The 4% Leadership Commission   The Amway Sales and Marketing Plan has stood the test of time and is respected as one of the most equitable models for generating and sharing income. The 4% Leadership Commission has become a fundamental cornerstone of the success and longevity of the business.   The 4% Leadership Commission A sponsor who works personally with their group to motivate, train and inspire can earn significant rewards. Where both the sponsor and the downline group are at the same 21% maximum performance commission level, the Amway Sales and Marketing Plan provides the 4% Leadership Commission as an incentive for a sponsor to continue to develop highperforming downline IBOs. The Leadership Commission is calculated on the group BV of each 21% IBO and is paid to a qualified sponsor. The Plan provides that each qualified sponsor must generate a minimum Leadership Commission for their upline sponsor, commonly called the 'minimum guarantee'. The minimum guarantee is published in the IBO price schedule and is equal to 4% of the BV required to qualify at the 21% Performance Volume Commission level. Current Minimum Guarantee as at September 2006 10 000 x 12.07 = 120 700 BV 120 700 BV x 4% = R 4 828.00 Rules governing the calculation of the 4% Leadership Commission a) 4% is paid on every Rand of BV each month by Amway. b) 4% Leadership Commission is always calculated beginning with the bottom of leg. c) Once the minimum guarantee is generated, the Leadership Commission must continue to pass up the line of sponsorship. d) Each sponsor of a qualified 21% group will keep: i) ALL of the Leadership Commission generated by their 21% groups if their personal group volume is equal to or exceeds 10 000PV; ii) SOME of the Leadership Commission generated if they personally sponsor one 21% group and if their personal group volume is 4 000 PV or more but less than 10 000 PV or if they personally sponsor two or more x 21% groups if their personal group volume is less than 10 000 PV; iii) NONE of the Leadership Commission generated if they personally sponsor one 21% group and their personal group volume is less than 4 000 PV.     These diagrams show where IBOs can keep all, some or none of the 4% Leadership Commission.     ALL 'A' retains all the 4% Leadership Commission generated by IBO 'B'    i. 10 000 PV 10 000 PV       SOME IBO 'C' retains some the of 4% Leadership Commission from 'D'   IBO 'C' retains some of the 4% Leadership Commission from 'D' and 'E'    ii. 4 000 PV to 9 999 PV 10 000 PV ii. <10 000         10 000 PV 10 000 PV     NONE IBO 'F' retains none of the 4% Leadership Commission    iii. < 4 000 PV 10 000 PV