The Plan
PV & BV and Personal Volume
The AMWAY Sales & Marketing Plan utilises a combination of numbers to calculate its rewards and commissions. In this article we will define these sets of numbers that are utilised and also discuss the term, “personal volume” and how it contributes to the profitability of the business.
The AMWAY Sales and Marketing plan utilises four sets of numbers – IBO/Member Price – Retail Price – Point Value (PV) - Business Volume (BV). All product and services that are transacted through your business are assigned these four sets of numbers,
• IBO / Member price is the amount IBO’s and Members pay for their Amway product.
• Retail price is the wholesale price plus a retail margin
• Point Value (PV), is a unit amount assigned to each product and is referred to as an effort index. Each month the PV is totalled in order to determine the Performance Commission percentage level
• Business Volume (BV) is a monetary figure assigned to each product. In order to calculate the monthly commission, the percentage level is determined by the total PV, which is applied to the total monthly BV that has been accumulated. (currently the ratio between PV & BV in this market is 1 PV : 12.55 BV)
Your business is based on the monthly accumulation of points - PV & BV. Based on the total of PV accumulated, IBO’s utilise the following Performance Commission schedule to calculate their rewards;
PERFORMANCE COMMISSION SCHEDULE |
IF YOUR TOTAL MONTHLY PV IS; |
YOUR PERFORMANCE COMMISSION
IS CALCULATED AT; |
10 000 |
21% of your BV |
7 000 |
18% of your BV |
4 000 |
15% of your BV |
2 400 |
12% of your BV |
1 200 |
9% of your BV |
600 |
6% of your BV |
200 |
3% of your BV |
Each time an IBO’s places an order for AMWAY product, these four sets of number are ultilised. The PV and BV is recorded in each transaction against an individual IBO number this referred to as “Personal Volume,” which includes retail sales of product to retail customers, samples used in the development and demonstration of their business and product used for personal consumption.
A simple example of this calculation would be if an IBO purchased 200PV of product in a month, then the Performance commission would be calculated in the following way; 200 PV x 12.55 = 2510 BV. At 200 PV this IBO is entitled to a 3% rebate
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