
END
R
Every ABO & Sponsor CONSUM
ER ABO 3
has to register with
Amway
 ABO’s can buy products directly from
Amway at wholesale prices and sell
them at retail prices directly to
customers or add a mark – up and sell
them to other ABO’s. the difference is
earned by the ABO.
 The retail mark–up for Amway is 20%
 Rebate
PV BV (% of
BV)
 Every product is allocated a 10,000+ 5,00,000 21%
Point Value (PV) and a
7,000 3,50,000 18%
Business Volume (BV). The
PV is used to calculate the 4,000 2,00,000 15%
rebate percentage earned. 2,000 1,00,000 12%
 The BV is usually close to the 1,000 50,000 9%
wholesale price of the
product less any sales tax. 300 15,000 6%
 The rebate paid is 1PV = 50 BV
calculated by multiplying the
PV rebate percentage by the
Approximately every family requires
total BV. products equivalent to 100
PV per month.
 Let’s presume that you have 2 friends, who are interested in
buying Amway products and you make them your customers. So
in order to meet the monthly requirements of your own along with
your friends you can easily sell products worth 300 PV.

You
Personal use Total sale 15000
100 PV

Retail profit 3000

margin @
20% of
Customer1: Customer 2 personal sale
Sale:100 PV Sale:100 PV Commission 900
earned 6% of
total BV
300 PV = 15000 BV Total amount Rs.3900
6 % Rebate On final earned
volume
 Let us now take another example of you having sponsored 4
persons as Amway Business owners and each of you doing a
business of 300 PV i.e. purchasing Amway products worth BV of
15,000 eachA
Sale:
Total Sales 75000 BV
300
Turnover of the
PV
group
Total Performance Rs. 6,750 (X)
Bonus earned by
You group
is 9% of 75,000 BV
Sale Performance Bonus Rs. 3,600 (B)
:300PV paid to your down
lines A, B, C & D
A [6% of 60,000 BV
A Sale:
Sale: (turnover of down
300 Bonus paid to you
lines)] Rs. 3,150
300 A
PV (X - B)
PV Sale:
Retail Profit margin Rs. 3,000
300
@ 20% on personal
PV
volume
Your Total Earning Rs. 6,150
Total sale : of the month
1500 PV =75000 BV = Rs. 3,000 + Rs.
3,150 =
 Performance Bonus
 Commission
 leadership bonus

4 % leadership bonus for a sponsor

whose down lines have become direct
distributors.
 Recognition levels

Silver
Gold
Platinum
Diamond. etc
 Amway
Lead Organization. Head Office in USA

Regional Affiliate Organizations

e.g. Amway (UK and Ireland)

100% Money-back Guarantee

IBO’s

End Consumers
 Payment Mode -
Account payee
cheques drawn in
favor of Primary
Applicant/Entity
only
THAN
K YOU