IBO Best Practices – Seventy Percent Rule – IBOAI

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Backing the 70 Percent Rule

With a tiered compensation plan, a key feature to most MLMs, it’s sometimes tempting to find shortcuts for earning bonuses and awards. For some business opportunities, one way is to buy lots of company products, whether or not you use or sell them to a customer. Many years ago, the IBOAI and Amway Global recognized the problem and developed a rule against it – Rule 4.18 of the Rules of Conduct, sometimes called “The Seventy Percent Rule.”

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The Seventy Percent Rule says that you must sell, or use, at least 70% of the Amway Global products that you purchase each month in order to receive a bonus and recognition on the volume.

The reason for this rule is to prevent IBOs from overstocking inventory and running up debt simply to get volume for qualification. This also separates us from pyramid schemes and helps us become profitable.

No one wants to discourage someone from purchasing products, but you need to be sure that the product is moving or being used. This shouldn’t prevent you from purchasing a reasonable amount of inventory to have on hand to service your customers or for your personal use. However, you should be certain that you are managing your business wisely for maximum profitably. The goal of this business opportunity, after all, is to make money.

See more of the IBOAI’s IBO Best Practices