In the previous issue we discussed
personal volume and how it was
calculated as part of the Performance
Commission. Today we will explore
the other part of the Performance
Commission, where income is
generated through developing a
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15%
Personal 600PV
Group 4000PV
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12%
Personal 1300PV
Group 2400PV
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6%
Personal 1000PV
Group 1000PV
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3%
Personal 500PV
Group 500PV |
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6%
Personal 600PV
Group 600PV |
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GROUP VOLUME PASS-UP AND DIFFERENTIAL
Group volume is the total of an IBO's personal volume and the personal volume of all non-21% downline PV/BV accumulated through "pass-up". Pass-up rewards IBO's who sponsor, train, and continue to support IBO's within their group. Pass-up creates a dual incentive to personally sell products and encourage and support downline IBO's to do the same. The Performance Commission is paid on both personal and group volume.
If an IBO qualifies for a Performance Commission they will receive income on all of their personal volume, and may also earn "differential". Differential is calculated by an IBO on the volume of frontline IBO that has fallen into a lesser performance commission percentage than the percentage level achieved by the sponsoring IBO. For example, if you achieve 21% during the month and a frontline IBO achieves 15%, the differential you will earn will be 6% of that frontline group BV. By ensuring you are at higher performance commission level than your frontline you will be rewarded with the differential between your performance commission level and your frontline.
The diagram above shows how group volume accumulates through pass-up and how differential can be earned;
A earns from B a 3% differential (15%-12%) 2400PV x 12.55BV x 3% R903.60
A earns from C a 9% differential (15%-6%) 1000PV x 12.55BV x 9% R1129.50
B earns from D a 9% differential (12%-3%) 500PV x 12.55BV x 9% R564.75
B earns from E a 6% differential (12%-6%) 600PV x 12.55BV x 6% R451.80
The AMWAY® Sales and Marketing Plan has gained respect around the world as one of the most equitable models of generating and sharing income. Understanding how you earn income from sponsoring and developing others by supplying, motivating and supporting them will assist your business to grow.
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