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Thursday, November 26, 2020

IBO Best Practices

Building a successful business depends on doing a lot of things well – planning, organizing, marketing, and connecting with people – as well as selling products.

Regulators consider selling products to end user (non-IBO) customers one of the critical attributes of a legitimate multilevel marketing system. 

Amway’s Compensation Plan emphasizes selling to customers.  With an Amway™ Independent Business, IBOs only earn bonuses on downline volume when products are sold to non-IBO customers.  It is important to understand how this works.

Rule 4.13 – the Customer Volume Rule (CVR) applies to IBOs who have not yet reached the Platinum level. To earn a bonus on downline volume during a given month, IBOs must:

  • Have at least 50 PV in sales to any number of retail customers

OR

  • Make at least one sale to 10 different retail customers

For customer sales to “count” for CVR, they need to be reported – either when customers purchase directly from Amway through phone or digital orders, or when IBOs use the Create a Receipt tool on the Amway website to report sales to customers out of an IBOs’ inventory.  Reported customer sales are also required for participation in all company incentives and promotions (e.g., Fast Track Incentive Program rewards and the Growth Incentives Program & the upcoming Core Plus). 

We recommend that IBOs encourage all customers to register on amway.com to obtain an Amway ID, so that their sales can automatically be counted as customer volume (auto-capture).

Sales are auto-captured if customers purchase from amway.com or IBOs’ Personal Retail Websites, or if purchased for them by their IBO & drop-shipped to the customer by using their Amway ID.

We also recommend that all customer sales be reported by all IBOs regardless of their pin level, and not just the minimum 50PV.  Auto-capture and Create a Receipt are important tools for keeping track of customer sales.

When IBOs share The Plan with Prospects, they must always discuss the importance of selling product to customers.  It is not acceptable to present The Plan without emphasizing the requirement of selling products to non-IBO customers.

Please feel free to contact us if you have any questions.