2013 GROWTH INCENTIVES PROGRAM FAQS

Transcription

1 GROWTH INCENTIVES PROGRAM FAQS IBO eligibility for the Growth Incentives Program is at the discretion of Amway and is based on conduct that demonstrates high ethical and business standards aligned with the goals and objectives of Amway and its related businesses. GENERAL QUESTIONS Q. How long will the Growth Incentives (GI) Program be in effect? A. The Growth Incentives Program is reviewed and updated annually to ensure IBOs are being recognized and compensated the right way for doing the right things. Q. What is PG/Ruby Volume? A. PG/Ruby is designated as Ruby Volume on your /BV Inquiry. It includes your Personal plus pass-up volume from downline non-25%, non-platinum legs. It does not include volume from any Platinum whether qualified at 25% or not. 1

2 PG/RUBY VOLUME Illustration Key You IBOs you sponsor/ train/support You You 2,500 PG/Ruby 1,500 PG/Ruby No pass up No pass up IBO A 3,500 PG/Ruby (18%) Platinum IBO B 5,000 PG/Ruby (21%) PG/IBO A 3,500 Ruby (18%) Platinum IBO B 2,500 PG/Ruby (18%) 7,500 PG/Ruby (does not count from nonqualified Platinum) This counts as a Q12 Month 4,000 PG/Ruby (does not count from nonqualified Platinum) This is NOT a Q12 Month 2

3 BASELINE REQUIREMENTS Q. What are the baseline requirements for the program? A. The baseline requirements that must be met to be eligible for annual Q12 and Expansion Awards are: 1) Monthly, attain 150 Personal, 50 of which comes from Qualified Customer (QC), and 2) Complete six training credits. Q. Can my 150 Personal be averaged? A. Yes. You can do 150 Personal each month or 1,800 annually. Q. What is Qualified Customer (QC)? A. Qualified Customer Volume includes auto-captured retail sales to registered customers and CSA-reported retail sales sold from inventory to registered customers residing outside the IBO s primary residence. Q. Do customer orders fulfilled from inventory and reported using the Customer Sales Activity (CSA) Receipt Tool count toward an IBO s 50 QC monthly requirement? A. Yes. Qualified Customer Volume will be used to determine whether an IBO met the 50 criteria. Q. Does the requirement of 50 QC each month apply only for Q12 and Expansion Awards? A. The 50 QC requirement applies to all Growth Incentives (GI) annual bonuses, including all levels of Q12 and both the Emerald and Diamond Q Leg Expansion Awards. Q. How do the training credits work and what s the best way to complete them? A. IBOs must complete six training credits to qualify for most growth incentives by taking online courses, or attending Amway Instructor-led Training (ILT) courses at ACCREDITATION PLUS Program Approved Provider or Amway-sponsored events. Online courses that IBOs complete will automatically be tracked and will show each month on the IBO s GI Program Tracking report online at Amway.com > Business Center > View Business Reports > GI Program Tracking. Q. Who must complete the six training courses? A. All IBOs who wish to earn annual Q12 and Expansion Cash Awards. Q. Will seminars, books, and tapes offered through an Approved Provider count for training credits? A. No. Q. How will I know what Growth Incentives I am tracking for in FY 13? A. You can see all your GI tracking information on your GI Tracking report online at Amway.com > Business Center > View Business Reports > GI Program Tracking Program. Additionally, all Platinums will receive a monthly from their National Account Representative. You may also call your National Account Representative to discuss everything you re tracking for this year. 3

