There are several Rules of Conduct that are a source of ongoing enquiry from IBOs. Questions asked typically relate to the interpretation or the purpose of the Rules. This month we look at a rule that has generated much discussion.

Rule 4.3 relates to promotional activities. Essentially this rule prohibits a number of activities that other, non-Amway, small businesses may indeed utilise to a degree, for example, advertising, letter box drops, telephone canvassing campaigns, mass mailings or similar promotions and selling products out of retail stores. Commonly, IBOs question the rationale for prohibiting such activities. The reasons are essentially fourfold:

Personal Interaction

The Amway business is people based. It depends on and revolves around personal contact and relationships. Impersonal methods of communication and promotion are therefore generally discouraged or, in certain cases, prohibited.

Flooding the Markets

There are thousands of distributors throughout the country. Were all permitted to advertise or to promote the Amway business using letter box drops, mass mailings etc, there would be real danger of flooding the marketplace.

Consumer Protection Laws

There are strict laws in this country which prohibit misleading conduct. Unless IBOs are well versed in these laws, it is possible that statements innocently made, in a pamphlet or newspaper advertisement for example, may in fact be construed as contrary to the law. Advertising and related promotional activities are disallowed to prevent such occurrences. It is important that the consumer is not misled through misrepresentation.

Level Playing Field

Amway stands by the principles of maintaining a level playing field for all distributors, i.e. a system that does not advantage any particular IBO. We believe that Rule 4.3 (4.3.1 and 4.3.2) supports and reinforces this standard.

IBOs often ask whether it is permissible to advertise activities if the Amway name were not to be mentioned. The answer is no, it makes no difference whether or not reference is made to the Amway name, the promotional activities referred to in the rules are prohibited. Indeed, failure to mention the Amway name may, in certain circumstances, be construed to be misrepresentative and a breach of other Rules of Conduct as well as of consumer protection laws.

Amway nevertheless recognises that there is a need to promote the business on a broad scale. From time to time the company engages in advertising and promotional activities that will benefit the whole community of Distributorships.

In your enthusiasm to build your Amway business, you should remember the responsibilities that accompany the benefits of Amway distributorships. These responsibilities are documented in the Amway Rules of Conduct. Reading, familiarising yourself with and complying with these rules and following the advice of the company should ensure that you do not do anything that may contravene consumer protection laws.



This article will provide an increased understanding of the Amway Sales and Marketing Plan as well as dispel elements that are commonly misunderstood. The Amway Sales and Marketing Plan has become the cornerstone of the success and longevity of the Amway business. Having stood the test of time, with almost fifty years of operation, the Amway Sales and Marketing Plan has become respected around the world as one of the most equitable compensation models of generating and sharing income.

Currently, there are twelve streams of income that form the Amway Business Opportunity: Retail Profit, Personal Commission, Differential, Four Percent Leadership, Foster and International Leadership, Ruby, Monthly Depth, Emerald, Diamond, Diamond Plus, Sales Incentive and the Founders Achievement Awards.

A successful Amway IBO is focused on helping others by introducing them to a phenomenal range of products and the benefits of the Amway Sales and Marketing Plan. By assisting others to achieve their goals, so too will a sponsor's business grow. In this article, we will explore a basic building block that assists all Amway IBOs in creating immediate profit through Retailing, the first stream of income mentioned above.

Over the years, Amway has developed exclusive brands of products that are unique in their features and benefits, thereby providing Amway IBOs with a competitive advantage whilst offering these products to retail customers. Having customers whom one can regularly service by demonstrating and marketing products can provide immediate impetus to a business by delivering retail profit. Across the board, the recommended retail profit is between 25% and 30% mark-up on IBO price. We urge IBOs to complete customer receipts in order to track their retail sales.

Some of our most prominent Amway IBOs around the world today were first retail customers and all share a consistent message: They fell in love with the products and then, when they were shown the business plan, it was so much easier for them to embrace the opportunity and run with it. Retailing is a fertile ground for cultivating long-term and committed IBOs. Our brands breed confidence and with the 90 Day Satisfaction Guarantee, you can share the products knowing that a billion dollar corporation is supporting your efforts 100%.

New IBOs who quickly pick up retailing as a building block enjoy the immediate income which provides a two-fold benefit. Firstly, it demonstrates that the business works, without all the trappings of traditional business capital investment, wages etc. and secondly, these additional funds can support their continuing business building efforts.

We encourage all Amway IBOs to order products for their own personal use. This is a valuable process as it allows IBOs to personally experience the products and thereby provide potential customers with endorsement and a personal commendation of the product. Every time IBOs place an order against their identification number, this constitutes Personal Volume, derived from personal activity, which includes retail sales of products to retail customers and samples used in the development and demonstration of their business or personal consumption.

Retailing is an important component in ensuring a profitable business.