|
  |
|
|
   |
|
|
|
|
|
|
A healthy and profitable Amway business will have a balance between retailing Amway products and sponsorship of others. Sponsorship enables you to expand your business and maximise income. In previous 'Legal Ease' articles we have discussed the significant responsibility sponsorship brings. As sponsors, you are required to assist throughline IBOs in developing their Amway businesses. You 'set the example'. The success of your own business is strongly correlated with how effectively you fulfil this and other sponsorship obligations. Sections 4 and 5 of the Amway Rules of Conduct sets out various duties required of you as an IBO and as a Sponsor in order to qualify for Performance Commissions on products and services obtained by your personal group. This month we look at the 'Seventy Percent Rule' or Rule 4.18, and the 'Ten Customer Rule' or Rule 5.4. These Rules state: Rule 4.18: "An IBO must sell at retail at least 70% of the total number of products he bought during a given month in order to receive the Performance Commission or recognition due on all the products bought; if he fails to sell at least 70% then he may be paid that percentage of Performance Commission measured by the number of products actually sold, rather than the number of products purchased and recognized accordingly…" Rule 5.4: "In order to obtain the right to earn Performance Commissions on the volume of products sold by his sponsored IBOs during a given month, a sponsoring IBO must make not less than one sale TO EACH OF 10 DIFFERENT RETAIL CUSTOMERS that month and produce proof of such sales to his Sponsor and Platinum…" This means the sponsor must also be actively building their business if they expect to be rewarded for downline efforts. They cannot just sponsor others to do the work. If they do not meet these minimum requirements, they should not receive Performance Commissions based on the products or services obtained by their personal group. Where a sponsor fails to fulfil this requirement, payments may be withheld, redirected or made past the errant IBO. It should be noted that these Rules apply to all IBOs in the case of 4.18 and all Sponsors in the case of Rule 5.4, and should be enforced consistently throughout the group. Amway's foundation is one of reward for effort. A successful Amway business is a 'balanced' business. It is the balance between retailing and sponsoring, combined with your efforts, your compliance with Amway's Rules of Conduct and your commitment to the founding principles that will determine your success as an IBO. For any questions regarding these Rules contact the Amway Business Relations Department. |
   |
Plan
in Action