4 FIRST-TIME CASH AWARDS (FTCA) Q. Can an IBO earn more than one First-time Cash Award (FTCA) in the same FY? A. Yes. First-time Cash Awards are cumulative. So, if an IBO earns more than one First-time Cash Award within the same FY, they will receive all awards earned. Q. Are FTCAs for requalifying pins or just first-time qualifiers? A. FTCAs (milestone awards) are for first-time-only qualifications. Q. Are the baseline requirements listed earlier required to earn a FTCA? A. No. Baseline requirements must be met to receive Annual Q12 and Expansion Bonuses. Q. If an Emerald Pin that qualified in FY with 2 North American legs and 1 international leg adds a fourth leg in North America in, thus earning an Emerald Bonus for the first time, will they be eligible for a New Emerald FTCA in? A. Yes. The bonus is intended to reward first-time Emerald Bonus Recipients (EBRs). PLATINUM PLUS/PLATINUM ELITE MONTHLY GI BONUSES Q. Does nonqualified Silver Producer (SP) or Platinum volume count toward the Platinum Plus and/or Platinum Elite Bonus? A. Only nonqualified (non-25%) SP volume counts toward PG/Ruby needed to qualify for either Platinum Plus or Platinum Elite. No Platinum volume counts, whether qualified at 25% or not. Q. If an IBO qualifies with 15,000 PG/Ruby, is it true they can earn a 31% bonus on their Ruby BV? A. Yes. Through the GI Program, Platinum Plus pays an additional 1% on the Ruby BV when the Ruby is between 10,000 and 12,499. Platinum Elite pays 3% on the Ruby BV when the Ruby is between 12,500 and 14,999 Ruby. An additional 1% is paid on the Ruby BV when the Ruby is $15,000 or more. Plus the IBO Compensation Plan pays yet another 2%, or a total of 6%, on the Ruby BV when the Ruby is 15,000 or higher. So, with the 25% Performance Bonus and an extra 6% paid on the Ruby BV, an IBO with 15,000 Ruby can earn 31% on their Ruby BV. 4

5 Q12 GENERAL QUESTIONS Q. What is a new leg? A. A new leg is one that did not have a Platinum qualify in it one fiscal year ago. Q. What is a second-year leg? A. A second-year leg is one that did not have a Platinum qualify in it two fiscal years ago. Q. What are Qs? A. A Q is a qualified in-market 25% month in your frontline (1 Q per leg). Expansion Awards and Q12 Platinum Plus for Emerald Pins require Qs for qualification. Q. If an IBO has a leg that hasn t qualified Platinum since FY 2010, are they considered a new leg in FY, or an existing leg? A. By definition, a new leg is one that did not have a Platinum qualify in it the previous fiscal year. In this case, the last time this leg qualified a Platinum was in FY Since they did not qualify a Platinum in FY 2011 or FY, it will be considered a new leg for FY. Therefore, 4,000 would be required over the new leg to count as a Q12 PG/Ruby month. (See chart below to determine what s needed over the new leg when qualifying for a Q12 Platinum Plus month.) Q. What happens if an IBO has a mix of 1 new leg and 1 second-year leg? What is the requirement then? A. Since qualifying over 1 new and 1 second-year leg is not applicable (must be either 2 new or 2 second-year legs), the volume requirement in this situation is 4,000 over the new leg, which is more beneficial than the 5,000 required over the second-year leg. IBO LEG REQUIREMENTS Q12 Bonus Q12 Level Full Volume Requirements 1 New Leg Requirements 2 New Legs Requirements 1 Second-year Leg Requirements 2 Second-year Leg Requirements $15,000 Q12 PG/Ruby 7,500 PG/Ruby $20,000 Q12 Platinum Plus (Below EM) $20,000 Q12 Platinum Plus (EM PIN) + 6 Qs** Is averaging allowed? + 6 Qs** 4,000 PG/Ruby * 6,000 PG/Ruby * + 6 Qs** 2,500 PG/Ruby 4,000 PG/Ruby + 6 Qs** 5,000 PG/Ruby 2,500 PG/Ruby + 6 Qs** No Yes No No No + 6 Qs** *Only volume over one new leg can be averaged. **Must grow 6 Q s and exceed Q baseline. 5

6 Q. What volume can be averaged annually? A. These volumes can be averaged annually: 150 Personal. 50 qualified customer. Q12 4,000 over a new leg (PG/Ruby). Q12 6,000 over 1 new leg (Platinum Plus). Expansion Award 300 PG/Ruby Volume Expansion Award 2,500 PG/Ruby Volume. Expansion Award 4,000 PG/Ruby Volume. Expansion Award 7,500 PG/Ruby Volume. These volumes cannot be averaged annually: Q12 qualifications using full volume (7,500 or 10,000 PG/Ruby). Q12 qualifications over 2 new legs (Award and/or PG/Ruby). Q12 qualifications over 1 or 2 second-year legs. Q. Is averaging allowed over a new leg? A. Averaging is allowed when qualifying over 1 new leg only. It does not apply to those months qualifying over 2 new, or 1 or 2 second-year legs. When qualifying with less than 2,500 over 2 new legs, averaging only applies over 1 new leg; therefore, 4,000, 6,000, or over one new leg, is required for averaging to apply. Q. I f an IBO has outside of a 7,500 leg for all 12 months, does that IBO earn the $20,000 Bonus? A. Yes! If they qualified Pin Emerald or above in the past, they will also need to add six new Qs. Otherwise, they will receive $15,000. Q. What is the definition of a Pin Emerald for the Q12 $20,000 Bonus? A. Any IBO whose highest pin is Emerald or above. 6

7 Q12 VOLUME EQUIVALENCY Q. Can an IBO qualify for a Q12 Cash Award using Volume Equivalency? A. Yes. As follows: Q12 PG/Ruby Months PLUS 108,000 PG/Ruby = $15,000 Q12 PG/Ruby Q12 Platinum Plus Months PLUS 144,000 PG/Ruby = $20,000 Q12 Platinum Plus (below Pin Emerald) Q12 Platinum Plus Months PLUS 144,000 PG/Ruby PLUS six new Qs = $20,000 Q12 Platinum Plus (for Pin Emeralds only). $15,000 Q12 PG/Ruby (VE) $20,000 Q12 Platinum Plus (Below EM) (VE) $20,000 Q12 Platinum Plus (EM PIN) Volume 10 or 11 Q12 PG/Ruby Months 10 or 11 Q12 PL Plus Months 10 or 11 Q12 PL Plus Months Equivalency + 108,000 PG/Ruby + 144,000 PG/Ruby + 144,000 PG/Ruby + 6 Qs Q. If a leg qualifies for Q12 through Volume Equivalency, does it also count as a Founders 12-month leg? A. Yes. However, when qualifying for an expansion award, only the actual numbers of Qs will be counted (i.e., 10 or 11.) Q. Do Platinums and above need to report customer volume in order to receive the $20,000 Bonus? A. Yes. Only those customer orders fulfilled through inventory need to be reported. Qualifying customer orders placed directly by registered customers using their customer number are automatically reported. Q. Can I average Q12 months where no new legs qualified? A. No, see June in the chart on page 8 as an example. You may only average Platinum months where a new leg qualifies in that month. Q. Can I use additional volume over 7,500 in a month where no new legs qualified to average up a Q12 month where there is a new leg? A. No, see February in the chart on page 8 as an example. Because no new leg qualified, this volume is not able to be applied to other months, such as July, in order to average. 7

8 Q. If 2 new legs qualify in a month, can I average? A. See July in the chart below as an example. July is not a Q12 month and would have to be averaged up to 4,000 to qualify. When 2 new legs qualify, you can earn a Q12 month via averaging up to 4,000. Any volume over 4,000 in a month where 2 new legs qualify can be applied to average other months up to 4,000. There is no averaging at 2,500. New Leg 1 New Leg 2 PG/Ruby Can Be Averaged (4,000 Average) Sep Q 4,000 Yes Yes Oct 9,000 No Yes Nov 9,000 No Yes Dec Q 4,000 Yes Yes Jan Q Q 3,000 N/A Yes Feb 9,000 No Yes Mar Q 4,500 Yes Yes Apr Q 4,500 Yes Yes May Q 5,000 Yes Yes Jun 7,500 No Yes Q12 Month Jul Q Q 2,300 Yes Potential Aug Q Q 2,500 Yes Yes Note: Additional volume over qualified new leg from March, April, and May was applied to July to make it a Q12 month with a minimum of 4,000 over one new leg. (Averaging not allowed over 2 new legs, but is allowed over one, so a minimum of 4,000 was needed.) 8

9 EMERALD/DIAMOND EXPANSION AWARDS Q. Are new Emeralds and Diamonds eligible to participate in the Emerald and Diamond Expansion Q Leg Rewards? A. Yes! Q. What are Qs? A. A Q is a qualified in-market 25% month in your frontline (1 Q per leg). Expansion Awards and Q12 Platinum Plus for Emerald Pins require Qs for qualification. Q. To earn a Diamond Expansion Bonus of $100,000 requires a minimum of 54 Qs plus 4,000 PG/Ruby side volume. Does it also require an IBO to be an in-market Founders Emerald with at least 3 qualified in-market 12-month legs? A. Yes. Q. Do my international legs count for Emerald/Diamond Expansion Awards? A. No. The GI Program rewards growth in North America, therefore only in-market legs count. Q. How much money can I earn if I average 7,500 PG/Ruby side volume, have 3 in-market 12-month legs, and have 36 Qs? A. You could earn $50,000 from the Emerald Expansion Awards program. Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Q Count PG/Ruby 5,000 7,500 7,500 7,500 8,000 7,500 7,500 7,000 7,500 7,500 7,500 10,000 Leg 1 Q Q Q Q Q Q Q Q Q Q Q Q 12 Leg 2 Q Q Q Q Q Q Q Q Q Q Q Q 12 Leg 3 Q Q Q Q Q Q Q Q Q Q Q Q 12 Q. How much money can I earn if I have 6 in-market legs with at least 3 of them having 12 qualified months, 72 Qs and 7,500 PG/Ruby each month on average? A. You could earn $200,000 or more from the Expansion Awards program. If the 72 Qs include 6 new Qs over last year s Q baseline, you could earn $250,000. Total 36 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Q Count PG/Ruby 6,000 7,000 7,500 7,500 7,500 7,500 7,500 7,500 9,500 7,500 4,000 11,000 Leg 1 Q Q Q Q Q Q Q Q Q Q Q Q 12 Leg 2 Q Q Q Q Q Q Q Q Q Q Q Q 12 Leg 3 Q Q Q Q Q Q Q Q Q Q 10 Leg 4 Q Q Q Q 4 Leg 5 Q Q Q Q Q Q Q Q 8 Leg 6 Q Q Q Q Q Q Q Q Q Q Q Q 12 Leg 7 Q Q Q Q Q Q Q Q 8 Leg 8 Q Q Q Q Q Q 6 Total 72 9

10 Q. If I have a leg qualify with Volume Equivalency, does that count for 10 or 12 Qs for the Expansion Awards? A. While a leg qualifying with VE counts as a 12-month leg toward your Founders qualification, only the actual number of Qs earned will be counted toward your Emerald or Diamond Expansion Awards (maximum of 10 or 11). In this case, you would count the Qs from any additional legs outside of your 3 Founders Emerald legs. VOLUME EQUIVALENCY EMERALD EXPANSION NOT QUALIFIED Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug VE Q Count PG/Ruby 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Leg 1 Q Q Q Q Q Q Q Q Q Q Q Q 12 Leg 2 Q Q Q Q Q Q Q Q Q Q Q Q 12 Leg 3 Q Q Q Q Q Q Q Q Q Q Y 10 Note: This IBO will not qualify for an Emerald Expansion Award. Although he has 3 12-month in-market legs, he does not have 36 in-market Qs. Total 34 VOLUME EQUIVALENCY EMERALD EXPANSION QUALIFIED Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug VE Q Count PG/Ruby 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Leg 1 Q Q Q Q Q Q Q Q Q Q Q Q 12 Leg 2 Q Q Q Q Q Q Q Q Q Q Q Q 12 Leg 3 Q Q Q Q Q Q Q Q Q Q Y 10 Leg 4 Q Q 2 Note: This IBO will qualify for a $50,000 Emerald Expansion Award because he has 3 12-month in-market legs and 36 total in-market Qs with the fourth leg providing the two Qs needed to cover leg 3, which qualified using Volume Equivalency. Total 36 10

11 DIAMOND EXPANSION Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug VE Q Count PG/Ruby 2,500 2,500 4,000 4,000 2,500 7,500 7,500 7,500 2,500 7,500 7,500 4,000 Leg 1 Q Q Q Q Q Q Q Q Q Q Q Q 12 Leg 2 Q Q Q Q Q Q Q Q Q Q Q Q 12 Leg 3 Q Q Q Q Q Q Q Q Q Q Y 10 Leg 4 Q Q Q Q Y 4 Leg 5 Q Q Q Q Q Q Q Q Y 8 Leg 6 Q Q Q Q Q Q Q Q Q Q Q Q Y 12 Leg 7 Q Q Q Q Q Q Q Q Y 8 Leg 8 Q Q Q Q Q Q Y 6 Note: This IBO will qualify for a $150,000 Diamond Expansion Award with 3 12-month in-market legs, 72 in-market Qs, and an average of 2,500 Ruby. If 6 of the 72 Qs are new since last fiscal year, this IBO could earn an additional $25,000 for a total of $175,000. Total 72 Q. If I have the sufficient number of Qs for Emerald or Diamond Expansion Awards, but fall short of the side volume needed one or more months, can I average the side volume needed to qualify? A. Yes. See the chart on page 7 of the GI Brochure for the equivalent annual amounts. Q. Does a 12-month leg have to have a Platinum in depth? A. No. While it s always good for the stability of the leg, it is not required in the GI Program. Q. Is it true that an IBO qualifying for a Diamond Expansion Award requiring a minimum of 72 Qs can qualify with eight North American FAA Points in lieu of the 72 Qs? A. Yes, as long as the baseline and all other Expansion Awards requirements are met. Baseline requirements are: 1) Monthly, attain 150 Personal, 50 of which comes from qualified customer (QC), and 2) Complete six training credits. Note: Both the 150 Personal and the 50 QC can be averaged. Annual amounts required are 1,800 Personal and 600 QC. 11

12 Q. If an IBO ends FY 13 with fewer Qs than their baseline from FY 12, can they still earn a lesser expansion award? A. Yes, as long as they meet the side volume and Q leg requirements for that specific award level. See Expansion Awards chart on page 7 of the GI Brochure. BUSINESS CONFERENCE QUESTIONS Q. Who can qualify to attend the Achievers trip? A. All IBOs who receive a Q12 Cash Award and all qualified Sapphires and above are eligible to receive an Achievers invitation. IBOs who qualify 10 or 11 Q12 months and have a total of 90,000 PG/Ruby can also qualify for Achievers. (Trip only) Q. Will Founders Platinums receive an invitation to the Achievers trip? A. Founders Platinums who receive a Q12 Cash Award are eligible to receive an Achievers invitation. Amway Independent Owners (IBOs) can be recognized and compensated by Amway in a variety of ways. The Amway Independent Business Owner Compensation Plan (Amway Plan) offers monthly and annual bonuses that IBOs can earn in accordance with their contract with Amway. IBOs also may qualify for Amway Business Incentives (ABI) a collection of discrectionary programs separate from the Amway Plan and that can vary from year to year. IBO eligibility for ABI programs is at Amway s discretion and based on conduct that demonstrates high ethical and business standards aligned with the goals and objectives of Amway and its related businesses. These standards require that: an IBO s conduct must not negatively affect the reputation of Amway, its related businesses, or IBOs affiliated with Amway and its related entities; an IBO complies with the letter and spirit of the Rules of Conduct, laws, and regulations in any market the IBO has a presence, and demonstrates cultural sensitivity given market conditions; and an IBO doesn t defend or support the conduct of others who don t comply with this criteria. All rights reserved. Printed in the USA ENC